Star Tribune Tue, 01 Apr 2008 02:05:48 GMT
3M to limit its pension benefits for new hires
Many other corporations have made a similar change to reduce distant pension costs; 3M also changed retiree health benefits. 3M Co. said Monday that it is altering retiree medical plans and eliminating a defined-benefit pension plan for new hires, a benefit once regarded as one of the most generous in the nation. In lieu of 3M's traditional pension plan, new hires will receive a new 401(k) savings plan, to which 3M will contribute 3 percent of pay to retirement accounts and a dollar-for-dollar match on employee contributions, up to 6 percent of pay. The changes, which are similar to those taken by scores of other corporations looking to reduce distant pension costs, will generally go into effect next year. Spokeswoman Jackie Berry said the new pension plan is designed to be portable, a characteristic that is highly desired by workers.
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