Boeing to Freeze Pensions of Non-Union Employees by 2016 - East Idaho News
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Boeing to Freeze Pensions of Non-Union Employees by 2016

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Getty 030914 Boeing%20Logo?  SQUARESPACE CACHEVERSION=1394396565263Photo by Tim Matsui/Newsmakers(NEW YORK) — Boeing Co., the world’s largest planemaker, will instate a pension freeze for 68,000 non-union employees and executives by 2016, in a plan that aims to cut company costs.

According to Bloomberg News, the planemaker will shift benefit payments to a 401(k)-style plan effective Jan. 1, 2016. Employees will be able to keep accruals already made to their pensions. Employees hired since 2009 — and members of 28 unions — are already on the new 401(k)-style plan.

Boeing’s expenses in the last year reportedly came in at $3.45 billion, the third most among U.S. corporations, Bloomberg News says.

In a statement, Tony Parasida, senior vice president of Human Resources and Administration for Boeing, said that the goal is to contribute to retirement funds for their employees, “while also assuring our competitiveness by curbing the unsustainable growth of our long-term pension liability.”

As part of a transition to the new retirement plans, Boeing will contribute amounts equal to nine percent of employees’ eligible income in 2016, eight percent in 2017 and seven percent in 2018. After 2018, the company will contribute three to five percent of employees’ eligible income annually depending on age.

Employees will also receive free, personal retirement counseling for two years and access to seminars and online retirement planning tools.

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