DuPont to adjust US pension & savings plans in 2008
29 Aug '06
3 min read
DuPont announced that it will change its primary U.S. defined benefit pension plan and enhance its savings plan, effective January 2008.
“These steps are consistent with market trends in employee benefits and will enhance the company's business competitiveness,” said James C. Borel, Senior Vice President, DuPont Human Resources.
“The planned changes reinforce our commitment to help employees provide for a secure retirement. They also modernize the design of our savings and retirement plans for a new generation of employees, many of whom want more direct control and portability in their benefits.”
The changes reflect DuPont's strategy of shifting retirement benefits toward the defined contribution and savings plans and away from the defined benefit pension plan. Key elements follow:
The defined benefit pension program for current employees will continue, with future accruals at a reduced level. For service accrued through 2007, the pension calculation will not change.
For service accrued after 2007, the pension calculation will be reduced to one-third of its current level. Both segments of the benefit will continue to grow with pay until retirement.
Beginning January 2008, a significantly enhanced savings and investment plan will include 100 percent employee participation in the plan via a company contribution of 3 percent of each employee's pay into his/her account.
Employees who contribute to the savings plan also will receive a 100 percent company match on the first 6 percent of their savings. This doubles the current company match, which is 50 percent up to 6 percent and enhances the company's ability to compete for talent.
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