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Boeing has joined the many private companies who are moving away from traditional pension plans in favor of plans similar to a 401(k). In a June 24, 2008, press release,
Boeing announced that non-union employees hired or rehired on or after January 1, 2009, will have a defined contribution savings plan. The plan includes an automatic
company contribution and a company match for funds put in by employees, both of which will be fully vested immediately.
This change will not affect Boeing’s more than 525,000 current employees, former employees or retirees who participate in the company’s existing savings and pension plans. Over the long-term, the new plan is expected to ease an estimated pension liability of $46 billion.
Boeing aims to put newly hired union machinists in the 401(k)-style plan as well. The International Association of Machinists and Aerospace workers, representing 26,000
Boeing workers, is against the idea because it doesn’t want different benefits for different groups of employees.
You may click on the PDF below to view the Boeing Press Release and June 25, 2008, article from the Seattle Post-Intelligencer.
Boeing Articles
[29kb]
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