DuPont to end pension contribution for active employees
DuPont will no longer contribute to active employees' pension plans, a move that will impact the retirement of 13,000 workers, including 2,800 in Delaware.
The Wilmington-area company announced Thursday that workers will stop accruing benefits sometime in November 2018 or the creation date of the first independent company spawned through the proposed $130 billion merger with Dow. Only employees in the United States and Puerto Rico will be affected by this move.
The company also eliminated retirement health benefits, including dental and life insurance for all employees under the age of 50 when the pension contribution ends in about two years.
DuPont estimates the changes will reduce its long-term employee benefits obligation by about $550 million, creating a fourth-quarter pre-tax gain of $380 million. Once DuPont stops adding to active employees' pensions, it will eliminate the $50 million it pays annually to maintain the plan.
Read more: http://www.delawareonline.com/story/news/2016/11/17/dupont-end-pension-contribution-active-employees/94013408/
Cross-posted in Omaha Steve's Labor Group.
