Boeing freezing nonunion workers' pensions in 2016

The Associated Press

SEATTLE (AP) -- Boeing Co. said Thursday it is freezing the traditional defined-benefit pensions for 68,000 nonunion employees - including managers and executives - starting in 2016.

The Chicago-based aerospace company said in a statement that the employees will transition to a company-funded defined contribution retirement plan, effective Jan. 1, 2016. They will have a 401(k)-style retirement plan similar to what union machinists approved in a contentious contract-extension vote earlier this year.

Nonunion Boeing employees hired since 2009 have not had a traditional defined pension plan. Thursday's announcement applies to those who started working for the company earlier, KING reported (http://tinyurl.com/nrxxahf ).

In its statement, Boeing said it would make contributions each pay period to nonunion employees' retirement savings through the 401(k) plan. All benefits earned in the traditional pension plan will be paid to current and already-retired employees, and the company said it would also continue to match employee savings in an existing 401(k) plan.

Tony Parasida, Boeing's senior vice president of human resources and administration, said making the switch would help address the ''unsustainable growth'' of the company's long-term pension liability.

On Jan. 3, Boeing machinists in the Seattle area narrowly approved a contract in which they conceded some benefits in order to secure assembly of the new 777X jet in Washington state.

Machinists approved an eight-year contract extension with a slim 51 percent vote in favor. Opponents of the contract opposed the idea of freezing the pension and moving workers to a defined-contribution savings plan. They also criticized increased health care expenses and slower wage growth.

Local union officials had urged their 30,000 members to oppose the deal, arguing that the proposal surrendered too much at a time of company profitability.

Sign up for Yahoo Fantasy Hockey
Sorry you didn't like this comment. Please provide a reason below.

Are you sure?
Rating failed. Try again.
Request failed. Try again.
We will promote constructive and witty comments to the top, so everyone sees them!
Sorry, we can’t load comments right now. Try again.
    • Frequent Iniesta injuries a problem for Barca coach Luis Enrique

      Frequent Iniesta injuries a problem for Barca coach Luis Enrique

      By Richard Martin BARCELONA (Reuters) - Barcelona coach Luis Enrique said on Saturday that his team are never quite the same without midfield maestro Andres Iniesta who will again be missing when they visit Eibar on Sunday, needing a win to keep up … More »

      Reuters - 7 minutes ago
    • Refreshed Johnson shoots 64, in contention in Abu Dhabi

      Refreshed Johnson shoots 64, in contention in Abu Dhabi

      Over his jet lag and familiar with the golf course, Dustin Johnson is finally a real factor at the Abu Dhabi HSBC Championship. ''I'm a little bit surprised where I am,'' said the 23rd-ranked Hatton, who said he spent most of his offseason on his … More »

      AP - Sports - 13 minutes ago
    • 'Blood, sweat and tears': Vonn back on top with downhill win

      'Blood, sweat and tears': Vonn back on top with downhill win

      Lindsey Vonn is back on top in just the second race of her comeback from a knee injury and a broken arm. The American edged defending overall World Cup champion Lara Gut to win a downhill event in Garmisch-Partenkirchen, Germany, on Saturday and … More »

      AP - Sports - 14 minutes ago
    • Is racism legal in France? - asks Balotelli

      Is racism legal in France? - asks Balotelli

      A furious Mario Balotelli asked fans if racism was "legal in France" after the Nice striker accused Bastia supporters of abusing him during his team's 1-1 Ligue 1 draw on Friday, prompting a French League investigation. "Yesterday the result … More »

      Reuters - 19 minutes ago
    • Frequent Iniesta injuries a problem for Barca coach Luis Enrique

      Frequent Iniesta injuries a problem for Barca coach Luis Enrique

      By Richard Martin BARCELONA (Reuters) - Barcelona coach Luis Enrique said on Saturday that his team are never quite the same without midfield maestro Andres Iniesta who will again be missing when they visit Eibar on Sunday, needing a win to keep up … More »

      Reuters - 20 minutes ago