09Jan

3M to freeze U.S. pension plans

News , ,

3M Co., St. Paul, Minn., will freeze its U.S. pension plans for nonunion employees at the end of 2028.

The company said pension-eligible nonunion employees will accrue benefits until Dec. 31, 2028, according to a Jan. 8 news release.

3M had closed its primary U.S. pension plan to new hires effective Jan. 1, 2009. The change will affect employees at both 3M and Solventum, the healthcare company that is expected to spin off from 3M in the first half of 2024.

“This is an important decision for 3M as it helps to set up both companies for future success. This was also a difficult decision because it impacts employees across the United States,” said Mike Roman, chairman and CEO, in the news release. “To help those impacted, we are providing five years of advance notice to ensure our employees can plan alternative strategies to meet their post-retirement income needs.”

As of Dec. 31, 2022, 3M’s U.S. pension plan assets totaled $12.648 billion, while projected benefit obligations totaled $13.505 billion, for a funding ratio of 93.7%, according to its most recent 10-K filing.

 

 

Read more @pionline

Related Posts

21Jul

Taiwan Pension Funds Award $3B Climate Mandate

Taiwan’s Bureau of Labor Funds has selected five global asset managers for a $3 billion climate transition infrastructure mandate,... read more

21Jul

UK. SPP: Managing pension scheme risk in an increasingly uncertain world

There is currently heightened uncertainty, both geopolitically and closer to home, for UK defined benefit (DB) pension schemes. The situation... read more

21Jul

Nigeria. Social protection, structural reforms must go hand in hand for lasting impact – CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has urged the federal government to complement its expanding social... read more

21Jul

The Retirement Planning Mistake That Makes Inflation Much More Expensive

Inflation, sequence of returns, unexpected early retirement, and long-term care costs pose serious risks to today’s retirees. At the... read more

20Jul

Pension Funds Try to Come to Grips With the Scariest Global Warming Scenario

Institutional investors are trying to figure out what it would mean for their portfolios if continually rising temperatures trigger... read more

20Jul

UK. Pension ‘lifestyling’ under scrutiny as returns vary widely

Returns gap exposed: Analysis finds five-year pre-retirement returns vary from 17.9% to 31.1% among major default lifestyle funds. Strategy under question: Critics... read more

20Jul

US is embarking on a risky experiment with GLP-1s and aging

Are GLP-1s for life? What we know about getting older on weight-loss drugs More than one in 10 Americans takes... read more

20Jul

Vietnam. Ministry of Finance points out inadequacies in regulations on supplementary pension insurance

In the report and comments on the amended Law on Social Insurance, the Ministry of Finance said that the... read more

17Jul

South Korea Unveils Sweeping Pension Reform Plan

The reform aims to increase pension payments for the lowest-income seniors, maintain or freeze payments for higher earners, and... read more

17Jul

UK. Aviva and Age UK launch mid-retirement support pilot

Aviva and Age UK are launching a pilot program to help retirees manage their finances and make their pension... read more