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

27Oct

OECD to present Pensions Outlook 2026 on Wednesday 4 November

The OECD Pensions Outlook 2026: Are We Saving Enough for Retirement? will be launched on Wednesday 4 November from... read more

27Oct

Microsoft offers voluntary buyouts to 60,000 employees as AI leads to efficiency push

Microsoft said Monday that it’s offering buyouts to a wide swath of employees as it strives to balance a... read more

27Oct

China. Harnessing potential of the silver economy

An aging population is often portrayed as a looming crisis: fewer workers, more pensioners, rising healthcare costs and increased... read more

27Oct

The use of biological age and artificial intelligence in health care

This commentary highlights the age illusion and advocates integrating biological age and artificial intelligence (AI) to enhance clinical precision... read more

26Oct

Spain. 25,000 rally in Madrid demanding state pension guarantees

Authorities said 25,000 people marched through central Madrid on Saturday, October 24, demanding protection for the Spanish state pension... read more

26Oct

US. Retirees are going back to work: ‘Sharp decline in retirement confidence’

People across the United States are pushing back major life milestones due to the current cost-of-living. Retirement appears to be... read more

26Oct

The Poverty Trap: Why Nigeria’s Informal Workers Are At Risk

Millions of Nigerians who spend their working lives running businesses, providing essential services and supporting the economy could face... read more

26Oct

‘Ticking time bomb’: The world’s pension funds face an ageing crisis

The world’s pension systems are confronting a demographic crisis as longer lifespans and dwindling birth rates threaten to stretch... read more

26Oct

Warren Buffett’s 6 golden rules for investors after retirement

Moving away from a consistent salary often proves difficult for people after retirement, as it can be a challenging... read more

23Oct

UK regulator urges pension trustees to stress-test over AI concentration risk

British pension funds could have greater exposure to AI-related risks than trustees realise, Britain's pensions ​regulator said on Thursday,... read more