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.

 

 

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