WILMINGTON, Del., Nov. 18 (UPI) — The DuPont Company said it will eliminate its pension contribution for active employees.
The announcement by the chemical company, explained Thursday in a required 8-K filing to the Securities and Exchange Commission, said active employees will no longer accrue additional benefits, and employees under age 50 also will no longer receive dental, medical and life insurance benefits in retirement.
The changes will affect the retirements of at least 13,000 employees, and take effect either Nov. 30, 2018, or on the creation date of an independent company formed by DuPont’s $130 billion proposed merger with Dow Chemical Co. In September, Dow CEO Ed Breen said the merger is expected to close in the first quarter of 2017. Only DuPont employees and retirees in the United States, including Puerto Rico, are affected. Employees’ 401(k) plans and health savings accounts are not affected by the decision.
DuPont has stressed that the changes have less to do with the Dow merger than with an attempt to align with industry practices. Since 1998, nearly one-quarter of all Fortune 500 companies have stopped contributing to employees’ primary pension plans, and 40 percent offer only a 401(k).
