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

09Jan

US. Time to act: The role of pension trustees in reaching net zero

Asset owners, business leaders and pensions funds collectively hold the power to put the global economy on a sustainable... read more

09Jan

Why millions of young Chinese are refusing to make pension payments

China’s pension system is in danger of running out of cash within a decade due to severe underfunding. Now... read more

09Jan

Benefits of paying pensions and benefits without using cash

Thuan Duc Commune (Dong Hoi City, Quang Binh) became the first locality in Dong Hoi City to achieve 100%... read more

09Jan

US. Pensions Got a Boost From Strong Markets in 2024, But They’re Still In Trouble

A solid year for the U.S. stock markets resulted in better-than-expected returns for state and local pensions last year.... read more

08Jan

Finally, U.S. pension plans reach fully funded status

For the first time in 17 years, at the close of 2024 pension plans sponsored by large U.S. companies... read more

08Jan

UK politics needs to take a long-term view on social care

Past attempts to reform social care by both Labour and the Conservatives have failed.  The recent commission of an... read more

08Jan

Japan’s GPIF-commissioned report finds gaps in infrastructure assets data

Fund managers’ current data reporting practices for infrastructure assets do not provide Japan’s Government Pension Investment Fund and other... read more

08Jan

Kenya. Govt Introduces New Tax Laws on Pensions & Retirement Benefits

The Retirement Benefits Authority (RBA) has announced new tax reforms on pensions and retirement benefits. In a notice, the authority... read more

07Jan

Sustainable finance is braced for its toughest year yet

Before most investors had even returned to the office after the Christmas break last week, it became clear that... read more

07Jan

Pension Income Contributed $1.5T to US Economic Output in 2022

More than $680 billion in pension benefits were paid to 26.3 million beneficiaries in 2022, according to new research from the... read more