DuPont to end pension contribution for active employees

[TexasTowelie]

DuPont will no longer contribute to active employees' pension plans, a move that will impact the retirement of 13,000 workers, including 2,800 in Delaware.

The Wilmington-area company announced Thursday that workers will stop accruing benefits sometime in November 2018 or the creation date of the first independent company spawned through the proposed $130 billion merger with Dow. Only employees in the United States and Puerto Rico will be affected by this move.

The company also eliminated retirement health benefits, including dental and life insurance for all employees under the age of 50 when the pension contribution ends in about two years.

DuPont estimates the changes will reduce its long-term employee benefits obligation by about $550 million, creating a fourth-quarter pre-tax gain of $380 million. Once DuPont stops adding to active employees' pensions, it will eliminate the $50 million it pays annually to maintain the plan.

Read more: http://www.delawareonline.com/story/news/2016/11/17/dupont-end-pension-contribution-active-employees/94013408/

Cross-posted in the Delaware Group.

[INdemo]

1. mmm? There is a pension guarantee

law funded by the Federal Government..but since we now have all branches of government with a Fascist majority that doesn't mean shit.
I imagine all labor laws that protect workers is probably finished as well as other pension plans..

This is quite ironic because actions against labor, pensions and unions was the first act taken by Adolf Hitler

Understanding off course this was done by a corporation but do you suppose they would have pulled this shit if we would have a
Democrat as President elect?

[TexasTowelie]

2. The Pension Benefit Guarantee Trust is near bankruptcy from what I understand.

I suspect that the plan that DuPont uses is a defined contribution plan rather than a defined benefit plan so they probably won't run afoul of any laws. What it means is that the company will no longer contribute to employee 401k programs. Of course there is the other issue where employers say that they are offering a match to the employee contributions, but in reality they are not doing so and the employees don't find out until it is too late--that is why it is important to check the statements annually, not rely on any documents produced solely by the employer, and also check on the financial condition of the company investing the funds since they could also be crooks.

Barring unknown tax issues, if a company decides to no longer make any matches to the pension fund like DuPont has chosen, then I would be reluctant to lock away any money into a 401k program and invest directly into the market. I'd rather have the liquidity and not have the fees associated with maintaining the account with the investment company. Considering that the trend is to layoff older workers I wouldn't want to have that money tied up in a 401k and possibly have to wait years to tap those funds.

[exboyfil]

5. In all cases you should only go up to the match

for the 401(k). The remaining funds can go into an IRA instead (or any other type of account). An IRA offers you considerably more flexibility than a 401(k). Never roll a prior employer's 401(k) into your new employer. Roll it into an IRA instead.

Anybody notice how the three legged stool is quickly becoming a pogo stick (no Social Security if the Republicans have their way and no Defined Benefit pension from your employer).

[guillaumeb]

3. Another long lasting "gift" from the Reagan Presidency.

But not to worry because Trump will make America great again. I wonder if there are any GOP voters among the active and retired employees who will be affected.

[Yo_Mama_Been_Loggin]

4. Sad to say that is a trend these days

[Omaha Steve]

6. We can afford to bail out Wall St

Left nothing for Main St.