Macy's Inc., Cincinnati, will freeze its defined benefit pension plan as of Dec. 31, according to a recent SEC filing.
The company also announced it will increase the company contribution to its existing 401(k) plan on Jan. 1, 2014, and on that day will also create a new defined contribution plan, which “will be implemented to provide for income deferral and company matching contribution opportunities with respect to compensation in excess of amounts eligible for such opportunities under the company's 401(k) plan.”
The defined benefit pension plan was closed to new participants on Jan. 1, 2012.
As of Jan. 28, 2012, the defined benefit pension plan had $3.07 billion in assets and $3.46 billion in projected benefit obligations, for a funding ratio of nearly 89%, according to the company's most recent annual report.
As of Dec. 31, 2011, the Macy's 401(k) Retirement Investment Plan had $2.8 billion in assets, according to the company's most recent 11-K filing.
Further information regarding the increased company match and the new defined contribution plan was not available by press time.
A phone call to Dennis J. Broderick, executive vice president, general counsel and secretary, was referred to spokeswoman Holly Thomas, who did not respond to inquiries by press time.