Philips Electronics U.K. will adopt a defined contribution plan for...

Philips Electronics U.K. will adopt a defined contribution plan for new employees in April 1997, one of the few British companies to make the leap to money purchase schemes. The switch will have dramatic implications for investment management arrangements of Croydon, England-based Philips, including possibly moving to outside managers for the 1.5 billion ($2.3 billion) defined benefit plan. That plan probably also will boost its bond holdings.