Digital Equipment Corp., Maynard, Mass., converted its $1.8 billion defined benefit plan to a cash balance plan. Hewitt Associates will handle administration, including record keeping and quarterly account statements to employees; the firm already is record keeper for Digital's $1 billion 401(k) plan. No investment management changes are expected because of the conversion, said A. Raymond Schmalz, director, benefits finance and investments.
Under the new Cash Account Pension Plan, Digital will make a quarterly contribution of 4% of total compensation (including overtime, bonuses and shift differentials, as well as base pay) to each eligible employee's account.
