Motorola plans to convert its traditional pension plan to a hybrid...

Motorola plans to convert its traditional pension plan to a hybrid "portable’’ cash balance plan in July 2000, as part of a major restructuring of its pension and retirement programs, according to a June 24 memo sent to employees by Bob Growney, president and COO. Employees will be able to choose next April if they want to stay in the existing plan. The company is adding five new investment funds to the four offered through its profit-sharing and investment plan. It also will allow employees to contribute up to 20% of pay, up to the maximum $10,000 permitted under law; eliminate the 1% mandatory contribution to the retirement plan; and offer financial planning programs. As of Sept. 30 the company reported $3 billion in defined benefit assets and $5.4 billion in defined contribution assets.