Swiss Air Transport Ltd., Melville, N.Y., is enhancing its 401(k) plan following the termination of its defined benefit plan, said Jean-Michel Groux, finance manager. Mr. Groux said the company will increase its match to 4% from 1% of employee contributions.
Employees have until February to move their defined benefit assets into the 401(k) plan if they choose. Mr. Groux, who could not provide a current asset total, estimated the 401(k) plan will have $40 million after the transition. The plan is managed by a joint venture between J.P. Morgan and American Century. The defined benefit plan, which was terminated Oct. 1, had $97 million in assets and $72 million in liabilities, according to the PBGC. It wasnt clear how much of the $25 million in surplus assets would revert to the company after any taxes or any possible distributions of the surplus to participants. The PBGC didnt know and Mr. Groux declined to comment. He also declined to say why the company terminated the plan.