DESCRIPTION OF FREEZE: Freeze for New Employees. Employees hired after Jan. 1 are not eligible to participate in Nissan North America's defined benefit pension plan.
PLAN SOLVENCY: At year-end 2003, defined benefit pension assets were $575 million and obligations were $675 million.
REPORTED FINANCIAL IMPLICATION: Nissan North America's global pension committee is to hold a meeting that will determine the financial impact.
NEW ARRANGEMENTS FOR EMPLOYEES: It has not been decided whether new employees will be offered entry into a new defined contribution plan or the company's existing $1.1 billion 401(k) plan. Nissan currently matches employee contributions up to 5% of salary. The global pension committee will decide on the details at its meeting.
BACKGROUND: Nissan opened its first U.S. assembly plant in 1983 and has about 500 retirees from its manufacturing division. But the automaker has expanded rapidly and now has 12,200 manufacturing employees in the U.S., plus 3,000 in sales, engineering, administration and design. Nissan expects its U.S. retiree population to top 4,000 in the next decade. After near bankruptcy in 1999, Nissan recovered and today stands as one of the most profitable automakers, with more than 6% of the U.S. auto market.
All "Pension Freeze Fact Sheets" posted were created by the Center for Retirement Research at Boston College, which is solely responsible for the research, findings and all materials contained therein. Pensions & Investments has not verified or edited the materials (other than for length and style) and does not necessarily agree or disagree with the analysis and positions expressed by the authors. Reference to any company, product or service does not imply recommendation or sponsorship by Pensions & Investments.