Ferro Corp.
Pension Freeze Fact Sheet
Center for Retirement Research paper:
Click here to read "Why Are Healthy Employers Freezing Their Pensions?"
Ferro Corp.
U.S. EMPLOYEES: 2,500
TYPE OF PLAN: Traditional Defined Benefit — in excess of 1,000 participants affected
DATE ANNOUNCED: Feb. 15, 2006
DATE EFFECTIVE: April 1, 2006
DESCRIPTION OF FREEZE: Total Freeze. All salaried and certain hourly employees who participated in the company's (U.S.) defined benefit plan stopped accruing benefits on April 1.
PLAN SOLVENCY: At year-end 2003, defined benefit pension plan obligations were $430.7 million and plan assets were $289.6 million.
REPORTED FINANCIAL IMPLICATION: As a result of the freeze, Ferro expects savings of $30 million to $40 million between 2006 and 2011.
NEW ARRANGEMENTS FOR EMPLOYEES: Starting on April 1, regardless of whether the employee contributes to his 401(k), Ferro will make annual contributions to employees' 401(k) accounts, varying from 2% to 8%, dependent upon the employee's salary and years of service. Also, Ferro will match employee contributions up to 5% of salary. This company-sponsored plan was established for new employees hired after July 1, 2003.
BACKGROUND: Ferro is a major international producer of performance materials for industry, including coatings and performance chemicals. The company has operations in 20 countries.
Center for Retirement Research paper:
Click here to read "Why Are Healthy Employers Freezing Their Pensions?"
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.
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