Hospira Inc., Lake Forest, Ill., will freeze its defined benefit plan at the end of the year and offer additional employer contributions and immediate vesting for its 401(k) plan, said Stacey Eisen, vice president, public affairs. All employees can participate in the 401(k). She said the company, which was spun off earlier this year from Abbott Laboratories, Abbott Park, Ill., is changing its retirement programs to help establish "a financially responsible, yet competitive and well-rounded benefits profile."
Hospira has $260 million in defined benefit pension assets. Its 401(k) plan was established after the spinoff, and the asset size was not available. Ms. Eisen said the Hospira 401(k) plan offers "more than a dozen" investment options.
