Motorola Inc., Schaumburg, Ill., closed its roughly $3.5 billion primary U.S. pension plan to new employees Jan. 1, according to the company's annual report filed with the SEC. Newly hired employees will participate in a 401(k) plan, which had $5.8 billion in assets as of June 30, according to Money Market Directory. The company will match 4% of the first 6% of employee contributions for the new hires, as opposed to a 3% match for employees hired before Jan. 1.
Company officials decided to close the pension plan to new hires as "part of overall cost savings," said Jennifer Weyrauch, Motorola spokeswoman.
Motorola officials expect the company will contribute $150 million in cash to the primary U.S. pension plan during 2005 and $45 million to its non-U.S. pension plans, which have $772 million in combined assets, according to the annual report.