Delphi Corp., Troy, Mich., will freeze its defined benefit plans for both its hourly and salaried employees in the United States and replace them with defined contribution plans, according to a news release issued today. The hourly plan will be frozen on Oct. 1, and the salaried pension plan will be frozen on Jan. 1, 2007.
Claudia Piccinin, spokeswoman for Delphi, said further details were not available on the new defined contribution plans.
Delphi officials made the changes, as part of the company's "transformation plan" to emerge from Chapter 11 bankruptcy protection and avoid terminating the defined benefit plans, according to the release. That plan includes throwing out Delphi's union contracts and shedding more than 28,000 jobs.
Delphi had about $8.7 billion in U.S. defined benefit assets and $4 billion in defined contribution assets as of Sept. 30, according to an estimate from Pensions & Investments.