Harry & David Operations Corp., Medford, Ore., will freeze its defined benefit plan in June 2007 and move current and future employees into its existing 401(k) plan, according to an 8-K filing last week. The company's pension plan, which has 3,700 participants, had $34.6 million in assets as of June 25, 2005, and the company's pension liabilities totaled $29.4 million, according to financial statements.
"These changes will give employees continued flexibility in managing their retirement assets and will provide the company with more predictable and manageable retirement costs while preserving participating employees' retirement benefits earned through June 30, 2007," said Rudd Johnson, executive vice president of human resources, in a statement.
The company matches every dollar contributed to the 401(k) plan up to 3% of pay and half of the next 2% that an employee contributes. The 401(k) plan had $64.9 million in assets as of June 2004, according to the 2006 Money Market Directory.