Tenneco Inc., Lake Forest, Ill., is freezing four defined benefit plans and increasing 401(k) contributions for most of its U.S.-based salaried and non-union hourly employees effective Jan. 1, according to a news release. Spokeswoman Jane Ostrander said the new contributions will be based on the age of the employee, but she could not provide further information. The automotive company currently offers a match of 50 cents on the dollar up to 8% of employee salary. Ms. Ostrander could not provide current asset figures. The company's pension plans had a total of $326 million in assets as of September 2004, and its defined contribution assets totaled $304 million as of December 2004, according to the Money Market Directory.
Tenneco estimates that the changes will save roughly $6 million in pre-tax expenses in the fourth quarter and about $11 million annually.
