The Hershey Co., Hershey, Pa., will close its defined benefit plan to new non-union employees hired after Jan. 1, 2007, and will change the plan for current non-union employees to a "modified" defined benefit plan that "recognizes both age and service, provides future benefits at a reduced rate," according to an SEC filing today.
The company also will increase its company match for its $600 million 401(k) plan, to 75% of the first 6% of an employee's pay. Hershey also will make a contribution of 3% of salary regardless of the employee contribution, according to the filing.
Currently, the company matches up to 75% on the first 2% of pay or 60% on the first 3%, said spokesman Kirk Saville.
Also, Hershey will also redesign its current supplemental executive retirement plan as a new defined contribution plan for future participants, according to the filing.
Hershey has roughly $680 million in defined benefit assets, according to Nelson's Marketplace.
