Talbots Inc., Hingham, Mass., will freeze its two defined benefit pension plans indefinitely as of May 1 in an effort to boost company cash flow, according to an SEC filing.
Participants will receive no further accruals under the defined benefit pension plan or supplemental pension plan, which should yield cash savings of roughly $6 million for the current fiscal year, according to a news release.
On Feb. 5, Talbots announced it was suspending matching contributions to the companys 401(k) plan while increasing health-care contributions by employees. The company expects those two steps to result in roughly $7 million in savings during the current fiscal year, spokeswoman Julie Lorigan said.
Talbots defined benefit pension plan had $110 million in assets as of Feb. 2, 2008, according to its most recent annual report. Talbots had $159 million in its 401(k) plan as of December 2006, according to the 2009 Money Market Directory.