Sysco Corp., Houston, will freeze its non-union defined benefit plan, effective Dec. 31, according to transcripts from the company's second-quarter earnings call.
Sysco also will “significantly enhance our 401(k) plan,” William DeLaney, president and CEO, said in the Monday earnings call. Specific enhancements to the 401(k) plan were not addressed in the call.
The change will result in about $25 million in additional retirement expenses in fiscal year 2013, compared with more than $100 million without freezing the pension plan, Robert Kreidler, CFO and executive vice president, said in the earnings call.
Sysco's DB plan had $2.1 billion in assets and $2.52 billion in liabilities as of July 2, 2011, according to the company's most recent 10-K filing.
Charley Wilson, Sysco spokesman, did not return a telephone call by press time with additional information.
