Boeing Co. will freeze a pension fund for 68,000 non-union employees and executives, shifting contributions to a defined contribution plan as it works to cut costs.
The change will take effect Jan. 1, 2016, the Chicago-based company said Thursday in a statement. Employees will be able to keep accruals from the company's defined benefit plan as the company shifts contributions to a DC plan. Employees hired since 2009 and new members of 28 unions are already in the DC plan.
Boeing is curbing pension expenses that, at $3.45 billion over the last 12 months, are the third-highest among large U.S. corporations, according to data compiled by Bloomberg. General Electric Co.'s $5.05 billion expense was the largest, followed by Exxon Mobil Corp.'s $3.73 billion.
Boeing will end pension accruals in 2016 for its Seattle-area machinists under an eight-year contract extension that workers narrowly approved in January in exchange for a company promise to manufacture the 777X jetliner and its composite wing in Washington state. A St. Louis-area union also voted Feb. 23 to end pension benefit accruals.