Corteva Agriscience, the agricultural division of DowDuPont Inc., Midland, Mich., will maintain the $23.4 billion DuPont U.S. Pension and Retirement Plan.
In a letter DowDuPont CEO Ed Breen posted online for plan participants on Nov. 1, Mr. Breen wrote, "following the intended separation of the specialty products and agriculture divisions of DowDuPont on June 1, 2019, the heritage U.S. DuPont pension and retiree benefit obligations … will be assumed fully by Corteva Agriscience."
Mr. Breen added that a new Dow company, which will be formed when the materials science division of DowDuPont separates on April 1, 2019, will assume responsibility for all heritage Dow Chemical U.S. pension and retiree benefit obligations.
"None of these Dow (Chemical) U.S. obligations will be assumed by either Corteva Agriscience or the new DuPont," Mr. Breen wrote.
The decision to transfer the management of the plan to Corteva Agriscience was done to "minimize the level of change and confusion for plan participants," according to a list of answers to frequently asked questions posted on the firm's website.
"From a company perspective, we believe that keeping the record-keeping systems and processes that support this plan in one place will require fewer resources, allowing for more efficient and cost-effective administration," the FAQ page added.
DowDuPont made a discretionary contribution of about $1.1 billion to the plan in September, bringing its total contributions to the plan to nearly $4 billion over the past two years.
"We will continue to fund the plan in accordance with all legal requirements," Mr. Breen wrote in the letter.
