BMW Group, Munich, will freeze its pension plan for its U.S. workforce and shift employees to a defined contribution plan, a company spokeswoman confirmed Wednesday.
The pension plan will be frozen on June 30 and workers will be shifted July 1. Employees hired after March 1, 2012, were given only the defined contribution option, so now "all U.S. employees will now participate in the same retirement plan," BMW said in a statement.
Pension plan participants will keep the benefits they have earned but will not accrue new benefits in the pension plan, while benefits of current retirees will not be affected, BMW said. Spokeswoman Mariella Kapsaskis would not comment on the number of employees affected.
The pension plan had $1 billion in assets, as of Dec. 31, 2017, according to BMW's most recent Form 5500 filing.
"The BMW Group is committed to providing our associates with flexible, competitive and meaningful benefits that add significant value to their compensation package," the company said. "Each year, we review our benefits and compare them to others within the BMW Group global network, the automotive industry and top employers nationwide to ensure we have an attractive overall benefits offering."
The German automaker froze its two U.K. pension plans in 2017.