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Kimberly-Clark to Freeze Pension Plan, Start New 401(k)

April 23, 2009
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Kimberly-Clark Corp. will close its nonunion defined-benefit plan to employees hired after January 1, 2010, and freeze the plan, according to spokesman Dave Dickson.

The Dallas-based company also is replacing its defined-contribution plan for all nonunion employees and replacing it with a new 401(k) plan, also effective January 1, Dickson said. The old DC plan will be rolled into the new plan, Dickson said.

The company will provide a 100 percent match, to a maximum of 4 percent of eligible compensation, under the new 401(k) plan and a discretionary profit-sharing contribution up to 6 percent per year of eligible compensation, which would be based on the company’s profit performance, according to a company SEC filing.

Kimberly-Clark had total DB assets of $2.4 billion as of September 30, while its existing defined-contribution plan had $2.3 billion, according to Pensions & Investments data.

The company is expected to make cash contributions totaling $530 million to its defined-benefit plans in 2009, according to an SEC filing.


Filed by Timothy Inklebarger of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

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