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Goodyear Announces Closure of Its Defined-Benefit Plan

September 30, 2009
Related Topics: Corporate Culture, Benefit Design and Communication, Latest News
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Goodyear Tire & Rubber Co. in Akron, Ohio, will close its defined-benefit pension plan to all employees hired after August 31 and replace it with a new defined-contribution plan, confirmed Goodyear spokesman Keith Price.

The changes were included in a new contract with the United Steelworkers union that was ratified September 21; Goodyear released information about the new contract on Tuesday, September 29.

Kevin Johnsen, Goodyear contract coordinator for the United Steelworkers, said the “vast majority” of union members voted in favor of the deal, noting it would affect roughly 1,000 to 1,500 production and maintenance employees.

“We’re satisfied with the agreement as a whole,” he said.

Johnsen noted that the new plan increases the multiplier for those still in the DB plan to $58 per month for each year of service from $55. Starting January 1, the multiplier on future service increases to $63 per month for each year of service, he said.

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

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