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Motorola Puts DB Plans, 401(k) Match on Hold

December 17, 2008
Related Topics: Managing Change, Benefit Design and Communication, Latest News
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Motorola Inc. will permanently freeze its U.S. defined-benefit pension plans effective March 1 and temporarily suspend matching contributions to its 401(k) plan effective January 1.

The actions came as the result of “the sustained downturn in the global economy,” said Greg Brown and Sanjay Jha, co-CEOs of the Schaumburg, Illinois-based company, in a news release.

Motorola will preserve pension assets accrued by current employees and retirees but will eliminate future benefit accruals. The company will continue to provide funding to meet its pension obligations to current and future retirees, the news release said.

Motorola had total plan assets of $8.8 billion as of September 30, with $3.8 billion in defined-benefit assets and $5 billion in 401(k) assets, according to a Pensions & Investments survey. A Motorola spokeswoman did not respond to requests for additional information.

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

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