DuPont to End Pension Contributions
As it prepares to merge with compatriot Dow Chemical, US chemical giant DuPont has announced it will eliminate its pension contribution for active employees. In a filing with the US Securities and Exchange Commission (SEC), the Wilmington, Delaware-based group said active employees will no longer accrue additional benefits, and employees under age 50 also will no longer receive dental, medical and life insurance benefits in retirement.
Reports said the changes to the in-house employee benefits, due to take effect at the end of November 2018 or on the incorporation of the new company DowDuPont, will impact the retirements of at least 13,000 employees. From the current vantage point, the fusion that initially would create a new $130 billion enterprise before a planned split into three independent units will be completed by the end of the 2017 first quarter.
The plans will affect only DuPont employees and retirees in the US and Puerto Rico and will not apply in foreign markets. Likewise, the chemical group said its employees' private retirement savings plans known as 401(k) and health savings accounts will not be affected. DuPont said the changes have less to do with the Dow merger than with an attempt to align with practices of other US companies. It noted that since 1998 almost 25% of all Fortune 500 companies no longer contribute to employees' primary pension plans, and 40% offer only the 401(k) plans.
