CHICAGO, June 24 /PRNewswire-FirstCall/ -- The Boeing Company (NYSE: BA) is introducing a new retirement benefit program for nonunion employees hired or rehired on or after Jan. 1, 2009. The new program will be a defined contribution savings plan that includes an automatic company contribution as well as a company matching contribution.
This change will not affect Boeing's more than 525,000 current employees, former employees, or retirees who participate in the company's existing savings and pension plans.
"We are changing our retirement program for nonunion new hires for several reasons," said Rick Stephens, senior vice president, Boeing Human Resources and Administration. "This new approach addresses new employee preferences for retirement programs that offer flexibility and portability and responds to market trends and practices of peer companies. At the same time, it allows us to better manage our retirement plan expenses and reduce financial risk."
Under the new plan, Boeing will contribute an amount equal to 3, 4 or 5 percent of a new employee's pay (depending on age), regardless of whether the employee contributes to the plan. Also, the company will match employee contributions dollar for dollar for the first 4 percent of pay the new employee contributes and 50 cents on the dollar for the next 4 percent of pay the new employee contributes. The automatic company contribution and company matching contribution will both be fully vested immediately.
"Both the current and new hire retirement programs provide employees with an exceptional benefit and an opportunity for significant income replacement at retirement," Stephens said. "We know that we must offer a competitive retirement package in order to attract and retain world-class talent. The plan we're introducing in January reinforces our commitment to providing benefit programs and resources to help employees build their financial futures."
To date, Boeing has negotiated a similar new hire retirement program with several of its unions and will continue to discuss this topic during future negotiations.
CONTACT: Todd Blecher of Boeing, +1-312-544-2002
Web site: http://www.boeing.com/