Chrysler announced that is freezing its pension plan for its U.S. salaried workers at the end of 2013, reports Detroit Free Press.
The company’s decision affects 8,000 current workers and will not affect retired workers or hourly employees.
As of December 31, 2013, the company’s 8,000 current salaried workers who have earned a pension will no longer accrue additional benefits. They will get to keep the pension benefits they have earned so far.
Starting in 2014, the automaker will transition those employees into a defined contribution plan, which it already offers to salaried workers who were hired as of January 1, 2004.
As part of the plan, Chrysler said it would provide retirement planning counseling to workers.
“We recognize the importance employees place on retirement benefits,” Chrysler Senior Vice President for Human Resources Nancy Rae said in a statement.
“By offering transitional financial counseling at no cost and providing diversified investment options in our participant-directed retirement and savings plans, employees can more easily manage their financial health and better prepare for the future.”
Source: Detroit Free Press
