According to a company press release from the Troy, Michigan-based supplier of automotive components, the plan freeze for salaried and non-represented employees in the U.S. will begin January 2008. It will affect approximately 3,800 employees including certain workers who will continue to accrue benefits for an additional transition period, ending June 30, 2011.
The increased contributions into employees’ DC plans will be based on a percentage of the employee’s pay, with the contribution percentage increasing as the employee ages, the company said.
The pension plan freeze is part of across the board cost-cutting measures.
The announcement came at the same time the company unveiled a $325-million restructuring plan that would require it to close 13 plants and cut 2,400 jobs in North America and Europe .
The company will also cut an additional 400 jobs as part of consolidation.