Disney Aligns Pensions, Drops DB Plan for New Hires

May 13, 2011 (PLANSPONSOR.com) – The Walt Disney Company is combining its two separate pension plans and will only offer a 401(k) plan to employees hired after December 31, 2011.

Florida’s News 13 explains that since Disney’s acquisition of ABC in the 1990s, it has been maintaining separate pension plans for the two operations’ salaried employees. It will now create a single plan for those workers and for anyone hired before the end of 2011. Current workers still have access to a 401(k) plan.  

New hires will only be offered the 401(k) plan. 

In addition, according to an e-mail sent to Disney employees posted on the News 13 Web site, effective January 1, 2012, the pension plan will have a different formula that will be common for all eligible U.S.-based salaried employees and cast members.    

“Affordability, sustainability and consistency across the Company are the three main reasons for the changes,” the e-mail said.