The decision will affect the company’s more than 1,500-US salaried workforce and certain participants in the US hourly workforce, and is set to happen June 30, 2006.
A statement released by the company assured the switch to 401(k) contributions “would balance the needs of providing retirement security for our employees, while providing a more predictable cost structure for the company.”
With this decision, Stepan joins the onslaught of US and UK companies making similar moves. Recent companies that have followed the same path include Nissan (See Nissan Follows Trend of DB to DC Switch ) and Northwest (See Northwest Airlines Freezes Pension Plans ).
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