Kimberly-Clark Freezes DB Plan, Adds 401(k)

April 23, 2009 (PLANSPONSOR.com) - Dallas-based Kimberly-Clark Corporation will freeze its defined benefit pension plan for non-union workers on December 31, 2009, and adopt a new 401(k) program.

The company said in a U.S. Securities and Exchange Commission filing that:

  • no future compensation and benefit service will be accrued in the pension plan other than that called for in union contracts,
  • no future compensation and benefit service under the Supplemental Plans will be accrued,
  • all contributions to the Incentive Investment Plan and the Retirement Contribution Plan will be discontinued for future plan years other than provided by union contract, and
  • all credits to participant accounts will be discontinued under the Supplemental Retirement Contribution Program for future plan years.

The company also announced in the filing that it would kick off the 401(k) as of January 1, 2010. The plan will include a 100% company match up to 4% of participant deferrals and a discretionary profit sharing contribution of up to 6% of compensation annually based on the company’s financial performance.

Kimberly-Clark said it would also add a non-qualified supplemental plan benefit to the Supplemental Retirement Contribution Program.

«