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Benefits May 4, 2007
Lincoln Financial Latest in DB Freeze Trend
May 4, 2007 (PLANSPONSOR.COM) - Philadelphia-based
financial services company Lincoln Financial Group is the
latest employer to turn away from its defined benefit pension
plan and transition employees to a beefed-up 401(k)
plan.
Reported by Fred Schneyer
class=”bodytext”> Lincoln announced in a news release that the DB plan would be frozen and the defined contribution changes would go into effect as of January 1, 2008.
According to a Business Insurance news report, Lincoln will provide an automatic contribution equal to 4% of employee pay and a match of 100% of employees’ salary deferrals up to the first 6% of pay.
In its statement, Lincoln said the changes were prompted by “the changing dynamic of the retirement landscape, and the greater need by today’s employees for flexibility and portability of their retirement assets.”
Earlier this week, Troy, Michigan-based auto parts supplier ArvinMeritor announced it would freeze its defined benefit plan, but increase the contributions to its defined contribution plan (See ArvinMeritor to Freeze DB Plans, Boost DC Payments ).