Benefits September 27, 2006
NCR Announces Pension Freeze
September 27, 2006 (PLANSPONSOR.com) - NCR Corp., an
information technology services company, announced in a
Securities and Exchange Commission filing it will freeze its
defined benefit pension plans as of December 31.
Reported by Rebecca Moore
The Associated Press reports that current employees in the company’s DB plan and executive pension plan will no longer accrue benefits after December 31. The move is expected to reduce pension expenses by approximately $40 million in 2007.
Beginning January 1, 2007, the company will increase the match contribution formula in its defined contribution plan to match 100% of the first 4% of participant deferrals and 50% of the next 2% of deferrals, according to the AP.
According to the company, the changes were made “to reduce pension expense in order to enhance the company’s competitiveness in the marketplace.”