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.”
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