Sensata Technologies to Freeze Pension Plan
December 21, 2011 (PLANSPONSOR.com) – Sensata Technologies announced it will freeze its pension plan and scale back 401(k) contributions next month.
According to news reports, in an e-mail to employees, Sensata CEO Tom Wroe said employees will no longer receive a pension credit for additional years of work or future raises after January 31, 2012. There will however be exceptions for initial vesting and early retirement eligibility.
The company will also stop paying an extra 2% contribution to the 401(k) accounts of employees who chose not to participate in the pension plan. The company however will continue to match employee 401(k) contributions up to 4% of their salaries, said Wroe.
Sensata employs approximately 945 workers in the U.S.
Earlier this month, McGraw-Hill announced plans to freeze its employee pension plans in early 2012 (see McGraw-Hill to Freeze Employee Pension Plan).