The measure, effective April 1, closes the plan to
future employees and discontinues future benefit accruals
for current employees.
According to a press release, the Roseville, California-based telecommunications holding company has made cash contributions to its defined benefit plan ranging from $3 million to $9 million over the last five years, with annual service costs averaging $5 million over that same period.
SureWest said it was also considering changes to its defined contribution plan, which currently provides a match of 100% of contributions up to 6% of pay. The added features may include loan provisions, automatic enrollment and additional investment choices.
“We have worked very hard to develop a total
compensation and benefit package that rewards outstanding
performance and meets the needs of our employees,” said
Steve Oldham, SureWest’s president and chief executive
officer, in the press release. “What we have found is that
only a very small percentage of our current employees will
ultimately get full benefit from the current pension plan,
so it makes absolute sense to freeze that benefit and
reward employees in other ways.”