07/01/2014 // West Palm Beach, Florida, US // JusticeNewsFlash // Justice News Flash // (press release)
Maryland – Employees of advanced technology company Lockheed Martin are reportedly being moved to a different retirement plan. As reported by Reuters, the company, which is the largest defense supplier for the Pentagon, is freezing its defined-benefit pension plan, and moving employees to a defined-contribution retirement plan by Jan. 1, 2010.
The company stated Tuesday that the new plan will become effective Jan. 1, 2016.
A spokesperson for Lockheed Martin is quoted as stating to Reuters of the change, “This action also allows us to better manage the rising costs of our retirement programs at a more predictable rate and to limit our long-term liabilities.”
Lockheed’s move comes after that of other companies like Boeing Co, which announced a similar action in May in an effort to reduce costs.
As noted by Reuters, Lockheed Martin has 113,000 employees, with under an estimated half participating in the current pension plan.
This report is provided by Justice News Flash – Maryland Legal News
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