Boeing to switch non-union workers to 401(k) plans

The Boeing Co. today announced a change in retirement benefits for some 68,000 non-union employees who presently have a traditional defined-benefit pension plan. In 2016, those employees will transition to a company-funded defined contribution retirement savings plan — a 401(k).

If this sounds familiar, it’s because members of the International Association of Machinists and Aerospace Workers (IAM) in January agreed to make a similar change under a new contract that guaranteed that the 777X would be built in Everett.

The change will affect non-union Boeing workers companywide and in subsidiaries, including managers, but it will not affect people who have already retired, the company said in a news release.

“Notice of the impending change is the latest in a series of steps the company has taken to address the challenges created by defined benefit pension plans,” Boeing said. “For example, all non-union employees hired since 2009 and new hires of 28 unions have been moved to defined contribution plans, which help Boeing to better predict and manage financial risks, while still providing its employees a market-leading retirement benefit.”

Boeing said the transition period will include a three-year benefit to employee 401(k) accounts equal to 9 percent of eligible income in 2016, 8 percent of income in 2017 and 7 percent of income in 2018. There will also be pay-period contributions to 401(k) accounts of 3 percent to 5 percent of eligible income, depending on age, beginning in 2019.

“The new benefit will supplement employees’ defined benefit pensions earned through Dec. 31, 2015,” Boeing said. “All pension benefits earned through the end of 2015 are the employees’ to keep.”

More in Herald Business Journal

How to fix health care: More choices, responsibilites for consumers

The third in a series of essays about what should be done to fix our health care system.

More business, more competition for Everett kidney dialysis center

Nonprofit Puget Sound Kidney Centers sees large for-profit competitors enter state market.

Molina Medical holds fall carnival for families in Everett

Molina Medical is hosting a free event for families in the Everett… Continue reading

Leadership Snohomish County celebrates 20 years of service

Leadership Snohomish County is celebrating its 20th anniversary. The organization was launched… Continue reading

Snohomish, Monroe manufacturers honored for innovation, excellence

Two Snohomish County companies have been honored with Manufacturing Excellence awards at… Continue reading

Remodeled home tours planned this weekend

This weekend, Edmonds-based Chermak Construction will participate in the 2017 Remodeled Homes… Continue reading

Barron Heating to celebrate anniversary at Marysville showroom

Barron Heating and Air Conditioning is celebrating its 45th anniversary from 10… Continue reading

Suitors, beware: In Seattle, Amazon also brought disruption

The company has grown there from a workforce of about 5,000 to more than 40,000 in 33 buildings.

Boeing rushes to bring back retirees as temps

It’s unclear if this could be a definitive turn in the downsizing tide.

Most Read