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Boeing Agreement May Freeze DB Plan Accruals

Boeing, a major U.S. employer with more than 160,000 employees, has reached a tentative, six-year agreement with the Society of Professional Engineering Employees in Aerospace that would freeze defined benefit plan accruals for its employees who belong to that union. The agreement is set to go into effect on Dec. 31, 2018.

The agreement also says that beginning Jan. 1, 2019, Boeing will furnish a special retirement contribution to union members who move from the plan, according to Pensions & Investments. The contributions will be as follows:

  • 2019: 9% of eligible participant’s pay
  • 2020: 8% of eligible participant’s pay
  • 2021: 7% of eligible participant’s pay
  • 2022 and after: 3%-5% of eligible participant’s pay

The agreement also says that salary growth for the final pension payout would still be allowed, despite the freeze.