Tuesday, January 17, 2006

Alcoa closing its plan to new members

Alcoa announced that beginning March 1 it will close its pension plan to new entrants. IBM started by closing its plan to new members last year and followed this up by freezing its plan altogether. I would say the probability of Alcoa likewise freezing its plan in the next couple of years is high. This is shaping up to be a bad year for defined benefit plans.

No comments: