Monday, January 23, 2006

Sprint-Nextel Freezing Pension Plan

Pension benefits will not be offered to any employees hired after the merger.

That's the third big plan this month. This could end up being the worst year ever for defined benefit plans.


Anonymous said...

Why would Sprint-Nextel stop offering pensions?

ALD said...

Bottom line: to save money. Also, a lot of companies are deciding that pensions with their back-loading in favor of long-service employees are not strategically a good compensation/retention tool for today's much more mobile workforce. Companies generally feel they ways to spend their compensation dollars that more closely tie with their corporate HR goals.