Barnes & Noble Inc. is hoping to close the books on its terminated defined benefit plan by offering a lump-sum payment to 2,350 active and terminated employees still on the books.
The company sought to transition from offering pensions to workers back in 2000, when it froze its pension plan. Its board of directors approved a resolution to terminate its defined benefit plan in June, effective Nov. 1, according to filings with the SEC.
The company said it expected to take 18 to 24 months to complete the termination.
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Its most recent offers to terminated workers who have yet to retire was accepted by 640 employees, which removed $15 million in liabilities from Barnes & Noble's books, resulting in a $6.8 million settlement charge, according to the SEC papers.
At the end of last year, the company's defined benefit plan held $54 million in assets.
The book retailer, which has suffered from years of declining book sales, still claims around 26,000 participants in its 401(k) plan, who are offered a matching contribution of up to 4 percent of salary. Employees are vested after 1,000 hours of service, according to Barnes & Noble's website.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
