American International Group Inc. will freeze its defined benefit pension plan, effective January 1, 2016, according to an internal company memo obtained by the Wall Street Journal.
It is the latest in the on going trend of large sponsors of traditional pension plans moving to a defined contribution savings model in the effort to limit employer liabilities and funding volatility.
At the end of August, Pittsburgh-based United States Steel Corp. announced in an 8-K filing with the Securities and Exchange Commission that it, too, was freezing its defined benefit plan for salaried and non-union employees, effective at the end of this year.
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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.
