Pension Changes for Some Arconic Workers

Jan 8, 2018

Arconic plans to freeze pension plan contributions for U.S. workers, and instead make contributions to a 401(k) plan for employees.

The company says the freeze only applies to the accrual of benefits for about 7,900 salaried employees plus hourly employees who are not members of a union. Retirees who are already collecting benefits will NOT be affected.

Arconic employee benefits accrued through the end of March will still be available upon retirement. The new policy goes into effect on April 1st.

The maker of aluminum parts for the aviation and automotive industries was created after Alcoa split into two companies in 2016.

The Davenport Works plant in the Quad Cities employs a total of about 2,600 employees.

The move should help the company save money. Arconic expects a liability decrease of about $140 million from the pension freeze.

(Previous version)  

NEW YORK (AP) _ Arconic will freeze pension plan contributions for U.S. workers and instead make contributions to a 401(k) plan for employees.

 The company says the freeze only applies to the accrual of benefits for about 7,900 U.S. employees. Benefits accrued through March 31st will still be available upon retirement. The new policy goes into effect April 1st. There is no impact to retirees already collecting benefits.

The change affects workers at the Davenport Works, in Riverdale.

The maker of aluminum parts for the aviation and automotive industries was created after Alcoa split into two companies in 2016. It expects a cost savings of about $140 million from the pension freeze. 

Arconic to Freeze Pension Plans by Michelle O'Neill on Scribd