Friday, October 07, 2005

Lockheed To Cut Employee Benefits

Pension Changes to Affect New Workers

By Renae Merle
Washington Post Staff Writer
Friday, October 7, 2005; Page D01

Lockheed Martin Corp., one of the largest private employers in the region, announced yesterday that it will cut its benefit plans to eventually save the company $125 million to $150 million a year.

Employees hired after Jan. 1 will be ineligible for the company's traditional pension plan, which guarantees workers a percentage of their salaries upon retirement, and will not qualify for retiree health care benefits.

[...]

Full Story


Comments:
From the article: "Employees hired after Jan. 1 will be ineligible for the company's traditional pension plan, which guarantees workers a percentage of their salaries upon retirement, and will not qualify for retiree health care benefits."

The question is "How will this affect LANL employees?" We will be "hired" after January 1st. We need to watch this very closely.

My guess is that we will come in with a "substantially equivalent" benefit plan when the contract starts, but things will be changed in the latter years to get benefits in line with the 5% DOE rule and to save the LM/UT LLC some money.

Hope that I am wrong on this!
 
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