Monday, October 10, 2005

Lockheed to drop pension plan for new employees

BETHESDA, Md. (AP) - Defense contractor Lockheed Martin Corp. will no longer provide traditional pension plans to new salaried employees in part to cut costs, offering them instead defined contribution retirement plans.

In a letter to the company's 85,000 salaried employees, Lockheed said Thursday it will contribute money to accounts for the new workers that give them the option to invest the money as they choose.

However, as of Jan. 1, new hires won't be offered a pension where they receive regular payments after retirement based on years of service and salary.

Lockheed Martin has about 8,000 employees in New Mexico - about 7,600 of them work at Sandia National Laboratories in Albuquerque.

Lockheed spokesman Tom Jurkowsky said new salaried employees at Sandia won't be affected by the cut because the lab offers a separate pension plan.

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