Q:

What is Boeing's pension plan?

A:

Quick Answer

As of 2015, Boeing's pension plan is in transition from a traditional plan to a retirement savings plan. The company makes a deposit to the account at the end of each year. Boeing also matches any amount the employee adds to his 401(K) retirement plan, up to 6 percent.

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Full Answer

Boeing put the plan into effect for all non-union new hires beginning in 2009, and it is already in place for the 28 unions that represent the company's employees. The plan calls for Boeing to contribute 9 percent of the non-union employee's salary to the 401(K) for 2016, with the amount decreasing by 1 percent for the next two years. The final plan is for the company to contribute 3 to 5 percent of the worker's income each pay period. The employee's age determines the amount the company contributes to his retirement.

For employees who have built up a traditional retirement income but are continuing to work for the company, Boeing plans to freeze the retirement account as of December 2015 until the employee retires. Qualified employees can expect to receive funds from the traditional account, the employer funded savings account and the 401(K) upon their retirement. The move by Boeing does not affect retirees already receiving their traditional retirement from the company.

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