Chrysler will freeze its salaried employee DB plans effective Dec. 31, 2014.
Beginning in January 2015, the company will begin making contributions to a DC plan on behalf of eligible salaried Canadian employees.
In addition, to assist participants with this change, Chrysler will allow retirement-eligible employees who retire on or after Jan. 1, 2015, to receive 100% of their accrued contributory benefit beginning at age 60 (versus age 62).
“We recognize the importance employees place on retirement benefits,” says Nancy Rae, Chrysler’s senior vice-president, human resources. “As we move forward, Chrysler Group will provide comprehensive tools and resources to help employees make decisions about their retirement readiness.”
All accrued benefits through Dec. 31, 2014, will remain in place and participants will not lose what they have accrued as of that date.
The salaried employee DB plan freeze does not affect those who were hired after Jan. 1, 2013, have already left the company, or are currently retired.