3M will freeze its U.S. defined benefit pension plans for non-union U.S. employees, effective Dec. 31, 2028, and move plan members to a 401(k) plan structure.
Eligible employees will continue to accrue benefits under the pension plans until the freeze date, according to a press release, which noted this decision applies to both 3M and 3M Health Care. Former employees with vested pension benefits, retirees and those currently receiving pension annuity payments won’t be impacted by this action.
The move from a DB plan to a 401(k) has been underway at 3M for many years and by moving to a 401(k) structure, the company is focused on providing its employees with more flexibility and control when it comes to investing in their future, the release said.
“This is an important decision for 3M as it helps to set up both companies for future success,” said Mike Roman, chairman and chief executive officer of 3M, in the release. “This was also a difficult decision because it impacts employees across the United States. To help those impacted, we are providing five years of advance notice to ensure our employees can plan alternative strategies to meet their post-retirement income needs.”