Minnesota-based 3M has announced updates to its retirement plans for non-union U.S. employees starting in 2028.
According to a statement issued by the company, pension-eligible employees will continue to accumulate benefits under the retirement plans until the moratorium date of December 31, 2028.
The decision applies to both 3M and the independent healthcare company’s future US pension plans.
Former employees with vested pension benefits, 3M or 3M Health Care retirees and anyone currently receiving pension payments are not affected.
The company states that the transition from a pension plan to a 401(k) retirement plan has been in the works for many years. In 2009, the company closed the second portfolio of its American Retirement Plan for new and returning employees.
“This is an important decision for 3M because it helps set up both companies for future success. This was also a difficult decision because it affects employees across the United States. To help those affected, we are providing advance notice,” said Mike Roman, 3M Chairman and CEO. “For five years to ensure that our employees can plan alternative strategies to meet their income needs after retirement.”