DALLAS—Consumer products manufacturer Kimberly-Clark Corp. said it will freeze its defined benefit pension plan for nonunion employees.
After Dec. 31, benefit and service accruals will cease, Dallas-based Kimberly-Clark disclosed in a filing Wednesday with the U.S. Securities and Exchange Commission.
At the same time, the company said it will add a 401(k) plan in which it will match 100% of employees' salary deferrals, up to 4% of pay. Kimberly-Clark will make additional contributions, up to 6% of pay, with the amount of those discretionary contributions based on company profits.
Contributions to an existing defined contribution plan will end Dec. 31.
These changes come as Kimberly-Clark's profits have fallen. Net income for the first quarter of 2009 declined to $407 million, down 7.7% from the comparable period in 2008. For all of 2008, Kimberly-Clark reported net income of $1.69 billion, down 7.3% from 2007.
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