American Honda Motor Co. Inc., Marysville, Ohio, is closing its U.S. defined benefit plan to employees hired on or after Jan. 1, 2014, confirmed spokesman Jeffrey Smith.
Mr. Smith wrote in an email that an “enhanced 401(k) plan” is being created for new employees beginning on Jan. 1. He would not provide further details.
The company said in a statement, “We are making changes to our comprehensive retirement program in order to enhance the long-term sustainability of the program, and to offer a more consistent approach for associates across North America.”
The U.S. defined benefit plan had $3.8 billion in assets as of Sept. 30, 2012, according to Pensions & Investments estimates.
Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.