Macy's to freeze defined benefit plans
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Macy's Inc. will freeze its defined benefit pension plan for employees and a supplemental pension plan for corporate executives and will boost its 401(k) plan matching contribution, the retail chain said Thursday.
The pension plan freezes go into effect on Dec. 31 this year and the matching contribution increase goes into effect on Jan. 1, 2014.
The Cincinnati-based company said it is freezing the pension plans “to better plan and manage expenses in an environment in which health care costs are expected to increase.”
The company said the savings associated with the pension plan freezes will “offset increases in health care costs” and facilitate achieving its profitability goals.
In connection with the changes to the retirement plans, Macy's said it expects to record a one-time balance-sheet reduction of about $300 million in its retirement liabilities.
