Diebold to freeze pension plan completely

Diebold Inc. is freezing its pension plan completely, concluding a process it began in 2003.

About 3,000 employees will be affected by the latest freeze, a spokesman for the North Canton, Ohio-based provider of automatic teller machines, security systems and related services said in an email. Diebold has about 6,800 U.S. employees.

“Diebold is getting more aggressive in its cost-saving efforts moving forward. As part of these actions, Diebold is freezing its defined benefit pension plan for U.S.-based employees who joined the company prior to July 1, 2003,” the company said in a statement reporting its second-quarter financial results.

However, Diebold is sweetening its 401(k) plan matching contribution for employees affected by the freeze. Effective Jan. 1, 2014, the match will double, with Diebold matching 60% of employees' contributions up to 6% of pay. It now matches 30% of employees' contributions up to 6% of pay.

At the end of 2012, Diebold's pension plan was just over 70% funded, with $674 million in benefit liabilities and $473 million in assets. At the end of the first quarter of this year, the plan was 81% funded, the Diebold spokesman said.