3M announced that it will freeze its U.S. pension plans for non-union U.S. employees, effective December 31, 2028. Pension-eligible employees will continue to accrue benefits under the pension plans until the freeze date. This decision applies to both 3M and its new healthcare spinoff, Solventum.
Former employees with vested pension benefits, 3M or 3M Health Care retirees, and those currently receiving pension annuity payments are not impacted by this action.
The move from a pension plan structure to a 401(k) retirement plan structure has been underway at 3M for many years. In 2009, the company closed Portfolio II of the U.S. pension plan to new hires and rehires. According to 3M, by moving to a 401(k) retirement plan structure, the company can provide employees with more flexibility and control when it comes to investing in their future.
Traditional pension plans guarantee a set monthly retirement benefit determined by factors such as years of service, average salary, and other relevant considerations. A 401(k) retirement plan does not assure a fixed benefit amount upon retirement. Instead, it involves contributions from the employee, the employer, or both into the employee’s personal account, allowing individuals to invest and manage these funds according to their preferences.
“This is an important decision for 3M as it helps to set up both companies for future success. This was also a difficult decision because it impacts employees across the United States. To help those impacted, we are providing five years of advance notice to ensure our employees can plan alternative strategies to meet their post-retirement income needs,” said 3M Chairman and CEO Mike Roman.
To learn more, visit www.news.3m.com/press-releases.