Current employees of Eastman Kodak will see more changes in their pension plans starting January first.
Kodak officials say Kodak's KRIP AND SIP plans will no longer offer a choice of either a traditional pension formula or a cash balance formula. They'll move to a single cash balance formula. Those already in the traditional plan will get their pre-2015 benefit plus whatever they accumulate in the new cash-based plan. In addition, vacation carryover will being reduced to two weeks and executive salaries will be frozen for this year.
All of this is part of a memo issued by CEO Jeff Clarke . Clarke says says the company must simplify its processes and manage its cost structure better if Kodak hopes to to stay competitive.
The company says this will save $15 million next year alone -- and cut its long-term benefit obligation by $55 million.