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Kodak changing pension formulas

 
Posted July 30th, 2014 @ 5:53pm by Bud Lowell

 

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.

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