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Andersen Opts for 401(k)
Privately held Andersen Corp. will transition to a new retirement package this week, according to the Minneapolis/St. Paul Business Journal. The employer of more than 14,000 people in North America will forego its traditional pension plan for a 401(k) offering, and will close its retiree medical coverage to incoming employees.
The changes will mainly affect new hires after the start of the year and will not impact current retired employees who receive benefits. The manufacturer will replace its pension system with a defined contribution 401(k) plan and employee stock ownership, the paper notes.
“Although the Andersen pension plan is fully funded, healthy and sustainable for current participants, we’ve spent quite a bit of time analyzing the company’s total retirement benefits package and our ability to sustain it in the long term, given the growth of our company base as well as legislative, regulatory and accounting standards changes,” said CEO Jim Humphrey in a statement.
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