LM to freeze retirement benes

The Defense Department’s largest contractor, Lockheed Martin, is planning a freeze to employees’ defined-benefits retirement plan and moving it to a defined-contribution plan starting in 2020. Lockheed is following Boeing’s lead in May to freeze its expensive retirement benefits in order to cut costs in order to compete in the world of federal sequestration. Also, current U.S regulations require a company to freeze its current plan by 2020 or face a significant tax penalty. The new pension plan will come into effect beginning on Jan. 1, 2016. Lockheed owns the Pentagon’s largest-ever contract to develop and build the F-35 Joint Strike Fighter; and Freedom-class Littoral Combat Ship. "This action also allows us to better manage the rising costs of our retirement programs at a more predictable rate and to limit our long-term liabilities," a Lockheed spokesperson said. LM has 113,000 employees with about 48,000 participating in the current defined-benefit plan. Lockheed employees belonging to the International Association of Machinists and Aerospace Workers (IAM) went on strike at Stennis Space Center in May over pension changes. (Source: Reuters News Service 07/01/14) Central Mississippi Note: LM’s Mississippi locations include Meridian’s production and assembly facility for half of the C-130J “Super Hercules” transport aircraft’s fuselage; a Mission Support Center in Clinton; and an Information Systems and Global Solutions facility at Stennis Space Center. Elsewhere across Gulf Coast states, Lockheed operates a Space Systems facility at Michoud’s New Orleans NASA facility; and in Huntsville, Ala.