3M said Monday it plans to end its pension plan for non-union U.S. employees within five years.
Consumer, industrial and healthcare products company MMM,
She said she transitioned from a retirement plan to a 401(k) retirement plan structure “for many years.”
“By transitioning to a 401(k) retirement plan structure, the company is focused on providing employees with more flexibility and control when it comes to investing in their future,” 3M said in a statement.
3M stock fell 0.6% in morning trading. It fell 0.7% last week, after falling 8.8% in 2023. By comparison, the Dow Jones Industrial Average (DJIA) rose 13.7% last year.
People currently receiving company pensions will not be affected by this freeze, which will take effect on December 31, 2028. The freeze applies to both 3M and Solventum, the independent healthcare company that will be spun off in 2028. The first half of 2024.
“This is an important decision for 3M because it helps set up both companies for future success. This was also a difficult decision because it affects employees across the United States,” said CEO Mike Roman. “To help those affected, we are providing five years advance notice to ensure “Ensure that our employees can plan alternative strategies to meet their income needs after retirement.”
3M stock is up 22.1% over the past three months through Friday, while the Dow Jones is up 11.7%.
