The actions came as the result of “the sustained downturn in the global economy,” said Greg Brown and Sanjay Jha, co-CEOs of the Schaumburg, Illinois-based company, in a news release.
Motorola will preserve pension assets accrued by current employees and retirees but will eliminate future benefit accruals. The company will continue to provide funding to meet its pension obligations to current and future retirees, the news release said.
Motorola had total plan assets of $8.8 billion as of September 30, with $3.8
billion in defined-benefit assets and $5 billion in 401(k) assets, according to
a Pensions & Investments survey. A Motorola spokeswoman did not respond to
requests for additional information.
—Jennifer Byrd/Pensions & Investments
To comment, e-mail editors@workforce.com.
—Crain's Benefits Outlook, December 2008
