Dupont Will No Longer Contribute To Pensions

(RTTNews) - Ahead of the $130 billion merger with Dow, DuPont Co. said it will not pay new contributions to pension plan of employees. The decision will affect more than 13,000 workforces in U.S. The company reportedly will save $550 million over the years. These details were communicated to the employees through a letter from Benito Cachinero-Sanchez, senior vice president of human resources. DuPont claimed that the change in pension plan is nothing to do with the merger with Dow.

When a new company is created after the merger, possibly by the end of 2018, the company's contributions to pension fund will be stopped.

Earlier in 2007, DuPont has seized adding new employees to the pension plan. Since then it has added employees to 401(k) retirement plans.

By November, 2018, the company would stop dental and life insurance benefits for those who are below 50 years.