Ryder Freezes Pension Plan For Employees

The days of defined benefit plans continue to end at many companies, and Miami-based truck leasing company Ryder Systems is the latest to freeze its pension plan for employees, according to The Miami Herald. The plan will affect about 9,400 of Ryder’s 27,000 employees. The company is shifting employees to a 401(k) savings plan. Employees with fewer than 20 years with the company will be moved to the new program and will not lose pension benefits already earned. Ryder will automatically deposit 3% of an employee’s pay into the 401(k) plan. A financial statement for 2005 showed that Ryder estimated contributions for its pension plan to reach around $115 million over the next five years.  The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.