Summary
This Form 8-K filing by The Boeing Company on March 10, 2014, primarily details significant changes to its executive retirement benefit plans. Effective December 31, 2015, eligible participants in the Supplemental Executive Retirement Plan (SERP) will cease to accrue pension benefits. These participants will transition to a new defined contribution benefit starting January 1, 2016. The transition involves company contributions to the Voluntary Investment Plan (VIP) and/or the Supplemental Benefit Plan (SBP). The contribution percentages are tiered, starting at 9% for 2016, decreasing to 7% by 2018, after which participants will generally receive the same contributions as those hired after 2008. An additional defined contribution benefit under the SBP is also extended to certain executives, including a 5% contribution and a service-based incremental amount for those aged 55 and over.
Key Highlights
- 1Boeing is amending its Supplemental Executive Retirement Plan (SERP) and Supplemental Benefit Plan (SBP).
- 2Pension benefit accruals under the SERP will cease for eligible participants effective December 31, 2015.
- 3Eligible executives will transition to a new defined contribution benefit starting January 1, 2016.
- 4Company contributions to the Voluntary Investment Plan (VIP) and/or SBP will be 9% in 2016, 8% in 2017, and 7% in 2018.
- 5After 2018, contribution rates will align with those for employees hired after 2008.
- 6An additional defined contribution benefit is being provided to certain executives hired before 2009.
- 7This additional benefit includes a 5% contribution plus a potential service-based incremental amount for executives aged 55 and over.