8-KLeadership ChangesOther EventsExhibits & Filings

BOEING CO 8-K Report, Executive Changes (Mar 11, 2014)

Filed March 11, 2014For Securities:BABA-PA

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.

Frequently Asked Questions

The main purpose of this filing is to inform investors about significant amendments to Boeing's principal non-union pension benefit plans, specifically the Supplemental Executive Retirement Plan (SERP) and the Supplemental Benefit Plan (SBP), shifting from defined pension benefits to defined contribution plans for executives.

The cessation of pension benefit accruals under the SERP will be effective December 31, 2015. The new defined contribution benefit structure will begin on January 1, 2016. The amendments to the plans themselves are effective as of March 1, 2014.

Eligible executives will receive company contributions to their Voluntary Investment Plan (VIP) and/or Supplemental Benefit Plan (SBP). These contributions will be 9% of eligible earnings in 2016, 8% in 2017, and 7% in 2018. After 2018, the contribution rates will generally match those provided to employees hired after 2008. Additionally, certain executives hired before 2009 will receive an extra 5% contribution plus a potential service-based increment for those aged 55 and over.

The changes primarily affect eligible participants in the SERP, which generally includes employees hired before 2009, encompassing the company's named executive officers. Certain executives hired before 2009 will also receive additional defined contribution benefits.