Summary
TechnipFMC plc (FTI), through its subsidiary FMC Technologies, Inc., has announced an amendment to its U.S. pension plans, specifically the Amended and Restated FMC Technologies, Inc. Employees’ Retirement Program Part I Salaried and Nonunion Hourly Employees’ Retirement Plan and the Salaried Employees’ Equivalent Retirement Plan. Effective December 31, 2017, the company has frozen all future benefit accruals for all participants in these plans. This means participants will not earn any additional retirement benefits beyond the amounts calculated based on their service and earnings up to the specified date.
Key Highlights
- 1Benefit accruals in specified U.S. pension plans frozen as of December 31, 2017.
- 2Participants will not accrue further benefits after the freeze date.
- 3Future benefits will be calculated based on credited service and eligible earnings as of December 31, 2017.
- 4This action affects both Salaried and Nonunion Hourly employees participating in the plans.
- 5The amendment was made by FMC Technologies, Inc., a wholly owned subsidiary of TechnipFMC plc.
Frequently Asked Questions
The main impact is that participants in the specified U.S. pension plans will no longer accrue additional retirement benefits. Their benefits are now fixed based on their employment status as of December 31, 2017.
No, this amendment specifically pertains to the U.S. pension plans of FMC Technologies, Inc., a subsidiary of TechnipFMC plc. It does not necessarily apply to all employees worldwide or to other benefit programs.
Freezing benefit accruals means that employees will not earn any more benefits under the plan based on future service or compensation increases. Their vested benefit amount is locked in as of the freeze date.
No, employees will not lose benefits they have already earned. The amendment only stops the accrual of *future* benefits. The benefits earned up to December 31, 2017, will still be provided based on the plan terms.