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Kodak Changes Retirement Plan Strategy, Boosts DB Plan

Eastman Kodak, one of New York State’s major employers, has changed its retirement plan in a rather unorthodox way. Kodak still offers both a defined contribution plan and a defined benefit plan, but has enhanced its DB plan while making its DC plan less attractive, Business Insurance reports. The  changes go into effect on Jan. 1, 2015, and affect current employees but not retirees. 

Beginning next year, Kodak’s DC plan will become a cash balance plan, and will be based on 7% of an employee’s monthly compensation. The company will drop its employer match of employee contributions to their 401(k) accounts in Kodak’s DC plan. 

The changes will cut company expenses by $12 million in 2015 alone and make its DB obligation $55 million smaller. They are part of a broader strategy to improve Kodak’s finances and make it more competitive. 

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