3M freezing pensions for non union employees in 2028

3M is freezing pension plans for non union U.S. employees at the end of 2028, the company announced Monday. The cost saving move applies to 3M employees and those at the health care company it is spinning off this year. "This is an important decision for 3M as it helps to set up both companies for future success," CEO Mike Roman said in a statement.

"To help those impacted, we are providing five years of advance notice to ensure our employees can plan alternative strategies to meet their post retirement income needs." The Maplewood based company started moving toward 401(k) retirement plans in 2009 when it cut off access to the U.S. pension plan for new hires and rehires.

3M did not immediately address questions about the number of affected employees. While still common in government jobs, just 15% of private sector workers have access to a pension or defined benefit plan, according to the Congressional Research Service. Pension participation in the private sector peaked at 30 million in 1980 and now numbers 12 million.

Pension eligible 3M employees will accrue benefits until Dec. 31, 2028. Former employees with vested benefits, retirees and those receiving pension annuity payments are not impacted by the freeze, 3M said. This story will be updated..