Fidelity Investments plans to eliminate its defined benefit(DB)plan for its U.S. workers later this year.
Instead, the company will offer an increased profit-sharing plan and a 401(k)plan with a 7% match, up from the current 5% match.
When the pension plan is eliminated at the end of May, employees will have the option of rolling over their accrued benefits into their profit-sharing plan or they can take it in the form of an annuity.
Current retirees will still receive the same payouts, but it won’t come from pension plan.
Chris Pepper, director, media relations for Fidelity Investments Canada says the changes won’t affect Canadian employees. The company’s group RRSP has been around since Fidelity set up shop here.
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