3M to scrap pension plans for non-union employees | MarketWatch

3M Co., the renowned consumer, industrial, and healthcare products company, has made a significant announcement that could affect the retirement plans of its non-union U.S. employees. They have revealed their intention to discontinue their pension plan in five years, emphasizing a shift towards a 401(k) retirement plan structure. According to 3M, this transition aims to provide employees with more flexibility and control over their investments for their future.

The decision has implications for 3M and Solventum, an independent healthcare company that 3M plans to spin off in the first half of 2024. However, those currently receiving pension payments from 3M will not be impacted by this change, as it will come into effect on December 31, 2028.

This move by 3M raises questions about the evolving landscape of retirement planning and the relationship between businesses and their employees. How might such retirement benefits shifts impact workers’ financial well-being and their long-term financial security? And what role do these decisions play in a company’s financial health and market performance?……….[read more]

Rising Dough

How do changes in employee retirement plans, like 3M’s shift to a 401(k) structure, influence a company’s competitiveness, shareholder relations, and overall economic impact?