Boeing’s pension plan gets a boost: Boeing
Boeing’s $1.4 trillion pension plan for police officers will receive an extra $1 billion in tax breaks as part of a $1,000 increase in federal pension funding over the next two years.
The announcement Tuesday is part of the company’s effort to reduce its long-term pension obligations by about $1 trillion, the largest one-time investment in its history.
The new investment, called the Boeing Police Officer Pension Plan (BOPP), is designed to help pay for pension obligations for police departments across the country.
The funds, which were first set up in 2010 and have a total value of more than $2.6 trillion, are expected to increase by $100 billion over the course of the decade.
Boeing has been in the midst of a restructuring effort in recent years, with some of its top executives being laid off or demoted.
It has also been struggling with a sluggish economy, with the company reporting its fourth straight quarter of declining sales.
The company has been cutting $3 billion from its workforce since May, and is hoping to reduce the amount of time officers spend on the job by nearly 50 percent over the coming years.
BopP will include an additional $500,000 for each year officers spend in police work, according to the company.
The additional $1 million will come from a 2 percent boost in the $2,200 annual contribution officers are required to make to the pension plan.
The plan will also include a $600,000 bonus for officers who complete at least three years of active duty.
The move comes amid mounting calls for the company to improve its pension plans, which have been under pressure from public officials and the unions who have been pushing for better pensions for officers.
The new investment comes as Boeing has been under intense scrutiny from state and local pension officials, who have argued that the company has not met the standards of its fiduciary responsibilities.