Evaluation

‘No way’ Boeing employee pension would cost $1 billion

Boeing says its employees will receive their pension payments after all, and the company is looking to cut a deal with California.

The aerospace giant said Friday that it would pay all employees a lump sum of $1.2 billion, including $700 million in cash and stock.

That amount is less than the $1,800 annual salary the company said employees would receive in a new collective bargaining agreement signed by all U.S. employees.

Boeing’s pension plan also includes a guaranteed pension for employees who retire in 2027, and a 401(k) retirement plan for workers who retire after 2027.

The deal is expected to cost about $900 million, which would be paid by the company.

Bryant said the company wants to reach an agreement with California as soon as possible.

Beside a $1 million lump sum, Boeing will also pay its workers a $500,000 severance package and $50,000 bonus.

Boesing has said it will continue to provide generous retirement benefits and offer workers an incentive package if they leave the company in 2029, and if they are able to find new employment.

Bozier said that while Boeing would like to reach a deal in the next two weeks, it would need to finalize a new agreement by the end of April.

The company said the deal would allow it to continue to work on a new, more efficient 777 jetliner that will be built at its factory in Everett, Wash.

The Boeing deal with the state will save the state $1 to $2 billion in annual retiree health care costs, said Assemblyman Tom Ammiano, the Democrat who represents the Bay Area.

In a statement Friday, Boeing said it had been in talks with the California Legislature for several months about the future of its pension plan.

Brent Bozier, a Boeing spokesman, said the state had not been able to work out a long-term agreement with Boeing.