Dow Chemical Co., based in Midland, has announced it will adopt a cash-balance plan for new employees, making it the largest employer to do so since Congress passed legislation last year protecting new plans from age-discrimination lawsuits.
The plan will award annual credits of 5% of pay to employees, with interest based on a spread above a U.S. Treasury bill index. Dow will offer the plan to salaried employees hired as of January 2008. Current employees will continue to earn benefits under an existing pension-equity plan.
Employees “want to be able to take the funds with them if they choose to leave the company,” a Dow spokeswoman said. Benefits also accrue faster in a cash-balance plan, Dow pointed out.
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