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.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Serial complainer cries harassment? Investigate every allegation
- Never tolerate co-worker sex harassment, even if harm comes from words, not deeds
- Employee is own lawyer? Don't ignore the suit
- Oilfield services firm settles retaliation suit for $30,000