Libbey Inc. (LBY) announced modifications to the company's retirement benefits for its U.S. salaried associates. The company also announced an additional reduction-in-force of its U.S. salaried staff, bringing the total planned reduction, including those announced in July 2012, to approximately nine percent of its global managerial, professional and administrative workforce. The benefits and staffing changes announced this quarter are estimated to reduce annual expenses by more than $10 million annually.
Libbey said it will freeze company contributions to its cash balance pension plan for U.S. salaried associates as of January 1, 2013.
The company noted that all pension plan participants will retain their accrued pension benefits. The company will offer salaried associates an improved 401(k) benefit that includes an increased Company match. Effective December 31, 2012, Libbey also will end its existing healthcare benefit for salaried retirees age 65 and older and instead provide a Retiree Health Reimbursement Arrangement (RHRA) that supports retirees in purchasing a Medicare plan that meets their needs.
Savings from the benefits changes are expected to begin in January 2013; staffing reduction savings should begin in mid-2013.
The announced changes will not impact Libbey's customer service or offerings.
In July, Libbey had said it expects to eliminate approximately 5 percent of its global managerial, professional and administrative workforce.
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