Lockheed to Scale Back Retirement Offerings

Lockheed Martin Corp., in a cost-cutting move, will no longer offer traditional pensions and retirement healthcare contributions to new salaried employees.

People hired in 2006 or later will not be eligible for defined- benefit pensions and will instead be provided a defined-contribution plan, Bethesda, Md.-based Lockheed said in a note to 85,000 salaried workers. That will save the company at least $125 million over the next 15 years, Chief Financial Officer Christopher Kubasik said.

Lockheed’s contributions to pensions and retiree health plans have almost doubled in the last two years as the plans’ investment returns haven’t kept pace with rising benefit payouts.