Speaking of the issues

Retirement proposals

August 26, 2008 – click here to read second offer highlights

August 22, 2008 – click here to read first offer highlights

July 29, 2008 - Enhanced defined-contribution retirement program proposed for future Boeing hires

Boeing has offered a new defined-contribution retirement plan that includes an automatic company contribution as well as a company matching contribution.

Under this proposal, Boeing would contribute an amount equal to 4 percent of a new employee’s base pay whether or not the employee makes contributions to the plan. In addition, the company would match 50 percent of employee contributions up to 8 percent of an employee’s base pay. This is the same match that IAM-represented employees receive today through the Voluntary Investment Plan. In total, Boeing will contribute 8 percent of employees’ base pay when employees take full advantage of the company match.

This new retirement program will help accomplish two key goals:

• Allows us to attract and retain the kind of quality employees we need to remain successful. It provides an exceptional retirement benefit that vests immediately, grants employees control over their retirement funds, and is portable for employees who leave the company. We believe that these are valuable elements of a retirement plan designed to attract a new, more mobile generation of employees while offering those employees who spend their careers at Boeing the opportunity to achieve long-term, financial well-being.
• Makes retirements costs more predictable for the company, which helps Boeing remain competitive while providing employees with an opportunity for a financially secure retirement. In an environment where a dwindling number of companies are offering traditional pension plans, this will help Boeing remain competitive while providing employees with an opportunity for a secure financial future in retirement.

The company announced a similar retirement program on June 24 for nonunion Boeing employees hired on or after Jan. 1, 2009. In addition, Boeing also negotiated this type of retirement program for new hires in six union contracts around the company.

July 29, 2008 – Proposed discontinuation of early-retiree medical for future Boeing hires

Also today, Boeing proposed discontinuing the early-retiree medical plan for IAM-represented employees in Puget Sound, Portland and Wichita hired after July 1, 2009.

Boeing discontinued early-retiree medical for nonunion employees hired after Jan. 1, 1999. Early-retiree medical also has been discontinued for new hires in all but four of Boeing’s 50 labor agreements.