Philadelphia-based Cigna is freezing pensions

May 12, 2009 3:39:25 AM PDT
Declining enrollment and investment income force the insurer to cut costs.

As of July 1, about 26,000 of the company's employees will no longer receive new benefits under the pension plan, though they will retain their accrued benefits and account balances.

This does not affect Cigna's 40,000 retirees.

The move is expected to save the company about $40 million a year.

Cigna says it will enhance its 401(k) plans by the beginning of next year, offering larger matching contributions.

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