Johnson & Johnson is joining the ranks of the employers that have reduced pension benefits for new employees. The company, ranked 39th among the Fortune 500, made the announcement in an internal memo, according to The Wall Street Journal.
The new policy, a cost-cutting measure, goes into effect on Jan. 1, 2015. It does not affect the current nearly 120,000 employees, nor its retirees. It does apply to former employees it rehires.
Johnson & Johnson Vice President for Human Resources Peter Fasolo reportedly said in the memo that the company seeks to more closely align its benefits with those its competitors offer. He also said that the new policy reflects the way the “benefit landscape” has changed.
Despite the benefit reductions, Fasolo said that he believes the company’s retirement program will still be “above average” among its peers and that it will still help Johnson & Johnson attract and retain employees.
The new policy, a cost-cutting measure, goes into effect on Jan. 1, 2015. It does not affect the current nearly 120,000 employees, nor its retirees. It does apply to former employees it rehires.
Johnson & Johnson Vice President for Human Resources Peter Fasolo reportedly said in the memo that the company seeks to more closely align its benefits with those its competitors offer. He also said that the new policy reflects the way the “benefit landscape” has changed.
Despite the benefit reductions, Fasolo said that he believes the company’s retirement program will still be “above average” among its peers and that it will still help Johnson & Johnson attract and retain employees.
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