Current Dow and DuPont retirees will remain in their current pension plans after merger close. Future changes, if any, will be communicated prior to their effective date and can only affect prospective benefits, not those earned.
- The IRS and Department of Labor rules strictly protect a participant’s rights to his or her vested accrued benefit.
- The amount of a participant’s vested accrued benefit in a qualified plan is strictly protected by federal law and cannot be reduced as a result of the transaction.
- Qualified pension assets are held in trusts that are separate legal entities from both Dow and DuPont and will not be affected by the transaction. Qualified U.S. pension benefits are protected under federal law, and the plans must meet their obligation to existing pensioners and other participants through the assets held in a secure trust. The protection under federal law generally prohibits plans from using pension funds for any purpose other than paying benefits and qualified plan expenses.