Getting ready for retirement on day one

The first day of a job and the day of retirement may seem like opposite ends of the career timeline. But they are closely tied. The "pension clock" starts on the hire date, which is used to calculate years of service. In addition, most employees become eligible to actively save for retirement on their first day with Boeing. The Voluntary Investment Plan, Boeing's largest savings plan, has no waiting period for new hires to participate, a generous company match, plus immediate vesting of the company match.

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Retirement benefit enhancements announced

In April 2003, the company increased the minimum benefit formula from $50 to $60 per month per year of service for the Pension Value Plan (PVP) for nonunion salaried employees. The change is effective for employees—who are active, on leave of absence or laid-off but within the six-year "bridge period" of their layoff date as of April 1—and who start their pension benefit on or after April 1, 2003. Those retirement- eligible employees who left in March and started their pension benefit on April 1 are also eligible.

In addition, the company will enhance Boeing's 401(k) Savings Plans by providing a pre-tax catch-up contribution option to all eligible employees who are at least age 50 by the end of each plan year, starting in 2003. This new feature is scheduled to be available on October 1, 2003, for employees who are age 50 or older anytime from January 1 to December 31, 2003.

"We recognize the importance of our pension and savings benefits to our people, now and long after their time working at Boeing," said Laurette Koellner, Chief People and Administration Officer, and Office of the Chairman. "These changes are part of Boeing's total retirement income philosophy whereby both pension and savings are designed to work together with Social Security and personal savings. It also demonstrates the company's effort to ensure that we continue to provide a competitive overall benefits package."