Lilly (drug maker) staffers will work longer, retirees pay more for benefits

[Omaha Steve]

http://www.indystar.com/apps/pbcs.dll/article?AID=2008301230015

By John Russell
[email protected]

More than 20,000 workers of Eli Lilly and Co. will have to pay a larger share of their health-care premiums when they retire, and some might wind up working longer than expected to earn their full pensions.

The Indianapolis drugmaker, under pressure to control drug prices and facing a wave of patent expirations, informed its 20,300 U.S. employees Tuesday of numerous changes in their retirement benefits.
The changes are designed to keep the company’s benefits plans sustainable for years to come, company spokesman Phil Belt said. He added the company, which has been shedding workers through attrition, is not using the changes to further reduce head count or to increase retirements. He said Lilly’s pension plan is fully funded.

The new benefits plan has three major elements:

Pension plan: The company is keeping its defined-benefit pension plan but is changing the calculation for determining retirement benefits. As a result, an unspecified number of employees “will have to work a little longer” to get the same benefit provided under the current formula, Belt said.

He said that could range from a few more months for senior employees to several more years for new employees. The change is effective in 2010.

FULL story at link.

[tridim]

1. I bet they wouldn't have to do this if their management took a 10% pay cut. nt