Arkansas Best (ABFS) Changes Nonunion DB Pension Plan; Sees Material Impact

May 17, 2013 4:03 PM EDT
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Arkansas Best Corporation (Nasdaq: ABFS) announced today that it has adopted changes to its nonunion defined benefit pension plan ("the Plan"). The changes affect all active Plan participants including all management executives who are participants. The change is being made to reduce the ongoing costs, including administrative and regulatory costs, associated with the Plan.

Effective July 1, 2013, the Plan will be frozen with the result that the accrual of future benefits under the Plan will stop. Retirement benefits earned by participants through June 30, 2013 will be preserved. In accordance with legal requirements applicable to pensions, the Plan changes will not impact the vested pension benefits of retirees or former employees. Active employees participating in the Plan will become eligible for the discretionary defined contribution plan effective July 1, 2013.

While the precise amount of net savings resulting from the changes to the Plan and participation in the discretionary defined contribution plan cannot be determined at this time, Arkansas Best expects that the reduction in this expense will be material going forward.

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