Arkansas Best Revises Pension Plan for Nonunion Employees

Arkansas Best Corp. said it will freeze its defined benefits plan for nonunion employees, as of July 1.

The changes will not affect the vested pensions of retirees or former employees, and accrual of future benefits for current affected employees will end, the company said in a statement.

Affected employees are being offered the ability to enter a defined contribution plan as of July 1.

The company did not say how much it expects to save by ending the plan, but said it “expects that the reduction . . . will be material going forward.”

Arkansas Best is the parent company of less-than-truckload carrier ABF Freight System and Panther Expedited Services.

ABF and the Teamsters union reached a tentative five-year agreement earlier this month for the company’s employees represented by the union.

The pension plan change was not related to the Teamsters contract, a company spokeswoman told Transport Topics.

Arkansas Best Corp. is ranked No. 13 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.