The Angels and the Red Sox are among the first MLB teams "to discontinue" pension plans for non-uniformed personnel after 200-300 employees of the two clubs were informed that "as of Jan. 1, teams would no longer contribute to the plans, and new hires would not be able to enroll in them," according to Mike DiGiovanna of the L.A. TIMES. Existing pension commitments to fully vested employees "are not affected, so funds from those defined benefit plans will not disappear." Employees of both teams said that the clubs "have beefed up existing defined contribution plans -- or 401(k) plans -- to offset the reduction and eventual elimination of pension plans, bumping matching contributions from about 4% to as much as 10%." Angels President John Carpino said, “This wasn’t a cost-saving move. ... It’s about flexibility for employees." A scout from one of the teams said, "They’ve given us a high-powered 401k, which is nice. You can control how your money is invested. You can borrow against it. We just have to change gears and try to play catch-up." DiGiovanna notes the "lucrative pension benefits for former players and uniformed personnel are not affected." Other teams are "expected to follow suit," and the "public outcry some anticipated with the moves of the Angels and Red Sox has not materialized." White Sox Chair Jerry Reinsdorf, who opposed last January's vote by fellow owners, said that he would "continue to fund pension plans for non-uniformed White Sox personnel, but he didn’t necessarily object to the actions of the Angels and Red Sox." Reinsdorf: "I have no problem with anyone who changes to a defined contribution plan if they didn’t hurt anybody. The new plan may end up being just as good" (L.A TIMES, 12/18).
