Arkansas Best Corporation Announces Changes To Its Nonunion Pension Plan
FORT SMITH, Ark., May 17, 2013
FORT SMITH, Ark., May 17, 2013 /PRNewswire/ -- 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.
Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a freight
transportation services and integrated logistics solutions provider. Through
its various subsidiaries, Arkansas Best offers a wide variety of logistics
solutions including: domestic and global transportation of less-than-truckload
("LTL") and full load shipments, expedited ground and time-definite delivery
solutions, freight forwarding services, freight brokerage, oversight of
roadside assistance and equipment services for commercial vehicles, and
household goods moving market services for consumers, corporations and the
military. More information is available at arkbest.com, abf.com and
The following is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: Statements contained in this press release that
are not based on historical facts, including the statement regarding the
expected cost savings related to changes to the Plan, are "forward-looking
statements." Terms such as "anticipate," "believe," "could," "estimate,"
"expect," "forecast," "intend," "plan," "predict," "prospects," "scheduled,"
"should," "would," and similar expressions and the negatives of such terms are
intended to identify forward-looking statements. Such statements are based on
management's current beliefs and assumptions, and actual results may vary
materially from those anticipated, projected or implied. Forward-looking
statements are not guarantees of future events or performance and are subject
to uncertainties and risks, including, but not limited to, Arkansas Best
Corporation achieving less than the anticipated benefits and/or incurring
greater than anticipated costs relating to changes to the Plan; general
economic conditions; union and nonunion employee wages and benefits; and other
financial, operational, and legal risks and uncertainties detailed from time
to time in Arkansas Best Corporation's Securities and Exchange Commission
public filings. Arkansas Best Corporation expressly disclaims any
responsibility to update forward-looking statements.
Contacts: Mr. David Humphrey, Vice President, Investor Relations
Telephone: (479) 785-6200
Media: Ms. Kathy Fieweger, Vice President, Marketing and Corporate
Telephone: (479) 719-4358
SOURCE Arkansas Best Corporation
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