Automaker, Chrysler has indicated that it is moving white-collar workers to a new defined-contribution retirement plan form January of 2014.

Under the plans, the employees will retain their pension benefits already earned. Chrysler pointed out that the new plans are to comply with IRS regulations and consistent with industry trends. The decision by Chrysler follows a similar move by General Motors in the previous year. Ford Motor has also offered pension buy outs to white-collar retirees and former employees.

Nancy Rae, human resources senior vice president, in a statement that, "We recognize the importance employees place on retirement benefits. By offering transitional financial counselling at no cost and providing diversified investment options in our participant-directed retirement and savings plans, employees can more easily manage their financial health and better prepare for the future."

Chrysler clarified that the decision will not affect those who joined the company after 31 December, 2003, who have already left the company or current retirees. The company also said that it would assists employees who retire on or after 1 January, 2014 to receive all of their accrued benefit at the age of 58 years. The company had closed down its traditional pension plans for new employees and created the Employee Managed Retirement Plan for employees hired after on or after 1 January, 2004.