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Under this program, workers can allocate a portion of future salary increases to retirement savings accounts.
Previously management had been offering staff two options – stay in the final salary scheme but have future salary increases for calculating pension benefits capped at 1% annually, or move to a new defined contribution scheme.
In an email to staff today Lucy Adams, director of BBC People, and Patel, said: "Future salary increases for calculating pension benefits will be limited to 1% per annum.
Teachers pay between $75 and $225 to take each class, which can run from 2 to 10 days, and earn credits that are counted, along with graduate work, toward future salary increases.
In 2004, together with Shlomo Benartzi, a behavioral economist at U.C.L.A., he proposed a way to raise savings rates by allowing workers to commit a portion of their future salary increases to savings accounts.
Just as many experts, though, say that consumers are dipping into their savings only to maintain their current standard of living and that they will save any future salary increases to create a buffer against rising health care and pension costs.
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Leaders warn that this may impact on future staff salary increases, which they say would be detrimental to morale.
Lump sums are more palatable to management because they do not inflate base salaries, which are used to compute overtime, pension payments and future wage increases.
The freeze would amount to about $1.2 billion in one year, but over time the freeze builds up savings because all future salaries would increase from a lower base.
Under its plan, International Paper said it could ask executives for repayment, reduce the amounts they stood to receive in the future and withhold future equity grants, bonuses or salary increases.
Increasing future salary expectations.
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