L.L. Bean freezes pension, offers early outs
FREEPORT, Maine — L.L. Bean is moving to cut costs by freezing pensions and offering voluntary early retirements, and company officials say they are taking a hard look at its generous shipping and return policies.
The Freeport-based outdoors retailer will freeze its defined-benefit pension plan and boost its 401(k) savings contributions to all 5,000 workers, including 1,000 out-of-state store employees who were not previously eligible for the full pension, company officials told The Associated Press.
It’s part of a broader look at all aspects of the business, company officials said, which could lead to changes that affect shoppers.
L.L. Bean currently offers free shipping on everything, and its “satisfaction” guarantee is so liberal that it’s led to abuse of the return policy. Company officials said they will have more to say later this year about shipping and efforts to combat fraudulent returns.