3M on Monday said it plans to freeze pension plans for nearly 9,000 non-union U.S. employees in the coming years.

The company announced that pension-eligible employees will continue to accrue benefits until Dec. 31, 2028. Although 3M retirees, former employees with vested pension benefits, and people currently receiving annuity payments are not affected by the decision, current and future hires will no longer accrue pension benefits in 2029 and beyond.

“This is an important decision for 3M as it helps to set up both companies for future success,” 3M CEO Mike Roman said in a news release issued Monday. “This was also a difficult decision because it impacts employees across the United States.”

Though pension plans remain commonplace among government workers, only 15% of private sector employees had access to a defined pension plan in 2022, according to U.S. Bureau of Labor statistics.

The Maplewood-based manufacturer is the latest big company to abandon retirement plans predicated on company loyalty in favor of ongoing investments from both employees and employers. In 2019, General Electric also opted to freeze pensions for thousands of employees.

In Monday’s news release, 3M officials said the broader switch to 401(k) plans is intended to give employees “more flexibility and control when it comes to investing in their future.”

At organizations nationwide, participation in defined benefit programs has declined by roughly two-thirds since 1975, according to congressional research.

Although affected 3M employees have five years to figure out alternative investment plans, 3M has not offered pension plans to any new hires since changing its policy in 2009 as a cost-cutting measure. At the time, the company began matching employee contributions up to 6% and contributing 3% of pay toward a retirement account rather than footing the entire bill.

Cost-cutting has been a focus for 3M since being embroiled in legal battles that have resulted in a $12.5 billion settlement agreement between the company and local governments over water contamination.

The company has also cut jobs to cut costs. In April 2023, the company announced plans to eliminate 6,000 jobs around the world, including 1,100 at its Maplewood headquarters.