Kodak recently announced that it is increasing the benefits provided under its defined benefit plan.  Kodak will credit an additional 3% of pay each year under its cash balance pension plan instead of making a matching contribution of up to 3% of pay under its 401(k) plan.  In connection with this change, Kodak announced that it is reducing its pension costs.  Providing benefits under a defined benefit pension plan can be more efficient, allowing a company to provide a greater benefit for the same cost as a matching or nonelective contribution to its 401(k) plan.  Covington is advising Kodak with respect to this pension change.  For additional analysis, see Jerry Geisel’s article in Business Insurance.