NEWS OF THE WEEK BUSINESS
DUPONT CHANGES RETIREMENT OPTIONS Firm will move to a savings-andinvestment plan from traditional pension U P O N T LAST WEEK A N -
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nounced a money-saving change to its U.S. employee retirement options. Under the new plan, the company will change its definedbenefits pension plan, which is fundedby the company, andupgrade its employee savings plan to a savings-andinvestment retirement plan, or a 401(k). The move will add $0.03 per share in 2007 and $0.05 per share thereafter. As the new savings plan is phased
in, the company's defined-benefits pension program will continue for current employees, but after 2007, DuPont's contribution will be lowered by one-third of its current level. The new savings plan, which will take effect in January 2008, will include 100% employee participation with a company contribution of 3% of each employee's pay into the worker's account. In addition, employees who add their own contributions to the plan will receive a 100% company match on the first 6% of their savings. The new savings plan will begin onjan. 1,2007,fornew employees, who will not participate in the defined-benefits pension plan.
Mike Johnston, practice leader in human resources consulting firm Hewitt Associates' retirement practice, says there are three interconnected reasons why companies are getting out of defined pensions. First is competitiveness. "In a world of global workforces," he says, "American companies spend more on retirement than companies in other parts of the world do." Second, he says, government regulation "in the past few years has made defined pension plans riskier to operate." New pension rules recently signed into law mean that contributions to defined-benefits plans are going to respond much more quickly to any kind of underlying volatility. And if assets go down, employers are going to have to put in more money, and it's going to hit them sooner than under the old law. And finally, Johnston thinks most new employees have no idea what a defined-benefits plan means. "From the standpoint of attracting new employees, 401(k) plans have been much sexier," he says.—WILLIAM ST0RCK
NEUROSCIENCE
the synthetic compound icilin. The cool-sensitive nerves bear the receptor TRPM8, an ion channel that alters how much sodium and potassium crosses the membrane of these cells, Fleetwood-Walker says. The ion concentrations control the cells' NCE CHRONIC PAIN, SUCH and neither does anything else." release of glutamate. Glutamate as pain from an injury or The identification of a natural released from the TRPM8-conarthritis, gets a grip on the pain-killing pathway is signifi- taining nerve cells can inhibit body, it's hard to eradicate. But re- cant, says University of Southern other nerve cells that pass along searchers at the University of Ed- California pain researcher David pain messages to the central nerinburgh, in Scotland, havefounda D. McKemy. "Ifwe can activate a vous system. Working with rats, way to treat this pain with cooling pathway that's involved in produc- the Edinburgh group found that chemicals. They've also figured ing natural analgesia, this may give activating TRPM8 nerve cells out how these compounds soothe us some therapeutic interventions with menthol or icilin therefore chronic pain, which is often caused that are less invasive" than current blocks the transmission of pain messages (Curr. Biol. 2006,16, by nerve damage. treatments. "There is real difficulty in The Edinburgh researchers 1591). treating these patients with studied sensory nerves in the skin "We now understand the mechany known drugs," says neuro- that respond to cool tempera- anism of cool-induced analgesia," scientist Susan M. Fleetwood- tures. These nerves also respond says Fleetwood-Walker. "We now Walker, who led the study with to chemicals that create a cooling know exactly what we should be pharmacologist Rory Mitchell. sensation when applied to skin, targeting with drugs."—SOPHIE "Morphine doesn't work well including mentholfrommint and R0VNER
COOL COMPOUNDS Interaction with nerves reveals mechanism to block chronic pain
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