Ford runs a 401(k) for current employees plus legacy defined benefit pensions for eligible older workers. Salaried staff use the Savings and Stock Investment Plan (SSIP) 401(k); the salaried General Retirement Plan pension is frozen and closed to hires after 2004. UAW hourly workers have their own pension and 401(k).
Key takeaways
- Current Ford employees build retirement savings mainly through a 401(k): the Savings and Stock Investment Plan (SSIP) for salaried staff and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE) for hourly staff.
- Ford's traditional pensions are legacy plans. The salaried General Retirement Plan (GRP) closed to employees hired on or after January 1, 2004, and benefit accruals were frozen after December 31, 2013.
- The Ford-UAW Retirement Plan is the defined benefit pension for UAW-represented hourly workers. It closed to new hourly hires around 2007, so most newer union employees are on a 401(k) instead.
- The SSIP has widely been reported to match 90 cents per dollar on the first 5% of eligible pay, with pre-tax, Roth, and after-tax options. Match terms can change, so confirm the current figure in your Summary Plan Description.
- Ford's qualified defined benefit pensions are insured by the Pension Benefit Guaranty Corporation (PBGC) up to federal limits.
Ford retirement plans at a glance
| Plan | Who is covered | Type | Key feature |
|---|---|---|---|
| Savings and Stock Investment Plan (SSIP) | Salaried employees | 401(k) defined contribution | Company match on contributions; pre-tax, Roth, and after-tax |
| General Retirement Plan (GRP) | Salaried employees hired before January 1, 2004 | Defined benefit pension | Closed to newer hires; accruals frozen after December 31, 2013 |
| Ford Retirement Plan (FRP) | Salaried employees hired on or after January 1, 2004 | Employer-funded account plan | Replaced the GRP for newer salaried hires |
| Ford-UAW Retirement Plan | UAW-represented hourly employees (legacy) | Defined benefit pension | Closed to new hourly hires around 2007 |
| Tax-Efficient Savings Plan for Hourly Employees (TESPHE) | Hourly employees | 401(k) defined contribution | Primary retirement vehicle for newer hourly hires |
The 401(k): SSIP and TESPHE
For anyone working at Ford today, the 401(k) does the heavy lifting. Salaried employees participate in the Savings and Stock Investment Plan (SSIP), and hourly employees participate in the Tax-Efficient Savings Plan for Hourly Employees (TESPHE). Both are defined contribution plans, which means your balance is what you and Ford put in, plus investment returns, rather than a guaranteed monthly check for life.
The SSIP has been widely reported to match 90 cents for every dollar you contribute, up to the first 5% of eligible base pay, a formula Ford put in place in 2013. Contributing at least 5% is the practical way to capture the full match. The plan also supports pre-tax, Roth, and after-tax contributions, which gives you room to plan around your current and future tax picture. Match formulas and enrollment defaults do get revised over time, so treat any specific percentage as a starting point and verify it against your current plan documents.
Under the 2023 UAW-Ford agreement, the company agreed to raise 401(k) contributions for hourly workers on the defined contribution path rather than reopen the frozen pension. That reinforced the 401(k) as the main retirement engine for the union workforce going forward.
The legacy pensions: GRP and Ford-UAW Retirement Plan
Ford maintains two principal qualified defined benefit pension plans in the US. The General Retirement Plan (GRP) covers salaried employees, and the Ford-UAW Retirement Plan covers UAW-represented hourly employees. A defined benefit plan pays a set monthly amount in retirement, generally based on your years of service and earnings history.
Both pensions are now largely closed. The salaried GRP stopped accepting employees hired on or after January 1, 2004; those newer salaried hires went into the separate Ford Retirement Plan (FRP) instead. For salaried participants who were still in the GRP, Ford froze benefit accruals after December 31, 2013, meaning additional years of service and later pay changes no longer increase the pension. On the union side, the Ford-UAW Retirement Plan closed to new hourly hires around 2007, so most union employees hired since then are on the 401(k) path.
If you are covered by one of these pensions, it remains a real, earned benefit. Ford's defined benefit pensions are insured by the Pension Benefit Guaranty Corporation up to federal limits, which provides a backstop if a plan were ever unable to pay promised benefits.
Current versus legacy employees
Where you land depends heavily on when you were hired and whether you are salaried or hourly.
- Salaried, hired before January 1, 2004: you may have a frozen GRP pension benefit plus an SSIP 401(k). The pension amount stopped growing after 2013, but the balance you earned is still yours.
- Salaried, hired on or after January 1, 2004: your account-based benefit runs through the Ford Retirement Plan (FRP) alongside the SSIP 401(k), with no traditional GRP pension.
- Hourly, hired before roughly 2007: you may have a Ford-UAW Retirement Plan pension plus TESPHE.
- Hourly, hired after roughly 2007: your retirement is built mainly through the TESPHE 401(k), not a defined benefit pension.
The practical takeaway is that most current Ford hires are 401(k) savers, while a shrinking group of longer-tenured and retired employees hold the legacy pensions. Comparing a guaranteed pension against a 401(k) balance is a common decision point for this group, and the tradeoffs mirror what employees weigh at other large employers such as the Nokia Retirement Income Plan.
What to do next
- Pull your Summary Plan Description (SPD) for each plan you are in. The SPD is the controlling document for eligibility, the current SSIP match formula, vesting, and distribution rules. Confirm the numbers there rather than relying on general figures.
- Contribute at least enough to the SSIP or TESPHE to capture the full company match. An unmatched contribution rate leaves employer money on the table.
- If you hold a GRP or Ford-UAW pension, request a benefit estimate and model your options. Look at when payments can start, how early retirement reduces the monthly amount, and what survivor elections cost.
- If your pension offers a lump sum, weigh the lump-sum-versus-annuity decision carefully. A lump sum gives you control and flexibility; a lifetime annuity gives you guaranteed income you cannot outlive. The right answer depends on your health, other assets, and how much guaranteed income you already have.
- For a full picture, coordinate your Ford benefits with Social Security and any outside accounts. A one-time review with a fee-only fiduciary advisor who knows automaker plans can be worth it given the stakes.
This overview is educational and not individualized financial advice. Ford can amend or update its plans, so verify current terms through the official benefits portal or your plan administrator. For more employer retirement breakdowns and planning frameworks, see our retirement planning hub.
Frequently asked questions
What is the Ford SSIP 401(k) match?
The Ford Savings and Stock Investment Plan has been widely reported to match 90 cents per dollar on the first 5% of eligible pay, a formula Ford put in place in 2013. Contributing at least 5% is the practical way to capture the full match. The plan supports pre-tax, Roth, and after-tax contributions. Verify the current figure in your Summary Plan Description, since match terms can change.
Is Ford's salaried pension still open to new employees?
No, Ford's salaried General Retirement Plan pension closed to employees hired on or after January 1, 2004, and benefit accruals were frozen after December 31, 2013. Newer salaried hires went into the separate Ford Retirement Plan, an employer-funded account plan, alongside the SSIP 401(k). The pension amount stopped growing after 2013, but the balance earned is still yours.
What retirement plan do hourly Ford workers have?
Hourly Ford employees participate in the Tax-Efficient Savings Plan for Hourly Employees (TESPHE), a 401(k) defined contribution plan that is the primary vehicle for newer hourly hires. The Ford-UAW Retirement Plan pension closed to new hourly hires around 2007, so most union employees hired since then are on the 401(k) path. The 2023 UAW-Ford agreement raised 401(k) contributions rather than reopening the frozen pension.
Are Ford's pensions protected if the plan cannot pay?
Yes, Ford's qualified defined benefit pensions are insured by the Pension Benefit Guaranty Corporation up to federal limits, which provides a backstop if a plan were ever unable to pay promised benefits. If you are covered by the General Retirement Plan or the Ford-UAW Retirement Plan, it remains a real, earned benefit. Request a benefit estimate and model your options before deciding.