Feb 24, 2012
--- Bank of America will freeze its pension plans for
eligible employees, effective July 1, 2012. ---
According
to news reports, employees will keep the pension benefits they have earned to
date; however, workers will no longer accumulate new benefits into the
fund.
The
company is moving to a 401(k) retirement plan for most of its employees. The
company currently matches contributions of eligible workers up to 5% in
the 401(k) plan; however, starting on July 1, the company will start
contributing funds into workers’ 401(k) plans, regardless of whether they contribute
to the plan. The company will contribute 2% to 3% of a worker’s salary into the
401(k) plan.
Tara Cantore