Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.
The Markets February 24, 2012
BofA to Freeze Pension Fund
Bank of America will freeze its pension plans for
eligible employees, effective July 1, 2012.
Reported by Tara Cantore
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.
You Might Also Like:

New York City Bar Committee Makes Recommendations to Strengthen Retirement Security
In a letter, the committee, comprised of legal professionals representing employee benefits stakeholders, expressed concern that legislative shifts aimed at...

Senator Warren Wants Information About Empower’s Push Into Private Equity for 401(k) Plans
Democratic Senator Elizabeth Warren wrote to the company’s CEO, Edmund Murphy III, outlining concerns about the asset class and demanding...

Plan Sponsors Reevaluating DB Plan Terminations Amid Surplus Increases
A Mercer survey finds CFOs are looking at plan design changes or risk transfers, in lieu of walking away from...