The Birmingham, Alabama-based bank said it will suspend matching contributions to 401(k) plans and benefit accruals to its traditional defined benefit plan, according to the Birmingham News, citing a bank spokesman. The halts will start April 1 and April 16, respectively, according to published reports. The spokesman said the company views the suspensions as temporary and hopes to reinstate contributions next year.
Regions had been matching 401(k) contributions dollar-for-dollar up to 6 percent of employees’ pre-tax income.
“We are making targeted expense cuts to save jobs,” Deighton said, according to the report. “It would mean the end of 1,400 jobs to achieve similar savings.”