Regions Reinstates Retirement Benefits

Regions Financial Corp. Chief Executive Dowd Ritter told employees the bank will restore its 401(k) matching contributions and restart its accruals on employees’ pension plans in January.

In addition, Ritter said all associates will be eligible for a merit pay increase next year based on their individual performance, the Birmingham Business Journal reported. “Many economists believe that the worst part of this economic downturn is behind us, which is why we are reinstating these important benefits,” Ritter said in the letter, according to the news report.

When the bank announced the suspension of retirement benefits in February (see “Regions Financial Trades Match for Jobs”), it said it was “making targeted expense cuts to save jobs.”