November 18, 2011 (PLANSPONSOR.com) - SunTrust Banks will freeze its employee pension plan at the end of the year.
According to the Atlanta Journal-Constitution, SunTrust spokesman Mike McCoy said the change helps ensure the long-term stability of the company’s retirement program. He noted that the company annually assesses the competitiveness of benefits offered.
Starting in January, the bank will increase its matching contribution in its employee 401(k) plans from 5% to 6%, and provide an annual discretionary 401(k) contribution to employees. SunTrust’s expected pension obligation increased $253 million to $2.26 billion at the end of last year, according to its annual filing with the Securities and Exchange Commission, the news report said.