The company has said that the amendment closes the plan to future employees and discontinues future benefit accruals for current employees. No employee will lose their previously earned pension benefit. Benefits will continue to be paid according to the rules of the plan.
The company has also announced that in addition to the existing dollar for dollar company match on the first 3% of base salary, the bank will make an additional, fully vested discretionary contribution of 3% of employees’ base salary into their 401k accounts without regarding the employee deferral contribution.
Ted Peters, chairman and CEO, said: We found ourselves to be one of the few remaining banks our size in our market with a defined benefit pension plan. We decided to move to a benefit structure and retirement plan that provides more predictable retirement costs.
