The $172 billion asset company SunTrust Banks, Atlanta, will terminate its $2.5 billion cash balance pension plan at the end of the year, Pensions & Investments reports. The move is part of an annual review of all benefits to keep SunTrust competitive in recruiting and retaining employees.
All employees will participate in an existing $1.7 billion 401(k) plan after December 31. The company will also increase its annual matching contribution to 6 percent from 5 percent after the move. In addition, the company will make discretionary contributions to 401(k) plans beginning 2013, adds American Banker.