Bank of America to freeze pension plan

Bank of America announced plans Thursday to freeze pension plans, effective in July, and increase its 401(k) contributions instead.

Eligible employees will keep the pension benefits that they’ve earned to date but will not receive additional benefits, Bank of America (BAC, Fortune 500) spokesman Scott Silvestri said.

The company will instead begin making an additional 2-3% annual contribution to employees’ 401(k) accounts, on top of the existing program that matches employee contributions up to 5%.

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“Making these changes simplifies our offerings, gives employees control in managing their retirement savings and ensures our retirement benefits remain competitive,” Silvestri said in an email…

via Bank of America to freeze pension plan – Feb. 23, 2012.