Interchange Financial Services Corp., Saddle Brook, N.J., plans to freeze its $2.8 million defined benefit plan at the end of the year, resulting in a one-time pre-tax gain of about $1 million and saving the company about $500,000 in pension costs in 2006, according to an SEC filing.
On Jan. 1, new employees will be offered only the company's 401(k) plan, to which the company will contribute 2% of base pay in the form of company shares, up from the current contribution of 1%, according to the filing. Existing employees will be able to move to the plan.
