State Street Corp., Boston, will freeze its defined benefit plan starting Jan. 1, while enhancing contributions to its 401(k) plan, said spokeswoman Carolyn Cichon. The firm will double its 401(k) employee match to 100% of the first 6% of salary and eliminate the current one-year waiting period before employees become eligible for the match. In addition, the company will automatically enroll employees in the company’s 401(k) program at 3% of their salary, increasing the contribution by one percentage point each year up to 6%, said Ms. Cichon. She said State Street is making the change to empower employees by giving them more choices and greater flexibility in meeting their retirement needs.
According to the Money Market Directory, State Street’s pension plan had $550 million in assets, and its 401(k) plan, $993 million, as of December 2004, the latest data available.
