Wells Fargo & Co., San Francisco, is freezing its cash balance pension plan, making it one of the largest employers to do so.
Effective July 1, employees no longer will earn benefits in the plan. Wells Fargo also is freezing the cash balance plan sponsored by Wachovia Corp., a Charlotte, N.C.-based bank Wells Fargo acquired last year.
Wells Fargo will continue to match 100% of employees 401(k) plan salary deferrals, up to the first 6% of pay.
Wells Fargo said in a statement that the decisions to freeze the plans were difficult, but it is confident that were taking the right steps to ensure the long-term strength of our company.
It also said the 401(k) plan is one of the most beneficial tools for employees to save for retirement.
Wells Fargo had $4.568 billion in its hybrid plan and $11.596 billion in defined contribution assets, including $8.774 billion in its 401(k) plan, as of Sept. 30, according to Pensions & Investments data.
Jerry Geisel is a reporter at Business Insurance, a sister publication of Pensions & Investments.