Sandy Spring Bancorp Inc., Olney, Md., will terminate its pension plan, effective June 30.
The bank's board of directors voted to terminate the plan at its meeting on March 30, according to its 10-Q filing with the SEC filed on May 6.
The plan has been frozen since Dec. 31, 2007. According to the filing, the company plans to make an additional, undisclosed amount of cash contributions to the plan and purchase a group annuity contract from an insurer to transfer remaining liabilities once the termination is approved by the IRS and PBGC.
That approval is expected sometime in 2023, according to the 10-Q filing. The amount of the group annuity contract will be determined after a lump sum offer to participants is completed.
As of Dec. 31, the company's pension plan had $45 million in assets and $48 million in projected benefit obligations, for a funding ratio of 93.8%, according to its most recent 10-K filing.
Bank spokeswoman Jen Schell could not be immediately reached for further information.
