NEW YORK — Beginning in 2008, Citigroup Inc. said it will freeze its cash balance pension plans and will instead boost contributions to its 401(k) plan for most U.S. employees.
On Nov. 3, the nation's largest bank said it will match up to 8% of the pay for 401(k) contributions made by employees who earn less than $100,000, and 6% for those with higher salaries, according to a memo to employees.
The number of defined-benefit plans in the United State has shrunk from more than 112,000 in 1985 to less than 30,000, according to the U.S. Pension Benefit Guaranty Corp.
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