New hires at RBC in Canada will no longer have access to its defined benefit plan, according to the Globe and Mail.
The bank’s chief human resources officer, Zabeen Hirji, sent an internal memo to employees announcing the changes, which came about after a review of the bank’s retirement program.
As of Jan. 1, 2012, the DB plan will no longer be available to new employees and current employees who are already in the DB plan can remain in it or switch to the company’s defined contribution plan.
And as of July 1, 2012, the DC plan will include an automatic RBC contribution, higher matching contributions and higher annual RBC contribution limits, said Hirji.
The changes are being made to ensure more predictable pension costs in the future, according to an RBC spokesperson. “There is no cost savings for us in the near term,” she said in the Globe.