Pension Cuts Looming At More Community Banks. (cover story)

The article focuses on the possibility of pension cuts at U.S. community banks. The author argues that one way to cut costs for banks would be to freeze pension plans, analyzes why most companies have stopped offering pension plans and opt for retirement savings 401(k) plans instead, and discusses the option of employee stock ownership plans. He explores the costs of maintaining pension plans and explains why defined-benefit plans are not justifiable from the perspective of company shareholders.