The Markets March 1, 2009

Regions Financial Trades Match for Jobs

Regions Financial Corp. plans to suspend contributions to employee retirement accounts to save money and jobs.
Reported by
The Birmingham, Alabama-based bank said it will suspend matching contributions to 401(k) plans and benefit accruals to its traditional defined benefit plan, according to the Birmingham News, citing a bank spokesman. The halts will start April 1 and April 16, respectively, according to published reports. The spokesman said the company views the suspensions as temporary and hopes to reinstate contributions next year.
Regions had been matching 401(k) contributions dollar-for-dollar up to 6 percent of employees’ pre-tax income.
“We are making targeted expense cuts to save jobs,” Deighton said, according to the report. “It would mean the end of 1,400 jobs to achieve similar savings.”
Products February 28, 2009

Allstate Pulls Back on ClearTarget Retirement Funds

Less than a year after their launch, Allstate has pulled the plug on its Allstate ClearTarget funds.
Reported by
According to the Chicago Tribune, Northbrook, Illinois-based Allstate announced internally Friday that, effective immediately, sales of Allstate ClearTarget Retirement Funds are suspended.
An Allstate spokeswoman explained, “This action is part of a strategy to reduce expenses at Allstate Financial and focus on a narrower set of products that meet everyday Americans’ protection and retirement needs and offer the greatest opportunity for Allstate Financial to compete effectively,” according to the Tribune report.
Allstate filed a document with the Securities and Exchange Commission in March 2008 revealing its plans to roll out a family of seven life-cycle funds called Allstate ClearTarget Retirement Funds. The line was introduced last May, according to the Tribune.
Allstate Corporation slashed its dividend 51% last week after posting two straight quarterly losses, ending a 14-year streak of boosting the payout.

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