Bank of New York Mellon eliminating defined benefit pension plan; Highmark Health starting furloughs; Mylan completes …


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Defined benefit pensions cut in the works at BNY Mellon

Bank of New York Mellon is eliminating its defined benefit pension plan for all U.S.-based employees, effective June 30, and instead will make additional contributions to workers’ 401(k) plans, the company said in an email to employees this week. The change affects people hired before 2010. Employees hired after 2010 already receive retirement benefits exclusively through the 401(k) plan. BNY Mellon said it will make a basic contribution of 2 percent of pay to make up for ending contributions to the pension plan. That’s on top of a company match of up to 5 percent of pay that the bank already contributes. The New York-based bank said the move was in line with trends in the industry. “Only one company in our peer group maintains a legacy pension structure,” CEO Gerald Hassell said in the email.

Dozens of Highmark workers being furloughed, redeployed

About 95 people are being furloughed or redeployed within Highmark Health, across the company’s three-state service area, a spokeswoman said Friday. Of those, 66 were positions within HM Health Solutions Inc., a data-hosting and business-process subsidiary. The rest were within Highmark Health Plan, its health insurance division. Most employees will be offered the opportunity to apply for other positions within Highmark, and others could be asked to take a position with an external contractor.

Mylan completes acquisition, tax-cutting reorganization

Mylan Inc. said Friday it completed the previously announced acquisition of Abbott Laboratories’ non-U.S. specialty and branded generics business in developed markets. As part of the transaction, Cecil-based Mylan reorganized under a new public company, based in the Netherlands, in a tax-cutting strategy known as an inversion. The company will continue to trade under the ticker symbol MYL. 

Net income increases at United-American Savings

United-American Savings Bank, South Side, reported net income for 2014 of $598,000, or $1.97 per share, up from $557,000, or $1.86, in 2013. Net interest income rose to $2.8 million from $2.6 million, while noninterest income fell to $181,000 from $278,000.

Economy grew at moderate 2.2 percent in fourth quarter

The Commerce Department said Friday that the economy as measured by the gross domestic product grew at an annual rate of 2.2 percent in the October-December quarter. For all of 2014, the economy expanded 2.4 percent, up slightly from 2.2 percent growth in 2013. 

Signed contracts to buy homes rise to 18-month high

The National Association of Realtors said Friday that its seasonally adjusted pending home sales index increased 1.7 percent to 104.2 in January. December’s figure was also revised higher to show a decline of only 1.5 percent, considerably better than a previously estimated drop of 3.7 percent. The index is now 8.4 percent above its level one year ago and is at the highest level since August 2013.

Fiat Chrysler recalls SUVs for possible stalling

Fiat Chrysler is recalling more than 467,000 Dodge and Jeep SUVs worldwide to fix a faulty fuel pump relay at the root of a potential stalling problem. The recall announced Friday by the company covers 2012 and 2013 Dodge Durangos and 2011 Jeep Grand Cherokees outside North America.

— From staff and wire reports

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