State Street ends traditional employee pensions

BOSTON, Sept 24 (Reuters) - State Street Corp (STT.N), the world's largest institutional money manager, said on Monday it is ending the traditional pensions it offers to about 15,000 U.S. employees, joining a growing list of firms making workers responsible for their retirement savings.

State Street said instead it will from Jan. 1 offer more benefits in its 401(k) plans and double the amount it contributes in those plans to 100 percent up to the first six percent of what the employees contribute.

Boston-based State Street joins cross-town neighbor and money manager Fidelity Investments, which in March said it was ending traditional pensions that make predetermined payouts to about 32,000 employees.

State Street declined to spell out the financial impact of the move. "It is not a cost-saving initiative," said Carolyn Cichon, a spokeswoman for the firm.

State Street shares ended down 0.6 percent at $66.52 on Monday.

(Reporting by Muralikumar Anantharaman)

((Editing by Leslie Gevirtz; Reuters Messaging: murali.anantharaman.reuters.com@reuters.net; +1 617 367 4199)) Keywords: STATESTREET PENSIONS/

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