BancorpSouth (BXS) in Tupelo, Miss., will take a $10.9 million charge for an early-retirement program meant to cut costs in the long term and an additional charge is possible.
Five percent of the $13.4 billion-asset company's work force accepted a package that includes improved pension benefits, the company said Monday. The early-retirement program is expected to save BancorpSouth approximately $9 million per year.
BancorpSouth offered voluntary early retirement to 418 employees, or approximately 10% of its 4,231 workers, it announced last month. Of those, 227 accepted the offer. The offer ended May 23.
The program is said to provide improved pension payments either through a lump-sum payment or an annuity. The company may take an additional charge of between $8 million and $10 million if the number of employees who choose the lump sum exceeds a certain threshold, it said.
"We are thankful for the contributions of each and every individual who has chosen to participate," Rollins said in a news release. "The acceptance rate confirms the confidence management had that the program provided pension enhancements that are reflective of each individual's value and service to our company."