US - Citigroup is set to freeze its cash balance plan in 2008 but will in turn "greatly enhance" its 401(k) offering.
Citigroup said it could increase company contribution to as much as 8% of annual pay for those employees earning less than US$100 000 - well above the current 3% contribution.
The US bank said it made the changes in a bit to place benefits on a par with those at rival companies.
Charles Prince, CEO of Citigroup, said: "We will invest significantly more in our employees under this improved approach to our retirement savings.''
Citigroup currently has around $10bn of pension assets.
The closure of the BT Pension Scheme (BTPS) to future accrual means 20,000 active members will move to an 'enhanced' defined contribution (DC) scheme, after the company reached a deal with the union.
In this week's Pensions Buzz we want to know what you think of the government's proposals set out in the DB white paper, which include new powers for the regulator.
The pensions watchdog has been through some testing times and is making significant changes to the way it regulates. Speaking to Stephanie Baxter, Mark Boyle takes stock and looks to the future
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.