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June 3, 2013 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) announced today the final results of the Company's previously announced voluntary early retirement program, which was offered to certain employees as a part of ongoing efforts to improve efficiency and operating performance. All responses were due, subject to applicable rescission rights, on or before
May 23, 2013.
Of the 418 employees who were eligible to participate in the program, 227 accepted the early retirement offer. As a result, the Company will record a one-time, pre-tax charge of
$10.9 million, or
$0.07 per share net of tax, related to the additional benefits offered under the terms of the program. The program will result in fully phased-in annual pre-tax savings of approximately
$9 million, or
$0.06 per share net of tax.
Dan Rollins, BancorpSouth Chief Executive Officer, said, "We are thankful for the contributions of each and every individual who has chosen to participate. 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."
Participants were given the opportunity to elect to receive the pension plan enhancements in the form of lump-sum or annuity payments. If total lump-sum distributions from the Company's pension plan for the year, including those not related to the voluntary early retirement program, exceed a threshold of
$16.7 million, an additional pre-tax non-cash charge ranging from
$8 million to $10 million will be incurred in 2013 to accelerate amortization of items included in accumulated other comprehensive income related to pension assets. Acceleration of this charge would reduce pension expense by an amount ranging from
$0.7 million to $0.9 million per year over the next 11 years.