Employment Expenses and Benefit Plans

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Employment Expenses and Benefit Plans

Employment Expenses and Benefit Plans

As of December 31, 2012 Synovus had three separate non-contributory retirement and benefit plans consisting of money purchase pension, profit sharing, and 401(k) plans which cover all eligible employees. Annual discretionary contributions to these plans are set each year by the Boards of Directors but cannot exceed amounts allowable as a deduction for federal income tax purposes. For the year ended December 31, 2012, Synovus will make an aggregate contribution for eligible employees to the money purchase pension plan of 3.0% of eligible compensation. Synovus made an aggregate contribution for eligible employees to the money purchase pension plan of 3.0% for the year ended December 31, 2011 and 3.0% for the year ended December 31, 2010. The expense recorded for the years ended December 31, 2012, 2011, and 2010 was approximately $7.1 million, $7.4 million, and $8.9 million, respectively. For the years ended December 31, 2012, 2011, and 2010, Synovus did not make contributions to the profit sharing and 401(k) plans.

Synovus has stock purchase plans for directors and employees whereby Synovus has historically made contributions equal to one-half of employee and director voluntary contributions, subject to certain maximum contribution limitations. The funds are used to purchase outstanding shares of Synovus Common Stock. Synovus recorded as expense $4.1 million, $4.6 million, and $6.0 million for contributions to these plans in 2012, 2011, and 2010, respectively.

Effective January 1, 2013, Synovus made changes to the above mentioned plans by providing a 100% match on the first 4% of eligible employee 401(k) contributions, reducing the stock purchase plan match from 50% to 15% for every $1 of team member investment according to the years of service schedule, and freezing the money purchase pension plan.

Synovus has entered into salary continuation agreements with certain employees for past and future services which provide for current compensation in addition to salary in the form of deferred compensation payable at retirement or in the event of death, total disability, or termination of employment. The aggregate cost of these salary continuation plans and associated agreements is not material to the consolidated financial statements.

In December 2010, management amended the Synovus Retiree Medical Plan (the Retiree Medical Plan or the Plan). Under the provisions of the Retiree Medical Plan, employees who terminated employment after becoming eligible for early retirement (attaining age 50 with 15 or more years of service) could elect medical coverage for themselves and their eligible dependents. This coverage may continue until the former employee (or his spouse) reaches age 65 or cover eligible dependents in accordance with the Plan’s provision. Per the amendment, Synovus eliminated the post-retirement medical plan coverage for all employees who retired on or after March 1, 2011. Participants who were already receiving benefits under the Retiree Medical Plan will continue to receive benefits under the Plan. At December 31, 2012, the Retiree Medical Plan had93 participants.

The amendment to the Retiree Medical Plan noted above was considered a “curtailment event” under ASC 715 because it eliminated the accrual of defined benefits for all of the future services of a significant number of active employees. At the time of the Plan amendment, Synovus estimated the number of eligible participants that would elect coverage by the specified deadline of March 31, 2011 to calculate the $7.1 million curtailment gain that was recognized during 2010. Based on the actual number of retirees who elected medical coverage for themselves and/or their eligible dependents, the actual curtailment gain was $6.7 million which resulted in an adjustment of $398 thousand to the curtailment gain that was recorded during the year ended December 31, 2011.