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Benefits January 5, 2009
NCR Reduces 401(k) Match
January 5, 2009 (PLANSPONSOR.com) - An unconfirmed
memo by NCR Corp.'s CEO says effective immediately the
company will reduce its employer match for 401(k) plan
participants.
Reported by Rebecca Moore
According to the Dayton (Ohio) Business Journal, CEO Bill Nuti said in a December 29 memo to employees: “Whatever the newsmakers choose to name it, the current economic situation and macro 2009 outlook remain challenging.” NCR spokesperson Alan Ulman told the Business Journal the company does not comment on internal memos and he would not verify it.
The news report claims the company also will cancel a $5 million travel program given annually to employees who win achievement awards. Nuti said in the memo that all international benefit plans, such as pension plans and retirement plans, are under review and he expects another announcement this month about them.
According to the news report, in late November, Nuti made a similar announcement that included canceling holiday parties and business travel and eliminating merit pay raises for employees, including executives.
NCR froze its defined benefit pension plan as of December 31, 2006, and announced it was increasing its 401(k) match to 100% of the first 4% of participant deferrals and 50% of the next 2% of deferrals (see NCR Announces Pension Freeze ).
A number of companies have announced either reductions in or suspension of 401(k) matching contributions to cut expenses during the economic downturn (see GateHouse Media Discontinues 401(k) Match ).