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Benefits November 3, 2008
Tightening Economy Drives More 401(k) Match Suspensions
November 3, 2008 (PLANSPONSOR.com) - A New
York-based commercial real-estate broker and a Pennsylvania
broadcasting company are the two latest employers to cease
their 401(k) matching contributions as part of
belt-tightening efforts.
Reported by Fred Schneyer
Real-estate firm Cushman & Wakefield, told employees earlier this month that it planned to halt merit raises and suspend its match, according to a Washington Post report.
Meanwhile, a Boston Herald news report said that Bala Cynwd, Pennsylvania-basedEntercom made a similar announcement in recent days about its match.
In both cases, the moves were made as part of a variety of budget cutting efforts, carried out at least in part because of the continuing weak economy, according to executives.
Tulsa-based Dollar Thrifty Automotive Group cut its match in January and a bankrupt Frontier Airlines made the move last year.
General Motors recently generated a good deal of publicity when it suspended its 401(k) matches for32,000 eligible white-collar employees – the second time this decade it has suspended its retirement contribution (See Benefits Cuts Next on GM Agenda ).