GM last week became only the latest on a list of well-known companies trying to conserve cash to weather the downturn by halting 401(k) account matches.
Also among them are Goodyear, Frontier Airlines, commercial real estate firm Cushman & Wakefield, broadcast group Entercom and rental car agency Dollar Thrifty Automotive Group.
Employers typically match a portion of workers' contributions as a way of encouraging them to sock away money for their retirement and as an alternative to funding a pension plan.
Some 2% of 248 employers surveyed this month by human-resources firm Watson Wyatt indicated they have cut back on 401(k) matches as a way of coping with the sinking economy. Another 4% said they may join them in coming months.
Wednesday, October 29, 2008
More companies may end 401(k) match
The slumping economy is causing more companies to look at suspending company 401(k) matches.