401(k) match reductions

[Guest GSisson]

Is there a trend developing around the reduction of 401(k) match? Seems I've been reading about a number of large companies reducing their employer 401(k) match. Delphi is one of the companies that has done this. Is this purely a short term cost savings tactic that is preferable to position reductions or other more painful tactics? Or is this something unique to Delphi and others in the automotive industry? I'm very curious about the rationale behind a move like this given it's uneven impact on only those employees enrolled in the plan and because it seems like a pretty unusual step to take. Other's experience and perspective would be greatly appreciated. Maybe this is a much more common practice than I realize.

[MWeddell]

I do think that reducing (presumably temporarily) the match is more common in the automotive industry than in the rest of the economy because the automotive industry is so cyclical and because many of those companies still have a defined benefit pension plan so employees are receiving some level of retirement benefits from their employers. Here's an article on the topic: http://www.freep.com/money/business/delphi...i8_20010908.htm

[Kirk Maldonado]

There are some surveys on what benefits employers provide. I seem to recall that the Profit Sharing Council (or similarly named organization) prepared one recently.

[Guest UKH]

The link below will take you to the Profit Sharing Council Survey which Kirk Maldonado was referring to in his response.

http://www.psca.org/data/43rd.html