Trends in reducing 401K match during these difficult economic times

[Guest RalphHensley]

I'd be interested in knowing if any larger companies outside of the auto industry are eliminating or cutting back on 401K matches. Here in Michigan, we hear lots about the autos doing it, but not much more. We cannot find any good trend or market data , your help would be greatly appreciated.

[Guest JCatt]

There is some additional info at the following link:http://www.plansponsor.com/content/magazin...atchingMeltdown

If you're not a member of www.plansponsor.com you will probably have to register, which is free and quick. Most data I've seen is auto industry related, although this article uses Campbell's Soup as well. I'm sure we'll see more articles with the dawn of the new year.

Best wishes, Joe.

[GBurns]

Try a search on Benefits Buzz. There have been a few articles on the subject.

USA Today 12/1/2001 listed The University of Iowa, Visteon, U.S. News & World Report (the company), and Radiant Systems as companies making cuts.

Kiplinger also had an article in November.

[Guest dmj1998]

ralph - we changed our match formula a couple years ago so that there was a lower fixed portion (now 50% on the first 6%, was 66 2/3%) and a variable portion tied to the company's fiscal performance. it is a little more flexible than the campbell's scenario and the first couple of years resulted in higher overall ER contributions with the new formula. the last couple haven't been as good, but i think it works better than having to potentially announce a cut in any given year.