Released: June 25, 2009

Companies rethink 401(k) contributions

Source: Sandra Block, USA Today

Most companies that have suspended contributions to employees’ 401(k) plans are expected to reinstate the match when the economy improves, but the match may be significantly different.

About a quarter of companies have either suspended their 401(k) plan match or are considering doing so because of the economic downturn, according to a recent survey by CFO Research Services and Charles Schwab. The list of companies that have suspended matches includes Hewlett-Packard, Sears Holdings, Starbucks and Eastman Kodak.

But some companies are considering changing the amount of the match, or the way it’s calculated, employee benefits analysts say.

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