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The Markets June 26, 2009
Lincoln Airport Authority Trims New Hire 401(k) Match
At a time when employers changing their 401(k) match typically focus on their existing workforce, one Nebraska employer has trimmed its match for new hires only.
Reported by Fred Schneyer
The Lincoln Journal Star reported that the Lincoln Airport Authority made the move on Thursday for employees hired after August 1. According to the newspaper, new hires will receive a 1-to-1 match up to 6% of their salaries, compared to the current 2-to-1 match on the same amount.
The airport has only a few dozen employees and spends about $200,000 a year on 401(k) matching funds.
Airport Authority board member John Hoppe Jr. said the goal is to have the Airport Authority act “a bit more like the private sector.” Another goal is to set an example for other governments considering a similar change, especially the city of Lincoln, he said.
“I thought maybe if we got started, we’d be out front on it,” Hoppe said in the news report.