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The Markets June 26, 2009
N.C. County Suspends 401(k) Match
Cumberland County, North Carolina, government workers will not get employer contributions to their 401(k) retirement accounts starting July 1.
Reported by Rebecca Moore
According to the Fayetteville Observer, in a memorandum to employees this week, County Manager James Martin said the indefinite suspension of the contributions is being made with the hope that it will “mitigate more severe budget reductions” later. The move is projected to save about $650,000.
County Attorney Grainger Barrett said the money will be held in escrow in case it is needed to help make up budget shortfalls during the fiscal year, and if it goes unused, the money will be put into employee accounts next summer, the newspaper reported.
County commissioners have approved longevity pay increases only for veteran employees next year, and Martin has ordered travel, training, vehicle purchases, hiring and other expenditures to be delayed, or curtailed.