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The Markets March 11, 2009
Ohio Company Joins List of Those Cutting Match
Ashtabula, Ohio-based Molded Fiber Glass Companies has discontinued its 401(k) match.
Reported by Rebecca Moore
Larry Davis, vice president of human resources, said the company suspended the match, effective this past week, due to the effect of the economic downturn on business, according to a report on insurancenewsnet.com. Davis said two industries the company serves that were hit hardest by the downturn are the automotive and heavy truck businesses.
Molded Fiber Glass had provided a 100% match for the first 4% that employees contribute to the company’s 401(k) plan, followed by a 50% match for the next 2% contributed, the news report said. The plan has roughly $25 million in assets and 1,600 plan participants.
Davis said the company plans to reinstate the match in the future.
Molded Fiber Glass Companies joins a growing list of firms suspending or reducing their match as a result of the economic downturn (see “What to Consider Before Cutting the Match’ and “IMHO: “Passing’ on the Ammunition’).