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The Markets November 4, 2008
Tightening Economy Squeezes 401(k) Match Suspensions
A New York-based commercial real-estate broker and a Pennsylvania broadcasting company are the two latest employers to cease their 401(k) matching contributions as part of belt-tightening efforts.
Reported by Fred Schneyer
Real-estate firm Cushman & Wakefield told employees earlier this month that it planned to halt merit raises and suspend its match, according to a Washington Post report.
Meanwhile, a Boston Herald news report said that Bala Cynwd, Pennsylvania-based Entercom made a similar announcement in recent days about its match.
In both cases, the moves were made as part of a variety of budget cutting efforts, carried out at least in part because of the continuing weak economy, according to executives.
Tulsa-based Dollar Thrifty Automotive Group cut its match in January and a bankrupt Frontier Airlines made the move last year.
General Motors recently generated a good deal of publicity when it suspended its 401(k) matches for 32,000 eligible white-collar employees—the second time this decade it has suspended its retirement contribution (see Benefits Cuts Next on GM Agenda).