Thursday, October 30, 2008

News You Can Use: GM scraps 401(k) match, others likely to follow

Although a recent staff discussion at EBN headquarters questioned whether an automaker (with industry profits down more than 30% by some estimates) halting 401(k) contributions was a "big deal" -- since it comes as no surprise to our jaded ears -- here you have it:

General Motors last week announced it will freeze its 401(k) match in the company's ongoing effort to cut costs, and reports this week from Workforce Management show other large firms are likely to go the "monkey see, monkey do" route.

“We are in a very nasty situation that isn’t going to get better for some time and a lot of employers are going to be anxiously looking at how to reduce costs," Ted Benna, father of the 401(k) and knows of what he speaks, told the pub.

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