The Times Union in Albany, New York, reported that employees were handed a memo announcing the match suspension as they changed shifts at 3 p.m. Friday. The trend has been evident at some 401(k) sponsors across the country (see “More Companies Go Match-less’).
According to the Times Union, St. Peter’s said suspending the match contributions to the 403(b) plan will save $1 million. About 1,200 employees participate in the plan and the hospital matches contributions up to 1.25% of an employee’s salary.
The news report said the hospital has also made other cuts, including eliminating merit pay and cutting advertising, travel to conferences, overtime, and the use of temporary nurses.