Data & Research December 8, 2008
403(b)s Also Lose the Match
The trend of suspending company match contributions to save money during the financial crisis has spread to 403(b) plan sponsors, as St. Peter’s Health Care Services announced it is suspending match contributions to its 403(b).
Reported by Rebecca Moore
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.