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

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.

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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’).


The Markets March 11, 2009

Utah County Cuts 401(k) Contribution

As part of a cost-cutting plan, Utah County has suspended contributions to employee 401(k) accounts.
Reported by

As part of the plan, the county’s 3% contribution to employee 401(k) plans will be temporarily suspended effective March 31 through December 31, 2010. According to a press release, this reduction was chosen instead of furloughs, layoffs or reductions in salary.

In addition to the cuts, Salt Lake County Mayor Peter Corroon presented an interim budget plan to the Salt Lake County Council that reduces spending, freezes wages, and extends the county hiring freeze.

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