The Markets February 18, 2009

Michigan Firm Latest to Suspend 401(k) Match

A Jackson, Michigan-based electronics maker has become the latest to suspend its 401(k) match.
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Sparton Corp. CEO Cary Wood said in a news release that the firm was also freezing its defined benefit plan and that both actions would be effective April 1, 2009.

“We have taken these actions as necessary additional steps in the company’s return to profitability,” said Wood, in the release. “As many companies are doing during these difficult times, we are reviewing all avenues to reduce costs and stabilize our financial resources. We, therefore, made this decision after a significant amount of discussion. Our intention is to resume participation as appropriate as soon as it is financially prudent to do so.”

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According to news reports, Sparton cut its workforce earlier this month by 6%. The company received word from the New York Stock Exchange that it could remain on the exchange even though its market capitalization was below $75 million over a 30-day period.

Earlier this week brought similar announcements from the Atlanta Conventions & Visitors Bureau (see “Slumping Convention Business Cuts into 401(k) Match“) and Harrah’s Entertainment (see “Another Casino Operator Craps out on Match“).

Deals & People February 18, 2009

403(b) Administrator Adds Florida Providers to Network

U.S. Retirement Partners, a 403(b) benefits administrator, announced that it has acquired a Florida group to be part of its national network of providers serving the K-12 teacher market.
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According to a release, the latest acquisitions—JM & Associates, Michael A. Borgailo & Associates, Summerfield Financial, BRC Agency and Retirement Planning Associates—are Orlando, Florida-based firms that provide retirement planning services to educators throughout Florida. The firms are owned by Joe Avallone, Michael Borgailo and David Payne, all of whom the announcement said are veteran leaders in the 403(b) market.

“This group is the largest independent 403(b) specialist in Florida and one of the top five nationally,” said Robert C. Dughi, USRP executive chairman, in the release. He noted that the group has 100 advisers across Florida and provide services to almost every school district in the state.

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More information is available at www.usretirementpartners.com.

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