The Markets January 29, 2009

Reader’s Digest ‘Recession Plan’ Includes Match Suspension

The Reader's Digest Association, Inc., has informed employees that it will adopt a global ‘Recession Plan,' including the suspension of company matching contributions to its U.S. 401(k) plan.
Reported by

Other cost-savings measures in the plan include a reduction of approximately 8% of its current global workforce and unpaid time off for employees in both Fiscal 2009 and 2010 where permitted by laws and agreements, according to a news release.

Reader’s Digest cited a drop in consumer spending and magazine advertising in most markets in which it operates as reasons for the move.

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“We have announced a comprehensive ‘Recession Plan,’ which is our internal roadmap for dealing with the extraordinary effects of this recession on consumer spending. We hope and expect that most of these moves will be temporary and that the company will soon resume the progress it made in Fiscal 2008, when we achieved success in our three-part program to launch growth initiatives, reduce costs and transform the company culture,” said Mary Berner, president and CEO, in the release.

Several media companies have also announced benefits cuts to address the hard economic times (see “Newspaper Company Suspends 401(k) Match, Profit-Sharing Contributions’).

Products January 29, 2009

Hartford Shows Advisers How to Use Form 5500

The Hartford Financial Services Group, Inc., has launched a new educational campaign to help financial advisers review retirement plan clients' needs, improve plan designs, and enhance employee participation.
Reported by

The campaign demonstrates to financial advisers how to use clients’ Form 5500 to help them identify potential problems with their 401(k) plans, according to a press release. As part of the campaign, The Hartford created a brochure that takes advisers through each step necessary to complete Form 5500 and provides tips for improving existing plans, enhancing service, and educating participants.

Contact information is included so advisers can get assistance with customized prospecting reports, review Form 5500 filings with the Internal Revenue Service, and schedule a meeting with one of The Hartford’s 94 retirement sales directors.

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The Form 5500 must be filed annually by employers to record operational and financial information about their 401(k) plan, including data about employee contributions, participation levels, and how assets within the plan are invested.

More information is available at

More information is available at www.thehartford.com.

 

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