Data & Research December 10, 2008

Akron Bank Cuts 401(k) Match, Stock Purchase Program

An Akron, Ohio-based bank has become the latest employer to drop its 401(k) match to save money—in this case to better deal with the slumping economy.
Reported by

A news report in the Akron Beacon Journal said FirstMerit Corp. told employees in a letter before Thanksgiving that the match will end as of January 1,when the company will also drop its employee stock purchase plan.

FirstMerit Chairman and CEO Paul G. Greig said in the employee letter, ”while FirstMerit has been performing well, we see a difficult economic environment ahead and are taking these steps to make sure that our company remains the strong company it is today,” according to the news report.

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Bank spokesman Rob Townsend told the newspaper that FirstMerit is not in financial difficulty, but knows the economy is in trouble. ”We know that this isn’t going to end tomorrow. Just to make sure we remain strong, we’re doing these things,” said Townsend.

He declined to describe the details of the soon-to-be suspended 401(k) match or the employee stock purchase plan as well as the bank’s resulting savings.

The regional bank has 2,614 employees.

Deals & People December 10, 2008

NYLIM Adds Two Consultants to West Coast

New York Life Retirement Plan Services, a division of New York Life Investment Management LLC, announced the expansion of its West coast presence with the hiring of two consultants.
Reported by

According to an announcement, the two new San Francisco-based consultants, Kay M. Fahlstrom and Tracey Hall, took up their roles at New York Life Retirement Plan Services in September and report to Katie Blake in the firm’s Westwood, Massachusetts, headquarters. Fahlstrom and Hall work with James Watts, executive relationship manager at New York Life Retirement Plan Services, who relocated to San Francisco in March to lead the new West Coast client service effort.

Fahlstrom was previously an education consultant and senior marketing manager at Schwab Corporate Services in San Francisco, and Hall served as a communications manager with Wells Capital Management, San Francisco, and a director of plan sponsor marketing communications with Fidelity Investments, NYLIM said.

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In addition, the firm announced it has now extended its participant call center hours from 8 a.m. to 10 p.m. ET (5 a.m. to 7 p.m. PT) to better support the needs of participants on the West coast.

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