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.
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’).