Private College in Georgia Cuts 403(b) Match

Covenant College in Georgia ceased making matching contributions to employees' 403(b) retirement accounts.

Officials also announced that the college will institute layoffs and a pay freeze as its endowment suffered a 25% loss in the last year, The Chattanoogan reported. Any increase in health care premiums in the coming year will be borne by employees, the school said.

In addition, the Presbyterian-affiliated college announced there will be no raises for any faculty or staff, except those minimal raises (less than 1% of salary) mandated by contract, and all senior administrators have taken a voluntary reduction in compensation.

“These adjustments are as distressing as they are necessary. It is important to us that in this process we are honoring all contracts,” said Covenant president Niel Nielson.