401(k) Match

ddnicole

We will stop matching contributions to our 401(k) plan, I want to know has anyone else gone through this and does anyone have a general notification that they send out to employees?

6274086

We recently stopped ours as well.  We gave the 30 days notice to the employees in hard copy memos and were hand delivered to each deaprtment manager.  It was a very simple statement- "After much difficult deliberation, "company name" unfortunately must suspend the employer match on our company’s 401(k) plan.  This will become effective the first payroll in 2009.  We have been pleased to provide this benefit to our employees and hope to restore it in the future. If you have any questions, please feel free to contact me."

 I expected a large amount of negative feedback, but amazingly, didn't receive any.  At this stage of the game, most employees are happy to still have a job.

 

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6348386

Is the 30 notice compulsory, or just advisable?  Need an answer soon.

TXHRGuy

Where is HRforME when you need her?

6274086

I believe you are required to give reasonable notice which is defined as 30 to 90 days advance notice when you are going to stop the 401k match.  You need to call your retirment broker and/or account manager at your vendor. They can look at your plan document and give you a definate answer.

ssigman1

You are required to give them 30 days notice. THey must also have the opporutnity to discountinue / change their employee contribution amounts.   We just went thru this within the last week.  Our last payroll match will be May 29th.