US. Some companies are cutting 401(k) matches because of the coronavirus
Some companies hit hard by the coronavirus pandemic are suspending or reducing matching contributions to their employee retirement plans. Others are exploring their options.
Amtrak said an unprecedented loss of ridership and revenue has led the company to suspend its 401(k) match as a measure to “cut costs to minimize employee and service impacts,” according to Amtrak’s Kimberly Woods.
The Marriott International retirement savings plan matching contribution for 2019, initially planned for March 10, has been delayed to September 2020, according to a spokesman. “We are getting more inquiries from plan sponsors about what their options are,” according to Jerry Patterson, senior vice president of retirement and income solutions at Principal Financial Group. “And in some cases, we are seeing actual action taken to amend plans to reduce or suspend the match.
And we expect that, as this goes on, we’ll see more of that. It will come, I think in different degrees from sectors that are being impacted most severely.”
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