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Could companies stop matching 401k contributions?
07-18-2008, 10:29 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,319
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Could companies stop matching 401k contributions?
Oh great...another unintended consequence.
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07-18-2008, 11:04 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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a lot of plans don't match anything already.
I've also seen a bunch that on top of not matching bill the participant's accounts for the admin fees.
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07-18-2008, 11:56 AM
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#3
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Full time employment: Posting here.
Join Date: Jan 2006
Location: Boston
Posts: 620
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No match here.
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07-18-2008, 12:00 PM
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#4
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Recycles dryer sheets
Join Date: May 2007
Posts: 216
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Wow. I didn't know there were companies that did not match at least something. I guess I should be glad my company 50/100 up to 10%.
__________________
"...I'm the kind of guy who if he can't have too much of a thing doesn't want any at all."
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07-18-2008, 12:02 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 2,020
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100% to 6% + around another 1.5% lump sum every year because they love us... then again, they can afford to do that because of the line of business we're in.
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07-18-2008, 06:46 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
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This was the first thing my former company cut out earlier this year when business went quiet.
__________________
I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
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07-18-2008, 06:52 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,499
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After fighting with my boss for years he finally gave in and offered us a SEPP.
He didn't contribute a dime, cheapskate!
I'm glad that's all over with.
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07-18-2008, 06:56 PM
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#8
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Full time employment: Posting here.
Join Date: Jan 2006
Posts: 899
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 Quote:
Originally Posted by GatorBuzz
Wow. I didn't know there were companies that did not match at least something. I guess I should be glad my company 50/100 up to 10%.
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My experience is that Silicon Valley startups put a 401k in place when they reach a couple of dozen employees but don't start matching until they are profitable. Of course many fail before that happens.
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07-18-2008, 07:39 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,657
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50% match up to 6%. Recently added it. Before there was no match. A friend works for a company that used to match and then stopped. They gave notice that the plan was changing next quarter, but nothing anyone could do. It's a benefit and companies can change those as they will.
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07-18-2008, 07:51 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 3,966
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I get .50/1.00 for first 2% and .25/1.00 for next 6%. Total max of 2.5%. That's the worst of anyone I personaly know but it could be worse. After they dropped the pension plan in '07, they also included a 3-5%(depending on profit) annual payment to 401K as a replacement to the traditional pension, as long as you contribute at least 3% every pay period.
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07-18-2008, 08:00 PM
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#11
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Full time employment: Posting here.
Join Date: Apr 2008
Posts: 702
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No match but can't complain, I only work 18 hours/wk and employer pays full health/dental/vacation & sick time.
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07-18-2008, 08:18 PM
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#12
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Full time employment: Posting here.
Join Date: Mar 2007
Posts: 577
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No match but we still have a traditional pension.
__________________
I highjacked a rainbow and crashed into a pot of gold - Bon Jovi
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07-18-2008, 09:00 PM
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#13
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Moderator
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,475
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For what it's worth, 100% of the first 5%.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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07-18-2008, 10:43 PM
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#14
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Recycles dryer sheets
Join Date: Jun 2008
Posts: 94
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66% of the first 6% plus a small company performance based lump sum. I'll take it. Plus bonus. Plus a nice employee stock purchase program.
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07-18-2008, 11:01 PM
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#15
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,742
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Bigmediaco used to match 25% of the first 4%--stopped doing that. BMC used to put 10 percent of salary at end of year in profit sharing/401K. Stopped doing that. BMC also charges all fees against the 401K's balance, including the extra $3.67 to move $55,000 from one fund to another last week....
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07-18-2008, 11:09 PM
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#16
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,248
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75% match up to 6% (they pay 4%). Nothing to write home about.
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07-18-2008, 11:43 PM
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#17
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Recycles dryer sheets
Join Date: May 2008
Posts: 350
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Many of my family and friends are losing their matching funds and paying more for their health benefits at work. Something to compute when we here phony reports about rising wages from the gov't.
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07-18-2008, 11:50 PM
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#18
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,248
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What my mega-corp has done is to continually "grandfather" benefits. I missed out on the best benefits, and there have been two "downgrades" since then. What's funny is they always offer the "new" plan to existing employees. I think they do that just to make new employees feel better, like there might be some weird scenario where cutting matching and pension amounts works out to your advantage.
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07-19-2008, 04:03 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,310
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My husband works for the State of Delaware. They have contributed $10 per two week pay period until this month. They just announced they can't afford the $260/employee per year and will no longer give him the $10/pay period for his 401K. Last year they raised the employee share of the healthcare and they have turned the retiree healthcare into a Medicare advantage with BC/BS. He retires next year so, after he found out that he was losing his $10 windfall, he came home and laughed. Myself, I was disappointed as I have always considered the $10 as my market play money and used it, within the constraints of his Fidelity plan, to have fun with risky investing.
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07-19-2008, 05:10 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Quote:
Originally Posted by laurencewill
75% match up to 6% (they pay 4%). Nothing to write home about.
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unless you're in a plan than gets no match at all
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