4:55 am January 18, 2011, by Henry Unger
It’s not just jobs that have been slow to come back during the economy’s spastic recovery from the Great Recession, writes AJC reporter Russell Grantham. About half of the U.S. companies that suspended contributions to their employees’ retirement savings after 2008 haven’t restored them yet.
About one in five employers with 401(k) plans cut or ditched their matching contributions during the 2007-2009 financial meltdown, according to a recently released report from compensation consulting firm Towers Watson. The cuts were particularly prevalent at firms in the retail, manufacturing, media, communications and technology industries, Grantham writes.
But, in a sign of potentially better times, most of the laggards say they expect to again start chipping in money within the next 12 months, according to Towers Watson.
The firm found that 46 percent of companies that earlier cut their 401(k) matching contributions have since restored at least part of them, and most of the rest planned to within a year, Grantham reports.
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- Henry Unger, The Biz Beat
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