Why did some employers suspend their 401(k) match?

Munnell, Alicia Haydock, and Laura Quinby. “Why did some employers suspend their 401(k) match?”. Issue in Brief 10-2, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, February 2010. http://hdl.handle.net/2345/bc-ir:104243.
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Abstract

The brief's key findings are: (1) During 2008-09, over 200 employers suspended their 401(k) matches, affecting 5 percent of active 401(k) participants. (2) Liquidity constraints rather than profitability concerns appear to be the reason. (3) Some large employers that suspended their match have since reinstated it. (4) If the others follow suit, the temporary suspensions may cause little harm for employees – particularly given the alternatives of salary cuts or layoffs.

Title
Why did some employers suspend their 401(k) match?
Author
Munnell, Alicia Haydock
Quinby, Laura
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
February 2010
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
10-2
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104243
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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