Eastman Kodak Company today joined General Motors Corp., Ford Motor Co., real estate firm Cushman & Wakefield, and Frontier Airlines in suspending its 401(k) match for employees. The employer matching contribution will be temporarily axed for 2009. The camera company also announced that executives will not receive a salary increase next year.
“There is an unprecedented amount of uncertainty surrounding the economic environment and most signs indicate that we may be facing a prolonged global recession,” said Antonio Perez, Kodak chairman and CEO, in a statement. The slowdown in consumer spending and tight credit markets that are making it difficult for Kodak's business customers to finance new equipment played a role in the decision, the company said.
These cuts for current workers follow reductions is retiree benefits announced in August, such as no longer paying for dental coverage or life insurance, shifting more health insurance premium costs to retirees, and phasing out employer-paid medical coverage for dependents over 10 years.
Luckily, companies that cut 401(k) matches under financial duress often bring them back when their outlook improves. But until then, here’s a look at the 10 benefits your employer is likely to slash next year.