Dollar Thrifty Automotive Group, Inc. (DTG) will reinstate its 401(k) company match for employees in 2009. The rental car company will match employee contributions dollar-for-dollar up to 2 percent of pay beginning in January. The benefit was suspended earlier this year.
“While many companies are faced with economic uncertainty - and our own company certainly continues to see its share of headwinds - it is tough for companies and employees alike,” says Scott Thompson, president and CEO, in a statement. “It is important that employees be able to focus on their own future and that of their families. That's why the DTG board, at management's request, unanimously voted to reinstate the 401(k) match benefit for our employees."
The DTG employer contribution amount is slightly below average, but certainly better for employees than not having one at all. Employer deposits into 401(k) plans averaged 3.2 percent of pay in 2007, according to a survey of 1,011 plans by the Profit Sharing/401k Council of America. The most common 401(k) matching formula is 50 cents per dollar up to the first 6 percent of pay. An employee who makes $50,000 could get as much as $1,500 in employer matching funds with this formula. Under the new DTG formula the same employee would max out at $1,000 from their employer.
DTG reduced its workforce by approximately 400 employees this year, which is about 6 percent of its workers. The job cuts are expected to produce $15 million in annual savings in fiscal year 2009.
The Tulsa-based company also suspended its 401(k) match in 2002 “as part of its aggressive cost saving initiatives resulting from the September 11 tragedy and the ensuing impact on the travel industry”. The match was later reinstated.