Yet another company is halting its contributions to employee retirement accounts. Sears will suspend the company match to its 401(k) plan on January 31.
A memo to Sears employees from Bruce Johnson, interim CEO and president, obtained and published by the Chicago Sun-Times says:
“As we continue to look for ways to control expenses, this change is expected to provide significant savings to the company during the 2009 fiscal year. This change will remain in effect until our financial performance improves to a level adequate to support reinstating the match benefit.”
Hoffman Estates, Ill.-based Sears currently matches $1 or every $1 for the first 3 percent of an employee's 401(k) contribution, and 50 cents for each $1 saved up to the next 2 percent of pay.
To see a company that isn’t cutting its 401(k) match, click here.