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Sears Will Suspend 401(k) Match
Tweet Share on Facebook January 7, 2009 Comment (2)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.
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Patty Duke Plays Cathy and Patty Lane Again at Age 62
Tweet Share on Facebook January 6, 2009 Comment (5)Actress Patty Duke reprises her role as look-alike cousins Cathy and Patty Lane in the 1960's sitcom The Patty Duke Show in a new commercial encouraging baby boomers to sign up online for Social Security.
Here’s the 1965 show opening.
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The 10 Largest Terminated Pension Plans
Tweet Share on Facebook January 5, 2009 Comment (9)Private-sector pensions are insured by the federal government. Benefits are paid out to workers by the Pension Benefit Guaranty Corp. (PBGC) if the retirement plan or the company fails. But just 10 firms account for 62 percent of all claims on PBGC insurance between 1975 and 2007. Airlines and steel companies dominate the list. The top 10 firms:
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The New World’s Oldest Person is 114
Tweet Share on Facebook January 5, 2009 Comment (7)Gertrude Baines, 114, is likely to become the new world’s oldest woman, Guinness World Records announced over the weekend. The Los Angeles woman was born April 6, 1894.
The title was previously held by Maria de Jesus, a Portugal native who recently passed away at age 115, and Edna Parker of Indiana, who also lived to be 115.
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Over 1000 Companies Have Recently Eliminated Employee Pensions
Tweet Share on Facebook January 2, 2009 Comment (30)It's not suprising that financially distressed companies often cut retirement benefits. But many employers are eliminating pensions for workers, even when they have the money to pay out benefits. In fiscal year 2007, 1,225 employers voluntarily ended their pension plans with assets sufficient to disburse all benefits earned to workers, according to data released this week by the U.S. Pension Benefit Guaranty Corp. (PBGC), a government agency that insures private-sector pension plans.
The primary reasons companies gave the PBGC for ditching their pension plans were restructuring benefits (31 percent), benefits too costly (19 percent), adverse business conditions (14 percent), administration too costly (10 percent), sale of a company or component (8 percent), liquidations ( 5 percent), or other reasons (14 percent).
