Another reason to lift Social Security limits...Companies stopping 401k match

[Peacetrain]

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Companies eager to conserve cash are trimming their contributions to their workers’ 401(k) retirement plans, putting a new strain on America’s tattered safety net at the very moment when many workers are watching their accounts plummet along with the stock market.


When the FedEx Corporation slimmed down its pension plan last year, it softened the blow by offering workers enriched 401(k) contributions to make up for the pension benefits some would lose. But last week, with Americans sending fewer parcels and FedEx’s revenue growth at a standstill, the company said it would suspend all of its contributions for at least a year.

“We will have to work more years and retire with less money,” said Lee Higham, a 44-year-old senior aircraft mechanic at FedEx, who has worked there for 20 years. “That’s what we are up against now.”

FedEx is not the only one. Eastman Kodak, Motorola, General Motors and Resorts International are among the companies that have cut matching contributions to their plans since September, when the credit markets froze and companies began looking urgently for cash. More companies are expected to suspend their

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This is from December 2008 New York Times.. I heard a blip this AM on tv and did not realize companies like this were stopping their 401K match. If there was ever a time to ensure that social security continues, it is stories like this.

Can you imagine where we would be if even 10% of our Social Security money had been put into the markets on an individual basis.

I hope (and I think) they will lift the caps to above 200,000 and that will give us security for at least another 50 to 75 years, and actually give us more equity and bond backing to keep us in the black as it were on the international markets

After all, what is the United States, is nothing but it citizenry and land.. we are the CEO's as it were of our own destiny.

Whew, glad to finally have some adults and far reaching thinkers in the seats of power.

[Ganja Ninja]

1. We've stop our 401 K matching here where I work.

Dropped it last month.

[Peacetrain]

4. ouch...sorry to hear that..

I have match, in an annuity system.. if my employer dropped their part, oh boy, I hate to think how that would impact my retirement. Hopefully they will reinstate it soon

[lumberjack_jeff]

2. The reason that companies had a 401k match was because of "top heavy" rules.

Contributions from the executives were capped if the rank and file weren't using the plan.

Bush repealed that, naturally. I'm surprised that any companies still offer a 401k match.

[slackmaster]

3. My employer hasn't done that yet

If they do, I won't be surprised.