Is There Talk of Trimming Matches?

You may have missed the headlines, but in recent weeks a couple of employers have announced the suspension of their 401(k) matches.  Are any of your plan sponsor clients/prospects discussing reducing or suspending their match?
 
While there appears to be some debate as to whether we’re in a traditional recession or not – regardless, and certainly in some industries, it’s clear that we’re not quite back to “normal.”  In previous recessions – certainly post the tech “bubble” in 2003[i] and during the wake of the so-called “great recession” of 2007-08, some employers did[ii] – briefly – reduce and/or suspend their matches (among other cost-cutting measures).  And as noted above, a quick internet search does turn up a couple (see loanDepot suspends 401(k) match for employees while boosting exec pay, Gannett asks employees for unpaid leave, suspends 401(k) match, and more) – though only a couple.
 
This week, we’re curious if you’re hearing any of those “rumblings” in your meetings with plan sponsors – or if, as it seems right now – these are just isolated reports.

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1. Have you heard of any plans suspending or cutting their 401(k)/403(b) match for next year?

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2. Have any of the plans you work with cut or suspended their 401(k) match for next year?

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3. Are any of the plans you work with planning to increase their 401(k) match for next year?

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4. Other comments about company matches, changes in company matches, talk about changes in company matches, or life in general?

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5. What is your role working with retirement plans?

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6. What size plans do you PRIMARILY work with?

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7. Suggestions for future survey questions?  Seriously - what would you like to know about/from your fellow NAPA-Net readers?  Or what would you like to be asked?

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8. All responses are confidential, of course - but just in case you would like a response - or want me to know you responded - or just want to say hi - here's your chance to do so (don't forget your email)!

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