Has your company resumed matching employee contributions to your 401(k) plan? If not, you’re behind the curve.
According to consulting giant Towers Watson, 75% of companies that suspended the match have reinstated it.
Among those employers, about three in four (74%) reinstated the matching contributions to their previous level, while 23% of employers restored them at a lower rate.
Just 3% increased their matching contributions to a higher rate. The most frequent employer match formula before and after the suspension matched 50% of employees’ salary deferrals, up to 6% of pay.
The median duration for match suspensions was 12 months, Towers Watson said.
The analysis was based on 260 organizations of all sizes that suspended their matching contributions. The suspensions occurred from January 2008 through January 2010, though most (83%) occurred during the first half of 2009.
