The impact of the NFL lockout is running deeper than a lot of people would’ve thought when it was first instituted. It’s even starting to make noise in the Benefits world.
The Buffalo Bills just announced that they have stopped paying into their employees’ 401(k) plans as a result of the lockout. The freeze could last the rest of the year.
The Bills’ organization released a statement saying that its employees were informed before the news went public.
Russ Brandon, the Bills’ chief executive officer, said the organization will reinstate the 401(k) when the team’s financial performance improves — most likely meaning sometime after the lockout’s lifted and a new football season kicks off.
According to reports, the Bills had already announced in March that in lieu of layoffs, team employees would take a pay cut during the NFL’s work stoppage. The team called the cuts “shared sacrifice.”
Larry Kennan, executive director of the NFL Coaches Association, says this is the first team he’s heard of that’s suspended payments to employees’ 401(k)s.
