Almost 50 percent of employers cutting back 401(k) plans
About 23 percent of employers eliminated matching contributions to 401(k)s, and another quarter limited enrollment rather than open the retirement savings plans to all employees, according to a study conducted for Charles Schwab (SCHW) by CFO Research Services. The cuts started last September to save money as the economy headed south.
Most companies do indicate that the cuts are temporary. "Most view that as a temporary step. They don't see that as a long-term approach," Steve Anderson, who heads Retirement Plan Services at Charles Schwab, told Reuters.