Grant Thornton report: Employers are slashing 401(k) matching programs – Triangle Business Journal:

The survey of U.S. companies foundr that 29 percent have already or intendto modify, the matchintg contribution feature in their 401(k) plans duringy the 2009 plan year. Two-thirds of those respondentxs – or about 20 percent of all respondentd – report they will eliminate thematch entirely. Sharonh Whittle, Grant Thornton's compensation and benefits leader forthe Carolinas, said in a written statement that the surveh revealed certain trends.
Companies in the healtg care and not-for-profit industries were less likelt to make changesduring 2009, while companieds in the technology, retail/tradwe and financial services/banking industries were generallyh more likely to make changes durinb 2009, she said. Larger employers were more likely to make changesdurinvg 2009. "Companies are expecting 2009 to continus to be a challenging year for business growth and financial stability," says Whittle. "The impact on 401(k) plan appears to be a greater consideration of andmore prudent, spending on matching contributionsx in order to address cash and profigt constraints.
” The survey was conductes in April, with 283 Grant Thornton U.S. clients Forty-three percent of the respondents are privatelyheld firms, while abouty 36 percent are for-profit, publicly tradexd companies. The remainder of the participantswere not-for-profit, ESOPs, partnerships, LLCs and others. Sixty-seven percent of the companiess in the survey had revenuebelow $500 while 33 percent of participantss posted revenue at or above $500 million.

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