Monday, July 26, 2010

Have You Restored The Match?

A common complaint of many employees is that rebounding corporate earnings haven't meant things are getting better for them, in part because many companies have elected to just hoard cash.

But FedEx Corp. on Monday sharply boosted its earnings outlook and also said it would put more money back into employees’ pockets: The company said it would fully restore matching contributions to workers’ 401(k) plans beginning Jan. 1, 2011.

FedEx suspended its 401(k) match on Feb. 1, 2009, in the depths of the recession, joining a long list of blue-chip firms that hacked pay or benefits to conserve cash.

FedEx’s move to restore its 401(k) match is part of a trend, although many workers may wonder what’s taking big companies so long. Of those large employers that had reduced or suspended matching contributions since September 2008, only half have since restored them, according to a spring survey by consulting firm Towers Watson.

But the survey also found that “virtually all [companies] indicated they are considering reinstating all or a portion within the next 12 months.”

We'll soon see which companies walk their talk . . .


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