Released: October 29, 2008

More companies may end 401(k) match

Source: Chris Woodyard, USA Today

As the economic slump deepens, more companies are expected to join General Motors in suspending matches of contributions to their employees’ 401(k) retirement accounts.

GM last week became only the latest on a list of well-known companies trying to conserve cash to weather the downturn by halting 401(k) account matches.

Also among them are Goodyear, Frontier Airlines, commercial real estate firm Cushman & Wakefield, broadcast group Entercom and rental car agency Dollar Thrifty Automotive Group.

Employers typically match a portion of workers’ contributions as a way of encouraging them to sock away money for their retirement and as an alternative to funding a pension plan.

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