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Taking Their Lump Sums

Companies that cut matching funds from retirement plans may be sowing seeds of discontent among employees.

July 10, 2009

Some say that eliminating matching contributions to 401(k) plans is a no-brainer. But that isn't necessarily true. The author of a new study on retirement benefits says companies that suspend or eliminate matching contributions to 401(k)s and other retirement plans may save money in the short term. However, finance chiefs may want to consider such cost-cutting measures in light of longer-term implications, particularly how corporate belt-tightening colors the thinking of former employees. Read more...

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