Word is J.P. Morgan Chase & Co. (NYSE:JPM) will delay matching contributions to 401(k) retirement plans for salaried employees until the end of the year and may reduce those payments.
"Workers making $50,000 to $250,000 annually will cease getting the
contributions every two weeks and may see the benefits adjusted to a
yet-to-be-decided amount. The dollar-to-dollar match for those earning less than $50,000 won't change," according to
Bloomberg.
It is just another compensation perk to get whacked at J.P. Morgan. The bank
slashed 2008 bonuses by 75% from 2007 levels.
J.P. Morgan probably isn't the only bank that will cut costs along these lines. In fact, cutting 401(k) matching benefits is popular in other industries. According to a survey by the
Spectrem Group, 34% of companies have reduced or eliminated their matching funds
to employee 401(k)s, and 29% plan to do so in the next 12
months.
- Maria Woehr
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