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Defined Contribution

Cardinal Health revises 401(k) matching contribution formula

Cardinal Health Inc., Dublin, Ohio, changed the matching formula for its 401(k) plan to increase employer contributions, the company disclosed in its 11-K filing with the SEC on Thursday.

The health-care company will now match 200% of participant contributions up to 1% of pay, 100% between 1% and 2%, and 50% of contributions between 2% and 5%. The change was effective Jan. 1.

The previous formula was 100% matching contributions for participant contributions up to 3% of pay and 50% between 3% and 5% of pay.

It slightly increases the employer contribution. For a participant with a hypothetical $50,000 annual salary, the employer contribution would rise to a maximum $2,250 with the new formula compared to $2,000 with the old formula.

The company did not provide a reason for the change. As of Dec. 31, the Cardinal Health 401(k) Savings Plan had $3.2 billion in assets. During the year, company contributions totaled $5.9 million and participant contributions totaled $4.1 million.

Cardinal Health officials could not be immediately reached to provide further information.