Hewitt Associates, Lincolnshire, Ill., will terminate a global profit-sharing program on Sept. 30, the end of the firm's fiscal year, said spokeswoman Kelly Zitlow. She said the firm did not make a profit-sharing contribution for the year ended Sept. 30, 2004, and it has not yet been determined if the company will make one this year.
Ms. Zitlow said terminating the profit-sharing program is part of a "broader initiative" to increase profitability and improve efficiency. Company officials expect benefit changes will save the firm about $45 million annually.
Hewitt will match the first 4% of an employee's contribution to the firm's $1.3 billion 401(k) plan, up from 2%, effective Jan. 1. The plan offers 10 investment options, Ms. Zitlow said.