General Motors Corp., Detroit, is temporarily freezing contributions to its $20.3 billion 401(k) plan beginning Jan. 1, said Robert Herta, spokesman.
GM will suspend its 401(k) match, currently 20 cents for each $1 up to 6% of pay, Mr. Herta said. The company had already cut its contribution to 20 cents from 50 cents in April. "This is a temporary situation, and we will monitor the business outlook to determine when to reinstate the match," he said.
GM is also no longer requiring 401(k) participants to invest in its common stock fund. "We're always looking at how we can improve flexibility for employees," he said.
The plan is administered by Fidelity Investments and offers 68 investment options. Mr. Herta declined to say if GM has plans to alter the investment lineup.