United Parcel Service Inc., Atlanta, suspended its matching contribution to its 401(k) plan for management and other non-union employees, confirmed spokeswoman Donna Barrett.
The company matched 100% of employees’ salary deferrals up to the first 3% of pay.
Ms. Barrett could not say how much money the company expected to save with the suspension. UPS had $8.47 billion in defined contribution assets as of Sept. 30, according to Pensions & Investments.
“The severe decline in economic activity around the world resulted in sharply lower package and freight volumes for UPS,” Scott Davis, chairman and CEO, said in an earnings release. “Consequently, we’re making the tough decisions necessary to adapt our enterprise to today’s realities. This includes changes in organizational structure, compensation and network configuration.”
