Cincinnati Bell Inc. is suspending its 401(k) plan match for salaried and other non-union employees beginning next month.
Prior to the suspension, which will continue through the end of the year, Cincinnati Bell had been matching 100% of salary deferrals up to the first 3% of pay, and 50% of deferrals on the next 2% of pay.
“We continue to be concerned about the overall impact of the economy on our business and are moving aggressively to reduce expense, maintain profitability and generate cash flow,” Gary Wojtaszek, Cincinnati Bell CFO, said in a news release attached to the company’s first-quarter earnings report.
Earlier this year, the company announced the phaseout of its defined benefit pension plan.
Under the first stage of the DB phaseout, employees who were younger than age 50 as of Jan. 1 stopped accruing benefits as of March 28. In the second stage, employees who were age 50 and older as of Jan. 1 will stop earning pension plan credits after Dec. 31, 2018.
According to Money Market Directory, the company had $455.2 million in its DB plan and $246 million in its 401(k) plan as of Dec. 31, 2007.
Jerry Geisel is the editor-at-large at Business Insurance, a sister publication of Pensions & Investments.
