Zep Inc., Atlanta, is restoring a portion of its 401(k) plan matching contribution that it had suspended in January.
“We told our employees back in January that we would reinstate it as soon as it was economically feasible to do so,” Mark Bachmann, the cleaning supply company's executive vice president and CFO, said in an interview. Since then, “we have taken enough costs out of the business that we feel we can return the benefit to our employees.”
In January, the company suspended its 401(k) plan contribution, in which it had matched 50% of employees' salary deferrals, up to 6% of salary. Starting this month, half of that contribution —25 cents on each dollar deferred by employees, up to a maximum of 6% of salary — will be restored. If the company continues to do well financially, the remainder will be restored next January, Mr. Bachmann said.
The plan had $126 million in assets as of Dec. 31, according to an SEC filing.
Joanne Wojcik is a senior editor at Business Insurance, a sister publication of Pensions & Investments