Seven out of 10 companies that have a company match for 401(k) plans maintained it during recent turbulent economic times, according to a new survey by the Profit Sharing/401k Council of America.
The survey, conducted in October, also found that seven out of 10 companies offering profit-sharing plans to employees also maintained contributions from 2008 to 2010.
Of the 412 companies offering 401(k) matches that were surveyed, 70.4% kept the match at the same rate since 2007. Another 9.2% either increased an existing match or instituted a match, the survey said.
The survey noted that 14.8% of the companies suspended the match. However, 39% of this group later restored the match.
The survey also said 5.6% of companies reduced their match during the reporting period, adding that 21% in this group restored the match.
Among 265 companies offering profit-sharing contributions, 70.2% kept the same contributions as in 2007. Another 3.4% raised or instituted a profit-sharing payment.
The survey said 10.6% of respondents suspended their profit-sharing contributions, but 22% of those restored the contributions.
Also, 15.8% reduced their profit-sharing payment during this period, while 16% in this group restored the contribution.
“Employers recognize that employees like these plans, and it makes good business sense to keep them,” David Wray, president of the council, said in an interview.