Cardinal Health Inc., Dublin, Ohio, changed the matching formula for its 401(k) plan to increase employer contributions, the company disclosed in its 11-K filing with the SEC on Thursday.
The health-care company will now match 200% of participant contributions up to 1% of pay, 100% between 1% and 2%, and 50% of contributions between 2% and 5%. The change was effective Jan. 1.
The previous formula was 100% matching contributions for participant contributions up to 3% of pay and 50% between 3% and 5% of pay.
It slightly increases the employer contribution. For a participant with a hypothetical $50,000 annual salary, the employer contribution would rise to a maximum $2,250 with the new formula compared to $2,000 with the old formula.
The company did not provide a reason for the change. As of Dec. 31, the Cardinal Health 401(k) Savings Plan had $3.2 billion in assets. During the year, company contributions totaled $5.9 million and participant contributions totaled $4.1 million.
Cardinal Health officials could not be immediately reached to provide further information.