Hewlett Packard Enterprise Co., San Jose, Calif., is suspending the matching contribution of its 401(k) plan for six months beginning July 1, according to the company’s 11-K filing Thursday with the SEC.
The matching contribution equals 100% of the first 4% of participants’ eligible compensation, according to the filing. The suspension will go through Dec. 31. Also, the company’s “true-up” contribution at the end of the year will reflect eligible earnings and participant contributions only for the period of Jan. 1 through June 30.
HP Enterprise's “true-up” contribution is “an amount equal to the difference between 100% of the first 4% of eligible compensation a participant contributed during a plan year and the sum of company matching contributions contributed on behalf of such participant during the calendar year,” according to the filing.
The temporary suspension is “part of a set of short-term actions to address near-term uncertainty, reduce operating expenses and protect our financial profile,” spokeswoman Katherine Ducker said in an email.
Numerous plans in recent months have suspended matching contributions due to the economic impact of the COVID-19 pandemic.
As of Dec. 31, the Hewlett Packard Enterprise 401(k) Plan had $8.5 billion in assets, according to the new 11-K filing.