United Parcel Service reinstated its 401(k) match

June 14, 2011

Retirement Plans Make Comeback, With Limits

By KELLY GREENE

Many U.S. companies that during the recession cut 401(k) matching contributions—one of the most valuable employee benefits—are beginning to restore them.

But a number of firms are contributing less than before, are linking contributions to profits or are making workers save more on their own before kicking in, say benefits consultants.

United Parcel Service reinstated its 401(k) match in January after having suspended it in 2009. But the delivery giant changed the way it doles out the benefit: Instead of matching what employees defer up to 3% of eligible pay, UPS will now match half of what they defer, up to 5%. Its top contribution is now 2.5% of pay, compared with 3% in 2008.

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