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WSJ Reporter Kelly Greene on companies bringing back matching 401(k) plans, and why employees may have to kick in more money than before.
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As the 401K match back many companies are restoring 401K matching contributions drop in the height of the recession.
But some are requiring employees.
To kick in more of their own money to get the retirement benefit we're -- Wall Street Journal reporter Kelly Green.
Who wrote great piece on this exact thing today in the paper and great to have you -- I was reading -- this morning and here you are.
-- is -- companies are coming back they have to come back right this match but they're choosing to you why is that happening.
There's some pressure.
In the job market as particularly in high at least among highly skilled industries there -- industries that require highly skilled workers if you need engineers.
If you're in a city where there are a lot of plants that also compete for the same welders the same machinists.
Then you might have more pressured.
If you have a lot of white collar workers who have transferable skills who could start to look around.
Because the the maturity of companies did not.
Do away with their 401K benefits.
Says this is are not yet -- and this is a large minority were talking about it's significant there a lot of household names among these companies like UPS.
But but that's one of the reasons behind the restoration what they're doing but they're doing less than before they're not matching as much as they were before I mean -- there were some companies back twenty years ago that would match.
A 100%.
And 50% was kind of a -- -- right you're saying if that's changed Oprah might your -- and gather some companies there they're dipping their toe back and first they're putting a cap on how much they'll match this year.
And saying that as things if things improve more and then they will come back believe.
Or they are matching 50% at a higher.
Rape of the workers' savings they're trying to get people to put in more on their own and making Matt you know making the -- -- extend a little bit farther to try to get them to do it.
But that even when -- get -- at 50% now instead of a 100% they might that's it.
That you might get 2.5 percent of your pay total now from the company.
And verses 3% before and OK and just like to -- declines a little bit and yeah it is positive thing do you think.
Well it's a good thing but when the markets are going up it's a good thing when the markets are going down for a -- case that's while other companies pulled out in 2009 because they got nervous about the investments in there and that's -- they have a liability about the proper investment choices for the participants.
Kelly Green great piece today's Wall Street Journal.
It's always nice to -- as the building by the way things that are coming down.
