Company Match Hits the Skids at GM

December 14, 2001 ( - In a move that will affect over 40,000 retirement plan participants, General Motors Corp (GM) will slash its matching contribution to 401(k) retirement plan for the second time this year.

The auto maker currently contributes 60 cents in company stock for up to 6% of an employee’s salary for every dollar an employee puts into a 401(k) account.

But in the new year, the group will cut the match to 20 cents on the dollar, according to a report by the Associated Press. Earlier in the year, GM cut the match to 60 cents from 80 cents.

According to the report, the decision could be revisited in the future depending on economic and financial conditions.

The recession having taken a heavy toll on the auto sector, Ford Motor Co, DaimlerChrysler AG’s Chrysler Group, Delphi Automotive Systems Corp. and Visteon Corp have taken similar cost cutting actions this year.