Private College in Georgia Cuts 403(b) Match

May 18, 2009 ( - Covenant College officials have announced that the college will institute layoffs and a pay freeze as its endowment suffered a 25% loss in the last year.

The Chattanoogan reports that the Presbyterian-affiliated college in Georgia has ceased making matching contributions to employees’ 403(b) retirement accounts. Any increase in health care premiums in the coming year will be borne by employees, the school said, according to the news report.

In addition, the school announced there will be no raises for any faculty or staff, except those minimal raises (less than 1% of salary) mandated by contract, and all senior administrators have taken a voluntary reduction in compensation.

“These adjustments are as distressing as they are necessary. It is important to us that in this process we are honoring all contracts,” said Covenant president Dr. Niel Nielson.