Benefits

Slumping Convention Business Cuts Into 401(k) Match

February 17, 2009 (PLANSPONSOR.com) - Atlanta Convention & Visitors Bureau announced Friday it will cut contributions to employee 401(k) and profit sharing plans for the year to make up for an expected $600,000 shortfall of revenue caused by slumping hotel occupancy.
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No job cuts or furloughs are being made at this time, ACVB President and CEO William Pate said, but personnel cuts are possible if the economy and hotel/motel tax collections continue to decline, according to the Atlanta Business Chronicle.

Pate said the bureau expects to save $400,000 this year by ending its matching contributions to employee retirement and profit sharing plans, according to the report. Pate informed ACVB’s 74 employees of the changes in a Friday afternoon staff meeting, according to the Atlanta Journal-Constitution. .

The bureau, which is charged with selling Atlanta globally as a business and leisure travel destination, said the cuts will not affect its programming capacity. Hospitality is an $11.4 billion economy driver for Atlanta, responsible for about 230,000 jobs.

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