Employers are quietly pausing 401(k) matches again. The last time this happened was the 2008 recession and Covid
TTEC has paused its 401(k) matches for US employees, a move reminiscent of past economic downturns. The company plans to resume its 3% match if business performance allows. This trend of pausing retirement matches has been observed during previous recessions and economic uncertainties.
- ▪TTEC's pause on 401(k) matches will last for nine months.
- ▪The company hopes to resume matching contributions based on business performance.
- ▪Pauses in 401(k) matching have increased during economic downturns, including the 2001 and 2008 recessions.
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Could the beloved 401(k) match be next on the benefits chopping block?Recommended Video That looks to be the case for at least one technology services and outsourcing firm. TTEC recently paused 401(k) matches for its US-based employees, Business Insider reported on May 8. The company, which is headquartered in Austin, has about 16,000 staff in the US. TTEC’s chief people officer, Laura Butler, said in an April 30 memo that the pause would last nine months, and that the company hopes to resume its 3% match “if our business performance supports it.” Employers often make changes to their retirement plan contributions during periods of economic strain or uncertainty, sources told HR Brew. And while many ultimately resume their match, they don’t always do so at the same level.
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