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Thursday, October 14, 2010

Journal to resume matching employee contributions to the 401(k) plan

Journal Broadcast Group

Like many other companies, Milwaukee-based Journal Communications suspended its employer match as the economy worsened. That was in February 2009. Now Journal says that beginning January 1, 2011, there will be an “enhanced” match, as part of a move away from defined benefit retirement plans toward 401(k) plans. The last time Journal was offering a match, it was for 50 cents for every dollar the employee saved, up to 5% of eligible wages. Starting in January, the company will pay the same percentage, but up to 7% of wages. Employer contributions will vest immediately, and Journal will now start offering a Roth 401(k) option. CEO Steve Smith says “the increase in employer match is structured to reward greater levels of employee savings” – and should help Journal better plan its own finances.

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