One-Third of U.S. Employers Have Reduced or Eliminated Retirement Plan Matches in Economic Crisis

CHICAGO, IL--(Marketwire - March 25, 2009) - Matching contributions to retirement plans have been significantly eroded by the economic crisis.

Thirty-four percent of U.S. employers have reduced or eliminated matching contributions to their defined contribution retirement plans -- which include 401(k)s and 403(b)s -- since January 2008, according to the new report, "Plan Sponsor Attitudes at the End of a Tumultuous Year," released today by Spectrem Group (www.spectrem.com).

Over the next 12 months, 29% of plan sponsors intend to reduce or eliminate matching contributions.

"The economic crisis has taken a significant toll on matching contributions to defined contribution retirement plans. One-third of plan sponsors have either reduced or eliminated them entirely, and 29% intend to do so over the next 12 months. This, combined with a decline in deferral rates, raises questions about the ability of the current generation of working Americans to adequately fund their retirements," said George H. Walper, Jr., President of Spectrem Group.

Twenty percent of employees participating in defined contribution plans have decreased their deferral rates, the percentage of earnings they contribute to the plans, with another 5% intending to do so over the next 12 months, according to a second Spectrem report, "Participants' Attitudes at the End of a Tumultuous Year," released today.

The report "Plan Sponsor Attitudes at the End of a Tumultuous Year" is based on the online polling of over 150 plan sponsors nationwide in February 2009 and has a margin of error of plus or minus 8 percentage points. "Participants' Attitudes at the End of a Tumultuous Year" is based on the online polling of 400 active retirement plan participants nationwide in February 2009 and has a margin of error of plus or minus 4.9 percentage points.

Contact Information: Contact: Sharon Bially (774) 270-1293 sharon@farrellkramer.com