Employers are quietly pausing 401(k) matches again. The last time this happened was the 2008 recession and Covid

Posted by fortune@reddit | collapse | View on Reddit | 40 comments

Could the beloved 401(k) match be next on the benefits chopping block?

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.

What prompts employers to hit pause on 401(k) matches? More than three-quarters (76%) of employers offered a Roth 401(k) or other similar defined contribution plan as of 2025, according to SHRM. Of those offering a defined contribution plan, 74% also offered a match.

Despite their popularity, 401(k) matches often take a hit when the economy goes south. TTEC is far from the first employer to hit pause on their retirement match. The paint manufacturer Sherwin-Williams did so last year, as did Drexel University, though both resumed them within the year.

Pauses to 401(k) matching ticked up during the 2001 and 2008 recessions, as well as the first months of the Covid-19 pandemic.

[-]

Sinfluencer666@reddit

Reagan getting pushed by GE CEO Jack Welch.

[-]

Bazillion100@reddit

Corporations have no obligation other than profit, its shitty but corporate self-regulation is a joke. Reagan is to blame

[-]

ktaktb@reddit

Yes, it is necessary to deflect blame from a president of the united states.

Shit reagan supported or signed into law are on him, 100p, no context or caveats.

[-]

SomeRandomGuydotdot@reddit

Mumble, mumble, coequal branches, mumble, alzheimers, mumble.

[-]

ktaktb@reddit

Lol

Deflecting blame onto jack welch is to deflect blame from the gop

Yes, congress and scotus deserve blame too, but we cant let our representatives in governmenr pass blame off to CEOs

Fuck that

[-]

Sinfluencer666@reddit

Who's passing blame? Jack Welch lobbied and pressured the GOP to pursue less regulation and helped pioneer the short-term profit over long-term sustainability business models that have helped destroy the world and put us where we are today. All those ratfucks are to blame.

[-]

ktaktb@reddit

Not a jack welch fan nor fan of ceos since the powell memo at least

Ultimately we need to underatand that as americans we must elect those that will not bend to the jack welchs of the world, right??

We cant elect ceos. We can elect presidents and congresses.

[-]

SomeRandomGuydotdot@reddit

Mumble, oligarchy, mumble mumble m.gilens, mumble iron law.

[-]

FeelAndCoffee@reddit

Hell it's not bad enough for how much Reagan and Jack Welch damaged the modern world.

Monsur_Ausuhnom@reddit

I can sense the impending billionaire bailout and nothing happening, just like last time.

SwedishFresh@reddit

“Beloved” lol

poop-machines@reddit

One of the very few benefits that US employees get from their employment.

Notice how it said "for their US based employees"?

That's because many other countries offer it by law. In the EU, most countries have much more generous contributions. Retirement is often much better than the US system and matching isn't needed due to it not requiring employees contributions for employers to contribute.

Even in the UK, where they have a system similar to the USA, many companies pay into their employees retirement matching at a rate of 6%, and employers must contribute at least 3% of wage regardless of employee contributions. Employees are enrolled automatically, ensuring everyone gets retirement from their jobs. If they don't work, they get state retirement, which isn't perfect, but it works. And the UK really takes care of it's retirees, surprisingly. They have free care in homes made to look like small villages because it's better for the mental health and longevity of the patients.

rubensinclair@reddit

I literally did not think it was legal for them to do this. If you had a 401k match and they removed it, they just cut your salary. WTF?!

pheothz@reddit

There’s hardship rules that allow them to do it, but then they lose safe harbor provisions and have to maintain certain ratios. If they fail, they have to refund high earners who contribute or true up lower earners. It’s a huge pain.

Cultural-Answer-321@reddit

Companies can cut your salary anytime they like in the USA.

Accomplished-Can8737@reddit

This concerns only America. And how is this rellated to collapse? Fuck America. What a shithole.

HousesRoadsAvenues@reddit

"TTEC's Chief PEOPLE OFFICER" - good GOD. Corporate bullshit speak. "Beloved 401(k)", exactly what SwedishFresh said!!!

mime454@reddit

Wow my company gives us 5% no matter what then matches 7%. Can’t imagine being so stingy you can’t match 3%

Now imagine millions not even getting a 401K. Or being paid so little they can't afford a 401K.

brickout@reddit

5th recession of my not-too-old life. Fuck.

This one is gonna be special, though.

refusemouth@reddit

I doubt the recovery will happen like it usually does. A large numher of the jobs lost in this recession will not come back because theycwill be replaced by AI agents.

Agreed. We're also watching the suicide of USA hegemony and the psychos in charge seem hell-bent on doing as much destruction as they can on their way out.

Ciennas@reddit

They can't take it with them, so they're burning it all down on the way out.

Ampallang80@reddit

Maybe even the greatest!

AggravatingCricket61@reddit

Can't print more resources... This one will be special, a paradigm shift if you will.

GlockAF@reddit

If government worked for us they would forbid any company from doing stock buybacks or stock splits until they have caught up with their retirement obligations

tahlyn@reddit

It used to be illegal. Pretty sure Reagan is to blame for that one, too.

DawnPatrol99@reddit

At this point we should just be used to it. Save your money, grow your own food, store water and fuck private equity.

DisingenuousGuy@reddit

Damn, we have the actual Fortune magazine account actually posting to our Subreddit. Welcome!

CaptZ@reddit

Ours was paused last year and they just started it back up with major change. Rather than matching dollar for dollar up to a specific percentage, they now match with stock. Hasn't worked out in our favor yet.

jez_shreds_hard@reddit

At some point we have to stop putting up with this, right? I mean at some point people will say enough is enough? I'm middle aged now and I spent my 20s and a good portion of my 30s trying to get people to vote for actual progressives (not Democrats that are just corporate right wingers). I have lately been organizing for General Strike US. I am still amazed that most people I talk to will not do anything. They won't even protest, let alone agree to a general strike. You mention actual civil disobedience and they make it out like you're insane. What happened?

150-100 years ago, the working classes across the western world were in a similar situation that we are today. We actually have even worse income inequality than they did. They were willing to fight, bleed, and die for workers rights. They are the reason why we have labor safety laws, weekends, and holiday. In Europe, they are the reason why you have robust social safety nets. Now, the most the average person can be bother to do is complain on social media. I have basically given up. I have been arrested for protesting. I have lost employment prospects. It was all for nothing because the working classes are not willing to do anything.

I hear the same excuses. "I'll lose my job. I'll lose my healthcare." Do we really think we're going to have jobs when the oligarchs are hell bent on creating a world of corporate feudalism? Do we really think companies in the USA are going to continue to offer health insurance, which is garbage anyway, when they see that the workers won't fight back for anything? Are we really going to just watch society devolve further and further, without doing anything? I personally think my questions are rhetorical and that we are going to see little to no fight back, as things get worse and worse. If you happen to read this and do want to do something about it, consider signing the strike card if you live in the United Fascist States of Oligarchy - https://generalstrikeus.com/

Romano16@reddit

Not to worry! The gubment said we are HOT and hiring like nobody has seen before! Gas is $1.99 and we are consistently growing faster than expected!

BeeComprehensive5234@reddit

🤫They’ll never know

Euphoric-Look-7262@reddit

I think it's a little disingenuous to say "*Employers* are pausing 401k matches" when the article focuses on one specific company... I understand the sentiment, but this may stoke the flames of fear when it doesn't really need to.

CEOs are copycats, when when does it come they will all mimic this bullshit behavior

min_mus@reddit

CEOs are copycats

Yep. It happened with RTO, and it'll happen with 401(k) contribution matches, too.

Yelworc0242@reddit

I somehow doubt executive pay packages and shareholder distributions ever take a pause...

siraliases@reddit

The pension replacement is working as well as designed

Konradleijon@reddit

Fudge

old-legs-623@reddit

Subsistence is life. Fifty pounds of rice is ownership, which lasts as long as it can be defended. Once we get into currencies and debt in our efforts to acquire and secure property, inequality occurs and rentiership arises, whereby we offer bribes/tribute/protection money to gangsters through wages (life/time rental/slavery) and taxation (protection/slavery). Our property becomes their property by a variety of means to a single end.

When the gangsters see a threat to their revenue streams as the system wobbles, they move very quickly. Eat your rice.