401(k) Death Match (Sorry! - Death of 401(k) Match)

The Financial Advisor Magazine reported last week, quoting a PlanSponsor.com study: "Bye-Bye To Employer 401(k) Matches?" This is a potentially ground-breaking study, which implies, and I quote:

"Some researchers are suggesting that employers can put in place automatic enrollment plans and eliminate their 401(k) matches without any adverse effect on participation or contribution rates. In fact, researchers are suggesting that an employer might be better off using the matching-contribution money to minimize 401(k) plan fees, reduce health care costs or pay for other employee benefits. The money might also be better spent getting employees who are not saving for retirement to save rather than helping those who are already saving. In short, this tradition of employer matching employee contributions is being questioned and may someday disappear from plans, especially in light of current economic conditions and a new pension law. That, in essence, is the gist of an upcoming article in PlanSponsor magazine."

Whoa! What will they think of next? I hadn't seen this one coming...