Cancellation of benefit

[SharonLouK]

I live and work in Maryland. On 10/5/01 the full-time employees of my company received a memo stating that as of 10/01/01 our employer would no longer be making their matching contribution to our 401k plan. Is that legal? Do we have any action? They have been making this matching contribution for as long as I have been involved in the 401k plan.

 

[newmom]

Yes it is legal. They were never required to make that contribution in the first place therefore they are not required to continue. I think I would try to be happy that they contributed what they did, you have 2 times as much in your 401(k) because of the time they did match.

 

[SharonLouK]

That's what I figured, but it was worth a shot. It's hard to be happy about losing something you got in place of a raise and now to have neither the raise nor the added benefit, especially when you haven't had a pay raise in probably 7 years.