Unisys Suspends 401(k) Match

Information technology company Unisys Corp. has suspended its 401(k) plan match.

Before the suspension, which began on January 1, Unisys matched 100 percent of employees’ salary deferrals, up to 6 percent of pay. In 2007, Blue Bell, Pennsylvania-based Unisys froze its defined-benefit pension plan.

Company officials say the suspension of the 401(k) plan match is part of a broader effort to reduce costs.

In 2008, Unisys, which has about 12,500 U.S. employees, reported a net loss of $130.1 million, up sharply from a net loss of $79.1 million in 2007, while revenue slipped 7.4 percent to $5.23 billion. The company has reported a net loss in four consecutive years.

(To read about other companies that have suspended their 401(k) matches and related stories, click here.)

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

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