Saturday, May 30, 2009

Hospital Stops 401k Contributions

Cookeville Regional Medical Center is the latest in a series of businesses around the area and around the country that have decided to stop contributing to their employees' 401k retirement plans. About 700 employees participate in the plan, and the hospital had been providing a three percent match to their contributions. But members of the hospital's finance committee say that match was costing about $100,000 a month or $1.2 million a year. CFO Paul Korth told the hospital board that continuing the match was not feasible in the current economy. He did say they hope to start matching retirement contributions again at some point in the future, but didn't say when that might be.