General Motors is bringing back 401(k) matches of 50 cents on the dollar, up to 4% of an employee’s salary, beginning Jan. 1, the Detroit Free Press reports.
GM had suspended the match on Jan. 1 of this year as part of cost-cutting measures. The company is now financially stronger and keen on “competing for talent,” said GM spokesman Tom Wilkinson.
GM matched contributions with 80 cents on the dollar up until 2001, at which time it reduced it to 50 cents on the dollar. Then, in 2005, it brought that match down to 20 cents on the dollar.
One change GM is making to its new matching system is that instead of putting the matched money into GM stock, it will go into the investment portfolio that employees have chosen for themselves.