Promotional Products Firms Holding On To Retirement Plans


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Promotional Products Firms Holding On To Retirement Plans

Issue: 2009mar

These poor economic times are forcing everyone to pinch pennies, and having to do so on a business level can sometimes force the same frugality on someone’s personal finances.

Recent news reports revealed that some companies are limiting their contributions to employee 401K plans to conserve cash, while others are forgoing the start of a new plan.

When asked about their own retirement options, however, most PPAI members interviewed say they have no plans to cut back on contributions.

“We have made no changes to our 401K plan,” says Bob Kreuzberg, vice president of sales and COO of Waco, Texas-based Harvey-Daco, Inc. (UPIC: HARVDACO). “We still provide a matching percentage based upon overall company profits. It is our goal to continue providing a company sponsored plan to assist all of our employees -- both internal and commissioned sales employees of the company are eligible to participate.”

Denise Johnson, the tradeshow administrator with Preston, Washington-based supplier SanMar (UPIC: SNMR) says her company hasn’t modified its program, either. “There have been no changes that I’m aware of; we still have the same 401K and matching options.”

One company chose to suspend its 401K contributions and also to eliminate its long-term disability coverage, in part due to the economy. Eric Johnson, MAS, vice president of sales for Brooklyn Park, Minnesota-based supplier Halls & Company (UPIC: IDLINE), says employees are fine with the suspension and still have the option of contributing to their plans.

“It was part of a package of things,” says Johnson of the decision to suspend contributions. He adds that the disability coverage elimination made sense because “we never had a use for it.” Both decisions came at the end of 2008; Johnson says at the end of 2009 the company will reevaluate the contribution suspension.

Randolph, New Jersey-based supplier Sound Line, LLC (UPIC: 1SOUNDLN) is one business that doesn’t offer any retirement options, a decision that is related to its size rather than the economy, says President Elyse Schaffer, CAS. “We had one years ago, but we’re a small company to begin with,” she says.

For a small business in search of an enticing offer for potential new employees, it might be worth noting that small businesses nationwide are choosing to set up programs regardless of the economic climate.

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