More employers join defined benefit exodus; Harleysville, Russell, Sprint Nextel instead enriching 401(k) plans.(employee salary contribution for 401k plans)

Business Insurance, January, 2006 by Geisel, Jerry

Byline: JERRY GEISEL The move of companies away from defined benefit pension plans is continuing, with three more U.S. employers saying that they are phasing out such plans and beefing up their 401(k) plans. Last week, property/casualty insurer Harleysville Group Inc. in Harleysville, Pa., said it would freeze its defined benefit plan at the end of March.

Starting April 1, employees will earn retirement benefits through an enhanced 401(k) plan. Under that plan, Harleysville will automatically contribute to an employee's 401(k) account an amount equal to 5% of his or her salary. The insurer also will match 50% of employees' salary deferrals, up to 6% of pay, and will make additional matching contribution depending on company financial results. Currently,...

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