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not quite a bombshell, more like a mortar

July 15th, 2009 at 07:55 pm

Saving log - $1 tip box
Spending log - $13 groceries
Found money - $.01 (floor of women's locker room)

Cost cutting at work continues. Our employer puts up to 5% of our salary into our retirement savings. This is different than the 403B match. Anyhow, that 5% is dropping to .5% starting the last 1/3 of the year (Sept - Dec). The money saved is to be re-deployed to pay for our health insurance premium. January of next year, both this 5% and the 403B match is going to be "discretionary".

Bummer, but not a surprise compared to everything else that is happening.

6 Responses to “not quite a bombshell, more like a mortar”

  1. frugaltexan75 Says:

    Sorry to hear about the retirement reduction.

  2. whitestripe Says:

    that's a huge drop!!!

    here it is compulsory to put 9% in our superannuation. government employees get 13%.

  3. Apprentice Bliss Hunter Says:

    Thats a huge drop... a sign of the times I guess.

  4. scfr Says:

    That is a big drop. On the bright side, you still have a job!

  5. debtfreeme Says:

    How are they defining discretionary? Your income or theirs?

  6. baselle Says:

    debtfreeme - good question! Theirs. I interpret this as a warning that if things turn for the worse, they'll cut off the match.

    I find that the tax deferral of the 403B is valuable to me, my 403B has been doing well, and my emergency fund is at the level I want it at...so I wait and re-assess on Jan 2010. I can be equally discretionary.

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