CINCINNATI—Regional phone company Cincinnati Bell Inc. is suspending its 401(k) plan match for salaried and other nonunion employees as it continues to cut benefits amid declining revenues.
Prior to the suspension, which begins next month and will continue through the end of the year, Cincinnati Bell had been matching 100% of salary deferrals up to the first 3% of pay, and 50% of deferrals on the next 2% of pay.
During the first quarter of 2009, the company reported $326 million in revenues, a 7% decline from the comparable period a year ago.
"We continue to be concerned about the overall impact of the economy on our business and are moving aggressively to reduce expense, maintain profitability and generate cash flow," said Gary Wojtaszek, Cincinnati Bell chief financial officer, in a statement.
Earlier this year, the company announced the phaseout of its defined benefit pension plan and the eventual termination of its retiree health care plans for salaried employees.
Under the first stage, employees who were younger than age 50 as of Jan. 1 stopped accruing benefits as of March 28.
In the second stage, employees who were age 50 and older as of Jan. 1 will stop earning pension plan credits after Dec. 31, 2018.
In addition, Cincinnati Bell will terminate retiree health care coverage for salaried and other nonunion employees and retirees on Dec. 31, 2018. Prior to then, it will freeze its contribution toward coverage at 2009 levels.
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