Could Ford Motor Co. someday "takeback" it's 401K mach?

Question

The company announced it will pay .60 cents on the first 5%. Do you think someday they someday take this back?

Also announced, medicare-eligble, over-65 retirees will no longer have employee-provided heatlh coverage effective Jan. 2008. They will receive $1800.00 that can be used for supplemental heath insurance.

http://biz.yahoo.com/ap/061102/ford_benefit_cuts.html?.v=9

Best wishes,

pup


P.S. I am not employed or formerly employed by Ford.

Answer 1

All of the major auto makers have current, MASSIVE pension commitments that they are NOT going to be able to honor.

However, once they put money in the 401K, IT'S YOURS. There's no guarantee, however, that they will give you .60 ten years from now.

BIG caution - I don't know what vehicle they use for 401K, but remember the Enron debaucle - if the money is in THEIR STOCK or THEIR FUND, it's not guaranteed, so if you have the option, you need to put all your 401K money under YOUR control, and don't have more than 5% in any one stock.

Answer 2

They can stop the match in the future after giving notice to employees. They can not take back any matching contribution that is made to an employees account. If the plan calls for a vesting schedule associated with the matching contribution then an employee who leaves will leave the unvested portion of the match in the plan and it will be allocated to the remaining plan participants.
The health insurance move makes sense since the cost of retiree health care is cost prohibitive for a large company and because of the rising cost of such health care any cuurent employees end up having to pay more because the retirees are covered in the plan.

Answer 3

I think ford is heading toward bankruptcy. Good for them!