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April 11, 2002
AOL Revises its 401(k) Rules
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In making workers' savings less dependent on the performance of the corporation's stock, AOL Time Warner joins other companies that have adjusted their retirement plans since the collapse of Enron Corp.
"There was a lot of discussion and debate publicly about 401(k) plan flexibility for employees," corporation spokeswoman Tricia Primrose told the Post. "So the compensation committee of the board (of directors) reviewed the issue and approved the change for our plan."
AOL Time Warner, the world's largest media company, contributes as much as $2,000 a year in matching funds to each employee's 401(k) retirement plan.
Previously, most matching funds were automatically invested in company shares.
Now, employees can invest matching funds in any of more than 100 mutual funds from Fidelity Investments and other fund families.
Of AOL Time Warner's 89,300 employees, about 80 percent participate in the retirement plan, according to the Post.
To read the Washington Post story, click here.
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