AOL reverses unpopular retirement plan move
AOL Corp. CEO Tim Armstrong has abandoned a plan to delay company contributions to employee retirement accounts until the end of the year after workers complained.
AOL had decided to pay matching 401(k) retirement contributions in one lump sum at the end of the year in a move to cut costs. Workers who left the company before the end of the year would have received no contributions, and all workers would sacrifice interest or earnings on those contributions throughout the year.
Armstrong said after a worker backlash that the company would return to depositing matching contributions every pay period throughout the year.
He also apologized in a letter Saturday for bringing up specific health care examples during a town hall meeting in which the retirement plan was discussed.