Mecklenburg County will immediately suspend employee 401k match contributions to offset weakening sales tax revenue, County Manager Harry Jones said today.
The move will save $1.4 million by July, Jones said. That will make up for shortfalls the county calculated after receiving declining March sales tax receipts.
Jones called it "highly likely" he will recommend extending the suspension of the match through the next fiscal year, which starts in July.
The move affects all Mecklenburg County employee deferred compensation accounts except for sworn law enforcement officers. Local governments are required by state law to provide a 5 percent contribution to their accounts, Jones said in a news release.
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Suspending the county match does not affect employees' base pay or take home pay. Nor will it change the amount employees are voluntarily contributing to their accounts.
- Doug Miller