Delphi has made changes to the retirement plans that have increased the importance of the 401(k) plan and individual savings for an employee’s retirement. The changes, coinciding with the freeze of the traditional pension, include renaming the salaried 401(k) plan, a company contribution based on salary, and a company matching contribution.
Delphi’s Savings Stock Purchase Program (SSPP) has been renamed the Salaried Retirement Savings Program (SRSP) to better emphasize the primary purpose of the plan; to help employees save for retirement. The SRSP includes a company contribution equal to 4% of eligible salary. Additionally, Delphi will match $0.50 on each $1.00 of employee payroll contributions up to 7% of eligible salary for those employees with less than 25 years of service and up to 9% of eligible salary for those employees with more than 25 years of service.
As you consider how much you should contribute to the plan, it is very important that you understand how to stay within the annual IRS limits for contributions to the plan. Mainstay Capital Management can help you avoid missing out on valuable employer contributions by showing you how much you can safely contribute.