Feb. 6 (Bloomberg) — AOL Inc. blamed President Barack Obama's health-care law for its plan to reduce spending on contributions to employees' 401(k) retirement plans.
AOL, owner of websites such as the Huffington Post, will still match employee contributions to retirement plans up to 3 percent of their paychecks, Chief Executive Officer Tim Armstrong said. Under the new policy, it will make the matching payments in a lump sum at the end of the year, forcing employees who leave before then to forfeit the benefit, he said in an interview today on CNBC.
"Obamacare is an additional $7.1 million expense for us as a company," Armstrong said. "We have to decide whether to pass that expense to employees or cut other benefits."
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