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FAYETTEVILLE – About 2,200 Cumberland County employees learned this week that the county is suspending all contributions to their 401(k) plans.

Previously, it had contributed 1 percent of full-time employees’ salaries to their retirement funds.

According to Wealth Advisor Collin Sumrall it’s not the end of their retirement plans.

"It's not a devastation to any retirement plan," said Sumrall. "They're going to have to step up and put more money in themselves to make up the deficit or the shortfall.”

A letter sent by County Manager James Martin to Cumberland County employees read that the 401(k) suspension was an “early cost saving measure.”

“On an annual basis, the action will save the county approximately $650,000 and hopefully mitigate more sever budget reductions,” Martin’s letter read. “It is my intention to indefinitely suspend the county’s contributions to employee 401(k) accounts effective July 1, 2009.”

Cumberland County Assistant Manager Amy Cannon said the suspension will continue through the coming months, until leaders get a grasp of the economy.

Cannon said the goal was to avoid affecting net pay. But Sumrall said that for county employees, retirement funds have a big impact and shouldn't be ignored even during tough economic times.

"The first place people will tend to cut back on is retirement because it appears to be so far out in the future,” Sumrall said. “But as we all know, one year turns to five, five turn to ten. And the next thing you know, retirement is at the door.”

The county also plans to save money by delaying hiring for vacant positions and limiting purchasing.