Another 401K question, and another question

A short time ago I asked a question about 401K contributions through my husband’s work. Currently 9% is taken out. It’s been that way for a while even though we have a $2800 debt, the debt came last Nov. So my question at the time was should we cut back on the 401K contributions in order to pay off the debt faster. The consensus from the group was no. And I agree. But at the time someone brought up that DR recommends adding to a company 401K to whatever the company will match. Well hubby’s work used to match up to 9%, but we’ve found out that is not true, The came up with a “new improved” system. It totally sucks for everyone involved except them! They are only matching 20 cents per dollar, and I am not sure to what % They are calling it an incentive program where if regions meet the “quota” set for them (by corporate of course) then they get more matching…as well as other compensation. Well they set the bar way too high and there is no way this region can meet their quota.

So my question is, what does DR recommend as far as 401K. Should we continue at 9% with the goal of 15%? Should we only contribute upto whatever % the company will match? What do we do to fund the rest of the percentage?

Also, I am confused about emergency fund so I hope someone can help. Are we to have $1000 emergency fund AND 3-6 months of living expenses? We have a $1500 ER fund (I’ve found we need to have higher than $1000 due to the cost of living here) and are starting to slowly build our living expenses fund since our $2800 is interest free for the life of the loan. I know not what DR suggests, but a year and a half ago my hubby was laid off and was out of work for 6 months. To feel a little safer, we feel that is what we need to do. Anyway, I just want to know are these two separate accounts?