401K match update

Coworker passed along a message from HR received when asking about the 401K drop. Was told managers received these speaking points in advance to help explain this - any of you managers receive the below?

FAQ:

Why are we making this change?
The health care industry continues to experience uncertainty, especially in the policy environment. Because of this and our financial performance headwinds, we are being even more thoughtful about our resources. This change will align our three 401(k) plan options so that each plan has a consistent employer match of 3.5%. We remain in the competitive range with our peers while continuing to provide a comprehensive portfolio of benefits and well-being programs for our employees.

Who is impacted by this change?
The change to the employer match applies to both our plans. Employees eligible for these plans will be impacted by this change if they are eligible for the employer match and contribute to the plan.

#401K #Company #HR #Management

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13 replies (most recent on top)

@ar stupid response by a stupid person. It's not 1% of your salary, it's 1% of your contribution to your 401k, which is a max of $26,000 a year. Again stupid people making stupid comments

@bj i think they will do just fine if you dont buy ~$700 worth of stock per year

@d2 We don't necessarily know that it's the executives who already had a lower (3.5%) maximum 401K match, but your logic still holds true.

Using "alignment" as a reason for lowering the 401K match without "aligning" other types of compensation is just a convenient excuse.

In addition to stock options I can think of several other types of compensation that would need to be "aligned" in order for the Company to be consistent: maximum bonuses or raises (why should it differ by unit or location?); pay scale (India has always been lower than onshore); vacation days (India has always had more than onshore).

@e5 For most of us the maximum 401K match has been 4.5% for at least the past 15 years. Up until 1/1/2026, that is.

What was the match previously? I'm newer and regret my decision to work here.

First, cutting the 401K match by 1% is a 1% cut in total compensation for most of us.

Secondly, the bit about aligning the company's three plan options suggests some employees were already so highly compensated that their 401K plan had a 3.5% max. If so, the company cut the 401K match for us worker bees but somehow didn't bother "aligning" other types of compensation such as the stock options that execs get.

Lastly, health insurance is not health care, so the claim that UHG (et al) is part of the "health care industry" is just more corporate propaganda.

In some ways, this also hurts UHG. I only contributed 2% to the stock purchase. But guess what? Because of this change, I only contribute 1% to the stock now and reallocated that other percent to my 401K.

1% of your salary is $260?! That's wild, you're vastly underpaid and deserve better.

@a5 Correct. I'm a GL30 and I found out from a companywide broadcast. It is what it is, many companies are doing this so it's nothing special to UHG. This is all old news. Folks need to course correct their savings strategy. It su-ks don't get me wrong, but we also need to keep perspective, if you contribute the max to your 401k it = $260 a year, there are far worse things here to complain about.

@a3 nope

I was never provided anything in advance. L30

Happened in December - literally seven months to get this information, which is why I wondered if any managers have seen this.

this change happened last fall. was there another change I missed?

Thread regarding Optum layoffs

401K match update

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