Did you receive the email about 401k changes?? What are your thoughts?
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They are evil
If managers are describing it as a positive they are too stupid to read between the lines or drinking the corporate kool aid. On the surface it looks like they are “sticking it to the execs” but in reality everyone suffers with the change to annually versus quarterly match. People - just go find a tool or use a financial calculator to see the difference of investing say 1k each quarter at a 6% market return versus 4K at the end of each year at the same 6% return. This is all a way to save expenses, get that stock price up as quick as possible so the execs heavily compensated with stock can walk away with a boatload of cash
I’m interpreting from the email that they will no longer make quarterly deposits. That was always worse than competitors who match contributions each pay period. But to go annually, yeah, that’s the definition of cheap and trying really hard to stick it to employees.
The worst is for people who make more than $250000, they now get basically nothing. There must be a boat load of people in that category for them to save much money making this change.
I personally have a count down clock to bonus deposit day. If I hear no bonuses before then, I’m out. This is just going to get worse and worse.
This is what we can all come to expect from the new Wells Fargo. From here forward it’ll probably safe To assume that everything will be done to the lowest legal bar or standard possible as this is the cheapest way to do business. It does not appear in the intentions are to make this place better but to cut the cost and run it like a hedge fund, with the end goal most likely to be acquired. Just looks at how other M&A’s have worked. The buzz word trimming layers or cutting the fat are always used. In the end the only thing that are cut are the key resources and employees. What kind of talent can we expect to recruit with horrible benefits, Stagnant salaries and roles that are impossible to meet expectations. This looks like a clear shift to allow for them to displace a great deal of employees without having to pay any accrued 401(k) matching for 2021.
Received it at 10:36 am. The additional details link has the fine print. A big change is the annual vs. quarterly match, deposited on the last business day of the plan year. Think about the impact, and logic behind it. States you must be employed on Dec 15th to be eligible for the matching contribution with exceptions for death, termination/retirement at age 65 or older, or disability.
This is definitely not a good thing... ugh
“Employees who are looking to change employers will be impacted as will employees who are being laid off by the company.”
https://thechicagofinancialplanner.com/year-end-401k-matching/
Charlie is cancer on this bank.
That timestamp depends on which group you belong to. I haven’t received any comm about this.
11:07 am Central
FYI from a recent Forbes article:
The most generous 401(k) plans match your contributions each pay period while the least generous plans only provide the employer match once a year, typically at the end of the year.
This means, if you contributed money to your 401(k) in the beginning of the year, but switched companies in the summer, unfortunately, you wouldn’t be eligible or have received the employer match at all in the situation where the company matches once a year.
Source: https://www.forbes.com/sites/rogerma/2017/04/03/why-your-401k-employer-match-may-not-be-free-money-after-all/
Another way to cut expenses and persuade "highly compensated" employees to reconsider. The annual match is awful. Do you forfeit the match if you change employers mid-year?
Plus insurance rates are rising again. Mine are up 11% for next year.
Charlie is starting to make his mark on the "firm"
If you leave before the end of the year do you forfit the match for that year?
Contributing employee match yearly is not “industry standard. Yet another fun tactic to encourage employees to separate from the firm on their own. ”.
Have not received it either (WIM)
Sounds like a positive.
And we haven’t seen anything in the form of profit sharing (now discretionary contributions) for years so I’m not holding my breath. Also, going from quarterly to yearly matching will have a big effect over time.
Matching yearly rather than quarterly is no good.
Have not seen it yet but my manager said she will be discussing on team call. Sounds like it will be a positive.
When was it sent? I haven’t gotten anything yet. I’m in wholesale.