Did you receive the email about 401k changes?? What are your thoughts?
59 replies (most recent on top)
Imagine just learning about this
@1fkq+17xLfxZG You’re doing the lords work, thx for the reply and hitting on my question bro.
: @mjf
Lol wells sold retirement last year.
Some of y'all aren't reading the info correctly. Here's your public service announcement:
Does anyone know if RSR through the LTI program count as certified compensation total? No, RSRs do not count as certified compensation.
Is the last day to be employed 12/31 or 12/15? 12/15 is correct beginning 2021.
Was match cut in half? No, the match formula stayed the same - $1 for $1 up to 6% of certified compensation.
Are those making more than $250,000 losing match of $20K a year? No, the IRS sets the compensation and contribution limit each year. This year, the maximum match is $285,000 x 6% = $17,100. Next year I think it will be $15,000 maximum based on $249,999 comp limit for match.
@1afx+17xLfxZG bonuses will be canceled or greatly reduced for most employees. The other big banks have already stated that they are informing their employees to brace for severely reduced bonuses. WF lost money this year and is in much worse shape. Also verified with some folks close to the situation in HR.
Because of the sharp-cliff breakpoints between the different benefit categories, managers will game bonuses to stay below a breakpoint if the employee is close – and employees will then even be grateful for the reduced bonus.
Bonuses are paid in Feb (if we get one)
CHARLES, KEEP STIFFING YOUR EMPLOYEES AND LETS SEE WHERE THAT GETS YOU.
Post ID: @1wlw+17xLfxZG Re “ 90% qualifying for a company match”. Could part of that 10% be new employees who don’t qualify for a match yet? Not sure about how they are treating newbies these days...
Timmy Sloan, Hope Hardison and Pat Callahan are rolling over in their graves with this change
Does anyone know if RSR through the LTI program count as certified compensation total?
This is death by a thousand little cuts. I’m done with this place. Before you know it, they will cut what they contribute to heathcare and our other benefits. This was the only reason to stay at Wells. Time to go now.
Gor the email. Also noticed that, based on 90% qualifying for company match (due to making below $250K), that means 10% of WF employees make at least $250K !!!!!!!
How does it impact the employees less than 75k i haven’t gotten the email yet.
So I guess HR might have ran some attrition number and seems like they are expecting bunch of people leaving in March as soon as they receive (any) bonus for 2020. Say if they depart on April 1st, they are entitled to bonus + 401K quarterly match .. But now, they don't get the 401K match if they depart anytime before Dec 15th, 2021!
I am wondering if this is a result of the recent survey and the feedback they got from it ..
If I make 249k, and my coworker makes 251k, do I end up ahead by 12,940 (6% of 249k less 2k he gets as comp). Seems ill-conceived.
Holy c-ap so essentially, you lose for retirement or like that article shared earlier:
"...it is tough enough for employees to save enough for their retirement under the defined contribution environment that has emerged over the past 25 years or so. The year-end or annual match makes it just that much tougher on employees, which is not a good thing."
Thanks Schart!
So if they displace you December 1 2021 you get no match. Look out. They are going to save millions.
Hey @mjf, I'm glad you're so fortunate salary wise, but not sure about your strategy of making after tax contributions...The WF 401(k) allows you to make Roth (after tax) contributions, but you won't have to pay taxes on the earnings, which could add up to a lot. You can't make Roth contributions to a regular investment account.
This is a bad sign When you cut benefits, you cut reasons to work here.
Correct me if I’m wrong but the 401 match caps out at just under 20k per year. So the people who make over 250k just took a 20k a year cut.
While I could easily say something sarcastically about how they will be ok, the truth is the majority of these people add a ton of value, are not easily sourced, and are not limited in their career opportunities. All of us want to be compensated in a way that fully appreciates our value. If I went to law school or had whatever education and was able to add value, I would expect to be compensated as such. This is a real greedy, short sighted decision that will hurt the bank in a big way. This decision shows Charlie is not interested in long term success.
Just got it. I’m fine with everything except moving to annual contribution for matching. Quarterly was bad enough. First place I’ve worked in 20 years that didn’t contribute the match each pay period.
The url is posted below just put it after the teamworks.wellsfargo.com part. I got the email around 4pm central, others on my team got it this morning. Maybe you wont get it until tomorrow.
Haven't seen any email about 401K plan changes. The Summary Plan Description posted on Teamworks is still dated June 1, 2017 and the benefits site still says quarterly matching. Weird that they would not do a single all employee message on something that effects everyone.
So wait-we no longer get a 401k match? And if I retire early (pre 65) I get nothing?
Wow, some of ya'll seriously getting paid. What titles make over 250K and arrogant enough to post about it here in their 1st sentence? No wonder we have issues.
In my case, I'm over the 250k threshold. I am seriously contemplating stopping contributing before-tax dollars to Wells 401K Plan and will instead be reallocating the equivalent amount into an after-tax account with Schwab or Fidelity. I get far better choices and superior customer service. I appreciate the after-tax vs before tax numerical difference but at this point, is It really worth being a WFC account holder? The account balance is rolling over to these other firms the minute I'm allowed to do that. WFC will not be anywhere near my retirement funds.
Clearly a carrot intended to retain people. I don't anticipate being there 21 year end so means nothing to me
You do realize there is a current discretionary benefit where they can give you 0-4% of your compensation? Guess what they normally deposit ‘at their discretion’? This plan is exactly the same as before unless you make under 75k, then you get the 1% bump, other than the EOY matching scam.
This is disgusting and really screws the younger generation too who are already drowning in college debt, and now it is going to be really difficult for them to retire. I am so fortunate that at 50 me and my spouse always maxed out our 401ks since we were 21 and with generous matches both have over $1 million in our 401ks. But what about my young son? What future does he have? There is no way I can support this company anymore. Our ceo is talking out of both sides of his mouth- oh, we need to increase diversity and provide more opportunities, but let’s cut everyone’s ability to prosper and become financial independent. Boils down to greed and more inequality.
Not sure how I feel about a single end of year match but overall seems better than it is now if you make 150k or less and the same as it is now if you make over 150k and under 250k.
My spouse works for Honeywell and they started this a few years back. It is not a positive. If you leave you do not get a match. You do not benefit from dollar cost averaging. If they "suspend" the match middle or end of the year you do not receive the partial match you would have received during the year.
It seems there is a new HR handbook that companies are reading.
New hires will not be vested until 3 years of service. Those making less than 75k get an add’l 1% (might be reading this wrong?)
It’s on teamworks to read as well
/campaigns/Pages/401kPlanEmployerContributionChanges.aspx
@pon+17xLfxZG I read somewhere this week a lot of the big banks are letting their employees know there will be smaller bonuses this year. WF was not the group of banks listed, but I tend think that due to this year's poor performance, bonuses will either be completely out, limited to specific job classifications, or be drastically reduced. My feelings were confirmed with some folks close to the situation in HR.
Meanwhile we have the highest paid banking CEO. I mean you can’t make this stuff up.
I’m starting to not even be surprised anymore. I once had a sense of pride to work for Wells Fargo but lately I feel like every measure is being taken to push folks out. I understand cutbacks but sheesh. Layoffs now an annual match. I’m truly at a loss for words but I guess “it is what it is”.
Yuck. I remember when WF made you wait a year before you could even participate in the 401(k), so over about 20 years it has nearly come full circle.
Earlier this week I interviewed with a regional bank, and the recruiter was convinced that their benefits and pay (vs. what I get at WF) would be a deal breaker. I kind of laughed in my head, because clearly the guy had some pretty dated information because he walked me through their range etc.... Bottom line, WF can't be considered a "generous" employer anymore.
Wait until next year when Charlie goes after the severance schedule. (A prediction, not a verified fact.)
Not only will Wells be at risk of losing lots of existing people which may be Shart's strategy given how many people he wants to lay off, but Wells will be find it much tougher to bring in qualified people at all ends of the spectrum, both entry level customer facing and highly skilled. The other banks will continue to have a competitive advantage because they will be able to recruit the most qualified candidates and will poach good people from Wells.
Very disappointed in the changes to the 401k. These are intended to save the company money, not help us save for retirement. New employees will have to be here for 3 years before the discretionary contributions “vest.” Changing to only paying at end of year instead of quarterly, and only if you don’t leave before then, is significant. In other contexts company recognizes an exception for vesting if retire after you turn 55, this does not recognize an exception unless you are 65 or older. Eliminates the 6% match entirely for anyone making more than $250k.
So sad. When interviewing with other companies, of course I pay attention to the 401(k) match %, but I don't think I've ever asked when the matching get paid. I will from now on.