Thread regarding State Street Corp. layoffs

401K Benchmarking Exercise - Assistance Requested

I currently work at BNY Mellon. Our CEO recently announced a change to the 401K plan. Currently our company match (max 7%) is implemented each pay period. Starting in 2023, the match will be paid at the end of the year (actually, three months after year-end). This change will result in any employees who leave before year-end missing out on contributions to their 401K plan. At a recent town hall, our CEO justified the change by stating that the company has decided to pay out this reward only to employees that will be with us in the future, and also that this new policy is in line with industry practice.

Current trust in our management is low. In addition to this change, the CEO announced with great fanfare that all members of staff that don’t currently receive shares will receive a gift of 10 shares. The media has picked up this story, though none have reported that this “gift” is coming out of our year-end bonus. So, instead of just receiving an all-cash reward, part of our bonus is being deferred 3 years, assuming we are still with the company. Yea!

Given our low trust in management, I am curious as to the validity of the statement that this new 401K policy aligns with industry practice. As such, I am posting this message on this website for all companies listed in our proxy statement as being peers of BNY Mellon. I would appreciate information on the following questions:
• Is the 401K match paid each pay period or at year-end?
• What is the maximum match provided by the company?

Thank you for reading and hopefully participating.

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| 2359 views | | 9 replies (last September 20)
Post ID: @OP+1kdVHjlB

9 replies (most recent on top)

State Street's 401(k) solution is simple. Move all the jobs to India. Pay no matching. Namaste.

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Post ID: @4uzqq+1kdVHjlB

Company I work for just switched FROM end of year (EOY) to weekly payout starting in 2023 precisely because EOY payout was wildly unpopular with employees. That having been said, end of year payout was effective to some degree. I factored it in personally while weighing a job offer from a company who wanted me to start before end of last year. Would have meant leaving money on the table that wouldn't necessarily recoup from the new firm.

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Post ID: @zzqa+1kdVHjlB

This is so not in alignment with industry standard practice. Corporate America is awful.

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Post ID: @dmyn+1kdVHjlB

Former employee of State Street. Work for insurance company. They match 8 percent which is great. But pay out at end of year not weekly.

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Post ID: @1gxq+1kdVHjlB

I won’t be surprised if State Street implements this. I know a leader that was recruited from BNY Mellon to State Street. I constantly overheard him say ‘This is how we did it in BNY ’ to his handpicked hires….from BNY.

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Post ID: @xtd+1kdVHjlB

Ha!! They sound cheaper than state! What a scam I’m sorry . Also gov pushes for 401k due to lack of social security and people unable to afford retirement- is this even legal? Or can it be notified to the news or some gov agency

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Post ID: @pao+1kdVHjlB

IBM defers the 401K payment until year end, I know they are tech sector and not finance however they have found ways to justify it

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Post ID: @huf+1kdVHjlB

Thanks for the information, much appreciated.

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Post ID: @fxm+1kdVHjlB

SSC 401k match is 6% pays out every pay check. Waiting to end of year payout for 401k is a ploy to not pay.

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Post ID: @smo+1kdVHjlB

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