Thread regarding Northern Trust Corp. layoffs

401K Benchmarking Exercise

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.

| 928 views | | 3 replies (last )
Post ID: @OP+1kdb8LRb

3 replies (most recent on top)

This is another way for companies to cut expenses —it is sad they are cutting a benefit of its employees—cutting from the fabric that makes it a company. So much for Northern culture.

Post ID: @15wpq+1kdb8LRb

The only other major bank I know that does exactly what you’re describing with the 401k match is Wells and that was started a couple years ago as a cost saving measure under the leadership of Charlie Scharf. I know of nowhere else that does it. So it sounds like JPM is getting tips from Wells. Good luck with that.

Post ID: @5axv+1kdb8LRb

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