Thread regarding Charles Schwab 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 reading and hopefully participating.

| 1934 views | | 6 replies (last )
Post ID: @OP+1kdjjpnz

6 replies (most recent on top)

That’s part of why I stay at Schwab - 5% match every pay period AND immediately vested. I used to change jobs a lot and never vest…

Post ID: @Fpcq+1kdjjpnz

Fidelity is per pay period up to 7% match with possible annual profit share of 10%.

Citi is an annual match up to 6% paid in March with an additional 2% based on tenure.

JPM is an annual match (not sure of their details).

No clue about BOA.

Post ID: @poxi+1kdjjpnz

401k matched every pay period, but they hold our bonus hostage until 3 months after year end. As a result, most resignations occur shortly after bonus payout - if not the day of.

Post ID: @3buv+1kdjjpnz

Matched in cash, not stock. Also access to very low fee managed account options.

Post ID: @1kjk+1kdjjpnz

Thank you for the information, greatly appreciated.

Post ID: @1npx+1kdjjpnz

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