More contributions to spp and 401k matching,...
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check the IRS rules for top-heavy 401K plans. Rules cover how much assets in the 401K plan are "owned" by officers making 175K or more plus 2 other components compared to "the rest of the asset owners". This change may be a great way to protect the plan from penalties as well as allowing these contributors to continue to make maximum payroll/EB deferral by forcing more contributions by the masses.
Intel contributed 12 percent to 401k in late 90s early 2000s.
That is a downgrade though. It was 10% straight deposit that dropped to 5% but you never had to contribute but now it’s a match up to 5%.
2021 that seems really strange to announce it so far ahead of time. Would have expected announcement in December to take effect next year. It always felt like the profit sharing contribution was sort of a fringe benefit and not really fully guaranteed (when they've decreased the amount, it was done with zero notice), but I guess it'll continue though next couple of years.
The 401k is a downgrade for those that contribute < 5%. Generally, we have received 5% annually from Intel into our 401k regardless of your contribution level. In 2021 and beyond, Intel will contribute up to 5% on a matching basis, so if you put in less than 5% you will receive less than in the past. If you put in 5% or more, then it is the same.
Then again, we are talking 2021 and beyond, which with repeated layoffs and the company's uncertain competitive future, seems like a distant thing anyways.
What's the SPP match %?
What is CEP cut?
SPP contribution increase makes up for CEP cut. Net gain is zero for employees.
People seem to think the 401k part is a downgrade. At the least, it shows that trust still doesn’t exist.