Careers section touts 401k match as a benefit but I heard it hasnt been offered in 2 years. Is this true? How does a company with so much $$ not take care of employees?
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It’s nice that we have the option to earn the dividend rate in the 401k, and everyone should do what they are comfortable with. However, you’d have an 80% return investing in stocks (S&P 500) from 2018-2022 ytd vs. 27.5% in the short term/dividend rate plan. Of course stocks are more volatile, probably good to have both.
We usually receive a 4% match 401k match if we contribute 6%. Now we get 6% in the cash balance plan regardless of our own contributions. The extra 2% is meant to offset the lower return in the cash balance plan. Still, you’d likely be worse off after 5-10 years because the average gain in stocks would eventually beat the cash balance return (minimum of 3%) even with the extra 2%. I agree that they should reinstitute the 401k match, I’m sure some people aren’t contributing to theirs because of this. After a couple of great performance years, there is no excuse to save money this way.
Don will just make Todd march up there for the yearly benefits deduction speech and say we are looking at it for year 20xx. Like others mentioned it’s interesting the careers site still lists it, Dons faithful must of missed that for the last 3 years, doing nothing takes a lot of time you know.
Also I just can’t get out of my head Don saying you know we pay for performance. Then reading though this site and Reddit makes me laugh every time I hear the silver fox speak knowing it’s words but no intelligence behind it.
Very few things will unite NM these days, when he leaves it will be one of them.
Anyone looking for a better rate and more security in the roller coaster that has been the stock market (especially as you get closer to retirement), should have gone into the stable value fund offered in the 401(k) plan which paid 4.9% in 2018, 5% in 2019, 2020, 2021 & 2022.
Cash balance has a 1% return and a 401k lately has a 20% return. Hardly a wash.
They are currently using the $$ from the surplus in the cash balance pension to make additional contributions. If you are vested, or plan to be there long enough to vest it's more or less a wash.
Especially one that preaches the importance of retirement and savings. Do as we say, not as we do.