This company is circling the drain. Cutting by 1% the match. Cutting costs everywhere. You just lost whatever raise your were getting. Actually worse with the health insurance rises.
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@ds this is eveet year as it gets closer to bonus or pay raises
Asked my manager about compensation totals for next year with the 401k match lowering… she pretended like she never saw or read the email… I think next year will be worse than this one…
@dh Of course it’s intentional. This company has some pretty stupid leaders, sure, but they’re also extremely selfish, horrible people who are evil to their cores.
They never answer any questions at the end of Town Hall meetings that aren't aligned with their fake, cheerleading, self-aggrandizing production.
They are begging us to quit plain and simple!!
@dp ha! I bet they won’t have time for Q&A or won’t even bring up that question if there is time.
Wow, takes a year to get on the 401k match (which is way longer than most companies require) - now this? I made the right call to quit recently. My manager was fabricating a reason to fire me, so I just walked instead. They recently fired another employee too for "performance issues" - and I call BS on that. Heaven forbid we get severance or unemployment here. Most evil company ever.
It's just not enough for this company, they made $14,410,000,000 in profit last year and they act like it was so terrible financially and they are fine taking what little benefits they offer and cut them even more.
I think that it's a sign of the company's financial situation. Things must be pretty bad for them to pull out maneuvers like this...
Everyone please submit questions about this on the townhall today. Bombard them!
If anyone would like to share information on this with the media, you can anonymously share with me at Mansur.Shaheen@FT.com
@dg yes, per use of an AI tool since they keep pushing us to use AI tools… they are required to give 30 day notice unless not practicable (making a late decision, budget changes, or a mistake is not granted an exception) per the IRS.
@dh This is exactly what I was saying to a coworker, this is 100% what it is, squeeze people so you don't have to lay them off.
@dh it’ll lead to a death spiral.
Stock goes down, to get it back up rather than improve your product you cut costs. Cutting cost means cutting pay, benefits, bonuses. Cutting costs demoralizes staff. Demoralized staff leads to less sales and increased cost (less people going above and beyond). Less sales and higher cost leads to less revenue and lower stock. To combat that they cut more. Round and round we go.
Good leaders would invest back in their business to make it better and get their clients back. Bad leaders cut cost because it’s easier.
For a long time I have thought we have completely incompetent leaders. But to be honest, I feel like no one could be this stupid. It is so obvious that this will lead to more retention and motivation issues on the US side. It has to be intentional right? It has to be an offshoring measure to squeeze your staff until they leave.
@d2 good point. But I think they qualify under safe harbor because employee contributions automatically rise each year, 3.5% works under that plan.
However, aren't we required to receive at least a 30 day notice to any changes under safe harbor regs? Anyone well versed in this area?
Canceled the ESPP as they sc--wed with the timing of the buy. Now I am considering canceling 401k contributions. Remember that massive lawsuit about the plans a few months back?
With how little they contributed, we are better off parking it somewhere post tax!
Who knows what they will do next, but if I had to guess they will jack up the fees on all 401k plans in exchange for a better deal with the plan administrator on their end.
The US employees were told they are cutting costs across the company and they are removing our benefits and so much more to help meet these new targets but they continue to fly leaders from US to India and then some India leaders to the US which we all know is $$$$. What happened to the travel restrictions across the board? Do we just choose now what we want and don’t want when it comes to this. How is this fair? These leaders should be replaced starting with SD and then PW. Yes. I said what I said. Disappointed in SH decision to think these two were good to keep. Look how many people they are removing and have left without sending communications. What happened to MV?
Enron did that to their employees right before it collapsed
Does this impact the plans safe harbor status under IRS rules? I thought for the plan to qualify for safe harbor status they need to match a guaranteed 3% regardless of employee contribution or matching 100% of the first 3% and 50% of the next 2%
This is quite demoralizing, indeed.
Merry Christmas, management wants people to quit!
I genuinely am so disgusted by this place.
Poor pay, poor benefits, worse 401k match than McDs on 494, worse PTO accrual than the military.
boomers telling people to leave their jobs with a guaranteed paycheck when the job market is really bad "just boomer things"
It certainly feels like the sky is falling lately! So much taken away this year. I’m shocked it’s necessary to cut a benefit like that in addition to all of the layoffs. They are pintching every last penny they can.
@b0 you clearly don’t understand options. Any options given in the last 2 or 3 years are currently worthless. They are probably hope people that got them quit while they are worthless, saving the company money.
@OP Has nothing to do with the 69M lawsuit they lost, no..
@at …while they sit fat and happy on their stock options; anything they can do to make that stock rise. Ugh.
I’m in my early 60’s and just riding it out for a few more years until I can retire. But if you’re young…leave!! What more do you need to see to realize this company does not value its employees?
Hey Clowns, shove your guardhouse and EZpass up your as--s and spend the money on the people who keep the place going.
@at what else did they cut?
Its pretty telling they delivered the message from an unnamed "Total Rewards" email account instead of having a human being deliver the news of a pay cut. They're scared.
i think I earn too much for what I am asked to do anyways. I'm going Busking down at the station now.
Steve and Sandeep cut all our total compensation packages for the holidays. You cannot make this sh-t up. Is that where they are fundraising the money to castle up HQ like a military base? Ghouls.
Merry Christmas Mother F-ers! He-l, even Clark got a Jelly of the Month Club subscription.
4.5% was already low end. My kids summer job matches 3%. This place su-ks!
@ae I had my numbers flipped. It's a 22% decrease in the total amount matched.
This is ridiculous, you are now loosing money by staying here… here I was feeling bad because I’ll be quitting for a new job elsewhere while still in training for a new role I got in October…. Now I don’t feel bad quitting this company... good riddance!!!
Yeah, saw this too, but hate to say, still better than what IBM did a few year ago to is 300K+ employees. So comparing the two, UHG is still better than IBM, but its like a race to the bottom it seems...and expect more companies to do that, and wouldn't be surprised if UHG doesn't try the same at some point
IBM scrapped its traditional 401(k) match and replaced it with a Retirement Benefit Account (RBA). Before, employees could get up to ~6% of pay directly into their 401(k). Now, instead of a match, IBM gives an RBA credit of about 5% of pay and a small salary bump.
The RBA is basically a pension-style IOU. You don’t control the investments; IBM does. The balance earns a fixed 6% interest credit for the first few years, then switches to a rate tied to the 10-year Treasury yield with a floor (so think more like bond returns, not stock-market growth). You generally can’t touch it while employed—no loans, no withdrawals—only when you leave or retire can you take a lump sum or annuity.
That’s why it’s worse for employees but better for IBM:
Employees lose:
- Market upside a 401(k) match could have had
- Liquidity and control
- The strong “free money if you save” incentive
IBM gains:
- Predictable, lower-cost benefit
- Ability to use pension surplus instead of new cash
- Defers paying you until you exit
So what used to be real, investable 401(k) dollars every paycheck turned into a deferred, bond-like IOU from IBM, which is usually worth less over time than the old match would have been.