Tax Reform: Good News For Americans’ Retirement

Companies Across America Announce ‘New U.S. Tax Legislation, Has Enabled Us To Increase Our 401(K) Match’ For Our Employees

SEN. MITCH McCONNELL (R-KY): “Every day, we hear of more ways that tax reform is immediately helping American workers, job creators, and middle-class families across the nation. But this generational reform was not designed to be a flash in the pan. We’re already seeing ways it will continue to benefit hard-working Americans years, even decades, down the road. Along with bonuses and wage increases, many of the 400-plus companies that have announced enhanced employee benefits are also significantly expanding their contributions to workers’ retirement savings accounts.” (Sen. McConnell, Floor Remarks, 3/6/2018)

‘Boosting Contributions To Retirement Plans’

FEDEX CORPORATION, 400,000+ employees: “FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act: … A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country. … more than 400,000 team members…” (FedEx Corporation, Press Release, 1/26/2018)

HONEYWELL, 130,000+ employees: “I am confident in Honeywell's future, and our ability to continue to deliver for our shareowners and our employees. Our strong performance in 2017, together with the enactment of new U.S. tax legislation, has enabled us to increase our 401(k) match in the U.S. This is a sustained, annual benefit that will provide a more secure retirement for our employees.” (Honeywell, Press Release, 1/26/2018)

ANTHEM INC., 50,000+ employees: “Encouraged by the new tax reform law, more well known employers have announced plans to boost retirement plan contributions for their workers. The most recent is Anthem Inc., which says it will make a one-time $1,000 contribution to the retirement saving accounts of more than 58,000 employees and recent retirees.” (“More Employers Raise Retirement Contributions After Tax Reform,” NAPA-net.org, 2/6/2018)

METLIFE, 50,000+ employees: “MetLife, Inc. announced today that in light of tax reform, the company will increase the investment it makes in its employees. The company will strengthen financial security for U.S. employees by increasing the minimum wage it pays, enhancing benefits, and boosting contributions to retirement plans. ... ‘As a result of tax reform, we are making a significant investment in our employees. We are enhancing pay and benefit programs and helping them develop skills that will make them more valuable members of our team,’ said Chairman, President and CEO Steven A. Kandarian.” (Metlife, Press Release, 2/12/2018)

PNC BANK, 40,000+ employees: “PNC Financial Services Group announced today it would be investing in its employees with cash, retirement fund cash and an increase in minimum pay following today’s signing of the tax reform bill. The company said it will provide an additional $1000 cash payment to 47,500 employees and $1,500 to their existing pension accounts. (“PNC Bank Announces Employee Cash bonuses After Tax Reform Bill,” CBS Pittsburgh, 12/22/2017)

CIGNA, 40,000 employees: “Cigna… today announced that the net financial benefits of United States tax reform will allow the company to further accelerate investments in our employees, our capabilities and our customers, clients, partners, and communities. Cigna Raises Minimum Wage to $16.00 an hour; Provides Additional $15 Million in Salary Raises, Largely for Front Line Employees; Adds $30 Million to Employee 401(k) Match Program.” (Cigna, Press Release, 1/31/2018)

NATIONWIDE INSURANCE, 30,000+ employees: “Employees of Nationwide Insurance found out Wednesday they’ll be seeing a big bonus and an increase in 401(k) matching from the company. In an email sent to employees, the company announced it will provide bonuses of $1,000 and increase 401(k) matching from 50 percent on the first 6 percent of employee contribution to 50 percent on the first 7 percent of employee contribution. ... The 401(k) action impacts approximately 33,000 associates.” (“Nationwide Gives Big Bonuses, Credits Tax Reform,” KCCI8, 1/3/2018)

SUNTRUST BANKS, INC., 20,000+ employees: “SunTrust Banks, Inc. is taking a series of actions to invest savings from tax reform in supporting the financial wellness of its workforce and communities. … A one percent 401(k) contribution to retirement savings for all teammates, in addition to the company's six percent match opportunity.” (SunTrust Banks, Press Release, 12/28/2017)

AUTONATION, 20,000+ employees: “… AutoNation announced plans to double its contribution to workers who save for retirement through its 401k plan… The nation’s largest auto retailer is among the companies nationwide that have been issuing bonuses to employees, boosting company contributions to retirement… The company also said it would match 50 cents of every dollar an employee contributes to the company’s retirement plan, up to 4 percent of eligible compensation. Previously, the match was half of up to 2 percent.” (“New Tax Law Means Benefits For Employees, Good Public Relations For Companies,” Sun-Sentinel, 2/28/2018)

HOSTESS BRANDS INC., nearly 20,000 employees: “Hostess Brands Inc., feeling flush after last month’s tax overhaul, will offer bonuses to workers -- including free snacks. The company, which makes Twinkies, Ding Dongs and Ho Hos, is providing its employees one-time payments of $1,250 -- with $750 in cash and $500 in the form of a 401(k) contribution.” (“Twinkie Maker's Response To The Trump Tax Overhaul: Free Snacks,” Bloomberg, 1/31/2018)

KEYBANK, 15,000+ employees: “Will contribute $1,00 to the 401(k) retirement plan of every full-time employee who makes $100,000 per year or less and $500 to the 401(k) plan of every part-time employee. (80% of workforce will receive the one-time contribution)” (“Tax Reform Allows Banks to Invest in Employees and Communities,” American Bankers Association, Accessed 2/28/2018)

VISA, 11,000 employees: “Visa? is raising its 401(k) matching for employees in response to tax reform.” (@CNBCnow, Twitter, 1/8/2018)

MASTERCARD INC., 10,000 employees: “Mastercard Inc., Purchase, N.Y., is increasing the cap on the employer match in its 401(k) plan to 10% of an employee's salary, a spokesman confirmed. Previously, the company match was 125% of employee contributions up to 6% of salary. Michael Fraccaro, chief human resources officer, announced the change in a LinkedIn post last week. He cited recent U.S. tax reform as the impetus for the change.” (“Mastercard Ups 401(K) Employer Match To 10%,” Pensions & Investments, 2/5/2018)

AFLAC, 10,000 employees: “…as a result of the recent tax reforms enacted by Congress… Effective in 2018, Aflac makes the following commitment to our U.S. workforce: Increase the company's 401(k) match, from 50% to 100% on the first 4% of employee contribution, while making a one-time contribution of $500 to every employee's 401(k) plan.” (Aflac, Press Release, 12/28/2017)

ADVANCE FINANCIAL (TN): “In response to President Trump signing the tax reform bill, Advance Financial Chief Experience Officer Tina Hodges announced that the company will be sharing tax savings with its employees and with the communities it serves. In an e-mail sent to all employees this morning, Hodges outlined three ways in which Advance Financial is passing on tax savings: 1) Increasing its 401(k) match from 3% to 5% for all employees.” (Advance Financial, Press Release, 1/5/2018)

EMPIRE NATIONAL BANK (NY): “Empire National Bank is increasing salaries by 5 percent, upping its 401(k) match program…” (“Empire National, BNB To Boost Salaries In Wake Of Tax Overhaul,” Newsday, 1/30/2018)

EBERLE COMMUNICATIONS GROUP, INC. (VA): “Increased 401(k) match from 25% to 50% for all 45 employees” (“4,000,000 Americans (And Counting) Will Receive Trump Tax Reform Bonuses,” Americans For Tax Reform, Accessed 2/28/2018)

FMS BANK (CO): “FMS Bank in Fort Morgan, Colo., increased its 401(k) match by an additional percentage point in 2018.” (“After Tax Reform, Chase Announces $20B Investment In Workforce, Loan Growth,” ABA Banking Journal, 1/23/2018)

WESTERN ALLIANCE BANCORPORATION (AZ): “Phoenix-based Western Alliance Bancorporation is raising the base pay of the lowest-paid half of its workforce by 10 percent, including both base pay and bonus, as well as increasing its 401(k) match.” (“After Tax Reform, Chase Announces $20B Investment In Workforce, Loan Growth,” ABA Banking Journal, 1/23/2018)

F.N.B. CORPORATION: “F.N.B. Corporation today announced a significant financial commitment to both its employees and the communities it serves relating to the signing of the Tax Cuts and Jobs Act of 2017. … FNB will also provide a discretionary, one-time 401(k) contribution, totaling $1 million, to the vast majority of employees based upon analysis of compensation levels and eligibility.” (FNB Corporation, Press Release, 1/18/2018)

NEW HUDSON FACADES (PA): “‘We raised wages, yes,’ said Allen Cohen, managing partner of New Hudson Facades, of the approximate 5 percent raise given to employees. ‘In addition to that, Related Companies [a partner company] has given every factory employee, $3,000 in their 401(k).’” (“Toomey Visits Delco Factory To Tout GOP Tax Overhaul,” WHYY, 2/20/2018)

IDEXX LABORATORIES INC. (ME): “IDEXX Laboratories Inc. Maine's largest publicly traded company, on Thursday announced plans to share the benefits of federal tax reform with employees by paying more into their retirement plans. For every dollar a 401(k) participant contributes, the Westbrook-based company will match that amount dollar-for-dollar up to 5% of an employee's salary.” (“IDEXX Boosts Retirement Contributions In Wake Of Tax Reform,” MaineBiz, 2/2/2018)

MOUNTAIRE CORPORATION (DE): Ronald M. Cameron, Chairman “I have also decided to make significant improvements to our 401k savings plan. Effective November 1, 2018, Mountaire’s 401k match will be increased to 100% of the first 3% invested, and 50% of the next 2% invested. And also, effective November 1, 2018 you will be given immediate vesting on 401k matching monies. All these improvements are being done because of the Tax Reform and Tax Cut passed by the Republicans in Congress and signed into law by our President.” (Ronald M. Cameron, Letter To Employees, 1/26/2018)

NEXSTAR MEDIA GROUP, INC. (TX): “Effective April 1, 2018, the Company match for 401k contributions will be increased from 25% to 50% of the first 6% of contributions.” (Nexstar Media Group, Letter To Employees 1/17/2018)

PEOPLES BANK (WA): “In response to the newly passed tax reform legislation, Peoples Bank today announced new investments in its employees. Specifically, Peoples Bank will raise the minimum wage to $15 for all hourly employees, effective February 1, 2018, and will increase its 401K match one point to eight percent for all eligible employees, effective immediately.” (Peoples Bank, Press Release, 1/8/2018)

PENSKE AUTOMOTIVE GROUP, INC.: “Penske Automotive Group, Inc., an international transportation services company, announced today that it has enhanced the company's U.S. 401(k) savings plan by increasing company matching contributions from 1.5% to 2.5% of eligible contributions, representing an increase of 67%.  The increase will provide a recurring, annual benefit to our employees. ‘The recently enacted tax reform positively impacts our business, presenting us with even greater opportunities to pursue our strategic initiatives, invest in our employees and improve shareholder value,’ said Penske Automotive Group Chairman Roger S. Penske.” (Penske Automotive Group, Press Release, 1/31/2018)

PILGRIM BANK: “$1,000 contribution to the 401(k)s of all full-time non-officers; $500 contribution to the 401(k)s of all part-time employees.” (“Tax Reform Allows Banks to Invest in Employees and Communities,” American Bankers Association, Accessed 2/28/2018)

WESTERN ALLIANCE BANCORPORATION: “Increasing 401(k) match from 50% of an employee’s contribution up to 6% of pay to 75% of an employee’s contribution up to that same level.” (“Tax Reform Allows Banks to Invest in Employees and Communities,” American Bankers Association, Accessed 2/28/2018)

SKYWEST AIRLINES: “There have been numerous questions and much publicity surrounding recent significant tax reform becoming effective this year. As it has now been signed into law, SkyWest plans to ensure employees enjoy the legislation’s benefits through increased Performance Rewards and 401(k) discretionary contributions.” (SkyWest, Memo To Employees)

SUIT-KOTE CORPORATION (NY): “Paul Walts is getting a raise this year, thanks to the GOP tax plan. So is Louis Morgan. So are about 800 other employees at Suit-Kote Corporation. The Cortland paving company is doling out raises and retirement bonuses using money saved from the new Republican-led tax plan. … The company also increased its 401K contributions by about $1 million.” (“CNY Paving Company Dishes Out Raises, Credits Them To GOP Tax Plan,” Syracuse, 2/22/2018)

TRI-STATE TRAILER SALES, INC. (OH): “We were very motivated that President Trump and Congress made the tax reform decision to benefit the American People and the Businesses they work for. I look at all our employees as a big TEAM, its management and ownerships job to coach our team making sure everyone has the necessary tools to be successful in their position, we have done a good job at this and will continue to do so which has enabled us effective January 1st 2018 to implement an increased 401(k) match from approximately 25% to now 100% on the first 4% of compensation.” (Tri-State Trailer Sales, Inc., Message To Employees)


Related Issues: Taxes, Tax Reform, Middle Class, Economy