In 2023, Bank of New York Mellon is changing up the way its employees receive matching contributions to their retirement accounts.
Originally reported by the Pittsburgh Post-Gazette, BNY Mellon said it will be making a one-time matching 401(k) contribution annually rather than contributing each pay period. According to a memo the company sent to workers on the change, BNY Mellon said the annual match would be “determined after the end of each plan year and deposited by March 31 of the following year.”
The change occurs concurrently with another recent company announcement—to lay off about 3% of its workforce—or 1,500 workers—in 2023. If layoffs occur before the end of the year, its likely those employees will be ineligible for the annual matching contribution, the Pittsburgh Post-Gazette points out in their story.
In a statement to 401(k) Specialist, a BNY Mellon spokesperson said, “BNY Mellon provides a competitive benefits portfolio. This includes a newly-expanded fully paid parental leave policy of 16 weeks for all new parents, and our recent announcement to award employees company stock, while opening brokerage accounts for those who don’t have them. Our 401(k) offering is aligned with industry peers and our match continues to be highly competitive.”
The company’s 401(k) match formula, currently at 100% dollar-to-dollar up to 7%, will not change, according to the internal memo sent to company employees. BNY Mellon currently allows a maximum company match at $16,000.
The reported average 401(k) account balance for BNY Mellon stood at $215,776 in 2021, according to Post-Gazette. Participating BNY Mellon employees contributed an average of $10,243 to their retirement accounts, while the asset manager contributed $6,743 to participant retirement accounts in 2021.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.