Retirement Plan Changes

Posted by Mrs Money on September 10th, 2009

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Ever since the bank I work for was bought out by another bank, there have been changes occurring. I knew that there would be, as change is inevitable. Some of the changes have been small, and some have been huge. I’ve taken it all in stride, and rolled with the punches. There’s not much more I can do besides that.

This morning we had a meeting on some of the changes to our benefits plan.  The first thing we went over was health insurance plans.  The old bank offered a high deductible health plan, and now the new bank is going to follow suit.  We’ll still have other options like PPOs and HMOs, so I’m not freaking out about that too much.  I can pick health insurance pretty easily now.

The next topic we touched on was retirement accounts and pension plans.  As it is currently, my company matches $1.15 per every dollar I put into my 401k, up to 6%.  I also have a pension plan I was grandfathered into that they put money into each month.  Very nice!  The new bank is going to be matching dollar per dollar up to 4%. Ouch.  That totally bites.  But, they are going to offer everyone a pension plan.  So, essentially I am going to be losing out.  Not only are they matching less money, but they’re matching 2% less than the old bank! Bummer.

Seeing as this is our only retirement account we actively contribute to, I think I’m just going to keep contributing at 6% and leave it alone.  I am truly disappointed that it’s occurring, but I am also happy they will be matching something.  I don’t know if their reasoning is due to the merger or the economy, but whatever the reason, I’m not pleased.

Has your employer changed your retirement plan due to the economy? 

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13 Responses to “Retirement Plan Changes”


  1. Kacie says:

    Stink!

    Shane’s company used to have a dollar-for-dollar match up to 6%. That’s now completely gone because of the economy. We’re hopeful that it will be reinstated in some form at some point. I hope!

    Are you planning on increasing your retirement contributions once your car is paid off? Or something? Cuz 6% ain’t enough for the long haul.

    [Reply]

    Mrs Money Reply:

    Ok, I don’t feel so bad now. :)

    I should increase it as soon as we pay off the car. I know you’ll think I’m crazy, but I like putting more in savings each month because I’m afraid I’ll need the money and I can’t access it if it’s in a retirement account. I’m a little neurotic. :)

    [Reply]

  2. Deirdre says:

    Hmmm… “employer”??? “retirement plan”??? What are these strange things of which you speak??? ;-)

    [Reply]

  3. Miss M says:

    That sucks, but is actually still pretty generous. I’ve never had that much of an employer match. My last company matched dollar for dollar, to 1.5%. Nope, not a joke. Then they changed it to be matched 50cents on the dollar capped at 3% (your contribution of 6%), but then their match went 50% to company stock and 50% to your asset allocation so it wasn’t really a change at all. Silly. Oh and you had zero vesting in that match until 3 years of service, I left after 2.5 and no pension or other retirement plans. Current company matches 50 cents on the dollar capped at 2% of your salary, but we have a retirement ESOP plan so no one complains. Is your job safe for now?

    PS – I hate my voice

    [Reply]

    Mrs Money Reply:

    My job is safe until February. We’ll see what happens then. I’m sure I can find something within the company- they said everyone in the branch will have a job. I hope so!

    You sound so cute. I wouldn’t worry about your voice one bit! Although, I will admit- I hate mine too. :P

    [Reply]


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