Visa Joins Nationwide, Aflac With Boost to 401(k) Match

Employee Benefits News examines legal developments that impact the employee benefits and executive compensation employers provide, including federal and state legislation, rules from federal...

By Madison Alder

Visa Inc. joined a club of companies increasing their 401(k) matching programs in response to changes under the new tax structure.

The company said Jan. 8, it would increase the cap for its 401(k) matching program up to 5 percent of an employee’s salary. The company had a 200 percent match, $2 to every $1 an employee saves for retirement, up to 3 percent of an employee’s base pay and will continue that rate under the new cap.

“Tax reform in the United States will strengthen Visa’s competitive position globally and create new opportunities for Visa to invest in our business,” Visa told Bloomberg Law in an emailed statement.

Visa is exploring options for “long-term, sustainable investments” and “other global employee benefits and investments in our business and customers around the world,” the company said.

The credit card services provider couldn’t immediately share how many employees the change will apply to.

Companies like Nationwide Mutual Insurance Co., Aflac Inc., and Sun Trust Banks Inc. have also made increases to their 401(k) plan matching contributions in response to the Republican tax bill signed into law by President Donald Trump Dec. 22.

Nationwide announced Jan. 4, it would bump its 50 percent matching contributions up from 6 percent to 7 percent of employees’ salary. Nationwide also said it would give employees a one-time bonus of $1,000.

Aflac in late December announced it was increasing its match from 50 percent to 100 percent of the first 4 percent of employee contributions, in addition to a one time contribution of $500 per employee. On the same day, Sun Trust announced it would offer a 1 percent 401(k) contribution for all employees, in addition to the company’s match on the first 6 percent of employee contributions.

To contact the reporter on this story: Madison Alder in Washington at malder@bloomberglaw.com

To contact the editor responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com

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