J.P. Morgan Chase will reinstate its 401(k) company match for its U.S. employees and provide an extra award for lower-paid employees, according to a memo by the bank's human resources director, John Donnelly, obtained by P&I Daily. The match was suspended earlier this year.
According to the memo, after a recent review, “we have decided to provide a full 2009 401(k) match,” as well as a “special award” of $500 early next year to employees globally with total annual cash compensation of less than $60,000.
In addition, J.P. Morgan pledged to “continue providing a pension plan for our U.S. employees that is 100% paid for by the company.” The memo noted that the pension plan's benefits formula will be modified next year to make it “more aligned with the current market,” while noting that many other companies have either frozen or eliminated their pension plans.
At the end of 2008, J.P. Morgan Chase had $11.8 billion in defined contribution assets, while the defined benefit fund had $8.1 billion. Further information could not be learned by deadline.