SunTrust Banks Inc., Atlanta, will make a one-time contribution of 1% of pay to participants in the company's 401(k) plan, plus several other financial improvements due to the recent signing of the federal tax overhaul law, confirmed spokeswoman Sue Mallino.
The 401(k) contribution will take place March 15, regardless of how much participants put in their retirement accounts, she said in an interview. "If they don't have an account, we'll set one up for them."
SunTrust took this and other actions to "provide sustainable long-term benefits" for employees, she said. The series of changes were made due to the "expected benefits of tax reform."
SunTrust's corporate match to its 401(k) plan is unaffected by the one-time corporate contribution. The plan matches up to 6% of annual pay.
The SunTrust Banks Inc. 401(k) Plan had $2.85 billion in assets as of Dec. 31, 2016, according to its most recent Form 5500 filing.
"We believe tax reform will improve the competitiveness of American business and promote economic growth, and this gives us confidence to invest more in our company, our teammates and the communities we serve," Bill Rogers, SunTrust chairman and CEO, said in a Dec. 28 news release outlining several actions.
The company also said it would raise the minimum wage for employees to $15 an hour effective Jan. 1; raise merit-based pay for certain hourly employees, representing about 20% of the SunTrust workforce; and contribute $50 million in additional community grants "to national and local financial well-being efforts," the news release said. SunTrust will also offer $1,000 to all employees who successfully complete a "financial fitness" program — a series of interactive steps that helps employees analyze their financial circumstances and take action to improve them.