Last year at about this time (as the company's fiscal year was coming to a close) we were notified that there was going to be a one-time profit sharing payment made to all non-executive level employees in the company. Later in December, all of the qualified American employees got a bonus of $1400 (each country operation was responsible for coming up with a distribution plan best suited for their particular situation).
Well this year they're doing something a bit different, making a change that is being alluded to as permanent in nature and one which in the end will benefit the employees more. Again, this will be tailored to each country operation based on local policies and regulations. In the case of the US, the company is increasing the company matching to our 401k's by 50%. Starting with the first paycheck in October (which is also the first check for fiscal year 2012) the company will match, dollar for dollar, the first 6% of an employees wages (providing the employee is also contributing at least 6%) to their 401k. Currently they are matching 67 cents on the dollar for the first 6%, thus making this effectively a 4% contribution. It will now be the full 6%. In my case, this will be worth more than double last years profit sharing check (over the course of a year), and this will also be tax-exempt whereas last years money was fully taxed. Granted, you won't have the cash in your pocket, but considering that I'm only a few years away from my planned retirement, anything which increases the funds from which we'll eventually draw a 'pension' is greatly appreciated (if I weren't already maxed-out I would be contributing more anyways, so this is like having your cake and eating it as well ;-)
OCU
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