Wal-Mart ends profit sharing

[SocialistLez]

Source:http://www.todaysthv.com/news/local/story.aspx?storyid=121941&catid=2

"Wal-Mart Stores Inc., the nation's largest private employer, aims to end automatic profit-sharing contributions for its employees in a revamp of its benefits package that it says will give workers more chance to share in its financial success.

The payments added up to 4 percent to the compensation of employees who'd worked more than a year for the world's largest retailer.

A memo Wal-Mart gave The Associated Press late Friday says the discounter will replace profit-sharing starting in February with retirement plan contributions of up to 6 percent of pay -- as long as workers sign up and contribute an equal amount.

Wal-Mart also is setting aside up to $1,000 for each employee's health care account to cover eligible medical expenses before employees have to pay any deductible coinsurance. "


Notice how employees have to contribute an equal amount.

[Gman]

1. Employees contributing and company matches are kinda normal

I'm impressed and even surprised Walmart will match it 100%.

[jmbo2890]

3. up to 6% of your salary though...

the way I understood it, many companies will match any contribution.

[Gman]

5. No, not any

I forget now, but I don't think an employee can contribute before taxes more than 6% anyway. That has changed over the years and I"m not in a plan now, so I don't know off hand.

[jmbo2890]

2. From one of the former employee's of the nation's largest employer:

My specific store's annual turnover rate was roughly 40%. Its GOAL was about 60. The profit "sharing" was a joke before this. It's just another case of giving the haves more and taking more from the have-nots. :banghead:

[54anickel]

4. "...up to $1,000..." So does that mean anywhere from .01 to $1,000? Reminds me of those rip-off

weightloss ads, "lose up to 10 pounds in the first week or your money back".

Moving to the matching 401K contributions is usually done in an attempt to entice the "rank and file" workers to participate since limits on contributions allowed by "highly compensated employees" are based on the employer's overall participation rates. The sales guys at my old job were constantly "selling" the floor workers on the idea of participating when we were first getting our 401K plan off the ground. They obviously had a vested interested in a high participation rate.

[Omaha Steve]

6. How many of the bottom workers can afford 6% for a retirement account?

At least the spot light on Wal-mart is making the company to try to look better. No matter what, yo won't see me there.

K&R.