Deloitte already has one of the WORST 401K plan matches of any big employer that I know of. They seem to suggest that this is made up by the pension plan "benefit" that employees receive. However, everyone who is working or has worked at Deloitte is losing money each day by their RIDICULOUSLY low interest rates on their pension funds. Even when government backed treasuries pay over 5%, Deloitte has managed to lock all our money into low paying pension plans that only pay ~3% yearly. This is money that belongs to employees, but Deloitte has locked it so that it cannot be withdrawn or even transferred to a Deloitte 401K or non-Deloitte 401K or into an IRA account up until retirement age. This would mean decades of compounded losses against inflation - meaning you would be paid pennies on every dollar you have in your own accounts. Please check your yearly pension plan statements to confirm this if you are a current or past employee (please ignore your service contribution % as that is not guaranteed as you may not be working with the firm in the future - only refer to growth on last year's funds without service contribution %) Here are some steps you can take to change this: 1. Like, comment, and popularize this post so people are made aware that Deloitte is intentionally letting people earn less than inflation (less than the safest investments like government treasuries on BILLIONS of $s in retirement funds!) 2. If you are a past or current employee, raise your voice and complain by calling into the Deloitte help desk and file tickets. Additionally, complain to Partners and Directors to change this RIDICULOUS policy that makes practitioners poorer by the day instead of building money for retirement. 3. File complaints with the Department of Labor - Employee Benefits Security Administration (ESBA) or post other federal and state agencies to whom we can complain about this issue. 4. If anyone has any media contacts, let's post a video/article in news/news video agencies or use social media like Facebook/Twitter/YouTube/Tiktok to make this viral so it damages Deloitte's reputation if they do not change this policy as soon as possible. 5. If you work at a company that procures Tax, Audit or Consulting services from Deloitte, let your current company know how Deloitte treats its employees and especially locks and undercuts retirement funds - request your leaders to not award any new contracts to Deloitte if they do not change this policy as soon as possible. 6. Share this with all new hires BEFORE they join the firm - inform them that they will lose a significant amount of money with these funds being locked away for decades and persuade them not to join Deloitte for this practice. 7. Suggest any other ideas to force Deloitte to at least allow funds to be transferred without penalty to Deloitte 401K or another employer 401K plans or allow withdrawals into IRA accounts to support retirement growth (and not stunt retirement savings against inflation)
Is Deloitte on the hook for making up the difference if the return is under 3%?
Pension?? Wow just be happy they gave you free money. I thought only government jobs get pension
Read the first line... It's a ruse of showing some money for not giving enough of a 401K match... It is nowhere close to government pension payments
It's an optional benefit that's offered to you on top of your 401k. I don't think you can dictate how much you should get or how it should be invested as long as the guaranteed minimum amount is met. This would be doable with socialist laws or unions but that doesn't exist here so...
It's NOT optional...and read the first line... The 401K match is PATHETIC! It's a way of keeping some money hidden away from employees ... Probably used by Deloitte in some other ways...maybe free money for them for decades having locked it away, but it belongs to employees, not Deloitte, but uncle D still wants to control and siphon it away as long as they can
I am ex Deloitte so quite aware of the pittance offered in the 401k match. But no other private company offers pension plans not even google. Also keep in mind 401k offerings only help Deloitte with their taxes otherwise they don't give 2 shits. Same goes for that impact day. You put in the work and Deloitte gets the tax writeoff. If you think the benefits are shit then get what you need out of Deloitte and GTFO
Following your logic, I am curious what benefit they get by offering a pension plan. Is there a tax benifit for them?
Of course there is a tax write-off for them... Potentially they "may" be getting billions in low interest loans too as kickbacks from the pension fund provider or some other financial benefit... We are talking about billions or dollars here, so a big pot means big incentives for owning, administration and loaning
Section 401(a) of the Internal Revenue Code specifies defined benefit pension plans as qualified plans. Accordingly, S-corporations, sole proprietors, and C-corporations receive a tax deduction for contributions made to the pension plan
These are just direct benefits... A lot of potential back channel benefits may be there too that we are not aware of
Deloitte is the worst company ever. They even fire just before employee will be taking their maternity leave.
Absolutely, I know so many people who were laid off before or even during maternity leaves
Okay