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Citing Tax Reform, More Firms Boost Benefits

Despite that old saying about the cobbler’s children having no shoes, benefit firms are getting into the spirit of boosting benefits in the wake of tax reform.

The latest to announce plans is MetLife, Inc., which announced Feb. 12 that, “in light of tax reform, the company will increase the investment it makes in its employees.”

With regard to retirement benefits, MetLife says it is introducing a $300 minimum monthly credit for the cash balance formula of the company’s DB plan, regardless of the employee’s pay. Additionally, the firm says it is enhancing the 401(k) plan design by moving to auto-enrollment for employee contributions and immediate eligibility for, and vesting in, employer matching contributions – changes the firm says are not scheduled to take effect until 2019.

MetLife said that its enhanced programs for all eligible U.S. employees also include:


  • establishing a company minimum wage of $15 an hour;

  • establishing a minimum company-provided group life insurance benefit of $75,000, regardless of the employee’s pay (previously, the benefit was set at one times annual pay); and

  • extending company-paid group legal services offered through MetLife’s Hyatt Legal Plans. Currently approximately one third of MetLife employees in the United States are enrolled in this voluntary benefit, according to the firm.


Insperity ‘Inspired’

Last week, Insperity, Inc., which provides HR and business performance solutions, announced one-time bonuses to its employees “made possible through the U.S. tax reform act recently signed into law.”

The amount of the bonuses will range from $1,000 to $4,000 per employee, depending upon the employee’s tenure with the company, according to a press release. The bonuses total approximately $9 million and will not be awarded to the management team and other senior leaders.

Other firms that have announced retirement plan enhancements in the wake of tax reform include Visa, Nationwide, SunTrust Bank and Aflac, as well as MasterCard, Hostess Brands and Anthem.

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