Peoples Bank, a Washington bank chain with $1.6 billion in assets under management, increased its 401(k) match by 1% and raised its minimum wage in wake of the Tax Cuts and Jobs Act of 2017.
The bank, which has 430 salaried and hourly workers at 25 locations within a few counties in Washington, announced this month it increased its 401(k) employee match to 8% of annual pay from 7% for all eligible employees. All employees over the age of 21 have access to the company’s 401(k) and its match, says Christine Lewis, vice president, director of human resources.
The 401(k) account is on a vesting schedule that increases by 20% over a five-year period, and employees are eligible for the match 90 calendar days after their start date.
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“We wanted to share in the savings from the tax reform changes,” says Michelle Barrett, chief retail banking and marketing officer. “It is a meaningful benefit enhancement for everyone. We felt that the 401(k) has the opportunity to impact everyone.”
The Bellingham, Washington-based bank also said it will raise the minimum wage to $15 an hour, from $13, on Feb. 1.
Peoples Bank joins companies including Aflac, SunTrust and Comerica Bank in the decision to invest their tax savings, which decreased to 21% from 35% under the new law, into their employee benefits.
The bank’s benefits package also include a $200 wellness reimbursement, $1,500 to full-time employees and a pro-rated amount for part-time employees for their HSAs, a choice of three medical plans and paid time off, the company says.
