US. American Express boosts auto-enrollment contribution rate to 6% for 401(k) plan
American Express Co., New York, is increasing the amount of automatic enrollment for participants in its 401(k) plan to a before-tax contribution of 6% of total pay, effective Jan. 1, 2022.
The company will continue its current policy of an automatic escalation rate of 1% each year until the employee contribution hits 10% of pay, it disclosed in an 11-K filing Wednesday with the SEC.
Currently, eligible employees are automatically enrolled to make before-tax contributions of 3% of total pay.
The company’s matching contribution will remain 100% of a participant’s before-tax contributions of up to 6% of total pay, the 11-K filing said.
The plan’s current record keeper is Principal Financial Group, which replaced Wells Fargo in May. Principal purchased Wells Fargo’s record keeping business in 2019.
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