AOL chief reverses changes to 401(k) policy after a week of bad publicity

[jsr]

Source: Washington Post

AOL chief executive Tim Armstrong told employees in an e-mail Saturday evening that he was reversing the company’s 401(k) policy and apologized for his controversial comments last week.

“The leadership team and I listened to your feedback over the last week,” Armstrong wrote in his e-mail to the company. “We heard you on this topic. And as we discussed the matter over several days, with management and employees, we have decided to change the policy back to a per-pay-period matching contribution.”

The decision came after days of pressure on the company. Many employees were angered by a report by The Washington Post that retirement benefits were being changed.

The policy change would have switched 401(k) matching contributions to an annual lump sum, rather than being distributed throughout the year with every paycheck. The switch would have punished employees who quit or were fired mid-year. It would also have cost employees who stayed, since they would not see the benefits of compounding in their retirement accounts.

Read more: http://www.washingtonpost.com/business/aol-chief-reverses-changes-to-401k-policy-after-a-week-of-bad-publicity/2014/02/08/0aec4056-911f-11e3-b227-12a45d109e03_story.html

[MindMover]

1. Any business that Aol touches, I have decided to boycott ...

[Skittles]

2. they got called out on their bullshit

yes INDEED

[rurallib]

3. he'd do it again in a New York second if he thought

he could get away with it.

[blkmusclmachine]

13. +1

[bemildred]

4. Another pompous fool gets to eat crow. nt

[Iliyah]

5. What about the healthcare coveraged?

These assholes always protecting the unborned but once born they do not give a shit about them.

[valerief]

6. I still won't read Huffpo. nt

[TheBlackAdder]

7. The reason why Assholic AOL wants to pay their 401(K) at the end of the year???

It's not to keep their employees from jumping ship...


People generally stay until the new year because:


1) Companies don't like hiring new talent in November and December. They hire employees in January or February after all bonuses and perks are awarded. A late-year hire might also affect holiday pay, sick pay, etc. It also adds another employee on the roster before the new year. Now, I'm not talking temp employees--these are full-time hires.


2) Some people don't like jumping ship towards the end of the year for stability purposes.


===


AOL might be doing this because:


1) They can fire someone's ass on December 24th, giving them a nice Christmas present, knowing the employee won't even be able to tap into their 401(k) money in the event of an emergency.


2) AOL might be able to save that 1.25% interest on the money they would have lost by paying gradually through the year.


3) BONUS POOL. They can decide who to fire in December to free up money to pay out in bonuses. If the returns aren't that favorable... fire a few more staffers and that 'saved' 401(k) money can be used to fund the bonuses for executives.


===


I haven't seen many people mention these employer tricks in regards to this topic.

[anasv]

9. I got laid off once the day before I vested in pension money.

[Brigid]

11. And they thought you wouldn't notice?

[anasv]

16. I noticed.

I went all the way up the food chain, with no result.

[Gothmog]

8. Sunlight is a good thing

[daybranch]

10. Only one of 2 possible conclusions

He either is very stupid about how Obamacare affects his company or he lied? Stupidity or deceitfulness, in either case the shareholders should throw him out. Take that back, in either case he is stupid as we can see by his actions. Yep. the one percent must work harder(sarcasm!), because he is proof they are not smarter. Bye Bye Chairman.

[Zo Zig]

12. FUCK YOU

Now say "I am sorry to the individual that you singled out as being the reason why the policy was changed. Try walking in their shoes now, after what you have done. And sorry in a fucking email don't cut it scumbag."
YOU FUCKING PIECE OF SHIT!
You have no decency, and are not a member of hominid species in my estimation.

[DeSwiss]

14. WELCOME!

You've got Mail! And none of it's good!

- What a dipshit......

K&R

[OKNancy]

15. kick

[anasv]

17. now they're saying this jerk

violated healthcare privacy. There's an article in the Times that I'm too lazy to go look up again.