US - Mellon Financial will increase the amount that it contributes to its employees' 401(k) retirement plan from January 2002.
Starting in the new year, Mellon will annually increase its 401(k) match, according to a spokesman for the Pittsburgh-based firm. In January, Mellon's contribution to the retirement plan will go up to 65 cents for every dollar that employees put in, a raise of 15 cents. The following year, that amount will go up to 75 cents.
In 2004 and subsequent years, the firm will raise its match, in as yet undetermined amounts up to $1. However, those rises will be dependant upon Mellon reaching its stated earnings goals each year. The increased contributions for 2002 and 2003 however, will be implemented regardless of earnings goals and market conditions.
Additionally, the firm is increasing the amount of money that it makes available for performance-based salary raises. From next year, the firm is increasing the pool of funds that pays for employees bonuses by 1%. The Mellon spokesman said that the firm's increased benefits package was generous, given the current economic climate.
By Geoffrey Ho
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