401K Match Sample Clauses
A 401K Match clause outlines an employer's commitment to contribute additional funds to an employee's 401K retirement savings plan, typically based on a percentage of the employee's own contributions. For example, an employer might match 50% of employee contributions up to a certain percentage of their salary. This clause incentivizes employees to save for retirement by effectively increasing their savings through employer contributions, and it helps attract and retain talent by enhancing the overall benefits package.
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401K Match i. Effective April 2025, in the first week of each April, all employees with at least 1 year of service as of December 31 of the prior year, and earning less than $150,000 in W-2 wages in the prior year will be eligible for a 401(k) match.
ii. The match will be 100% of the employee 401(k) contribution the previous year, up to a maximum match of $2,500.
iii. Each year, the employee must be on payroll December 31 in order to receive the associated match payment the following April.
iv. The match will vest on a four (4) year schedule, as follows: Years of Service % < 2 25% 2+ 50% 3+ 75% 4+ 100%
v. Information detailing the Employer’s match will be provided to the bargaining unit employees once per year in April.