From the mailbag:
Crowe raises are occurring and effective 10/1. Wide range as low as 2% to as high as 15%. Promotion raises lower than typical 12%. No back pay or bonuses for missed time since April cuts. No 401k match.
So when we reported back in April about the hundreds of job cuts at Crowe, we were told there would be no annual salary increases for employees. Did Jim Powers change his tune?
Why were Crowe employees hoping for back pay or bonuses for missed time? We weren’t aware of any employee pay cuts, just pay cuts for partners and officers. Were some employees furloughed?
We were told in April that 401(k) matching at Crowe involves two components: company match and an “age-based” match. A source told us at that time that the firm was not contributing to the age-based portion but was still continuing with the 2.5% maximum match. Is that still the case, or did that change?
So many questions.
If any of you at the House of Powers have the answers, please enlighten us by getting in touch using the contact info below.
Related article:
Layoff Watch ’20: How Bad Were the Job Cuts at Crowe and Baker Tilly?
First hand knowledge speaking
1. Crowe paid the 2.5% 401K match at the end of June, which is the usual date.
2. The “Age-Based” contribution was not paid this year.
Crowe’s retirement plans work like this:
1. Three-years of service for vesting
2. Must be employed on 3/31 (last day of fiscal year) to receive payment
3. A single payment for both plans is made at the end of June.
The 401K match is 50 cents on the first 5% of salary. Bonus payments are not included.
The Age-Based contribution plan is strictly salary times an age factor. It’s an excellent plan for middle-age and older employees that make a high salary. For the millennial latte drinkers and TikTok generation, its not much. The age factor is low (0.53%) when you start out at 23 and slowly increases to just over 1% at age 32, 2% at 40, 3.1% at 46, 4.25% at 50, 6.2% at 55 and over 9% at age 60.