I completely understand that a lot of people whose scale of pay is higher than mine are worth more, but why does a higher income entitle their money to be LITERALLY worth more.
On a 5% match:
If I put away 15% of $1,000 ($150), I get a $50 match.
If they put away 5% of 2,000 ($100), they get $100 match
Why isn't there more yelling about this?
Does anyone with better knowledge of the law know if it's a legal requirement for 401ks to be structured like this, or if some other company could come along and make waves by setting the limit to an amount instead of percentage.
Cap the match of the higher earners a bit there by allowing the lower workers more of the budget… I haven't done the math, but with the amount of progressive companies that are shifting to better social responsibility to their workers (flexible PTO, better work life balance, etc) , I could imagine a number of them jumping on board