Exelon matches 60% of the first 5% of a participant's eligible pay contributed to their 401k plan per pay period, leading to a maximum annual fixed match of 3% of the participant's eligible pay.
Understanding Exelon's 401k Fixed Match
Exelon offers a "fixed match" contribution to its employee savings plan, designed to encourage employees to save for retirement. This match is calculated based on a percentage of the employee's eligible pay and their contribution amount.
Here are the key details of Exelon's 401k match:
- Match Rate: Exelon matches 60 cents for every dollar an employee contributes.
- Employee Contribution Threshold for Match: This match applies to the first 5% of an employee's eligible pay that they contribute to the plan. Contributions beyond 5% of eligible pay do not receive an additional company match under this fixed match structure.
- Maximum Company Match: The maximum annual fixed match an employee can receive is 3% of their eligible pay. This maximum is reached when an employee contributes at least 5% of their eligible pay (60% of 5% = 3%).
How the Match Works: Practical Examples
To illustrate how Exelon's 401k match functions, consider the following scenarios:
| Employee Contribution (% of Eligible Pay) | Exelon Match Calculation | Exelon Match (% of Eligible Pay) |
|---|---|---|
| 1% | 60% of 1% | 0.6% |
| 3% | 60% of 3% | 1.8% |
| 5% | 60% of 5% | 3% |
| 8% (or any amount ≥ 5%) | 60% of the first 5% | 3% (maximum) |
As demonstrated, to receive the full 3% company match, an employee needs to contribute at least 5% of their eligible pay to their 401k. Any contributions above this 5% threshold are not matched by Exelon under this fixed match plan, though they still contribute to the employee's overall retirement savings.
