Despite the fact that Delaware will give millions of dollars to JP Morgan Chase (JPMC) over the next three years, and despite record-breaking profits and the Trump corporate tax cuts, the firm just quietly reduced its pension plan contributions for future employees.
The Delaware Economic Development Office will directly support JPMC with up to $9 million in Strategic Fund grants over the next three years, to fund construction projects at JPMC’s Delaware locations. Also, the State will use the Strategic Fund to provide JPMC with $1.5 million over the next three years to support training for new hires.
Last year, JPMC had the most profitable year of any bank in history. The first quarter of 2018 was the firm’s most profitable quarter ever, at 35% over the first quarter of 2017. Further, due to President Trump’s corporate tax cuts, JPMC’s effective tax rate has dropped significantly, down 28% to 21% in the second quarter of 2018. JPMC has spent a lot of those tax savings buying back its own stocks, insisting the practice is “good for the economy as a whole.”
JPMC continues to post record profits virtually quarter after quarter, year after year. CEO Jamie Dimon was compensated with $29.5 million in 2017, a 5% increase over his 2016 compensation. Also, JPMC is demolishing its current Manhattan headquarters, and building a massive new Manhattan headquarters that will be 50 stories taller than the current one.
Yet, JPMC just cut its pension plan contributions for future employees.
Currently, for employees with 0-9 years of service, JPMC contributes 3% of employees’ annual salary to their pension; 4% for employees with 10-19 years of service; and 5% for employees with 20+ years of service. But employees hired January 1, 2019 or later will receive a 3% pension contribution, no matter how many years of service they achieve. (Existing employees are grandfathered into the current 3%/4%/5% contribution model.)
Delaware taxpayers supporting this massive, uber-successful bank with our hard-earned tax dollars deserve to know how it treats its employees.