The bank is also vesting its workers in the match funds faster.
Republic Bank Chairman and CEO Steve Trager told the Louisville Courier-Journal the move was done in light of the company’s strong results last year.
Since January 1, Republic has matched 100% of employee 401(k) contributions, up from half, the newspaper said. Also, employees will be vested in the funds after two years, rather than the current six years.
The bank’s announcement is a sharp contrast to recent news reports indicating companies are cutting or suspending their matching contributions to save money during the economic downturn (see “Sears Suspends 401(k) Match in Face of Declining Sales“).