So the MEC wants to put the 1% into the retirement fund vice a pay raise. Why? I haven't seen anything explaining the advantages of this.
Caution: thread drift. If anyone answers this, maybe it should go onto a new thread.
Pro: Easier to negotiate a 1% pay raise later than a 1% increase in B Fund.
Tax deferred.
Con: 1% pay raise would result in .15% increase in B Fund, so total 1.15% raise. Hurts those who already max out retirement contribution.