Aflac will invest $250 million in the next three to five years to expand its employees’ benefits and community engagement programs following the new corporate tax rate signed into law.
The Columbus-based insurance company said in a press release Thursday that the investment, to begin next year, will also strengthen the company’s commitment to supporting childhood cancer care initiatives.
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The company will also make a one time contribution of $500 to all of its employees besides offering certain free hospital and accident insurance products to all of its employees.
Additionally, the company will increase its 401K match from 50% to 100% on the first 4% of employee contributions.
The announcement comes in the wake of the new tax law signed by President Donald Trump, which will see the corporate tax rate reduced from 35% to 21% beginning next year.
Aflac’s CEO Dan Amos said the new tax rate will provide the company an opportunity to give back to the community, increase its investments in initiatives that spur company growth and improve employee protections.
Aflac insures more than 50 million people worldwide and says it has raised more than $120 million for the research and treatment of childhood cancer.
The announcement by Aflac follows a similar one made by AT&T last week, in which the telecom giant based in Texas announced $1,000 in bonuses to more than 200,000 of its U.S. employees.
AT&T chairman and CEO Randall Stephenson said the law would “drive economic growth and create good-paying jobs.”
Boeing, WellsFargo, Fifth Third Bank and Sinclair Broadcast Group also announced employee incentives, bonuses and wage increases in the wake of the new law.