According to the White House'sCouncil of Economic Advisers, almost 500 firms had announcedbonuses or pay increases by April 8, affecting more than 5.5million workers. (Photo: Shutterstock)

A majority of surveyed chief financial officers and financeexecutives expect the tightening labor market and new cash reservesresulting from a slashed corporate tax rate to lead to more wageincrease by the end of the year.

Two-thirds of 127 senior executives surveyed by Prudential andCFO Research said they expect further wage increases.

Some considerable portion of those expected increases wouldbenefit retirement savers. Over half of the executives—57percent—expect to increase matches to 401(k) plans.

Related: Benefits of tax reform windfalls keepcoming

The Tax Cuts and Jobs Act, passed on a party linevote in the Senate and signed into law last December, cut thecorporate tax rate from 35 percent to 21 percent and allowed forfull expensing of investments in business equipment.

In the ensuing months, many prominent firms announced one-timebonuses, increases in pay for lower-wage hourly workers, increasesin 401(k) matches, and additional discretionary contributions todefined benefit plans.

According to the White House's Council of Economic Advisers,almost 500 firms had announced bonuses or pay increases by April 8,affecting more than 5.5 million workers.

Other companies announced increased matches to 401(k) plans.

“We've seen client companies take advantage of the new tax lawby providing employees with increased retirement benefits,” saidMichael Knowling, Prudential Retirement's head of client relationsin a statement.

Cigna, the fifth largest health insurance payer in the countryby revenue that covers 15 million subscribers, announced apermanent increase in its company match by 1 percent for its 30,000employees. Cigna sold its retirement business to Prudential in2003. Prudential Retirement is the record keeper for Cigna's $5billion 401(k) plan.

“The net financial benefits of U.S. tax reform are anopportunity for us to continue to demonstrate our commitment to ouremployees.” said John Murabito, Cigna's executive vice presidentfor human resources, in a statement.

All of the companies surveyed by Prudential also sponsor definedbenefit pension plan for either current or former employees.Three-quarters of surveyed executives said they are likely to make“substantial” contributions to DB plans by September 15, the finaldate at which contributions can be deducted at the previous 35percent tax rate.

Eight in 10 executives said they expect the increases in wagesand benefits to improve productivity and positively impact companybottom lines.

Critics of the TCJA have argued the lower corporate tax ratewill mostly result in stock buybacks and higher dividend paymentsto shareholders, and not increased wages and benefits torank-and-file employees.

Four in 10 Respondents in Prudential's survey said they plan todo both as a result of the tax cuts, to the benefit ofinvestors—among them those employees that own company stock in401(k) plans.

Cigna's common stock accounts for 14 percent of assets in its401(k) plan, according to Brightscope. The company has notannounced a share buyback, but is currently exploring a merger withpharmacy benefits manager Express Scripts. A proposed merger withAnthem was blocked by the Department of Justice last year.

In the first quarter, $242.1 billion in share repurchases bypublic companies were announced, a record at the time that did notstand for long. The second quarter saw another $433.6 billion inshare repurchases. Goldman Sachs is predicting share repurchasescould hit $1 trillion for 2018.

Most of the finance executives surveyed by Prudential alsoexpect accelerated capital investment as a result of the TCJA,potentially spurring further economic growth—and potentiallyfurther increases in wages, notes the report.

Increases in wages and benefits are expected to translate toimproved worker financial wellness, the study says.

But how much of an improvement in aggregate financial wellnesswill not be calculable immediately. “Measurable movement on thesemetrics will require the passage of time,” the report says.