Page 6 - American Century Retirement Plan Enrollment Guide

Employer matching contribution: The company matches 100% of your pre-tax and/or Roth 401(k) contributions up to 5% of your eligible compensation. You will not receive the employer matching contribution on your after-tax contributions. The match is contributed to your Plan account along with your contributions every pay period. Your matching contributions are immediately 100% vested.
Discretionary contribution: The discretionary contribution is based on the percentage change in the company stock price versus our publicly traded peer group and will be calculated by subtracting the 5% maximum company match from the amount in the table below. The discretionary contribution is made to your Plan account annually after the end of the year, if you meet the requirements of 1,000 hours of service and employment on the last day of the year. The discretionary contribution will vest based on your years of service as defined by the Plan using a six-year graded vesting schedule.
Employer contributions are paid on a pre-tax basis and may be taxable at withdrawal.
Vesting
You are always fully vested in your own contributions.
You are also fully vested in the company match contributions to your Plan account. The discretionary contribution will vest based on your years of service as follows:
5%
10%
15%
Total contribution (5% match + 0% discretionary)
if ranked in the bottom three companies
Total contribution (5% match + 5% discretionary)
if ranked fourth through fifteenth companies
Total contribution (5% match + 10% discretionary)
if ranked in the top three companies
Year 1
0%
Year 2
20%
Year 3
40%
Year 4
60%
Year 5
80%
Year 6
100%
For a definition of a year of service, refer to the Plan’s Summary Plan Description.
4 | American Century Retirement Plan