How to Use This Calculator
- Step 1 - Enter your Salary: Input your current Monthly Base Salary (before taxes). This is the number used to calculate your contribution and the company match.
- Step 2 - Choose your Contribution: Select what percentage (%) you want to save each month. Tip: Look at the "Roadmap" below to see how much the company will match at your current tenure!
- Step 3 - Enter your Years of Service: Input your Total Completed Years with the company. Note: The calculator uses this to determine your Match Tier (10%–100%) and your Vesting Eligibility (0%, 50%, or 100%).
Employee Savings Plan Roadmap
- Year 1: Your company match begins. You now earn an extra 10% on every dollar you save.
- Years 2 – 5: Your match rate climbs by 10% every year. By Year 5, the company is matching 50% of your savings.
- Year 5: The First Big Jump (vesting milestone), you are now 50% Vested. This means you officially "own" half of all company contributions made to your account.
- Years 6 – 9: Your (acceleration) match rate increases even faster by 15% every year.
- Year 10: The Gold Standard (full ownership) you hit the ultimate milestone. You are now 100% Vested and receive a 100% Company Match. Every dollar you save is instantly doubled by the company, and you own it all.
Plan Benefits
- Company Match: Every employee contribution triggers a company match, providing an immediate return on savings from the first year of service.
- Tenure-Based Rewards: Match rates increase progressively with years of service, reaching 100% at Year 10, rewarding long-term commitment with proportionally greater employer contributions.
- Automated Contributions: Contributions are deducted directly from payroll, ensuring consistent savings without manual intervention.
- Accelerating Growth: As the match rate increases over time, the compound effect of employer contributions grows significantly, doubling personal contributions by Year 10.
Disclaimer: This calculator provides estimates for illustrative purposes only. Actual balances may vary based on payroll timing and company plan rules. These results do not constitute a financial guarantee.
Employee Savings Plan Guide
Introduction
The Employee Savings Plan (ESP) allows full-time employees to contribute a percentage of their monthly base salary, providing an important source of personal savings while encouraging long-term employment. The plan offers company matching contributions that increase progressively with years of service, rewarding long-term commitment with proportionally greater employer contributions.
The plan offers company matching contributions that increase progressively with years of service, rewarding long-term commitment with proportionally greater employer contributions.
Key Terms
Understanding the following terms is essential before using this calculator.
Eligibility
Eligibility to enroll in the Employee Savings Plan is as follows.
Enrollment
Enrollment in the Employee Savings Plan is permitted on a quarterly basis. Employees must complete and sign the Employee Savings Plan Enrollment Form and submit it to the Human Resources Department on or before the applicable enrollment date.
Contribution
Employees may choose to contribute a fixed percentage of their monthly base salary. The monthly base salary excludes overtime, bonuses, allowances, and any other benefits. Changes to the contribution percentage are permitted once per year and must occur on an enrollment date.
Exit and Withdrawal Outcomes
The table below outlines what an employee receives under each exit scenario. Company contribution share eligibility is determined by completed continuous years of service at the time of exit.
Rejoining the Plan
An employee who withdraws from the plan but remains employed may rejoin the Employee Savings Plan after completing one continuous year from the date of withdrawal. Upon rejoining, the employee may either return the total withdrawal amount and continue from the original withdrawal date, or start as a new contributor to the plan.
Recommended Resources
- The savings plan is one of three long term incentive structures covered in the Long Term Incentive Calculator, which also models deferred annual bonuses and three year performance restricted stock alongside it.