ESOP & 401(k)
UNDERSTANDING THE CHANGES
THERE ARE TWO CHANGES HAPPENING:
ESOP SHARE CONTRIBUTION 401(k) GRANT
Come September 30th, we will have allocated all of the shares in our ESOP.
Since the ESOP’s creation in 2010, we have been working toward this important milestone. This change marks a fully matured ESOP and is an exciting start to a new chapter.
Beginning January 2024, all eligible employees will begin to receive a 3% grant deposited into their 401(k) account every payroll. The 3% grant is calculated from base pay and overtime but does not include bonuses.
WHY ARE THESE CHANGES HAPPENING?
EXCITING
100% allocation of shares as of 9/30
MILESTONE IN YOUR HANDS
All shares allocated means the ownership is truly in the hands of our employees
ONGOING ANNUAL CONTRIBUTIONS
Each year we will buy back shares from former employees and will allocate them out to current employees
DIVERSIFICATION, LIQUIDITY & LOANS
The new grant provides flexibility for employees to build wealth via outside investments to strengthen their retirement fund. This is an excellent compliment to our ESOP. The grant also allows employees to access the funds as needed for loans.
NO CONTRIBUTION NEEDED
All eligible employees will receive –no requirement for employees to contribute
NO VESTING SCHEDULE
The money that’s contributed every week is yours to keep
FULFILLING OUR MISSION
We are commited to providing a path to retirement for our employee owners
YOU ASKED, WE LISTENED
Employees asked for a 401(k) contribution and have been looking for ways to build wealth beyond our ESOP
STATE OF THE BUSINESS:
Our organization is strong and profitable and continues to grow, with our latest acquisition of DB Mechanical, based out of Salt Lake City, UT. These retirement changes are not being driven by a need to cut costs because the 401(k) grant is an additional cost on a weekly basis. Our philosophy has always been to provide a meaningful retirement benefit to our employees who fulfill our mission to make this a great place to work and to create value. We’ve reached a milestone in our ESOP, having allocated all of the available shares to our employees. We want to continue providing a substantial retirement contribution and the reallocation of ESOP shares along with the 401(k) grant offer us an avenue to do that.
Please reach out to your divisions HR professionals if you have any questions that need answered. If you would like to speak to our account brokers directly we highly encourage you to reach out to our Conrad Siegel representatives to discuss your personal retirement plan and goals.
