EMAIL SUBJECT LINE: GET READY! CATERPILLAR INC. SUPPLEMENTAL DEFERRED COMPENSATION PLAN 2021 ENROLLMENT PERIOD IS COMING SOON

NOTE: The enrollment period is significantly shorter than normal. Please take action by November 9, 2020.

To verify the authenticity of this email’s contents, visit Cat @Work and enter this code into the search: 2020SDCPANNUALENROLL.

As a senior leader at Caterpillar, we are pleased to offer you the opportunity to participate in the Caterpillar Inc. Supplemental Deferred Compensation Plan (SDCP) for the 2021 Plan Year. The enrollment period is October 29 – November 9, 2020.

What is SDCP?

SDCP is a pre-tax savings and wealth accumulation plan — offered to you in addition to the 401(k) plan. SDCP allows you to save significantly more on a pre-tax basis than what is allowed under the 401(k) plan, giving you a greater, immediate tax benefit. Since elections made under this plan are irrevocable, please discuss your options with your financial and/or tax advisor before you enroll.

SDCP plan features

Deferrals

SDCP allows you to defer more of your pay on a pre-tax basis, including:

Base Pay

Short-Term Incentive Plan (STIP)

Excess Deferrals

(Base Pay above the IRS Compensation Limit)

  • Defer up to 70%
  • Receive matching credit (6% of the deferral amount)
  • Defer up to 70%
  • Receive matching credit (100% of the deferral amount up to 6% of your STIP)
  • Defer a flat 6% of your base pay that you can’t defer to the 401(k) plan because it exceeds the IRS compensation limit ($285,000 in 2020, subject to annual indexing)
  • Receive matching credit (100% of the deferral amount)
  • Receive an Annual Employer Credit (if you are eligible to receive the annual employer contribution under the 401(k) plan) equal to 3%, 4% or 5% of your compensation that otherwise is not recognized in the calculation of the annual employer contribution under the 401(k) plan.

Investments

Once you make deferrals, you can invest your money in a variety of funds. Please keep in mind that Caterpillar’s Insider Trading Policy requires certain leaders to pre-clear transactions in Caterpillar stock, including changes to SDCP investment elections impacting the Caterpillar Stock Fund. If you are subject to the pre-clearance requirements under the Insider Trading Policy, please be sure to follow your normal pre-approval process before making any elections that impact your investments in the Caterpillar Stock Fund.

Why is the enrollment period significantly shorter this year?

The enrollment period aligns with the Company’s Trading Open Window, which this year runs from October 29, 2020 to November 9, 2020.

Additional resources available

You can receive personalized service with a professional benefit specialist through our toll-free client service center. In addition, you can:

Reminder about Newport Group

As a reminder, SDCP is now administered by Newport Group, our new benefit provider partner.  All options remain the same but you need to access your account and enrollment information at the new website by visiting newportgroup.com.

How to make your 2021 elections

Visit newportgroup.com to select LOGIN and Participant Access. 

  • If this is not your first time logging in to newportgroup.com (for instance, you have a balance from another employer administered by Newport Group), please use your existing login credentials to login.
  • If this is your first time accessing the website, your User ID is CAT + FirstName + LastName (for example, if your name is John Doe, you will enter CATJohnDoe); your Password is the last four digits of your Social Security number.  

Enrollment in SDCP is only offered once per year, and the opportunity for you to enroll for the 2021 Plan Year begins October 29, 2020, so please watch for more information in the coming days.

Questions?

Call the Participant Service Center at 1-800-230-3950 if you need help accessing your account or have any questions while enrolling. Representatives are available Monday through Friday from 7 a.m. to 7 p.m. Central time.