MONTHLYSDCPENROLL - Caterpillar Inc. Supplemental Deferred Compensation Plan – Enroll by [Deadline]
 

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Subject:                Caterpillar Inc. Supplemental Deferred Compensation Plan – Enroll by [Deadline]

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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 2020 Plan Year. You can enroll in SDCP for the remainder of 2020 now through [Deadline].

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%
    (Note: This option is not available until the annual enrollment period in November)
  • 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 .

Additional resources available

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

How to make your 2020 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.

The elections you make now will automatically carry over unless you make an alternate selection during the upcoming annual enrollment window. Enrollment for the 2021 Plan Year will occur in November, so please watch for more information in the coming weeks.

Don’t plan to enroll? Think again!

Even if you choose not to defer, you should still make a payment election, as you may receive an Annual Employer Credit after the end of the year. If you do not make a payment election, your account will be paid automatically in a lump sum six months following separation from the Company.

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.