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 2022 plan year. You can enroll in SDCP for 2022 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

SDCP allows you to defer more of your pay on a pretax basis and receive matching credit, including:  

Base Pay
  • Defer up to 70% 
  • Receive matching credit (6% of the deferral amount) 
Short-Term Incentive Plan (STIP)
  • Defer up to 70% (Note: This option only applies to STIP paid beginning in 2024)
  • Receive matching credit (100% of the deferral amount up to 6% of your STIP) 
Excess Deferrals
(Base Pay above the IRS compensation limit)
  • Defer a flat 6% of your Base Pay that you can’t defer to the 401(k) plan because pay exceeds the IRS compensation limit ($305,000 in 2022, subject to annual indexing) 
  • Receive matching credit (100% of the deferral amount) 
Annual Employer Credit
(if eligible)
  • 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.

Distribution Elections

Since this is the first time you are eligible to participate in SDCP, you are encouraged to make a distribution election as to how you will receive your deferred income after you separate from service. This payment election will apply to your total account balance. You can choose from these options:

  • Receive your balance six months following your separation from service
  • Receive your balance 1 – 10 years (must be a whole number) following your separation from service

Make your election carefully — if you change your distribution election in the future, the IRS requires that your payment be delayed by a minimum of five years. In addition, you must make the change at least 12 months prior to when the original distribution was scheduled. See the additional resources below for more details. 

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. 

Additional resources available

You can receive personalized service with a professional benefit specialist through the Newport Participant Service Center. In addition, you can:

How to make your elections for 2022

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 apply to your eligible compensation earned in 2022. If you do not enroll, you will not be given the option to defer eligible compensation again until the 2023 plan year annual enrollment, assuming your eligibility continues. Enrollment ends on [Deadline].

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.