Pepsico Retirement

The Pepsico retirement plan, first announced in June of 2008, has been postponed indefinitely. Pepsico CEO Indra Nooyi was quoted as saying that the company had “made a mistake” by suggesting that Pepsico employees should prepare for retirement. This news comes after Pepsico’s disappointing third-quarter earnings announcement, which prompted the company to close its $15 billion share buyback program and cut its dividend by 50%.

PepsiCo Retirement Savings Program

This plan started on September 1, 1980, and was made up of the “PepsiCo International Retirement Plan Trust Indenture” and the “Plan Rules.” It was later changed on September 2, 1982.

The Plan was revised and restated in its entirety, starting on October 1. The “Plan A Rules” apply to people who get contributions from PepsiCo. The “Plan B Rules” apply to people who get benefits funded by PepsiCo that are not part of the Plan.

No person who is subject to tax in the US can have the right to a benefit from the plan. It will be set as it was before they became subject to taxation. They are no longer allowed to share or receive benefits from the plan unless they leave their job before being taxed.

Effective January 1, 2010, the plan was changed. The old rules were gone. Instead, there are new ones that are now called the Plan A Rules and Plan B Rules. The Plan in this legal document is a program that lets you invest. It is called the DB Program, but it is also called PIRP-DB.

This amended and restated governing legal document will be applied to people who are in Membership from and after the Restatement Date, including any other people who get rights from and after the Restatement Date that come from current or former Membership like former Members and their Dependants and Eligible Spouses. No matter what, you will always get the same benefits from this Plan. No matter if there is a new amendment, a new restatement, or a supersession of the old Plan by this one.

The Corporation made a new type of contribution to the Plan on January 1, 2011. This is called the DC Program, and it stands for PIRP-DC. Some people on assignment outside their home country are getting help with retirement. They are judged to be too far away for them to be part of their home country’s plan, so they are getting help from the DC Plan. (ii) Some of our employees are part of a group of people who will get tax benefits. The DC Program is a separate legal document that organizes what happens with these benefits. The DC Program and DB Program, which has its own legal document, together make up our plan for these people.

Even though the Plan is not funded or secured, it is not subject to the US Internal Revenue Code and Employee Retirement Income Security Act of 1974. The benefits of an executive are the responsibility of the company they work for. The only rights the executive has is to a share in some profits. The Plan is also meant to be exempt from ERISA as a plan maintained outside of the United States for primary people who are not American and who live somewhere else.

PepsiCo has a retirement savings plan for you. It is administered by Manulife. You can have your money and focus on your financial well-being. Manulife provides you with tools that will help you reach your financial goals. They provide educational resources for your most important financial decisions. With help from the bank, you can save money and plan for what you want to do with your future.

Your savings are not protected, so don’t put them in this account if you want the government to protect them. An executive has rights from his or her employer. The employer owes him or her an obligation. An executive with no collateral can have the same rights as a general creditor. The plan is deliberate to be exempt from ERISA as long as most of the people benefiting from it are non-resident aliens of the United States.

Advantages of Your Retirement Savings Program

• A convenient way to save: Direct deposit is when money is taken from your paycheck and put into your account. Direct deposit makes it easier to save because the money will come out of your paycheck.
• Immediate tax reduction: The money you deposit into your account is taken off of the pay you get. This means that the taxes are calculated on your income. But if you make less money, like when there is no job or work, then there will be no taxes.
• Tax-deferred growth: Your money is safe in a savings account. It grows until you need it for something else, like when you retire. You might have to pay a fee for the money if you take it out before then.

  Retail plans are more expensive than other retirement accounts. They take a lot of your savings and put it into the plan. You should use an IMF because they cost less, and you will still have money for your future.

• Competitive Investment Management Fees (IMFs): You can take advantage of lower fees that are typically found with IMFs. The lower the fee, the more money is in your account, which you can use for retirement.
• Leading fund managers: Through your work with our group program, you have the ability to get in touch with the world’s leading fund managers. These people are not available to individual investors.
• Easy-to-read statements: Manulife’s account statements tell you how much money you have saved, and they give you tips and reminders to help with your retirement savings.
• Combine your savings: You can transfer your accounts at other places to your PepsiCo Retirement Savings account to get these benefits for all of your retirement savings.

Review your Investment Options

You decide how the money you put into your retirement savings is invested, and the company PepsiCo invests money on your behalf.

Target Date Funds

If you don’t want to do the work of selecting investments, or you are not good at it, then you can contribute to a Target Date Fund. You will need to choose one that matches your year of retirement.

Build Your Own Portfolio

If you would like to select which investments you want in your portfolio and feel confident about this decision, you can build your own portfolio. You can choose from a lot of investment options. These include Guaranteed Investment Accounts, Money Market, Fixed Income, Balanced, Canadian Equity, U.S. Equity, and International and Global Equity Asset Classes.

Decide How Much to Contribute

When you join your retirement savings program, put in how much money you want to put in by going to the Your payroll deductions section of the enrolment process. Go back to the Learn about your program tab in this guide. It will tell you how much you can contribute to your plan. If you are already enrolled, go to My Account > View/change my payroll deduction amount.

Retirement Benefits

Automatic Retirement Contribution

PepsiCo gives you an Automatic Retirement Contribution or ARC. This is a key part of your retirement plan. Here are the main provisions to help you understand how this benefit will work for you.

• This benefit is completely financed by PepsiCo and automatically deposited into your 401(k) account. You do not need to give to the 401(k) Plan to be eligible for the ARC.
• You will be vested in your retirement account once you have three years of work.
• You will get an ARC that is based on how old you are and how long you have worked for the company. Your ARC can be as high as 9%.
• You will get ARC (Retirement, Disability, and Survivor) on your paycheck, depending on how old you are. It will grow as you get older.

401(K) Savings Plan & Matching Contributions

The PepsiCo Savings Plan makes saving for retirement easy. You can decide how much to take from your paycheck (before or after money goes to the government) and put it in your account at Fidelity. The company will also match what you put into the account. If you give money to PepsiCo, they will give back some of your money. PepsiCo will put in 50¢ for every dollar you put in (up to 4% of your pay) as a new hire.

If you do not register the 401(k) plan, they will automatically enroll you at 4%, increasing 1% for two years. You can stop this enrollment if you want. You don’t have to be a funding expert. The plan offers a full span of investment options, from conservative funds to more aggressive ones. You can also invest in the target-date fund, which is a mix of investments that changes as you get closer to your retirement. Target date funds are professionally managed funds that invest more conservatively as you get closer to your expected retirement date.

Stock Purchase Program

You can buy shares of PepsiCo stock by having money taken out of your paycheck. The price is automatically adjusted to the market price.

• Invest $5 every week, and you will have $10 in two weeks.
• The company doesn’t collect commissions or fees on purchases or dividends.
• Once you own shares in your account, you can vote and do other things for PepsiCo.

Conclusion

Pepsico Retirement is a great resource for people of all ages. It can be tempting to think about retirement as something that will happen in the distant future, but it’s never too soon to start planning for this milestone. That’s why they offer plans, tools, and resources to help you meet your retirement goals.