BAE Systems 401(k) match, vesting and fees

Effective January 1, 2024, employees who were hired or transferred into union IBEW Local #1974 in Cedar Rapids before May 4, 2018 and became BAE Systems employees via acquisition in 2020 are eligible for a non-elective Employer contribution ranging from 1.5% to 6% depending on age. Vesting—Participants are vested immediately in their contributions plus actual earnings thereon. A participant generally becomes 100% vested in the Employer contributions immediately. However, some participants vest in Employer contributions upon completion of up to five years of service depending on the particular plan provisions that applies to the participant.

The Plan includes an automatic enrollment provision where newly eligible employees are automatically enrolled into the Plan unless the employee affirmatively elects not to participate in the Plan. The automatic enrollment provision is not applicable to collectively bargained employees unless otherwise specified in the Plan document. Automatically enrolled participants have their deferral rate set at various rates of eligible compensation with an annual auto-escalation.

Contributions—Each participant may elect to make before-tax contributions, Roth contributions, after-tax contributions, or a combination thereof for each plan year in whole percentages of 1% up to 50% of Plan compensation.

Notes Receivable from Participants—Participants may borrow from their Plan account. The minimum permissible loan amount is $1,000 and the maximum is the lesser of $50,000 or 50% of their vested account balance as of the effective date of the loan. Loans are to be repaid over a period not to exceed five years unless the loan is used to purchase the participant’s principal residence, in which case the repayment period may exceed five years.