Ferrero U.S.A. 401(k) match, vesting and fees

Eligible employees are enrolled automatically with a 3% pre-tax deferral rate which automatically increases by 1% annually, not to exceed 6% of Plan compensation, as defined. Employees may opt out of the automatic enrollment, stop contributions, modify their contribution rate or type, or change their elections at any time.

Participants may borrow up to the lesser of $50,000 or 50% of their vested account balance. A participant may have up to two loans outstanding at a time. Loan repayment terms are not to exceed five years; however, loans for the purchase of a primary residence can be repaid over a reasonable period of time that may be over five years. Loans are repaid through payroll deductions and are monitored by the plan administrator. Loans are measured at their unpaid principal balance plus any accrued but unpaid interest. The loans are secured by the balance in the participant’s account and bear interest at rates commensurate with the prevailing rate as determined by the plan administrator. As of December 31, 2023, the interest rates on the outstanding loans range from 4.25% to 10.50%.