Liberty Mutual Group 401(k) match, vesting and fees

Employees are 100% vested in their contributions to the Plan, as well as related investment earnings. Employees become 50% vested in the Company matching contributions and applicable investment gains and losses after completing one year of vesting service and 100% vested after completing two years of vesting service.

The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan. During 2024 and 2023, automatically enrolled participants have their deferral rate set at 8% of eligible compensation.

During 2024 and 2023, “Highly compensated” employees were permitted to contribute up to 20% and 21%, respectively, of compensation (excluding short-term incentive plan bonus), with no more than 16% and 17%, respectively, of such compensation on either a before-tax or Roth after-tax basis, and up to 40% of eligible annual short-term incentive compensation.

Loans may be made to participants from the Plan through the record keeper upon electronic signature of the participant. Each loan shall bear interest at the prime rate published in the Wall Street Journal and shall be fixed for the duration of the loan. The total amount a participant may borrow is limited to 50% of the participant’s vested account balance up to a maximum of $50,000. The $50,000 limit is reduced by the highest outstanding loan balance in the prior twelve month period. The minimum loan amount is $500. Loans are repayable over a period of up to five years unless used for the purchase of a principal residence, in which case they may be repaid over a period of up to 15 years. The interest rates on loans issued were 7.75% to 8.50% in 2024 and 7.50% to 8.50% in 2023.