Schlage Lock 401(k) match, vesting and fees

Participants are vested immediately in their contributions plus actual earnings thereon. The Company’s matching contribution portion of participants’ accounts is also immediately vested. Company nonmatching contributions for participants are vested after three years of service or upon attainment of age 65, death, or disability while employed. Acquired Stanley participants are immediately vested in Company nonmatching contributions if the participant was credited with one hour of service on or after January 1, 2010 or upon attainment of age 55, death, or disability while employed.

For those employees who are eligible to participate in the Plan, the Plan includes an automatic enrollment provision whereby a new employee is automatically enrolled in the Plan approximately 30 days after date of hire with a 2% pre-tax contribution that is invested in a default investment fund defined by the Plan.

Participants may borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 reduced by their highest outstanding loan balance during the preceding 12-month period, or 50% of their eligible account balance. Participants are permitted to have one outstanding loan at any given time. Loan terms range from six months to five years; however, a loan to acquire a principal residence may be for a term of up to 15 years. Loan terms for participants merged into the Plan remain at their original loan terms. The loans are secured by the balance in the participant’s account and bear a fixed interest rate of prime plus 1.0% at the time of the loan. At December 31, 2024 and 2023, outstanding loans bore interest rates ranging from 4.00% to 10.50%.