401(k) and pension plan

Building your wealth as you build your career

At a time when many corporations are reducing their benefits, KPMG is actually increasing the opportunities for you to build your wealth. In addition to our generous pension plan, we have transformed our 401(k) plan into one of the best wealth-creation vehicles in the profession. This is because, at KPMG LLP, our people are our most valued assets.

As a full-time employee, these plans offer you a jumpstart on building your future wealth while you build your career at KPMG. The plans have been developed to provide you both long-term security and flexibility for your shorter-term needs, such as borrowing from the 401(k) Plan balance to purchase your first home.

Current Plan highlights include an initial $5,000 credit to your Pension Plan account in addition to annual pension credits and a 75 percent match on eligible contributions you make to the 401(k) plan.

KPMG and You.

At KPMG, we know how important it is to start working toward your financial future, even if you're just beginning your career. Through our Pension Plan and 401(k) Plan, KPMG works with you toward building your wealth. This is one of the many reasons why KPMG is a great place to work and a great place to build your career.

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The KPMG 401(k) Plan. Working together to help you save.

KPMG provides you with a way to save for the future — our KPMG 401(k) Plan. Just 60 days after you join the firm, you are eligible to contribute a portion of each paycheck to the 401(k) Plan (subject to certain IRS limits). Because KPMG thinks it's so important for you to start saving for your future now, we match 75 percent of each eligible dollar you contribute to the plan, based on contributions of up to 5 percent of your base pay. This gives you a matching contribution of 3.75 percent of your total base pay for the calendar year, assuming, of course, you contribute at least 5 percent and you are employed by December 31. We encourage all our employees to take the maximum advantage of the plan, by contributing at least the full 5 percent.

You are always fully vested in your own contributions (as adjusted for investment returns). This means that if you decide to leave KPMG at some point, the portion of your account that you contributed from your own paycheck is yours to keep. You become vested in KPMG's matching contributions and any investment return thereon gradually over your first five years of employment with the firm, beginning with 20 percent vesting after two years of service, 40 percent after three years, 60 percent after 4 years and then 100 percent after 5 years.

The KPMG Pension Plan*.

A rock solid benefit.

The KPMG Pension Plan* is a cash balance plan funded entirely by KPMG. Your participation in this plan is automatic and benefits are provided at no cost to you. You become a plan participant after one year of service from your date of hire provided you worked at least 1,000 hours during the year and you are at least age 21.

Among the benefits you'll receive with the KPMG Pension Plan are:

  • A one-time $5,000 pension bonus credit to your plan account. At the time you become a plan participant, your plan account is credited with a one-time $5,000 bonus.
  • Annual Service Credit. In addition to the one-time credit, each year you are a plan participant KPMG will credit your account with a percentage of your base pay (within IRS limits) provided you work at least 1,000 hours during the plan year. As shown on the chart at right, the percentage increases with your age and service with KPMG.
  • Annual Interest Credit. Your account also earns interest each year. The interest credit rate is based on the 30-year Treasury rate for the year (but never less than 5 percent).
  • Fully vested benefits after three years of service with the firm, effective May 1, 2008. If you leave the firm before completing three years of service you forfeit your plan account. But if you complete three years of service with KPMG, all of your accumulated service credits and interest credits including the $5,000 pension bonus are 100 percent vested and cannot be forfeited.

Achieving the right balance. Long-term security plus current flexibility.

While both our pension and 401(k) plans contribute to your long-term financial security, the 401(k) Plan also provides current flexibility. You may access your 401(k) Plan balances while employed through a loan or hardship withdrawal, and may take your vested 401(k) Plan balance with you should you leave the firm.

* The one-time $5,000 credit is applicable only to individuals hired as associates, senior associates, or managers in Client Service Delivery (staff classes 3 through 7) and who commence participation on or after May 1, 2006 (which for most employees means you are hired after April 1, 2005). All Pension Plan credits are subject to certain IRS limitations. One year of service is credited under the Pension Plan if you work at least 1,000 hours during the plan year May 1 – April 30. If re-employed with KPMG, only non-vested participants who have forfeited their prior balance receive the $5,000 pension bonus on reentry to the plan. Prior to May 1, 2008, five years of service is required to achieve full vesting in your Pension Plan account.

The description of the KPMG plan provisions discussed in this summary is for general information purposes only. The plan documents and their provisions are very detailed. If there is any conflict between the description in this summary and the legal plan document, the terms of the plan document take precedence. The matching contribution for the KPMG 401(k) plan discussed above is effective for pre-tax contributions and certain after-tax contributions made to the 401(k) plan starting on or after January 1, 2007. KPMG reserves the right to amend or terminate any benefit plan at any time in its sole discretion.