Annual Employer Contributions
Annual contributions are fully funded by the Company.
All employees (excluding interns and co-ops) are automatically enrolled in the plan when they are hired. Employees must be on the OneBeacon payroll on the last business day of the year to receive a contribution for that year.
All annual contributions are made by the company. There are potentially two types of contributions: an annual fixed contribution and an additional variable contribution.
- Fixed contribution – 3% of eligible compensation (earned base salary plus overtime pay) up to the Social Security wage base ($137,700 for 2020).
- Variable contribution – 0% to 6% of eligible compensation (earned base salary plus overtime pay) up to the IRS defined compensation limit ($285,000 for 2020).
Typically both the fixed and variable contributions (if applicable) are made during the first quarter of the year following the calendar year for which a contribution is made. The variable contribution is determined by the Board of Directors based on to what extent the company has achieved its annual financial goals. Both the fixed and variable contributions will be invested based on the investment election each participant has on file with Vanguard.
All employees are eligible for the fixed contribution. Employees who participate in any long-term incentive plans are not eligible to receive a variable contribution.