Citi Benefits Handbook
Company Contributions
Company Matching Contributions
If you are eligible for a Company Matching Contribution, the Company will contribute $1 for each $1 that you contribute to the Plan up to a maximum of 6% of your annual eligible pay (Catch-up Contributions are not eligible for Company Matching Contributions).
To be eligible for a Company Matching Contribution you must be eligible for the Plan as described under Eligibility with at least one year of employment, as determined under Plan rules.
Company Matching Contributions will be made on Before-Tax Contributions and/or Roth After-Tax Contributions (other than Catch-up Contributions) up to 6% of eligible pay.
Your Company Matching Contributions will be based on the portion of annual eligible pay earned after you satisfy the service requirement for the Company Matching Contribution.
  • If you terminate employment voluntarily or involuntarily, you will receive any Company Matching Contribution you have earned; you need not be employed on December 31 to receive a Company Matching Contribution.
  • Contributions are posted annually and will generally be posted by the end of the first quarter.
If you are a full-time or part-time employee who is immediately eligible for the Plan as described under "Eligibility and Enrollment": You are eligible for Company Matching Contributions the first of the month following the month when you have completed at least one full year of employment.
If you are a part-time employee who is scheduled to work fewer than 20 hours per week and who becomes eligible for the Plan: You are eligible for Company Matching Contributions when you become eligible for the Plan as described under Eligibility, on July 1 or January 1 following the date on which you become eligible to be a Plan participant, provided that you have completed at least one full year of employment.
Examples:
Example
If Your Annual Eligible Pay Is...
And Your Annual Contribution Is...
The Company's Matching Contribution Is...
1.
$75,000
6% of your eligible pay in Before-Tax and Roth After-Tax Contributions — $4,500
6% of your eligible pay — $4,500
2.
$75,000
10% of your eligible pay in Before-Tax and Roth After-Tax Contributions — $7,500
6% of your eligible pay — $4,500
3.
$275,000
10% of your eligible pay in Before-Tax and Roth After-Tax Contributions (contributions to the Plan would stop once the contributions totaled $18,000 for the year, due to IRS limits)
$16,200, which is 6% of $270,000
Eligible pay is limited under IRS rules (for 2017, the limit is $270,000); as a result, Company Matching Contributions are limited as well.
4.
$50,000
25% of your eligible pay to the Plan with contributions starting in November. Your contributions are taken in November and December for a total contribution of $2,083.
$2,083, which represents a dollar-for-dollar match on your annual contributions up to 6% for your annual eligible pay
5.
$75,000 for 2017
You are hired by the Company June 1, 2016, as a full-time employee. You become eligible for the Company Matching Contribution July 1, 2017.
6% of your eligible pay for 2017 — $4,500
6% of the eligible pay you earn during the six months of 2017 in which you are eligible for the Company Matching Contribution ($75,000 x (6 ÷ 12) = $37,500). Your Company Matching Contribution for 2017 is 6% of $37,500, or $2,250.
6.
$30,000 for 2017
You are hired by the Company July 5, 2016. You will become eligible for the Company Matching Contribution August 1, 2017.
6% of your eligible pay for 2017 — $1,800
6% of $12,500 or $750. You will receive a Company Matching Contribution that is equal to the lesser of the amount you've contributed to the Plan or $750, the maximum Company Matching Contribution based on your eligible pay earned after you attained a year of service ($30,000 x (5 ÷ 12) = $12,500).
Important Notes about Company Matching Contributions
Your Company Matching Contribution for a Plan Year is based on the contributions you make during the entire Plan Year and therefore, you may vary your contribution amount throughout the year and still be eligible for the maximum Company Matching Contribution. As long as you contribute at least 6% of eligible pay based on your eligible compensation for the entire Plan Year you will receive the maximum match.
Company Matching Contributions are invested in the same investment options as your Before-Tax Contributions. If you do not have a before-tax investment direction on file, your Company Matching Contributions will be invested in the Plan's Default Investment Alternative, which is the Plan's "target retirement date fund" consistent with your projected year of retirement. If you are contributing to the Plan on a Roth after-tax basis, your Company Matching Contribution will be invested in the Plan's Default Investment Alternative, unless you have a Roth after-tax investment direction on file.
Company Fixed Contributions
If you are a full-time or part-time employee who is immediately eligible to participate in the Plan as described under Eligibility: You may be eligible for a Company Fixed Contribution starting the first of the month following the month in which you attain one year of continuous employment as an eligible employee.
If you are a part-time employee who becomes eligible for the Plan: You may be eligible for a Company Fixed Contribution starting the first of the month following the month in which you become a Plan participant, provided you have one year of continuous employment.
You are eligible for the Company Fixed Contribution for the year if you have met the service requirement and:
  • Your qualifying compensation, as defined by the Plan, for the year is $100,000 or lower; and
  • You are employed by the Company, or are on an authorized leave of absence (but are not receiving salary continuation or other form of severance pay), on December 31 of the year; and
  • You are not employed as a Financial Advisor, Producing Assistant Branch Manager, Producing Branch Manager, or Producing Sales Manager on December 31 of the year; and
  • You are not grandfathered in the Citibank, Associates, or State Street formulas of the Citigroup Pension Plan.*
* If you lose your grandfathered status because you terminated employment and subsequently were rehired, you may be eligible for a Fixed Contribution based upon the eligibility requirements as determined by the Plan.
Here is how the Company Fixed Contribution works if you are a participant who is eligible for a Fixed Contribution:
  • A Company Fixed Contribution of up to 2% of eligible pay will be made to the accounts of eligible participants after the end of the year; for example, the 2017 contribution will be contributed to your account in 2018; contributions will generally be posted by the end of the first quarter;
  • You must be employed by the Company or on an authorized leave of absence on December 31 of the Plan Year;
  • You do not need to contribute to the Plan to receive a Company Fixed Contribution;
  • Your Company Fixed Contributions will be invested in the same investment options as your Before-Tax Contributions.
If you do not have a before-tax election on file, any Company Fixed Contributions that you may receive will be invested in the Plan's Default Investment Alternative. You can transfer your contribution to any of the Plan's available investment options at any time, subject to trading restrictions imposed by the individual funds or by the Plan. Contact the Plan as described under "How to Contact the Plan" if you want to know more about the investment options and/or to exercise these rights.
Your completed years of service as of December 31 of the current calendar year determine the level of your Company Fixed Contribution:
  • If you have completed at least one but fewer than two years of service under the Plan as of December 31, you are eligible for a Company Fixed Contribution of 1% of eligible pay.
  • If you have completed two or more years of service as of December 31, you are eligible for a Company Fixed Contribution of 2% of eligible pay.
  • Only your eligible pay earned after the first day of the month after you have satisfied the eligibility requirements for the 1% and 2% Company Fixed Contributions, respectively, will be considered in calculating the Company Fixed Contribution.
If you are otherwise eligible for a Company Fixed Contribution but are not employed by the Company on December 31 of the current year due to your death, disability, termination of employment after attaining age 55, or because of your involuntary termination of employment (other than for gross misconduct or substantial failure to perform your duties), you may still receive a Company Fixed Contribution for that year based on your eligible pay up to the date your employment was terminated. If you lose your grandfathered status because you terminated employment and subsequently were rehired, you may be eligible for a Fixed Contribution based upon the eligibility requirements as determined by the Plan.
Determining Your Qualifying Compensation
When determining your eligibility for the Company Fixed Contribution, the Plan looks at your "qualifying compensation" as determined by the Company for that year in accordance with its administrative rules. For example, for the Company Fixed Contribution for 2016 that is made in March 2017, your "qualifying compensation" for 2016 will be used.
Qualifying compensation for a year (the "current year") is the sum of:
  • Base pay as of June 30 of the current year, excluding any shift differential, as annualized (for participants hired or re-hired after June 30, regular base salary as of hire date will be annualized);
  • Commissions, if any, paid during the year prior to the current year;
  • Cash bonuses (other than the cash portion of any annual discretionary award package), if any, paid during the year prior to the current year;
  • Annual discretionary awards, if any, earned for the year prior to the current year and paid in cash during the current year;
  • The nominal value of annual discretionary equity or deferred cash awards, if any, the amount of which was determined in recognition of performance for the year prior to the current year and awarded in the current year;
  • Short-term disability benefits paid in the year prior to the current year, for commission-paid employees only.
For new hires who are eligible employees in Citi Markets and Global Wealth Management groups, the amount of any guaranteed bonus will be included in the calculation of your qualifying compensation.
Qualifying compensation does not include:
  • Overtime;
  • Shift differential;
  • Pay for employment not covered by the Plan;
  • Sign-on or retention bonuses;
  • Proceeds from any stock option exercises;
  • Reimbursements, tuition benefits, and payment for unused vacation;
  • Cash and non-cash fringe benefits;
  • Deferred compensation earned in a prior year and paid in the current year;
  • Disability benefits (except as described above);
  • Severance pay; and
  • Relocation expenses
Company Transition Contributions
The Company will make an annual Company Transition Contribution to the Plan accounts of eligible employees whose total annual benefit opportunity from the Company, under (1) the cash balance formula of the Citigroup Pension Plan as in effect for 2007, (2) the 401(k) matching contribution in effect for 2007, and (3) the equity-based Citigroup Ownership Program, exceeded the total of the maximum Matching Contribution and Company Fixed Contribution percentages under the current Plan design. See "Appendix B — Company Transition Contributions" for more information on eligibility for Company Transition Contributions.
If you are eligible for an annual Company Transition Contribution, you would have received a personalized report in 2007 showing how your Company Transition Contribution percentage, if any, was calculated. Refer to your report for details of the calculation.
Here is how the Company Transition Contribution works:
  • The Company performed a one-time calculation in 2007 to determine the percentage of your annual eligible pay that it will contribute as your annual Company Transition Contribution;
  • The Company Transition Contribution is made to your account after the end of the year; for example, the 2017 contribution will be contributed to your account in 2018; contributions will generally be posted by the end of the first quarter;
  • You do not need to contribute to the Plan to receive a Company Transition Contribution;
  • Your Company Transition Contributions will be invested in the same investment options as your Before-Tax Contributions.
You must be employed by the Company or on an authorized leave of absence on December 31 of the Plan Year to receive a Company Transition Contribution for that Plan Year.
If you do not have a before-tax investment election on file with the Plan, any Company Transition Contributions that you may receive will be invested in the Plan's Default Investment Alternative. You can transfer your contribution to any of the Plan's available investment options at any time, subject to trading restrictions imposed by the individual funds or by the Plan. Contact the Plan as described under "How to Contact the Plan", if you want to know more about the investment options and/or to exercise these rights.
If you are otherwise eligible for a Company Transition Contribution but are not employed by the Company on December 31 of the current year due to your death, disability, termination of employment after attaining age 55, or because of your involuntary termination of employment (other than for gross misconduct or substantial failure to perform your duties), you will receive a Company Transition Contribution for that year based on your eligible pay up to the date your employment was terminated.
If you terminate employment and are subsequently rehired by the Company, you are no longer eligible to receive a Company Transition Contribution. However, you may be eligible for a Company Fixed Contribution if you meet the eligibility requirements described under "Company Fixed Contributions."
Other Company Contributions
Aetna Supplemental Company Contribution
As part of the merger agreement between Travelers Property Casualty and Aetna Casualty & Surety, the Plan provides a supplemental company contribution to certain former Aetna employees. See "Appendix C — Other Company Contributions" for a description of this Company Contribution.
One-Time Shearson Transition Contribution
The Plan provides for a one-time employer contribution to the accounts of certain former employees of Shearson Lehman. See "Appendix C — Other Company Contributions" for details on this Company Contribution.
The Aetna Supplemental Contribution and the One-Time Shearson Transition Contribution are invested according to the investment elections you have on file for contributions to your Before-Tax Contribution Account. If you do not have a before-tax election on file (for example, if you are making only Roth After- Tax Contributions), contributions to your Company Contribution Account or One-Time Shearson Transition Contribution Account will be made to the Plan's Default Investment Alternative.
You can transfer these contributions to any of the Plan's available investment options at any time, subject to trading restrictions imposed by the individual funds or by the Plan. Contact the Plan as described under "How to Contact the Plan", if you want to know more about the investment options and/or to exercise these rights.
Contributions for Participants Returning after Qualified Military Service
If you return to employment following a period of Qualified Military Service, you will be permitted to make additional Before-Tax Contributions, Roth After-Tax Contributions and Catch-Up Contributions, up to the amount that you would have been permitted to make if you had continued to be employed and received pay during the period of Qualified Military Service. Company Matching Contributions on any additional Before-Tax and Roth After-Tax Contributions you make will be made as outlined above. Generally, you may make these contributions to the Plan over a period that is no greater than the lesser of three times the period of your Qualified Military Service or five years. The amount of these additional contributions cannot exceed the amount that you could have contributed if you had continued to be employed by the Company during your Qualified Military Service.
In addition, if you would have been eligible for Company Fixed and/or Company Transition Contributions or any other Company Contributions, the Company will make these contributions on your behalf to the Plan upon your return to employment.
"Qualified Military Service" is any period of time for which you are absent for military service under leave granted by the Company or required by law, provided you return to employment while your right to re-employment is protected by law.