Citi Benefits Handbook
Eligible Pay
Your contributions to the Plan are calculated as a percentage of your eligible pay.
Eligible pay must be earned while you are an eligible employee of the Company and consists of the following:
- Base pay, plus overtime and shift differential, paid to you during the calendar year (including any Before-Tax Contributions that you make under the Plan, a cafeteria plan or a qualified transportation fringe benefit plan);
- Annual, quarterly, monthly or other performance-related cash bonuses or cash incentive awards (other than deferred cash bonuses or deferred incentive awards), if any, paid to you during such year;
- Cash commissions, if any, paid to you during such year; and
- Differential wage payments paid during military leave.
Eligible pay includes pay described above earned before your termination of employment that is paid after your termination of employment. When determining eligible pay under the Plan, your termination of employment generally is your last day worked or the last day of your notice period. Contributions may be made from your eligible pay earned before your termination of employment that is paid up to the later of the last payroll that occurs in the year of your termination or 2-1/2 months after your termination date. Severance payments are not eligible for deferral under the Plan.
Eligible pay does not include:
- Any amount included in gross income attributable to the exercise of stock options, or attributable to the vesting of a stock option, or an election under Section 83(b) of the Code with respect to an award of restricted stock;
- Payments under the Separation Pay Plan or any other severance pay;
- Sign-on or retention bonuses;
- Equity incentive awards or certain salary stock;
- Proceeds from any stock option exercises;
- Reimbursements (including car allowances), tuition benefits and payment for unused vacation;
- Cash, non-cash fringe benefits or welfare benefits (such as medical or life insurance benefits);
- Deferred compensation;
- Relocation expenses;
- Disability benefits;
- Commissions or incentive bonuses paid as an award of, and/or options for, restricted or other stock; or
- Any other extraordinary payments.
Not all of your taxable income is counted as eligible pay. Therefore, the amount of your taxable income as shown on your Form W-2 is likely to be different from your eligible pay.
The Plan does not recognize or include compensation above the limits imposed by the IRS on annual eligible pay. For 2024, this limit is $345,000; this limit is subject to increase each year for inflation in accordance with announcements made by the IRS.
If you are continuously employed by the Company but receive no compensation during a calendar year, you will have no eligible pay and will not be able to contribute to the Plan. If, for example, you are on a personal unpaid leave of absence, you will receive no pay and therefore will not be able to contribute to the Plan.