Procter and Gamble Master Retirement Plan is a defined benefit corporate pension fund established for employees of Procter & Gamble and its wholly-owned subsidiaries since 1982, featuring profit sharing as well as death and disability benefits to participants. State Street Bank & Trust Company currently acts as trustee for this fund.
Procter and Gamble Company’s 401(k) plan offers its employees a range of investment options, such as target-date funds, mutual funds and company stock. Employee contributions are matched up to 3% of total compensation and additional tools and resources are made available for financial planning purposes. In addition, Procter and Gamble stock investments may also be made tax free through this plan.
Fifting of participant account balances occurs when they leave before becoming fully vested in a profit-sharing plan. Any forfeitures from this process should typically be reallocated among remaining accounts in an equitable fashion that does not discriminate based on funds already in those accounts or employer contributions that have already vested. According to IRS requirements, any forfeitures must be allocated without discriminatory bias.
At retirement time, a participant’s pension depends on several factors including years of service and current pay. Generally speaking, the longer someone has worked at their company, the larger his or her pension will be. Furthermore, interest rate fluctuations can have an impactful influence on this benefit which could increase or reduce lump-sum payments.
Sometimes retirees opt to return to work for their company as either owners or salaried staff members after retiring, whether as owners or salaried positions. While such actions won’t have a detrimental effect on its finances, consideration must be given as to any additional income sources and health status issues such as working beyond normal retirement age reducing Social Security benefits.
Considerations should also be given to how much stock an employee holds in Procter and Gamble for their 401(k), the more their overall financial wellbeing will rely on the performance of this one company – particularly if its stock price fluctuates frequently. Concentrating wealth in one stock is riskier than spreading it across a diversified index of stocks and bonds. By age 70 1/2, individuals must begin taking minimum distributions from retirement plans and traditional IRAs regardless of need; some Procter and Gamble employees choose to withdraw money gradually so as to spread out tax liabilities over several years.