3
Petco Matching Contributions
Paws down, matching contributions are the best thing
since catnip. A matching contribution is “free money”
that Petco adds to your account each pay period
as long as you make a contribution to your 401(k)
account yourself.
Petco will match $0.50 of every dollar you contribute up
to 6% of pay (3% for Directors and above). This means
if you have a salary of $25,000 and contribute 6% to
your 401(k) account, you’ll receive a $750 matching
contribution from Petco. Be sure to contribute at least
6% of your pay (3% for Directors and above) to the plan
to get the full matching contribution from Petco.
Try Fidelity’s take-home pay calculator to help
plan your budget and determine how much you
can invest in the 401(k) Plan. Go to
in the
Guidance & Retirement
section under
Tools
& Calculators
.
Years of
Vesting Service
Percentage Vested in Petco’s
Matching Contributions
Less than 1 year
0%
1 year
20%
2 years
40%
3 years
60%
4 years
80%
5+ years
100%
The Importance of Starting Early
The sooner you start saving, the faster your account balance will grow. By saving just 6% of your pay
each pay period, you can accumulate more money for the future and retirement than you might think
possible – especially when you add Petco’s matching contribution.
Here’s an example of how the
savings can add up showing
the difference in saving for an
associate who saves for 30 years
and an associate who saves for
20 years. Our example assumes
both associates have a starting
salary of $30,000 and receive
an annual increase of 3% each
year. Both associates contribute
6% to the 401(k) Plan and Petco
contributes a 3% matching
contribution. The investment
return is 8% compounded
daily. Associate A begins saving
in year 1. Associate B begins
saving in year 10.
Vesting—You Own It!
Simply put, vesting means ownership. You always own
100% of your contributions, any rollover amounts,
and any investment earnings. This means if you leave
Petco or retire, the full value of your savings, rollovers
and investment earnings will be paid to you. You earn
ownership of company matching contributions at a rate
of 20% per year, so after 5 years you are fully vested in
Petco matching contributions.
Here’s Help
It Pays to Start Saving Sooner
$450K
400K
350K
300K
250K
200K
150K
100K
50K
$0
1 year 10 years
20 years
30 years
+$286,940
n
Associate A saves for 30 years
n
Associate B saves for 20 years
after 30 years
$452,670
after 20 years
$165,730
Free
Money
$
Free
Money
$
