The Supplemental Retirement Plan (SRP) is a non-qualified retirement plan under the Internal Revenue Code, the SRP enables you to set aside additional compensation and bonus earnings on a tax-deferred (before-tax) basis—beyond what’s possible in the 401(k) Plan. In addition, Baker Hughes provides base and basic contributions on compensation not eligible to receive company contributions in the 401(k) Plan. This includes the income that you defer in the SRP and compensation above the IRS compensation limit.
Additional details on the SRP will be provided to you after you begin work at Baker Hughes or become eligible for the SRP.
You may elect to defer eligible salary each year instead of receiving that amount as current compensation. You may elect to defer from 1% to 60% of your eligible base salary during the plan year.
After your first year of participation in the SRP, you may elect to defer up to 100% of eligible bonuses earned during the plan year.
You will receive SRP company basic and base contributions equal to the sum of:
Income eligible to receive an SRP basic/base contribution is not eligible to receive a 401(k) Plan match or base contribution.
Your contributions and company basic contributions: You are always 100% vested in your contributions and related company basic contributions.
Company base contributions: You become 100% vested in company base contributions and earnings on those amounts when you:
Your investment options include a collection of Core Funds of different asset classes and risk/ reward potential, as well as Style Funds, which are pre-mixed, diversified funds that provide a quick and easy method for diversifying your investments with a single selection.
For information on each investment option, please go to your SRP account or call 1-800-230-3950.
There is no requirement that any assets of the company (including those held in any rabbi trust) shall be invested in accordance with your deemed investment elections. Your deemed investment elections are relevant solely for purposes of determining the amount of your SRP benefits.
When you enroll in the SRP, you must choose the timing of payment and method of payment for receiving your SRP benefit.
You can select the timing and method of payment.
Option 1: Receive your payment following your Separation of Service
OR
Payments made upon your Separation from Service will be made on the later of (1) the first day of the month coincident with or next following the date that is six months after the date of your Separation from Service or (2) the first day of January next following the date of your Separation from Service.
Option 2: Receive your payment on a Specified Date
Receive 100% of your vested account balance by a Specified Date. Payments made upon a Specified Date will be made no earlier than the third January following the end of the deferral election plan year. For example, for the 2022 enrollment, the earliest Specified Date that can be elected is January 2025.
Single lump-sum payment OR installments of 2–20 years.
If you do not make an election, payment will be made to you in a single lump-sum cash payment made upon your Separation from Service.
Payments made upon your Separation from Service will be made on the later of (1) the first day of the month coincident with or next following the date that is six months after the date of your Separation from Service or (2) the first day of January next following the date of your Separation from Service.
You can learn more about the SRP here.