Profit Sharing Plan

Profit Sharing Plan

Effective January 1, 2021, the U.S. Profit Sharing Plan has been replaced with a new retirement plan — the W.W. Grainger, Inc. Retirement Savings Plan. The following information describes how the Profit Sharing Plan worked before the transition.

How It Works

  • The Profit Sharing Plan allows team members who help the company meet performance targets – especially Return on Invested Capital (ROIC) – share in a portion of the profits through annual company contributions.
  • The final company contribution under the Profit Sharing Plan will be paid out in March 2021. In addition to receiving company contributions, team members could elect to make their own 401(k) contributions through Vanguard.

Profit Sharing Plan Snapshot 

Who is eligible?

  • Profit Sharing:You are eligible to participate if you have worked 1,000 hours and are employed as of December 31.
  • 401(k):You are eligible to participate on the first day you are employed with the Company

Company profit sharing contributions

The Company Profit Sharing Plan contribution is split in two ways:

  • Part 1: The Company will automatically contribute 3% of your eligible compensation (salary, overtime, commission, bonuses) as a contribution into your plan account each pay period. This contribution will be 100% vested immediately and does not require you to make elective pre-tax 401(k) contributions. Upon hire, you will begin to see the Company 3% contribution in your Vanguard account after each pay period.
  • Part 2: The remainder of the shared profits will be an annual variable Company contribution that goes into your Vanguard account in March of the following year. This contribution is subject to a five-year gradual vesting schedule, with 20% becoming vested each year until the profit sharing is 100% vested after five years of service.

Your 401(k) contributions

  • When you enroll in the 401(k) Plan, you choose to contribute from 1% to 75% of your pay, up to annual IRS limits, on a pre-tax basis. Your contributions are 100% vested.
  • You choose how you want to invest your money among the investment choices available.
  • You can request a direct rollover of all or part of your distribution from your previous employer’s plan. A direct rollover lets you defer tax liability on your distribution and take advantage of the investments offered under the plan.

What to do

Access your Profit Sharing Plan account

For information about your account, visit Vanguard’s website by logging in to the Total Rewards portal with your Grainger username (XAXB123) and GPASS password. Or call Vanguard at 1-800-523-1188. To register for new account access, use plan number 093114.

For more information about how the Plan works, review the Profit Sharing Plan Summary Plan Description and the Loan & Withdrawal Rule Summary (access to Grainger’s network is required).

Note: Benefits may differ for team members outside the continental U.S. and Zoro team members.

For More Information

 

To learn about your investment options, change your contribution, or get information about your account, visit Vanguard’s website or call 1-800-523-1188. To register for new account access, use plan number 093114.

For more information about how the Plan works, review the Profit Sharing Plan Summary Plan Description
(access to Grainger’s network is required).

Take advantage of Vanguard’s free quarterly webinars, including “Strategies for reducing debt and saving more” available for Q3.

 

Profit Sharing

Watch a Video

Contacts

Vanguard

retirementplans.vanguard.com
1-800-523-1188

 

Resources

PSP Video

 

Contacts

When Coverage Ends

If You and Your Spouse or Domestic Partner Are Both Grainger Team Members

Resources

Special Savings Offers

Videos

Profit Savings Plan

Retirement Benefit Questions (65+/Medicare-eligible [including disabled early Medicare eligible] and pre-65 eligible retirees/dependents)

Medicare Plan Options Questions (65+ or early Medicare retirees with or without Grainger Retiree Health)

Questions

Connect with a Benefit Pro

Access the Provider Search Tool

Keep in Mind

Enroll Now

2022: Your Cost for Coverage

Contacts

When Coverage Ends

If You and Your Spouse or Domestic Partner Are Both Grainger Team Members

Resources

Special Savings Offers

Videos

Profit Savings Plan

Dear Team Member,

The last 18 months have pulled us in all sorts of directions and presented several new challenges. Many of you have had to adapt to an ever-changing lifestyle that includes homeschooling kids, working overtime, taking care of loved ones, and worrying about finances. At Grainger, we recognize the toll these changes take on your personal wellbeing. And while I’m proud to say you’ve continued to provide exceptional customer service despite these challenges, it’s just as important to put the same attention on yourself.

We want you to be your best, not only at work but at home. That’s why we’ve made some enhancements to our benefits programs to better support your emotional, financial, physical, and social wellbeing. These new programs will provide access to short-term cash, one-on-one financial coaching, or stress management support. Over the last year, we built a strong foundation of wellbeing resources to ensure you have more choice and flexibility with your benefits.

This Annual Enrollment Decision Guide will help you navigate the robust benefits that Grainger offers and support you in making your elections for 2022. Annual Enrollment will run from October 11 to 29, 2021. Now is the time for you to take action for you and your family’s wellbeing. We have more plans underway to continue to enhance our wellbeing offerings and we’re excited to share these with you soon.
As always, thank you for all you continue to do for each other, our organization, and our customers.

Stay well,
Kathleen Carroll
SVP & Chief Human Resources Officer

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