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.
