Print This PageU.S. Benefits - 2009
Future Financial Security
With Monsanto's Flexible Benefits, you can come to work each day knowing that "you're covered" — based on the Flex decisions you've made. But how about five, ten, fifteen years down the road? Many people these days have a highly developed sense of personal financial responsibility. They're seizing control of their own financial futures.
Monsanto Savings & Investment Plan (401(k))
One of Monsanto's most popular benefits is the Savings and Investment Plan (SIP). You have the opportunity to save up to 25% of your eligible pay in a personal savings program to which Monsanto also contributes. SIP features a tax-shelter option (commonly referred to as a 401(k) plan) which gives you significant tax advantages.
Company Match
For every dollar you save — up to and including 7% of your eligible pay — Monsanto adds 60 cents, automatically invested for you in Monsanto common stock. This is called the "Regular Company Match." We define "eligible pay" as base pay, any overtime pay, and annual cash incentive pay.
In addition to the Regular Company Match, your contributions, up to and including the first 10% of your eligible pay, could receive an additional “Performance-Based Discretionary Company Match.” The Performance-Based Discretionary Company Match depends on annual business results. Like the Regular Company Match, any performance match will automatically be invested in Monsanto common stock.
Investment Choices
You can invest among several funds and four "pre-mixed" portfolios — each with a different level of estimated risk and return. Some are conservative, some more aggressive. Fund earnings are not taxed until you take them out of the plan.
Most new employees can join SIP immediately, provided they are at least 18 years old, and Monsanto will begin matching contributions the day you begin making contributions. Each year of service earns a 20% vested right in the company's contribution of Monsanto stock. So after five years of service, you are fully vested in the Company Match. And you are always fully vested in the contributions you make to SIP.
Automatic Enrollment
Under the automatic enrollment feature, if you are eligible to participate in SIP, you will automatically be enrolled approximately 45 days after your date of hire or rehire unless you have already enrolled or “opt-out” of automatic enrollment during this 45 day period. Once you are automatically enrolled, 4% of your eligible pay will be contributed to the Plan each pay period on a before-tax basis.
The important point about this plan is this: start participating in SIP as soon as you can. Investment experts consistently emphasize this point: "starting early pays off."
Rollovers
SIP will accept a direct rollover of eligible taxable cash lump-sum payouts or partial distributions from qualified pension and defined contribution plans of previous employers. Rollovers from conduit IRAs will also be accepted.
Diversification
Once the Regular Company Match contribution or Performance-Based Discretionary Company Match have been credited to your account, you will be able to diversify by transferring any portion of your Monsanto (Employer) Stock Fund account into any of the other investment funds or pre-mixed portfolio options offered.
Pension Plan
Monsanto has a cash balance pension plan that provides annual credits to your pension account — at no cost to you.
Here's one of the most significant differences between a Cash Balance Account and a traditional pension plan: with traditional plans, the value of the benefit grows slowly at younger ages and only increases substantially as an individual approaches retirement. With a Cash Balance Account, the value grows steadily over your entire career, and you will receive periodic statements so you'll always know the value of your pension.
Each year your Cash Balance Account will earn a Contribution Credit:
| Your Age at Year End | Percent of All Eligible Pay |
|---|---|
| Under 30 | 3% |
| 30 - 39 | 4% |
| 40 - 44 | 5% |
| 45 - 49 | 6% |
| 50+ | 7% |
If your eligible pay is greater than the Social Security Wage Base (that is, the maximum amount on which you and the company pay Social Security taxes each year), an additional 3% in Contribution Credits will be made to your account each year for your eligible pay over the wage base.
Your eligible pay includes your base pay for the year, any overtime pay, and annual cash incentive pay.
Each year your account will be credited with interest, based on yields for 30-year Treasury Bonds. The interest rate will be at least 5% and no more than 10%.
Your Cash Balance Account is completely portable after three years of service. In other words, you can elect to receive the vested amount available to you whenever you leave the company. You can take it with you!
If you die while employed by the company, your beneficiary will receive the entire value of your account. You can designate any beneficiary you want. (Under traditional pension plans, death benefits would normally equal only a portion of your vested benefit and would be payable only to a spouse.)
WealthGard Financial Planning Program (US)
Under this program, all Flex benefits eligible employees have unlimited access to Ernst & Young Financial Education and Counseling professionals, financial planning tools and other resources. As an employee, there is no cost to you. The cost for this program is paid for entirely by Monsanto.
Stock Purchase Plan
The Stock Purchase Plan gives you the opportunity to purchase Monsanto common stock through payroll deductions. Monsanto neither encourages nor discourages individuals to participate in the plan. It is provided solely as a matter of convenience.
