The agreement creates a new employer contribution of 5% of an employee's annual wages, according to a summary of terms provided by Mr. Rothenberg earlier this month. Also, he said the agreement would increase the matching contribution to 100% of employee contributions of up to 6% of wages for 2022, and afterward match between 70% and 100% of employee contributions of up to 6% of wages, depending on company profits.
Current employees hired after Oct. 1, 1997, and future employees will now have the choice of entering the Deere & Co. hybrid defined benefit/defined contribution plan or the newly enhanced 401(k) plan, the summary said. The summary did not provide further information on the nature of the future employees.
According to Deere & Co.'s most recent 11-K filing for its John Deere Tax Deferred Savings Plan for Wage Employees, as of Oct. 31, 2020, the company currently provides a matching contribution to employees hired Oct. 1, 1997, of generally equal to 60% of employee contributions of up to 6% of wages. Exceptions are 50% for John Deere Horicon Works employees in Wisconsin hired prior to Oct. 1, 1998, 65% for John Deere Horicon Works employees hired on or after Oct. 1, 1998, and 75% for John Deere Commercial Products employees. No stand-alone contribution is mentioned in the 11-K filing.
Also as of Oct. 31, 2020, the John Deere Tax Deferred Savings Plan for Wage Employees had $1.1 billion in assets.
Deere & Co. spokesman Ken Golden could not be immediately reached for comment.
