PepsiCo Inc., Purchase, N.Y., will add non-matching contributions of 6% to 8% of eligible compensation for some hourly employees in its 401(k) plan.
The food and beverage company disclosed the change, which is effective Jan. 1, 2023, in its 11-K filing with the SEC on June 17.
The change affects "certain eligible hourly employees who are participants in a Company-sponsored defined benefit plan," according to the 11-K filing.
The filing does not provide specific information whether this population of hourly employees currently receive any non-matching contributions. The filing says "in general," the company matches 50% of employee contributions ranging from 4% to 8% and that non-matching contributions up to a maximum of 9% are based solely on years of service.
Salaried employees are currently not eligible for any matching or non-matching contributions, until Dec. 31, 2025, when the salaried defined benefit plan will be frozen to future benefit accruals. As of Jan. 1, 2026, salaried employees will be eligible for an undisclosed level of matching and non-matching contributions.
According to PepsiCo's most recent 10-K filing, the company reorganized its U.S. defined benefit plans in 2020, which included moving certain hourly participants to a newly created plan called the PepsiCo Employees Retirement Hourly Plan (Plan H), effective Jan. 1, 2021. The reorganization, according to the 10-K filing, "facilitated a more targeted investment strategy and provided additional flexibility in evaluating opportunities to reduce risk and volatility."
The filing did not say whether that would include potentially freezing or terminating that plan.
As of Dec. 31, the PepsiCo Savings Plan had $14.3 billion in assets, according to the new 11-K filing. As of that same date, U.S. defined benefit plan assets totaled $15.9 billion, with projected benefit obligations totaling $16.2 billion, for a funding ratio of 98.1%.
Officials at PepsiCo could not be immediately reached for further information.