Pentair, Inc. Retirement Savings and Stock Incentive Plan
Plan Overview
Pentair, Inc. Retirement Savings and Stock Incentive Plan (Plan) is a defined contribution profit-sharing plan with a cash or deferred arrangement under IRC Section 401(k) and an employee stock ownership plan (ESOP) component. The plan covers employees of Pentair, Inc. and its U.S. subsidiaries, with Pentair plc as the sponsor and administrator. Fidelity Management Trust Company serves as the trustee. The plan is subject to ERISA and offers various investment options, including Pentair common stock, mutual funds, common/collective trusts, and stable value funds. Participants direct their investments and may change options daily.
Participation and Contributions
- Participation is available to full- and part-time employees aged 18 or older.
- Employee contributions are limited to 50% of pre-tax and 15% of after-tax compensation, with a combined limit of 65%.
- The maximum contribution limit is $23,000 (2024) and $22,500 (2023), with additional catch-up contributions for employees aged 50 or older.
- Automatic enrollment is available at a 5% deferral rate, increasing by 1% annually until 10%.
- Employee contributions are matched at 100% of the first 5% of eligible compensation.
- Nonvested account balances of terminated employees are forfeited and can be used for administrative expenses or future contributions.
Investments and Fees
- Investments are valued at fair value, with Level 1 (quoted market prices) and Level 2 (observable inputs) being the primary methods.
- Participant loans are allowed with interest rates ranging from 4.25% to 9.75% and maturity dates from 2025 to 2045.
- Administrative expenses are paid by the sponsor and participants.
- Excess contributions are recorded as a liability and remitted to participants in subsequent years.
Financial Statements
- As of December 31, 2024, the plan's total assets were $909,951,597, with investments at fair value totaling $901,232,118.
- The net assets available for benefits were $909,951,597, reflecting an increase of $87,275,119 for the year.
- Major additions included employee contributions ($38,291,569), employer contributions ($19,706,037), and rollover contributions ($4,253,870).
- Benefits paid to participants were $120,666,293, and administrative expenses were $489,639.
Key Data
- Total assets: $909,951,597 (2024) and $822,680,369 (2023)
- Net assets available for benefits: $909,951,597 (2024) and $822,676,478 (2023)
- Increase in net assets: $87,275,119 (2024)
- Benefits paid: $120,666,293 (2024)
- Participant loans: $8,719,479 (2024) and $7,977,938 (2023)
Conclusion
The Pentair, Inc. Retirement Savings and Stock Incentive Plan has demonstrated strong financial performance, with significant growth in assets and net assets available for benefits. The plan's investment strategy and participant contributions have contributed to its success, while the company's matching contributions and low administrative expenses have further enhanced benefits for participants. The plan remains compliant with tax regulations and continues to provide valuable retirement savings options for employees.
