NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
1.
DESCRIPTION OF PLAN
The following description of the Wabtec Savings Plan (the Plan) provides only general information. Participants should
refer to the Plan document and Summary Plan Description for a more complete description of the Plans provisions.
General
The Plan, effective March 9, 1990, amended and restated effective January 1, 2013, is a contributory plan intended to comply with the provisions of
Sections 401(a), 401(k), and 401(m) of the Internal Revenue Code (the Code). Except for certain collectively bargained employees as described below, all regular United States employees of Westinghouse Air Brake Technologies Corporation
and its subsidiaries (Wabtec or the Company) are eligible to participate upon their hire date. Subject to the terms of applicable collective bargaining agreements, collectively bargained employees (1) in Wilmerding,
Pennsylvania and Greensburg, Pennsylvania are eligible to participate in the Plan upon their hire date, but those hired before October 1, 2004 are not eligible for employer contributions, (2) of Triangle Engineered Products are eligible to
participate, but are not eligible for employer contributions, (3) of Barber Spring Pennsylvania are eligible for discretionary matching and discretionary annual profit sharing contributions, and (4) in Boise, Idaho are eligible to
participate in the Plan, but are not eligible for employer contributions.
Effective January 1, 2017, employees of Faiveley Transport who otherwise
met the general eligibility provisions of the Plan are eligible to participate in the Plan. Effective as of April 16, 2017, the assets of the Faiveley Transport 401(k) Plan (the Faiveley Plan) were transferred into the Plan. The
total fair value of the net assets transferred from the Faiveley Plan into the Plan was $20,634,001.
Effective as of August 1, 2017, employees of
Aero Transportation Products, Inc. who otherwise meet the general eligibility requirements of the Plan are eligible to participate in the Plan. Effective as of July 31, 2017, the assets of the Aero Transportation Products, Inc. 401(k) Plan (the
Aero Transport Plan) were transferred into the Plan. The total fair value of the net assets transferred from the Aero Transport Plan into the Plan was $5,111,168.
Effective as of February 25, 2019, former employees of General Electric Transportation who become employees of Wabtec or its affiliate immediately upon
the completion of the transaction with General Electric Company, Transportation Systems Holding Inc., Wabtec, and Wabtec US Rail Holdings, Inc. and who otherwise meet the general eligibility requirements of the Plan are eligible to participate in
the Plan.
A committee appointed by Wabtecs Board of Directors or its authorized delegates (the Committee) is responsible for the
administration and operation of the Plan. In this capacity, the Committee selects and monitors the Plans investment options and otherwise takes such steps as may be necessary and appropriate for the effective administration of the Plan.
Contributions
Participants may contribute, through
payroll deductions, employee elective
pre-tax
and
after-tax
Roth contributions from 1% to 50% of their eligible compensation, limited to $18,500 and $18,000
in 2018 and 2017, respectively. New eligible employees are automatically enrolled in the Plan with 3% of eligible compensation contributed to the Plan as employee
pre-tax
contributions, unless such employees
elect a different contribution percentage (or elect not to contribute). This automatic enrollment provision does not apply to certain employee groups (such as certain collectively bargained employees). In addition, participants may contribute
employee
after-tax
contributions from 1% to 50% of their compensation. Participants who are 50 years of age or older during the plan year are allowed to contribute additional
pre-tax
catch up contributions, up to $6,000 annually in both 2018 and 2017. Participants total annual contributions may not exceed the contribution limits under Section 415(c) of the Code. In
addition, the combination of an employees elective
pre-tax,
Roth, and
after-tax
contributions may not exceed 50% of their eligible compensation.
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