WATERS EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements for the Year Ended December 31, 2018
1 Description of Plan
The following
description of the Waters Employee Investment Plan (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plans provisions.
General
The Plan, effective August 19, 1994, was
created to provide an opportunity for eligible employees of Waters Technologies Corporation (Waters or the Company) and any eligible legally affiliated company to provide for their future financial security through
participation in a systematic savings program to which each participating employer (the Employer) also contributes. The Plan is a defined contribution plan covering substantially all employees of the Company and its affiliates who work
in the United States. The Plan is designed to take advantage of provisions of the Internal Revenue Code of 1986, as amended (the Code), which allow a participant to elect to reduce taxable compensation (subject to certain limitations)
with the amount of such reduction being contributed to the Plan by the Employer on behalf of the electing participant. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
The Plan is a Safe Harbor Plan, which provides for
catch-up
contributions by participants who have attained age 50
before the close of the Plan year, to satisfy the alternative methods of meeting nondiscrimination requirements, and redefine employer matching contributions.
Eligibility
Employees are eligible to participate and
are automatically enrolled in the Plan immediately upon their date of hire or rehire. Unless the employee elects to suspend automatic contributions, the automatic participation will commence at 3% of annual compensation and increase 1% each year
until contributions reach 6% of annual compensation.
Contributions
All participants may elect to make
after-tax
Roth 401(k) contributions through the Plan in addition to pretax
contributions.
Subject to certain limitations, participants may elect to voluntarily contribute to the Plan through payroll deductions from 1% to 60% of
their annual compensation on a pretax basis and/or on an
after-tax
basis as a Roth 401(k) contribution. Participants who have attained age 50, or who will reach age 50 during the year, may elect to make
an additional pretax contribution or Roth 401(k) contribution, or both, to the Plan of up to $6,000 for 2018, provided their regular pretax and Roth 401(k) contributions reach either the Plans limit of 30% of eligible earnings or the Internal
Revenue Service (IRS) dollar limit of $18,500 for 2018. As of December 31, 2018, participants had 30 investment options in which to direct the investment of their contributions and Company contributions. Each investment option
offers a different level of risk and expected rate of return. All contributions are subject to the limitations of the Code.
For contribution purposes,
compensation includes salary, lump sum cash payments of merit pay increases, commissions, overtime pay, shift differentials, short-term disability pay, unused vacation pay, bonuses paid under the performance bonus plan and management incentive
bonuses or certain other designated incentive plans. The Employer will match 100% of the first 6% of compensation contributed by the participant to the Plan on a combined pretax and Roth 401(k) basis. The Employer matching contribution is
effective immediately upon date of eligibility and follows the investment elections selected by the participant for employee contributions. Contributions and compensation considered for matching contribution purposes are subject to certain
limitations.
Participants direct their elective contributions into various investment options offered by the Plan, which include a self-directed
brokerage account feature and a Company stock fund, and can change their investments options on a daily basis.
Participant Accounts
Each participants account is credited with the participants contributions, any applicable Employer matching contributions and an allocation of Plan
earnings, and is charged with an allocation of administrative expenses to the extent that they are paid by the Plan. Certain administrative expenses are charged directly against participants accounts. Allocations of earnings and expenses are
based on the participant account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participants account balance.
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