401(k) and pension plan

Build your wealth as you build your career

Client Service Delivery - Associates, Senior Associates and Managers
At KPMG LLP, our people are our most important asset, and we recognize that attracting and keeping the best people means offering the best benefits possible. One example of the benefits you'll find at KPMG, as a full-time Client Service Delivery professional, is not one, but two tax-deferred retirement/savings plans – our KPMG Pension Plan and a 401(k) Plan with KPMG matching contributions.

Together these plans help you build your wealth, while you build your career at KPMG.

Current plan highlights include: an initial one-time $5,000 bonus credit to your Pension Plan account, in addition to annual pension credits, and effective January 1, 2007, a 75 percent match on eligible contributions you make to the 401(k) Plan.

See for yourself how it can all add up.
Take a look at the chart below. It shows the accumulated plan accounts for three employees at various ages and pay rates who begin working on January 1 of the calendar year. If, in addition to the one-time Pension Plan bonus credit and annual pension credits they receive, these employees contribute 5 percent to the KPMG 401(k) Plan, receive annual salary increases of 10 percent, and get a 5 percent annual investment return on all plan balances, their accounts would grow as shown below. If they contribute more than 5 percent of their base pay to the 401(k) Plan, their grand total will be even greater.

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Retirement

Achieving the right balance. Long-term security plus current flexibility.

While both our Pension and 401(k) Plans contribute to your long-term financial security, the 401(k) Plan also provides flexibility, and under certain circumstances you can borrow or draw from the 401(k) Plan while employed with KPMG. Individuals may take a loan from the 401(k) Plan to help purchase their first home. You may also take your vested 401(k) Plan balance with you should you leave the firm.

The KPMG Pension Plan*.

A Foundation for the future.

The KPMG Pension Plan* is a cash balance plan funded entirely by KPMG. Your participation in this plan is automatic and benefits are provided at no cost to you. You become a plan participant after one year of service from your date of hire provided you worked at least 1,000 hours during the year, and you are at least age 21.

Among the benefits you'll receive with the KPMG Pension Plan are:

  • A one-time $5,000 pension bonus credit to your plan account. At the time you become a plan participant, your plan account is credited with a one-time $5,000 bonus.
  • Annual Service Credit. In addition to the one-time credit, each year you are a plan participant KPMG will credit your account with a percentage of your base pay (within IRS limits) provided you work at least 1,000 hours during the plan year. As shown on the chart below, the percentage increases with your age and service with KPMG.
  • Annual Interest Credit. Your account also earns interest each year. The interest credit rate is based on the 30-year Treasury rate for the year (but never less than 5 percent).
  • Fully vested benefits after three years of service with the firm. Under current law effective May 1, 2008, if you have completed at least three years of service with KPMG, all of your accumulated service and interest credits, including the $5,000 bonus credit, are 100 percent vested.

The KPMG 401(k) Plan. Working together to help you save.

Just 60 days after you join the firm, you are eligible to contribute a portion of each paycheck to the 401(k) Plan (subject to certain IRS limits). Because KPMG thinks it's so important for you to save for your future, we match 75 percent of each eligible dollar you contribute to the plan, based on contributions up to 5 percent of your base pay. This gives you a matching contribution of 3.75 percent of your total base pay for the calendar year, assuming you contribute at least 5 percent and you are employed on December 31.

You are always fully vested in your own contributions (as adjusted for investment returns). This means that if you decide to leave KPMG, the portion of your account that you contributed from your own paycheck is yours to keep. As for KPMG's matching contributions, and any investment return thereon, you become fully vested in these amounts, gradually over your first five years of employment with the firm, beginning with 20 percent vesting after two years of service.

KPMG and You.
Your Financial Future.

At KPMG, we know how important it is to start working toward your financial future. Through our Pension Plan and 401(k) Plan, KPMG works with you to build your wealth. This is one of the many reasons why KPMG is a great place to work and a great place to build your career.

* The one-time $5,000 credit is applicable only to individuals hired as associates, senior associates, or managers in Client Service Delivery (staff classes 3 through 7) and who commence participation on or after May 1, 2006 (which for most employees means you are hired after April 1, 2005). All Pension Plan credits are subject to certain IRS limitations. One year of service is credited under the Pension Plan if you work at least 1,000 hours during the plan year May 1 – April 30. If re-employed with KPMG, only non-vested participants who have forfeited their prior balance receive the $5,000 pension bonus on reentry to the plan. Prior to May 1, 2008, five years of service is required to achieve full vesting in your Pension Plan account.

The description of the KPMG plan provisions discussed in this summary is for general information purposes only. The plan documents and their provisions are very detailed. If there is any conflict between the description in this summary and the legal plan document, the terms of the plan document take precedence. The matching contribution for the KPMG 401(k) plan discussed above is effective for pre-tax contributions and certain after-tax contributions made to the 401(k) plan starting on or after January 1, 2007. KPMG reserves the right to amend or terminate any benefit plan at any time in its sole discretion.