What does “vesting” mean for the 401(k)?

Vesting is a term used to describe the portion of your account balance that you are entitled to under the 401(k) Plan rules. You are always 100% vested in your contributions to the Plan as well as any earnings from your contributions.

If you are actively employed by Smiths Group as of February 15, 2022, company matching and core contributions (ERC), if applicable, as well as the earnings on those contributions will follow a 2-year graded vesting schedule.

• After your first year of service, 50% of the company contributions and associated earnings in your 401(k) are yours.
• After your second year of service, 100% of the company contributions and associated earnings in your 401(k) are yours.
• If you have 2 or more years of service by February 15, 2022, you are 100% vested in your 401(k).
• Employees with 3 or more years of service with Smiths Group are already 100% vested in company contributions and will experience no change.
  If you leave the Company prior to being fully vested, all unvested monies will be forfeited.