The Alexander & Baldwin, Inc. Profit Sharing Retirement (PSR) Plan has been established to enable eligible employees to benefit from the Company's financial success.
Under the PSR Plan, the Company may contribute a share of its pre-tax earnings each year to the Accounts of eligible plan participants. These contributions are not considered taxable to the participant until the participant actually receives a distribution from the Account.
Participation requirements are described in the beginning of the Retirement And Investment Programs section of this Handbook. Once you become a participant, the Plan Administrator will establish a PSR Account in your name. This Account will be credited with your share of the PSR contributions, as well as any investment earnings, expenses, gains, and losses you incur.
For additional details, you should refer to the IDC Plan description as much of the information provided in that section applies to the PSR Plan as well.
Back to TopEach year, the Board of Directors of A&B determines the profit sharing contribution amount to be made to the PSR Plan, if any. The amount is based on the profitability of the Company's operations. It is therefore possible that no profit sharing contribution will be made in a given year.
Profit sharing contributions made to the PSR Plan may not...
Exceed 25% of the taxable compensation paid to plan participants during the Plan Year;
Exceed 10% of the Company's pre-tax earnings for the Plan Year; and
Be made unless the Company's net income for the year, less the amount of the PSR contribution, is equal to at least 6% of shareholder equity in the Company as of the first day of the year.
Your PSR Account will be credited each year with a share of the PSR Plan contribution made by the Company for that year, provided you are an eligible plan participant in that year. To be eligible for the PSR contribution, you must...
Complete at least 1,000 hours of service during the calendar year for which the PSR contribution is being made and remain an eligible employee on the last day of such calendar year
End your employment that year by reason of:
retirement after you reach age 55 (i.e., you must be eligible for early retirement under the A&B Retirement Plan); or
death; or
Incur a total disability* during that year.
* "Totally disabled" for the purposes of this Plan provision means, under the terms of the A&B Long-Term Disability (LTD) Plan, you are ill or injured and cannot carry out the usual duties of your job with A&B for an indefinite period of time.
In addition, if you are absent due to service in the uniformed services of the U.S., and you return to work for the Company while your re-employment rights are protected by law, the Company will credit your PSR Account with allocations to which you would have been previously entitled but for your absence.*
* This provision applies only to those returning from uniformed service on or after December 12, 1994.
Your PSR contribution share is an amount proportionate to your base salary* as compared to the total base salary of all eligible participants in the year. Since PSR contributions are made based on the affiliated company for which you work, the total base salary figure is the total of all salaries paid within your affiliated company.
* For the purposes of the PSR Plan, your base salary includes all direct and current cash compensation you receive from the Company as wages for services rendered while you were a plan participant, plus any salary reduction contributions you make to the IDC Plan and any salary reductions you authorize for the Reimbursement Accounts and/or qualified transportation benefits. It does not include any bonuses, overtime pay or commissions.
You may invest your PSR Account Funds in...
The A&B Common Stock Fund,* as well as
Any of the IDC Plan investment options listed under Your (IDC Plan) Investment Options.
* Participation in the A&B Common Stock Fund is limited to individuals who are not subject to Section 16 of the Securities Exchange Act of 1934.
You may request exchanges in or out of the A&B Common Stock Fund any day of the month. Requests received prior to 4:00 p.m. (ET) on the 15th of any month (or the previous business day if the 15th is not a business day) will be executed and shares will be purchased or sold on the succeeding 16th of a month (or the next business day if the 16th is not a business day).
Mutual Fund shares will be sold on the 15th of each month (or previous day if the 15th is not a business day) and A&B stock will be purchased on the 16th of each month (or next business day if the 16th is not a business day).
Back to TopA&B stock will be sold on the 16th (or next business day if the 16th is not a business day) of each month. The subsequent purchase into Mutual Funds will take place three business days later. This additional 3 days allows for the settlement of the stock sale at the transfer agent and the corresponding transfer of funds to Fidelity.
Shares held in the Tax Credit ESOP ("TCESOP") account continue not to be available for exchanges.
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