|MEDTRONIC PLC filed this Form 11-K on 10/26/2017|
Medtronic Puerto Rico Employees’ Savings and Investment Plan
Notes to Financial Statements (in thousands)
1. Description of Plan
The following description of the Medtronic Puerto Rico Employees’ Savings and Investment Plan (the Plan) provides only general information. Participants should refer to the Plan document for a complete description of the Plan’s provisions.
General and Eligibility
The Plan is a contributory defined contribution plan of Medtronic plc (the Parent Company). The Plan seeks to assist employees in increasing retirement savings and financial security upon retirement. The Plan has three components: (i) a component related to participant elective deferrals and cash matching contributions by Medtronic Puerto Rico Operations Company - Puerto Rico Branch (the Company) (Traditional Component), (ii) a Retirement Plan Account (RPA) component related to additional employer contributions to a retirement account for participants in the Plan prior to May 1, 2016, and (iii) a Medtronic Core Contribution (MCC) component related to additional employer contributions to a retirement account for participants who joined the Plan on or after May 1, 2016.
Effective May 1, 2016, the Plan was restated to make amendments regarding the new MCC component of the Plan, which replaces the RPA Contributions for participants joining the Plan on or after May 1, 2016, and to amend the employer match contribution and vesting provisions. Participants joining the Plan on or after May 1, 2016 are immediately eligible to receive the MCC and will receive employer contributions equal to 3% of their eligible pay each pay period. Active participants will vest in Company matching contributions, including earnings and losses thereon, after three years of employment.
On June 15, 2014, Medtronic, Inc. entered into a transaction agreement with Covidien plc (Covidien) to acquire Covidien. The transaction was completed on January 26, 2015 and Medtronic, Inc. and Covidien were then combined under and became subsidiaries of the Parent Company. Effective January 1, 2017, legacy Covidien Puerto Rico employees became eligible to participate in the Plan. As such, on January 1, 2017, the Covidien Retirement Savings and Investment Plan for Puerto Rico Employees was merged into the Plan. As a result of the merger, the net assets of eligible participants were transferred into the Plan.
Generally, the Plan is available to all eligible regular full-time and part-time employees of the Company. Immediately upon hire, eligible employees may begin contributing to the Plan and receive employer matching contributions. Eligible employees other than regular full- or part-time employees are eligible to receive contributions after completing one year of service in a consecutive twelve-month period during which they work at least 1,000 hours of service. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
Transfers from Other Plans
On January 1, 2017, the net assets of the Covidien Retirement Savings and Investment Plan for Puerto Rico Employees were transfered into the Plan, resulting in an asset transfer of $29,954 included in the Statement of Changes in Net Assets Available for Benefits for the year ended April 30, 2017.
Administration of Plan Assets
The Qualified Plan Committee (the Committee) of the Parent Company monitors, manages, and oversees the investment choices of the Plan and provides certain other plan administrative functions. Prior to July 1, 2016, Vanguard Fiduciary Trust Company (Vanguard Trust) was co-trustee, custodian and recordkeeper for the Plan and provided participant services, education, and communication services. Effective July 1, 2016, the Committee appointed BNY Mellon (the Trustee) as co-trustee of the Plan assets. The Committee has also appointed Banco Popular de Puerto Rico as co-trustee of the Plan assets. Also effective July 1, 2016, the Committee appointed Aon Hewitt (the Recordkeeper) as Recordkeeper for the Plan and to provide participant services, education, and communication services. The Recordkeeper maintains a separate account in the name of each participant in the Plan to record the assets allocated to the participant and the earnings and losses thereon, and an allocation of administrative expenses, as defined in the Plan document. Transactions are executed by the co-trustees, as directed by the Committee in its capacity as Plan Administrator. Also effective July 1, 2016, the Plan and the Medtronic Savings and Investment Plan recommingled certain assets in the Medtronic, Inc. Master Trust Fund (the Master Trust) under custody of BNY Mellon.