|MEDTRONIC PLC filed this Form 11-K on 10/26/2017|
Participants direct their contributions into various investment options offered by the Plan. The participants may change their investment decisions at any time by contacting the Recordkeeper. However, any funds exchanged out of the Interest Income Fund must remain invested in another investment alternative for a period of at least three months before being moved to the Vanguard Inflation-Protected Securities Fund: Institutional Shares. In addition, participants who exchange any amount out of a mutual fund must wait 30 calendar days before exchanging back into the same fund.
Employer matching contributions are based on each participant's 401(k) Component contributions, up to 6% of eligible compensation, and are made each pay period in the amount of 50% of these contributions. At the end of the Plan year, the Company may make an additional matching contribution for each dollar participants contribute, up to 6% of eligible compensation (True-Up Contribution). The True-Up Contribution is based upon the achievement of certain Company performance goals and is made in the discretion of the Company. Participants must be employed by the Company on the last day of the Plan year in order to receive the True-Up Contribution, if any. This employment requirement does not apply to those participants that prior to the year ended April 30 have died or have had termination of employment either on or after the participant (i) attained age 55 and completed ten years of service or (ii) attained age 62 regardless of years of service. Participants direct the investment of their Company matching contributions into the same investment options available for their elective contributions. The Company’s matching cash contributions to participants’ 401(k) Component accounts were $168,393, net of forfeitures, for the year ended April 30, 2017.
During the year ended April 30, 2017, the Company offered a voluntary early retirement program (the Program) to certain eligible participants of the Plan. Participants were eligible to participate in the Program if they met all of the following requirements: they were age 59 or older on March 1, 2017; they had been actively employed by the Company for at least 90 days as of March 1, 2017; they participated in the MCC or PIA under the Plan or another eligible Medtronic retirement plan; they did not transfer to the Company in conjunction with the Heartware acquisition; they were not entitled to severance benefits (whether voluntary or involuntary) under any Medtronic severance plan; and they were not members of the Executive Committee. For those participants who elected the MCC or PIA account benefit, the Program allowed for participants to receive an additional contribution to their MCC or PIA in an amount equal to 25 percent of eligible compensation paid from May 1, 2016 through April 30, 2017 to their MCC or PIA. Participants who elected to participate in the Program became fully vested in all benefits under the Plan and became eligible to begin receiving benefits immediately upon retirement. The Company’s cash contributions to Program participant accounts were $3,889 for the year ended April 30, 2017.
Prior to May 1, 2005, participants received employer matching 401(k) Component contributions into their ESOP Employer Match Accounts in the Plan and received an annual employer contribution to their ESOP Regular Accounts in the Plan. These ESOP contributions were made in shares of Medtronic, Inc. common stock. On January 26, 2015, Medtronic, Inc. common stock was converted to Medtronic plc ordinary shares. Refer to "General and Eligibility" section for additional information. Participants may diversify ESOP accounts to any of the 401(k) Component investment choices at any time. At April 30, 2017 and 2016, the balance of the ESOP accounts was $360,240 and $381,388, respectively.
The Company contributes an amount equal to 5% of eligible compensation to those participants electing the PIA. Participants direct the Company contributions to any of the PIA investment choices consisting of the same investment options offered under the 401(k) Component. Contributions made by the Company are allocated to the participants' PIA following the last day of the year ended April 30 and are based upon eligible compensation for the year ended April 30. Beginning in the 2013 Plan year, only participants that are employees of the Company as of the last day of the fiscal year are eligible for these contributions. This employment requirement does not apply to those participants that prior to year ended April 30 have died or have had termination of employment either on or after the participant (i) attained age 55 and completed ten years of service or (ii) attained age 62 regardless of years of service. For the year ended April 30, 2017, the Company contributed $54,765 to participants’ PIA accounts.
Effective January 1, 2016, the PIA option is no longer offered to new hires. Participants who previously elected PIA were grandfathered into the Plan and will continue to receive the benefits.