All regular, full-time and permanent employees of VMware are eligible to participate in the VMware Defined Contribution (DC) Hybrid Retirement Plan.
You are eligible to join the DC Hybrid Retirement Plan after you become regular, full-time and permanent employee with VMware.
- Normal Retirement Benefit (Age 60 with at least 5 years of service): the higher of 100% of DC Balance or the statutory minimum retirement benefit
- Early Retirement Benefit (Age 50 with at least 10 years of service): Percentage of DC Balance based on the vesting factor on the corresponding years of service
|Years of Service||<10||10||11||12||13||14||15||16||17||18||19||20 or 20+|
|Vesting Factor %||0||50||55||60||65||70||75||80||85||90||95||100|
- Voluntary Separation Benefit (At least 5 years of service): Percentage of DC Balance based on the vesting factor on the corresponding years of service
|Years of Service||<5||5||6||7||8||9||10||11||12||13||14||15||16||17||18||19||20 or 20+|
|Vesting Factor %||0||25||30||35||40||45||50||55||60||65||70||75||80||85||90||95||100|
- Death / TPD Benefit: 100% of DC Balance (In addition to benefits under other company programs)
- DC Balance on Employee Contributions: The DC Balance on Employee Contributions (accumulated contributions and accumulated investment earnings/losses) is vested 100% to the employee. The specific rules on contributions and withdrawal are laid out in the Employee Contribution Guidelines.
The DC balances are collectively invested with expectation of higher return in the long term; however, VMware does not guarantee any return or that there will be no reduction of the DC balances. There may be periods where losses can be experienced.
Once the retirement plan is tax-qualified, a Normal or Early Retiree under the plan with at least 10 years of service may receive the benefits from the Employer Contribution account and any investment income from the Employee Contribution account tax-exempt. Otherwise, the benefit proceeds from Employer Contribution and any income earned by employee contributions will be subject to tax. Any and all tax due shall be for the account of the employee
VMware contribution: 7% of monthly base salary of each team member, regardless whether Employee voluntarily chooses to contribute to the Employee Contribution Fund or opted not to contribute to it.
Employee contribution: You are provided with the option to voluntarily contribute a minimum of 2% of your monthly base salary to the Employee Contribution Fund. The current range of contribution is from 2% to 7% of the monthly base salary and must be in multiples of whole percentage (i.e. 2%, 3%, 4%, 5%, 6% or 7%). If you wish to be a contributing member of the retirement plan, you are required to complete the Voluntary Employee Contributions Form and send to Payroll [VMware network access required]. You can also opt not to contribute at all as this is a voluntary contribution plan. You can change the percentage of contribution twice a year in December and in June (for new contribution effective period of January & July respectively) by completing the Voluntary Employee Contributions Form and send to Payroll [VMware network access required].
Amendment and Termination
VMware has the right to unilaterally amend, replace or terminate the DC Hybrid Retirement Plan or any of its provisions.
The content on this website is intended only to provide a summary and general overview on matters of employee benefits. We attempt to ensure the content is current, but we do not guarantee the accuracy, reliability or currency of the information. The benefits may change from time to time and we reserve the right to change and update our benefits without notice.
Contact HR Source [VMware network access required]
ASK HR [VMware network access required]
Voluntary Employee Contributions Form
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Last Updated: 16 May 2022, 4:52 PM