PepsiCo

the Automatic Retirement
Contribution (ARC)

PepsiCo provides most salaried employees with an Automatic Retirement Contribution, or ARC. ARC is a key component of retirement savings so it's important to understand how it works.

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If your age + service equal this: Your ARC as a percent of eligible pay is:
< 35 2%
35-39 3%
40-44 4%
45-49 5%
50-54 6%
55-59 7%
60-64 8%
65+ 9%

Overview

ARC is completely funded by PepsiCo and automatically deposited into your PepsiCo Savings Plan account.

The ARC made to your account is a percentage of your pay4 based on your age and years of service. The longer you work for PepsiCo, the higher your ARC, which will range from 2% up to a maximum of 9%. The ARC percentage will be determined on a paycheck-by-paycheck basis and will automatically increase as your age plus service increase to the next level. ARC is made beginning with your first paycheck.

You will need to make a separate investment election for ARC. If you don't make an investment election, your contributions will be invested in the Savings Plan's default investment option.

You can view your personalized ARC details on NetBenefits. To see your ARC balance and current ARC percentage, log on to netbenefits.com/pepsico and select the Savings Plan, then Summary. Here, you will see your ARC contribution percentage under Contributions. To view your ARC balance, select Show Details in the Sources section.

Eligibility

Typically, you are eligible for ARC if you are not actively accruing a benefit in a pension plan. If you are participating in a pension plan, you will stop accruing pension benefits on December 31, 2025, and become eligible for ARC on January 1, 2026.

Vesting

You will be vested in your ARC balance once you have three years of service. This means if you were to leave PepsiCo at any point before completing three years of service, you will forfeit the entire amount of ARC that PepsiCo deposited into your Savings Plan account.

Enrolling in ARC

If you are eligible for ARC, PepsiCo will automatically deposit your ARC into your PepsiCo Savings Plan account. You do not need to contribute to the Savings Plan to receive ARC.

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Total Rewards

This guide is intended to provide a summary of some of the features of the PepsiCo Savings Plan; however the official plan documents remain the final authority and, in the event of a conflict with this guide, will govern in all cases. While PepsiCo, Inc. (Company) currently intends to continue the Savings Plans and programs described herein, the Company reserves the right to amend, modify or terminate the Savings Plans or programs at any time. Nothing in this guide should be construed as a promise or guarantee of future benefits or any level or amount of benefits, or as a promise or guarantee of employment or future employment for any duration.

4 Your eligible pay is generally comprised of base pay plus annual bonus (if eligible).

January 2024