Eligible participation includes company matching contributions based on pre-tax contributions to the plan equal to 50% of the first 8% of eligible compensation. Subject to terms of plan.
1.6.ELIGIBLE COMPENSATION.“Eligible Compensation” of a Participant for any Plan Year means base pay, profit sharing and annual incentive (excluding any portion of such annual incentive payable in restricted stock units) earned by the Participant during such Plan Year, unreduced by any contributions made to such Participant’s Savings Plus Account under the VIP and by any contributions made on behalf of such Participant under a cafeteria plan and excluded from the Participant’s taxable income under section125 of the Code.Eligible Compensation does not include incentives, awards, commissions, foreign service premiums and allowances, income arising from stock options, separation pay, employer contributions to employee benefit plans, reimbursements or payments in lieu thereof, or lump sum payouts of a Participant’s unused vacation benefits.
The Company also sponsors employee savings plans under Section401(k)of the Internal Revenue Code. These plans are offered to substantially all regular U.S. employees. Beginning on January 1, 2016, for U.S. employees, the Company reduced its match on employee 401(k)contributions. For eligible employees hired prior to January1, 2009, employee 401(k)contributions of up to 5% (down from 6% prior to 2016) of eligible compensation matched in cash at rates of 45% or 60%, depending on the plan in which the employee participates. Employees hired on or after January1, 2009, receive a cash match of 100% for employee 401(k)contributions of up to 5% (down from 6% prior to 2016) of eligible compensation and receive an employer retirement income account cash contribution of 3% of the participant’s total eligible compensation. All contributions are invested in a number of investment funds pursuant to the employees’ elections. Employer contributions to the U.S. defined contribution plans were $139 million, $165 million and $153 million for 2016, 2015 and 2014, respectively. 3M subsidiaries in various international countries also participate in defined contribution plans. Employer contributions to the international defined contribution plans were $87 million, $77 million and $75 million for 2016, 2015 and 2014, respectively.