2. Description of the Plan (continued)
The Administrative Committee consists of certain employees of the Company and administers the Plan. Banco
Popular de Puerto Rico serves as the trustee of the Plan.
The Plan is subject to certain provisions of the Employee Retirement Income Security Act of
1974, as amended (ERISA). The Plan is designed to meet ERISAs reporting and disclosure and fiduciary responsibility requirements, as well as the minimum standards for participation and vesting. The Plan is not, however, subject to ERISAs
minimum funding standards, nor are benefits under the Plan eligible for the termination insurance provided by the Pension Benefit Guaranty Corporation.
On December 29, 2017, Becton, Dickinson and Company completed its acquisition of C.R. Bard, Inc., the parent company of the Puerto Rico Branch of Bard
Shannon, LTD. Effective January 2, 2019, the Plan changed the record-keeper and custodian from Vanguard Fiduciary Trust Company to Fidelity Management Trust Company (Fidelity).
Contributions
For the tax years ended December 31,
2019 and 2018, the maximum allowable participant contribution was $15,000 with a catch-up contribution of $1,500 for participants age 50 and older. Participants may also contribute amounts representing
distributions from other qualified defined-benefit or defined-contribution plans. The Company matches 100% up to 4% of base compensation (the match amount is based on the participants year of service) that a participant contributes to the
Plan. The Company makes an additional annual contribution, known as the Company basic contribution, in the amount of 2% of a participants base compensation at the beginning of each Plan year. Contributions are subject to certain limitations.
Participants direct the investment of all contributions into various investment options offered by the Plan. On July 1, 2010, the Plan established a discretionary contribution of 1% of pay made in the event the Company achieves certain
predetermined financial objectives.
For 2019 and 2018, the Company achieved the predetermined financial objectives and, accordingly, approved a
discretionary contribution of $175,378 and $230,471, respectively, to the Plan. Such balance is presented in the financial statements of the Plan as a part of the Company contributions receivable balance as of December 31, 2019 and 2018.
Participant Accounts
Each participants account is
credited with the participants contribution and allocations of (a) the Companys contribution and (b) Plan earnings, and charged with an allocation of administrative expenses, when applicable. Allocations are based on
participant earnings or account balances, as defined in the Plan document. The benefit to which a participant is entitled is the benefit that can be provided from the participants vested account.
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