Retirement & Investments

Incentive Savings Plan (ISP) 401(k)

Refer to the CARES Act Guide for details and dates related to temporary changes to the ISP 401(k) and other benefits in response to coronavirus legislation. Many of these changes ended Dec. 31, 2021.

The Incentive Savings Plan (ISP) 401(k) provides an easier way to save and invest. Set up as a 401(k) plan, the ISP allows you to contribute on a pretax or Roth after-tax basis. The company matches a portion of your contributions to help your account grow, once you are match-eligible.

Key features:

  • Automatic enrollment at a 4% pretax contribution for new hires and rehires.
  • Convenient payroll deductions make it easier to save for your future.
  • Contribution choices from 1% to 75% of your eligible compensation on a pretax or Roth after-tax basis (up to IRS limits).
  • Matching dollar for dollar contributions from PNC on your pretax or Roth after-tax contributions (combined) up to 4% of your eligible compensation on a per-pay basis, once you’re eligible for the match. (PNC also offers a minimum match for eligible employees earning less than $50,000 annually; see Contributions section for details.)
  • Contributing to the ISP 401(k) has certain tax advantages, whether you make pretax or Roth after-tax contributions or both.
  • Your account is portable. If you leave PNC, you can take your money with you, including any vested PNC contributions and earnings; see below.
  • A variety of investment options to diversify your savings and help you reach your financial goals.
  • Personalized advice on saving, investing and retirement planning through Alight Financial Advisors (AFA), an independent third-party investment advisor.

Eligibility and Vesting

The chart below shows when you are eligible to join the ISP 401(k), receive the company match and vest in (have a non-forfeitable right to) the company match money. You are always 100% vested in your own contributions and any earnings on that amount.

If you are a Full-Time employee

You are eligible to join the ISP 401(k): Immediately. You will automatically be enrolled at a 4% pretax contribution from your eligible compensation, unless you make a different election within 30 days of your hire date. Learn more.

You are eligible for the company match: On the first of the month following six months of service

You are vested in the company match: After three years of service

If you are a part-time employee

You are eligible to join the ISP 401(k): After completing one year of service. You will automatically be enrolled at a 4% pretax contribution from your eligible compensation, unless you make a different election within 30 days of your eligibility date. Learn more.

You are eligible for the company match: Immediately upon enrolling in the ISP 401(k)

You are vested in the company match: After three years of service

To learn more about the default investment to the BlackRock LifePath funds, review the Annual Qualified Default Investment Alternatives (QDIA) notice available on Pathfinder from PNC’s intranet (or directly to pncpathfinder.com).

Contributions

You may contribute from 1% to 75% of your eligible compensation on a pretax and/or Roth after-tax basis, up to the combined IRS maximum ($20,500 in 2022, plus an additional $6,500 if you are age 50 or older). The maximum may be further limited for highly compensated employees, as defined by the IRS.

Your contributions are deducted directly from your pay each pay period. In general, you may change your contribution percentage anytime through Pathfinder. Go to Pathfinder from PNC’s intranet (or directly to pncpathfinder.com) > Retirement & Investments > Contribution Details. Changes take effect within two payroll cycles.

PNC makes a matching contribution to the ISP 401(k) once you become eligible for the match. For every dollar you contribute, PNC will contribute a dollar, up to a maximum of 4% of your eligible compensation each pay period.

  • This includes any combination of pretax and/or Roth after-tax contributions (maximum 4% match combined).
  • The company match is allocated among the ISP 401(k) investment options in the percentages you choose.
  • All matching contributions are made on a pretax basis, per IRS rules.
  • Minimum match: PNC will contribute a minimum of $2,000 in matching contributions each year if you contribute at least 4% of your eligible compensation every pay period during the year and are an employee of PNC on the last business day of that year. (The minimum match is prorated for hourly employees and those who are eligible for less than a full year.)

If you want to convert all or a portion of your pretax ISP 401(k) balance to Roth after-tax, in-plan Roth conversions are available.

To learn more about vesting, contributions and matching, fund line-up and investment choices, withdrawals, loans and more, please review the PNC ISP 401(k) Plan Overview and Enrollment Guide. For even more detail, please see the PNC ISP 401(k) Summary Plan Description (SPD).

Investment Fund Options

The ISP 401(k) offers a range of investment options, allowing you to choose the funds that best meet your personal savings goals. Your pretax and Roth contributions must be invested the same way. In other words, you cannot invest your pretax balance in one selection of available funds and invest your Roth balance in a different group of funds.

It’s important to read the fund fact sheets and fund prospectuses (available at Pathfinder > Retirement & Investments > Investment Details > Fund Performance) before making your investment decisions. Remember that past performance is no guarantee of future results.

Choosing Your Investment Strategy 

The U.S. Department of Labor recommends a well-balanced and diversified portfolio, which means spreading your assets among different types of investments, in order to increase your overall chance for better returns, while minimizing your overall risk of losing money. This is because market (or other economic) conditions that cause one category of assets or one particular security, to perform well, often cause another asset category (or another particular security) to perform poorly.

If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be adequately diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.

How you invest your retirement savings should depend on your age, lifestyle, accumulated wealth, years until retirement, and comfort level around risk.

For more information about individual investing and portfolio diversification, visit the U.S. Department of Labor’s website.

Fund Lineup

The ISP 401(k) offers these investment funds (effective Jan. 1, 2022).

Professional Investment Advice

ISP 401(k) participants* are offered personalized advice on their savings, investments and retirement income through Alight Financial Advisors (AFA), an independent third-party investment advisor. AFA has hired Financial Engines Advisors L.L.C. (FEA) to provide sub-advisory services.

AFA services include the following:

  • A Retirement Evaluation is mailed to your home annually once you have a balance in the ISP 401(k). This personalized evaluation highlights your current savings/investment strategy in the ISP 401(k) and offers recommendations for improvement.
  • Online Advice offers tools and personalized recommendations to help you invest in the ISP 401(k) as well as your other retirement savings accounts.
    • To access the Online Advice tools, go to Pathfinder > Retirement & Investments > More > Investment Advice.
  • Professional Management is an optional service available by enrollment directly with AFA. An additional cost applies. AFA will develop your personalized retirement plan and handle any transactions in your ISP 401(k). You may enroll in or cancel Professional Management at any time.
    • You may enroll in or cancel Professional Management at any time. For more information, call the HR Service Center at 877-968-7762, select Retirement and Investments > More and from the menu and then select Investment Advice.

*Individuals who have been notified that they are Section 16 officers and/or restricted employees, and who invest in the PNC Stock Fund in their 401(k) account, will not receive Alight Financial Advisors communications (including the Retirement Evaluation) and are not eligible to enroll in Professional Management. Online advice is available to all employees.