401(k) Retirement Program

401(k) Retirement Program Eligibility

Plan Administration

Zara Puerto Rico has partnered with Rocafort Group to manage the retirement plan, supported by Empower as the plan recordkeeper. This collaboration ensures access to extensive resources, expertise, and quality investment solutions to help you achieve your financial goals for retirement and beyond.

To participate in the 401(k) plan, you must:

• Be at least 21 years old,
• Complete one year of service, and,
• Have worked at least 1,000 hours.

Benefits of the Zara Puerto Rico 401(k) Retirement Plan

• Employee contributions reduce current taxable income.
• Contributions and investment gains are not taxed until distributed.
• Convenient contributions via payroll deductions.
• Potential for significant growth over time with regular contributions.
• Retirement assets can generally be rolled over from one employer plan to another.
• Employees can improve financial security in retirement.

Enrollment

Your entry date will be the first day of the month coinciding with or following the date you meet these eligibility requirements. Upon eligibility, you will be automatically enrolled in Zara’s 401(k) plan. Initially, 3% of your gross income will be deducted from your paycheck and invested in your plan’s default fund. This will increase by 1% annually until you hit the maximum of 6%. You can adjust your contributions and investment preferences through your account at any time.Contributions will be invested in the plan’s default option unless you specify other investment selections.

You have the flexibility to adjust your contribution rate, investment allocation, or opt-out at any time.

Employer Contribution
Zara Puerto Rico matches 50% of your contribution, up to 6%. For example, if you contribute 3%, Zara will contribute 1.5% to your retirement account.

Vesting Schedule

Vesting schedules are what determine the timeline at which employees gain full ownership of employer-contributed funds to their retirement plan. You are always 100% vested in your payroll contributions.

YEARS OF SERVICE	EMPLOYEE OWNERSHIP OF EMPLOYER-CONTRIBUTIONS
1 Year	33%
2 Years	66%
3 Years	100%

Please be sure to visit the document library for additional information on this benefit.