I need this explained please...matching contributions for retirement and saving plan?

[shoesan]

"The Convergys Match: As a special incentive for you to save in the Plan, after one year of service, the company makes
matching contributions to your account with Convergys stock based on the following formula: 100% of each beforetax
dollar contributed up to three percent of pay per pay period, plus 50% of the next two percent of pay
contributed per pay period."


Please give an example with numbers. HR is not available today and I was just reading the benefits and I need it explained. Thanks!

[src50]

If you contribute 3% of your paycheck, the company will match that amount by contributing the same dollar amount of stock. For the NEXT 2% of your paycheck that you contribute, they will match half of that amount in stock.

The problem here is that they are contributing the company's stock into your plan rather than cash. You need to be careful that your account never holds more than 5% of its total in company stock - anything more is too risky to you.