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Total Rewards | 3M Human Resources

At 3M, inspired opportunities are everywhere.

Here, you’ll have the freedom to explore, create, innovate and share new ideas that can change the world. You can grow through challenging work and be rewarded for your efforts with incentives and recognition. And you can contribute to your local community by sharing your talents, resources or time.

Here, you can build a career at a leading, global company, working with the best and the brightest. You can make a difference in the world and help improve lives. This is what a career at 3M is all about. The more you contribute to 3M’s success, the more success you create for yourself.

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A look inside the 3M Total Rewards Package 3M Total Rewards includes a range of plans and programs designed to attract, retain and motivate high-performing employees like you, who are critical to our growth and success.

• Be rewarded for your efforts with a competitive base salary and variable incentive pay linked to company and individual performance.

• Live your best with unique resources and high-quality benefits. Medical and dental plan options, savings and retirement plans, a 3M employee stock purchase plan and many other resources will help you enhance your physical and financial well-being.

• Grow through challenging work by leading important projects, working with diverse, talented people and taking advantage of the many opportunities to develop your skills.

Diverse & Inclusive 3M 3M is a place where you can collaborate with other curious, creative people. Where your diverse talents, inclusiveness, initiative and leadership are valued. Where you’ll find challenging opportunities that make your career exciting and rewarding. With a diversity of people, global locations, technologies and products, 3M is a place to grow and be rewarded for excellence.

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Your 3M CompensationYour 3M compensation is a part of your 3M Total Rewards, designed to recognize the meaningful contributions you make to business results. 3M regularly benchmarks its compensation and benefits with other companies that are comparable in size and scope to ensure we remain highly competitive. Salary ranges are generally based on the market rate for similar jobs, skills and experience.

Your pay may include two components: base salary and variable pay. While base pay applies to all employees, variable pay is offered to eligible employees and may include an Annual Incentive Plan (AIP), sales incentives or other incentives.

Annual Incentive Plan (AIP)The goals of the Annual Incentive Plan (AIP) are to:• Help 3M attract and retain

outstanding employees• Stimulate and reward business growth

and creativity that lead to accelerating growth and profit for 3M and its stockholders

• Align a portion of eligible employees’ pay with both business and individual performance

• Provide an incentive to employees and help them understand the connection between business performance and 3M financial results

In most cases, you are eligible for the AIP if you are an active, non-production, salaried 3M employee who is in job grade seven and above or equivalent during the AIP performance period. Employees eligible for separate sales incentive compensation do not participate in the AIP.

Sales IncentivesEach sales representative’s pay includes base pay and sales incentives, paid monthly or quarterly, depending on the business you represent.

Long-Term Incentive Plan (LTIP)Annual equity grants are awarded to management-level (and equivalent) employees based on their level of responsibility, individual contribution and leadership performance. The types of equity grants available depend on an employee’s job grade and location and may include stock options, stock appreciation rights (SARs), restricted stock units (RSUs) and performance shares. Each year, eligible employees at the manager and director levels are offered a choice in how to receive their LTIP Grant: They can choose all stock options, all RSUs or a mixture of the two.

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Paid Time OffPaid time off is another part of your 3M Total Rewards that helps you relax and balance your work and personal life. Your paid time off includes vacation and holiday pay, short- and long-term disability benefits, and time off for emergencies or other miscellaneous absences. Part-time employees (defined as employees who work a minimum of 20 hours per week) receive a prorated amount of paid time off based on their anticipated work week.

VacationYou earn vacation based on your 3M service credit. All of your Annual Vacation Hours are available for you to use at the beginning of each year.*

*Due to state laws, there are differences in the vacation policy for 3M employees living in or assigned to a work location in California, Colorado, Maryland or Montana.

**Annual Vacation Hours are prorated for new employees hired after the beginning of the year.

HolidaysYou may be eligible for a total of 12 paid holidays each year (96 hours). Six are national holidays and the remaining six are holidays that are either designated by the work location or taken as personal holidays.

YEARS OF SERVICE ANNUAL VACATION HOURS**

Less than 4 years

4-9 years

10-18 years

19+ years

80 hours

120 hours

160 hours

200 hours

Disability Benefits3M provides disability coverage in case you become ill or are injured and unable to work.

Short-Term DisabilityCompany-paid coverage, based on your Service Credit Date, for either 100 percent or 60 percent of your eligible pay for up to 26 weeks if you cannot work because of your own illness, injury or pregnancy.

Long-Term DisabilityCompany-paid coverage that allows you to continue to receive up to 60 percent of your eligible pay if a disability continues beyond 26 weeks.

Other Paid Absences and Miscellaneous Paid AbsencesYou may be eligible for up to five days (40 hours) of other paid absences per year for unexpected absences as a result of an emergency or urgent personal matters. Miscellaneous paid absences include paid time off for voting (in accordance with state law), jury duty, military reserve service and related needs.

12HOLIDAYS

NATIONAL HOLIDAYS

WORK DESIGNATED OR PERSONALHOLIDAYS

Here, live your best with the best.

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Health care benefits are another important part of your 3M Total Rewards. We provide comprehensive, quality benefits to you and your eligible dependents. You are eligible to participate in most of 3M’s benefit offerings beginning on your first day of employment.

Health Care BenefitsGood health is an asset to you and 3M. Health care coverage enables you to receive medical care while helping protect you against the financial hardship of health care expenses.

Most 3M health care plans are self-insured, which means 3M, rather than an insurance company, pays the majority of the cost for covered medical and prescription drug expenses and covered dental and routine vision expenses. 3M medical and dental plan premiums and any health savings account or reimbursement account contributions you choose to make are deducted before taxes through automatic payroll deductions. Please refer to your Personalized Total Rewards Estimate for specific information on the premium costs.

3M Medical Plans3M offers employees three medical plan options to choose from:• Prime Advantage Plan• Choice Advantage Plan• Basic PPO Plan

We encourage you to use the various tools and resources available when you enroll in your benefits to select the plan that best meets the needs of you and your eligible dependents. The Prime Advantage and Choice Advantage Plans are high deductible health plans and offer the advantages of contributing to a Health Savings Account (HSA). These plans offer comprehensive medical coverage and access to a broad, national network of participating providers, and they are designed to give you a stake in the short- and long-term management of your health.

If you are eligible, the 3M Advantage Plans allow you to set up and make contributions into an HSA — a unique, tax-advantaged savings account that includes a 3M contribution. Your HSA provides flexibility and growth potential by allowing you to pay for qualified medical expenses tax-free and use the remainder to save toward

future health care expenses. Your HSA investments add up over time and are yours to keep when you retire or if you leave 3M for any reason.

The Basic PPO Plan provides the same comprehensive medical coverage and access to a broad, national network of providers. The Basic PPO Plan has a lower annual deductible than the 3M Advantage Plans but has higher premiums and does not offer the ability to make contributions to an HSA.

NOTE: State taxation of Health Savings Accounts may vary by state.

All of 3M’s medical plans include:• 100% coverage for preventive

medical care when received from in-network providers

• Prescription drug benefits through CVS Caremark

• Routine coverage for an annual preventive eye exam through Vision Service Plan (VSP)

NOTE: Additional plan options may be available depending on where you live.

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Vision Service Plan Plus (VSP+)You have the option to enroll in VSP+, which covers the following for you and your eligible dependents:

• An annual preventive eye exam through Vision Service Plan (VSP)• Coverage toward eyeglass lenses• Annual allowance for frames or contacts• Discounts towards eyewear options and laser vision correction

3M Dental PlanThe 3M Dental Plan covers the following for you and your eligible dependents:

• Preventive, basic and major care services• Orthodontia services• Annual maximum benefit including orthodontia

Health Care and Dependent Care Reimbursement AccountsIf you are eligible, 3M’s reimbursement accounts allow you to set aside before-tax dollars to pay for certain health care and/or dependent daycare expenses not paid for by 3M’s benefit plans.

Health Care Reimbursement Account (HCRA)• Deposit before-tax dollars annually• Helps pay your annual deductible, coinsurance and other eligible

unreimbursed health care expenses• A Traditional HCRA is available for participants in the Basic PPO

Plan, and a Post-deductible HCRA is available for participants in the 3M Advantage Plans

Dependent Care Reimbursement Account (DCRA)• Deposit before-tax dollars annually• Helps pay daycare expenses for eligible children and other eligible

dependents while you work

3M encourages employees to be good health care consumers. We provide you with the information, tools and services to empower you toward healthy living and encourage you to become an informed advocate to meet your health care needs. By effectively managing your health, you can help keep costs down for yourself and the company.

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Life InsuranceTo help protect your financial security, 3M also offers a variety of life and accident insurance options for you and your eligible dependents. 3M provides basic life and AD&D insurance coverage at no cost to you, with the exception of those earning less than $50K per year. These employees have the option to purchase up to the $50K level per year and pay the premium for the difference in coverage. Other optional life insurance coverage is offered at group rates through the 3M Employees Benefits Trust Association. As your needs change because of life changes such as marriage or the arrival of children, you may adjust the mix of your life and accident insurance coverage, subject to any evidence of insurability (EOI) requirements.

Optional Life Insurance coverage options:• Additional Employee Life Insurance• Accidental Death and Dismemberment Insurance• Spouse/Domestic Partner Life Insurance• Child Life Insurance

Personal SavingsGeneral Employees Stock Purchase Plan• You can contribute 3 percent to 10 percent of your eligible

compensation to purchase 3M stock on a monthly basis with a 15 percent discount from its current market value.

• You must have two months of 3M service to participate.

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Retirement Program3M’s Retirement Program, called the 3M Voluntary Investment Plan (VIP), provides a solid group of benefit options and easy, tax-free ways to save and invest for your retirement.

401(k) company matching contributions3M matches $.50 to every dollar you contribute up to the first 6 percent of your eligible pay from each payroll payment. The company matching contributions apply to:• Before-Tax 401(k): Contributions are deducted from

your eligible pay on a before-tax basis. Your contributions and the associated earnings grow tax-deferred until you withdraw the funds.

• Roth 401(k): Contributions are deducted from your eligible pay on an after-tax basis. The earnings on these contributions grow tax-deferred and are not taxed when you receive them as a qualified distribution.

NOTE: There is no matching contribution for catch-up 401(k) contributions or any contribution above 6 percent of your eligible pay.

After-Tax Savings Account Separate from the 401(k) options, you may also choose to contribute 2 to 9 percent of your pay to an After-Tax Savings Account each pay period on an after-tax basis. No company matching contributions apply, and earnings on your contributions grow tax-deferred until withdrawn.

Retirement Income Account This is a non-elective, automatic account. The company contributes a percentage of your eligible pay each payroll payment to a separate Retirement Income Account. You do not make any contributions to this plan, and you become vested according to a vesting schedule.

Relocation Benefits3M encourages employees to develop through diverse and challenging career opportunities. Relocation often is part of an employee’s career development.

3M’s mobility programs and policies provide the services, tools and resources needed to help you make a smooth transition.

Here’s a sampling:• 3M Medical Plan premium discount for being tobacco-free

and taking steps to improve your health• On-site fitness centers in many 3M locations• Fitness center discounts• Weight management program reimbursement• Confidential Employee Assistance Program (EAP)• Tobacco cessation offerings• Resources to help you manage your medical care and make

informed health care treatment choices• Stress management coaching• Child and adult (elder) care consultation and referral• Financial and legal consultation and referral services• Parenting resources, scholarship programs and personal

growth resources• Access to on-site health and personal services in our 3M

Maplewood location, including an on-site pharmacy and medical center; and 3M Club that provides discounted tickets and an avenue to share hobbies and interests with other employees

More 3M Programs and Resources3M offers many programs to help you live your best — both physically and financially. The 3M Healthy Living Program offers a variety of resources, rewards and incentives to help you live a more active and healthy life. Take advantage of our full range of opportunities — there’s something for everyone.

In addition, 3M offers the following resources and opportunities:• Tuition reimbursement• Adoption assistance• Flexible work arrangements• Diverse career and development opportunities• Scholarships for eligible dependents of employees• Employee store to purchase 3M products online or at many

3M locations• Support for community involvement: Matching Gifts,

Volunteer Match, 3Mgives (our community giving program)

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Important Legal Information: This document is not the official plan document for the plan, and in the event of any conflict, inconsistency or ambiguity between this information and the official plan document, the terms of the official plan document will control. 3M reserves the right to modify, amend or terminate the benefit plan, in whole or in part, at any time. Neither receipt of this document nor its use of the term “you” indicates eligibility for the plan. Only those individuals who satisfy the eligibility requirements and other criteria contained in the official plan document are eligible to participate in the plan. Nothing in this document shall be deemed as a promise or guarantee of continued employment or that an individual will be able to retire from 3M.

Here, you shape lives every day.By working on leading global brands and thousands of products, you can make an impact and touch millions of people worldwide.

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