Employee Savings Plan
PPG’s Employee Savings Plan (“Savings Plan”) covers substantially all employees in the U.S., Puerto Rico and Canada. The Company makes matching contributions to the Savings Plan, at management's discretion, based upon participants’ savings, subject to certain limitations. For most participants not covered by a collective bargaining agreement, Company-matching contributions are established each year at the discretion of the Company and are applied to participant savings up to a maximum of 6% of eligible participant compensation. For those participants whose employment is covered by a collective bargaining agreement, the level of Company-matching contribution, if any, is determined by the relevant collective bargaining agreement.
The Company-matching contribution was 75% on the first 6% of compensation contributed by these eligible employees in 2011 and 2012. In 2013, the Company match was increased to 100% on the first 6% of compensation contributed by eligible employees.
Compensation expense and cash contributions related to the Company match of participant contributions to the Savings Plan for 2013, 2012, and 2011 totaled $36 million, $28 million and $26 million, respectively. A portion of the Savings Plan qualifies under the Internal Revenue Code as an Employee Stock Ownership Plan. As a result, the dividends on PPG shares held by that portion of the Savings Plan totaling $15 million, $18 million and $20 million for 2013, 2012, and 2011, respectively, were tax deductible to the Company for U.S. Federal tax purposes.