How it Works
Your ESP is a significant part of your Trane Technologies benefits package—designed to help you live comfortably in retirement. How? Your plan helps you to invest some of what you earn today for your future goals.
Why Save?
It’s easy. You can make contributions directly from your paycheck. Simply choose how much you want to save, and Trane Technologies takes care of the rest.
It’s like “free” money. Trane Technologies matches dollar for dollar the first 6% of Eligible Compensation you contribute, in addition to the Core company contribution of 2% of your Eligible Compensation.
You can save on taxes. When you make pre-tax contributions, you lower your taxable income for the year.
Your money can grow. Any investment returns can compound and help your savings increase.
Plan Details
Eligibility
Regular full-time or regular part-time non-union employees of Trane Technologies are eligible to participate upon hire. In addition, temporary or seasonal employees and interns are eligible to participate starting the first of the month after they complete six months of service.
Automatic Features
The ESP has two “automatic” features designed to help you save over time.
- Automatic Enrollment. Approximately 35 days following your eligibility date, if you have not already elected to contribute to the ESP, you will be automatically enrolled in the ESP at a 4% pre-tax contribution rate. You can then elect to contribute a different amount.
- Automatic Increase Program. This program automatically increases your contribution each year. On April 1 each year, your pre-tax contribution rate will automatically increase by 1%, up to a maximum of 8%. You can opt out or elect to contribute a different amount.
Employee Contributions
Eligible employees can contribute up to 50% of their eligible compensation (generally, salary, wages, overtime pay, and performance-based pay) to the ESP directly from their paycheck on either a pre-tax, after-tax, or Roth basis, up to IRS limits. You can also review your Summary Plan Description for more details about how to contribute to the ESP. There are three contribution types available:
- Pre-tax contributions. Your pre-tax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period by making pre-tax contributions. You’ll pay taxes on these contributions and on any investment earnings when you make a withdrawal.
- After-tax contributions. These are deducted from your pay after income taxes are taken out. Any earnings may be taxable.
- Roth contributions. These are deducted from your pay after income taxes are taken out. Earnings are not taxable if taken in a qualifying distribution when you retire. A distribution of Roth account balances will be qualified if it occurs at least five years after the Roth contribution was made and one of the following conditions has been met: age 59½, disability, or death.
The IRS limits employee pre-tax and Roth contributions to the ESP to $24,500 in 2026. If you are age 50 or older in the calendar year, you can make an additional catch-up contribution of $8,000 in 2026. You can now make higher catch-up contributions up to $11,250 if you will be age 60–63 in 2026. The total amount both you and Trane Technologies can contribute in 2026 is $72,000 ($80,000 if you’re age 50 or older, or $83,250 if you’re age 60-63). This includes pre-tax, after-tax, Roth and company contributions.
New for 2026: If you’re eligible for catch-up contributions (age 50+) and if you made more than $150,000 in FICA wages* from Trane Technologies in 2025, your catch-up contributions must be made as Roth (after-tax). For more details and how this applies to you, see the Roth Features FAQs.
* The FICA wage threshold is indexed for inflation and may change each year.
Company Contributions
Trane Technologies offers two types of company contributions: Matching and Core contributions.
- Matching contributions. Trane Technologies helps your contributions grow through a generous employer match of up to 6% of Eligible Compensation that you contribute annually—it’s like getting "free" money. You are immediately vested in the Company’s Matching contributions.
- Core contribution. In addition to the Company Matching contribution, participants in the ESP also receive an additional Core contribution of 2% of Eligible Compensation. This is a non-Matching contribution. If you are eligible to participate in the ESP, the Core contribution is made to your ESP account regardless of your own ESP contribution level. The Core contribution vests after three years of service or death, becoming disabled or attainment of age 65 while employed.
When you consider the Matching contribution and the Core contribution together, ESP participants can receive up to 8% of their Eligible Compensation in contributions from Trane Technologies.
Annual True-up Contributions
The ESP also includes an annual True-Up. If you contribute unevenly, pause contributions during the year, or save a lot and reach the IRS employee contribution limit before the end of the year, you may not receive as much match for the year as compared to someone who contributed evenly during the year. True-up helps ensure you get the same match as if you contributed evenly during the year. Trane Technologies will true-up your match in the following plan year. Please note, even though the true-up contribution happens in the following plan year, it still counts toward the previous year’s IRS limits. If you are a highly compensated employee (i.e., you made more than $160,000 in 2025), you generally must be employed on the last day of the plan year to be eligible to receive a true-up contribution made in the beginning of the next year.
Investment Options
The ESP offers investment options with investing approaches for all types of investors, from those who prefer to make their own investment selections from available investment options to those who prefer to elect an investment option designed to align with their retirement date - Target Date Funds. You can choose from an array of available investment options based on your personal goals and risk tolerance.
Target Date Funds are designed for investors expecting to retire around the year indicated in each fund’s name. The investment risk of each Target Date Fund changes over time as its asset allocation changes. Target Date Funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Go to Fidelity NetBenefits for more information about the Target Date Funds available to you.
Want some help selecting investment options that are right for you? Contact the Trane Technologies Service Center at 1-866-294-7263. Target Date Funds are the default investment option for the ESP. They are “lifetime strategy” funds that offer a streamlined way to invest in a single diversified fund based on the fund's target year.
Additional Resources
Looking for more details about the ESP? Check out these resources:
- Read the Plan Highlights for a high-level overview of the ESP.
- Review your Summary Plan Description for an in-depth description of all ESP features.
- Visit Fidelity NetBenefits to view or make changes to your account and access a variety of helpful resources and tools.
How to Begin Investing for Retirement
In this workshop, you’ll learn some key investing concepts, explore common asset classes, and examine the importance of asset allocation and diversification. You’ll also learn different investment approaches to help you align with your goals, risk tolerance, and timeline when saving for retirement.
What's Next
Register for a 1:1 Session
Sign up to speak with a Fidelity representative to discuss your contribution options and decide on a plan that’s right for you.
Register or Manage Your Account
Register your ESP account or make changes to your contribution or investment elections at Fidelity NetBenefits®.
Designate Your Beneficiary
With Fidelity’s Online Beneficiaries Service, you can designate your beneficiaries, receive instant online confirmation, and check your beneficiary information virtually any time.