Harley Marine Services, Inc. 401(k) Retirement Savings Plan Disclosure Notice

Transcription

1 Harley Marine Services, Inc. 401(k) Retirement Savings Plan Disclosure Notice Plan Overview The Plan allows for both pre-tax and after-tax contributions funded from employee compensation, along with contributions funded by the employer. Participants of the Plan may direct the investment of their contributions among a selection of mutual funds, which are listed on the Plan s salary deferral election form. Accessing Account Balance Records Participants can access their account balance records through the website of Moran Knobel by going through the following steps: Log on to website From main menu, select: Login / Plan Access Enter assigned user ID and password in log-in box Default user ID is all nine digits of social security number; Default password is last four digits For log-in role, select: Participant Participant account record should then be displayed. To request that log-in ID s be reset to default settings: resetonlinepassword@moranknobel.com Phone: (800) Upon accessing their account balance records, plan participants can initiate the following changes: Update personal information Change allocation of future contributions Change allocation of existing investments to correspond to allocation of contributions Change allocation of existing investments to correspond to any other target allocation Designated Investment Alternatives Your Plan provides designated investment options into which you can direct the investment of your contributions to the Plan. For a full listing of these funds, including historical rates of return and current expense ratios is shown on the Investment Comparative Chart that is a part of this notice. A listing of your Plan s investment options can also be accessed by selecting the Investments / Investment Profiles options from the main menu after having accessed your account balance record. Timeline For Processing Investment Instructions The account values of all participants of the Plan are updated at the end of each business day on the database of Moran Knobel. All transactions involving the Plan s investments are settled within one to two business days after they are executed.

2 Plan Operating Expenses Your company s Plan incurs operating expenses each year for the following plan-related services: General administration and recordkeeping expenses Investment advisory expenses Asset brokerage & custodial expenses The expenses described above do not include the management expenses of the mutual fund offered as investment options under your Plan. These fund expenses are reported in the investment comparative report. Harley Marine Services, Inc., at the discretion of the Plan s trustees, may elect to pay some or all of the plan operating expenses described above. To the extent these expenses are not paid by the Company, they will be charged to all participant account balances on a pro-rata basis. Plan Operating Expenses Deducted From Individual Participant Account Balances Certain types of plan operating expenses that are incurred for services provided on behalf of a specific participant may be deducted from the account balances of the participant for whom the service is provided. These expense deductions will be referenced on your next quarterly account activity statement. Expenses that pertain to the following services provided to a specific participant of the Plan will be deducted from that participant s account balance: Participant Loan Initiation $ Annual fee for Loan maintenance $75.00 Processing of all distributions $50.00 Reporting Of Expense Deductions From Participant Account Balances Any plan operating expenses that are deducted from your account balance on either a pro-rata or individual basis will be specifically referenced on your next quarterly account activity statement.

3 h!s document!ncludes!mportant!nformat!on to help you compare the!nvestment opt!ons under your ret!rement plan. If you want add!t!onal!nformat!on about your!nvestment opt!ons, you can go to the spec!f!c Internet Web s!te address shown below or you can contact the plan adm!n!strator. A free paper copy of the!nformat!on ava!lable on the Web s!te(s) can be obta!ned by contact!ng your plan adm!n!strator. Pe!fo!mance Info!mation he table below shows how plan!nvestment alternat!ves have performed over t!me and allows you to compare them w!th an appropr!ate benchmark for the same t!me per!ods. Past performance does not guarantee how the!nvestment opt!on w!ll perform!n the future. Your!nvestment!n these opt!ons could lose money. Informat!on about an opt!on's pr!nc!pal r!sks!s ava!lable on the Web s!te(s). Plan Investment Eme!ging Ma!kets DFA Emerg!ng Markets Value Fund (DFEVX) Fo!eign - La!ge Blend Ivy Internat!onal Core Equ!ty Fund (ICEIX) L!tman Gregory Masters Internat!onal (MSILX) Inte!mediate Bond PIMCO otal Return Instl (P RX) La!ge Blend Vanguard 500 Index Adm (VFIAX) La!ge G!owth Wells Fargo Advantage Growth Fund (SGRNX) La!ge Value. Rowe Pr!ce Equ!ty-Income Fund (PRFDX) Mid Blend F!rst Eagle Fund of Amer!ca Y (FEAFX) Mid G!owth Wells Fargo Adv D!scovery Fund I (WFDSX) Real Estate Vanguard REI Index Adm!ral (VGSLX) Ave!age Annual Total Retu!n as of 10/31/2014 1y!. 5y!. 10y!. Inception 1y!. Benchma!k Retu!ns 5y!. 10y! Inception * Morn!ngstar Emerg!ng Mkts GR USD N/A (s!nce 04/02/2007) (s!nce 04/02/2007) Morn!ngstar Gbl Mkts ex-us GR USD Morn!ngstar Gbl Mkts ex-us GR USD Morn!ngstar Core Bond MCBI R Morn!ngstar Large Cap R USD Morn!ngstar Large Growth R USD Morn!ngstar Large Value R USD Morn!ngstar M!d Cap R USD N/A (s!nce 08/31/2006) (s!nce 08/31/2006) Morn!ngstar M!d Core R USD Morn!ngstar Real Estate Sector Index PR

4 Plan Investment Sho!t-Te!m Bond PIMCO Low Durat!on Inst!tut!onal Fund (P LDX) Small Blend Vanguard Small Cap Index Adm (VSMAX) Small G!owth Frankl!n Small Cap Growth Adv (FSSAX) Small Value Vanguard Small Cap Value Index (VSIAX) Stable Value Rel!ance rust Stable Value Fund Cl 35 (QD UQ) Ta!get Date Vanguard arget Ret!rement 2010 (V ENX) Vanguard arget Ret!rement 2020 (V WNX) Vanguard arget Ret!rement 2030 (V HRX) Vanguard arget Ret!rement 2040 (VFORX) Vanguard arget Ret!rement 2050 (VFIFX) Vanguard arget Ret!rment Income Fund (V INX) Ave!age Annual Total Retu!n as of 10/31/2014 1y!. 5y!. 10y!. Inception 1y!. Benchma!k Retu!ns 5y!. 10y! Morn!ngstar Short- erm Core R Morn!ngstar Small Cap R USD Morn!ngstar Small Growth R USD Morn!ngstar Small Value R USD Inception * N/A N/A (s!nce 09/27/2011) (s!nce 09/27/2011) Morn!ngstar Cash R N/A Morn!ngstar L!fet!me Moderate N/A Morn!ngstar L!fet!me Moderate N/A Morn!ngstar L!fet!me Moderate N/A Morn!ngstar L!fet!me Moderate N/A Morn!ngstar L!fet!me Moderate Morn!ngstar L!fet!me Moderate Income * Performance data!s s!nce!ncept!on date of the fund,!f fewer than 10 years of performance!s ava!lable

5 Fee and Expense Info!mation he table below shows fee and expense!nformat!on for plan!nvestment alternat!ves. Fees shown below are!n add!t!on to otal Annual Operat!ng Expenses. Plan Investment Total Annual Ope!ating Expenses As a % Pe! $1000 Eme!ging Ma!kets DFA Emerg!ng Markets Value Fund 0.57% $5.70 Fo!eign - La!ge Blend Ivy Internat!onal Core Equ!ty Fund 1.04% $10.40 L!tman Gregory Masters Internat!onal 1.30% $13.00 Inte!mediate Bond PIMCO otal Return Instl 0.46% $4.60 La!ge Blend Vanguard 500 Index Adm 0.05% $0.50 La!ge G!owth Wells Fargo Advantage Growth Fund 0.75% $7.50 La!ge Value. Rowe Pr!ce Equ!ty-Income Fund 0.67% $6.70 Mid Blend F!rst Eagle Fund of Amer!ca Y 1.42% $14.20 Mid G!owth Wells Fargo Adv D!scovery Fund I 0.85% $8.50 Real Estate Vanguard REI Index Adm!ral 0.10% $1.00 Sho!t-Te!m Bond PIMCO Low Durat!on Inst!tut!onal Fu 0.46% $4.60 Small Blend Vanguard Small Cap Index Adm 0.09% $0.90 Small G!owth Frankl!n Small Cap Growth Adv 0.92% $9.20 Small Value Vanguard Small Cap Value Index 0.09% $0.90 Stable Value Rel!ance rust Stable Value Fund Cl % $10.10 Ta!get Date Vanguard arget Ret!rement % $1.60 Vanguard arget Ret!rement % $1.60 Vanguard arget Ret!rement % $1.70 Vanguard arget Ret!rement % $1.80 Vanguard arget Ret!rement % $1.80 Vanguard arget Ret!rment Income Fu 0.16% $1.60 Sha!eholde! Type Fees he cumulat!ve effect of fees and expenses can substant!ally reduce the growth of your ret!rement sav!ngs. V!s!t the Department of Labor's Web s!te for an example show!ng the long-term effect of fees and expenses at Fees and expenses are only one of many factors to cons!der when you dec!de to!nvest!n an opt!on. You may also want to th!nk about whether an!nvestment!n a part!cular opt!on, along w!th your other!nvestments, w!ll help you ach!eve your f!nanc!al goals.

6 Investment Rest!ictions In add!t!on to any restr!ct!ons!mposed by the plan, the follow!ng restr!ct!ons are!mposed by the plan!nvestment alternat!ve. DFA Emerg!ng Markets Value Fund Excess!ve trad!ng v!olat!on w!ll result!n a trad!ng restr!ct!on per!od of 90 days. Max!mum of 1 round tr!p allowed per 30 days per!od. Ivy Internat!onal Core Equ!ty Fund WISC w!ll mon!tor the number of roundtr!p transact!ons!n Fund shares. Any shareholder that has more than two transact!ons that are cons!dered a change!n d!rect!on relat!ve to the Fund w!th!n a t!me per!od determ!ned by WISC may be restr!cted from mak!ng add!t!onal purchases of Fund shares. A change!n d!rect!on!s def!ned as any exchange or sale out of the Fund and a second change!n d!rect!on!s an exchange or purchase back!nto that Fund. Shareholders who reach th!s l!m!t may be blocked from mak!ng add!t!onal purchases for 60 days. A second v!olat!on can result!n a permanent block. L!tman Gregory Masters Internat!onal Purchases and exchanges of shares of the Funds should be made for long-term!nvestment purposes only. he Funds, as a matter of pol!cy, act!vely d!scourage market t!m!ng and excess!ve short term trad!ng and may block accounts or take other act!on to prevent th!s type of act!v!ty. PIMCO Low Durat!on Inst!tut!onal Fund he rust and PIMCO each reserves the r!ght to restr!ct or refuse any purchase or exchange transact!on!f,!n the judgment of the rust or of PIMCO, the transact!on may adversely affect the!nterests of a Fund or!ts shareholders. Among other th!ngs, the rust may mon!tor for any patterns of frequent purchases and sales that appear to be made!n response to short-term fluctuat!ons!n share pr!ce and may also mon!tor for any attempts to!mproperly avo!d the!mpos!t!on of a redempt!on fee. PIMCO otal Return Instl he rust and PIMCO each reserves the r!ght to restr!ct or refuse any purchase or exchange transact!on!f,!n the judgment of the rust or of PIMCO, the transact!on may adversely affect the!nterests of a Fund or!ts shareholders. Among other th!ngs, the rust may mon!tor for any patterns of frequent purchases and sales that appear to be made!n response to short-term fluctuat!ons!n share pr!ce and may also mon!tor for any attempts to!mproperly avo!d the!mpos!t!on of a redempt!on fee.. Rowe Pr!ce Equ!ty-Income Fund In add!t!on to restr!ct!ng transact!ons!n accordance w!th the 30-Day Purchase Block,. Rowe Pr!ce may,!n!ts d!scret!on, reject any purchase or exchange!nto a fund from a person whose trad!ng act!v!ty could d!srupt the management of the fund or d!lute the value of the funds shares,!nclud!ng trad!ng by persons act!ng collect!vely. Such persons may be barred from further purchases of. Rowe Pr!ce funds for a per!od longer than 30 calendar days or permanently. Vanguard 500 Index Adm Vanguard REI Index Adm!ral

7 Vanguard Small Cap Index Adm Vanguard Small Cap Value Index Vanguard arget Ret!rement 2010 Vanguard arget Ret!rement 2020 Vanguard arget Ret!rement 2030 Vanguard arget Ret!rement 2040 Vanguard arget Ret!rement 2050 Vanguard arget Ret!rment Income Fund

8 Wells Fargo Adv D!scovery Fund I If a shareholder redeems more than $5,000 from a Fund, that shareholder w!ll be "blocked" from purchas!ng shares of that Fund for 30 calendar days after the redempt!on. Wells Fargo Advantage Growth Fund If a shareholder redeems more than $5,000 from a Fund, that shareholder w!ll be "blocked" from purchas!ng shares of that Fund for 30 calendar days after the redempt!on.