2019 GATES RETIREMENT PLAN GUIDE

Transcription

1 2019 GATES RETIREMENT PLAN GUIDE

2 TABLE OF CONTENTS HEALTH BENEFITS 2019 MONTHLY COBRA RATES GATES MATCHMAKER 401(K) PLAN GATES RETIREMENT PLAN (PENSION) SUPPLEMENTAL RETIREMENT BENEFIT PLAN COMPLIANCE WITH SECTION 409A OF THE CODE HOURLY VACATION PAY UPON THE TERMINATION OF EMPLOYMENT SALARY VACATION PAY UPON TERMINATION OF EMPLOYMENT AT-A-GLANCE CONTACT INFORMATION INTRODUCTION Preparing for retirement is an exciting time in your life. However, we know with this transition also comes the potential to feel overwhelmed and confused about what s available and what s next. To help make the retirement process easy and stress-free, we ve created this guide to help you prepare for this next stage in your life. Please take the time to review for helpful information regarding Gates Corporation s compensation and benefits programs: > > Health Benefits > > COBRA Rates for Medical, Dental and Vision Plans (2019) > > Accessing your Gates Matchmaker 401(k) Plan > > Pension Commencement Instructions (if applicable) After reviewing the enclosed information, should you have any questions, please do not hesitate to contact benefitssupport@gates.com. This document is intended to provide a summary of Gates Corporation Benefits. Nothing in this document or the plan documents will be construed to create or imply any contract of employment between an employee and Gates Corporation. If there is a discrepancy between this document and the plan documents, the plan documents will govern. Gates Corporation reserves the right to extend, amend, suspend or terminate all or part of the benefits available under Gates Corporation Benefits at any time for any reason. You should contact your tax advisor if you have questions on the taxability of your benefits. Document last updated November, 2018

3 HEALTH BENEFITS This document outlines your options and the process for continuing your Gates Corporation health and welfare benefits when you retire from Gates Corporation. When you retire, you are no longer eligible to participate in Gates Corporation s active employee benefit plans. Generally, your coverage ends on the last day of the month in which your employment ends. However, you have the option to continue or convert your coverage. Options are described below. If the Qualified Beneficiary is your dependent spouse or dependent child who loses Plan coverage due to your death, divorce, legal separation, or becoming enrolled in Medicare, the maximum continuation of coverage period is 36 months from the date of that Qualifying Event. MEDICAL, DENTAL AND VISION COVERAGE COBRA BENEFITS If you are enrolled in the medical, dental and/or vision plans on your last day of employment with Gates Corporation, that coverage will remain in effect until the end of the month in which your employment ends. You can choose to continue medical, dental and/or vision coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for up to 18 months. You will be required to pay the full monthly cost of coverage plus a COBRA administration fee directly to the Benefits Administrator. You will receive information on your medical, dental and/or vision continuation options directly from the COBRA Administrator up to 45 days from your loss of coverage end date. The information will be on a COBRA enrollment form and will include the cost of coverage during the COBRA continuation period. You must enroll in COBRA within 60 days of the date you lose coverage or by the date on the COBRA Enrollment Notice, whichever is later. You will have COBRA coverage provided you enroll within the designated timeframe. You must make the choice to enroll in COBRA coverage in order for your benefit elections to continue beyond the end of the month in which your employment ends. All correspondence and communications will be between you and the COBRA Administrator. The COBRA Administrator s toll free number is You can also them at Cobra_kyoperations@uhc.com or go online to POST-65 RETIREE MEDICAL PLAN COVERAGE Gates Corporation does not provide post-65 retiree medical plan options. However, Gates Corporation has partnered with Via Benefits, to offer options for post-65 employees through the Medicare exchanges. For information on post-65 retiree medical plan options, please contact Via Benefits at or Licensed benefits advisors will help match you with the plan that best fits your specific requirements. If you retire prior to age 65, your information will automatically be provided to Via Benefits and you may contact them once you have applied for Medicare Part B. Via Benefits cannot assist you until they receive your information from Gates Corporation and you have applied for Medicare Part B. 2

4 2019 MONTHLY COBRA RATES EMPLOYEE ONLY EMPLOYEE + SPOUSE EMPLOYEE + CHILD(REN) FAMILY Medical CDHP 1 $ $1, $ $1, Medical CDHP 2 $ $ $ $1, Medical PPO $ $1, $1, $1, Dental 1 $ $ $ $ Dental 2 $ $ $ $ Vision $ 8.56 $ $ $ EAP $ 1.11 $ 1.11 $ 1.11 $ 1.11 EXPAT MEDICAL/DENTAL Medical $ $1, $1, $2, Dental $ $ $ $ SPENDING ACCOUNTS If you are a participant in the Flexible Spending Account program(s), any expenses you incur through the date on which your employment ends will be eligible for reimbursement on a pre-tax basis. > > Debit Card (Healthcare Flexible Spending Account/Dependent Care Flexible Spending Account) Your debit card will no longer be active. You can still submit expenses by printing the form from Optum Health s website ( and either mail, fax or scan it and send to Optum Health with the appropriate documentation. > > Healthcare Flexible Spending Account Reimbursement can be up to the total amount you have elected to contribute through payroll deduction. You may continue to contribute to your Healthcare Flexible Spending Account (FSA) through COBRA in order to continue to be eligible to submit expenses that occur after your last day of active employment (reimbursable then only on an after-tax basis). Contributions will be made through the COBRA Benefits Administrator. You will receive information on your healthcare FSA continuation options directly from the COBRA Administrator. If you choose NOT to continue making contributions, you may submit eligible expenses up to the date of your retirement for reimbursement. Under the federal use it or lose it rule, any unused funds will be forfeited. > > Dependent Care Flexible Spending Account You may not continue participating in the Dependent Care Flexible Spending Account. Any funds you have contributed up to the date of your retirement may be used for expenses incurred prior to your retirement. > > Health Savings Account This account will remain available for eligible expenses. Any contribution from Gates Corporation to your Health Savings Account will end with your last paycheck. You may be eligible to make contributions to your account. For additional information contact Optum Health ( ). All correspondence and communications will be between you and Optum Health. LIFE INSURANCE PLANS If you are enrolled in the Basic Insurance, Supplemental and/or Dependent Life Insurance plans on your last day of employment, the coverage ends on the last day of the month that your employment ends. You may be eligible to convert the coverage to an individual policy. You must apply for conversion to an individual contract and pay the first premium within 31 days after your coverage ends. If you want information to convert your coverage to personal coverage, contact Securian at SHORT-TERM DISABILITY (STD) AND LONG-TERM DISABILITY (LTD) If you are enrolled in the STD or LTD plan, your coverage will end on the last day of your employment. ACCIDENTAL DEATH & DISMEMBERMENT (AD&D) If you are enrolled in the AD&D plans your coverage will end on the last day of the month in which your employment ends. 3 GATES YOUR 2019 GATES RETIREMENT PLAN GUIDE

5 GATES MATCHMAKER 401(K) PLAN You will receive a package of information from Charles Schwab Participant Services within four weeks of your termination date explaining your options under the Gates Matchmaker 401(k) Plan. You can also get information by visiting the plan s website at or by calling Participant Services at You can continue to make transfers between funds and take withdrawals or distributions after your termination date. Your package will explain the options that are available to you such as leaving your money in the plan, setting up installment payments (only available if account balance is greater than $5,000), taking a partial or complete withdrawal or rolling over your balance to another qualified plan or IRA. Please review the advantages and disadvantages of each option carefully before making any elections. Withdrawals made prior to age 59 ½ are not only subject to federal, state and local tax but may also be subject to a 10% penalty tax. If you choose to leave your money in the plan, please keep Charles Schwab Participant Services updated with any future address changes. If you have an outstanding loan balance when you leave employment with the company, you will have the option to pay the unpaid balance in full at the time of your separation from service or make scheduled payments via Automated Clearing House (ACH). If you are unable or choose not to pay back your outstanding loan amount, the unpaid amount of the loan will be removed from your account and considered a distribution, which will be taxable to you, and reported to you and the IRS on Form 1099R. Taxes and penalties may apply. Initiating a distribution, even if you are making payments on your loan, will cause the loan to be immediately distributed and taxable. GATES RETIREMENT PLAN (PENSION) If you are eligible to receive pension plan benefits, you must contact benefits support at benefitssupport@gates.com as soon as you know your expected retirement date. We recommend contacting benefits support days in advance of your termination date if you wish to commence your pension payments immediately following your termination date. Pension payments cannot begin until the end of the month following your termination date. Pension payments will not begin until you have completed the proper election forms and returned them to the benefits department. 4

6 SUPPLEMENTAL RETIREMENT BENEFIT PLAN The Gates Corporation Supplemental Retirement Benefit Plan is a nonqualified plan subject to government regulations if you are identified as an eligible employee of Gates Corporation. Distribution of your vested account will be made (or will begin) within 30 days following your separation from service with Gates Corporation. However, due to government regulations, if you are identified as an eligible employee of Gates Corporation, distribution of your vested account will be made (or will begin) on the first of the month following six months after your date of separation from service with Gates Corporation. You will be notified if you are considered an eligible employee of Gates Corporation for purposes of this plan. Distribution will be made based on your election that is on file, either a single lump sum payment or equal annual installments over a period of five years. COMPLIANCE WITH SECTION 409A OF THE CODE To the extent applicable, it is intended that the compensation and benefits provided for your retirement comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to you. All of the compensation and benefit provisions shall be administered in a manner consistent with this intent. Reference to Section 409A of the Code will also include any regulations or other formal guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. HOURLY VACATION PAY UPON TERMINATION OF EMPLOYMENT (INCLUDES RETIREMENT) Earned, unused vacation will be paid to hourly-paid employees upon termination or retirement. Any unearned but used vacation must be paid back to Gates Corporation upon voluntary termination/retirement of employment to the extent permitted by law. Any unearned but used vacation must be paid back to Gates Corporation, to the extent permitted by law, if an employee voluntarily terminates (retires) employment. SALARY VACATION PAY UPON TERMINATION OF EMPLOYMENT (INCLUDES RETIREMENT) Where local law permits, unused allowed salary vacation time will not be paid out upon termination. 5 GATES YOUR 2019 GATES RETIREMENT PLAN GUIDE

7 AT-A-GLANCE CONTACT INFORMATION BENEFIT PHONE WEBSITE COBRA Administration United Healthcare Dental MetLife Vision VSP Prescription Drug CVS Caremark Life and AD&D Insurance Securian Gates Matchmaker 401(K) Plan Charles Schwab Retirement Plan Services Retiree Medical (Post age 65) Via Benefits This document is intended to provide a summary of Gates Corporation Benefits. Nothing in this document or the plan documents will be construed to create or imply any contract of employment between an employee and Gates Corporation. If there is a discrepancy between this document PHONE and the plan documents, the plan documents will govern. Gates Corporation reserves the right to extend, amend, suspend or terminate all or part of the benefits available under Gates Corporation Benefits at any time for any reason. You should contact your tax advisor if you have questions on the taxability of your benefits. Document last updated November,

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