BB&T Supplemental Defined Contribution Plan for Associates of CRC Insurance Services, Inc Enrollment Guide

Transcription

1 BB&T Supplemental Defined Contribution Plan for Associates of CRC Insurance Services, Inc Enrollment Guide

2 Dear Participant: BB&T offers a special, non-qualified supplement to our plan for certain associates who are considered highly compensated and management associates by the Internal Revenue Service and Department of Labor. Because you are in the highly compensated group of BB&T associates, you have the opportunity to enroll in this plan and save even more for your retirement years. This enrollment guide will help you make important decisions about your plan participation. For 2017 participation, you can make your Non-Qualified Plan and Qualified Plan elections from June 1, 2016, through June 30, You should have received a memo entitled BB&T Supplemental Defined Contribution Plan Enrollment, outlining your current elections (if any) in the Non-Qualified Plan and the Qualified Plan. As a participant in the Non-Qualified Plan, your contributions to the Qualified Plan will continue until you reach the deferral limit imposed by the IRS. At that time, your election under the Non-Qualified Plan will take effect and will continue unchanged for the remainder of the year. Please understand, due to restrictions imposed by section 409A of the Internal Revenue Code, associates who choose to participate in a non-qualified defined contribution plan are restricted as to when they may make deferral election changes to a Qualified Plan. Due to these restrictions, associates who choose to participate in the Supplemental Defined Contribution Plan (Non-Qualified Plan) will be provided with the opportunity to make changes to their Qualified Plan deferral elections during the 2017 Non-Qualified Plan Enrollment period. If you choose not to participate in the Non-Qualified Plan, you will not be restricted from changing your deferral election in the Qualified Plan. Please read the material in this Guide carefully to make sure you have a complete understanding of how the Plan works. If you have questions after reviewing this material, please call Stefani Petty at or SBPetty@bbandt.com We hope you will take full advantage of what the Non-Qualified Plan has to offer. Sincerely, BB&T Benefits Administration 2017 Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 2

3 TABLE OF CONTENTS Important Facts to Understand and Remember Plan Highlights How to Enroll Online Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 3

4 IMPORTANT FACTS TO UNDERSTAND AND REMEMBER If you want to enroll in the Non-Qualified Plan for 2017, you must enroll between June 1 and June 30, If you do not enroll by June 30, 2016, it will be assumed that you elect not to enroll in the Non-Qualified Plan for If you elect to participate in the Non-Qualified Plan for 2017: During the 2017 Non-Qualified Plan Enrollment period (June 1 June 30, 2016), you have the opportunity to elect deferral percentages for both the Non-Qualified Plan and the Qualified Plan. Due to federal requirements, your deferral elections will remain fixed for the entire year. No deferral election changes may be made after June 30, 2016, for your 2017 deferral elections in either Plan. Your deferral percentage in the Non-Qualified Plan is fixed and cannot be changed for the entire 2017 calendar year. You will not be able to change your Non-Qualified Plan deferral election until the 2017 Non-Qualified Enrollment period. You cannot change your Qualified Plan deferral election during the 2017 plan year. The Qualified Plan deferral elections made during the Non-Qualified Defined Contribution Plan Enrollment period will remain in place for the entire 2017 plan year. The election you make as to the timing of your distribution during this enrollment process CANNOT be accelerated in future years. For example, if you elect to have your distribution made to you within 60 days following attainment of age 65, you are restricted from subsequently electing to have your payment made to you within the 60 days following your separation from service (assuming you leave BB&T prior to attaining age 65). Timing elections also cannot be changed to defer payments, unless the new payment start date is at least five years after the payment start date currently in place. No changes can be made to this election once you reach age 60. Changes to timing or form of payment elections must be in place for 12 months to be effective. All of your compensation is subject to this deferral election. You will not make a separate election for annual incentive payouts. The maximum deferral percentage is 50%. Employer matching contributions will continue to go into the Qualified Plan until they reach the allowable limit. If you elect NOT to participate in the Non-Qualified Plan for 2017: Your deferrals in the Qualified Plan will stop once they reach the Internal Revenue Service (IRS) imposed limits. You will not be able to participate in the Non-Qualified Plan for the entire 2017 calendar year Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 4

5 PLAN HIGHLIGHTS Purpose of the Plan The primary purpose of the Non-Qualified Plan is to allow tax-deferred contributions that are otherwise restricted under the Qualified Plan due to limits imposed by the IRS. The Plan is not intended to be a tax-qualified plan under the Internal Revenue Code; therefore, balances from the Plan are not eligible for rollover to an IRA or a qualified plan. Becoming a participant Participation in the Non-Qualified Plan is open to BB&T associates who meet the IRS definition of highly compensated and management associates. Associates who earn $120,000 or more (salary and bonuses) in calendar year 2016 are considered highly compensated for calendar year 2017 participation. Only associates who are projected to exceed $120,000 based on pay through April 30, 2016, will be eligible. You must also be a participant in the Qualified Plan to be eligible to participate in the Non-Qualified Plan. Open Enrollment begins each June for new participants. How the Plan works The Non-Qualified Plan gives participants the opportunity to continue their pre-tax deferrals and or Roth deferrals after they reach maximum limits in the Qualified Plan. In a qualified plan contributions are restricted by certain government limitations. When a participant defers 1-50% of compensation on a pre-tax basis and or an after-tax basis in the Qualified Plan, these contributions are matched according to the Plan s matching formula up to the maximum deferral limits for When the maximum salary limit or deferral limit is reached in the Qualified Plan, a participant s contributions are then contributed into the Non-Qualified Plan. See the examples on pages 8 and 9 to understand better how your deferrals and matching contributions are recognized in each Plan. You may invest your money in the Non-Qualified Plan in any of the investment funds available, or in the selfdirected brokerage account. The funds offered in the Plan may be changed from time to time government limitations You may defer a maximum of 50% into the Qualified Plan in 2017, subject to the following limits (the 2017 IRS limits have not been announced): Maximum qualified plan deferral limit: 50% (pre-tax and Roth deferral cannot exceed 50% of the combined deferral) 2016 Maximum associate deferrals: $18,000* *Participants age 50 and older can contribute an additional $6,000 to the Qualified Plan. Please note that catch-up contributions are not eligible for employer matching contributions. Matching contributions As stated above, participants will receive a matching contribution in the Qualified Plan according to the Plan s matching formula up to the maximum deferral limits for Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 5

6 Payment options Payments can begin at one of the following times (your Timing Election ): Within 60 days following your separation from service with BB&T February of the year following your separation of service Within 60 days following your attainment of age 65 February of the year following the year in which you attain age 65 Consider your Timing Election carefully because future changes are limited. You may elect to receive your account balance in one of the following two ways (your Distribution Election ): Lump Sum payment Approximate equal monthly payments to you over a term certain not to exceed 180 months You may change your Distribution Election and Timing Election; however, changes do not become effective until one year following the change. For example, if you elect to change your payment options in December, then you separate from service in June, your change would not yet be effective and your prior election would govern. If you are a new participant, your Distribution and Timing Elections are effective immediately. Payments are not eligible for roll-over to a qualified plan. Section 409A of the Internal Revenue Code states that you will be subject to income tax and a 20% excise tax if you accelerate the start of payments after you first elect a payment option. For this reason, the Plan does not permit any change to accelerate your payments. In addition, although you can change your Timing Election to defer the start of payments, the new start date must be at least five years after the start date of the election currently in place. Once you reach age 60, you cannot make changes to your Distribution and Timing elections. Unforeseeable emergency payments Distributions from the Non-Qualified Plan are available for unforeseeable emergency payments. An unforeseeable emergency is a severe financial hardship resulting from a sudden and unexpected illness or accident, loss of your property due to casualty, or other similar extraordinary and unforeseeable circumstances beyond your control. You may make the request to the BB&T Associate Benefits Plan Committee to receive a cash payment in a lump sum of all or a portion of the total amount credited to your account. The Committee has sole and absolute discretion, and its decision to grant or deny a payment shall be final. An unforeseeable emergency payment shall not exceed the amount required to meet the financial hardship created by the emergency. You must have received all amounts that are available from other resources, including amounts available from the Qualified Plan Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 6

7 Investments As with the Qualified Plan, you elect the investment directions for your Non-Qualified Plan account, selecting from investments provided under the Plan. There are a variety of investment options to choose from (details of each investment option are available through the Plan s website at A selfdirected brokerage option is available through TD Ameritrade TM. If you are a new participant, your 2017 Non-Qualified Plan contributions will automatically default to the BB&T Associate Deposit Account, unless you make other investment elections. You may make changes to your investment elections at any time through these changes will be effective immediately, including any current contributions. Becoming vested in your Plan account In the Qualified Plan your account balance is fully vested (i.e., nonforfeitable). However, a participant s balance in the Non-Qualified Plan constitutes a general unsecured obligation of BB&T; therefore, your rights under the Plan are no greater than the rights of an unsecured creditor of BB&T. The payment of benefits is subject to the risk of corporate insolvency. Enrollment June 1 is the start of Open Enrollment. All newly eligible participants who wish to participate in 2017 must go through the enrollment process. To enroll, access and follow the instructions on page 10 of this Guide. Remember: to review your Qualified Plan deferral election as you will not be allowed to make changes after June 30, How long do you have to enroll? The Open Enrollment period for the 2017 Plan year starts June 1, 2016, and ends June 30, Remember: The next opportunity to elect to participate or change your deferral percentage in the Non-Qualified Plan and Qualified Plan will be June 2017 for the 2017 Plan year. Can you stop or change your contributions during the year? If you elect to participate in the Non-Qualified Plan, your deferral elections in the Non-Qualified Plan are irrevocable until the next Open Enrollment period. You cannot change your Qualified Plan deferral election during the plan year. How do you add or change your beneficiary(ies)? You can add or change a beneficiary for the Non-Qualified Plan through Workday. Begin by clicking the Workday button on InSite. When Workday opens, click the Benefits icon on the homepage. Under Change, click Retirement Savings. On the next screen, click the edit button in the top left corner. On the next screen, click the Continue button. Scroll down to the Non-Qualified Retirement row, to add a beneficiary click the + symbol, then click the prompt symbol, a list will appear displaying people you have previously entered in the system. To designate them, you can click their name. If you want to designate someone who is not listed, click Create. To delete a designated beneficiary click the x symbol. Please note if you are a new participant in the Non-Qualified Plan in the 2017 plan year, you will not be eligible to designate your beneficiary(ies) through Workday until January 1, Would you like to find out more about how your deferrals will be counted in the Non-Qualified Plan if you elect to participate beginning January 1, 2017? If so, look at the examples on pages 8 and Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 7

8 EXAMPLE 1 Assumptions: $100,000 salary $20,000 bonus paid in March Associate elects to participate with a total deferral of 6% MONTHLY SALARY January $8, $500 $250 $0 $0 Bonus $20, $1,200 $600 $0 $0 February $8, $500 $250 $0 $0 March $8, $500 $250 $0 $0 April $8, $500 $250 $0 $0 May $8, $500 $250 $0 $0 June $8, $500 $250 $0 $0 July $8, $500 $250 $0 $0 August $8, $500 $250 $0 $0 September $8, $500 $250 $0 $0 October $8, $500 $250 $0 $0 November $8, $500 $250 $0 $0 December $8, $500 $250 $0 $0 Total $120,000 $7,200 $3,600 $0 $0 EXAMPLE 2 Assumptions: $100,000 salary $20,000 bonus paid in March Associate elects to participate with a total deferral of 25% MONTHLY SALARY January $8, $2, $1, $0 $0 Bonus $20, $5, $2, $0 $0 February $8, $2, $1, $0 $0 March $8, $2, $1, $0 $0 April $8, $2, $1, $0 $0 May $8, $2, $1, $0 $0 June $8, $2, $1, $0 $0 July $8, $ $ $1, $0 August $8, $0 $0 $2, $0 September $8, $0 $0 $2, $0 October $8, $0 $0 $2, $0 November $8, $0 $0 $2, $0 December $8, $0 $0 $2, $0 Total $120,000 $18,000 $9,000 $12,000 $0 Note: These examples use 2016 IRS limits Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 8

9 EXAMPLE 3 Assumptions: $220,000 salary $50,000 bonus paid in March Associate elects to participate with a total deferral of 6% MONTHLY SALARY January $18,333 $1,100 $550 $0 $0 Bonus $50,000 $3,000 $1,500 $0 $0 February $18,333 $1,100 $550 $0 $0 March $18,334 $1,100 $550 $0 $0 April $18,333 $1,100 $550 $0 $0 May $18,333 $1,100 $550 $0 $0 June $18,334 $1,100 $550 $0 $0 July $18,333 $1,100 $550 $0 $0 August $18,333 $1,100 $550 $0 $0 September $18,334 $1,100 $550 $0 $0 October $18,333 $1,100 $550 $0 $0 November $18,333 $1,100 $550 $0 $0 December $18,334 $1,100 $550 $0 $0 Total $270,000 $16,200 $8,100 $0 $0 EXAMPLE 4 Assumptions: $220,000 salary $50,000 bonus paid in March Associate elects to participate with a total deferral of 25% MONTHLY SALARY January $18,333 $4,583 $2, $0 $0 Bonus $50,000 $12,500 $6,250 $0 $0 February $18,333 $917 $ $3,666 $0 March $18,334 $0 $0 $4,584 $0 April $18,333 $0 $0 $4,583 $0 May $18,333 $0 $0 $4,583 $0 June $18,334 $0 $0 $4,584 $0 July $18,333 $0 $0 $4,583 $0 August $18,333 $0 $0 $4,583 $0 September $18,334 $0 $0 $4,584 $0 October $18,333 $0 $0 $4,583 $0 November $18,333 $0 $0 $4,583 $0 December $18,334 $0 $0 $4,584 $0 Total $270,000 $18,000 $9,000 $49,500 $0 Note: These examples use 2016 IRS limits Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 9

10 HOW TO ENROLL ONLINE To make new elections for the Non-Qualified Plan for 2017, access on or before June 30, STEP 1. Log on to PlanTrac On the PlanTrac homepage enter your User ID, and click the LOGON button. On the new screen that loads enter your Password, and click Log On. If you have not selected a User ID, a Password, and/or Security Questions, click the Create User ID and Password link, and follow the instructions provided. STEP 2. Welcome to PlanTrac Click the circle beside BB&T Non-Qualified Deferred Compensation Plans. STEP 3. Summary In the navigation on the left side of your screen, click Plan Enrollment. Next, click the Annual Enrollment Elections link. STEP 4. Non-Qualified Plan Enrollment Election Select to participate or not to participate in the Non-Qualified Plan beginning January 1, Once you have made your election, click Continue. If you elect not to participate, you will automatically be taken to Step 6 below. STEP 5. Contribution Election, Distribution Election and Timing Election If you elect to participate, you will be asked to input a deferral percentage for the Non-Qualified Plan and a deferral percentage for the Qualified Plan. If you are a previous participant, your 2017 elections are prefilled for you. To make a change to your deferral percentage, simply type in the new percentage. Remember the Non-Qualified Plan Enrollment period is the only time you are allowed to change your deferral percentages for either Plan. The Maximum Non-Qualified Plan pre-tax and Roth deferral cannot exceed 50% of the combined deferral. Scroll down the page to elect or review your distribution method (elect when payment(s) should begin). When electing the timing of your distribution choose carefully because it cannot be accelerated in future years. To change your Distribution Election or Timing Election, click on the circle next to the corresponding option. Since you cannot accelerate payments, you will only be presented with allowable timing options. Once you have made all your elections, click Continue. STEP 6. Confirmation Your final step is to confirm your elections. You must confirm your elections for your choices to be in effect January 1, If you select Cancel, you will be taken back to the beginning of the enrollment process. If you select Submit, you are confirming your elections. You may choose to print a PDF copy of your elections from this screen. You may make changes to your elections at any time up to June 30. A final confirmation letter will be mailed to your home address at the end of the enrollment period. Please note: The deferral percentages you elect in both Plans will be effective January 1, If you are a new participant, your Distribution and Timing Elections will also be effective January 1, If you are a current participant, changes to your Distribution and Timing Elections do not become effective until one year following the date the elections are made. The new start date must be at least five years after the start date of the elections currently in place Supplemental Non-Qualified Enrollment Guide for Associates of CRC Insurance Services, Inc. 10