YORK COLLEGE OF PENNSYLVANIA DEFINED CONTRIBUTION RETIREMENT PLAN SUMMARY PLAN DESCRIPTION

Transcription

1 YORK COLLEGE OF PENNSYLVANIA DEFINED CONTRIBUTION RETIREMENT PLAN SUMMARY PLAN DESCRIPTION July 1, 2016

2 INTRODUCTION York College of Pennsylvania (the College ) established the York College of Pennsylvania Defined Contribution Retirement Plan (the Plan ) to provide its eligible employees with an opportunity to save for retirement on a tax deferred basis. The College s Director of Human Resources is the Plan Administrator. The Plan Administrative Committee (the Committee ) shall consist of the individuals serving the College as appointed by the College President. This Committee has responsibility for overall Plan management. The College and the Committee generally act through the College's Human Resources Department with respect to Plan matters. All of the Plan's assets are held by independent parties in annuity contracts or separate custodial accounts. Those parties are: Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF) as annuity issuers, and JPMorgan Chase Bank, N.A., as custodian of custodial accounts, with TIAA serving as custodial account recordkeeper. Highlights of the Plan and answers to many questions employees are likely to ask are provided in this summary plan description. Although every effort has been made to describe the essential provisions of the Plan as accurately as possible in this booklet, the requirements for participation and the benefits payable will be determined strictly in accordance with the Plan document and any regulations, which are available from the Human Resources Department and the custody agreements or annuity contracts issued in connection with the Plan. This summary plan description describes the Plan as effective on July 1, 2016.

3 YORK COLLEGE OF PENNSYLVANIA DEFINED CONTRIBUTION RETIREMENT PLAN SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS Question Page Number Question Number PLAN PARTICIPATION Am I eligible for the Plan? Which groups of employees are not eligible?... 1 PARTICIPANT CONTRIBUTIONS How do I contribute to the Plan? What is my compensation? May I contribute to the Plan on an after tax basis? May I make rollover contributions to the Plan?... 3 COLLEGE MATCHING CONTRIBUTIONS How much will the College contribute as a matching contribution? Are there any limitations on the amounts that I or the College may contribute to my accounts under the Plan?... 4 FUND ADMINISTRATION Who holds contributions to the Plan? May I direct investment of my account? What are the investment categories? What happens to earnings or losses? What investment expenses are charged to my account? Where can I get more information about the investment options?... 7 RETIREMENT BENEFITS When may I retire under the Plan? What if I am disabled? If I retire, when will my account balance be distributed? In what form will my account balance be distributed?... 8 DEATH BENEFITS What happens if I die before retirement? Who will receive the distribution?... 9 TERMINATION OF EMPLOYMENT What happens if my employment terminates? What is my benefit amount?... 10

4 23. When will my benefit be distributed? LOANS May I borrow from my accounts? IN-SERVICE DISTRIBUTIONS May I make a withdrawal from my accounts while I am still employed by the College? How do I qualify for a hardship distribution? LEGAL AND TAX CONSIDERATIONS May the Plan be amended or terminated? Are my benefits under the Plan insured? May I lose my benefits for any reason? Are there any legal limitations or federal tax consequences related to my benefits? PLAN ADMINISTRATOR Who administers the Plan? What happens if I disagree with a decision of the Committee concerning my Plan benefits or eligibility? ERISA RIGHTS What are my rights under ERISA? BASIC INFORMATION Name of Plan: Name and address of the Plan Sponsor: Employer Identification Number of the Type of Plan: Name and address of the Plan's Annuity Providers : Name and address of the Plan s Custodian: Name, address and telephone number of the Plan Administrator: Type of Administration: Name of person designated as Agent for Service of Legal Process and the address at which such Process may be served: Plan Year: July 1 to June ii

5 PLAN PARTICIPATION 1. Am I eligible for the Plan? Employee Elective Contributions. You are eligible to make elective contributions as of the day you begin work for the College, with the one exception that student employees are not eligible to make elective contributions. College Matching Contributions. You are eligible to receive College matching contributions for all payroll periods that you make elective contributions if you are in one of the job classifications described below and are not classified by the College as a temporary employee. Employees who are a regular faculty member that the College engages by written contract to serve for a period of at least one academic year and specifies an annual rate of salary. Administrators that the College engages by written letter of employment that specifies an annual rate of salary, other than a part-time sports coach or person in a related position that the College compensates at a predetermined amount for services provided in connection with a particular sport or sports. Staff members who have a written letter of employment that specifies a semi-monthly rate of pay. 2. Which groups of employees are not eligible? Student employees are not eligible to participate in the Plan. Any person the College determines is not its employee for purposes of federal income tax withholding is not eligible to participate in the Plan. Employees who do not meet the eligibility rules for College matching contributions are not eligible for those contributions even if they are eligible to make elective contributions and do make such contributions. 3. How do I contribute to the Plan? PARTICIPANT CONTRIBUTIONS If you qualify for participation you will have the option of entering into a salary reduction agreement that authorizes the College to reduce your compensation (see Question 4) by an amount you specify and make a contribution of that amount to the Plan on your behalf. Any amount you elect to have contributed on a before tax basis will not be included in your taxable income for federal income tax purposes. You will receive enrollment information when you begin employment.

6 You may elect to save in 1.0% increments of your compensation (see Question 4); however, this resulting dollar amount may not be greater than the maximum dollar amount that the law permits. The maximum dollar amount for calendar year 2016 is $18,000. In addition, if your 50th birthday occurs on or before December 31, 2016, you may contribute an additional $6,000 for calendar year This additional amount is referred to as a catch-up contribution. (You should be aware that the annual maximum includes the total of your contributions to all tax qualified deferred compensation plans, including plans like the College's Plan, in which you participated during the calendar year.) The ordinary contribution limits ($18,000 for 2016) and the additional amount for employees who are at least age 50 ($6,000) for 2016) may be increased in later years to reflect cost of living increases. Note: If you have at least 15 years of service with the College, in addition to the above age 50 catch-up contribution, you may be eligible to make another type of catch-up contribution of up to $3,000 in a given year. Contact the Human Resources Department for more information if you are interested in making this additional type of catch-up contribution. You may elect to terminate your contributions or increase or decrease your elective contributions at any time. To make changes in your contributions, you must complete the appropriate election form and deliver it to the Human Resources Department. Your elections will be effective as soon as administratively feasible after you make them. 4. What is my compensation? For Plan purposes, compensation means the base salary or hourly wages that the College pays to you while you are an active employee for services that you render. Compensation also includes your pretax contributions to any other College benefit plan. Compensation does not include overtime, bonus, overloads, stipends, supplemental pay, accrued vacation payouts, severance or termination pay or other amounts paid after your employment terminates. Compensation does not include deferred compensation, expense reimbursements of any kind, the value of welfare benefits or any other item not expressly included in the first paragraph of this section. The amount of compensation that the Plan may recognize each year is limited by law. The limit is $265,000 for This limit may be increased in the future to reflect permitted cost of living increases. 5. May I contribute to the Plan on an after tax basis? Yes. You have the right to specify that all or a portion of your contributions are made on an after tax basis. Any elective contributions that you make that exceed the pre tax elective contribution limits explained at Q & A 3 must be on an after tax basis

7 Be aware, however, that contributions that you elect to make on an after tax basis are not eligible for matching contributions unless you were making such contributions on or before July 1, 2004 by salary reduction. 6. May I make rollover contributions to the Plan? You may transfer certain amounts from an individual retirement account ( IRA ) or a previous employer's tax sheltered annuity plan or qualified retirement plan to this Plan. If you are interested in making this type of transfer, please contact the Human Resources Department. COLLEGE MATCHING CONTRIBUTIONS 7. How much will the College contribute as a matching contribution? If you make elective contributions and are in a job classification that is eligible to receive matching contributions (see Question 1), then you are eligible to have the College make a matching contribution to the Plan for your benefit. The amount of matching contribution is $1 for each $1 you contribute from the first 4% of your compensation for each pay period. However if you contribute at least 5% of your compensation, then the College will contribute 10% of your compensation. Therefore, to take the best advantage of the benefits this Plan offers, you should consider contributing at least 5% of your compensation. Matching contributions are determined and made on a semi-monthly payroll period basis. The formula applies to each payroll period in the calendar year. The College reserves the right to change the matching contribution rate. You will be advised before the effective date of any change. The examples below show how the matching contribution formula works. Example 1. Participant A has compensation of $1,000 for a payroll period and elects to make contributions equal to 2% of his compensation. The contribution from Participant A's compensation is $20 (.02 x $1,000 = $20). The matching contribution rate is $1 for $1. Under the matching contribution formula, the College will contribute $20 for allocation to A's account for the payroll period. Example 2. If Participant A elected to contribute 5% (or more) of his compensation (.05 x $1,000 = $50), the match would be $100 since the matching contribution for any participant who contributes at least 5% of compensation is 10% of compensation (.1 x $1,000 = $100). Note: The College does not match contributions made on an after tax basis except with respect to employees who were making after tax contributions on or before July 1, Also, the College does not match pre tax contributions that you allocate to a supplemental savings account rather than to a basic savings account

8 8. Are there any limitations on the amounts that I or the College may contribute to my accounts under the Plan? The College matching contributions under the Plan must satisfy certain Internal Revenue Code nondiscrimination tests. Accordingly, if you are a highly compensated employee, the amount of matching contribution allocated to your account may be limited in order for the Plan to satisfy these nondiscrimination tests. In addition, it may be that some portion of your matching contribution for the year may be distributed to you to allow the Plan to satisfy these tests. Whether or not you are a highly compensated employee is determined under Internal Revenue Code regulations. Generally, employees who earned over $120,000 for 2016 are highly compensated employees. This Compensation level is adjusted annually to reflect cost of living increases. In addition, the Internal Revenue Code imposes certain limitations on the total amount of all contributions that may be allocated to your accounts in any plan year. This includes elective contributions (both pre tax and after tax) and matching contributions. The amount that may be allocated may not exceed 100% of your compensation, subject to a maximum dollar limit. The dollar limit is $53,000 for 2016 (plus an additional $6,000 if you are at least age 50). 9. Who holds contributions to the Plan? FUND ADMINISTRATION Your contributions and the College's contributions are held by Teachers Insurance and Annuity Association (TIAA), under annuity contracts, or by JPMorgan Chase Bank, N.A. in a custodial account that is invested in mutual funds. TIAA also serves as the recordkeeper of the custodial account investments. 10. May I direct investment of my account? You select from among the investment companies listed in Question 9 and the specific funds or investment contracts that they offer for investment of Plan contributions, as listed on Appendix A. When you enroll in the Plan, you must choose the investment company or companies and the fund or funds that will hold contributions you make or the College makes for your benefit. The election you make applies to your elective contributions, rollovers and College contributions. You can change how your future contributions are invested. The new election will apply to contributions allocated to your accounts after the change becomes effective. In addition, you can change the investments for existing accounts. You make investment elections and changes in investment elections by contacting TIAA. The contact information is below:

9 TIAA: Automated Telephone Service: Telephone Counseling Center: Website: Your election to make changes in investment categories and your contribution allocation mix will become effective in accordance with procedures that the investment companies and custodian have established. You should be aware that the College and the Committee are not responsible for any loss that results from any delay in giving effect to an investment election. In addition, the rules applicable to a particular investment fund or option may limit transfers, impose penalties on transfers or otherwise limit your right to make changes. If you have any questions about limitations or restrictions, you should contact the investment company that holds your account or the investment company that you have selected to receive new contributions or transfers, as the case may be. If you need additional assistance, please contact the Human Resources Department. You may make investment changes without cost, subject to annuity contract provisions, mutual fund short-term redemption fees and/or frequent trading fees that are explained in the prospectus of any fund that imposes any of those fees. You should review the prospectus before taking action. Your account is not charged any fee or other expense in connection with an initial investment decision or a change in investment decision with respect to any fund. Note: Please check with the investment company if you are considering a short-term investment in any fund to determine whether any short term redemption fee or trading restriction applies. As noted, the Plan allows you to exercise control over amounts in your individual accounts by giving you the opportunity to select among a number of separate diversified investment funds and to change your investment selection effective on a regular basis. Section 404(c) of the Employee Retirement Income Security Act of 1974, as amended ( ERISA ), relieves fiduciaries of a plan that gives participants certain rights over the investment of their retirement plan accounts from liability for losses that are the direct and necessary result of following a participant's investment instructions. Since the Plan gives you substantial control over the investment of your accounts, the Plan is intended to be a plan described in section 404(c). Accordingly, you are responsible for the investment decisions you make. The Plan's fiduciaries are not responsible for investment losses you may suffer as a result of your investment elections. The Committee may limit your right to (a) increase or decrease contributions to a particular investment category, (b) transfer amounts to or from a particular investment category or (c) transfer amounts between particular investment categories, if such limitation is required under the rules establishing or maintaining an investment category

10 As an alternative to you, individually, selecting and managing your Plan investments, you may select and appoint an investment advisor to discuss your Plan Account with a TIAA representative, receive information about your Plan Account from TIAA, and act on your behalf with respect to the investment and reinvestment of your Plan Account between and among the Appendix A investments, subject to the condition that any such investment advisor must be a person or entity that has satisfied any and all eligibility requirements TIAA may impose for participation in this individual investment advisor program, and also subject to your execution of applicable TIAA authorization forms and to any other restrictions and guidelines imposed by TIAA and the College on this individual investment advisor program. Your selection and appointment of such an investment advisor to assist you with the management of your Account, and the continuation of such appointment, shall be within your sole and absolute discretion, and any such appointment shall continue in full force and effect until terminated by you in writing. Termination of the investment advisor's authority hereunder to direct the investment and reinvestment of assets in the Member's Account shall be effective immediately upon receipt from you of written notice of termination, provided that TIAA shall honor any trades entered but not settled before the date of any such termination. You shall be solely responsible for payment of any fees and other similar costs arising out of the appointment of an investment advisor, and you will be able to authorize TIAA to pay any such costs directly from your Plan Account by executing a fee billing authorization agreement. The College and TIAA shall not be liable for any expenses, losses, damages, liabilities, demands, charges or claims of any kind or nature whatsoever (including without limitation any legal expenses and costs and expenses relating to investigating or defending any demands, charges or claims) by or with respect to the services rendered by your investment advisor. If you want more information about this individual investment advisor program, please contact the College s Human Resources Department. 11. What are the investment categories? The Committee has arranged with the investment companies to make a number of investment funds and options available to you for investment of your contributions. Information about each of the available funds and options is available to you when you initially enroll in the Plan. Before making your selections or when considering changes to your existing elections, you should read the information distributed to you about investing and about the particular funds and such additional information as may be helpful to you. In addition, you may obtain information about a fund and the prospectus or other disclosure document (or directions about how to obtain a prospectus) directly from the investment company that sponsors it. The Committee may from time to time add or delete investment funds and will provide you with an updated Appendix A whenever doing so. You may request the additional information listed below about any of the investment funds by requesting the information from the investment company that sponsors it. If

11 you have any difficulty getting the information you need or request, you may contact the Human Resources Department for assistance. A description of the annual operating expenses for each investment fund which reduce its rate of return and the aggregate amount of such expenses expressed as a percentage of the fund's average net assets. A copy of the prospectuses, financial statements and reports and other materials which are provided to the Committee. The value of your account invested in a particular fund. Past and current investment performance of an investment fund, determined net of expenses, which the Plan offers or in which your account is invested. 12. What happens to earnings or losses? Each investment category is valued on a regular basis, usually every business day. Your account is credited with its share of the investment gains, losses, income and expenses of each investment category in which it is invested according to uniform rules that apply to that investment fund or contract. 13. What investment expenses are charged to my account? The current investment options are offered with no sales or redemption charge other than possible short-term redemption and/or frequent trading fees that are described in the prospectus for the fund. Brokerage or trading costs and mutual fund administrative fees of certain investment funds reduce the yield of the funds. 14. Where can I get more information about the investment options? You can obtain additional information about any of the investment opportunities that the Plan contains by contacting TIAA, both with respect to annuity investment opportunities and mutual fund investment opportunities. Of course, you may consult with your own financial advisor about the Plan's investment options and your selections. Here are some basic points to keep in mind. You can spread your investments among several options to take advantage of what each has to offer and help balance different types of risk. This is known as diversification. An investment option's share/unit price will vary with its investment experience; therefore, you may have a gain or loss when you liquidate or sell your interest in an investment fund. Also, investment income and return (yield) will vary

12 15. When may I retire under the Plan? RETIREMENT BENEFITS Your normal retirement date is your 65th birthday. You may retire from the College s employment prior to your 65th birthday, but Plan payments made to you prior to age 59½ may be subject to a 10% early distribution tax in addition to ordinary income taxes. Your account balance will be distributed to you after you retire (see Questions 22 and 23). If you continue as an eligible employee after your normal retirement date, you remain eligible to make contributions and share in matching contributions. 16. What if I am disabled? The Plan defines disability as a condition that qualifies you for benefits under the College's short term disability plan. To the extent Internal Revenue Code rules permit, the College will make contributions for you during the period you are receiving short term disability benefits. The contribution will be the sum of your before tax elective contributions at the rate in effect immediately before your disability, but not more than 5% of compensation, and the matching contribution on that rate of elective contribution. If you are receiving benefits under the College's long term disability insurance plan, contributions to this Plan will be continued if and to the extent provided for in the long term disability policy, subject to applicable Internal Revenue Code rules. 17. If I retire, when will my account balance be distributed? Ordinarily your account will be distributed as soon after your retirement as is administratively feasible; but you have the option of deferring the payment of your retirement benefits until you reach age 70½ (unless otherwise provided in an annuity contract in which you have elected to invest your account). 18. In what form will my account balance be distributed? If your account is invested in an annuity contract, the benefit will be paid in the form of annuity or other settlement that you elect in accordance with the contract's terms. If you are married, the annuity contract will require you to elect a form of annuity payment that includes a surviving spouse's benefit to your spouse if he or she survives you, unless your spouse gives written consent to another form of payment and the consent is appropriately witnessed by a notary public or a representative of the plan administrator. More information about the forms of annuity settlement and other options that are available under the TIAA investment funds is available in publications that TIAA make available to you without charge. If your account is invested in a mutual fund, your account will be distributed in a single lump sum or in regular installments, as you elect in accordance with the rules that apply to that investment account

13 19. What happens if I die before retirement? DEATH BENEFITS If you die before your retirement or complete distribution of your account to you, your account will be distributed to your beneficiary as explained below. If your account is invested in a mutual fund, the balance in the account at the time of your death is a death benefit. If you are receiving annuity payments at the time of your death, the form of annuity you elected will determine whether any death benefits are payable. For example, if you elected a straight life annuity for your life, no payments will be made after your death. If you elected a joint and survivor annuity, the survivor annuitant will receive the survivor portion of the annuity payments after your death assuming he or she survives you. If you elected an annuity with a minimum number of payments guaranteed and die before the last guaranteed payment is made, your beneficiary will receive the remainder of the guaranteed payments. If your account is invested in an annuity contract and payments have not yet started at the time of your death, the terms of the annuity contract will determine to what extent a death benefit is payable. 20. Who will receive the distribution? You may designate the person or persons who will receive the death benefit payable in the event of your death. Such person (or persons) is called your beneficiary. Beneficiary designation forms for your annuity and custodial accounts are available from TIAA or from the Human Resources Department. The form should be mailed to the address indicated on the form or instructions to it and a copy may be delivered to the Human Resources Department. TIAA: To obtain forms, please call the Telephone Counseling Center at or use the internet access at Under federal law, if you are married at the time of your death, under the Qualified Joint and Survivor Annuity rules your spouse must be your beneficiary under the Plan and will receive a survivor annuity benefit equal to 50% of the amount of the annuity payable to you during your life unless your spouse consents in writing to your designation of a different beneficiary on the beneficiary form and your spouse's consent is witnessed by a notary public or a representative of the Plan administrator. Accordingly, if you are now married and have designated a beneficiary other than your spouse, your beneficiary designation will not be effective unless your spouse consents on the appropriate form. Further, if you are now single but marry later, you should obtain your spouse's consent to your designation if you designate someone other than your spouse. Once given, your spouse may not revoke his or her consent to your beneficiary designation. However, if you designate a new beneficiary, then you must obtain a new consent from your spouse

14 If you designate someone other than your spouse as your beneficiary and your spouse does not consent, your spouse will receive 100% of your account. If you designate your spouse as beneficiary and later become divorced, your beneficiary designation becomes invalid. Therefore, if you become divorced, you should make a new beneficiary designation. If you do not designate a beneficiary or if your beneficiary dies before you or if your designation is invalid for any reason, your death benefit will be distributed to: (a) (b) Your spouse, if living, or if not; to Your estate. If your beneficiary dies after you but before receiving benefit payments, the benefit will be payable to the beneficiary's estate. TERMINATION OF EMPLOYMENT 21. What happens if my employment terminates? You will always be 100% vested in your contributions and the College's matching contributions made for you. 22. What is my benefit amount? Your benefit amount is the proceeds received on liquidation of your account balance for distribution or the amount payable under the annuity contract that you have selected. 23. When will my benefit be distributed? Your benefit at your termination of employment prior to your normal retirement date will be distributed as soon after your termination of employment as is administratively feasible. You will be given or may request distribution election forms on which you may elect that the value of your account be distributed to you (less applicable withholding) or be transferred directly to an individual retirement account or annuity ( IRA ) or a new employer's plan or other tax favored retirement program. 24. May I borrow from my accounts? LOANS Plan loans are permitted as provided in Appendix B. If you want to borrow, contact TIAA at the contact numbers shown at Q & A 20. TIAA will explain the loan rules to you if you have occasion to borrow. Please note that if you do borrow, you will have to make loan repayments, with interest, on a regular basis or you will incur adverse income tax consequences

15 IN-SERVICE DISTRIBUTIONS 25. May I make a withdrawal from my accounts while I am still employed by the College? If you have contributed amounts that you earmarked for a supplemental savings account, which is an account that is not eligible for matching contributions, you may withdraw amounts from that supplemental savings account if you are at least age 59½ or have a hardship. To the extent permitted by the annuity contracts or other investments you chose, you may also be able to take a hardship or age 59 ½ distribution of elective contributions you made to your basic savings account. In addition, you may make a withdrawal if you were a participant in the Plan prior to July 1, 2004 and the withdrawal was permitted under the Plan's terms at that time as well as the investment funds in which your accounts are held. Notwithstanding the foregoing, if you have attained age 59 1/2 and in lieu of fully retiring continue employment with the College in a reduced hours capacity that is considered a non-benefit status, you will be eligible for in-service distributions from Employee elective contributions and College matching contributions. 26. How do I qualify for a hardship distribution? For purposes of the Plan, hardship means an immediate and serious financial need resulting from (i) medical expenses for you or one of your dependents; (ii) tuition and related fees and expenses for the next 12 months of post-high school education for you or one of your dependents; (iii) the purchase of your principal residence; (iv) your threatened eviction from or mortgage foreclosure on your principal residence; (v) funeral expenses for your deceased spouse, parents, children or certain other dependents or (vi) expenses for repair of damage to your principal residence that would qualify for the casualty deduction under section 165 of the Internal Revenue Code, such as losses of non-business property resulting from fire, storm, theft and the like. The amount which may be distributed to you may not exceed your immediate need resulting from the hardship plus the income tax payable on that amount or, if less, the sum of your contributions to your supplemental and basic savings account. If you take a hardship distribution, you are suspended from making employee contributions under College plans for a period of six (6) months, which also means any College matching contributions are suspended for this period. 27. May the Plan be amended or terminated? LEGAL AND TAX CONSIDERATIONS The College reserves the right to amend or terminate the Plan at any time

16 28. Are my benefits under the Plan insured? No. Under federal statutes the Pension Benefit Guaranty Corporation does not guarantee benefits under a defined contribution plan such as this Plan. 29. May I lose my benefits for any reason? Potential benefits may be reduced by adverse investment experiences, by any taxes assessed against or payable by the Plan and by administrative costs to the extent these costs are not paid directly by the College. Your benefits may be awarded to your spouse, former spouse or dependents under the terms of a qualified domestic relations order issued under state domestic relations or community property law. Any portion of your benefits not awarded to your spouse, former spouse or dependents will be paid to you. For a copy of the Plan s procedures for determining the qualified status of a domestic relations order, please contact the College s Human Resources department. Your benefits may be subject to a federal tax levy or the collection by the United States on a judgment resulting from an unpaid tax assessment. 30. Are there any legal limitations or federal tax consequences related to my benefits? The amount of contributions that may be made for any employee under the Plan is subject to limitations imposed by the Internal Revenue Code and Regulations. Every effort will be made to advise any participant affected by these limitations. Federal tax laws are complicated and subject to change from time to time. Therefore, you should obtain independent tax advice before taking any amount out of your Plan investments. As a general rule, you should note that any amounts that are distributed to you (other than your after tax contributions, if any) are subject to federal income tax as ordinary income in the year of distribution unless you roll them over or deposit them in another tax qualified retirement plan, section 403(b) arrangement or an individual retirement account. In addition, if you are under age 59½, you will be subject to a penalty tax equal to 10% of the amount distributed and not rolled over, subject to certain exceptions. The penalty tax does not apply if you are at least age 59½. 31. Who administers the Plan? PLAN ADMINISTRATOR The College s Director of Human Resources is the statutory Plan Administrator for purposes of official reports to you and the government. The College has named a Committee to oversee the Plan's operations. Both the Plan Administrator and the Committee act through the College's Human Resources Department. The investment companies that hold your contributions and College contributions have control over the investment and administration of the investment funds and the assets

17 32. What happens if I disagree with a decision of the Committee concerning my Plan benefits or eligibility? If the Committee denies your claim, the Committee will notify you in writing within 60 days after receipt of your claim. This notification will include the specific reasons why your claim was denied, the specific reference to the Plan provisions on which the denial is based, a description of any additional information you must provide to perfect the claim and why the information is needed, and an explanation of the procedure you may follow to appeal the denial of your claim, including the time limits of the claim review procedure. You may request review by the Committee of the denied claim by filing a written notice with the Committee within 60 days after receipt of the notification of the claim denial. You may submit issues and comments at this time. The Committee will give you a full and fair review. The Committee must give you a written decision on the appeal not later than 60 days after receipt of the request for review, unless special circumstances require an extension of time, in which case the decision will not be later than 120 days after the receipt of the request for review. If your claim is again denied, the Committee must give you the specific reasons for the denial and the specific Plan references on which it is based. 33. What are my rights under ERISA? ERISA RIGHTS As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: Receive Information About Your Plan and Benefits Examine, without charge, at the plan administrator's office and at other specified locations, such as worksites, all documents governing the plan, including insurance contracts and a copy of the latest annual report (Form 5500 series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan, including insurance contracts, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The administrator may make a reasonable charge for the copies. Receive a summary of the plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report. Obtain a statement telling you whether you have a right to receive a benefit at normal retirement age (age 65) and if so, what your benefit would be at normal retirement age if you stop working under the plan now. If you do not have a right to a benefit,

18 the statement will tell you how many more years you have to work to get a right to a benefit. This statement must be requested in writing and is not required to be given more than once every twelve (12) months. The plan must provide the statement free of charge. Prudent Action by Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called fiduciaries of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of the plan documents or latest annual report from the plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the plan's decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that plan fiduciaries misuse the plan's money or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance with Your Questions If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA or if you need assistance in obtaining documents from the plan administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C You may also obtain certain

19 publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 1. Name of Plan: BASIC INFORMATION York College of Pennsylvania Defined Contribution Retirement Plan 2. Name and address of the Plan Sponsor: York College of Pennsylvania 441 Country Club Road York, PA Employer Identification Number of the 4. Type of Plan: Plan Sponsor: Plan Number: 001 Defined Contribution Plan 5. Name and address of the Plan's Annuity Providers: TIAA 730 Third Avenue New York, NY Name and address of the Plan s Custodian: JPMorgan Chase Bank, N.A. 270 Park Avenue New York, NY Name, address and telephone number of the Plan Administrator: Director of Human Resources York College of Pennsylvania Country Club Road York, PA Attention: Vicki Stewart Phone:

20 8. Type of Administration: College administered plan with assets held by independent annuity providers and custodian 9. Name of person designated as Agent for Service of Legal Process and the address at which such Process may be served: Director of Human Resources c/o York College of Pennsylvania 441 Country Club Road York, PA Attention: Vicki Stewart 10. Plan Year: July 1 to June

21 YORK COLLEGE OF PENNSYLVANIA DEFINED CONTRIBUTION RETIREMENT PLAN APPENDIX A Funding Vehicles 1. The following is a listing of Available Funding Vehicles for Contributions, Rollovers and Transfers under the Plan, as of July 1, The standard form of annuity contract, custodial account agreement, or other funding documentation (collectively, Individual Agreements ) applicable to each available Funding Vehicle is hereby incorporated into the Plan. (a) Custodial Account Maintained with J. P. Morgan Chase Bank, N.A. as Custodian and TIAA as Recordkeeper, with the available mutual fund investments being: American Beacon Large Cap Value Fund (AAGPX) CRM Small/Mid Cap Value Fund (only available until November 17, 2016) (CRMAX) Harbor International Fund Administrative (HRINX) Vanguard 500 Index Fund Admiral (VFIAX) Vanguard Extended Market Index Fund Admiral (VEXAX) Vanguard Total International Stock Fund Admiral (VTIAX) Metropolitan West Total Return Bond Fund M (MWTRX) Vanguard Federal Money Market Fund (effective November 17, 2016) (VMFXX) Vanguard Inflation Protected Securities Fund Admiral (VAIPX) Vanguard Total Bond Market Index Fund Admiral (VBTLX) T. Rowe Price Lifecycle Fund Family Eaton Vance Atlanta Capital SMID - Cap Value Fund EISMX Lazard Emerging Markets Equity Portfolio -Institutional (LZEMX) T. Rowe Price Blue Chip Growth Fund - Retail (TRBCX) Templeton Global Bond Fund - Advisor (TGBAX)

22 (b) (c) TIAA Retirement and Group Retirement Annuities,, including the TIAA Real Estate Account as an investment option CREF Stock Account, CREF Money Market Account and, CREF Social Choice Account, as investment options. 2. Contract and Custodial Account Exchanges. (a) (b) (c) (d) A Member or beneficiary is permitted to change the investment of his or her Account among the Funding Vehicles under the Plan, subject to the terms of the Individual Agreements. However, an investment change that includes an investment with a Funding Vehicle that is not eligible to receive contributions under Section 1 (referred to below as an exchange) is not permitted unless the conditions in paragraphs (b) through (d) of this Section 2 are satisfied. The Member or beneficiary must have an Account balance immediately after the exchange that is at least equal to the Account balance of that Member or beneficiary immediately before the exchange (taking into account the Account balance of that Member or beneficiary under both section 403(b) contracts or custodial accounts immediately before the exchange). The Individual Agreement with the receiving Funding Vehicle has distribution restrictions with respect to the Member that are not less stringent than those imposed on the investment being exchanged. The College enters into an agreement with the receiving Funding Vehicle for the other contract or custodial account under which the College and the Funding Vehicle will from time to time in the future provide each other with the following information: (1) Information necessary for the resulting contract or custodial account, or any other contract or custodial accounts to which contributions have been made by the Employer, to satisfy section 403(b) of the Code, including the following: (i) the College providing information as to whether the Member's employment with the College is continuing, and notifying the Funding Vehicle when the Member has had a severance from employment (for purposes of the distribution restrictions in Section 9(g); (ii) the Funding Vehicle notifying the College of any hardship withdrawal under Section 10 if the withdrawal results in a 6-month suspension of the Member's right to make elective deferrals under the Plan; and (iii) the Funding Vehicle providing information to the College or other Funding Vehicles concerning the Member's or beneficiary's section 403(b) contracts or custodial accounts or qualified employer plan benefits (to enable a Funding Vehicle to determine the amount of any plan loans and any rollover accounts that are available to the Member under the Plan in order to satisfy the financial need under the hardship withdrawal rules of Section 10; and A-2

23 (2) Information necessary in order for the resulting contract or custodial account and any other contract or custodial account to which contributions have been made for the Member by the College to satisfy other tax requirements, including the following: (i) the amount of any plan loan that is outstanding to the Member in order for a Funding Vehicle to determine whether an additional plan loan satisfies any applicable loan limitations, so that any such additional loan is not a deemed distribution under Code section 72(p)(l); and (ii) information concerning the Member's or beneficiary's after-tax employee contributions in order for a Funding Vehicle to determine the extent to which a distribution is includible in gross income. (e) If any Funding Vehicle ceases to be eligible to receive elective deferrals under the Plan, the College will enter into an information sharing agreement as described in Section 2(d) above to the extent the College's contract with the Funding Vehicle does not provide for the exchange of information described in Section 2(d)(1) and (2). 3. Current and Former Funding Vehicles. The Administrator shall maintain a list of all Funding Vehicles under the Plan. Such list is hereby incorporated as part of the Plan. Each Funding Vehicle and the Administrator shall exchange such information as may be necessary to satisfy section 403(b) of the Code or other requirements of applicable law. In the case of a Funding Vehicle which is not eligible to receive elective deferrals under the Plan (including a Funding Vehicle which has ceased to be a Funding Vehicle eligible to receive elective deferrals under the Plan and a Funding Vehicle holding assets under the Plan, the College shall keep the Funding Vehicle informed of the name and contact information of the Administrator in order to coordinate information necessary to satisfy section 403(b) of the Code or other requirements of applicable law A-3

24 YORK COLLEGE OF PENNSYLVANIA DEFINED CONTRIBUTION RETIREMENT PLAN APPENDIX B Plan Loans The Plan s loan program shall be administered by TIAA on behalf of the Plan administrator. A Member who is actively employed by the College may borrow from the Plan in accordance with the following terms and conditions: (a) (b) (c) (d) A Member may have outstanding at any one time no more than three loans, if such is permitted under the terms of the contract. The Member must apply for the loan in accordance with procedures adopted by TIAA. TIAA shall prescribe the manner in which Members apply for a loan. TIAA may require that Member apply for a loan using a specified election form, or that Members employ an alternate election means such as use of a system of telephonic or other verbal or electronic communication. TIAA will require the Member to sign a note, in the form prescribed by TIAA, payable to TIAA or the Custodian in the proper amount. Any loan processing fee (charged by a person other than the College) may be deducted from the principal amount advanced to the Member or directly from the Member s Annuity or Custodial Account. The period of repayment for any loan may be arrived at by mutual agreement between TIAA and the Member; provided, however, that the period of repayment shall not extend beyond the earlier of five years or three months after such Member s separation from service. However, as determined by TIAA at the time the loan is made, the period of repayment may be up to ten years if the loan will be used to acquire any dwelling unit used or to be used within a reasonable time as the principal residence of the Member. The amount of the loan shall be as requested by the Member, except: (1) The maximum amount of the loan shall be the lesser of: (A) (B) $50,000 reduced by the highest outstanding balance of loans to the Member from the Plan during the one-year period ending on the day before the day the loan is made; or 50 percent of the vested balance of such Member s Account. (2) The minimum amount of a Plan loan shall be $1000. (3) If the Member is also covered under another qualified plan maintained by the College, the limitations above in subsection (d)(1) shall be applied as though all such qualified plans are one plan C-1