Sample Process Flows Presentation to Under Armour August 1, 2011

Transcription

1 Sample Process Flows Presentation to Under Armour August 1, 2011

2 Sample Plan-Level Paperless Loan Procedure Paperless Loan Withdrawal Guidelines determined with Under Armour Loan Withdrawal Guidelines established on all T. Rowe Price systems Loan Withdrawal Process tested Plan participant contacts T. Rowe Price to initiate paperless loan Participant initiates loan and determines method of receipt Participant models loan scenario(s) and determines loan terms Eligible Participant paperless loan eligibility determined based on plan guidelines Not Eligible Participant can model loan scenario(s), but cannot initiate until eligible Loan processed at next close of NYSE (same day if requested before 4 PM or close of market) Check generated and mailed to participant's address of record Loan initiation information sent to Under Armour on next Loan Extract As of 8/1/2011

3 UNDER ARMOUR PLAN-LEVEL PAPERLESS LOAN PROCEDURE Determine Paperless Loan Withdrawal Guidelines with Under Armour Loan Withdrawal Guidelines established on all TRP system Loan Withdrawal Process Tested Participant contacts TRP to initiate paperless loan Based on guidelines it is determined if participant is eligible If eligible, participant can model loan scenarios Once modeling is complete, participant initiates loan If before 4 PM ET or close of market, loan is processed that night Check is generated and mailed to participant s address of record Loan initiation information is sent to Under Armour on next Loan Extract If not eligible, participant can model loan scenarios, but can not initiate until eligible

4 Sample Hardship Withdrawal Procedure Hardship Withdrawal Guidelines determined with Under Armour Hardship Withdrawal Guidelines tested for amount available Hardship Withdrawal reasons / required documentation determined by T. Rowe Price and Under Armour Plan participant contacts T. Rowe Price to request Hardship Withdrawal Participant Services Representative discusses Hardship Withdrawal eligibility and available amounts with plan participant Hardship Withdrawal Kit sent to plan participant Participant receives, completes, and signs the form(s) and returns to T. Rowe Price with any required documentation T. Rowe Price processes the Hardship Withdrawal, suspends the particiapnt's contributions, and updates participant status to "suspended" Eligible T. Rowe Price reviews for eligibility and ensures proper documentation is provided Not Eligible T. Rowe Price contacts the participant via phone or to provide explaination. T. Rowe Price unable to reach participant Check generated and mailed to participant's address of record Funds sent to participant bank account via Automated Clearing House Funds wired to participant bank account T. Rowe Price sends a letter to the participant, asking them to contact T. Rowe Price T. Rowe Price transmits the participant's salary deferral percentage of zero on the next scheduled salary deferral transmission A copy of all documentation is scanned into the T. Rowe Price recordkeeping system as a permanent record 1099-R mailed to participant's address of record by Jan. 31 of the year following distribution Hardship Restoration - Once the suspension period has passed (generally 6 months), notification is sent to the participant confirming that Pre-tax, after-tax and Roth contributions (excluding flagged Age 50 Catch-up) will automatically resume unless the participant opts out during the 30-day grace period As of 4/28/2011

5 UNDER ARMOUR HARDSHIP WITHDRAWAL PROCEDURE Determine Hardship Withdrawal Guidelines with Under Armour Hardship Withdrawal Process Tested for amount available TRP and Under Armour determine eligible Hardship Withdrawal Reasons/Documentation required Participant contact TRP to determine the amount available for a hardship withdrawal Participant requests a Hardship Withdrawal Kit Participant receives, completes, and signs the form(s) and provides required documentation to TRP for review TRP reviews for eligibility and ensure proper documentation is provided If eligible, TRP will process the Hardship Withdrawal, suspends their contributions, and updates status to Suspended. TRP generates and mails the check directly to the participant s address of record TRP will transmit the participant s salary deferral percentage of zero on the next scheduled salary deferral transmission. A copy of all documentation is scanned into the TRP recordkeeping system as a permanent record. IRS Form 1099-R will be mailed to the participant s address of record by January 31 of the year following the hardship distribution Hardship Restoration - Once the suspension period has passed (generally 6 months) a notification will be sent to the participant confirming that Pre-tax, after-tax and Roth contributions (excluding flagged Age 50 Catch-up) will automatically resume unless the participant elects otherwise during the 30-day grace period. If not eligible, TRP will contact the participant via phone or . If no contact is made, a letter will be sent to the participant asking them to contact TRP.

6 Sample Deferral Changes Procedure Salary Deferral Guidelines determined with Under Armour Plan rules for salary deferral types and limits established on all T. Rowe Price systems Salary Deferral Process tested Plan participant contacts T. Rowe Price to initiate salary deferral change Participant salary deferral is updated to the participant's account on a predetermined basis T. Rowe Price sends salary deferral changes to Under Armour on a predetermined basis via the selected transmission method Under Armour directs payroll vendor/payroll Department to implement the salary deferra change for the next available payroll cycle

7 UNDER ARMOUR DEFERRAL CHANGES PROCEDURE Determine and establish plan rules on the front-end systems for salary deferral types and limits and these are tested prior to live date Participant contacts T. Rowe Price (TRP) to initiate a salary deferral change Participant receives confirmation of the change Participant s salary deferral is updated to the participant s account on a pre-determined basis T. Rowe Price sends salary deferral changes to Under Armour on a predetermined basis via the selected transmission method Under Armour directs payroll vendor/payroll Department to implement the salary deferral change for the next available payroll cycle

8 Sample Plan-Level Eligibility and Enrollment Procedure Eligibility and Enrollment Guidelines determined with Under Armour Eligibility and Enrollment Guidelines established on all T. Rowe Price systems Eligibility and Enrollment Process tested Under Armour sends T. Rowe Price the necessary data to establish new hires on the system via the indicative data file (maintenance) transmission on a pre-determined basis; T. Rowe Price determines the new hire's eligibility date based on plan guidelines Enrollment communication materials are generated and mailed to newly eligible employees Eligible T. Rowe Price runs the eligibility job on a quarterly basis (1 month prior to plan entry dates) to pick up new hires that are eligible within the next 31 days Not Eligible System searches for the newly eligible on the next eligibility job Participant can contact T. Rowe Price to initiate a salary deferral percentage and an investment allocation Confirmation letter reflecting participant s salary deferral percent and investment allocation is generated and mailed to the participant s address of record T. Rowe Price transmits salary deferral percentage to Under Armour on the next salary deferral transmission or after the participant s eligibility date, whichever is later Under Armour directs payroll vendor/payroll Department to implement the salary deferral change for the next available payroll cycle

9 UNDER ARMOUR ELIGIBILITY AND ENROLLMENT PROCEDURE Determine and establish eligibility rules based on plan rules Create and test an Eligibility job based on the plan rules On a pre-determined basis, via the indicative data file (maintenance) transmission Under Armour will send T. Rowe Price (TRP) the necessary data to establish new hires on our system TRP determines the new hire s eligibility date based on the plan rules Quarterly (1 month prior to the quarterly entry dates), TRP will run the eligibility job to pick up new hires that are eligible within the next 31 days Enrollment communication materials are generated and mailed to newly eligible employees that were picked up in the eligibility job At this time participants can contact TRP to initiate a salary deferral percentage and an investment allocation Confirmation letter reflecting each participant s salary deferral percent and investment allocation is generated and mailed to the participant s address of record TRP will transmit the salary deferral percentages to Under Armour on the next salary deferral transmission or after the affected participant s eligibility date, whichever is later Under Armour directs payroll vendor/payroll Department to implement the salary deferral change for the next available payroll cycle

10 Sample Plan-Level Paperless Withdrawal Total Distribution Procedure Paperless Withdrawal Guidelines for total distribution determined with Under Armour Paperless Withdrawal Guidelines for total distribution established on all T. Rowe Price systems Paperless Withdrawal Process tested Terminated participant contacts T. Rowe Price to initiate total distribution PSC Representative discusses withdrawal options with the participant Participant elects the type of withdrawal he or she desires T. Rowe Price system will calculate the net amount for the withdrawal or distribution, and the PSC representative will read this to the participant. This amount will be the gross amount less federal and state tax withholding. If the participant is under age 59½, the PSC representative will outline the 10% early withdrawal penalty which may apply. T. rowe Price edits and posts the withdrawal transaction A withdrawal file is created based on the participant s request. The withdrawal will be processed in accordance with the plan s redemption requirements. Terms of the distribution are read to the participant for his or her review. Participant confirms that he or she wishes to continue with the distribution. Check generated and mailed to participant's address of record Funds sent to participant bank account via Automated Clearing House Funds wired to participant bank account Participant recieves funds 1099-R mailed to participant's address of record by Jan. 31 of the year following distribution As of 4/28/2011

11 UNDER ARMOUR PAPERLESS WITHDRAWAL PROCEDURE FOR TOTAL DISTRIBUTION (PLAN LEVEL AUTHORIZATION) Determine, establish and test the withdrawal guidelines on the frontend systems Terminated participant contacts TRP to initiate total distribution PSC representative reads and can provide required notices PSC representative discusses the withdrawal options with the participant Participant elects the type of withdrawal he or she desires TRP system will calculate the net amount for the withdrawal or distribution, and the PSC representative will read this to the participant. This amount will be the gross amount less federal and state tax withholding. In addition, if the participant is under age 59½, the PSC representative will outline the 10% early withdrawal penalty which may apply. Terms of the distribution are read to the participant for his or her review & participant confirms that he or she wishes to continue with the distribution A withdrawal file is created based on the participant s request. The withdrawal will be processed in accordance with the plan s redemption requirements TRP will edit and post the withdrawal transaction TRP generates and mails the check to the participant s address of record within two business days from the date of redemption The participant receives the check A Form 1099-R will be mailed to the participant s address of record by January 31 of the year following the redemption.

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