TRU Partnership Employees Savings and Profit Sharing Plan Summary Plan Description

Transcription

1 TRU Partnership Emplyees Savings and Prfit Sharing Plan Summary Plan Descriptin This dcument is a Summary Plan Descriptin (SPD), as defined by the Emplyee Retirement Incme Security Act f 1974 (ERISA), f the TRU Partnership Emplyees Savings and Prfit Sharing Plan ( TRU Plan). This SPD is a summary f the main features f the TRU Plan in effect as f August 1, 2017, and reflects any plan mdificatins thrugh this date. Details f the TRU Plan, as well as prvisins f the TRU Plan in effect prir t August 1, 2017, are cntained in the TRU Plan dcument and Trust Agreement that legally gvern the TRU Plan. If there is any discrepancy between the infrmatin cntained in this dcument and the TRU Plan dcuments, the TRU Plan dcuments will always gvern. This Plan dcument is available fr review during regular business hurs at the ffice f the Plan Administratr, lcated at One Geffrey Way, Wayne, NJ If there are legal rules that require changes that are nt yet written int the TRU Plan dcument, the TRU Plan dcument will be interpreted by the Plan Administratr as including thse legal rules. Please nte that nthing in this dcument is meant t imply a cntract r guarantee f emplyment. Participatin in the TRU Plan des nt preclude Tys R Us, Inc. (the Cmpany ) frm terminating yur emplyment at any time, whether r nt fr cause, with r withut ntice. The TRU Plan is intended t be a qualified plan under the relevant prvisins f the Internal Revenue Cde (Cde). The TRU Plan may be amended frm time t time t cmply with current and future legal requirements r t make design changes t the Plan. Althugh the Plan was established with the expectatin that it wuld cntinue indefinitely, the Plan spnsr has the right t amend, suspend, r terminate the Plan at any time. N persn, including yur supervisr, has the authrity t make any verbal statements regarding the TRU Plan that are legally binding n the cmpany r that alter the terms f the Plan. Please read this dcument carefully and share the infrmatin with yur family. If yu have any questins abut the TRU Plan, please cntact the R Retirement Benefits Line tll-free at k (4015). This Summary Plan Descriptin supersedes and replaces any previus SPDs yu have received describing the TRU Plan. If the Plan is amended s that the terms f this SPD are n lnger accurate, yu will be ntified f the changes that affect yu. Safe Harbr Ntice The TRU Plan intends t qualify fr the Internal Revenue Service (IRS) safe harbr rules. This means that the Cmpany will nt have t perfrm annual tests with respect t cntributins. Because the TRU Plan is a safe harbr plan, the Cmpany is required by the IRS t prvide specific infrmatin t yu abut the TRU Plan n an annual basis, and at r immediately befre the time yu becme eligible t participate in the TRU Plan. TRU Partnership Emplyees Savings and Prfit Sharing Plan

2 Table f Cntents TRU Plan at a Glance... 4 Eligibility and Enrllment... 5 Nte: T be eligible t receive a Prfit Sharing cntributin, yu must be actively at wrk with the Cmpany n the last day f the Plan year fr which the Prfit Sharing cntributin is made Enrlling in the TRU Plan... 5 Yur 401(k) Savings Accunt Cntributins... 5 Pre-tax Cntributins... 6 The Advantages f TRU Plan Participatin... 6 Catch-up Cntributins... 7 Changing Yur Cntributin Percentage... 7 Annual Increase Prgram... 7 Rllver Cntributins... 8 Cmpany Cntributins401(k) Savings Cmpany Safe Harbr Matching Cntributins... 8 Prfit Sharing Cntributins Designating a Beneficiary TRU Plan Investments Changing Yur Investments Aut Prtfli Rebalance Service Accunt Valuatin Default Investment f Yur TRU Plan Accunt Vesting (k) Savings Accunt Prfit Sharing Accunt If Yu Are Rehired Accessing Yur TRU Plan Savings While Emplyed Lans Hardship Withdrawals Payment f Benefits Death Benefits Disability Benefits Taxatin f Yur Accunts General Rule Mandatry Withhlding Vluntary Withhlding Special Tax Treatment if Yu Were Brn Befre January 1, Taxes n Hardship Withdrawals Summary f Tax Cnsequences Accunt Infrmatin Passwrd Accunt Statements Cnslidated Accunts Other Imprtant Infrmatin Cverage While n an Apprved Lng-Term Disability Prvided the Prfit Sharing Cmmittee apprves yur disability, yu will becme 100% vested in all TRU Plan accunts and can receive payment f yur accunts as prvided under the TRU Plan. 22 Paying Fr Cverage If Yu Are n a Paid Leave f Absence Paying Fr Cverage If Yu Are n an Unpaid Leave f Absence TRU Partnership Emplyees Savings and Prfit Sharing Plan

3 If Yur Pay is Reduced IRS Impsed Limits Limits n Cntributins Tp-Heavy Rules Nnassignment f Benefits Claim Prcedures The Initial Claim The Appeal Prcess Plan Administratin Yur ERISA Rights Receive Infrmatin abut Yur TRU Plan and Benefits Prudent Actins by TRU Plan Fiduciaries Enfrce Yur Rights Assistance with Yur Questins Glssary f Key Terms TRU Partnership Emplyees Savings and Prfit Sharing Plan

4 TRU Plan at a Glance Here are the highlights f the TRU Plan. Benefits may be subject t certain limits and restrictins. Be sure t review the rest f this Summary Plan Descriptin (SPD) fr a mre cmplete descriptin f TRU Plan benefits. TRU Plan Features Safe harbr status The TRU Plan qualifies fr the IRS safe harbr rules Team Member cntributins Pre-tax cntributins frm 1% t 50% f yur eligible cmpensatin n a pre-tax basis (subject t IRS limits) Additinal catch-up cntributins, if eligible Rllver cntributins Cmpany cntributins 401(k) Savings Cmpany Safe Harbr matching cntributins $1 fr every $1 yu cntribute, n up t the first 4% yu save (subject t IRS limits) Prfit sharing cntributins May be made at the discretin f the Cmpany s Bard f Directrs Investment pprtunities Yu can chse t invest yur cntributins and Cmpany cntributins in a wide variety f investment ptins fr pssible future grwth Vesting Yu are always 100% vested in the value f yur pre-tax, catch-up and rllver cntributins, as well as the Cmpany Safe Harbr matching cntributin Receive mney while actively emplyed thrugh: Prfit sharing cntributins generally becme vested after 3 years f participatin in the TRU Plan Lans Yu can brrw a prtin f yur vested TRU Plan accunt balance withut paying taxes; yu pay yurself back, with interest, via payrll deductins Hardship Withdrawals Withdrawals are permitted fr certain financial hardship circumstances, subject t IRS restrictins, and are subject t tax, but Cmpany Safe Harbr matching cntributins are nt eligible fr hardship withdrawals Valuable tax advantages Online accunt access Yu pay n federal (and in mst states, n state r lcal) incme taxes n cntributins and investment earnings until yu receive a TRU Plan distributin Request a variety f transactins, get up-t-date accunt infrmatin and access valuable tls and resurces at TRU Partnership Emplyees Savings and Prfit Sharing Plan

5 Eligibility and Enrllment Yu are eligible t enrll in the TRU Plan if yu are an active Team Member age 21 r lder and yu cmplete 6 mnths f cnsecutive service with the Cmpany. Yu are eligible t participate n the first f the mnth that cincides with r fllws the date yu meet the abve requirement (r as sn as administratively pssible after that date). Team Members subject t a cllective bargaining agreement, independent cntractrs, leased emplyees, and nn-u.s. citizens wh receive a benefit under a similar plan established in a freign cuntry are nt eligible t participate in the TRU Plan. Prfit Sharing Cntributin Eligibility Yu are eligible t receive a prfit sharing cntributin, if any is made by the Cmpany, if yu are a Team Member age 21 r lder and yu have cmpleted ne year f emplyment. Nte: T be eligible t receive a Prfit Sharing cntributin, yu must be actively at wrk with the Cmpany n the last day f the Plan year fr which the Prfit Sharing cntributin is made. Enrlling in the TRU Plan Enrllment materials will be mailed t yu 30 days prir t yur eligibility date, and yu can submit the enrllment materials as sn as 15 days prir t yur eligibility date (even thugh yu will nt becme a participant in the TRU Plan until yur eligibility date). If yu d nt receive the enrllment materials, yu shuld call the R Retirement Benefits Line at k (4015). T enrll: Lg n t r Call the R Retirement Benefits Line at k (4015) (yur PIN is required). Yur enrllment becmes effective as sn as administratively practicable, prvided yu meet the eligibility requirements. Once yu are enrlled, be sure t designate a "TRU" Plan beneficiary, as described in mre detail in this SPD. The first time yu lg n r call the R Retirement Benefits Line, yu will be asked t enter yur SSN and t set up a passwrd; if yu already have an existing Fidelity accunt, yu d nt need t create a new username and passwrd. Yu will be required t prvide yur passwrd each time yu access infrmatin abut yur TRU Plan benefit yur passwrd will be the same fr phne and Internet access. It is strngly advised nt t use yur SSN as yur username. Chse a unique username and a strng passwrd. Yur 401(k) Savings Accunt Cntributins Yur 401(k) Savings Accunt is yur accunt in the TRU Plan that cnsists f yur pre-tax cntributins, catch-up cntributins (if applicable), rllver cntributins, Cmpany matching cntributins (made prir t March 1, 2006), and Cmpany Safe Harbr matching cntributins (made n r after March 1, 2006) as discussed in mre detail belw. TRU Partnership Emplyees Savings and Prfit Sharing Plan

6 Pre-tax Cntributins Yu can cntribute frm 1% t 50% 1 f yur eligible cmpensatin (in 1% increments) t the 401(k) Savings Accunt, up t the annual IRS dllar limit described belw. Yur cntributins are made n a pre-tax basis. This means they are deducted frm yur pay befre federal incme taxes and in mst states, befre state and lcal incme taxes are withheld, but after deductins are made fr Scial Security. Yur cntributins and any earnings are nt taxed as lng as they remain in the TRU Plan. The annual IRS dllar limit fr 2017 was $18,000, meaning that Federal law limits the amunt yu may cntribute t the 401(k) Savings Accunt in 2017 t $18,000. In additin, the maximum amunt f yur cmpensatin that can be cnsidered t determine yur cntributin percentage fr 2017 was $270,000. These limits will be adjusted in future years by the Secretary f the Treasury t accunt fr inflatin. The Advantages f TRU Plan Participatin Yu gain in several ways when yu save thrugh the TRU Plan. Yu have the advantage f: pre-tax cntributins which reduce yur taxable incme tax deferred investment grwth which adds substantially t yur savings pwer plus a significant bst t yur savings thrugh the Cmpany Safe Harbr matching cntributin. This example shws the tax advantage f making pre-tax cntributins t the 401(k) Savings accunt versus depsiting the same amunt int a regular savings accunt n an after-tax basis. If yu cntribute 4% f yur eligible cmpensatin t: The 401(k) Savings Accunt (pre-tax) A Persnal Savings Accunt (after-tax) Annual Eligible Cmpensatin $35,000 $35,000 Yur Savings (4%) $1,400 $1,400 Cmpany Safe Harbr Matching Cntributin $1,400 $0 Taxable Cmpensatin $33,600 $35,000 Estimated Taxes* $8,400 $8,750 Take Hme Cmpensatin $25,200 $24,850 Ttal Savings $2,800 $1,400 YOUR TAX SAVINGS $350 N/A *Assumes a federal incme tax rate f 25%. Althugh pre-tax cntributins reduce yur taxes, they have n effect n yur ther pay-related benefits, such as life and disability insurance. 1 Team Members wh wrk and reside in Puert Ric can cntribute n a pre-tax basis, up t the maximum allwed under Puert Ric law. TRU Partnership Emplyees Savings and Prfit Sharing Plan

7 Catch-up Cntributins In the calendar year yu reach age 50 and each year thereafter, yu can elect t make additinal catchup cntributins 2 t the 401(k) Savings Accunt if: yu wuld therwise be prevented frm making additinal pre-tax cntributins because f the IRS limit n pre-tax cntributins (described abve) r yur pre-tax cntributin rate is the maximum allwed by the TRU Plan (50% f eligible cmpensatin 3 ). Yu may elect t cntribute up t 20% f yur eligible cmpensatin in additin t yur pre-tax cntributins as catch-up cntributins up t the IRS annual maximum dllar limit. In 2017, the IRS annual maximum dllar limit fr catch-up cntributins was $6,000, and the dllar limit is indexed fr inflatin and will be adjusted peridically. Changing Yur Cntributin Percentage Yu can make the fllwing changes t yur 401(k) Savings Accunt cntributin electins at any time. Change yur cntributin percentage including stpping r restarting yur cntributins by lgging n t r by calling the R Retirement Benefits Line. The change will be effective as sn as administratively practicable. Redirect the investment f yur future 401(k) Savings accunt cntributins, r exchange all r sme f yur TRU Plan balance in a dllar amunt, share amunt r percentage int any f the ther available investment ptins. The minimum amunt yu may exchange is the lesser f $250 r yur entire balance in an existing fund. T initiate an investment change, lg n t r call the R Retirement Benefits Line. If yur transactin is cnfirmed n any business day (ther than a New Yrk Stck Exchange hliday) befre 4 p.m. ET, yur transactin will generally be prcessed that day. Changes made after 4 p.m. ET, n a weekend r a New Yrk Stck Exchange hliday will typically be prcessed n the next business day. Annual Increase Prgram Yu can chse t participate in the Annual Increase Prgram, which will autmatically increase yur pretax cntributins t yur 401(k) Savings Accunt each year (n a date yu select) in any increment yu select that is a whle percentage f yur eligible cmpensatin. This prgram can help yu attain yur retirement gals. Yu can elect r cancel yur participatin in the prgram at any time, nline at r by calling the R Retirement Benefits Line. 2 Team Members wh wrk and reside in Puert Ric can make additinal catch-up cntributins up t the maximum allwed under Puert Ric law. 3 Team Members wh wrk and reside in Puert Ric can cntribute n a pre-tax basis, up t the maximum allwed under Puert Ric law. TRU Partnership Emplyees Savings and Prfit Sharing Plan

8 Rllver Cntributins Subject t the apprval f the Prfit Sharing Cmmittee, if yu are therwise eligible t cntribute t the TRU Plan, yu can rll ver funds frm anther qualified plan r Individual Retirement Accunt (IRA) int the TRU Plan and cntinue tax deferral n the mney that yu rll ver. Generally, qualified plans include anther emplyer s savings plan. The TRU Plan des nt accept rllver cntributins that are Rth cntributins under anther emplyer s 401(k) r 403(b) plan but des accept after-tax cntributins frm anther qualified plan as a rllver cntributin. Rllver cntributins becme a part f yur 401(k) Savings Accunt, but rllver cntributins are nt eligible t be matched by the Cmpany. Yu can make a rllver cntributin even if yu are nt making regular pre-tax cntributins t the TRU Plan. T request a rllver frm, r if yu need help cmpleting the rllver prcess, call the R Retirement Benefits Line. Cmpany Cntributins401(k) Savings Cmpany Safe Harbr Matching Cntributins T encurage yu t cntribute t the TRU Plan, the Cmpany will add $1 fr every $1 yu cntribute up t the first 4% f yur eligible cmpensatin.. Fr 2017, the maximum annual cmpensatin that Federal law allws t be cnsidered is $270,000, and this limit may be adjusted annually by the Secretary f the Treasury based n changes in the cst f living. The Cmpany Safe Harbr matching cntributin is credited t yur 401(k) Savings Accunt at the same time as yur crrespnding pre-tax cntributins. 4 True-up Match At the end f each Plan year, the Cmpany will cnduct a Cmpany matching true-up prcess. This feature is designed t prvide yu with the maximum Cmpany match pssible based n yur ttal cntributins and eligible cmpensatin fr the Plan year. If the Cmpany Safe Harbr matching cntributin amunt received by yu n a payrll-by-payrll basis during the year is less than the maximum amunt yu wuld receive based n yur ttal cntributins t the TRU Plan during the year and yur ttal eligible cmpensatin during the year (r, if less, fr the prtin f the year yu were eligible t participate in the TRU Plan), the Cmpany will make additinal matching cntributins n yur behalf. If yu are eligible fr a true-up matching cntributin, it will be added t yur 401(k) Savings accunt during the first quarter f the fllwing Plan year, r as sn as administratively practicable (fr example, a true-up calculated fr 2016 pre-tax cntributins and eligible cmpensatin wuld typically be added t yur accunt during the first quarter f 2017). Fr example, let s assume a Team Member had the fllwing: Eligible cmpensatin $30,000 fr the Plan year ($15,000 fr six mnths) Pre-tax 401(k) cntributins 2% f eligible cmpensatin fr the first six mnths; 10% fr the next six mnths 4 The frmula fr determining Cmpany Safe Harbr matching cntributins may change peridically; yu will be ntified if a change is made. TRU Partnership Emplyees Savings and Prfit Sharing Plan

9 Team Member cntributins and the Cmpany Safe Harbr matching cntributin fr the Plan year wuld be: Team Member Pre-tax 401(k) Cntributins Cmpany Match ($1 fr each $1 n the first 4%) 2% fr the first six mnths* (2% x $15,000) $ 300 2% fr the first six mnths* (2% x $15,000) $300 10% fr the secnd six mnths* (10% x $15,000) $1,500 4% fr the secnd six mnths* (4% x $15,000) $600 Ttal Team Member cntributin $1,800 Ttal Cmpany match $900 * Based n $15,000 f eligible cmpensatin ver a six mnth perid. T cnduct the true-up match prcess at the end f the Plan year, the Cmpany will: 1. Recalculate the Team Member s actual cntributin percent fr the Plan year (determined by dividing the amunt f pre-tax cntributins by the ttal amunt f eligible cmpensatin paid t the Team Member during the year) $1,800 / $30,000 = 6% 2. Recalculate the Cmpany Safe Harbr matching cntributin based n the actual cntributin percent. In this case, since the Team Member s actual pre-tax cntributins ttaled 6% f his r her eligible cmpensatin that was paid t the Team Member thrughut the Plan year, the Team Member is eligible t receive the full Cmpany Safe Harbr matching cntributin f 4% f his r her eligible cmpensatin. $30,000 x 4% = $1, Add the additinal Cmpany Safe Harbr matching cntributin t the Cmpany match prtin f the Team Member s 401(k) Savings accunt $1,200 - $900 = $300 ($300 added t Team Member s accunt) TRU Partnership Emplyees Savings and Prfit Sharing Plan

10 Prfit Sharing Cntributins At the discretin f the Cmpany s Bard f Directrs, the Cmpany may make an additinal cntributin t the TRU Plan, ver and abve the Cmpany match, based n the Cmpany s perating/business results fr that year. The Cmpany will determine the amunt f this prfit sharing cntributin, if any, by Octber 15 th fllwing the end f each TRU Plan year. If a prfit sharing cntributin is made, an allcatin f the prfit sharing cntributin will be depsited int the Prfit Sharing accunt n yur behalf n later than the due date fr the Cmpany s tax return fr the year. Yu will be eligible fr an allcatin f the prfit sharing cntributin if yu meet the age and service requirements fr making pre-tax cntributins described in this SPD and yu are emplyed by the Cmpany n the last day f the year in which the prfit sharing cntributin relates. Yu d nt have t cntribute t the 401(k) Savings accunt t be eligible t receive an allcatin f the prfit sharing cntributin. The amunt f the prfit sharing cntributin fr a year will be determined by the Cmpany in its sle discretin. In the event the Cmpany makes a prfit sharing cntributin fr a year, the prtin f the prfit sharing cntributin fr that year that will be allcated t yur Prfit Sharing accunt is based n the percentage yur eligible cmpensatin fr the year bears t the ttal eligible cmpensatin f all the eligible participants in the TRU Plan fr the year. Yur eligible cmpensatin fr purpses f calculating the amunt f yur prfit sharing cntributin is determined in the same manner as yur eligible cmpensatin fr purpses f pre-tax cntributins and Cmpany Safe Harbr matching cntributins. Designating a Beneficiary Yu may designate, r name, a beneficiary at any time but at a minimum yu shuld designate a beneficiary fr yur TRU Plan accunt when the first f these events ccurs: yu enrll t make pre-tax cntributins t the 401(k) Savings accunt yu make a rllver cntributin t the 401(k) Savings accunt r the Cmpany makes a prfit sharing cntributin n yur behalf. Yu can name anyne yu wish as beneficiary, and can change yur beneficiary designatin at any time. Hwever, if yu are married yu must have yur spuse s written and ntarized cnsent t name a beneficiary ther than yur spuse as the nly primary beneficiary. Yu can designate yur beneficiary nline at Under the Abut Yu sectin f the Yur Prfile tab, click the Beneficiaries link and fllw the instructins. Yu can als cntact the R Retirement Benefits Line t request a Beneficiary Designatin Frm. If yu designate yur beneficiary nline, a Spusal Cnsent Frm will be generated and mailed t yu if required (if yu cmplete a paper Beneficiary Designatin Frm, there is a spusal cnsent sectin n the frm). TRU Plan Investments Yu decide hw t invest all f the mney that is depsited int yur TRU Plan accunts yur pre-tax cntributins, catch-up cntributins, Cmpany Safe Harbr matching cntributins, prfit sharing cntributins and rllver cntributins, if applicable. Yu can chse frm a variety f investment ptins, each representing different investment bjectives and levels f risk. Therefre, yu shuld carefully cnsider yur ptins befre making yur investment decisins. TRU Partnership Emplyees Savings and Prfit Sharing Plan

11 It is yur respnsibility t select and mnitr yur investments t make sure they cntinue t reflect yur financial situatin, risk tlerance and time hrizn. Mst investment prfessinals suggest that yu reevaluate yur investment strategy at least annually r when yur situatin changes. Yu may als want t cnsider cnsulting a prfessinal investment advisr regarding yur specific situatin. Investment Optins T make yur investment selectin easier, we have designed a tw-tier structure t help yu chse an investment apprach and ptins that may best meet yur needs. Yu decide, based n yur investment gals and risk tlerance, which style f investing r what cmbinatin f the tw styles makes the mst sense fr yu. Tier One Fidelity Institutinal Asset Management (FIAM) Index Target Date Funds These funds ffer a single-fund apprach t investing in the TRU Plan. They are designed t prvide an age-apprpriate investment mix, based n yur current age and a retirement age f 65. Prfessinal fund managers adjust the fund s mix f stcks, bnds and shrt-term investments t becme mre cnservative as yu near retirement age. T select the apprpriate FIAM Index Target Date Fund fr yu, chse the fund name with the year that mst clsely matches the year yu plan t retire. Tier Tw Cre Investment Optins Build and mnitr yur wn investment prtfli. The TRU Plan ffers a variety f investment ptins frm which yu can chse t create yur wn investment prtfli. When determining yur investment strategy, cnsider hw much time yu have t save and yur cmfrt level with risk. Yu can mix and match any f the available funds t suit yur persnal investment style. Yu can invest in any cmbinatin f investment ptins in 1% increments. Yu can make a separate investment electin fr each f these three categries f cntributins: 401(k) pre-tax, catch-up and Cmpany Safe Harbr matching cntributins Rllver cntributins Prfit sharing cntributins. Or, yu can chse t apply the same investment electin t all three categries (if applicable). A descriptin f each f the investment ptins is available nline at r by calling the R Retirement Benefits Line. Nte: Yu may be charged investment management fees, which vary based upn the investment funds yu select. These fees are typically allcated as a percentage f the assets invested in the particular fund, and are deducted frm the investment return befre it is allcated t yur TRU Plan accunt. The funds may als charge participants a shrt-term trading fee fr investing in certain investment ptins r therwise restrict trading activity which the fund managers deem as harmful t ther investrs in the fund. Yu can find mre infrmatin n these fees (and any trading restrictins) in the prspectus fr each investment fund, which yu can get nline at r by calling the R Retirement Benefits Line. The TRU Plan is intended t be a plan described in sectin 404(c) f the Emplyee Retirement Incme Security Act f 1974 (ERISA) and the regulatins thereunder. This simply means that yu are respnsible fr yur wn investment decisin, and this gives yu the pprtunity t cntrl yur TRU Plan investments. The TRU Plan s fiduciaries, including the Cmpany, may be relieved f liability fr any lsses that are the direct and necessary result f yur investment instructins r lack f cmplete instructins. Yu are legally respnsible fr yur investment chices and the cnsequences f yur decisins, s it is very imprtant fr yu t take time t review the infrmatin prvided t yu and any TRU Partnership Emplyees Savings and Prfit Sharing Plan

12 ther infrmatin yu think is necessary t make infrmed investment decisins under the Plan because the Plan fiduciaries are nt respnsible fr yur investment decisins. Neither the Cmpany, the Trustee, the Plan Administratr, nr any ther TRU Plan fiduciary guarantees any f the investment funds in any manner against lss in value. Yu are slely respnsible fr the selectin f investment funds fr yur TRU Plan accunt. The Cmpany, as the TRU Plan spnsr, will make the fllwing dcuments available t yu, withut charge, by calling the R Retirement Benefits Line: A descriptin f the annual perating expenses f each investment ptin that wuld reduce the rate f yur return under a particular investment ptin, Cpies f prspectuses, financial statements, and any ther materials relating t the investment ptins under the TRU Plan, t the extent such infrmatin is prvided t the TRU Plan, Details f the assets cmprising the prtfli f each investment ptin t the extent such assets wuld cnstitute plan assets under ERISA, and Infrmatin cncerning the value f shares r units in the investment ptins. If yu have additinal questins r cncerns regarding the investment ptins under the TRU Plan and the ptins best suited t yur needs, yu shuld cnsult a prfessinal investment adviser r financial planner. TRU Partnership Emplyees Savings and Prfit Sharing Plan

13 Changing Yur Investments Yu can redirect the investment f yur future 401(k) Savings and Prfit Sharing accunt cntributins and/r exchange investment ptins f yur current TRU Plan accunt balances at any time. The minimum amunt yu may exchange is the lesser f $250 r yur entire balance in an existing fund. Yu can request exchanges in share amunts, percentages r dllar values. Yu may als elect t autmatically rebalance yur current accunt balance either as a ne-time electin, r annually via the Aut Prtfli Rebalance Service (see belw). T make an investment change, lg n t r call the R Retirement Benefits Line. If yur transactin is cnfirmed n any business day (ther than a New Yrk Stck Exchange hliday) befre 4 p.m. ET, yur transactin will generally be prcessed that day. Changes made after 4 p.m. ET, n a weekend r a New Yrk Stck Exchange hliday will typically be prcessed n the next business day. Administrative fees may apply t sme transactins refer t the investment ptin prspectus fr mre infrmatin. Nte: While investment change requests are typically prcessed as utlined abve, the TRU Plan des nt guarantee prcessing timeframes, and administrative delays are pssible. Yur cntributins t the Plan will be depsited and invested accrding t yur electins as sn as administratively practicable, hwever there may be a brief administrative delay befre yur TRU Plan accunt balance and future cntributins are invested. As the TRU Plan is designed t be a lng-term investment, we recmmend against attempting t time the market r make frequent transfers. If yu make investment changes r transfers because yu believe there will be shrt term changes in the markets, yur strategy may be frustrated by any administrative delay. Yu will nt be reimbursed fr any investment lsses r pprtunity csts resulting frm reasnable administrative delays in implementing yur investment electins. Aut Prtfli Rebalance Service The Aut Prtfli Rebalance Service can help yu keep a cnsistent investment strategy. Yu identify an initial investment cmbinatin fr yur existing TRU Plan accunt balances. On an annual basis (frm the date f yur electin), yur investments are autmatically rebalanced t bring yur TRU Plan accunts in line with yur target investment allcatin. The service cntinues t maintain that same mix fr yu annually, until yu change r cancel yur electin. T elect the Aut Prtfli Rebalance Service, lg n t r call the R Retirement Benefits Line. Accunt Valuatin Yur 401(k) Savings and Prfit Sharing accunt balances are valued each business day, based n the clsing market price f yur investment fund(s). Default Investment f Yur TRU Plan Accunt If yu d nt select an investment ptin fr yur pre-tax cntributins, catch-up cntributins, Cmpany matching cntributins (made prir t March 1, 2006), Cmpany Safe Harbr matching cntributins, rllver cntributins r prfit sharing cntributins r if yur investment electin des nt add up t 100% yur cntributins will be invested in the TRU Plan default investment ptin. The default investment ptin is the FIAM Index Target Date Fund targeted t the apprpriate retirement perid, based n yur current age and a retirement age f 65. If yu d nt wish t be invested in the FIAM Index Target Date Fund, yu may change investment electins at any time. TRU Partnership Emplyees Savings and Prfit Sharing Plan

14 Yu will receive infrmatin abut the FIAM Index Target Date Funds as well as all the investments in the TRU Plan when yu first becme eligible t participate in the TRU Plan, and befre each TRU Plan year. Yu shuld read this infrmatin carefully. Fr mre infrmatin abut the FIAM Index Target Date Funds, lg n t r call the R Retirement Benefits Line. The Cmpany, the Plan Administratr, the Trustee, and the ther fiduciaries f the TRU Plan will nt be held liable fr any lsses incurred by yu if yur accunt is invested by default in the age apprpriate FIAM Index Target Date Fund. Vesting 401(k) Savings Accunt Yu are always 100% vested in the value f yur pre-tax cntributins, catch-up cntributins, rllver cntributins, and the Cmpany matching cntributins at all times. Different vesting rules may apply fr Team Members wh left the Cmpany befre March 1, Prfit Sharing Accunt Fr plan years beginning n r after March 1, 2007, any prfit sharing cntributins the Cmpany may make becme 100% vested after yu cmplete three years f credited service, if yu becme disabled while an active Team Member, in the event f yur death while an active Team Member, r when yu reach yur nrmal retirement date (which is the later f the payrll date fllwing yur 65 th birthday r yur fifth anniversary f the date yu started participating in the TRU Plan). Different vesting schedules applied t prfit sharing cntributins made prir t March 1, 2007, s refer t the TRU Plan dcument fr the vesting schedules that were in effect prir t March 1, Yu will earn a credited year f service fr each calendar year in which yu cmplete at least 1,000 hurs f service. Fr this purpse, yu will be credited with an hur f service fr each hur fr which yu are paid r entitled t be paid fr perids during which n duties are perfrmed due t vacatin, hlidays, and sickness. N credit will be given fr maternity leave r paternity leave unless yu furnish the infrmatin requested by the Prfit Sharing Cmmittee t establish yur absence frm wrk was because f a valid maternity leave r paternity leave under the TRU Plan. If yu leave befre yu are vested in yur Cmpany prfit sharing cntributins and yu receive a distributin f the entire vested balance in yur TRU Plan accunt, yu will frfeit any nn-vested prfit sharing cntributins. Frfeitures are used t reduce future Cmpany cntributins r t pay TRU Plan expenses, as permitted by law. If Yu Are Rehired TRU Plan Participatin If yu leave the Cmpany and are then rehired, yu can participate in the TRU Plan: upn rehire, if yu met the participatin requirements befre yu left nce yu meet the TRU Plan participatin requirements, if yu had nt met them befre yu left. Vesting Service All yur perids f service with the Cmpany will be cnsidered fr purpses fr calculating yur vested interest in yur TRU Plan accunt attributable t Cmpany Prfit Sharing cntributins. TRU Partnership Emplyees Savings and Prfit Sharing Plan

15 Accessing Yur TRU Plan Savings While Emplyed The TRU Plan is designed t encurage lng-term savings. Hwever, situatins may arise when yu need t access the mney in yur TRU Plan accunt. The TRU Plan allws yu t brrw r withdraw funds, subject t certain limitatins, as described belw. Keep in mind that if yu take a lan r hardship withdrawal, the value f yur TRU Plan accunts may be mre r less than the riginal amunt invested. Lans Yu can request a lan frm yur vested TRU Plan accunts fr any reasn. Tw types f lans are available: general purpse lans yu can use the mney fr any purpse and principal residence lans yu can use the mney nly fr purchase r cnstructin f yur principal residence. Hw Much Yu Can Brrw The minimum yu can brrw is $500. The mst yu can brrw is the lesser f: $50,000, reduced by yur highest utstanding lan balance in the last 12 mnths (even if the lan has been repaid) r 50% f yur vested accunt balance. Lan Prvisins The fllwing prvisins apply when yu take a lan frm the TRU Plan: The interest rate n yur lan will be based n the prime rate psted by Fidelity n the day the lan is prcessed. The interest rate will remain in effect fr the duratin f yur lan. Yu chse the length f the repayment perid fr yur lan that is n less than six mnths and up t: five years fr a general purpse lan r fifteen years fr a principal residence lan. Yu can have nly ne lan utstanding at a time. Yu must fully repay any prir lan (including any lan that has been deemed distributed as a result f yur default) befre yu can request anther lan. There is a 15-day waiting perid between paying ff ne lan and initiating a new lan. Yu cannt take a lan if yu are terminated, retired, disabled, n an unpaid leave f absence, a participant s beneficiary, an alternate payee, r yu are in an ineligible emplyment class. Applying fr a Lan T apply fr a: general purpse lan g nline t r call the R Retirement Benefits Line principal residence lan g nline t r call the R Retirement Benefits Line and speak with a Custmer Service Assciate. The Custmer Service Assciate will send yu an applicatin, which yu must cmplete and return t the address indicated n the frm, alng with a cpy f yur sales cntract, signed and dated by bth yu and the seller. TRU Partnership Emplyees Savings and Prfit Sharing Plan

16 Lans will be prcessed as sn as administratively practicable. Yu pay a $35 lan prcessing fee, which will be deducted frm yur TRU Plan accunt balance. There is als a quarterly maintenance fee f $3.75, which will be deducted frm yur TRU Plan accunt balance until yur lan is repaid in full. After yu apply fr a: This is what happens next: General purpse lan If yu elected t receive the prceeds f yur lan by check, yu will receive the check via U.S. Mail within 7 10 business days. If yu elected t receive the prceeds f yur lan via Electrnic Funds Transfer, the funds shuld be in yur bank accunt within 3 business days* If yu prcess yur lan ver the telephne with a representative, yu agree t the terms f the lan n a recrded line, including acceptance f the lan repayment thrugh payrll deductins If yu prcess yur lan n NetBenefits, yu must agree t the terms f the lan nline, including acceptance f the lan repayment thrugh payrll deductin. Principal residence lan Yu will receive lan dcuments at yur hme address, including a Truth-in-Lending Disclsure Statement Yu must sign and return these dcuments, alng with yur supprting dcumentatin t the address indicated n the frm. Once yur cmpleted dcuments have been received and apprved, and If yu elected t receive the prceeds f yur lan by check, yu will receive the check via U.S. Mail within 7 10 business days. If yu elected t receive the prceeds f yur lan via Electrnic Funds Transfer, the funds shuld be in yur bank accunt within 3 business days* *Nte: Electrnic Funds Transfer must be established n yur accunt prir t requesting a distributin. Repaying the Lan Yu can repay a lan in full at any time. Partial payments are permitted, but any partial payment will nt reduce yur nging lan payment. Otherwise, lan repayments are made thrugh payrll deductins in equal amunts each pay perid. Lan repayments, including interest, are repaid t yur TRU Plan accunts. Amunts paid back t yur TRU Plan accunts are invested based n yur current investment electins. Upn terminatin f emplyment fr any reasn, including death, the utstanding lan balance will becme immediately due and payable. Repaying the Lan while n a Leave f Absence If yu g n a leave f absence, yur lan repayments will cntinue as lng as yu are receiving a regular paycheck. If yur pay stps (r is reduced t a pint where lan repayments cannt be taken), yur lan repayments can be suspended fr up t 12 mnths. When yu return frm leave, yu are respnsible fr paying any interest accrued while yu were nt making lan payments. Cntact the R Retirement Benefits Line t make these arrangements. Nte: If yu g n a military leave f absence, yur lan repayments will be suspended fr the length f yur leave. When yu return t wrk fllwing the leave, yu will have t pay the interest accrued during yur leave, but at a maximum interest rate f 6%. TRU Partnership Emplyees Savings and Prfit Sharing Plan

17 If yu fail t make lan repayments, r yu nly pay a prtin f yur lan payment, yur lan may be cnsidered in default as shwn belw. If yu: Are an active Team Member and yu fail t make regular lan repayments Leave the Cmpany fr any reasn (including death) and have an utstanding TRU Plan lan balance Leave the Cmpany and take a full distributin frm the TRU Plan with an utstanding lan balance Yur lan will be cnsidered in default: On the last day f the calendar quarter fllwing the calendar quarter in which yu first missed a payment If yu d nt repay the full amunt f the lan within 45 days after yur terminatin (including death) If yu d nt repay the utstanding lan balance befre yu take a full distributin, the lan balance will be cnsidered part f the distributin and subject t taxes The defaulted amunt the unpaid principal plus interest is reprted as a distributin. In that case, yu will receive a Frm 1099 fr that amunt at the end f the calendar year. Yu will be respnsible fr any taxes due n the utstanding lan balance i.e., rdinary incme tax plus, if yu are under age 59 1/2, an additinal 10% early withdrawal penalty tax. Remember, it is YOUR respnsibility t ensure yur lan repayments are made timely, either via payrll deductin r directly t Fidelity. If yu are nt n a Leave f Absence and d nt earn enugh t make yur full lan payment, it is yur respnsibility t make up the payment directly t Fidelity Hardship Withdrawals Generally, yu may nt make a withdrawal frm the TRU Plan while yu are wrking fr the Cmpany. Hwever, there are certain circumstances called financial hardships when hardship withdrawals are permitted. 5 T qualify fr a hardship withdrawal, yu must prvide prf in writing that yu have an immediate financial need that cannt be met frm ther financial resurces. The financial need must be t pay ne f the fllwing: unreimbursed medical expenses incurred by yu, yur spuse, yur children r any ther eligible dependent csts fr the purchase f yur primary residence tuitin and related educatinal fees fr pst-secndary educatin fr yu, yur spuse, yur children, r any ther eligible dependent expenses t prevent evictin frm yur primary residence r t prevent freclsure n the mrtgage n yur primary residence expenses fr the repair f damage t yur primary residence that wuld qualify as a deductible casualty expense, such as lss caused by fire, strm, shipwreck r theft funeral and/r burial expenses fr yur parent, spuse, child r any ther eligible dependent. 5 Team Members wh wrk and reside in Puert Ric are prhibited frm taking hardship withdrawals. TRU Partnership Emplyees Savings and Prfit Sharing Plan

18 Yu must take any available lan frm the TRU Plan befre yu request a hardship withdrawal. Yu cannt withdraw mre mney than necessary t meet yur immediate need. The minimum amunt yu can withdraw is $500. After yu take a hardship withdrawal, yur pre-tax cntributins t the 401(k) Savings accunt will be suspended fr six mnths. T initiate a hardship withdrawal, g nline t r call the R Retirement Benefits Line and speak with a Custmer Service Assciate. Funds Available fr Withdrawal A prtin f yur vested TRU Plan accunt balance is available fr a hardship withdrawal. Mney will be withdrawn in the fllwing rder: Cmpany matching funds and earnings cntributed befre March 1, 2006 and at least 24 mnths befre the hardship withdrawal is paid Prfit sharing cntributins and earnings Rllver cntributins and any earnings n them Yur pre-tax cntributins t the 401(k) Savings accunt, excluding any earnings n them Yur catch-up cntributins t the 401(k) savings accunt, excluding any earnings n them. Nte: Cmpany Safe Harbr matching cntributins, and any earnings n them, are nt eligible fr hardship withdrawal. Payment f Benefits Yu are entitled t receive a distributin f the full vested value f yur TRU Plan accunt if yu leave the Cmpany fr any reasn. If yur vested accunt value is less than $1,000, yur accunt will be autmatically distributed within 90 days f yur terminatin date r as sn as administratively practicable. If yur vested accunt value is equal t r mre than $1,000, yu can chse t leave it in the TRU Plan, yu may rll ver yur TRU Plan accunt balance t an IRA r anther emplyer s qualified retirement plan (if permitted), r yu may take a distributin. Hwever, nce yu stp wrking, the IRS requires yu t begin taking distributins by April 1 f the year fllwing the year yu reach age 70½ (r, if later, April 1 f the year fllwing the year yu terminate emplyment), which is called yur required beginning date. Otherwise, yu will have t pay severe tax penalties that can deplete yur retirement assets. Failure t take a required distributin can result in a tax penalty f 50% f the required distributin amunt. The TRU Plan requires that yur entire TRU Plan accunt balance be paid t yu in a single lump sum as sn as administratively practical fllwing yur required beginning date. Different rules apply if yu die befre r after yur required beginning date. T initiate yur distributin and t learn mre abut required distributins, g nline t r call the R Retirement Benefits Line and speak with a Custmer Service Assciate. Death Benefits If yu die while yu are actively emplyed by the Cmpany, yur TRU Plan accunts will becme 100% vested and the full value f yur TRU Plan accunt will be paid t yur beneficiary. Keep in mind that if yu are married at the time f yur death, benefits will be paid t yur spuse unless the Cmpany has yur spuse s written and ntarized cnsent that yu may name anther beneficiary. If yu are nt married and yu have nt designated a beneficiary, benefits will be paid t yur estate. TRU Partnership Emplyees Savings and Prfit Sharing Plan

19 Disability Benefits If yu becme disabled while emplyed by the Cmpany, yu will becme 100% vested in yur TRU Plan accunts, and yu may elect, at any time, t receive the full value f yur TRU Plan accunt. If yu becme disabled as a result f military service exclusively and yu are eligible t receive a gvernment pensin fr such disability, yu will nt be cnsidered disabled fr purpses f the TRU Plan. Taxatin f Yur Accunts The fllwing is a brief summary f the current federal incme tax laws as they apply t plans like the TRU Plan. Tax laws are cmplex and change ften. Befre taking a lan, hardship withdrawal r distributin, yu shuld check with yur persnal tax advisr. General Rule When yu receive a distributin ther than a lan frm the TRU Plan, the full amunt (except any aftertax rllver amunt) yu receive will be subject t rdinary incme tax rates in the year received, unless the distributin is rlled ver int an IRA r an eligible emplyer plan. In additin, the payut will be subject t an additinal 10% penalty tax, unless the payut is: rlled ver t an Individual Retirement Accunt (IRA) r anther cmpany s qualified retirement/savings plan within 60 days f the payut made after yur terminatin f emplyment, prvided yu were age 55 r lder at terminatin; r if yu are at least age 59½ when yu receive a distributin used t pay therwise deductible medical expenses (up t the amunt allwable as a deductin under Sectin 213 f the Internal Revenue Cde) due t yur disability r death r made t an alternate payee in accrdance with a Qualified Dmestic Relatins Order (QRDO). Mandatry Withhlding In general, when a TRU Plan distributin is paid directly t yu, the Trustee must withhld: 20% f the distributin fr federal taxes and A prtin f the distributin fr state taxes, if yu reside in a state that requires state tax withhlding. The Trustee sends the 20% federal withhlding t the IRS and if applicable, the state withhlding amunt t yur state f residence as a credit against yur taxes. Yu can avid the withhlding if yu rll ver the distributin directly int anther cmpany s plan r an IRA. Yu shuld be aware that yur actual tax liability fr the distributin may be mre r less than the amunts withheld, and yu are respnsible fr paying yur actual tax liability even if it is mre than the amunts withheld. Vluntary Withhlding A distributin paid t a beneficiary ther than yur spuse in the event f yur death is nt subject t mandatry withhlding. Hwever, the Trustee will withhld federal taxes frm the distributin unless yur beneficiary elects therwise. TRU Partnership Emplyees Savings and Prfit Sharing Plan

20 Special Tax Treatment if Yu Were Brn Befre January 1, 1936 Yu may qualify fr special tax treatment if yu were brn befre January 1, 1936 and yu receive a lump sum distributin frm the TRU Plan. See IRS Frm 4972 fr additinal infrmatin. Taxes n Hardship Withdrawals If yu receive a hardship withdrawal, the full amunt is subject t incme tax and mandatry withhlding. Yur withdrawal may als be subject t a 10% early withdrawal penalty if yu are under age 59 1/2. Summary f Tax Cnsequences This discussin f the significant U.S. incme tax cnsequences f the TRU Plan gives nly a brief verview f cmplex tax laws, and is based upn applicable law as in effect n the date f this SPD. A change in such law culd render all r a prtin f this tax discussin bslete. Therefre, yu shuld cnsult with a qualified tax adviser t btain current infrmatin, as well as advice that is tailred t yur particular circumstances prir t making any electin and filing returns fr any tax year in which any withdrawal r distributin is made. Tax rules are cmplex and depend n yur persnal situatin. This SPD is nt intended t prvide yu with cmplete infrmatin abut yur taxes. A cpy f the IRS Special Tax Ntice Regarding Plan Payments, which prvides mre specific infrmatin n the taxatin f payments frm qualified retirement plans, is available free upn request by calling the R Retirement Benefits Line. TRU Partnership Emplyees Savings and Prfit Sharing Plan

21 Accunt Infrmatin Accessing and managing yur TRU Plan accunts is easier than ever. Whether yu prefer t access yur accunt nline ( thrugh yur wireless device, thrugh the autmated Vice Respnse System (VRS), r thrugh a Custmer Service Assciate, yu can easily get the infrmatin yu need whenever yu want it. Accessibility Online By Phne By Wireless k (4015) Wireless NetBenefits Virtually 24 hurs, 7 days a week Vice Respnse System Virtually 24 hurs, 7 days a week Custmer Service Assciate 8:30 a.m. t midnight Eastern Time Accunt Infrmatin Current accunt balances and histry Investment infrmatin (qutes, histrical perfrmance) TRU Plan literature and fund prspectuses Investment and Cntributin Changes Change hw cntributins are invested Change payrll cntributin amunt Exchange between investment ptins Make changes t the Annual Increase Prgram Lan Infrmatin Mdel a new lan Request a lan Inquire abut existing lans Withdrawal Infrmatin Amunt available t withdraw Request a hardship withdrawal Administrative Changes Set up r change yur PIN Designate beneficiaries Beneficiary infrmatin Rllver Infrmatin Request a rllver frm Request a distributin * Tls & Resurces myplan myplan Retirement Quick Check Retirement Incme Planner Prtfli Review Online presenter and self-paced wrkshps Calculatrs Stages Online SM *Nt available t participants lcated in Puert Ric. Virtually 24 hurs, 7 days a week TRU Partnership Emplyees Savings and Prfit Sharing Plan

22 Passwrd The first time yu lg n t r call the R Retirement Benefits Line, yu will be asked t set up a passwrd. Just fllw the system s step-by-step instructins yur passwrd will be the same fr bth phne and Internet access. Accunt Statements Fllwing the end f each quarter, yu will receive a statement shwing the value f yur TRU Plan accunt, reflecting cntributins and investment gains r lsses. Yu can view yur statements nline, at r by calling the R Retirement Benefits Line. Yu may generate yur nline accunt statement at any time, and custmize the statement t reflect any date range within the past 24 mnths. A ntice f statement availability is sent via fr thse wh receive nline statements. If yu wuld like t elect t receive paper statements, yu must make a practive electin. Yu shuld review each accunt statement t ensure that yur accunt has been credited with the crrect amunt f yur pre-tax cntributins, catch-up cntributins, Cmpany matching cntributins (made prir t March 1, 2006), Cmpany Safe Harbr matching cntributins, and Prfit Sharing cntributins, and t ensure all amunts are invested crrectly. If there are any errrs in yur accunt statement, yu shuld bring them t the attentin f the Plan Administratr immediately s that the cst f crrecting thse errrs is nt cmpunded by delay. Yu shuld als examine yur paycheck r pay stub each pay perid t make sure that the amunt withheld fr yur pre-tax cntributins and catch-up cntributins is crrect. If yu d nt ntify the Plan Administratr in writing f an errr within three mnths f receipt f a paycheck, pay stub r accunt statement, the amunts withheld fr yur pre-tax cntributins, catch-up cntributins, the amunts f yur Cmpany matching cntributin (made prir t March 1, 2006), Cmpany Safe Harbr matching cntributins, and Prfit Sharing cntributin, and the investment f yur funds will be deemed t be crrect, and yu will n lnger have a right t file a claim under the TRU Plan relating t that errr. Cnslidated Accunts If, in additin t yur TRU Plan accunts, yu have ther persnal accunts with Fidelity, yu will be able t view all f yur accunt balances and have cnvenient access t all f yur accunts simultaneusly at Other Imprtant Infrmatin Cverage While n an Apprved Lng-Term Disability Prvided the Prfit Sharing Cmmittee apprves yur disability, yu will becme 100% vested in all TRU Plan accunts and can receive payment f yur accunts as prvided under the TRU Plan. Paying Fr Cverage If Yu Are n a Paid Leave f Absence (Family Leave may be prtected under FMLA) Yur cntributins and any lan repayments will be deducted frm yur pay as lng as yu are receiving a regular paycheck. Paying Fr Cverage If Yu Are n an Unpaid Leave f Absence If yur pay stps (r is reduced t a pint where cntributins and lan payments cannt be taken), cntributins and lan deductins will stp. If yu have an utstanding lan, yur lan repayments will be TRU Partnership Emplyees Savings and Prfit Sharing Plan