TLC Retirement Savings Plan 401(k) Plan Highlights

Transcription

1 TLC Retirement Savings Plan 401(k) Plan Highlights Your company has elected to make the TLC Companies Retirement Savings Plan available for you. Your company will be described as the Adopting Employer in this summary. The following are highlights of the Plan. For more detailed information, refer to the Summary Plan Description (SPD). I. PLAN FEATURES Plan Trustees: Plan Investments: Plan Eligibility: Plan Entry Date: Employee Reporting: Plan Administration: Mid Atlantic Trust Company* *Note: this replaces Depository Services Inc. (DSI) as shown in the Slavic Enrollment Guide. All Class A Shares at NAV (Net Asset Value, no load ), from toprated fund families including: American Funds Vanguard T. Rowe Price Fidelity Advisors Dodge and Cox Allianz OCC (PIMCO) Diamond Hill First Eagle SoGen For a detailed list of current mutual funds available in the plan, please refer to the TLC 401k Plan Fund List which includes fund performance and Morningstar information, or see the list of funds available on page 2 of the Enrollment Form. The plan also offers managed account options to help simplify retirement investing: Diverse Pre-Allocated Portfolios : select from Conservative, Moderate, or Aggressive, for an account that will be managed for you based on your risk tolerance; you should also consider your time to retirement when selecting a portfolio. Target Date funds: select a target date fund based on when you plan to stop working (within 5 years; see the year in the fund name). This is a one-fund approach for a welldiversified portfolio over many years; the asset mix changes and rebalances over time, typically becoming more conservative as you get closer to retirement. The mutual funds in the plan may change from time to time. The Plan s Investment Committee meets twice each year to review fund performance and selection criteria, to offer the best available Class A funds, from virtually all available fund categories. For investment advice or fund prospectus, please contact the Investment Advisor (below). At least 21 years of age* *Up to 1 Year of Service may also apply length of service for eligibility varies per company, but can be immediate refer to your SPD or call the TLC Benefits Dept. or Slavic for details. 1 st day of any Month after Plan Eligibility requirements are met* *Note: this replaces first day of any quarter as shown in the Slavic Enrollment Guide. Daily Valuations with statements provided on a quarterly basis TLC/Payroll Plus Benefits Department: P.O. Box 1168, Detroit Lakes, MN Investment Advisor: Slavic Investment Advisors: Plan Record Keeper: Slavic401k.com: After enrollment, you can access your account information and helpful tools with your SSN and Password. II. PLAN PARTICIPATION The TLC Retirement Savings Plan is a plan sponsored by The TLC Companies. It is a retirement program that offers you the opportunity to save a portion of your pay, in a tax-deferred 401(k) savings account. The Adopting Employer may also make discretionary contributions. You will be eligible to start your deferrals at your Plan Entry Date shown above. Revised 01/ k PlanHighlights_2014.doc

2 III. CONTRIBUTIONS TO YOUR ACCOUNT Your Contributions The TLC plan allows you to make both Traditional and Roth contributions. In a Traditional 401(k) plan, contributions are called deferrals. Deferrals refer to postponing a portion of salary until a later date (i.e., retirement, disability). Since these contributions reduce the gross income figure on which taxes are based, you will experience an immediate reduction in income taxes. (Your Social Security taxes and benefits are not affected by the amount of contributions you make to the Plan.) Contributions made to a Roth 401(k) are made with after-tax dollars, so they initially won t reduce your tax bill. However, the money will grow tax-free and all withdrawals after age 59 ½ will be tax free. Contributions are made very simply through salary withholding. You will need to make a written election with respect to both your deferral amount and your investment choices. Contributions can be made to either the Traditional, Roth 401(k), or both, but money cannot be switched from one plan to the other. All contributions are voluntary and may be increased or decreased as of any Entry Date. You may defer up to 80% of your salary. The maximum dollar amount you may contribute is set by the Internal Revenue Code ($17,500 for 2014). The same contribution limit will apply to either the Traditional or Roth 401(k) account, or both if combined. If your employer provides a matching contribution, the match must be put into the Traditional 401(k) account. You may stop your deferrals at any time. If you stop your deferrals you must wait for a Plan Entry Date to restart deferrals. Catch-up Contributions for Employees Closer to Retirement Employees age 50 or older may make additional pre-tax salary reduction contributions of up to $5,500 (total of $23,000) for the tax year 2014 (this amount will be indexed for inflation thereafter). First Payroll Deduction Your contribution deductions will start with the first payroll period after your initial Plan Entry Date. IV. WHERE DOES THE MONEY GO? A Trust Fund has been established to hold and safeguard the assets of your Retirement Savings Plan. The Trust segregates your retirement assets from assets of The TLC Companies and safeguards them from general creditors. All new contributions, as well as existing balances, will be invested according to your instructions. A wide variety of investment options are available with varying risk/return characteristics. TLC s investment policy is available at or upon written request. Four times per year, shortly following January 1st, April 1st, July 1st and October 1st, you will receive a status report of your account. This statement will illustrate beginning balances, your Deferral Contributions, Company Matching Contributions, earnings credited, distributions taken and ending balances. V. HOW DOES MY ACCOUNT COME TO ME? Your Deferral Contributions are always fully vested. Vesting refers to the non-forfeitable share of your account balance. If made, Discretionary Matching and Profit Sharing Contributions are subject to the following vesting schedule, unless otherwise stated in your Summary Plan Description: Years of Service Percentage of Vesting Less than 2 0% 2 20% 3 40% 4 60% 5 80% 6 100%

3 You will have access to your vested accounts only upon occurrence of any of the following circumstances: Termination of Employment Upon your termination, the account balances which represent both your vested Employer and Deferral accounts become payable. The Plan will distribute your benefit as soon as administratively possible following your termination of employment. Cash distributions prior to Retirement, Death or Disability are considered early withdrawals and are subject to taxes and penalties. A rollover to another qualified plan is not subject to taxes or penalties but must be reported in tax returns. Death or Disability Upon death or disability, the full value of all accounts become payable regardless of Years of Service for vesting. Distributions on account of death or disability will be subject only to income tax. Excise taxes do not apply. It is important that you complete a Beneficiary Designation Form to protect your retirement dollars in the event of death or disability distribution. Furthermore, if you are married, it is a federal requirement that your spouse must consent to a named beneficiary other than the spouse. Retirement Normal Retirement begins at age 65. Retirement distributions will be paid in a lump sum. In- Service Early Retirement distributions may be made beginning at age 59½. In-Service Loans You may borrow from your Traditional 401(k) account in amounts from $1, up to $50, (limited to one-half of your vested account balance). Loans are not available from Roth 401(k) balances. Repayments of principal and interest will be made through payroll deductions. Loan Fees will be charged to a participant s account when an application is processed (the current fee is $125 for origination plus $12.50 for quarterly maintenance). No more than one (1) loan may be outstanding at any time. Loans are to be repaid within five (5) years, unless used for purchase of a primary residence in which case repayment must be within fifteen (15) years. Interest on an In-Service Loan is not deductible. Loans that are not repaid, at the time any remaining balance is distributed, are generally subject to taxes and penalties as an early withdrawal. Hardship Distributions A Participant salary reduction distribution will be allowed, after all other resources have been exhausted, with proof of the following: (a) medical expenses; (b) purchase of principal residence; (c) tuition; or (d) to prevent foreclosure on principal residence. VI. PLAN FEES Plan participants are charged their share of plan expenses. The current account maintenance fee is $39 per year ($9.75 per quarter). The Plan Administrator has full discretion to change this fee as plan expenses change. All investments have their own operating expenses, reported with fund performance ( Expense Ratio ). The funds in this Plan are charged an additional asset management fee of up to 0.85%* for the open architecture investment format (the ability to have a wide range of top-performing funds in the plan s investment platform, without fund family restrictions). (*This fee varies per worksite.) Except for plan loans, all distributions from the plan are subject to a $40 distribution fee. VII. SUMMARY The Retirement Savings Plan highlighted above has been made possible by The TLC Companies to reward longevity and good savings habits. TLC and the Adopting Employer recognize that it is difficult for many employees to save for their retirement. We believe this systematic approach may make it easier to save for retirement. To enroll in this program, complete the attached Enrollment Form, and return to the Benefits Dept. at P.O. Box 1168, Detroit Lakes, MN Remember: Put yourself first, and pay yourself first.

4 TLC Enrollment Form Participant Information Name: First Middle Last Address ( ) City State Zip Telephone (Including area code) Date of Birth Social Security Number Date of Hire Express * * Check this box to receive statements, required notices, and other plan information via secure electronic delivery. You may unsubscribe at anytime and there is no extra fee for receiving paper statements via US mail. By checking the block, I hereby consent to receive, via electronic delivery from the Administrator, required 401(k) notices that may include: Eligibility notice, Qualified Default Investment Alternatives (QDIA) notice, Safe Harbor notice (if elected), Summary Plan Description (SPD), Auto enrollment notice (if elected), Trade Confirmations, Summary Annual Report (SAR) of the plan, Summary Prospectus for funds, Plan Amendments or modifications, Quarterly Statements. Are you an owner, a relative of an owner, or did you make over $115,000 last year with your current worksite employer? Yes No Employer Information Worksite Employer ( ) Telephone (Including area code) For Office Use Only Company#... Rep#... Plan#... Contributions Instructions Choose one of the following options for your payroll Traditional 401(k) ROTH 401(k)* Traditional 401(k) AND ROTH 401(k)* The total amount to be deducted from my paycheck will be % (Whole % Only) or $ per pay period. The total amount to be deducted from my paycheck will be % (Whole % Only) or $ per pay period. The total amount to be deducted from my paycheck will be % (Whole % Only) or $ Traditional 401(k)AND % (Whole % Only) or $ ROTH 401(k) I would like to change my contributions as of the next plan entry date. My new elections are listed above. I would like to stop my contributions immediately. I have a balance to rollover from an IRA, a previous employer 401(k) or 403(b). (A Representative will call you, or you may call for assistance.) I do not choose to make deferral contributions at this time 403(b). * In a Roth 401(k) account, your investments grow tax-free. You pay taxes on your deductions and pay no taxes when you become eligible for a distribution after age 59 1/2. Your financial advisor can help determine if it makes sense for you to make Roth 401(k) contributions to your account. Note: The total amount for the plan year 2014 may not exceed 80% of your compensation or $17,500 per year, whichever is less. This deduction will continue until your employer receives written notice of change. Key and Highly Compensated Employees are limited by a test to their deferral percentage. Participants over age 50 may defer an additional $5,500 (Max $23,000 under the catch-up EGTRRA 2001 provision.) Participant and Employer hereby mutually agree that Employer shall reduce and withhold the above salary reduction amount/percentage from the Participant's Compensation. The Employer shall contribute the amount so withheld to the voluntary 401(k) qualified plan (the Plan, terms and conditions are hereby incorporated by reference). This shall be in effect until Employer receives written notice of change. No distributions will be allowed before age 59 1/2 while still employed by TLC and the work site The Annual Plan Administration Fee is $39 (not prorated). This fee increases to $60 if the Adopting Employer revokes the Plan or terminates the service agreement with TLC and does not transfer the plan assets. The fee to process eligible plan distributions is $40 (hardships, rollovers, plan transfers or cash withdrawals). There is a $125 one-time loan document fee and an annual loan maintenance fee of $50. These fees will be deducted from your account. Signature of Participant Date Slavic Investment Corporation 1075 Broken Sound Parkway NW, Suite 100 Boca Raton, Florida * * * FAX * Member FINRA, SIPC.

5 401(k) Plan Investment Options You must select either section (A) Pre-Allocated Portfolio or (B) Self-Directed Portfolio. You may not select from both options. If you do not specify an option in Sections A or B, your account will automatically be invested in one of the Section A managed portfolios according to your age, those portfolios bear an extra fee of 25 basis points per year (1/4%). Aggressive Risk Moderate Risk Conservative Risk A Pre-Allocated Portfolios The pre-allocated risk based portfolios are managed by Slavic Mutual Funds Management Corp. (SMF), an ERISA 3(38) Fiduciary Advisor. SMF is an affiliate of Slavic401k and charges a 0.25% management fee in addition to the plan asset fee. SMF recommends that you take the risk profile test on the website or in the enrollment booklet before choosing a portfolio. B Self-Directed FundOptions *Specialty Investment Funds *FMFEX Fidelity Advisor Materials I *MMUFX MFS Utilities A *VGELX Vanguard Energy Admiral *VGRSX Vanguard REIT Index Signal *EKWAX Wells Fargo Precious Metals Foreign/Global Company Stock Funds RERGX American Funds EuroPacific Growth R6 RNPGX American Funds New Perspective R6 DFCEX DFA Emerging Markets Core Equity DFISX DFA Int'l Small Co. DODFX Dodge & Cox International Stock SGOVX First Eagle Overseas A PRASX T. Rowe Price New Asia Bonds/Money Market Funds DUSXX Dreyfus 100% Treasury Money Market PTTAX PIMCO Total Return A VAIPX Vanguard Inflation Protected Securities Admiral VIBSX Vanguard Intermediate-Term Bond Index Signal VMMXX Vanguard Prime Money Market VBSSX Vanguard Short-Term Bond Index Signal VSGDX Vanguard Short-Term Fed Admiral VBTSX Vanguard Total Bond Market Index Signal % Small/Med. Co. Domestic Stock Funds ACMVX ACRNX DHSCX FSCRX VMISX VISGX Large Co. Domestic Stock Funds DODGX FUSVX PRGFX VEIPX VTSSX American Century Mid Cap Value Columbia Acorn Fund Z Diamond Hill Small Cap A Fidelity Small Cap Discovery Vanguard Mid Cap Index Signal Vanguard Small Cap Growth Index Dodge & Cox Stock Fidelity Spartan 500 Index Advtg T. Rowe Price Growth Stock Vanguard Equity Income Vanguard Tot Stock Market Index Signal Target Date/Asset Allocation VTXVX Vanguard Target Retirement 2015 VTWNX Vanguard Target Retirement 2020 VTTVX Vanguard Target Retirement 2025 VTHRX Vanguard Target Retirement 2030 VTTHX Vanguard Target Retirement 2035 VFORX Vanguard Target Retirement 2040 VTIVX Vanguard Target Retirement 2045 VFIFX Vanguard Target Retirement 2050 VFFVX Vanguard Target Retirement 2055 VTTSX Vanguard Target Retirement 2060 VTINX Vanguard Target Retirement Inc. (At/Near Retirement) % Total Must Equal 100% *Specialty investments are high risk and only suitable as a small portion of your overall portfolio. Do not exceed 10% of your total assets in any one of these funds or 30% in any combination. Conservative investors close to retirement should not invest in these funds without professional guidance. An asset fee of 0.85% or less will be charged based upon assets in the plan. All funds and portfolios bear some risk and your account could suffer a loss. There is no guarantee of future performance. Prospectuses are also available online at Beneficiary Information Note: If you are married, name your spouse since your spouse is lawfully your primary beneficiary. If you wish to name someone other than your spouse, your spouse must consent with a notarized signature on this form. If you do not include your beneficiary's SS#, it is your responsibility to provide the number to slavic401k.com. Please do so online under the beneficiary tab after you log into your account. Primary Beneficiary Social Security Number Date of Birth Percentage Relationship Contingent Beneficiary Social Security Number Date of Birth Percentage Relationship I, spouse of the participant, understand that under the law, I am automatically the beneficiary who will receive 100% of the death benefits payable under the plan. I voluntarily choose to waive these rights, and I agree to the naming of the beneficiaries designated above. Signature of Spouse (if applicable) Date Notary Public Date BY SIGNING THIS AUTHORIZATION YOU: State of: My Commission Expires: 1.Authorize your employer to deduct from your compensation, the amount stated in your contribution instructions on the front of this form. 2.Authorize your Trustee(s)/Plan Administrator/SIA to: invest your contributions as indicated above, redeem the administrative fees as prescribed by the fee schedule, redeem the plan asset fee and the additional Option A SMF management fee if selected, and pay all sums payable by reason of your death to your named beneficiary. 3.Authorize the use of an SIA clearing account as a conduit of funds to and from the fund families. No interest is paid. 4.Acknowledge that you must notify SIA within 14 business days of account statement mailing if you are not invested as designated on the enrollment form or SIA will not be responsible for any errors. You must have a faxed, dated change form or record at Slavic to be considered for indemnification of errors. Enrollments and takeovers are processed on a best efforts basis. This account is subject to the terms of the fund s prospectuses. Signature of Participant Date