SUMMARY PLAN DESCRIPTION. The Hearst Corporation Retirement Plan

Transcription

1 SUMMARY PLAN DESCRIPTION The Hearst Corporation Retirement Plan

2 Contents THE HEARST CORPORATION RETIREMENT PLAN...1 LIFE EVENTS AND THE RETIREMENT PLAN...2 IMPORTANT DEFINITIONS...3 WHEN PARTICIPATION BEGINS...5 TRANSFERS...6 CREDITED SERVICE AND VESTING SERVICE...6 IF YOU BECOME DISABLED...6 IF YOU TAKE AN APPROVED LEAVE OF ABSENCE...7 IF YOU TAKE A MILITARY LEAVE OF ABSENCE...7 WHEN YOU DO NOT EARN CREDITED SERVICE...7 SPECIAL VESTING...7 BREAKS IN SERVICE...8 COST OF THE PLAN...9 YOUR RETIREMENT BENEFIT...9 NORMAL RETIREMENT...9 EARLY RETIREMENT...9 DEFERRED RETIREMENT...10 TERMINATED VESTED RETIREMENT...11 IF YOU ARE REEMPLOYED AFTER YOU BEGIN RECEIVING BENEFITS...11 BENEFITS PAYABLE FROM OTHER HEARST RETIREMENT PLANS...11 LIMITS ON YOUR BENEFITS...11 A WORD ABOUT SOCIAL SECURITY...11 FORMS OF PAYMENT...12 NORMAL FORMS OF PAYMENT...12 OPTIONAL FORMS OF PAYMENT...12 ELECTING AN OPTIONAL FORM OF PAYMENT...13 PRE-RETIREMENT DEATH BENEFIT...14 IF YOU WERE AN ACTIVE EMPLOYEE...14 IF YOU WERE ELIGIBLE FOR A TERMINATED VESTED BENEFIT...15 LUMP SUM PAYMENT...16 TAXES ON YOUR BENEFIT PAYMENTS...16 SPECIAL BENEFIT PROVISIONS...17 ELIGIBILITY AS A RESULT OF A JOB CHANGE...17 EMPLOYEES OF ACQUIRED COMPANIES...17 PARTICIPANTS IN PRIOR PLANS...18 PARTICIPANTS COVERED UNDER PLAN PROVISIONS NOT DESCRIBED IN THE BOOKLET...20 The Hearst Corporation Retirement Plan SPD (8/12) i

3 OTHER IMPORTANT INFORMATION...21 APPLYING FOR BENEFITS...21 IF YOUR APPLICATION IS DENIED...21 AMENDMENTS TO THE PLAN...22 IF THE PLAN IS TERMINATED...22 PENSION BENEFIT GUARANTY CORPORATION...23 ASSIGNMENT OF BENEFITS...24 QUALIFIED DOMESTIC RELATIONS ORDERS...24 TOP HEAVY RULES...24 REPORTS ON THE PLAN...24 NO GUARANTEE OF EMPLOYMENT...24 ADMINISTRATIVE INFORMATION...24 STATEMENT OF RIGHTS UNDER ERISA...25 PRUDENT ACTIONS BY PLAN FIDUCIARIES...26 ENFORCE YOUR RIGHTS...26 ASSISTANCE WITH YOUR QUESTIONS...26 The Hearst Corporation Retirement Plan SPD (8/12) ii

4 The Hearst Corporation Retirement Plan Retirement means different things to different people. For some, it is a time to relax in a warm climate. For others, it is a time to enjoy hobbies and grandchildren. But whatever your retirement dream is, The Hearst Corporation Retirement Plan helps you have the financial security to enjoy it. The Plan works with the Employee Savings Plan, Social Security, and your personal savings to form a retirement income program. Each part has a specific and important role to play and offers different features and advantages. The special features of The Hearst Corporation Retirement Plan (the Retirement Plan or the Plan) include the following: The Company pays the full cost of the Plan. You are eligible for this plan if you were an active employee or on an approved leave of absence as of December 31, Your participation begins automatically as soon as you complete one year of service, and are at least 21 years old The amount of your benefit is based on your years of credited service and your final average salary. You are fully vested in your benefit after completing just five years of vesting service. That means you are entitled to receive a benefit at age 65, even if you leave the Company before then. You can retire at age 65, or as early as age 55 if you have at least 10 years of vesting service You have the choice of several different forms of payment for your benefit. Your spouse or domestic partner may receive a benefit in the event of your death. Effective December 31, 2009, the Hearst-Argyle Television, Inc. Retirement Plan was merged into The Hearst Corporation Retirement Plan. This booklet describes The Hearst Corporation Retirement Plan in effect as of January 1, 2012, except for eligible employees of HTV Charlotte, KCCI, KCRA/KQCA, KETV, KOAT, KSBW, WDSU, WESH/WKCF, WGAL, WLKY, WPTZ/WNNE, WXII, and WYFF. The Hearst Corporation Retirement Plan in effect for employees at those units is described in a separate booklet. If you have any questions about how particular aspects of the Plan work, contact the Employee Benefits Department at If you are viewing this summary plan description (SPD) on BenefitsInsider ( you can print it from the site. For a printed copy of this SPD, please call the Employee Benefits Department. This booklet is intended to provide you with easy-to-understand explanations of certain features of The Hearst Corporation Retirement Plan. It does not include the complete details of the Plan. These are contained in the official Plan document, which legally governs the administration of the Plan. Every effort has been made to ensure the accuracy of the information contained in this booklet. However, if there is a conflict or difference between what is written here and the Plan document, the Plan document will always rule. Hearst Corporation intends to continue the Plan; however, the Company necessarily reserves the right to amend, change, modify, or terminate the Plan at any time and for any reason. This booklet is not an offer or contract of continued employment with the Company. The Hearst Corporation Retirement Plan SPD (8/12) 1

5 Life Events and the Retirement Plan During your Hearst career, there may be a lot of changes in your life. But from your first day of work to your retirement, the Retirement Plan continues to meet your needs. This chart provides a brief description of how the Plan works when certain life events occur. Please read this booklet for more detailed information about your benefits. Life Event Plan Highlight When you join the Company If you are an eligible employee, you automatically participate in the Plan after you have completed one year of service during which you worked at least 1,000 hours, and if you are at least 21 years old. If you did not become a participant before December 31, 2010, you will become a participant after you meet the age and service requirements only if you were an active employee or on an approved leave of absence on December 31, The normal form of retirement benefit is a joint and 50% If you are married or have a domestic survivor annuity, with your spouse or domestic partner as partner your beneficiary. If you become divorced If you are sick or injured and cannot work Your former spouse is no longer eligible for death benefits. You continue to earn credited and vesting service while you are unable to work if you meet the Plan s definition of disabled. If you leave the Company before you retire You can receive a retirement benefit at age 65 if you had at least five years of vesting service Benefits can begin as early as age 55 if you had at least 10 years of vesting; benefits are reduced if they begin before age 65. If you retire You can receive a normal retirement benefit at age 65. Benefits can begin as early as age 55 if you have at least 10 years of vesting service; benefits are reduced if they begin before age 65. If you die before you begin receiving benefits If you had completed at least five years of vesting service, your surviving spouse or domestic partner will be eligible for a death benefit if you had been married or in the domestic partner relationship for at least 12 months. No benefit will be paid if you were not married or if you had been married or in a domestic partner relationship for less than 12 months. Survivor benefits will be paid to your domestic partner only if you were an active employee on or after October 1, 2004 (January 1, 2005, if you worked for Hearst-Argyle Television on that date). The Hearst Corporation Retirement Plan SPD (8/12) 2

6 Life Event If you die after you begin receiving benefits Plan Highlight If you were receiving benefits in a form of payment that includes survivor benefits, your beneficiary will receive benefits after your death. If you were receiving benefits in a form of payment that does not include survivor benefits, no benefits will be paid after your death. Important Definitions Here s an explanation of some words and phrases that have a very specific meaning when used to describe the Plan. Administrative Committee or Committee The individuals appointed by Hearst to administer the Plan. Company Hearst Corporation and its designated subsidiaries and affiliated companies. Credited Service Your years and months of service as an eligible employee with the Company, beginning on the date you begin participating in the Plan and continuing to the date you terminate covered employment, up to a maximum of 40 years of credited service. You earn a year of credited service for each calendar year in which you complete at least 1,000 hours of service as an eligible employee with the Company. During your first and last years of Plan participation, you earn a month of credited service for each whole month of employment (partial months will be credited to the nearest whole month). See Credited Service and Vesting Service on page 6 for more information. Domestic Partner A partner of the same or opposite sex with whom you: Are in a relationship that is exclusive, and is one of mutual support, caring, and commitment, and intend to remain so indefinitely, Maintain the same permanent residence, and have done so for at least one year, Are not related by blood closer than would bar marriage under the law of your state of domicile, and Are jointly responsible for common living expenses. In addition, you and your domestic partner must: Be at least 21 years old and mentally competent to enter into a legally binding contract, Not be married to any other individual, or in a domestic partnership relationship with any other individual, and Satisfy such other criteria of uniform applicability as may be reasonably required by the Administrative Committee. You (or in the case of your death, your domestic partner) must submit an Affidavit of Domestic Partnership, which confirms that you and your domestic partner meet these criteria. Even if you do not meet all of the above conditions, you and your domestic partner will automatically qualify as domestic partners for purposes of Plan benefits if you are registered as domestic partners in accordance with the requirements of a city, state, or municipality that recognizes domestic partnerships. A certified copy of your registration or other certification must be submitted to the Employee Benefits Department. The Hearst Corporation Retirement Plan SPD (8/12) 3

7 Eligible Employee You are an eligible employee if you are an employee hired before January 1, 2011, of a business unit of Hearst that participates in the Plan and you are paid on an hourly wage or annual salary basis, as long as you were an active employee or on an approved leave of absence on December 31, You are not an eligible employee if you are: Covered by a defined benefit retirement plan (other than this one) to which the Company contributes Covered by a collective bargaining agreement where benefits were the subject of good faith bargaining An employee of a business entity that has not been designated by Hearst to participate in the Plan A leased employee If you terminate employment after December 31, 2010, and later return to service, you will not be eligible to participate in the Plan at any time after your reemployment. However, you will continue to accrue vesting service. Final Average Pay The average of your highest paid salary during any five consecutive calendar years that you are an eligible employee. Your pay for your final year of service will be included only if your last day of employment is December 31. If you work fewer than five years, your final average pay will be based on your service, including any partial year of service during the year you were hired, but not including your final year of service, unless your last day of employment is December 31. Your paid salary includes base salary, commissions, regular bonuses, overtime and salary continuation, before-tax contributions to any Hearst employee savings plan, and before-tax deductions used to pay for any benefits sponsored by the Hearst. Federal tax law limits the annual pay the Plan may include in calculating your final average pay. For 2012, the maximum pay that is used is $250,000. This amount will be adjusted periodically. Please contact the Employee Benefits Department for the limit applied to each year. Hours of Service Any period of time for which you are paid or entitled to be paid by Hearst or any affiliated companies. Hours of service include vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty, approved leave of absence, and any other period for which you are paid or are legally entitled to be paid, up to a maximum of 501 hours. Your hours of service also include any period for which back pay is either awarded or agreed to by the Company, up to a maximum of 501 hours. The same hours of service will not be credited more than once. Your hours of service do not include any period for which you receive Workers Compensation or unemployment benefits. For salaried employees, hours of service are credited on an equivalent basis. You will be credited with 190 hours of service each month in which you work at least one hour of service. See Breaks in Service on page 8 for more information. Normal Retirement Date The first day of the month coinciding with or immediately following the day you turn 65. Retirement Plan or Plan The Hearst Corporation Retirement Plan, as amended through January 1, Spouse The person to whom you are legally married when benefit payments begin or to whom you had been legally married for at least 12 consecutive months immediately preceding your death if you die before you begin receiving a benefit. Vesting Service Your years of service with Hearst or any affiliated companies beginning on your date of hire and continuing to the date you terminate employment. You earn a year of vesting service for each The Hearst Corporation Retirement Plan SPD (8/12) 4

8 calendar year in which you complete at least 1,000 hours of service, as long as you are at least 18 years old. See Credited Service and Vesting Service on page 6 for more information. When Participation Begins You automatically participate in the Plan if you are an eligible employee of a business unit of the Company that participates in the Plan and you: Have completed one year of service, Are at least 21 years old, and Were an active employee or on an approved leave of absence on December 31, A year of service for determining eligibility to participate is the 12-month period, beginning on your date of hire, during which you complete at least 1,000 hours of service. Participation begins the day after you become eligible. If you do not complete at least 1,000 hours during your first 12 months of service, the period for measuring your 1,000 hours will be the calendar year following your date of hire. You will automatically participate in the Plan on the January 1 immediately following the calendar year in which you complete 1,000 hours of service. For example, if you began work on April 23, 2010, you became a participant in the Plan on April 23, 2011, as long as you completed at least 1,000 hours of service during the 12-month period ending on April 22, 2011, and you were at least age 21. In this example, if you did not complete at least 1,000 hours of service by April 22, 2011, but you did complete 1,000 hours of service during the 2011 calendar year, you will become a participant in the Plan at the beginning of the following calendar year, January 1, If you are younger than 21 when you complete your 1,000 hours of service, you will become a participant on your 21 st birthday. For example, let s assume you began work on May 4, 2010, when you were age 19, and your birthday is June 8. The 12-month period for completing at least 1,000 hours of service ends on May 3, 2011 but because you are age 20 at that time, you will not become a participant until June 8, 2011, when you turn 21. If you participated in the Hearst-Argyle Television, Inc. Retirement Plan on December 31, 2009, you automatically became a participant in The Hearst Corporation Retirement Plan on January 1, If you were not a participant, your service before January 1, 2010, will be taken into account to determine when you become eligible to participate in the Plan. If you were an employee of Hearst Corporation who participated in The Hearst Corporation Retirement Plan on August 28, 1997, and you became an employee of Hearst-Argyle Television, Inc. as of August 29, 1997, your Plan participation will be effective as of your original Plan membership date. If you became a Hearst-Argyle Television, Inc. employee after August 29, 1997, your Plan participation will be retroactive to the date you became a member of the Hearst-Argyle Television, Inc. Retirement Plan. You are not eligible to participate in the Plan if you are: Hired or rehired on or after January 1, 2011 Covered by a defined benefit retirement plan (other than this one) to which the Company contributes Covered by a collective bargaining agreement where benefits were the subject of good faith bargaining The Hearst Corporation Retirement Plan SPD (8/12) 5

9 An employee of a business entity that has not been designated by Hearst to participate in the Plan A leased employee Transfers If you transfer after December 31, 2010, to a unit that participates in the Plan from a non-participating unit or you are promoted to management from union status, you will be eligible to participate in the plan if you participated in another Company-sponsored defined benefit retirement plan at the time of your transfer. See Eligibility as a Result of a Job Change on page 17 for more information. Credited Service and Vesting Service Your retirement benefit is determined using your final average pay and your years of credited service up to 40 years. In general, after you become a Plan participant, you earn a year of credited service for each calendar year in which you complete at least 1,000 hours of service as an eligible employee with Hearst. However, in some cases you may earn credited service when you are not actively employed as an eligible employee. The following sections provide information about those situations. In addition, if you became a participant in the Plan when you transferred into the Plan from non-covered employment, special rules apply. See Special Benefit Provisions on page 17, for more information. Vesting refers to your right to receive a benefit. You are 100% vested at the earlier of the following events: You complete five years of vesting service You reach age 65 and you are an active Hearst employee You earn a year of vesting service for each calendar year in which you complete at least 1,000 hours of service, as long as you are at least 18 years old. Your vesting service includes all your hours of service with Hearst or a related employer, even if you are not eligible to participate in the Plan. In addition, in some cases you earn vesting service when you are not actively at work. The following sections provide information about those situations. If you are an employee of a business entity acquired by Hearst, vesting service for your previous employment will be credited as specified by Hearst for your business unit. If You Become Disabled You are considered disabled if you are eligible to receive benefits under the Federal Social Security Act and you are receiving benefits from The Hearst Corporation Salary Continuation Insurance Plan. However, if your Salary Continuation Insurance Plan benefits end because you have received the maximum benefits allowed under that plan, you will continue to be considered disabled under this Retirement Plan, as long as you are receiving Federal Social Security disability benefits. You continue to earn credited service and vesting service while you are disabled until the date you terminate employment or retire from the Company. When you become eligible for an early or normal retirement benefit, the amount you receive will be based on your credited service and vesting service both before and during your period of disability. If you recover from your disability before you begin receiving benefit payments under the Plan, you will not earn any additional credited service and vesting service unless you return to work within a reasonable time after your recovery. The Hearst Corporation Retirement Plan SPD (8/12) 6

10 If You Take an Approved Leave of Absence You continue to earn credited service and vesting service if you take an approved, unpaid leave of absence. This includes an approved, unpaid Family or Medical Leave of Absence. If you do not return to work on or before the last day of the approved leave of absence, you will forfeit this credited service and vesting service. If You Take a Military Leave of Absence Federal law gives you certain rights if you voluntarily or involuntarily leave work to serve in any of the United States uniformed military services (including the Coast Guard) for active duty or for training. To qualify for these rights, both of the following must apply to you: You must give the Company advance written or verbal notice of your upcoming leave for military service, and You must report back to work within certain time periods, depending on the length of your military service. If you meet these requirements, when you return to work you will be eligible to receive the credited service and vesting service you would have earned during the period of military service, had you remained employed with the Company. For more information about reemployment rights for veterans, please contact the Employee Benefits Department. When You Do Not Earn Credited Service You do not earn credited service in the following situations: Before you become a Plan participant After you return to service, if you return to service after December 31, 2010 While you are receiving unemployment insurance or Workers Compensation payments If you transfer to a unit that does not participate in the Plan, or to a job category, such as union membership, that is not eligible to participate in the Plan (in this case, your accrued benefit will be frozen as of the date of your transfer and you will not earn additional credited service) If you are an employee of a business unit that has not been designated by Hearst as a participating employer in the Plan After you have earned the maximum credited service (40 years) recognized by the Plan Special Vesting Employees of the following units became 100% vested in their benefit, regardless of their years of service, as described below: HomeArts and Astronet divisions of Hearst Communications, Inc. employees who were employed as of March 31, 1999, and whose employment was terminated because these units were sold to Women.com Networks LLC Avon Books, Inc., Hearst Books Trade Division/Administration, William Morrow and Company, Inc., and Wilmore Warehouse and Shipping Co., Inc. employees who were employed as of July 12, 1999, and whose employment was terminated because these units were sold to HarperCollins Publishers, Inc. Eastern News Warehouse division of the Hearst Distribution Group, Inc. employees who were employed on April 30, 2001, and whose employment was terminated because this unit was sold The Hearst Corporation Retirement Plan SPD (8/12) 7

11 In addition, former employees of the San Francisco Newspaper Printing Company who terminate employment before completing five years of vesting service will be 100% vested if they: Had completed at least three years of vesting service as of December 31, 2001, and Would have been vested under the terms of the San Francisco Newspaper Agency (SFNA) Pension Plan, if that Plan had continued to apply to the employees. Breaks in Service A break in service can affect your Plan benefit. You may have a break in service if you complete fewer than 501 hours of service during a calendar year. If you are not vested when you have a break in service, your years of credited service and vesting service from your first period of employment will be restored to you when you are rehired if your break in service is less than five years. If you are not vested and you have a break in service of five years or more, your prior vesting service and credited service will be forfeited. You will not have a break in service and you will continue to earn credited service and vesting service during any period of disability or approved leave of absence (including a Family or Medical Leave of Absence or Military Leave of Absence), as long as you return to work at the end of the leave of absence or period of disability. To prevent a break in service, you will be credited with up to 501 hours of service during any year in which you are absent from work because of: Pregnancy Childbirth The placement of an adopted child in your home The care of a child after birth or placement in your home These 501 hours of service will be credited in the year in which the break in service begins. If fewer than 501 hours are needed to prevent a break in service, the remaining hours will be credited to the next year. If you are vested when you have a break in service, all of your prior vesting service will be restored to you when you are rehired, regardless of how long the break in service was. When you are rehired, your prior credited service will be restored if: You did not receive a lump sum payment of your benefit, or You received a lump sum payment and you repay the total amount, plus interest, within five years of your reemployment. Different rules may apply if you had a break in service and returned to work before January 1, See the Employee Benefits Department for more information. If you are rehired before January 1, 2011, you will participate in Plan again after you complete one year of vesting service. If you were previously a Plan participant, your participation will be retroactively effective from your date of rehire. If you were not vested when you had a break in service of less than five years, your years of credited service and vesting service from your first period of employment will be restored to you when you are rehired and you complete one year of vesting service. If you were not vested when you had a break in service of five years or more, your prior credited service and vesting service will be forfeited. The Hearst Corporation Retirement Plan SPD (8/12) 8

12 If you are rehired after December 31, 2010, following a termination of employment, you will not be eligible to participate in the Plan. However, you will be credited with vesting service in accordance with the rules described above. Cost of the Plan The Company pays the entire cost of your benefit. You contribute nothing. Your Retirement Benefit When you terminate, you will be eligible for one of four types of retirement benefit: Normal retirement Early retirement Deferred retirement Terminated vested retirement In general, the type of benefit you receive depends on your age and your years of vesting service. You must be 100% vested before you can receive a benefit. See Credited Service and Vesting Service on page 6 for more information. Remember, benefit payments do not begin automatically; you must apply for them. See Applying for Benefits on page 20 for more information. Normal Retirement You can retire and begin receiving a normal retirement benefit on the first day of the month coinciding with or immediately following the day you reach age 65. Your normal retirement benefit is calculated like this: % final average pay years of credited service, up to 40 years Normal Retirement Example Let s assume you retire at age 65, your final average pay is $50,000, and you have 30 years of credited service. Your annual benefit would be: % final average pay years of credited service, up to 40 years (1 1 2 % $50, = $22,500). Your monthly benefit would be $1,875 ($22, = $1,875). Early Retirement You can retire and begin receiving a benefit as early as age 55, if you have at least 10 years of vesting service. Your early retirement benefit will be calculated in the same way as a normal retirement benefit, but it will be reduced because you will receive your benefits over a longer period of time. For each month that your early retirement date precedes your normal retirement date, the reduction in benefit will be -1/2 of 1% for each of the first 60 months and 1 3 of 1% for each of the next 60 months. The table on the next page shows the percentage of your normal retirement benefit you will receive, based on your age when you begin receiving benefits. The Hearst Corporation Retirement Plan SPD (8/12) 9

13 Age When Benefits Begin Percentage of Normal Retirement Benefit 64 94% 63 88% 62 82% 61 76% 60 70% 59 66% 58 62% 57 58% 56 54% 55 50% Early Retirement Example Let s assume you retire and begin receiving your benefit at age 61, your final average pay is $50,000, and you have 26 years of credited service. Your annual benefit payable at age 65 would be $19,500 (1 1 2 % $50, = $19,500). Because you are beginning payment at age 61, however, your benefit will be reduced to 76% of this amount, or $14,820 (76% of $19,500 = $14,820). Your monthly benefit would be $1,235 ($14, = $1,235). Deferred Retirement There is no mandatory retirement age. You can continue working past age 65 and continue to earn credited service, up to 40 years. Benefits will begin at retirement, unless noted below. If you continue working past age 65, you will receive a retirement benefit for any calendar month during which you are expected to work less than 40 hours. This payment will be made by the first day of the third month following the month you worked less than 40 hours, and the payment will include interest up to the date payment is made. Generally, you will not begin receiving benefits until you actually retire. However, there are certain exceptions to this rule. If you are a 5% owner of Hearst or a related company, you must begin receiving benefits as of April 1 of the year after the year in which you reach age , even if you are still working for the Company. In addition, if you reached age before 2000, you were allowed to begin receiving a monthly minimum distribution of your benefit after attaining age , even if you were still employed. Under special tax rules, participants who reached age before 1996 were required to begin receiving benefits as of April 1 of the year after the year in which they reached age , even if they had not retired. If you do not begin receiving benefit payments until you retire after age , your benefit will be actuarially increased to take into account the period of deferral after age The actuarial increase begins on the January 1 following the calendar year in which you reach age and ends on the date you begin receiving benefits from the Plan. Your retirement benefit determined as of any date after you reach age will be the greater of: Your benefit determined as of the last day of the prior Plan year, actuarially increased to the date you begin receiving benefits from the Plan, or Your normal retirement benefit as of the last day of the prior Plan year, increased by any additional accrual due to credited service and/or salary earned in the current Plan year. The Hearst Corporation Retirement Plan SPD (8/12) 10

14 If you begin receiving benefits before you terminate employment, any increase in your accrued benefit due to increases in your credited service, salary or other reasons will be reduced by the value of the benefit payments you receive before you actually retire. That is, your benefit calculation will take into account the value of the benefits paid and any change in your final average pay and credited service. Your benefit will never be less than your accrued benefit as of December 31 of the prior year. Terminated Vested Retirement If you leave the Company after you complete at least five years of vesting service, you are eligible to receive a terminated vested retirement benefit when you reach age 65. If you have at least 10 years of vesting service, you can begin receiving your terminated vested retirement benefit any time after you reach age 55. This benefit is calculated in the same way as the normal retirement benefit, using your years of credited service and final average pay when you leave the Company. If you begin payment before age 65, your benefit will be reduced in the same way as described in Early Retirement on page 9. If You Are Reemployed After You Begin Receiving Benefits If you retire and begin receiving benefits and then return to the Company, payment of your benefits will be suspended. Your benefit will be recalculated when you leave the Company again. Your benefit will be reduced by the value of any payments that you previously received; you will not earn any additional benefits if you are rehired after December 31, If you return to work at your normal retirement date or later, payment of your benefits will be suspended only if you work at least 40 hours a month. If you are reemployed by the Company after you received a lump sum payment, your previous credited service will be restored to you if you repay the total amount, plus interest, within five years of your reemployment. Benefits Payable from Other Hearst Retirement Plans If you participated in any other retirement plan sponsored by Hearst, a portion of your benefit may be paid according to the terms of that plan, and the Hearst Retirement Plan benefit will be reduced by the amount you receive from the other plan if you receive benefits from this Plan for the same period of service. See Special Benefit Provisions on page 17 for more information. Limits on Your Benefits Federal law limits the benefit you can receive each year from the Plan. In 2012, the annual benefit amount from the Plan is limited to $200,000. This amount may be adjusted periodically by the IRS. You will be notified if you are affected. A Word About Social Security In addition to the Plan benefits, you may also be eligible to receive Social Security retirement benefits. You and the Company pay taxes toward the cost of Social Security benefits. For each $1 you pay, Hearst also pays $1 toward your Social Security benefits. You can begin receiving reduced Social Security benefits as early as age 62. And, your spouse may also be eligible for a benefit. As with the Plan benefit, your Social Security benefit does not start automatically. You must apply for it through your local Social Security Administration Office at least three months before the date you want benefit payments to begin. The Hearst Corporation Retirement Plan SPD (8/12) 11

15 Forms of Payment You can receive your benefit in the normal form of payment for your marital status, or you can choose one of the optional forms of payment. If you terminate employment or retire on or after March 28, 2005, and the present value of your vested benefit is $1,000 or less, you will automatically receive your benefit in a lump sum when you leave the Company. If the present value of your vested benefit is more than $1,000 and not over $5,000, you may elect to receive your benefit in a lump sum when you leave the Company. Your spouse does not need to consent to this lump sum payment. Normal Forms of Payment If you are single, your benefit will be paid as a life annuity, unless you elect another form of payment. With a life annuity, you receive monthly payments during your lifetime, and no benefits are paid after your death. This is the form of payment shown in the benefit calculation examples used in this document. If you are married or have a domestic partner, your benefit will be paid as a joint and 50% survivor annuity, unless you elect another form of payment (with spousal consent, as explained below). With this form of payment, you receive monthly payments during your lifetime, and after you die, your surviving spouse or domestic partner will receive a monthly benefit equal to 50% of your monthly benefit for the rest of his or her life. The amount of your monthly benefit is reduced to pay for the cost of continuing benefit payments after your death. The amount of the reduction is based on the difference between your age and your spouse s or domestic partner s age. The reduction is greater when your spouse or domestic partner is younger than you, with the reduction increasing with greater age differences. Your spouse must give notarized, written consent to any form of payment other than a joint and survivor annuity paying at least 50% of your benefit to your spouse. Consent to another form of payment is not required from a domestic partner. Please note that this is the normal form of payment if you have a domestic partner only if benefit payments begin on or after October 1, 2004 (January 1, 2005, if you worked for Hearst- Argyle Television on that date). Optional Forms of Payment You can choose one of these optional forms of payment, instead of the normal form of payment for your marital or domestic partner status. Life Annuity Option You receive a monthly benefit during your lifetime, and no benefits will be paid after your death. This is the same as the normal form of payment for a single person. Joint and Survivor Annuity Option You receive a monthly benefit during your lifetime, and after your death, your designated beneficiary will receive a monthly benefit for the rest of his or her life. Your designated beneficiary under the joint and survivor annuity option must be someone who would be entitled to inherit from your estate if you were to die without making a will (for example, your spouse or your child) or your domestic partner (for benefits beginning on or after October 1, 2004). If you are married, your spouse must give written, notarized consent for any beneficiary other than himself or herself. If you later wish to change your beneficiary designation before benefits begin, your spouse s written, notarized consent is required. The Hearst Corporation Retirement Plan SPD (8/12) 12

16 You can choose to have 50%, 75%, or 100%, or any other percentage between 50% and 100%, of your benefit for the survivor benefit. Certain limits may apply if your beneficiary is not your spouse; you will be notified if this applies to the beneficiary you designate. Your monthly benefit is reduced to pay for the cost of continuing benefit payments after your death. The amount of the reduction is based on the percentage of your benefit that continues after your death and the difference between your age and your beneficiary s age. The greater the percentage of the survivor benefit, the greater the reduction. The reduction also is greater when your beneficiary is younger than you, with the reduction increasing with greater age differences. 60 or 120 Months Certain Option You receive a monthly benefit during your lifetime. However, if you die before receiving at least 60 or 120 payments, as elected by you before benefits begin, your designated beneficiary will receive the same benefit payments you did until the end of the period of guaranteed benefit payment. All benefits will end at that time. Your monthly benefit is reduced to pay for the cost of continuing the benefits after your death for the specified period of time. The amount of the reduction will be based on the length of the period of guaranteed benefit payment and your age. Social Security Option This option is available only if you retire before you are eligible to receive any Social Security benefits (currently age 62). With this option, your benefit is adjusted so that, as nearly as possible, your total income from the Plan and Social Security will be the same before and after age 62. Your Plan benefit before you reach age 62 will be greater than the benefit paid beginning at age 62, when you will start receiving Social Security benefits. Your benefit commencing at age 62 will be reduced to pay for the increased payment before age 62. In some cases the benefit may be reduced to zero. You can choose this option in one of the following forms of payment: Life Annuity This option uses the benefit adjustment described above to pay for the increased payment before age 62. No benefits are paid after your death. Joint and Survivor Annuity An additional reduction is made to continue payments after your death. This reduction will be based on the percentage you choose for the survivor benefit and the difference between your age and your beneficiary s age. 120 Months Certain Option With this form of payment, if you die before receiving at least 120 payments, your designated beneficiary will receive the same benefit payments you would have received, until the end of the period of guaranteed benefit payment. All benefits will end at that time. If you die before age 62, the survivor benefits will be adjusted as of the date you would have reached age 62, the same as they would have been if you were still alive. Your monthly benefit is reduced to pay for the increased payment before age 62 and to pay for the cost of continuing the benefits after your death for the remainder of the 120 guaranteed payments. This option is not available if you are a Hearst Television employee. Lump Sum Option If the present value of your benefit is $10,000 or less, you can take a lump sum payment of your benefit when you retire. This option is only available if you terminate employment on or after your early retirement date. Electing an Optional Form of Payment If you want to receive your benefit in one of the optional forms of payment, you must complete and return an election form between 30 and 90 days before you want benefits to begin. The Employee Benefits Department can provide you with calculations showing what your benefit and the survivor benefit, if any, will be under the different forms of payment. The Hearst Corporation Retirement Plan SPD (8/12) 13

17 Remember, if you are married, your spouse must give notarized, written consent to any beneficiary other than himself or herself and any form of payment that does not provide at least a 50% survivor benefit. You may change the election of an optional form of payment back to the joint and 50% survivor annuity with your spouse as your beneficiary at any time before benefit payments begin. You do not need your spouse s consent to elect this normal form of payment. Pre-Retirement Death Benefit Your surviving spouse or domestic partner will be eligible for a death benefit from the Plan if: You die before you begin receiving benefit payments, You had completed at least five years of vesting service, and You and your spouse had been married, or you and your domestic partner had been in the domestic partner relationship, for at least 12 consecutive months before your death. Please note that your domestic partner is eligible to receive a pre-retirement death benefit only if you were an active employee on or after October 1, 2004 (January 1, 2005, if you worked for Hearst-Argyle Television on that date). If You Were an Active Employee If on your date of death you were an active employee, disabled, or on an approved leave of absence, your surviving spouse or domestic partner may be eligible for a death benefit. The amount of the benefit and when it will be paid will be based on your age and years of vesting service, as described below. If you had completed between 5 and 10 years of vesting service and you were under age 65, your surviving spouse or domestic partner will receive 50% of the benefit you would have received if you had left the Company on the day before your death, survived to age 65, and retired with a joint and 50% survivor annuity. Your spouse will begin receiving benefits on the first day of the month coinciding with or next following the date you would have reached age 65. Your domestic partner must begin receiving benefits as of the first day of the month after your death. Benefit payments to your surviving domestic partner will be actuarially reduced based on how long benefit payments begin before the date you would have reached age 65. If you had completed at least 10 years of vesting service and you were under age 55, your surviving spouse or domestic partner will receive the greater of (A) or (B), as described below: (A) Regular Death Benefit 50% of the benefit you would have received if you had left the Company on the day before your death, survived to age 65, and retired with a joint and 50% survivor annuity. Your surviving spouse may elect to receive a reduced payment beginning as early as the first day of any month coinciding with or following the date you would have reached age 55, but no later than your normal retirement date. Your surviving domestic partner must begin receiving benefits as of the first day of the month after your death. Benefits will be actuarially reduced for early payment. (B) Special Death Benefit 40% of the benefit you would have received if you had left the Company on the day before your death, survived to age 65, and retired with a life annuity. The 40% benefit is reduced by 1% for each year greater than five years that your surviving spouse or domestic partner is younger than you (partial years will be used). Your surviving spouse may begin receiving benefits as early as the first day of any month coinciding with or following the date you would have reached age 55, but no later than your normal retirement date. Benefit payments to your surviving spouse will not be further reduced if payments begin before the date you would have reached age 65. Your surviving domestic partner must begin receiving benefits as of the first The Hearst Corporation Retirement Plan SPD (8/12) 14

18 day of the month after your death. Benefit payments to your surviving domestic partner will be actuarially reduced based on how long benefit payments begin before the date you would have reached age 55. If you had completed at least 10 years of vesting service and you were between the ages of 55 and 65, your surviving spouse or domestic partner will receive the greater of (A) or (B), as described below: (A) Regular Death Benefit 50% of the benefit you would have received if you had left the Company on the day before your death, survived to age 65, and retired with a joint and 50% survivor annuity. Your surviving spouse may elect to receive a reduced payment beginning as early as the first day of any month coinciding with or following your death, but no later than your normal retirement date. Your surviving domestic partner must begin receiving benefits as of the first day of the month after your death. Benefits will be actuarially reduced for early payment. (B) Special Death Benefit 40% of the benefit you would have received if you had left the Company on the day before your death, survived to age 65, and retired with a life annuity. The 40% benefit is reduced by 1% for each year greater than five years that your spouse or domestic partner is younger than you (partial years will be used). Your surviving spouse may begin receiving benefits as early as the first day of any month coinciding with or following your death, but no later than your normal retirement date. Your surviving domestic partner must begin receiving benefits as of the first day of the month after your death. There is no reduction if benefits begin before the date you would have reached age 65. If you were age 65 or older, your surviving spouse or domestic partner will receive the greater of (A) or (B), as described below: (A) Regular Death Benefit 50% of the benefit you would have received if you had left the Company on the day before your death and retired with a joint and 50% survivor annuity. Benefits will begin on the first day of the month coinciding with or following your death. (B) Special Death Benefit 40% of the benefit you would have received if you had left the Company on the day before your death and retired with a life annuity. The 40% benefit is reduced by 1% for each year greater than five years that your spouse or domestic partner is younger than you (partial years will be used). Benefits will begin as of the first day of the month after your death. If You Were Eligible for a Terminated Vested Benefit If on your date of death you were no longer an active employee, but you had completed at least five years of vesting service, your surviving spouse or domestic partner will be eligible for a death benefit based on your final average pay and credited service when you left the Company. When the death benefit will be paid is based on your age and years of vesting service, as described here: If you had completed between 5 and 10 years of vesting service and you were under age 65, your surviving spouse or domestic partner will receive 50% of the benefit you would have received if you had survived to age 65 and retired with a joint and 50% survivor annuity. Your surviving spouse will begin receiving benefits on the first day of the month coinciding with or next following the date you would have reached age 65. Your surviving domestic partner must begin receiving benefits as of the first day of the month after your death. Benefit payments to your surviving domestic partner will be actuarially reduced based on how long benefit payments begin before the date you would have reached age 65. If you had completed at least 10 years of vesting service and you were under age 55, your surviving spouse or domestic partner will receive 50% of the benefit you would have received if you survived to age 65 and retired with a joint and 50% survivor annuity. Your surviving spouse may elect to receive a The Hearst Corporation Retirement Plan SPD (8/12) 15

19 reduced payment beginning as early as the first day of any month coinciding with or following the date you would have reached age 55, but no later than your normal retirement date. Your surviving domestic partner must begin receiving benefits as of the first day of the month after your death. Benefits will be actuarially reduced for early payment. If you had completed at least 10 years of vesting service and you were between the ages of 55 and 65, your surviving spouse or domestic partner will receive 50% of the benefit you would have received if you had survived to age 65, and retired with a joint and 50% survivor annuity. Your surviving spouse may elect to receive a reduced payment beginning as early as the first day of any month coinciding with or following your death, but no later than your normal retirement date. Your surviving domestic partner must begin receiving benefits as of the first day of the month after your death. Benefits will be actuarially reduced for early payment. Lump Sum Payment If the present value of the death benefit is $1,000 or less, your surviving spouse or domestic partner will automatically receive the death benefit as a lump sum payment as soon as practicable after your death. However, if the survivor benefit is valued at more than $1,000 and not more than $5,000, your spouse or domestic partner may elect to receive the benefit in a single lump sum payment. Taxes on Your Benefit Payments In general, you must pay federal income taxes on your retirement benefits. Depending on where you live, you may also need to pay state and local taxes, too. Special tax provisions apply to lump sum distributions of your benefit. This section gives a brief summary of these tax consequences. You may wish to consult a tax advisor to discuss how these rules apply to your individual situation. Please remember that benefits from the Plan are generally paid in the form of a monthly annuity, not a lump sum. If you receive a lump sum distribution of your benefit, federal tax law requires the Plan to withhold 20% of your distribution for federal income taxes. This withholding will be credited to your federal income taxes for the year in which the distribution is made. If you terminate employment before reaching age 55 and you take a lump sum distribution before the calendar year in which you reach age , you will also pay a 10% early distribution penalty tax. To avoid the 20% withholding and the 10% penalty tax, if applicable, and to defer taxes on your lump sum distribution, you may make a direct rollover of all or part of it into an Individual Retirement Account (IRA) (including a Roth IRA as described in Section 408A of the Code) or into another employer s qualified retirement plan, including a 403(b) tax-sheltered annuity or a governmental 457(b) plan. If the distribution is paid directly to you, you can still roll over the distribution, but you must complete the rollover within 60 days. You may make up from your own funds the 20% that was withheld at the time of your distribution. If you roll over less than the total amount of your lump sum distribution, the remaining amount will be taxed as ordinary income for the year in which it was paid. Any taxable amount you roll over into a Roth IRA will be includible in your taxable income at the time it is paid from the Plan; however, mandatory withholding does not apply. If certain conditions are met, withdrawals from a Roth IRA, unlike a regular IRA, may be made tax-free. If your surviving spouse or domestic partner receives a lump sum distribution, he or she can defer taxes by electing a rollover. However, a surviving domestic partner may only elect a rollover to an IRA, and the 20% withholding rule does not apply if your surviving domestic partner does not elect a rollover. The Hearst Corporation Retirement Plan SPD (8/12) 16