Guide to understanding your. Pension Plan

Transcription

1 Guide to understanding your Pension Plan For Associates Who First Became Active Participants On or After July 1, 2010

2 Livonia, Michigan Pension Plan Summary Plan Description For Associates Who First Become Active Participants On or After July 1, 2010* This booklet is a Summary Plan Description (SPD) and summarizes the important information contained in the Trinity Health Pension Plan (Plan). The information contained in this SPD is accurate as of April 1, The provisions of the Plan described in this SPD may be changed from time to time. The most current version of the SPD will always be posted on the Retirement Program website at If you are unable to access the website or to print a copy of the SPD from the website, you may request one from the Trinity Health Retirement Program Office by: Phone at , at noonanla@trinity-health.org, or Regular mail sent to the Trinity Health Retirement Program Office, Victor Parkway, Livonia, Michigan This SPD is not intended to describe every possible situation that could occur, but it does address most situations. If there is a conflict between any of the information in this SPD and the terms of the applicable Plan documents, the Plan documents will govern. The formal Plan documents are the only source upon which you may properly rely to determine your benefits and rights under the Plan. The Plan has changed several times over the years, and may be amended again in the future. Your rights are determined by the Plan in effect at the time you terminate employment or are no longer earning Benefit Service in the Plan. At any time, you may review or obtain a copy of the current Plan documents, or a previous Plan document if relevant to you. To do so, contact the Trinity Health Retirement Program Office at or your local Organization and Talent Effectiveness (OTE)/HR Office representative. Although an OTE/HR Office representative will help you obtain information about the Plan, they cannot

3 make a binding determination as to your rights or benefits under the Plan. Only the Plan Administrator of the Plan has that right. *A different SPD applies to associates who are covered by a collective bargaining agreement and first become active participants on or after July 1, 2010, but before the collective bargaining agreement provides for the cash balance formula. The SPD applicable to these associates is the SPD For Associates Who Are Active Participants Both Before and After July 1, 2010.

4 TABLE OF CONTENTS PAGE UNDERSTANDING THE TRINITY HEALTH RETIREMENT PROGRAM... 1 DEFINITIONS... 2 THE CASH BALANCE ACCOUNT... 8 WHO IS ELIGIBLE TO PARTICIPATE?... 8 HOW DO I ENROLL IN THE PLAN?... 8 HOW IS MY PLAN BENEFIT CALCULATED?... 8 WHEN AM I VESTED? WHEN WILL I BEGIN RECEIVING A BENEFIT? HOW DO I APPLY FOR BENEFITS? HOW WILL MY PLAN BENEFIT BE PAID? WHAT CONDITIONS CAN AFFECT MY PLAN BENEFIT? WHAT HAPPENS TO MY BENEFIT IF I DIE BEFORE I RETIRE? WHAT HAPPENS TO MY BENEFIT IF I DIE AFTER RETIREMENT BEGINS? WHAT IF I AM NOT SATISFIED WITH THE DETERMINATION OF MY PLAN BENEFIT? DOES THE FEDERAL GOVERNMENT INSURE MY PLAN BENEFITS? PLAN LEGAL INFORMATION WHAT HAPPENS TO MY RETIREMENT BENEFITS IN THE EVENT I GET DIVORCED AND PART OF THE SETTLEMENT INCLUDES A QUALIFIED DOMESTIC RELATIONS ORDER (QDRO)? CAN THE PLAN BE AMENDED OR TERMINATED? WHAT IS THE PLAN YEAR? WHAT HAPPENS TO MY BENEFIT IN A MERGER, CONSOLIDATION, OR TRANSFER? IS THERE A MAXIMUM BENEFIT? IMPORTANT PLAN INFORMATION AGENT FOR SERVICE OF PROCESS APPENDIX i

5 Understanding the Trinity Health Retirement Program The Trinity Health Retirement Program consists of several different retirement plans. Employers affiliated with Trinity Health Corporation participate in one or more of the plans in the Retirement Program. This booklet describes only the Trinity Health Pension Plan. The Trinity Health Retirement Program was designed to provide benefits that meet the diverse needs of our workforce. It is a program that gives consideration to associates at all salary levels, supports Trinity Health s mission, values, and key cultural characteristics, and is easy for associates to understand. It is also a very important part of your benefits package. When combined with your personal savings and Social Security, the Trinity Health Retirement Program provides the tools you need for a financially secure retirement. Please contact your local OTE/HR Office or your local Transamerica Retirement Solutions Retirement Plan Specialist for the sources of retirement income that are specific to your location. 1

6 DEFINITIONS The following provides you with definitions of many of the benefit terms used throughout this SPD. These words, when capitalized, have the meaning set forth below. Accrued Benefit The amount credited to your Cash Balance Account as of a particular date. To convert your Cash Balance Account to a monthly benefit, your Cash Balance Account is divided by a factor to determine an equivalent monthly payment. The factor is based on your age and assumptions about future interest rates and your life expectancy as provided by the IRS annually. If you have a LUMCERP Benefit, your Accrued Benefit is the sum of your benefit under the LUMCERP as of December 31, 2012, payable monthly for your lifetime (Life Only Option) beginning at your Normal Retirement Date, and the amount credited to your Cash Balance Account as of a particular date. To convert your Cash Balance Account to a monthly benefit, your Cash Balance Account is divided by a factor, as described above, to determine an equivalent monthly payment. Beneficiary The person who may receive your Plan benefit after your death. Your surviving spouse is your Beneficiary if you are married. For Plan purposes, your spouse is your legally married spouse under applicable federal law or, if there is no applicable federal law, the state law applicable to the administration of the Plan. If you are married, you may select a Beneficiary other than your spouse, but only with the consent of your spouse. If you are married and designate your spouse as your Beneficiary, and your marriage is later terminated, your former spouse will remain your Beneficiary unless and until you change your Beneficiary or, if you remarry, your new spouse will become your Beneficiary (except as otherwise provided in a Qualified Domestic Relations Order). If you are not married, you must select a person or persons to be your Beneficiary. If you are not married and have not designated a Beneficiary, death benefits, if any, will be paid to your estate. You may designate your Beneficiary and change your Beneficiary by using a Beneficiary Designation Form RP-20. You may obtain a Beneficiary Designation Form RP-20 for the Plan from the Retirement Program website at or from the Trinity Health Retirement Program Office at If your surviving spouse or other designated Beneficiary is convicted of a crime of having caused your death (i.e., murder, manslaughter or a similar crime), such Beneficiary shall not be entitled to receive your Plan benefit after your death. Your remaining named Beneficiary(ies) or contingent Beneficiary(ies) (or, if none, your estate) shall receive your Plan benefit after your death. In addition, if your surviving spouse or other designated Beneficiary who would otherwise receive some or all of your Plan benefit after your 2

7 death is charged with a crime of having caused your death, the Beneficiary s share of your Plan benefit shall not be payable until the criminal case is resolved through conviction or acquittal. Benefit Service Used to determine your Points and level of Pay Credits under the Plan. You generally earn Benefit Service based on the Hours of Service you earn in each Plan Year that you are an active associate of an Employer and a participant in the Plan. You receive one year of Benefit Service when you earn 1,800 Hours of Service or more. Partial Benefit Service is granted for Hours of Service worked less than 1,800 as follows: Hours of Service as an Active Participant During Plan Year Benefit Service Granted During Plan Year Less than year year year year year year 1,000-1, year 1,200-1, year 1,400-1, year 1,600-1, year 1,800 or more 1.0 year Your Hours of Service at some participating Employers prior to a specific date may or may not be counted as Benefit Service. Also, special rules apply in determining the past Benefit Service for Points of participants who are associates of certain participating Employers, such as a hospital that was acquired by Trinity Health. For example, if you an employee of the Loyola University Health System, including Loyola University Medical Center, Gottlieb Memorial Hospital and Gottlieb Community Health Services Corporation, who became a participant on January 1, 2013, you began earning Benefit Service for Points on that date. Special rules also apply in determining Benefit Service for Points of certain participants who are covered by a collective bargaining agreement. Please check with the Trinity Health Retirement Program Office at to find out if any special rules apply for purposes of determining your Benefit Service or if you have any questions about your Benefit Service credited under the Plan. Cash Balance Account A bookkeeping account that includes Pay Credits made on and after July 1, 2010 (or the date you become a participant in the Plan, if later), plus interest credits. Employer Trinity Health Corporation is the sponsoring employer of all of the plans in the Trinity Health Retirement Program. The Employers in this Plan include Trinity Health Corporation, each entity that is one of Trinity Health Corporation s Related Employers (unless the Plan Administrator expressly permits such entity not to be a participating Employer in the Plan), and any affiliated organizations of 3

8 Trinity Health Corporation that have elected to participate in the Plan with the consent of the Plan Administrator. A list of the participating Employers may be requested from the Trinity Health Retirement Program Office. Hours of Service Each hour you work and are paid, or entitled to be paid, by a participating Employer. Hours of Service also include other hours you are paid for by your Employer, such as vacations, holidays, sick leave, severance, jury duty, and approved leaves of absence, up to a maximum of 501 hours for any continuous period. You do not earn Hours of Service for time during which you receive workers compensation, unemployment compensation, and medical reimbursement payments or for vacation or paid time off (PTO) payments that are cashed out annually or at termination of employment. For a detailed description of what is considered as Hours of Service, please refer to the Appendix. Your service at some participating Employers prior to a specific date may or may not be counted as Hours of Service for purposes of the Plan. To see if you may have excluded or included service, please contact the Trinity Health Retirement Program Office at LUMCERP The Loyola University Medical Center Employees Retirement Plan that was merged into the Plan effective as of December 31, LUMCERP Benefit A participant s accrued benefit under the LUMCERP, if any. A participant shall not accrue an additional LUMCERP benefit after December 31, 2012, unless the participant is eligible for a Loyola Transition Benefit. A participant is eligible for a Loyola Transition Benefit if the participant was a vested participant in the LUMCERP as of December 31, 2012, was actively accruing benefits under the LUMCERP as of December 31, 2012, and the sum of the participant s age and Benefit Service were at least 60 as of December 31, The Loyola Transition Benefit is an increase in a participant s gross LUMCERP Benefit (which is otherwise frozen as of December 31, 2012), prior to any applicable offset, of 3% per year for each of the 2013 through 2017 Plan Years in which the participant performs at least one Hour of Service. For purposes of eligibility for the Loyola Transition Benefit, Benefit Service is generally equal to a participant s benefit service under the LUMCERP as of December 31, To see if you are eligible for a Loyola Transition Benefit and for additional information regarding the Loyola Transition Benefit, please check the Trinity Advantage Pension Estimator (TAPE) at or contact the Trinity Health Retirement Program Office at

9 Normal Retirement Age Age 65. However, Normal Retirement Age for a LUMCERP Benefit is based on your year of birth as set forth in the table below: Year of Birth Normal Retirement Age 1937 or earlier through or later 67 Normal Retirement Benefit The amount of Accrued Benefit payable beginning at your Normal Retirement Date. Normal Retirement Date The first day of the month on or following the date you reach Normal Retirement Age. Pay Credits The amount credited to your Cash Balance Account for a Plan Year, equal to your Plan Compensation for that Plan Year multiplied by your Pay Credit Percentage for the Plan Year. For 2010, Plan Compensation for this purpose is Plan Compensation for the last half of For example, if you are paid biweekly, it would be Plan Compensation for the 14 th through the 26 th payroll periods. Special rules apply for purposes of determining the Plan Compensation used for the Pay Credit in 2010 of participants who are employed by a participating Employer on July 1, 2010, and were employed by Catholic Health Initiatives (CHI), Holy Rosary Medical Center, Ontario, Oregon, Mercy Medical Center, Nampa, Idaho, St. Elizabeth Health Services, Baker City, Oregon, or any subsidiary entity of Holy Rosary Medical Center, Mercy Medical Center, or St. Elizabeth Health Services for the period from April 1, 2010 to June 30, Please check with the Trinity Health Retirement Program Office at if you have a question about your Plan Compensation and Pay Credit for Pay Credit Percentage Your Pay Credit Percentage is determined from the following table: Points Pay Credit Percentage Less than 45 3% At least 45 but less than 65 5% At least 65 or more 7% For purposes of determining your Pay Credit Percentage: For the period beginning July 1, 2010 and ending December 31, 2010, your Points are determined as of June 30,

10 For Plan Years beginning on and after January 1, 2011, your Points for a Plan Year are determined as of the last day of the prior Plan Year. If you were a vested participant in the Gottlieb Memorial Hospital Employees Pension Plan (Gottlieb Plan) as of December 31, 2012, you were actively accruing benefits under the Gottlieb Plan as of December 31, 2012, and the sum of your age and Benefit Service were at least age 60 as of December 31, 2012, you may be eligible for an adjustment to your Pay Credit Percentage (Gottlieb Transition Benefit) for each of the 2013 through 2017 Plan Years in which you are an active participant in the Plan for any portion of the Plan Year. For purposes of eligibility for the Gottlieb Transition Benefit, Benefit Service is generally equal to a participant s benefit service under the Gottlieb Plan as of December 31, To see if you are eligible for a Gottlieb Transition Benefit and for additional information regarding the Gottlieb Transition Benefit, please contact the Trinity Health Retirement Program Office at Plan The Trinity Health Pension Plan. Plan Compensation Plan Compensation generally means your W-2 wages for a year plus your 403(b) or 401(k) elective contributions and any contributions you make to your Employer s flexible benefit plan that year less any severance pay, cashouts of paid time off, and other special payments that year. For a detailed description of what is considered as Plan Compensation, please refer to the Appendix. The Plan Compensation used for determining benefits in the Plan is limited by the federal government. The annual limit is $255,000 for 2013 and may be adjusted for inflation in future years. This limit is referred to as the Compensation Limitation. The Plan Compensation used for determining the Pay Credit to your Cash Balance Account for the Plan Year ending December 31, 2010, if any, was determined beginning with the first payroll that was paid on or after July 1, 2010 (or, if different, the fourteenth payroll of 2010 for bi-weekly payroll periods, the seventh payroll of 2010 for monthly payroll periods, and the thirteenth payroll of 2010 for semi-monthly payroll periods) and ending with the last payroll that was paid on or before December 31, 2010 and was limited to ½ of the Compensation Limitation in effect for the 2010 Plan Year (i.e., $122,500). Plan Year Same as the calendar year, January 1 December 31. Points The sum of your age (in years and completed months calculated to 4 decimal places) and Benefit Service. Related Employer A group of corporations, trades or businesses (whether or not incorporated) which are under common control, or an affiliated service group. For this purpose, there are rules under the Code for determining whether there is common control or whether two or more entities are an affiliated service group. If an Employer is a member of a group of Related Employers, the term Employer includes the Related Employers for several Plan purposes including crediting Hours of Service and 6

11 determining years of Vesting Service. However, only an Employer may make contributions to the Plan, and only an associate employed by an Employer is eligible to participate in this Plan. Trinity Health As used in this SPD, Trinity Health refers not only to Trinity Health Corporation, but also to all entities that are Related Employers of Trinity Health Corporation, whether or not they are participating Employers, as well as all other entities that are participating Employers in the Plan and their Related Employers, whether or not they are participating Employers. Trinity Health Retirement Program The Trinity Health Retirement Program consists of the Trinity Health Pension Plan, the Trinity Health 401(k) Retirement Savings Plan, and the Trinity Health 403(b) Retirement Savings Plan. Vesting Service Determines your eligibility to receive your Plan benefit upon your termination from employment with Trinity Health (i.e., your termination from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers). You earn one year of Vesting Service for working at least 1,000 Hours of Service in a Plan Year. You will not earn any Vesting Service for any Plan Year in which you earn less than 1,000 Hours of Service. Service at some participating Employers prior to a specific date may or may not be counted for Vesting Service. Also, special rules apply in determining the Vesting Service of participants who are associates of certain participating Employers, such as a hospital that was acquired by Trinity Health. To see if you may have excluded or included service, please contact the Trinity Health Retirement Program Office at

12 WHO IS ELIGIBLE TO PARTICIPATE? The Cash Balance Account All active associates of a participating Employer are covered by the Plan beginning on their date of hire or the date that their employer becomes a participating Employer, if later, except: associates covered by a collective bargaining agreement that does not provide for participation in the Plan; religious members of the Sisters of the Holy Cross, the Sisters of Mercy Regional Community of Detroit or the Society of Jesus; individuals employed by St. Mary Mercy Hospital who are members of the Sisters of St. Felix, Presentation of the Blessed Virgin Mary Province, Livonia, Michigan, commonly known as the Felician Sisters, O.S.F; and leased employees or independent contractors. HOW DO I ENROLL IN THE PLAN? There is no enrollment procedure. Once you are an eligible active associate of a participating Employer, you are automatically covered by the Plan on your date of hire (or the date that your employer becomes a participating Employer, if later). However, religious personnel must make an irrevocable election to participate in the Plan at the time of their hire. Note: You may not be able to make a deductible contribution to an individual retirement account ( IRA ) while you are an active associate participating in the Plan. HOW IS MY PLAN BENEFIT CALCULATED? Although the Plan is a defined benefit plan, the benefit you earn under the Plan is based on the Pay Credits and interest credits to your Cash Balance Account unless you are covered by a collective bargaining agreement that does not provide for a modified benefit formula. If you have a LUMCERP Benefit, your Plan benefit has two components: (i) a monthly LUMCERP Benefit, and (ii) the benefit accumulated in your Cash Balance Account. Your Cash Balance Account is equal to the sum of the Pay Credits and interest credits made to the account. 8

13 Pay Credits Beginning July 1, 2010, for each Plan Year in which you are a participant who is employed by a participating Employer, a Pay Credit will be made to your Cash Balance Account as of the last day of the Plan Year in an amount equal to your Plan Compensation for that Plan Year multiplied by your Pay Credit Percentage for that Plan Year. However, if your employment with the Employer terminates during a Plan Year, a Pay Credit will be made to your Cash Balance Account as soon as administratively practicable after your employment terminates in an amount equal to your Pay Credit Percentage for that Plan Year multiplied by your Plan Compensation for the Plan Year up to the date of your termination. For purposes of determining the Pay Credit to your Cash Balance Account for the period beginning July 1, 2010 and ending December 31, 2010, if any: Your Points were determined based on your Benefit Service and age as of June 30, For purposes of computing your Benefit Service through June 30, 2010, your Hours of Service were determined as of the last payroll that was paid prior to July 1, 2010 (or, if different, through the thirteenth payroll of 2010 for bi-weekly payroll periods, the sixth payroll of 2010 for monthly payroll periods and the twelfth payroll of 2010 for semi-monthly payroll periods). Your Plan Compensation shall be determined beginning with the first payroll that was paid on or after July 1, 2010 (or, if different, the fourteenth payroll of 2010 for bi-weekly payroll periods, the seventh payroll of 2010 for monthly payroll periods, and the thirteenth payroll of 2010 for semi-monthly payroll periods) and ending with the last payroll that was paid on or before December 31, 2010 and was limited to ½ of the Compensation Limitation in effect for the 2010 Plan Year (i.e., $122,500). For purposes of determining the Pay Credit to your Cash Balance Account for a Plan Year beginning on or after January 1, 2011: Your Points are determined based on your Benefit Service and age as of December 31 of the prior Plan Year. For purposes of computing your Benefit Service through December 31 of a given Plan Year, your Hours of Service shall be determined beginning with the first payroll that is paid on or after January 1 of the Plan Year and ending with the last payroll that is paid on or before December 31 of the Plan Year. Your Plan Compensation shall be determined beginning with the first payroll that is paid on or after January 1 of the Plan Year and ending with the last payroll that is paid on or before December 31 of the Plan Year and is limited to the Compensation Limitation for the Plan Year. If you are entitled to Plan Compensation under the Employer s At Risk Compensation ( ARC ) program in the Plan Year in which your employment with the Employer terminates, and your employment terminates before the date the ARC is paid, for purposes of determining your Pay Credit for the Plan Year in which your employment terminates, the ARC is added to your Plan Compensation and the Pay Credit 9

14 will be made to your Cash Balance Account as soon as administratively feasible after the date the ARC is paid. Pay Credit Calculation Example: Assume Robert earns $40,000 during the 2012 Plan Year. As of December 31, 2011, his age was 43 years and 6 months (or 43.5 as a decimal age), and has.6 years of Benefit Service. Robert s Points for the 2012 Plan Year equal This is calculated by adding his age plus years of Benefit Service as of December 31, 2011: ( = 44.1). Because Robert has 44.1 Points, his Pay Credit Percentage for 2012 is 3%. The Pay Credit to Robert s Cash Balance Account for 2012 is $1,200 (3% x $40,000). At the end of 2012, Robert has $1,200 in his Cash Balance Account. In 2013, assume Robert s Plan Compensation has increased to $41,000. As of December 31, 2012, Robert has earned 1 more year of Benefit Service and he is 1 year older. Therefore, Robert has 46.1 Points as of December 31, 2012 ( = 46.1). Because Robert has 46.1 Points, his Pay Credit Percentage for 2013 is 5%. The Pay Credit to Robert s Cash Balance Account for 2013 is $2,050 (5% x $41,000). Interest Credits Your Cash Balance Account will be credited with interest. Effective January 1, 2011, interest credits will be reported annually, calculated according to the formula below, and the applicable interest rate will be determined by December 31 of the prior Plan Year based on rates and guidance published by the IRS. Interest Credits for a Plan Year equal: Your Cash Balance Account as of the end of the previous Plan Year Multiplied by The applicable interest rate Interest Credit Calculation Example: Assuming the same facts as in the example above: Interest credits, at a stated rate, would be added to Robert s Cash Account Balance as of December 31, Let s assume the interest rate is 4.5%. Because Robert s Cash Balance 10

15 Account as of December 31, 2012 is $1,200, $54 in interest credits will be made to Robert s Cash Balance Account for 2013 ($1,200 x 4.5% = $54). As of December 31, 2013, Robert has $3,304 in his Cash Balance Account ($1, $2,050 = $3,304). Assume the interest rate is still 4.5% for The interest credit to Robert s Cash Balance Account for 2014 will be $ ($3,304 x 4.5%). Prior to January 1, 2011, the applicable interest rate was equal to the five-year U.S. Treasury Constant Maturity rate for September of the preceding Plan Year. If you terminate employment with Trinity Health prior to the end of the Plan Year and are eligible for a distribution of your Cash Balance Account, you will receive interest credits for a partial year to your distribution date. Interest Credits for a Partial Year equal: Your Cash Balance Account as of the end of the previous Plan Year Multiplied by the applicable interest rate multiplied by (the number of months from January 1 to the distribution date divided by 12) Interest Credit Calculation Example: Let s assume Mary had a Cash Balance Account balance of $1,000 at the end of the previous Plan Year and the interest rate is 4.5%. She terminates employment and is vested in her Cash Balance Account. Her distribution date is April 1. The interest credit on Mary s Cash Balance Account is calculated as follows: Interest Credit Calculation to the Distribution Date: Interest Credit Formula Amount Mary s Cash Balance Account balance as of the end of the previous $1,000 Plan Year Multiplied by X The applicable interest rate.045 Multiplied by X 3 months divided by 12 = TOTAL INTEREST CREDIT TO THE APRIL 1 DISTRIBUTION DATE $

16 If Mary decided not to take a distribution of her Cash Balance Account, she would earn an interest credit for the entire year as illustrated below. Keep in mind that she would also earn a Pay Credit based on her Plan Compensation for the partial year up to her termination date. Interest Credit Calculation at the End of the Year: Interest Credit Formula Amount Mary s Cash Balance Account balance as of the end of the previous $1,000 Plan Year Multiplied by X The applicable interest rate.045 TOTAL INTEREST CREDIT $45 YEAR-TO-DATE In the example shown above, Mary s interest credit on her Cash Balance Account at the end of the year will be $ WHEN AM I VESTED? When you are vested, the Plan benefit you have earned cannot be lost. You are vested in your Plan benefit (i.e., the Pay Credits to your Cash Balance Account, interest credits with respect to those Pay Credits and your LUMCERP Benefit, if any) when you complete five years of Vesting Service or attain age 65 while still actively working at a Trinity Health institution, whichever occurs first. WHEN WILL I BEGIN RECEIVING A BENEFIT? Normal Retirement Benefit You are eligible to receive a monthly benefit payable for your lifetime beginning on the first day of any month following the date your reach age 65, regardless of your continued employment with Trinity Health or another employer. The amount of the monthly benefit payments will be equal to the value of your Cash Balance Account converted to a monthly benefit, provided you don t take the Cash Balance Account as a lump sum, plus your LUMCERP Benefit, if applicable. However, if you begin receiving payment of your LUMCERP Benefit, if any, before your Normal Retirement Date, your LUMCERP Benefit is reduced for early commencement of benefits as described under Early Retirement Benefit, below. If you start to receive monthly benefit payments beginning after you reach age 65 and while continuing your employment at Trinity Health, after the end of each year you will receive any amounts credited to your Cash Balance Account in the prior year -- either paid as a lump sum or converted into the form of the monthly payments you are receiving. How your additional Cash Balance Account credits are paid is 12

17 based on a one-time, irrevocable election you make at the same time you elect to start your monthly benefit payments. In addition, your monthly benefit payments will be recalculated after the end of each year to take into account any Loyola Transition Benefit you may have earned, offset by the value of monthly payments you have received. Your monthly payments will not be adjusted to be less than the monthly payments you were receiving prior to the recalculation, plus the value of your Cash Balance Account earned since that time if you elected to have any additional Cash Balance Account credits converted to an annuity and added to your monthly payments. If you fail to make a timely election as to how you want any additional amounts credited to your Cash Balance Account to be paid, any additional amounts credited to your Cash Balance Account following your reemployment will be paid in the same form you elected to receive your Cash Balance Account. If you have not previously elected to receive payment of your Cash Balance Account, any additional amounts credited to your Cash Balance Account will be converted to an annuity and added to the monthly benefit payments you are receiving. If you elect to receive your entire benefit in the form of a lump sum, any additional amounts credited to your Cash Balance Account will be paid to you as a lump sum each year. If you have a LUMCERP Benefit, you will only be able to elect to receive your entire benefit in the form of a lump sum if the present value of your LUMCERP Benefit is $10,000 or less. Late Retirement Benefit You may continue working past age 65 and continue to earn Benefit Service and be eligible to receive credits to your Cash Balance Account. Benefit payments can begin the first day of the month after you apply for benefits. Your late retirement benefit is determined in the same manner as your Normal Retirement Benefit, but is based upon your Cash Balance Account at that time, plus your LUMCERP Benefit, if applicable. Keep in mind that, if you begin receiving payment of your LUMCERP Benefit, if any, before your Normal Retirement Date, your LUMCERP Benefit is reduced for early commencement of benefits as described under Early Retirement Benefit, below. If you are working for Trinity Health and you delay starting your benefit beyond age 70½, there will be an increase applied to your LUMCERP Benefit, if any, as of the end of the year you turn age 70½, to account for the lost value of the payments you could have received beginning April 1 of the following year. You will continue to be eligible to receive credits to your Cash Balance Account regardless of your age. 13

18 Early Retirement Benefit You are eligible to elect a monthly early retirement benefit as early as age 55 if you have completed at least five years of Vesting Service and have terminated employment with Trinity Health (i.e., after your termination from employment with your Employer and all of your Employer s Related Employers, whether or not they are participating Employers, and all other participating Employers and their Related Employers, whether or not they are participating in the Plan). Once you have met this requirement, you may elect to receive your early retirement benefit starting on the first day of any month following your termination of employment with Trinity Health. Your early retirement benefit is determined in the same manner as your Normal Retirement Benefit, but is based on your Cash Balance Account and LUMCERP Benefit, if any, at the time benefits begin. Your LUMCERP Benefit is reduced as provided below for the early commencement of benefits. If you begin receiving your Plan benefit before your Normal Retirement Date, your LUMCERP Benefit is permanently reduced based on the early retirement reduction factor set forth in the table below that is applicable to you based on your age when you start receiving your LUMCERP Benefit and your Normal Retirement Age ( NRA ): Age Born Before 1938 (NRA = 65) Born Between (NRA = 66) Born After 1954 (NRA = 67) *The factors set forth in the table above are adjusted for partial ages based on complete months of age. 14

19 Early Retirement Benefit Example: Terry elects an early retirement benefit starting at age 61. Terry s NRA is 67. Assume that the value of his Cash Balance Account converted to a benefit payable at age 61 for his lifetime is $200 per month. Assume that his Life Only LUMCERP Benefit payable at his Normal Retirement Date is $100 per month. To estimate his early retirement benefit, take his $100 Life Only LUMCERP Benefit and multiply it by 64% (from the table above) or.640 ($100 x.640 = $64) and add the converted value of Terry s Cash Balance Account. Therefore, Terry s estimated monthly early retirement benefit is $264 payable for his lifetime. If you retire early and wish to come back to work for Trinity Health (including Trinity Health Corporation or any Related Employer, even if such entity is not a participating Employer in the Plan) there may be restrictions on the payment of your benefit. Please refer to the What Conditions Can Affect My Plan Benefit? section of this SPD. Disability Retirement Benefit You may be eligible for a disability retirement benefit at any age as long as you have five years of Vesting Service and you stopped working at Trinity Health (i.e., you terminated from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers) because of your total and permanent disability. You must receive Social Security disability benefits in order to be considered totally and permanently disabled. The Benefits Committee has the right to determine independently if you are totally and permanently disabled, even if you have been awarded Social Security disability benefits. If approved by the Benefits Committee, benefits begin as of the first of the month following your last day of Benefit Service. You will receive a benefit equal to your monthly LUMCERP Benefit, if any, plus your Cash Balance Account taken as a lump sum or converted to a monthly amount at the time benefits begin. Your LUMCERP Benefit is reduced for early commencement if the payment begins prior to your Normal Retirement Date. Generally, monthly disability benefits are payable only while you continue to be totally and permanently disabled. You may be required to provide evidence that you continue to be totally and permanently disabled in order to continue to receive monthly disability benefits. However, if you recover from a total and permanent disability on or after your Normal Retirement Date, you will continue to receive monthly 15

20 benefit payments under the Plan and there shall be no change in the monthly benefit payments you receive under the Plan. If you are awaiting determination of total and permanent disability and you are otherwise eligible, you may apply for an early retirement benefit from the Plan. If it is then later determined that you are totally and permanently disabled, you may elect to receive a disability retirement benefit if it is more beneficial to you. Deferred Vested Benefit If you have five years of Vesting Service and your termination of employment with Trinity Health (i.e., your termination from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers) occurs before you are old enough to receive an early retirement benefit, you will be eligible for a deferred benefit from the Plan commencing any time after age 55. If you begin receiving a monthly retirement benefit prior to your Normal Retirement Date, it is calculated in the same manner as your early retirement benefit, but cannot begin until you attain at least age 55 (and then on a reduced basis with respect to your LUMCERP Benefit, if any). You may be eligible for an immediate lump sum distribution of your vested benefit upon termination of all employment with Trinity Health, which will be described later. If you defer your vested benefit and are rehired later, you will receive Benefit Service and Vesting Service for the time you worked before you left employment and all service after you are rehired. HOW DO I APPLY FOR BENEFITS? When your employment with Trinity Health terminates (i.e., you terminate from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers), the Trinity Health Retirement Program Office must receive your final Plan Compensation and the last day that you physically worked for the Employer through a payroll feed. In general, it takes one to two pay cycles, or approximately one month, for the Trinity Health Retirement Program Office to receive this information. Once it has received this information, the Trinity Health Retirement Program Office will mail information regarding your Plan benefit to you at your address on file with the Trinity Health Retirement Program Office. If you are eligible to begin receiving your benefit at that time, the appropriate election forms and a benefit calculation will be mailed to your address on file with the Trinity Health Retirement Program Office. If you are not eligible for your Plan benefit when your employment terminates (for example, you do not have a Cash Balance Account and you are not eligible for an early retirement benefit) or you choose to delay receipt of your benefit, it is 16

21 up to you to contact the Trinity Health Retirement Program Office at to apply for your benefit. The Trinity Health Retirement Program Office will then mail you the appropriate election forms and a benefit calculation to you at your address on file with the Trinity Health Retirement Program Office. If your employment has terminated and you have not already elected to begin receiving your Plan benefit, shortly before you turn age 65 the Trinity Health Retirement Program Office will again mail information regarding your Plan benefit and the appropriate election forms and a benefit calculation to your address on file with the Trinity Health Retirement Program Office. If your employment has not terminated, during the month in which you turn age 65 the Trinity Health Retirement Program Office will mail information regarding your Plan benefit and the appropriate election forms and a benefit calculation to your address on file with the Trinity Health Retirement Program Office. If you, your spouse, or your Beneficiary think you are eligible for disability or death benefits, it is up to you, your spouse, or your Beneficiary to contact the Trinity Health Retirement Program Office at to request your Plan benefit. It is ultimately your responsibility to apply for your own benefit. If you do not apply for your Plan benefit in a timely manner, the Plan will not pay your benefit retroactively. To receive payment of your Plan benefit, you must either: (1) Mail the original, completed signed and dated election forms and any required supporting documentation to the Trinity Health Retirement Program Office at: Trinity Health Retirement Program Office Victor Parkway Livonia, Michigan OR- (2) Fax the signed and dated election forms and any supporting documentation to the Trinity Health Retirement Program Office at You must submit the completed election forms to the Trinity Health Retirement Program Office as soon as possible after you receive the forms, but no more than 90 days before the date you want payments to begin. Also, you must furnish any required information such as proof of your age and your spouse s age, a complete copy of any divorce documents, and your spouse's death certificate, if applicable, to the Trinity Health Retirement Program Office along with the election forms. If the Trinity Health Retirement 17

22 Program Office does not receive your completed election forms and additional required information within 90 days of the print date on the top of Form #1 in Your Personalized Pension Benefit Forms Packet, your entire benefit will have to be recalculated with a new benefit commencement date. You will need to make a new written request to the Trinity Health Retirement Program Office (at the address above) to receive your Plan benefit. Your benefit payment amount will then be recalculated and the Trinity Health Retirement Program Office will send you new election forms and a new benefit calculation. In order to receive payment of your benefit, you must submit the new election forms and any additional required information within 90 days of the print date on the top of Form #1 in Your Personalized Pension Benefit Forms Packet or your entire benefit will have to be recalculated again. It is important to submit your forms on time if you want your benefit to start as soon as possible. Please note that the Plan will not pay benefits retroactively. Failure to submit your election forms and any additional required information within the timeframe indicated on Form #1 will result in a new benefit calculation with a new benefit commencement date. Notwithstanding the above, you must begin receiving your retirement benefit by the April 1 of the year after the calendar year in which your employment with Trinity Health terminates or you reach age 70½, whichever is later. HOW WILL MY PLAN BENEFIT BE PAID? Generally, you may elect to have your Plan benefit paid in any of the ways shown below. Your monthly payments under a monthly payment option that provides for continued benefits to a beneficiary after your death are less than the monthly payments you would receive under the Life Only Option in order to provide for benefits payable over a longer expected timeframe. Major exceptions: If you are married and the present value of your LUMCERP Benefit, if any, is more than $10,000, you will receive your LUMCERP Benefit in the form of a Joint and Survivor Option with your spouse as the Beneficiary, unless she or he consents, in writing, to a different election. If you elect to receive your Cash Balance Account in the form of an annuity and you elect to receive your LUMCERP Benefit, if any, in the form of an annuity, your Cash Balance Account and LUMCERP Benefit must be paid in the same annuity form of payment commencing on the same date. You may elect to receive your Cash Balance Account and defer distribution of your LUMCERP Benefit (until the April 1 of the year after the calendar year in which your employment with Trinity Health terminates or you reach age 70½, whichever is later); you may not elect to receive your LUMCERP Benefit and defer distribution of your Cash Balance Account. 18

23 Disability retirement benefits will be paid only as a Life Only Option, 50% Joint and Survivor Option (if you are married), or Lump Sum Option (subject to lump sum rules). Life Only Option Monthly benefits continue only during your lifetime. Upon your death, all benefits stop. There is no Beneficiary. All of the prior examples assume that benefits will be paid in the Life Only Option form. The Life Only Option is the normal payment form and all other options are actuarially equivalent in amount. However, because benefits are potentially payable to more than one person under the other options, the monthly amounts are lower based on factors set forth in the Plan. Ten Years Certain And Life Option Under this optional form of benefit, monthly payments reduced from your Life Only Option benefit will be paid to you for your life, but if you die before 10 years (or 120 months) of monthly payments have been paid, payments will be continued to your designated Beneficiary until the remainder of the 120 monthly payments have been made. Joint And Survivor Option Reduced monthly benefit payments are made for your life. Upon your death, monthly payments will continue to your Beneficiary, if surviving, for the rest of his or her life equal to 50% or 100% of the benefit you were receiving prior to your death. When you retire, you elect the percent of your benefit your Beneficiary will receive if you die first. You may not be able to elect a 100% survivor annuity if your Beneficiary is not your spouse and is more than 10 years younger than you. Once payments begin, no other Beneficiary can be designated, even if your named Beneficiary predeceases you or your marriage is terminated. Joint and Survivor Option benefits are reduced based on the percent of the Survivor Annuity and the age of your Beneficiary, meaning that, generally, the younger your Beneficiary, the smaller your benefit. Your Joint and Survivor Option benefit will never be greater than your Life Only Option benefit. Joint And Survivor Option Example: At her Normal Retirement Date, Barb s Life Only benefit is $500 per month. Her husband is three years younger than she. Barb s benefit is calculated by reducing her benefit by 5% plus an additional 1½% for the three years her husband is younger than she, for a total of 6½%. As such, her benefit, payable as a 50% Joint and Survivor benefit, is equal to 93.5% of the Life Only benefit. Therefore, during her lifetime she will receive $ per month and if her husband survives her, he will receive one-half of this 19

24 amount, or $ per month, for the rest of his life. If she had elected the 100% Joint and Survivor option, the reduction would have been greater. Lump Sum Option Regardless of the amount, you may elect to receive your Cash Balance Account in the form of a single lump sum payment. You may make this election at any time after your Normal Retirement Date or termination of employment from Trinity Health (i.e., your termination from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers) and prior to the start of monthly benefits. This is the only payment option available to you if the value of your total Plan benefit is $5,000 or less at the time of payment. However, your Plan benefit will not be distributed prior to your election except that you must begin receiving your Plan benefit by the April 1 of the year after the later of the year in which your employment with Trinity Health terminates or the year in which you reach age 70½. LUMCERP Benefit. If the present value of your LUMCERP Benefit, if any, is not more than $10,000, you may elect to have it paid to you in a single lump sum at any time after you reach age 65 or termination of employment from Trinity Health (i.e., your termination from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers) and prior to the start of monthly benefits. If the value of your LUMCERP Benefit exceeds $10,000, the Lump Sum Option is not available for your LUMCERP Benefit. If you are married, and your total lump sum payment exceeds $10,000, your spouse must consent in writing to your election of a lump sum (Form #3 in Your Personalized Pension Benefit Forms Packet, Section 2 Spousal Consent and Waiver). Your spouse s consent must be notarized or witnessed by a representative of the Trinity Health Retirement Program Office. Lump sum payments can be made in the form of a direct rollover to another employer s qualified retirement plan, 403(b) plan or certain governmental 457(b) plans (if the plan you select accepts rollovers), your account in the Trinity Health 403(b) Retirement Savings Plan or Trinity Health 401(k) Retirement Savings Plan, if any, or to an IRA (including a Roth IRA). If you elect to receive a lump sum distribution of your entire Plan benefit after you have reached age 65 and your employment with the Employer has terminated and you are later reemployed by the Employer, any additional amounts credited to your Cash Balance Account will be paid as a lump sum each year. If you elect to start receiving monthly benefit payments beginning after you have reached age 65 and your employment with the Employer has terminated, you must also make a one-time election as to whether you want to receive any additional amounts credited to your Cash Balance Account, if you are later reemployed by the Employer, paid as a lump sum each year or whether you want any additional Cash 20

25 Balance Account credits converted to an annuity and added to your monthly payments. Your election is irrevocable after your properly completed election is filed with the Trinity Health Retirement Program Office. If you fail to make a timely election as to how you want any additional amounts credited to your Cash Balance Account to be paid, any additional amounts credited to your Cash Balance Account following your reemployment will be paid in the same form you elected to receive your Cash Balance Account. If you have not previously elected to receive payment of your Cash Balance Account, any additional amounts credited to your Cash Balance Account will be converted to an annuity and added to the monthly benefit payments you are receiving. WHAT CONDITIONS CAN AFFECT MY PLAN BENEFIT? What Happens To My Plan Benefit If I Transfer? If you transfer from one participating Employer to another and you remain an eligible associate, you keep your Benefit Service, Vesting Service, and Plan Compensation earned before the transfer and continue earning Benefit Service, Vesting Service, and Plan Compensation after the transfer without interruption. If you transfer from a participating Employer to a non-participating employer that is a Related Employer of a participating Employer, you will no longer earn Benefit Service and your Plan Compensation will no longer be taken into account for purposes of determining your Plan benefit. However, you will continue to earn Vesting Service. What Happens To My Plan Benefit If I Am On Military Duty? If you are on military duty and return to employment within the prescribed period of time, you will earn Benefit Service and Vesting Service for the period while you were on military duty based on your work week immediately preceding the absence. Plan Compensation will be based on the Plan Compensation you would have received if you were not on military duty. If this amount is not reasonably certain, Plan Compensation will be based on the average rate of Plan Compensation you received from Trinity Health during the twelve month period immediately before your military duty began (or, if you were employed by Trinity Health for less than twelve months immediately before your military duty began, the average rate of Plan Compensation you received from Trinity Health during that period of employment). Upon your timely return from military duty to employment with a participating Employer, you may be entitled to contribute make up contributions to your account, if any, in the Trinity Health 403(b) Retirement Savings Plan or Trinity Health 401(k) Retirement Savings Plan. Contact your local OTE/HR representative to report your military hours for pension purposes. 21

26 What If I Terminate Prior To Five Years Of Vesting Service? Unless your employment terminates on or after your 65th birthday, you will not be entitled to the Pay Credits made to your Cash Balance Account (including interest credits on the Pay Credits) or your LUMCERP Benefit, if any, unless you have five years of Vesting Service. If you terminate employment but do not have a vested Plan benefit and you are later hired by a participating Employer, your years of Benefit Service and Vesting Service as of your last termination date will be retained. What Happens To My Benefit If I Return To Work After Retirement? Once you begin receiving a monthly benefit from this Plan, regardless of your age, you can continue receiving your benefit while working for an employer other than Trinity Health. However, if you wish to continue employment with Trinity Health, there are different rules depending on your age. Under age 65 If you are under age 65, there must be a bona fide termination of your employment with Trinity Health for you to begin receiving monthly payments of your Accrued Benefit. This means that you must terminate from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers. A bona fide termination occurs when you are off the payroll system of Trinity Health for at least 120 consecutive regularly scheduled work days (based on your work schedule at the time you terminate employment), there is no understanding that you will be subsequently reemployed, and you meet other conditions. For this purpose, you are considered to be off of the payroll system of Trinity Health on the day after the last day covered by the payroll period for which you receive your last payment of wages, severance, accrued vacation or paid time off (PTO), as applicable. So, if you are paid accumulated PTO after your last day worked, you will not be off the payroll until all those payments are complete. For administrative simplicity, the last day covered by that payroll cycle will be considered your last day worked. In addition, if your accrued vacation, severance pay and/or PTO is paid as a lump sum when your employment terminates, it will extend the 120-day period. You will be considered to have worked extra days equal to the amount of the lump sum payments divided by your rate of pay to determine how many additional days of pay you have received. This number of days will be added to the last day covered by the payroll cycle in which you receive your last payment to determine the date considered to be your last day worked. If you come back to work, it must then be more than 120 consecutive regularly scheduled work days (based on your work schedule at the time you terminate employment) after the date determined to be the last day 22

27 worked under these rules. Again for administrative simplicity, the date you return to work will be considered to be the last day covered by the first payroll cycle for which you receive a payment. These rules are strictly enforced. If you have a bona fide termination of your employment with Trinity Health and are again employed by Trinity Health, any other participating Employer or any Related Employers, whether or not they are participating Employers, prior to age 65, you are limited to earning no more than 1,299 Hours of Service per calendar year. If you earn 1,300 or more Hours of Service in a calendar year, the monthly payment of your benefit will be immediately suspended on the first day of the month coinciding with or following the date you earn 1,300 Hours of Service until you reach age 65 or terminate your employment regardless of whether you work less than 1,300 hours in a subsequent Plan Year. No Suspension of Monthly Payments If the monthly payment of your benefit is not suspended under the conditions set forth above, after the end of each year you will receive any amounts credited to your Cash Balance Account in the prior year -- either paid as a lump sum or converted into the form of the monthly payments you are receiving based on your one-time election. Your monthly payments will not be adjusted to be less than the monthly payments you were receiving prior to your reemployment or last date of recalculation, plus the value of your Cash Balance Account earned since that time if you elected to have any additional Cash Balance Account credits converted to an annuity and added to your monthly payments. 1 If you are reemployed before you reach age 65 and you are receiving monthly benefit payments that are not suspended, you will have a one-time opportunity to elect whether additional amounts credited to your Cash Balance Account will be paid in the form of a lump sum or converted to an annuity and added to your monthly benefit payments. Unless your monthly benefit payments are suspended (because you earn 1,300 or more Hours of Service in a calendar year), your election will be irrevocable after your properly completed election is filed with the Trinity Health Retirement Program Office. If you fail to make an election prior to the January 1 following your reemployment, any additional amounts credited to your Cash Balance Account following your reemployment, for years in which monthly benefits are not suspended, will be paid in the same form you elected to receive your Cash Balance Account. If you have not previously elected to receive payment of your Cash Balance Account, any additional amounts credited 1 If you have a LUMCERP Benefit, your payments will also be adjusted for the commencement of benefits before your Normal Retirement Date. In addition, if you are eligible for a Loyola Transition Benefit, your LUMCERP Benefit will be recalculated to take into account any Loyola Transition Benefit you have earned. Your recalculated LUMCERP Benefit is offset by the value of the accumulated monthly benefit payments you have received. 23

28 to your Cash Balance Account will be converted to an annuity and added to the monthly benefit payments you are receiving. If payment of your Plan benefit is not suspended following your reemployment, then you cannot elect a new form of benefit payment or designate a new Beneficiary or contingent annuitant (even if your spouse or other designated Beneficiary or contingent annuitant is no longer living, unless your Plan benefit is being paid in the form of the Ten Year Certain and Life Option) when you terminate employment or reach age 65. Suspension of Monthly Payments If the payment of your monthly benefit is suspended under the conditions set forth above, you also will no longer receive annual distributions of your Cash Balance Account. At the time your employment with Trinity Health terminates (i.e., you must terminate from employment with all participating Employers and all of the participating Employers Related Employers, whether or not they are participating Employers) or you reach age 65, your benefit will be recalculated to take into account any additional amounts credited to your Cash Balance Account. 2 If the payment of your monthly benefit was suspended during your period of reemployment, you will be able to elect a new form of monthly benefit payment only when you are eligible to start your benefit again and if you have earned an additional benefit. If you are entitled to elect a new form of monthly benefit payment but you do not elect a new form of monthly benefit payment for any reason, your prior election, including your designated Beneficiary or contingent annuitant, shall continue. If you elect to recommence the monthly payment of your benefit after you reach age 65, your new election will include a one-time election as to whether all additional amounts credited to your Cash Balance Account after payment of your benefit recommences will be paid in the form of a lump sum or added to your monthly benefit payments. This election will be irrevocable after your properly completed election is filed with the Trinity Health Retirement Program Office. If you fail to timely make this onetime election, any additional amounts credited to your Cash Balance Account will be paid in the same form in which you elect or previously elected to receive payment of your Cash Balance Account. If you do not elect and did not previously elect to receive payment of your Cash Balance Account, any 2 In addition, if you are eligible for a Loyola Transition Benefit, at the time your employment with Trinity Health terminates or you reach age 65, your LUMCERP Benefit will be recalculated to take into account any Loyola Transition Benefit you have earned. Your recalculated LUMCERP Benefit is offset by the value of the accumulated monthly benefit payments you have received. 24

29 additional amounts credited to your Cash Balance Account will be converted to an annuity and added to the monthly benefit payments you are receiving If you elect to receive your entire benefit in the form of a lump sum after you reach age 65, any additional amounts credited to your Cash Balance Account will be paid to you as a lump sum each year. If you have a LUMCERP Benefit, you will only be able to elect to receive your entire benefit in the form of a lump sum if the present value of your LUMCERP Benefit is $10,000 or less. Over age 65 If you are over the age of 65, you may begin to receive your benefit regardless of your continued employment with Trinity Health. Based on your election, your benefit may start any time after your 65th birthday. There are no restrictions on the number of hours you can work, nor are you required to first terminate employment. If you continue to work for a participating Employer or you are reemployed by a participating Employer, after the end of each year you will receive any amounts credited to your Cash Balance Account in the prior year -- either paid as a lump sum or converted into the form of the monthly payments you are receiving based on your one-time election. 3 Your monthly payments will not be adjusted to be less than the monthly payments you were receiving prior to your reemployment or last date of recalculation, plus the value of your Cash Balance Account earned since that time if you elected to have any additional Cash Balance Account credits converted into the form of the monthly payments you are receiving. If you were not age 65 at the time you began receiving monthly benefit payments and you are reemployed after you reach age 65, following your reemployment, you will have a one-time opportunity to elect whether additional amounts credited to your Cash Balance Account will be paid in the form of a lump sum or converted to an annuity and added to your monthly benefit payments. Your election will be irrevocable after your properly completed election is filed with the Trinity Health Retirement Program Office. If you fail to make an election prior to the January 1 following your reemployment, any additional amounts credited to your Cash Balance Account following your reemployment will be paid in the same form you elected to receive your Cash Balance Account. If you did not previously elect to 3 In addition, if you are eligible for a Loyola Transition Benefit, after the end of each year, your benefit will be recalculated to take into account any Loyola Transition Benefit you have earned. Your monthly payments shall be adjusted annually for the Loyola Transition Benefit amounts you accrue, if any, offset for the value of monthly benefit payments made to you, plus any amounts credited to your Cash Balance Account in the prior year (if your Cash Balance Account credits are converted to an annuity and added to your monthly payments based on your onetime election). 25

30 receive payment of your Cash Balance Account, any additional amounts credited to your Cash Balance Account following your reemployment will be converted to an annuity and added to the monthly benefit payments you are receiving. The following is a summary of the reemployment provisions that apply for retirements when you are receiving monthly benefit payments, as discussed above: Age at Original Benefit Commencement Age at Reemployment Monthly Benefit Payments Suspended? Make a One-Time, Irrevocable Election for Payment of Additional Cash Balance Amounts? 65 or older 65 or older No Yes, when monthly benefit payments first began. Default Form of Payment for Additional Cash Balance Amounts Paid Each Year (if a valid election is not filed) Form in which you previously elected to receive your Cash Balance Account or, if no such election, added to your monthly benefit payments. Younger than or older No Yes, when reemployed. Form in which you previously elected to receive your Cash Balance Account or, if no such election, added to your monthly benefit payments. Younger than 65 Younger than 65 No, if reemployed after a bona fide termination and you do not work 1,300 or more Hours of Service in a calendar year. Younger than 65 Younger than 65 Yes, if reemployed before a bona fide termination or you work 1,300 or more Hours of Service in a calendar year. Yes, when reemployed. No, when monthly payments are suspended, all previous elections are cancelled and additional Cash Balance Amounts are NOT paid each year. A new distribution election is permitted when you reach age 65 or terminate employment, including a new one-time election if you are at least age 65. Form in which you previously elected to receive your Cash Balance Account or, if no such election, added to your monthly benefit payments. Not applicable. WHAT HAPPENS TO MY BENEFIT IF I DIE BEFORE I RETIRE? If you die before payment of your Plan benefit begins, your spouse or other Beneficiary will receive a pre-retirement death benefit if you: were an active participant with five or more years of Vesting Service, had attained age 65 while still earning Benefit Service in the Plan, or were a former participant entitled to a deferred vested benefit. 26

31 If You Are Married If you die before payment of your Plan benefit begins and your total vested Plan benefit is more than $5,000, your spouse will receive 100% of your Cash Balance Account converted to an equivalent monthly benefit. Alternatively, your spouse may elect to receive 100% of your Cash Balance Account in the form of a lump sum payment. 4 However, if your total vested Plan benefit is $5,000 or less, it will be paid to your spouse as a lump sum. Notwithstanding the above, if you die after having elected a form of benefit payment (including filing your election with the Plan Administrator) but before payment of your Plan benefit begins, subject to limited exceptions under administrative procedures established by the Plan Administrator in its sole and absolute discretion, your election shall be effective and what, if any, death benefit is payable will be based on your election. Benefits will begin the month following your death unless your benefit is paid to your spouse in one lump sum because your total vested Plan benefit is $5,000 or less, your total vested Plan benefit is more than $5,000 and your spouse elects to receive the value of the benefit in one lump sum payment, or your spouse elects to defer payment of benefits until you would have reached age 65. You may elect someone other than your spouse as your pre-retirement death Beneficiary, but only if your spouse signs a waiver form indicating that she or he agrees that you can elect someone other than your spouse as a Beneficiary. The spousal waiver and Beneficiary Form RP-20 may be obtained from the Retirement Program website at or by telephoning the Trinity Health Retirement Program Office at If You Are Not Married or You Are Married and Elect a Beneficiary Other than Your Spouse If you are not married, a lump sum will be issued to your estate unless you have completed a Beneficiary Form RP-20 and provided it to the Trinity Health Retirement Program Office. If you are married and there is a Beneficiary Form RP-20 on file with the Trinity Health Retirement Program Office naming a Beneficiary other than your spouse, your named Beneficiary will receive a lump sum benefit. The 4 If you have a LUMCERP Benefit and your total vested Plan benefit is more than $5,000, your spouse will receive the greater of (a) 100% of your accrued benefit under the LUMCERP as of December 31, 2012 or (b) the 50% survivor annuity portion of your LUMCERP Benefit determined as if you had retired on the day before your death and elected a 50% Joint and Survivor Option plus 100% of your Cash Balance Account (converted to an equivalent monthly benefit). Alternatively, your spouse may elect to receive the greater of (a) the present value of 100% of your accrued benefit under the LUMCERP as of December 31, 2012 or (b) 100% of your Cash Balance Account and the present value of the 50% survivor annuity portion of your LUMCERP Benefit determined as if you had retired on the day before your death and elected a 50% Joint and Survivor Option, in the form of a lump sum payment. 27

32 amount of the lump sum benefit payable to your Beneficiary or estate is 100% of your Cash Balance Account. 5 You may obtain a Beneficiary Designation Form RP-20 for the Plan from the Retirement Program website at or from the Trinity Health Retirement Program Office at Notwithstanding the above, if you die after having elected a form of benefit payment but before payment of your Plan benefit begins, your election shall be effective and what, if any, death benefit is payable will be based on your election. WHAT HAPPENS TO MY BENEFIT IF I DIE AFTER RETIREMENT BEGINS? If you have already retired and have begun to receive benefits, the availability of a death benefit for your spouse, Beneficiary, or survivor will be determined by the optional form of benefit payment you selected at the time you retired. Similarly, if you die after having elected a form of benefit payment (including filing your election with the Plan Administrator) but before payment of your Plan benefit begins, subject to limited exceptions under administrative procedures established by the Plan Administrator in its sole and absolute discretion, the availability of a death benefit for your spouse, Beneficiary, or survivor will be determined by the optional form of benefit payment you selected. If you elected the Life Only Option, benefits generally cease at your death and no death benefits are payable. WHAT IF I AM NOT SATISFIED WITH THE DETERMINATION OF MY PLAN BENEFIT? The Plan Administrator is responsible for determining the amounts payable from the Plan and advising each participant or Beneficiary of those amounts. The Plan Administrator will either approve your application for benefits or explain why your claim is being denied (by referring to specific Plan provisions) and how applications are reviewed. If you disagree with a decision, you or your authorized representative may ask for a review by submitting a written request to the Plan Administrator. Your request should include the issues and comments you feel are important. You also may review pertinent documents if you wish. Any legal action against the Plan must be filed within one year after the time that the Plan s claims process has been completed, or if earlier, one year from the date you knew or should have known that a claim existed. 5 If you have a LUMCERP Benefit, the amount of the lump sum benefit payable to your Beneficiary or estate is equivalent in value to the death benefit described for a married participant in footnote 5, above, assuming a spouse of the same age. 28

33 Who administers the Plan? The Plan Administrator supervises the day-to-day administration of the Plan. The governing body of the Plan is the Benefits Committee, which appoints the Plan Administrator, interprets the Plan, establishes the administrative structure of the Plan, and sees to its overall operation. Service of legal process may be made upon the Plan Administrator. How is the Plan funded? Your benefits under the Plan are funded entirely by contributions from the participating Employers. The amount of the annual contribution is determined by an independent actuarial firm in accordance with applicable Internal Revenue Service regulations. The contributions are held in trust by the Trustee. The assets in the Trust are invested by investment managers selected and monitored by the Benefits Committee. When you become eligible to receive payment of your Plan benefit, the Trustee will make monthly benefit payments or a lump sum benefit payment to you. The books and records of the Plan are kept on a calendar year basis, which is the Plan Year. DOES THE FEDERAL GOVERNMENT INSURE MY PLAN BENEFITS? Because the Plan is a Church Plan, benefits under the Plan are not insured by the Pension Benefit Guaranty Corporation. 29

34 Plan Legal Information WHAT HAPPENS TO MY RETIREMENT BENEFITS IN THE EVENT I GET DIVORCED AND PART OF THE SETTLEMENT INCLUDES A QUALIFIED DOMESTIC RELATIONS ORDER (QDRO)? If you are divorced, the court may enter a Qualified Domestic Relations Order (QDRO). QDROs specify that a part of your Plan benefit be paid to someone else (such as a spouse, former spouse, child, or other dependent). The Plan allows for immediate distribution to alternate payees. You will be notified if Trinity Health receives a QDRO and what effect the QDRO has on your retirement benefits. You may obtain a copy of the Plan s procedures governing QDRO determinations from the Plan Administrator without charge. Model QDRO language is available from the Trinity Health Retirement Program Office by calling CAN THE PLAN BE AMENDED OR TERMINATED? Participation in the Plan is not a guarantee of continued employment with Trinity Health or a participating Employer, nor is it a guarantee that the retirement benefit levels will remain unchanged in future years. Trinity Health Corporation intends to continue the Plan indefinitely, but reserves the right to amend or terminate the Plan at any time. If the Plan is wholly or partially terminated, the participants affected will become fully vested in the benefits they earned as of the date of Plan termination, and distributions would be made in accordance with the provisions of the Plan. The Plan may not be modified or amended simply by representations, oral or otherwise, that may be made to you concerning the Plan. Accordingly, you should not consider the Plan to have been amended based on assertions made by a supervisor or a Human Resources representative, for instance. If you received information that is contrary to the terms of the Plan or this SPD, please contact the Plan Administrator for clarification or confirmation. WHAT IS THE PLAN YEAR? The Plan Year is the 12-month period commencing on January 1 and ending on December 31. WHAT HAPPENS TO MY BENEFIT IN A MERGER, CONSOLIDATION, OR TRANSFER? If the Plan is merged or consolidated with another plan, or your Accrued Benefit is transferred to another plan, your retirement benefit under that other plan will be equal to at least the amount to which you would be entitled if the Plan had been terminated just before the change. 30

35 IS THERE A MAXIMUM BENEFIT? The Internal Revenue Code limits the retirement benefits payable and the Plan Compensation that may be considered under the Plan for highly compensated associates. If these maximums affect you, you ll be notified. 31

36 Important Plan Information Trinity Health Pension Plan Plan Number: 001 Employer Identification Number: Plan Year is the same as calendar year, January 1 December 31 Plan Administrator Trinity Health Corporation Benefits Committee Victor Parkway Livonia, Michigan (facsimile) greenb@trinity-health.org Pension Plan Trustee The Northern Trust Company 50 South LaSalle Street Chicago, IL Type of Plan: Defined Benefit AGENT FOR SERVICE OF PROCESS The law requires someone to be named as Agent for Service of Process. That is, someone to whom court papers may be given officially if a court dispute does arise. The person currently named as the Agent for Service of Process is CT Corp., which may be served with process at Telegraph Road, Bingham Farms, Michigan Process also may be served upon the Plan Administrator at the address given above. 32

37 APPENDIX Description Plan Compensation Base Worked Hours/Compensation Base Hourly Wages or Salary Yes Yes Overtime/Double Time Yes Yes 6 Back Pay/Lost Wages Yes Yes Retroactive Pay Yes No 7 (retroactive pay increase) Holiday Pay Worked Yes Yes 8 Leasing Out Yes Yes Educational Opportunity Pay (seminar) Yes Yes Lump Sum Payouts of Compensation when Yes Yes 9 associate is not also getting any base pay Student Stipends Yes Yes 10 Compensation for work when associate is NOT also receiving base pay (not tuition reimbursement) Base Non-Worked Hours/Compensation Holiday Pay Not Worked Yes Yes Call Back Pay Yes Yes Jury Duty Yes Yes Union Pay Yes Yes (Time spent performing Union duties) Vacation/Sick Pay Yes Yes Bereavement Pay Yes Yes Low Census Paid Yes Yes Suspension Pay if associate instructed to stay Yes Yes home and continues to be paid while disciplinary dispute is resolved On Call Hours/Compensation On Call Paid Yes Yes Stand By Pay Yes Yes On Call Not Paid No No Premiums & Differentials 11 Call Back Premiums Yes No Overtime Premiums Yes No Charge Nurse Premium Yes No Hours of Service 6 Hours are credited at 1 hour per hour actually worked, regardless of pay multiplier. 7 Retroactive Pay is additional compensation for hours previously credited, so no additional hours are due. 8 Hours are credited at 1 hour per hour actually worked, regardless of pay multiplier. 9 Hours should be pro-rated by dividing the lump sum amount by the associate s normal hourly pay rate. 10 Hours should be pro-rated by dividing the lump sum amount by the associate s normal hourly pay rate. 11 Premiums and Differentials are earnings codes used to credit additional compensation for hours already credited as base pay; only compensation is mapped. 33

38 Description Baylor Hours 36 hour work week (nurse works 3 12-hour shifts but is paid for 40 hours treated as a premium) Emergency Administrative Pay (paid when associate is called in during exceptional circumstances, such as blizzard Yes Yes Plan Compensation conditions) Holiday Premiums Yes No Shift Differentials Yes No Service Differentials Yes No Preceptor (nurse trainer) Pay as hourly Yes No differential Military Differential Wages Yes Yes Individual Productivity & Incentive Pay 12 Administrative duties for salaried associates not Yes Yes addressed by base pay Base pay that is tied to productivity rather than Yes Yes qualitative results Individual based incentives, such as pay for Yes Yes RVUs Commissions Yes Yes Piecework Yes Yes Bonuses/Pay for Performance/Team Incentives Bonuses (based upon work efforts) Yes No Payment to associate in lieu of a merit increase to base pay (paid either in a lump sum or over time; formerly called Lump Sum Payouts of Compensation when associate is also getting base pay) Longevity Bonuses Yes No Team Based Incentives Yes No Variable Incentive/Pay for Performance (including SEC exceptional pay at Silver Spring, for non management staff) Yes No Pay at Risk Yes No Gain Sharing Yes No Retention Bonus No No Sign on Bonus No No Referral Bonus No No Other compensation and awards Awards Yes No Bequest for special department Yes No Merit Pay Yes No Honorariums Yes No Yes No No No Hours of Service 12 For Plan purposes, the hours will be pro-rated based on on-call compensation divided by base pay rate. 34

39 Description Plan Compensation Chaplin Housing Allowance 13 Yes No Preceptor (nurse trainer) Pay (as lump sum) Yes No Student Stipends Yes No Compensation for work when associate is also receiving base pay (not tuition reimbursement) PTO / Sick / Vacation PTO actually taken except when associate is Yes Yes also on short term disability Salary continuation in lieu of PTO for Yes Yes Executives) PTO paid at severance (termination), paid when 401(k)/403(b) only No status changes, involuntary cash outs of PTO FMLA leave regular salary paid Yes Yes Includes new Military care FMLA FMLA leave regular salary not paid No No Transfer of PTO to an associate No No Cash in lieu of PTO (sell back of PTO at open No No enrollment) PTO and Sick Bank paid supplemental to Short 401(k)/403(b) only No Term Disability (not paid at termination) 14 PTO and Sick Bank paid supplemental to Yes Yes Workers Compensation (not paid at termination) Taxable Donations from PTO to a Charity 401(k)/403(b) only No Non-Taxable Donations from PTO to a Charity No No (i.e. Katrina tax exempt donation) Short Term Disability 15 Short term disability Yes Yes Salary continuation in lieu of STD Benefits for Yes Yes Executives Severance Notice Period Pay Yes Yes (associate is paid to stay home to consider severance/future options) Notice Pay (Boise) told staff to stay home, and pay them one last week of regular pay. The organization would then terminate their employment. No Yes (501 hrs max) Hours of Service 13 Chaplain housing allowances are credited only when actually paid to the chaplain; when housing is paid for by the participating Employer and the chaplain s gross compensation is adjusted for tax purposes no credit is given. 14 Short term disability ( STD ) hours and compensation are computed for Plan purposes based on the duration of STD status, budgeted hours per week, and base pay rate; supplemental PTO/Sick are included in this computation and as such are not credited here. 15 STD hours and compensation are computed for Plan purposes based on the duration of STD status, budgeted hours per week, and base pay rate; STD hours and compensation reported by payroll feeds are not used. STD is capped at a maximum of 501 hours per incident. 35

40 Description Plan Compensation Hours of Service Salary continuation paid after last day physically worked No Yes (501 hrs max) Severance Pay No Yes (501 hrs max) Severance Pay received from one MO, but the No No credit at terminated MO associate is still working at another MO Pay in lieu of reduction in service (partial No Pro rated for hour only severance). To make whole an associate when moved to a lower paying and/or reduced hours position Reimbursements Code Section 125 Reimbursements No No Expense Reimbursements No No Tuition Reimbursements No No Recruitment Scholarships No No Transition Incentive (Hackley) to offset cost of No No lengthy commute No credit Moving Allowance No No Loan Forgiveness No No Outplacement Services Pay No No Capital Accumulation No No Restoration Plan No No Equity Trust Payments No No LTIP (Long Term Incentive Pay Home Office No No only) Adoption Pay No No Auto Allowance No No Dues of any nature No No Workers Comp Payments No No Companion Travel Pay No No Long Term Disability Benefits No No Group Term Life Benefits No No Fringe Benefit Payments No No Imputed Income of any kind No No Payments for medical waivers/opt outs No No Payments/withdrawals from a qualified No No retirement plan Contributions to Deferred Comp Plan No No Contributions to Top Hat Plan No No Time off without Pay No No Leasing in (including statutory associate) No No Comp Over IRS 401(a)(17) Limit No No Payments from Deferred Comp Plans No No Payments for Non Compete Contracts No No Flexible Benefits No No Low Census Not Paid No No 36

41 Description Plan Compensation Raffle Winnings No No Taxable non cash items (i.e. Gift Cards, No No discount for memberships to health clubs, PRV points for redemption value, gift certificates, points programs) Health Retirement Account Lump Sum Payout No No Hours of Service , , /28/13 37

42 440 Mamaroneck Avenue Harrison, NY PT P2 (10/13) 2013 Transamerica Retirement Solutions Corporation