Annual Disclosure Packet

Transcription

1 Annual Disclosure Packet

2 ENCLOSED YOU WILL FIND THE REQUIRED ANNUAL DISCLOSURES AND NOTICES: Summary Annual Report for CoorsTek LLC Savings and Investment Plan 401(k) Annual Notices for the CoorsTek LLC Savings and Investment Plan....2 Default Investment Options....7 Prescription Drug Coverage and Medicare Notices HIPAA Comprehensive Notice of Privacy & Procedures Notice of Special Enrollment Rights Notice of Grandfathered Status Notice of Right to Designate Primary Care Provider Women s Health and Cancer Rights Notice Newborns and Mothers Health Protection Act Medicaid & Children s Health Insurance Program CHIP... (separate packet) These annual Disclosures and Notices have been provided to you by law and protect you and your rights. We encourage you to read these carefully. If you wish to obtain additional copies of the following you may do so at any time by contacting your Human Resources Business Partner. IMPORTANT NOTICE This packet of notices related to our health care plan includes a notice regarding how the plan s prescription drug coverage compares to Medicare Part D. If you or a covered family member is also enrolled in Medicare Parts A or B, but not Part D, you should read the Medicare Part D notice carefully. It is titled, Important Notice from CoorsTek LLC About Your Prescription Drug Coverage and Medicare.

3 SUMMARY ANNUAL REPORT FOR COORSTEK LLC 401(K) Summary Annual Report for CoorsTek LLC Savings and Investment Plan This is a summary of the annual report for the CoorsTek LLC Savings and Investment Plan, (employer identification number , plan number 002) for the period of January 1, 2015 to December 31, The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). Basic financial statement Benefits under the plan are provided by a trust (benefits are provided in whole from trust funds). Plan expenses were $13,149,146. These expenses included $42,178 in administrative expenses, $12,834,928 in benefits paid to participants and beneficiaries and $272,040 in other expenses. A total of 3,829 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of theses persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan was $208,334,886 as of December 31, 2015 compared to $197,824,175 as of January 1, During the plan year the plan experienced an increase in its net assets of $10,510,711. This increase includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan s assets at the end of the year and the value of the assets at the beginning of the year, or the costs of assets acquired during the year. The plan had total income of $23,659,857, including employer contributions of $8,599,118, employee contributions of $11,824,825, others contributions of $912,031, losses of $31,130 from the sale of assets, earnings from investments of $2,342,218 and other income of $12,795. Minimum funding standards Enough money was contributed to the plan to keep it funded in accordance with the minimum funding standards of ERISA. Your rights to additional information You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 1. An accountant s report; 2. Assets held for investment; and 3. Information regarding any common or collective trust, pooled separate accounts, master trusts or investment entities in which the plan participates. To obtain a copy of the full annual report, or any part thereof, write or call the plan administrator or the office of CoorsTek, Inc. ATTN: Irma Lockridge Denver West Parkway, Suite 400 Golden, CO (Employer Identification Number) You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. These portions of the report are furnished without charge. You also have the legally protected right to examine the annual report at the main office of the plan and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the department should be addressed to: U.S. Department of Labor Employee Benefits Security Administration Public Disclosure Room 200 Constitution Avenue, NW Suite N-1513 Washington, D.C Disclosures Packet 1

4 ANNUAL NOTICES FOR THE COORSTEK LLC Plan Number 002 CoorsTek LLC ( CoorsTek ) sponsors the CoorsTek LLC Savings and Investment Plan ( Plan ) to help you prepare for retirement. These Notices are provided pursuant to the Pension Protection Act of They explain several important features of the Plan, including: (1) how automatic enrollment works under the Plan for affected employees, (2) the default investment alternative that applies under the Plan if you do not direct the investment of your account, and (3) your rights and obligations under a design-based safe harbor 401(k) plan. These Notices also explain how to change your contribution election or your investment election under the Plan. If you have questions about the information in these Notices, please contact Fidelity Investments ( Fidelity ) by calling the Fidelity automated telephone service at If you prefer, you can speak to a Fidelity Participant Services Representative at between 8:30 a.m. and 8:00 p.m. in your local time zone, Monday through Friday. You may also find information and make changes online by logging on to Fidelity NetBenefits at Please have your Social Security number and personal identification number (PIN) available when you call or log on. Automatic Enrollment Notice If you are an employee hired by CoorsTek or one of its subsidiaries on or after January 1, 2008, unless you elect otherwise, CoorsTek will automatically enroll you in the Plan and withhold 3% of your Compensation (as defined under the Plan) and contribute it to the Plan on your behalf, effective on the first day of the first month following the 30-day anniversary of your date of hire. This 3% automatic contribution level will increase by 1% per year until it reaches 6% and will continue to apply until you change it. You have the right to change your contribution percentage or to stop contributing altogether, but you must affirmatively elect to do so. Unless you have elected otherwise, your automatic enrollment contributions and the employer s matching contributions are invested in the default investment option described in the Default Investment Option Notice. You have the right to direct the investment of your contributions and your account balance to the Plan s other available investment options. Also, you may designate a beneficiary to indicate to whom any benefits should be paid in the event of your death by following the procedures established by the Plan Administrator. Keep in mind that CoorsTek matches one dollar for each dollar you contribute, up to the first 6% of your eligible compensation, for a maximum match of 6% of your eligible compensation. So, to get the most from the employer matching contributions, you must contribute at least 6% of your eligible compensation. You may change the rate of your contributions or stop your contributions as of the first day of any pay period. If you make the change far enough in advance of payroll processing, the change will be effective for the next paycheck you will receive. Otherwise, the change will be effective for the following paycheck. Default Investment Option Notice The Plan lets you invest in a number of different investment options. You have the right to designate how all contributions and earnings to your account will be invested among the available Plan investment options. If you do not designate how contributions and earnings should be invested, they are invested in the Plan s default investment option. This could occur if: (a) you are automatically enrolled in the Plan, (b) you elect to make contributions to the Plan but do not designate an investment option, (c) you make rollover contributions to the Plan but do not designate an investment option, (d) CoorsTek makes employer contributions to the Plan and you do not designate an investment option, or (e) there is a service provider change that requires a fund transfer and you do not designate an investment option. The Plan s default investment is the Fidelity Freedom K Fund for your age when you are first eligible to contribute, based on an assumed retirement age of 65. A detailed description of the Fidelity Freedom K Fund is included with this Notice and is incorporated into this Notice. The description explains the fund s investment objectives, risk and return characteristics, and fees and expenses. You can change this default investment election at any time without financial penalty. Any change you make will generally be effective on the next business day, unless unusual market conditions dictate otherwise or unless the Plan is in a blackout period due to implementation of changes, upgrades, maintenance or similar activities. Contact Fidelity, as outlined below, for information about the available investment options, including the Fidelity Freedom K Funds. 2 coorstek.com benefits@coorstek.com

5 ANNUAL NOTICES FOR THE COORSTEK LLC Changing Your Contribution Election or Your Investment Election Under the Plan If you wish to change your contribution election (or automatic enrollment deferral percentage) to contribute a different percentage to the Plan or if you wish to invest your contributions and/or account balance differently, you may call Fidelity at You may use the automated telephone service 24 hours a day or call Monday through Friday from 8:30 a.m. to 8 p.m. in your local time zone to speak with a Fidelity Participant Services Representative. You may also make changes online by logging on to Fidelity NetBenefits at com. Please have your Social Security number and personal identification number (PIN) available when you call or log on. Design Based Safe Harbor 401(k) Plan Notice This notice is to advise you that the Plan meets a design-based safe harbor method for satisfying the 401(k) nondiscrimination tests required by the Internal Revenue Code (the average deferral percentage ( ADP ) test and the average contribution percentage ( ACP ) test). This notice describes the safe harbor contributions and related Plan provisions. Contributions Salary Reduction Contributions You may elect to reduce your Compensation and have the Employer contribute the amount of the reduction to the Plan on your behalf. These contributions are called Salary Reduction Contributions. Because you do not receive these amounts, these contributions are not subject to federal income tax and, in most states, state income tax, in the year in which they are made. Thus, you delay paying income taxes on this money until it is actually paid out of the Plan to you. Your Salary Reduction Contributions are subject to Social Security ( FICA ) taxes. For purposes of calculating contributions to the Plan, your Compensation includes the total pay for services rendered that you received from the Employer during the Plan Year (each January 1 through the following December 31) while you were a participant. In addition, Compensation includes salary reduction-type contributions to this Plan, and to any cafeteria plan, flexible spending account plan, qualified transportation fringe benefit plan, or dependent care assistance plan. Compensation excludes fringe benefits (cash and noncash), reimbursements and other expense allowances, moving expenses, deferred compensation and welfare benefits, including but not limited to adoption assistance, baby seat reimbursement, car allowances, fitness reimbursement and tuition reimbursement. The Employer automatically applies your elected contribution percentage to your Compensation. Automatic Election of Salary Reduction Contributions Effective with respect to employees hired on or after January 1, 2008, unless you elect otherwise, the Employer will automatically withhold 3% of your Compensation and contribute it to the Plan on your behalf as Salary Reduction Contributions, effective when you are first eligible to contribute. Each year after you are automatically enrolled, your salary reduction contributions will be increased by 1% until they reach 6%. For example if you are automatically enrolled during 2008 your initial rate of contributions was 3%. This contribution percentage was increased to 4% for 2009, 5% for 2010, and 6% for years after 2010, unless it is changed by you in accordance with Plan procedures. Your contributions will be invested in the Fidelity Freedom K Fund for the year closest to your normal retirement age (65), based on your age when you are first eligible to contribute. You can change this default investment election at any time by following the procedures established by the Plan Administrator. If you wish to avoid automatic withholding of Salary Reduction Contributions, change your contribution percentage, or invest your contributions in another available fund, you must elect otherwise in accordance with procedures established by the Plan Administrator. Catch-up Contributions If you attain age 50 or over before the end of a Plan Year you are permitted to contribute an additional Catch-up Contribution. Your Catchup Contributions for a Plan Year cannot exceed your Compensation minus your Salary Reduction Contributions. Limitations on Salary Reduction and Catch-up Contributions. In general, you may elect to contribute any percentage of your Compensation (including an election to not contribute at all). However, if you elect to contribute to the Plan, the amount of your contribution can never be less than 1% of your Compensation and never more than 80% of your Compensation after subtracting all voluntary and mandatory deductions and withholdings. The following other limitations may also apply Disclosures Packet 3

6 ANNUAL NOTICES FOR THE COORSTEK LLC (a) Under federal law, the maximum amount of salary reduction-type contributions you can make to all 401(k) and 403(b) plans in which you participate in a calendar year is $18,000 for This limit is indexed for inflation. This dollar limit applies to your Salary Reduction Contributions under this Plan as well as any other 401(k) and 403(b) savings plans in which you may participate in the same year. Catch-up Contributions are not taken into account for this Salary Reduction Contribution limit. Catch-up Contributions may be made by eligible participants in amounts over and above the limit mentioned above. If you are an eligible participant, you may make Catch-up Contributions in the amount of $6,000 for This limit is also indexed for inflation. (b) Federal law also limits the total amount that can be added to your accounts under the Plan and any other qualified plans maintained by the Employer. In general, the limit is the lesser of 100% of your Compensation from the Employer or $53,000. Catch-up Contributions are not counted for the $53,000 limitation but are counted for the 100% of Compensation limitation. The $53,000 limitation is indexed for inflation and may be increased. Making Changes in Your Contributions You may begin, suspend, resume or change the rate of your contributions during any pay period, effective for the next paycheck you will receive, if you make the change far enough in advance of the payroll processing, otherwise effective for the following paycheck. The Plan Administrator may impose limits on the number of permitted changes. To make any of these types of changes, you must follow the procedure established by the Plan Administrator. Employer Matching Contribution Formula To encourage you to make contributions to the Plan, your Employer makes Employer Matching Contributions equal to 100% of your Salary Reduction Contributions and Catch-up Contributions up to the first 6% of your Compensation. This Employer Matching Contributions formula is intended to meet the requirements of a safe harbor under the Internal Revenue Code which eliminates the need for the Employer to determine whether the Salary Reduction Contributions and Employer Matching Contributions made under the Plan satisfy certain nondiscrimination tests. Your Employer may also, in its discretion, make an additional non-safe harbor match. If your Employer makes an additional non-safe harbor match, this match will be allocated proportionately to all of your Employer s participants who made Salary Reduction Contributions. For example, assume you earn $30,000 of Compensation annually and that the only match is the safe-harbor match. If you elect to defer 6% of your Compensation, your Employer would withhold $1,800 from your pay checks during the year. Your Employer would match dollar for dollar of the first 6% of Compensation for a total Employer Matching Contribution of $1,800 (or a maximum of 6% of your Compensation). Profit Sharing Contribution. In addition to the Employer s Matching Contributions, each year the Employer, in its sole discretion, will determine whether it will make a Profit Sharing Contribution and the amount, if any, of its contribution. The Employer is not required to make a Profit Sharing Contribution for any Plan Year. Vesting You are always 100% vested in your Salary Reduction Contributions account and Employer Matching Contributions account, as well as your other Plan accounts. Loans and In-Service Distributions Distributions Prior to Termination of Employment Generally, the Plan is designed to provide for your financial security when you are no longer working. However, in some circumstances, it may be in your best interest to be able to have access to your benefits prior to termination of your employment. Consequently, the Plan provides that you may borrow money from your vested accounts and, under certain circumstances, withdraw funds from your accounts. Loans The Plan provides that participants may borrow funds from their vested account balances. The loan program is administered by the Plan Administrator. In order to obtain a loan, you must submit an application to the Plan Administrator. The maximum amount of any single loan is the lesser of: (1) $50,000 minus all outstanding loans from the plan minus the excess of the highest total amount of outstanding loan balances in the previous 12-month period over the outstanding balance on the date the loan is made, or (2) one-half of the eligible individual s vested account balance. 4 coorstek.com benefits@coorstek.com

7 ANNUAL NOTICES FOR THE COORSTEK LLC In-Service Distributions The Plan provides the following types of in-service distributions: Distributions Of After Tax Employee Contributions At Any Time You may withdraw the entire balance in your Savings and.investment Account (after tax employee contributions) at any time. You may withdraw all, or a portion of $100 or more, of your contributions to this account at any time. Distributions From Your Employer Contribution Accounts You may withdraw the balance in your Pre 87 Employer Contribution Account at any time. Distributions From Your Rollover Contribution Account You may withdraw all or any portion of your contributions in your Rollover Contribution Account at any time. Distributions From Your 401(k) Contribution Account You may withdraw all or any portion of your contributions in your 401(k) Contribution Account (as well as all vested account balances) at any time after you attain age 59½. Hardship Distributions If you have a financial hardship, as described in your Summary Plan Description ( SPD ), you may withdraw some or all of your accounts, other than any safe harbor matching contributions contributed to your account and any earnings credited to your Salary Reduction Contributions Account. Distributions After Termination From Employment Account Balances of $5,000 or Less If your account balance is $5,000 or less when you terminate employment, then you will receive a lump sum distribution of your entire interest in the Plan shortly after you terminate employment. Your benefit will never be distributed earlier than 30 days after the date you receive information concerning your rollover rights, unless you waive the remainder of the 30-day notice period by returning a completed request for distribution form. Account Balances of More than $5,000 If your Plan account balance exceeds $5,000 when you terminate your employment with the Employer, or if you terminate employment because of a disability (as defined in the Plan), you may elect to receive the entire amount in your Plan accounts in a lump sum or in a series of payments (made monthly, quarterly, semi annually, or annually). You may also choose when to receive the payments. Certain minimum payments must be made beginning with your required beginning date. The tax laws require that you receive the lump sum no later than your required beginning date. Your required beginning date is April 1 of the calendar year following the later of the year in which you attain age 70½ or the year in which you retire (the required beginning date for a 5% owner is April 1 of the calendar year following the year in which the owner attains age 70½). This Notice reflects the provisions of the Plan effective as of January 1, The Plan consists of a formal plan document and a trust agreement, both of which are intended to be qualified under the Internal Revenue Code. From time to time, the Internal Revenue Service ( IRS ) may require that certain changes be made to the Plan or the trust agreement. In addition, the Employer may amend the Plan at any time. You will be advised if there are changes that significantly affect the information in this Notice. You have also received a booklet (your Summary Plan Description or SPD ) which was provided to explain to you, in easy to understand language, how the Plan works. It describes your benefits and rights as well as your obligations under the Plan in more detail. You should refer to the SPD for more information about the Plan. It is important for you to understand that because this Notice and the SPD are only summaries, they cannot cover all the details of the Plan or how the rules will apply to every person in every situation. All of the specific rules governing the Plan are contained in the official plan document and trust agreement. You can get copies of the plan document and trust agreement from the Plan Administrator. There may be a minimal charge for copying costs Disclosures Packet 5

8 ANNUAL NOTICES FOR THE COORSTEK LLC Every effort has been made to accurately describe the complicated provisions of the Plan. In the event there is any conflict between this Notice (or the SPD) and the plan document and trust agreement, the official plan document and trust agreement will always be followed in the actual determination of your benefits or rights. If you have any questions concerning your benefits, you should contact Fidelity at You may use the automated telephone service 24 hours a day or call Monday through Friday from 8:30 a.m. to 8 p.m. in your local time zone to speak with a Fidelity Participant Services Representative. You may also find information and make changes online by logging on to Fidelity NetBenefits at Please have your Social Security number and personal identification number (PIN) available when you call or log on. CoorsTek LLC Employer Identification Number coorstek.com benefits@coorstek.com

9 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2005 Fund FPRS code: 2173 Ticker: FFKVX Gross expense ratio: 0.49% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund Disclosures Packet 7

10 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2010 Fund FPRS code: 2174 Ticker: FFKCX Gross expense ratio: 0.53% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. 8 coorstek.com benefits@coorstek.com

11 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2015 Fund FPRS code: 2175 Ticker: FKVFX Gross expense ratio: 0.56% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund Disclosures Packet 9

12 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2020 Fund FPRS code: 2176 Ticker: FFKDX Gross expense ratio: 0.58% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time.. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. 10 coorstek.com benefits@coorstek.com

13 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2025 Fund FPRS code: 2177 Ticker: FKTWX Gross expense ratio: 0.61% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund Disclosures Packet 11

14 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2030 Fund FPRS code: 2178 Ticker: FFKEX Gross expense ratio: 0.65% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. 12 coorstek.com benefits@coorstek.com

15 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2035 Fund FPRS code: 2179 Ticker: FKTHX Gross expense ratio: 0.67% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets; Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund Disclosures Packet 13

16 DEFAULT INVESTMENT OPTIONS COORSTEK LLC Fidelity Freedom K 2040 Fund FPRS code: 2180 Ticker: FFKFX Gross expense ratio: 0.67% as of 05/28/2016 Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom K Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom K Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Who may want to invest: Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets; Someone who is seeking a diversified mix of stocks, bonds, and short-term.investments in one investment option or who does not feel comfortable making asset allocation choices over time. This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. 14 coorstek.com benefits@coorstek.com