STONY BROOK UNIVERSITY

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1 These Plan Highlights are meant to summarize the Plan in easy-to-understand language. However, in the event of any ambiguity or inconsistency between the Plan Highlights and the Plan documents, the Plan documents will control. Who Can Participate? When May I Join? How Do I Contribute To The Plan? All current UFPC employees are eligible to participate in the Plan. If eligible, you may join the Plan as of your first payroll. Through payroll deduction, you can make 403(b) elective deferrals up to the maximum allowed by law. The dollar limit is $17,000 for You can also designate your 403(b) elective deferrals to a Plan account that accepts Roth after-tax contributions. In 2012, you may contribute as much as $17,000, in total, to all accounts (Roth after-tax contributions and pre-tax contributions). Roth contributions will be included as taxable income to the employee. Earnings on the Roth contribution will accumulate tax free, and retirement withdrawals may be exempt from federal income tax. You may also make a One-Time Irrevocable Election to defer additional pre-tax contributions to the Program. The One-Time Irrevocable Election form must be submitted prior to your date of hire. (Please see the One-Time Irrevocable Election form for further details.) If you have an existing qualified retirement plan with a prior employer, you may roll over that account into the Plan upon becoming a participant in the Plan. Can I Make Catch-up Contributions To The Plan? Can I Stop Or Change My Contributions? Age 50+ Catch-up - If you are age 50 or older and make the maximum allowable deferral to your Plan, you are entitled to contribute an additional catch-up contribution. The maximum catch-up contribution is $5,500 for You may stop your voluntary 403(b) contributions anytime upon written notice. Once you discontinue contributions, you may start again anytime by submitting a new Salary Reduction Agreement to CPMP s payroll department. You may increase or decrease the amount of your voluntary 403(b) contributions anytime by submitting a new Salary Reduction Agreement to CPMP s payroll department. Irrevocable contributions cannot be stopped or changed after your initial election.

2 How Does My University Faculty Practice Corporation (UFPC) Contribute To The Plan? How Do I Become Vested In My Plan Account? If you are eligible, your UFPC will contribute 12% of your compensation (up to the maximum allowed by law) to the Plan s 401(a) account. To be considered eligible, an employee must be classified as.5 FTE or above. Vesting refers to your ownership of a benefit from the Plan. You are always 100% vested in your employee contributions and your rollover contributions, plus any earnings they generate. All participants hired prior to January 1, 2008 are 100% vested in any 401(a) employer contributions. All participants hired on or after January 1, 2008 will become vested in any 401(a) employer contributions to the Plan, plus any earnings they generate, as follows: Years of Vesting Service Vesting Percentage Less than 3 0% 3 or more 100% How Are Plan Contributions Invested? You give investment directions for your Plan account, selecting from investment choices provided under the Plan. If you do not choose any investment options, the Plan has determined that your account will be invested in the appropriate Vanguard Target Retirement Fund. You may change your investment choices anytime. Some funds offered are subject to trading restrictions. More information about your Plan s investment choices can be found elsewhere in these materials. You also have the ability to invest in individual stocks and bonds through an optional TD Ameritrade account. After contributions and/or rollovers are deposited in your mutual fund account, you may elect to transfer up to 95% of your assets to a TD Ameritrade account. Please note you will receive a separate TD Ameritrade statement and you will also be able to access your TD Ameritrade account via the internet. For additional information on fees and/or to obtain the necessary TD Ameritrade enrollment forms, please contact Aspire Advisors, LLC at

3 You may also obtain a prospectus, which contains detailed information on each fund s charges, expenses, and risk, by visiting each mutual fund family s website. In addition to the internal expenses of the mutual funds, there is a fee of.37% annually, which is deducted from each participant s account at a rate of.0308% per month. Additional charges may be applicable to the optional TD Ameritrade account. Please note there is an annual maintenance fee of $50.00 that is paid on behalf of all active employees. Upon termination or retirement, this fee will be deducted from your account at a rate of $4.17 per month. When Can Money Be Withdrawn From My Plan Account? Money may be withdrawn from your Plan account in these events: Attainment of age 59½ Death Disability Severance from Employment Plan withdrawals are typically subject to a mandatory 20% federal withholding, unless rolled over to another qualified retirement plan or IRA. Depending on your reason for distribution, a 10% early distribution penalty may also be assessed. You may want to speak with a tax advisor before requesting a distribution. A processing fee of $50 will be deducted from your account upon distribution. May I Withdraw Money In Case of Financial Hardship? If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your account. A hardship, as defined by the government, can include: buying a principal residence, paying for your or a dependent s college education, paying certain medical expenses, preventing eviction from or foreclosure on your principal residence, paying for funeral expenses, or paying for qualifying repairs to your principal residence within tax limits.

4 A processing fee of $50 will be deducted from your account upon distribution. All distributions will be subject to ordinary income taxes. Depending on your reason for distribution, a 10% early distribution penalty may also be assessed. You may want to speak with a tax advisor before requesting a distribution. A financial hardship withdrawal requires a review process. If you have loan availability, you are required to take a loan before a hardship withdrawal. The IRS requires employees to stop contributing for six months following a hardship withdrawal. May I Borrow Money From My Account? The Program is intended to help you put aside money for your retirement. However, the Plan has included a feature that lets you borrow money from your account. The amount you may borrow is limited by rules under the tax law. In general, all loans will be limited to 50% of your vested account balance or $50,000. The minimum loan amount is $1,000. Loans taken for general purposes are repaid within five years via payroll deduction or MPL. Loans taken to purchase your principal residence must be repaid within 25 years via payroll deduction only. Payroll Deduction: You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1%. If loan repayments are interrupted due to separation from service, disability, leave of absence, etc., you must arrange to continue the loan repayment by implementing an alternative payment method. MyPlanLoan (MPL): The approved loan amount will be transferred from your current investments into an MPL account. These funds will continue to earn interest within the Program until you choose to access them via MPL debit card. The loan interest rate will be the Prime Rate plus 2.7%. A portion of the interest you pay (Prime) is directed back to your account. You will receive a monthly billing statement. Payments may be made by check or automatic deduction from your checking account.

5 Applicable to all Loans: A $75.00 set-up fee (1 st year only) for all new loans is charged to your account. A $25.00 annual maintenance fee is deducted from your account each January for as long as the loan remains outstanding. A missed loan payment in excess of 60 days causes the loan to default; thus the outstanding balance is fully taxable. A 10% early withdrawal penalty may apply on defaulted loan amounts, if you have not yet attained age 59½. How Do I Obtain Information About My Plan Account? You will receive a personalized account statement quarterly. The statement shows your account balance as well as any contributions and earnings credited to your account during the reporting period. You will also have access to an automated voice response system ( ) and Internet site ( which are designed to give you current information about your Plan account. You can get up-to-date information about your account balance, contributions, investment choices, and other Plan data. How Do I Enroll? It s easy to enroll and start saving for the future. Simply complete the Enrollment Form and Salary Reduction Agreement provided at the end of this booklet and return them to Aspire Advisors, LLC. Please be reminded that, if eligible, you must make an Irrevocable Election prior to your date of hire. If you have any questions or require further assistance completing the Enrollment Forms, please contact Anthony Sambrato of Aspire Advisors, LLC, at or via at AnthonyS@aspireadvisorsllc.com.