Appvion, Inc. Retirement Plan

Transcription

1 Appvion, Inc. Retirement Plan Salaried Employees SUMMARY PLAN DESCRIPTION Revised August 2015

2 Appvion, Inc. Retirement Plan Salaried Employees Table of Contents INTRODUCTION... 1 PLAN APPLICATION AND TRANSITION... 1 ELIGIBILITY AND PARTICIPATION Eligibility Commencement of Participation End of Participation... 2 VESTED PARTICIPANT... 2 DEFINITIONS OF SERVICE Hour of Service Year of Service for Participation Year of Service for Vesting Year of Benefit Service... 4 TERMINATION OF EMPLOYMENT Non-vested Participants Who Terminate Employment Vested Participants Who Terminate Employment Before Retirement Eligibility... 5 PRE-RETIREMENT SURVIVING SPOUSE BENEFITS Special Spouse Benefit Pre-Retirement Surviving Spouse Annuity... 6 NON-DUPLICATION OF BENEFITS... 6 RETIREMENT DATE Normal Retirement Date Early Retirement Date Disability Retirement Date... 7 BENEFIT FORMULA... 7 MINIMUM BENEFIT FORMULA... 8 NORMAL RETIREMENT BENEFIT... 9 EARLY RETIREMENT BENEFIT... 9 DISABILITY RETIREMENT BENEFIT PAYMENT OF BENEFIT LESS THAN $5,000 CASH VALUE RETIREMENT BENEFIT PAYMENT OPTIONS Single Life Annuity: % Joint & Surviving Spouse Annuity: % Joint & Surviving Spouse Annuity: % Joint & Surviving Spouse Annuity: Lump Sum Payment: i

3 EXAMPLES OF BENEFIT CALCULATIONS AT NORMAL AND EARLY RETIREMENT DATES AND EARLY COMMENCEMENT OF VESTED BENEFITS OTHER IMPORTANT FACTS Plan Identification and Classification Plan Administration Procedure to Obtain Benefits Claim Denial and Appeal Procedure Plan Documents Data Corrections Funding the Plan Benefits Insured by PBGC Rights and Protection of Participants: * * * * * ii

4 Appvion, Inc. Retirement Plan Salaried Employees INTRODUCTION The Appvion, Inc. Retirement Plan provides eligible employees with a monthly pension for life, based on the formula described in the Plan document and this Summary Plan Description ( SPD ). The Plan provides optional methods for receiving benefit payments, which allows you to choose the option that best suits your personal retirement needs. This SPD describes in a general manner the Plan and how it works. Several examples are provided to help you understand how the benefits under the Plan are calculated. If there are questions regarding the interpretation of any Plan provisions, however, the official Plan document is the governing document in all cases. PLAN APPLICATION AND TRANSITION This Summary Plan Description applies solely to Non-Bargaining Unit employees of Appvion, Inc., and to Hourly employees at the Portage, Wisconsin plant ( Eligible Employees ). The Plan was amended effective January 1, 2008, to limit participation to Eligible Employees who were actively employed by the Company on or before December 31, Employees hired (or rehired) by the Company on or after January 1, 2008 are not eligible to participate in this Plan. For Eligible Employees who elected to participate in the funded Retirement Contribution component of the Appvion, Inc. Retirement Savings and Employee Stock Ownership Plan (the Retirement Savings Plan ) effective April 1, 2008, and concurrently to discontinue active participation in this Plan, the accrual of Benefit Service under this Plan ended as of that date. For all Eligible Employees who were active participants in the Plan as of March 1, 2011, the accrual of future Benefit Service ended as of that date. That is, effective March 1, 2011, no additional benefits can be earned or accrued, and the accrued benefit of all active Participants will be determined and frozen as of that date. The Plan will continue on an ongoing basis and pay benefits in the normal course as they come due, but no additional benefits may be accrued or earned after March 1, Eligibility ELIGIBILITY AND PARTICIPATION An Eligible Employee is any non-bargaining unit employee of the Company or hourly employee at the Portage, Wisconsin plant who is hired before January 1, 2008 and is actively employed by the Company on and after January 1, The Plan does not include leased employees, employees who are covered by a collective bargaining agreement with the Company, non-bargaining unit hourly employees at distribution centers, or employees of an Affiliate of the Company (unless specifically identified as a participating Affiliate).

5 2. Commencement of Participation For Eligible Employees hired before January 1, 2008, the following rules apply for determining eligibility to participate in the Plan. An Eligible Employee automatically becomes a Participant in the Plan on the first day of the month after meeting the following requirements: a. attainment of age 21, and b. completion of one Year of Service for Participation (defined below). If your employment terminated before January 1, 2008 and you are rehired on or after January 1, 2008, or if you are transferred to the employment of the Company from an Affiliate on or after January 1, 2008, you will not be eligible to commence or recommence participation in the Plan. If you transfer from employment covered by a collective bargaining agreement to a non-bargaining unit position with the Company on or after January 1, 2008, you will not be eligible to participate in this Plan. 3. End of Participation Your participation in the Plan for purposes of earning or accruing additional benefits ended on the first to occur of: a. your separation from Service with the Company; b. the occurrence of a Break in Service; c. April 1, 2008, if you elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan at that time; or d. March 1, If you were vested (as described below) when you stopped earning additional benefits, you will continue to be a Participant in the Plan until your accrued Retirement Benefit is paid out. If you were not vested when you stopped earning additional accrued benefits, your continued participation in the Plan depends on whether you continued in employment after that time with the Company or an Affiliate. If your employment with the Company or an Affiliate continued after you stopped earning additional benefits, you will continue to be a Participant and you continue to earn Vesting Service for your continued employment (as described under the heading Years of Service for Vesting ) until you are no longer employed by the Company or an Affiliate. If you are vested when your employment later ends, then you will continue to be a Participant in the Plan until your accrued Retirement Benefit is paid out. If you were not vested when you stopped earning additional benefits, then your participation will continue until you have a Break in Service. Special rules may apply if you are later rehired (see Non-vested Participants Who Terminate Employment for additional information, including a definition of Break in Service). VESTED PARTICIPANT Your benefit in the Plan becomes vested after completion of five (5) years of Vesting Service (defined below). As a vested participant you have a non-forfeitable right to receive your accrued monthly benefit at your Normal Retirement Date. If you have a vested benefit when your participation ends, you will remain a Participant until all your benefits have been paid. 2

6 DEFINITIONS OF SERVICE 1. Hour of Service The term Hour of Service means each of the following, counted without duplication: a. Each hour for which you are paid or are entitled to pay for the performance of duties. (Hours at premium rates count as straight-time hours.) b. Each hour for which you are paid or entitled to pay for time in which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence; this does not include payments made only to comply with Workers Compensation, unemployment compensation or disability insurance laws. No more than 501 Hours of Service will be credited under this paragraph b. for any single continuous period of paid absence (additional Hours of Service for any period of such service may be provided, if eligible, under paragraphs c. through g. below). c. Military service, provided you return to work within 90 days of discharge with reemployment rights under Federal Law, and up to 2 weeks of summer military camp. d. Absence due to sickness or disability (whether paid or not; maximum one year). e. Authorized Leave of Absence (whether paid or not). f. Layoff (maximum one year), provided you return to the Company within two weeks of your recall date. g. Any period during which Long-Term Disability ( LTD ) benefits are paid, up to your Normal Retirement Date. h. Each hour for which back pay is awarded. 2. Year of Service for Participation A Year of Service for participation means the 12 consecutive month period, starting with your date of hire, during which you complete at least 1,000 Hours of Service. For example, if you were hired on March 1, 2007 your Service record is reviewed on March 1, 2008, to determine if you have completed 1,000 or more Hours of Service during the preceding 12 months. If so, you became a Participant on March 1, If you were hired in 2007 and did not complete 1,000 Hours of Service within the 12-month period following your date of hire, you will not be eligible to participate in this Plan in any event. For employees hired before January 1, 2008, if you did not work 1,000 hours during your first 12 consecutive month period of employment, you will be credited with a Year of Service for participation during the first year, starting with the first anniversary of your hire date, in which you do complete 1,000 Hours of Service (provided that this provision expires effective December 31, 2007). 3. Year of Service for Vesting a. Full-Time Employees. Starting with the 1989 Plan Year, Vesting Service for Full-time Employees is counted on an elapsed time method. Under this method, you receive one Year of Vesting Service for each 12 consecutive month period in which you are a Fulltime Employee starting with your date of hire (or January 1, 1989, if applicable). You will receive credit for periods of less than a year on the basis of a 365-day or 12-month year and a 30-day month. Full-time means, for this purpose, that you are customarily employed for 1,000 or more hours per calendar year (including holidays, vacations and authorized leaves of absence not to exceed 24 consecutive months). 3

7 b. Other Eligible Employees. You will be credited with one full year of Vesting Service for each calendar year in which you complete 1,000 or more Hours of Service with the Company. This includes the period of time prior to meeting the participation requirement of age 21 and one Year of Service. You will receive no Vesting Service for any calendar year in which you complete less than 1,000 Hours of Service. This method also applies to Full-Time Employees for the years 1976 through Year of Benefit Service a. Benefit Service. You will be credited with one full year of Benefit Service for each calendar year during which you are an Eligible Employee and complete 2,000 or more Hours of Service. This includes any time as an Eligible Employee prior to meeting the participation requirements of age 21 and one Year of Service. If your regularly scheduled workweek is less than 40 hours, the 2,000-hour rule is adjusted. For example, if your regularly scheduled workweek is 20 hours, you receive a full year of Benefit Service for each calendar year during which you complete 1,000 Hours of Service (2,000 x regularly scheduled hours 40). For any calendar year during which you complete less than the required number of Hours of Service for a full year of Benefit Service, you will be credited with a fractional part of a year of Benefit Service. For example, if 2,000 hours is a full year and you complete 1,600 Hours of Service, you will be credited with eight tenths (8/10) of a year (1,600/2,000). In no event, however, will Benefit Service be credited for Service or periods of Service after March 1, b. Benefit Service prior to January 1, 1976 You will be credited with Benefit Service for periods prior to January 1, 1976 based on the rules included in the Plan which were in effect prior to January 1, Normally all continuous service with the Company is counted in full years and full months (converted to years and tenths). TERMINATION OF EMPLOYMENT 1. Non-vested Participants Who Terminate Employment If your employment with the Company ends, or if you incur a 1-year Break in Service before you become a Vested Participant, you will forfeit all service credited for participation, vesting and benefit accrual purposes if the length of your Break in Service equals or exceeds five (5) years. However, if you return to work before you incur five (5) consecutive 1-year Breaks in Service, and you complete one additional Year of Service, the previously accrued Benefit and Vesting service will be reinstated. A Break In Service occurs upon either of the following events: a. if you are a Full-time Employee a period of at least 12 consecutive months during which you perform no Hours of Service. b. if you are not a Full-time Employee a Plan Year in which you complete fewer than 501 Hours of Service. 4

8 Full-time means, for this purpose, that you are customarily employed for 1,000 or more hours per year (including holidays, vacations and authorized leaves of absence not to exceed 24 consecutive months). 2. Vested Participants Who Terminate Employment Before Early Retirement Eligibility If you are a Vested Participant and your employment with the Company ends before you are eligible for an Early Retirement Benefit (age 55 and 10 Years of Vesting Service), you will be entitled to a monthly pension benefit beginning at your Normal Retirement Date. Your pension will be calculated using the Benefit Formula in effect at the time your employment ended. As a former employee with a Vested Benefit, you may elect to start receiving your monthly pension as early as age 55. In addition, effective December 1, 2014, if you terminate employment on or after July 1, 2014 or if your long term disability benefits under the Company s long term disability plan terminate on or after July 1, 2014, you may elect to receive your monthly pension as early as the first day of any month following your termination of employment. If you elect early commencement of your Vested Benefit, your accrued benefit will be actuarially reduced for each month that precedes your attainment of age 65. Your Retirement Benefit is calculated in the same way as the Normal Retirement Benefit. The resulting benefit amount is multiplied by the appropriate early commencement factor from the Early Commencement of a Vested Benefit Percentage Table shown below, and reduced to reflect the additional payments to be made because you will begin receiving benefits earlier and, as a result, for a longer period of time. Early Commencement of a Vested Benefit Percentage Table (For Vested Participants who begin receiving their Retirement Benefits before attaining age 65, but who terminated employment before attaining age 55 and earning 10 years of Vesting Service and without qualifying for a Rule of 65 Early Retirement) Age When Benefit Begins Percentage of Benefit Payable % 64 89% 63 79% 62 71% 61 64% 60 58% 59 52% 58 47% 57 42% 56 38% 55 34% If you are eligible for and elect early commencement of your Vested Benefit prior to reaching age 55, your accrued benefit will be actuarially reduced for each month that precedes your Normal Retirement Date pursuant to the actuarial factors set forth in the Plan or a combination of such actuarial factors and the above table of reduction factors (or the Early Retirement Percentage Table, if applicable to you), whichever produces a lower amount. 5

9 You must apply to the Company for your pension to begin. You may select any option you are eligible for that was available under the Plan for terminated vested Participants when you last worked for the Company. PRE-RETIREMENT SURVIVING SPOUSE BENEFITS The Plan provides benefit payments to your surviving spouse if you die before your retirement benefit starts, provided your benefit is vested at the time of death. Your spouse may be eligible for one of the benefits below: 1. Special Spouse Benefit If you die while actively employed by the Company, and if the sum of your age plus your Benefit Service equals at least 65 at the time of your death, your surviving spouse will receive a lifetime monthly pension beginning the first of the month after your death. You must have completed at least 10 years of Vesting Service for your surviving spouse to be eligible for this benefit. The amount of benefit is equal to one-half of the monthly benefit you had accrued as of your date of death, and is payable in the form of a 50% Surviving Spouse Annuity. This takes into account the actuarial factors used to convert your accrued benefit to the 50% Joint & Surviving Spouse Annuity. However, there is no reduction for early commencement if you were younger than age 65 at the time of your death. For (i) participants who elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan, (ii) participants who transfer to an Affiliate on or after April 1, 2008, and (iii) all other participants on and after March 1, 2011, Vesting Service is substituted for Benefit Service in the above calculation for periods of Service starting with the date of election or transfer, as applicable, or March 1, 2011, for all other participants. 2. Pre-Retirement Surviving Spouse Annuity If you die before your Normal Retirement Date with a vested benefit (whether or not you are employed at the time of your death), and if the sum of your age plus your Benefit Service is less than 65 at the time of your death, your surviving spouse will receive a lifetime monthly pension beginning at your Normal Retirement Date (or, if applicable and your spouse elects, as early as the date you would have reached age 55). The amount of this surviving spouse benefit is equal to one-half of the monthly benefit that you had accrued as of your death, payable in the form of a 50% Surviving Spouse Annuity. This takes into account the actuarial factors used to convert your accrued benefit to the 50% Joint & Surviving Spouse Annuity. The calculation will also apply the early commencement factors applicable to a Vested Benefit or Early Retirement Benefit, as applicable. NON-DUPLICATION OF BENEFITS If you participated in a Company retirement plan for bargaining unit employees prior to participating in this Plan, and if you receive Benefit Service under this Plan for service that was also credited under a bargaining unit plan, your benefits will be reduced by the amount of your bargaining unit pension plan benefits attributable to that service. You will, of course, receive the bargaining unit pension plan benefits you had accrued while you participated in that plan. 6

10 RETIREMENT DATE 1. Normal Retirement Date Your Normal Retirement Date is the first day of the month coincident with or next following your 65th birthday, or, if later, the 5th anniversary of the date your participation began. Your pension is fully vested as of your Normal Retirement Date, and you may begin to draw a monthly benefit upon actual retirement after reaching your Normal Retirement Date. If you choose to work past age 65, you will continue to earn Benefit Service until your actual retirement (subject to the general freeze on the accrual of future Benefit Service effective April 1, 2008 or March 1, 2011, as applicable). A monthly pension cannot begin while you are actively employed. Your benefit will be calculated using the formula in effect at the time you were last actively at work. If you continue to work past age 70½, special rules may apply. Please contact Employee Services at or in this situation. 2. Early Retirement Date Your Early Retirement Date, provided you have attained age 55 and have completed at least 10 years of Benefit Service at the time your employment ends, is the first day of any month after your employment ends that you elect to commence your pension benefit before your Normal Retirement Date. Rule of 65 Early Retirement: If the combination of your age and years of Benefit Service at the time your employment ends equals at least 65, you may elect an Early Retirement Benefit starting at age 55, or at the time your employment ends if you have attained age 55 at that time (a Rule of 65 Early Retirement). In this case, your benefit will be reduced for each month that precedes your Normal Retirement Date (age 65) using the Early Retirement Percentage Table (see table under Early Retirement Benefit heading), not the table that applies to terminated vested former employees. For (i) participants who elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan, (ii) participants who transfer to an Affiliate on or after April 1, 2008, and (iii) all other participants on and after March 1, 2011, Vesting Service is substituted for Benefit Service in the above calculation for periods of Service starting with the date of election or transfer, as applicable, or March 1, 2011, for all other participants. 3. Disability Retirement Date If you were eligible for a Disability Retirement Benefit as of March 1, 2011 (see Disability Retirement Benefit on page 10 of this SPD for more information), your Disability Retirement Date is your Normal Retirement Date. Disability Retirement Benefits are available only for Participants who have met the eligibility requirements as of March 1, BENEFIT FORMULA Your retirement benefit is based on a benefit formula. To fully understand how the formula works, you need to understand the following terms: Final Average Compensation: Your Final Average Compensation is your average compensation from the Company for the highest 5 consecutive full years of employment during the last 10 years ending with or immediately preceding the first to occur of the following dates: (i) your last day worked, (ii) April 1, 2008 for participants who elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan, and for participants who transfer to an Affiliate on or after April 1, 2008, and (iii) March 1, 2011 for all other participants. 7

11 In general, your compensation includes base salary, plus differentials, bonuses, and overtime. Partial years are not used in the calculation. Social Security Covered Compensation: The average of the Social Security taxable wage bases during the 35 years prior to the date you attain (or will attain) your Social Security normal retirement age. The Social Security taxable wage base is adjusted annually by the IRS and is based on the amount of wages subject to Social Security tax. (The Plan may use tables provided by the IRS that are developed by rounding the actual amounts of covered compensation for different years of birth.) Normal Retirement Benefit: A monthly benefit payable at your Normal Retirement Date as a Single Life Annuity. After these amounts are determined, they are used in the Benefit Formula to calculate your benefit. The Benefit Formula is: Final Average Compensation up to Social Security Covered Compensation Final Average Compensation in excess of Social Security Covered Compensation X 1.0% X PLUS + X 1.4% X Years of Benefit Service (Maximum = 35 Years) Years of Benefit Service (Maximum = 35 Years) This total is then divided by twelve (12) to determine your monthly benefit amount. When estimating your benefit amount, you should note that the Plan imposes certain limits on the maximum benefit that may be earned. For example, the Plan allows Participants to earn no more than 35 years of Benefit Service (for benefit accrual purposes); and the Plan stopped counting Service for benefit accrual purposes as of April 1, 2008 for Participants that elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan at that time, and as of March 1, 2011 for all other Participants who had not yet incurred a separation from Service with the Company. In addition, when calculating Final Average Compensation, for purposes of determining the highest five consecutive years of compensation used to determine Final Average Compensation, the Plan will not consider compensation paid after April 1, 2008 to Participants that elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan at that time, or compensation paid after March 1, 2011 to all other Participants who had not yet incurred a separation from Service with the Company. The Internal Revenue Code also imposes limits on the maximum compensation that may be considered each year. MINIMUM BENEFIT FORMULA Your Normal Retirement Benefit will not be less than the amount which results from multiplying the minimum benefit factor times your total years of Benefit Service. The minimum benefit factor has been increased over the years. Prior to July 1, 2001, the minimum benefit factor for all participants was $ For Participants who were actively employed on July 1, 2001, or who were first hired after July 1, 2001, the minimum benefit factor was increased for Participants regularly scheduled to work over 1,800 hours during a Plan Year to $36.50, as follows: 8

12 Years of Benefit Service (regularly scheduled for 1,800 hours) x $36.50 = Monthly Minimum Retirement Benefit Years of Benefit Service (not regularly scheduled for 1,800 hours) x $27.00 = Monthly Minimum Retirement Benefit NORMAL RETIREMENT BENEFIT If you retire at your Normal Retirement Date, your accrued benefit will be calculated under the Benefit Formula and under the Minimum Benefit Formula. The larger of the two amounts will be the monthly benefit for which you are eligible. If you are eligible for benefits under a Company bargaining unit employee retirement plan, your benefit under the bargaining unit plan will be subtracted from the amount calculated under the Plan. EARLY RETIREMENT BENEFIT If you are at least age 55 and have completed at least 10 years of Vesting Service at the time your employment terminates, you may choose Early Retirement and start your pension at the time of actual employment termination. Also, if you are under age 55 at the time your employment ends and have earned at least 10 years of Benefit Service, and if the combination of your age and years of Benefit Service at that time equals at least 65, you may also elect an Early Retirement Benefit starting at age 55 (referred to as a Rule of 65 Early Retirement). For (i) participants who elected to participate in the funded Retirement Contribution component of the Retirement Savings Plan, (ii) participants who transfer to an Affiliate on or after April 1, 2008, and (iii) all other participants on and after March 1, 2011, Vesting Service is substituted for Benefit Service in the above calculation for periods of Service starting with the date of election or transfer, as applicable, or March 1, 2011, for all other participants. Your Early Retirement Benefit is calculated in the same way as the Normal Retirement Benefit. The resulting benefit amount is multiplied by the appropriate early commencement factor from the Early Retirement Percentage Table shown below, and reduced to reflect the additional payments to be made because you will be receiving benefits earlier and, as a result, for a longer period of time. Early Retirement Percentage Table (For Retired Participants with 10 years of Vesting Service who terminate after age 55 or qualify for a Rule of 65 Early Retirement, beginning at age 55) Age When Benefit Begins Percentage of Benefit Payable % % % % % % % % % % 9

13 Age is determined by the number of full years and full months. For example, if you are 60 years, 11 months, and 20 days old, you would be considered 60 years and 11 months of age. Your percentage payable would be 96.75% based on straight-line interpolation. DISABILITY RETIREMENT BENEFIT If you became entitled to benefits under the Company s long-term disability plan ( LTD ) due to a disability incurred before March 1, 2011, you will be entitled to a Disability Retirement Benefit starting at your Normal Retirement Date. If your LTD benefits end later than your Normal Retirement Date, however, your Disability Retirement Date will be the date your LTD benefits end. A Disability Retirement Benefit is calculated in the same way as a Normal Retirement Benefit, with the following adjustments: the Benefit Formula is the formula in effect on the date your LTD benefits start, Final Average Compensation is determined based on your Compensation at its last effective rate immediately prior to your absence due to Disability for the duration thereof (but not for more than 5 Plan years), and any period of disability prior to your Normal Retirement Date will be included for calculating Benefit Service and Vesting Service; provided that in no event will any period of disability be included for calculating Benefit Service or Vesting Service on or after March 1, If you recover prior to Normal Retirement Date, any period of disability will be included for calculating Benefit Service and Vesting Service only if you return to work within 90 days after recovery. The Company may require proof of continuing disability, including a Company-paid medical examination, as a condition to receiving a Disability Retirement Benefit. If you refuse to provide proof of continuing disability, or do not return to work within 90 days after recovery, you will be treated as having terminated employment at the start of disability, and no Benefit Service (if applicable for periods of Service before March 1, 2011) or Vesting Service will be granted for any period of disability. PAYMENT OF BENEFIT LESS THAN $5,000 CASH VALUE If the actuarial present value of your pension is $1,000 or less at the time you retire or terminate employment, your accrued benefit will be paid to you in a single cash sum, as soon as practicable after termination of employment. If the actuarial present value of your pension in a lump sum is greater than $1,000 but less than $5,000 at the time you retire or terminate employment, your accrued benefit will automatically be transferred to an individual retirement account in your name selected by the Plan Administrator as soon as practicable after termination of employment, unless you make an affirmative election to accept immediate payout in a lump-sum or through a direct rollover to another eligible retirement plan. RETIREMENT BENEFIT PAYMENT OPTIONS If the value of your pension is greater than $5,000, your pension will be paid in the form of a monthly annuity, beginning at your Normal Retirement Date (unless you choose to start payments earlier or, effective December 1, 2014 if you are eligible, choose a lump sum payment). Prior to the time your pension becomes payable, the Plan Administrator will provide you with a general description of the material features and relative values of the available optional forms of benefit. This information will be provided to you no earlier than 180 days and no later than 30 days before your 10

14 pension commencement date. Each optional form of benefit is actuarially equivalent to the Single Life Annuity form of benefit. The Plan provides the following payment options when you retire (or, if you are entitled to a Vested Benefit, reach your earliest retirement age or, effective December 1, 2014 if you terminate employment on or after July 1, 2014 or if your long term disability benefits under the Company s long term disability plan terminate on or after July 1, 2014). Once an election of a payment option has been made and payments have begun, you cannot choose a different Payment Option. 1. Single Life Annuity: If you are not married on your pension commencement date, your pension will automatically be paid as a Single Life Annuity. Under a Single Life Annuity, you will receive a monthly pension equal to the full amount of your accrued benefit. Monthly payments are made for as long as you live. Upon your death, all payments stop. No benefits are payable after your death to your estate or any other beneficiary. If you are married on your pension commencement date, you may not elect the Single Life Annuity form of monthly pension unless your spouse consents to your election in writing and your spouse s signature is notarized and delivered to the Plan Administrator before your pension commencement date % Joint & Surviving Spouse Annuity: If you are married on your pension commencement date, your pension will automatically be paid as a 50% Joint & Surviving Spouse Annuity. If you wish to elect the Single Life Annuity option, your spouse must consent to the election in writing, and the consent must be notarized. If you wish to elect the 75% or, for pension commencement dates on or after age 55, 100% Joint & Surviving Spouse annuity option, written spousal consent is not required. Under 50% Joint & Surviving Spouse Annuity form, you receive a smaller benefit than under the Single Life Annuity. The reduced monthly benefit will be paid to you for as long as you live. Upon your death, your surviving spouse will receive fifty percent (50%) of the value of your monthly payment for the rest of his/her lifetime (the 50% Surviving Spouse Annuity). If your spouse dies before you, your monthly payments will continue at the current level for your lifetime and end at your death, and no benefits are payable after your death to any other beneficiary or to your estate. Surviving Spouse Annuity. The rights to a Surviving Spouse Annuity cannot be eliminated without the spouse s written and notarized consent, which must be provided before your pension commencement date to be valid. In addition, in the event of divorce or legal separation the right to a Surviving Spouse Annuity cannot be altered or modified without a qualified domestic relations order ( QDRO ). A QDRO is a court order that establishes the rights of a spouse to a benefit under the Plan upon divorce or legal separation, provided the order does not grant any rights not available under the Plan, and the order is approved by the Plan Administrator before it is entered by the court. The Plan Administrator will provide guidelines upon request. Surviving Spouse means your spouse at your actual pension commencement date. It does not mean your spouse at the time you terminate employment before your pension commencement date, or a person you may marry after your pension commencement date. If you are married at your pension commencement date and later divorce, your former spouse continues to be eligible for the Surviving Spouse Annuity, even if you later remarry. 11

15 Calculation of 50% Joint & Surviving Spouse Annuity. The percentage of your accrued benefit payable to you under the 50% Joint & Surviving Spouse Annuity is based upon your age and your spouse s age as of your pension commencement date. Samples of the percentages are shown below: AGE OF SPOUSE 50% JOINT & SURVIVING SPOUSE ANNUITY AGE OF PARTICIPANT WHEN PENSION BEGINS % 95.0% 93.3% 91.9% 89.4% An interpolation will be made for the age of the Participant on the basis of full years and full months of age. Age for the spouse will be rounded to the nearest age in full years. Factors for other ages are available upon request % Joint & Surviving Spouse Annuity: Under this option you receive a smaller benefit during your lifetime than under the 50% Joint & Surviving Spouse Annuity. The reduced monthly benefit will be paid to you for as long as you live. Upon your death, your surviving spouse will receive 75% of your monthly payment amount for the remainder of his/her lifetime. If your spouse dies before you, your monthly payments will continue at the current level for your lifetime and end at your death. If your spouse dies before you, no benefits are payable after your death to your estate or any other beneficiary. The percentage of your accrued benefit payable to you under the 75% Joint & Surviving Spouse Annuity is based upon your age and your spouse s age as of your pension commencement date. Samples of the percentages are shown below. AGE OF SPOUSE 75% JOINT & SURVIVING SPOUSE ANNUITY AGE OF PARTICIPANT WHEN PENSION BEGINS % 92.6% 90.3% 88.4% An interpolation will be made for the age of the Participant on the basis of full years and full months of age. Age for the spouse will be rounded to the nearest age in full years. Factors for other ages are available upon request. 12

16 4. 100% Joint & Surviving Spouse Annuity: Under this option, available if your pension commencement date is on or after your 55th birthday, you receive a smaller benefit than under the 50% or the 75% Joint & Surviving Spouse Annuity. The reduced monthly benefit will be paid to you for as long as you live. Upon your death, your surviving spouse will receive 100% of your monthly payment for the rest of his/her lifetime. If your spouse dies before you, your monthly payments will continue at the current level for your lifetime and end at your death. If your spouse dies before you, no benefits are payable after your death to your estate or any other beneficiary. If you live less than 3 years after your benefit starts, your spouse will receive the 50% Surviving Spouse Annuity after your death instead of the 100% Surviving Spouse Annuity. This rule does not apply if (i) you die of accidental causes during the 3-year period, or (ii) you provide proof of good health effective at the time your benefit starts. The percentage of your accrued benefit payable to you under the 100% Joint & Surviving Spouse Annuity is based upon your age and your spouse s age as of your pension commencement date. Samples of the percentages are shown below. AGE OF SPOUSE 100% JOINT & SURVIVING SPOUSE ANNUITY AGE OF PARTICIPANT WHEN PENSION BEGINS % 90.4% 87.5% 85.1% 80.8% An interpolation will be made for the age of the Participant on the basis of full years and full months of age. Age for the spouse will be rounded to the nearest age in full years. Factors for other ages are available upon request. 5. Lump Sum Payment: Effective December 1, 2014, under this option, if you terminate employment on or after July 1, 2014 or if your long term disability benefits under the Company s long term disability plan terminate on or after July 1, 2014, you receive a lump sum payment of the actuarial present value of your pension without taking into account any subsidy for Early Retirement. No benefits are payable after your death to your spouse, your estate or any other beneficiary. If you are married on your pension commencement date, you may not elect a lump sum payment unless your spouse consents in writing and your spouse s signature is notarized and delivered to the Plan Administrator before your pension commencement date. To determine the lump sum, the monthly single life annuity amount payable at age 65 is multiplied by 12 months, and then multiplied by a present value factor from a table provided by the plan s actuaries. This present value factor converts the stream of future monthly benefits into a present value, which is equal to the lump sum. The factor used in the calculation is specific to your age in years and months at the payment date of the lump sum. 13

17 The present value factors are based on assumptions regarding mortality (i.e., life expectancy) and interest rates, as dictated by IRS and DOL regulations. The factor table is updated annually for the lump sums paid that calendar year, and does not change during the year. Each year, the new factor table for the next calendar year is generally available in October. EXAMPLES OF BENEFIT CALCULATIONS AT NORMAL AND EARLY RETIREMENT DATES AND EARLY COMMENCEMENT OF VESTED BENEFITS The examples that follow are for an employee who was an active participant in the Plan as of March 1, 2011, and retires at Normal Retirement Age (65) effective October 31, Because the Final Average Compensation factor in the benefit formula is your average compensation for the last five (5) full calendar years ending before the date of retirement (subject to the general freeze on the accrual of future Benefit Service effective April 1, 2008 or March 1, 2011, as applicable) - - if you were an active Plan participant on March 1, 2011, your last full year of compensation was 2010 for calculating Final Average Compensation, regardless of when you retire or terminate employment in the future. Full-Year Year Compensation , , , , , *65, *66, *67, *68, *69,000 *5-Year Total *$335,000 *Highest 5 consecutive full years of pay = 2006 to 2010 $335,000/5 years = $67,000 Final Average Compensation Benefit Calculation at Normal Retirement Date Normal Retirement Age: 65 Years of Benefit Service 30 Final Average Compensation $67,000 Social Security Covered $63,000 Compensation Spouse Age 65 14

18 $63,000 X 1.0% X 30 Years = $18,900 PLUS + $4,000 X 1.4% X 30 Years = $1,680 TOTAL annual benefit = $20,580 monthly benefit $1,715 The monthly benefit is also calculated under the Minimum Benefit formula as follows (assuming you are scheduled to perform over 1,800 Hours of Service each Plan Year). 30 years x $36.50 = $1,095 The larger amount of the two formula calculations is your accrued benefit. In this example your accrued benefit is $1,715. After your accrued monthly benefit is determined, the benefit options can be calculated. The Joint & Surviving Spouse Annuity Percentage Tables are used to calculate your pension benefit under each Joint and Surviving Spouse Option based upon your accrued benefit, your age and your spouse s age when you retire. In this example, we will assume that both you and your spouse are age 65. The following summary indicates the difference in monthly benefits for the options in the above example. BENEFIT PAYMENT OPTION JOINT & SURVIVING SPOUSE FACTOR PARTICIPANT S MO. BENEFIT SURVIVING SPOUSE S MO. BENEFIT Single Life Annuity n/a $1,715 $-0-50% Joint & Surviving Spouse Annuity 75% Joint & Surviving Spouse Annuity 100% Joint & Surviving Spouse Annuity 89.4% $1,533 $ % $1,456 $1, % $1,386 $1,386 In addition, effective December 1, 2014, if you terminate employment on or after July 1, 2014, the lump sum payment option would be available. Lump sum payments are determined using the actuarial factors set forth in the Plan. Benefit Calculation at Early Retirement Date Retirement Age: 60 Years of Benefit Service 25 Final Average Compensation $67,000 Social Security Covered Compensation $75,000 Spouse Age 60 15

19 $67,000 X 1.0% X 25 Years = $16,750 PLUS X 1.4% X 25 Years = -0- TOTAL annual benefit at Normal Retirement Age = $16,750 monthly benefit $1,396 The monthly benefit is also calculated under the Minimum Benefit formula as follows (assuming your last day of employment was October 31, 2015, as in the previous example). 25 years x $36.50 = $913 After your accrued monthly benefit at Normal Retirement is determined, your accrued benefit at Early Retirement can be calculated. The Early Retirement Percentage Table is used to calculate your benefit at Early Retirement based upon your age at Early Retirement (assumed to be age 60 in this example.) Monthly Benefit at Early Retirement: Your Monthly Benefit at Early Retirement is a percentage of your benefit at your Normal Retirement Date derived from the Early Retirement Percentage Table, as follows: $1,396 x 94.0% = $1,312 After your monthly benefit at Early Retirement is determined, the benefit options can be calculated. The following summary indicates the difference in monthly benefits for the options in the above examples for Early Retirement: BENEFIT PAYMENT OPTION JOINT & SURVIVING SPOUSE FACTOR PARTICIPANT S MO. BENEFIT SURVIVING SPOUSE S MO. BENEFIT Single Life Annuity n/a $1,312 $-0-50% Joint & Surviving Spouse Annuity 75% Joint & Surviving Spouse Annuity 100% Joint & Surviving Spouse Annuity 91.7% $1,203 $ % $1,156 $ % $1,111 $1,111 In addition, effective December 1, 2014, if you terminate employment on or after July 1, 2014, the lump sum payment option would be available. Lump sum payments are determined using the actuarial factors set forth in the Plan without taking into account any subsidy for Early Retirement. Benefit Calculation for Early Commencement of Vested Benefit Age Employment Ends: 45 Benefit Commencement Age: 60 Years of Benefit Service 15 Final Average Compensation $67,000 Social Security Covered Compensation $75,000 Spouse Age 60 16

20 $67,000 X 1.0% X 15 Years = $10,050 PLUS X 1.4% X 15 Years = -0- TOTAL annual benefit at Normal Retirement Age = $10,050 monthly benefit $838 The monthly benefit is also calculated under the Minimum Benefit formula as follows (assuming your last day of employment was October 31, 2015, as in the previous example). 15 years x $36.50 = $548 After your accrued monthly benefit at Normal Retirement is determined, your accrued benefit at early commencement can be calculated, using the early commencement percentage table for vested participants who terminate employment before retirement eligibility. The percentage from that table is used to calculate your benefit at early commencement, based upon your age at early commencement (assumed to be age 60 in this example.) Monthly Benefit at Early Commencement: Your Monthly Benefit at early commencement is a percentage of your benefit at your Normal Retirement Date derived from the early commencement percentage table, as follows: $838 x 58.0% = $486 After your monthly benefit at early commencement is determined, the benefit options can be calculated. The following summary indicates the difference in monthly benefits for the options in the above examples for early commencement: BENEFIT PAYMENT OPTION JOINT & SURVIVING SPOUSE FACTOR PARTICIPANT S MO. BENEFIT SURVIVING SPOUSE S MO. BENEFIT Single Life Annuity n/a $486 $-0-50% Joint & Surviving Spouse Annuity 75% Joint & Surviving Spouse Annuity 100% Joint & Surviving Spouse Annuity 91.7% $445 $ % $428 $ % $411 $411 In addition, effective December 1, 2014, if you terminate employment on or after July 1, 2014, the lump sum payment option is available. Lump sum payments are determined using the actuarial factors set forth in the Plan. 17

21 1. Plan Identification and Classification OTHER IMPORTANT FACTS The Plan is registered with the Internal Revenue Service under: a. Employer Identification No b. Plan No. 035 The Plan is a defined benefit plan as defined by the Employee Retirement Income Security Act of 1974 ( ERISA ). 2. Plan Administration The Plan is sponsored by Appvion, Inc., 825 E. Wisconsin Avenue, P.O. Box 359 Appleton, WI, The Company s Board of Directors has appointed the Benefit Finance Committee as the Plan Administrator and to manage the assets of the Plan. The Plan Administrator may be contacted at: Benefit Finance Committee Appvion, Inc. 825 E. Wisconsin Avenue, P.O. Box 359 Appleton, WI (920) The Plan Administrator is responsible for the day-to-day administration of the Plan, which includes maintaining records on each Participant with such records being maintained on a Plan Year basis which ends on December 31. The Plan Administrator s responsibilities also include authorizing payment of benefits and interpreting the Plan. If you have any questions, you should contact Employee Services at or Procedure to Obtain Benefits A claim must be filed to receive any benefits under the Plan. It is suggested that you file approximately three (3) months before the date of your monthly benefits are to begin to allow enough time for your claim to be processed. If your claim is denied, you may follow an appeal process, described below. 4. Claim Denial and Appeal Procedure a. Notice of Claim Denial. If you have made a claim for benefits under the Plan and any portion of the claim is denied, you will receive a written notice within 90 days after receipt of the claim stating the specific reasons for the denial, specific reference to pertinent Plan provisions upon which the denial was based, a description of any additional information or material necessary to perfect the claim and an explanation of why such information or material is necessary, and appropriate information as to the steps to take if you wish to submit the claim for review. If special circumstances require additional time to process your claim, the Plan Administrator may extend the time for processing the claim, not to exceed 90 additional 18

22 days. Prior to the expiration of the initial 90 day period, you will be advised in writing if an extension is necessary, stating the special circumstances requiring the extension and the date by which you can expect a decision. b. How to Appeal a Denied Claim. 5. Plan Documents 6. Data Within 60 days after the date written notice denying a claim is provided, you or your authorized representative may write to the Plan Administrator, requesting a review of that decision. Your request for review may contain such issues and comments as you wish considered in the review. You may also review pertinent documents in the Plan Administrator s possession. The Plan Administrator will make a final determination with respect to your claim within 60 days after receipt of your request for review. A final decision will set forth the specific reasons for the determination and the specific references to any pertinent plan provisions upon which the determination is based. If special circumstances require additional time to process your claim, the Plan Administrator may extend the time for processing the claim, not to exceed 90 additional days. Prior to the expiration of the initial 90-day period, you will be advised in writing if an extension is necessary, stating the special circumstances requiring the extension and the date by which you can expect a final decision. If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court, as described in the Rights and Protection of Participants section of this Summary Plan Description. However, by participating in the Plan, you agree for yourself and your beneficiaries that no legal or equitable action may be filed against the Plan or any fiduciary with respect to a claim for benefits (or other equitable relief) more than one hundred eighty (180) days after the Plan Administrator (or other appropriate named fiduciary) makes a final determination to deny the claim. In all events, you must exhaust all levels of the Plan s claims procedure before you can bring an action at law or equity against the Plan or any fiduciary of the Plan. This Summary Plan Description ( SPD ) is a summary of the key features of your Retirement Plan. Complete details of the Plan can be found in the official Plan Document, which is the governing document in all cases. The Plan Document, the Trust Agreement, the latest Summary Plan Description and Annual Report as filed with the Department of Labor, as well as other appropriate Plan documents will be made available for your examination during regular working hours at the address of the Plan Administrator designated in this summary and at other appropriate locations, at no charge. In addition, a copy of these Plan documents will be provided to you by your Plan Administrator at a reasonable charge not to exceed 25 per page. If you wish to obtain a copy of any of the Plan documents, you must submit a written request to your Plan Administrator, making certain to specify (i) the Plan name, (ii) the specific Plan documents(s), (iii) individual page(s) identification, and (iv) return mailing address. You will then be provided a Notice specifying the charge which you must pay. The Notice must then be signed and returned to your Plan Administrator accompanied by the full amount of the charge. Each employee, retired employee or beneficiary must furnish to the Company or trustee, such documents, evidence or information as considered necessary or desirable for the purpose of administering the Plan or to protect the Company or trustee. The Plan also requires that such person must promptly furnish true and complete data, evidence or information and sign such 19