AMENDMENT TO CENTRAL MICHIGAN UNIVERSITY 403(b) BASIC RETIREMENT PLAN. This is an amendment by Central Michigan University ( University ).

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1 AMENDMENT TO CENTRAL MICHIGAN UNIVERSITY 403(b) BASIC RETIREMENT PLAN This is an amendment by Central Michigan University ( University ). R E C I T A L S The University amended and restated the Central Michigan University 403(b) Basic Retirement Plan, formerly the Central Michigan University 403(b) Optional Retirement Plan ( plan ), by instrument dated December 30, 2008, effective January 1, The plan was amended effective as of January 1, 2009, by an instrument dated October 26, 2009, and was subsequently amended effective as of January 1, 2009, by instrument dated November 24, WHEREAS, the University desires to amend the plan to reflect certain required and optional design changes and clarify existing provisions; WHEREAS, the University must amend the plan to reflect certain provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 ("HEART") and the Worker, Retiree, and Employer Recovery Act of 2008 ("WRERA"); WHEREAS, this Amendment is intended as further good faith compliance with the written plan requirement of Regulations Section 1.403(b)-3(b)(3) and other requirements of the Code Section 403(b) Regulations, and the requirements of HEART and WRERA, and is to be construed in accordance with any guidance issued thereunder; WHEREAS, this Amendment supersedes the provisions of the plan to the extent those provisions are affected by or inconsistent with the provisions of this Amendment; WHEREAS, Section 7.1 of the plan empowers the University to amend the plan; NOW, THEREFORE, the University amends the plan, effective as January 1, 2014, unless another effective date is set forth below, as follows: 1. The following sentence is added to Section 2.2(b): Post-Doctoral Research Fellows are not eligible to participate in this plan.

2 2. Effective January 1, 2009, the following paragraph is added to the end of Section 2.2(d): Notwithstanding anything in this Section 2.2(d) to the contrary, this election shall cease to apply when an individual s employment terminates and shall not preclude a disabled participant from receiving contributions provided for pursuant to the University s long-term disability policy or any applicable collective bargaining agreement. Further, it shall not preclude an at-will Professional and Administrative or Senior Officer employee entitled to receive a contractually agreed upon contribution under this plan. 3. Effective January 1, 2009, the following paragraph is added to the end of Section 3.1: To the extent provided for under the University s long term disability policy and/or any applicable collective bargaining agreement, contributions may made on behalf of any University employee receiving long-term disability benefits in the amount specified by the applicable policy or collective bargaining agreement. Notwithstanding anything in the plan to the contrary, an employee not previously eligible to participate in the plan who becomes disabled and entitled to receive a contribution shall become eligible to participate in the plan on the date the employee becomes eligible to receive this contribution. Further, the University, in its discretion, may make a nonelective contribution to the plan on behalf of a former employee as provided under Regulations Section 1.403(b) 4(d). 4. Effective January 1, 2009, Recognized Compensation is replaced in its entirety with the following: 3.2 Recognized Compensation. "Recognized Compensation" of a Participant from the University for any year means the amount determined by the University to be the total earnings paid to the Participant during the Plan Year for service as an eligible employee, subject to the following: (a) Included Amounts. Recognized Compensation includes any contributions made by pre-tax salary reductions to any Code Section 403(b) plan and any other portion of the Participant's income deferred and excluded from current taxation under Code Sections 401(k) (a qualified cash or deferred arrangement); 402A (a qualified Roth contribution program); 408(k)(6) (a simplified employee pension plan); 408(p)(2)(A)(ii) (a SIMPLE retirement plan); 457(b) (a deferred compensation plan of governments and tax-exempts); or 501(c)(18) (a pre-june 25, 1959, employee contributions only plan). Recognized compensation also includes any amount that is excluded from gross income pursuant to Code Sections 132(f)(4) or 125 (including 2

3 Deemed Section 125 Compensation 1 ). For all eligible Participants, Recognized Compensation also includes the value of paid time off as actually used and paid. (b) Compensation Paid after Employment Terminates. If paid by the later of 2½ months after the Participant's employment terminates or the end of the Plan Year that includes the date of termination, recognized Compensation also includes regular compensation for services performed during the Participant's regular working hours and compensation for services performed outside the Participant's regular working hours (such as overtime or shift differential), provided it would have been Recognized Compensation under this Section 3.2 and would have been paid if the Participant continued in employment with the University; and (c) Professional and Administrative or Senior Officer Contract Payments. Recognized Compensation includes contractually agreed upon payments to an at-will Professional and Administrative or Senior Officer employee. (d) Excluded Amounts. Except as provided in (c), Recognized Compensation does not include any compensation paid to the Participant in a single sum, or in a form other than a single sum, that is classified by the University as bonus pay, retirement incentives, excellence awards, retirement service awards, payback, pay in lieu of unused leave at retirement or termination, longevity pay, staff and temporary faculty supplemental pay, staff and temporary faculty special assignment pay, staff and temporary faculty pay for on-campus employees teaching ProfEd courses, subsistence pay, severance pay, payments in lieu of notice of termination, and University contributions for insurance or other employee benefit or fringe benefit plans. (e) LTD Recipients. When a Participant is receiving long term disability benefits, the benefits shall be included in Recognized Compensation. (f) Maximum. Recognized Compensation of a Participant for any Plan Year shall not exceed $260,000, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Internal Revenue Code for periods after "Deemed Section 125 Compensation" means employee elective contributions for payment of group health coverage that are not available to a Participant in cash because the Participant is unable to certify to alternative health coverage. These amounts are only considered Deemed Section 125 Compensation if the University does not request or collect information regarding the Participant's alternative health coverage as part of the enrollment process for the group health plan. 3

4 5. Effective January 1, 2009, Section 3.3 is replaced in its entirety with the following: 3.3 Limitation on Annual Additions. The total Annual Additions for a Participant for any Limitation Year shall not exceed the Maximum Annual Contribution under (b) below. (a) Limitation Year. Except as provided below, "Limitation Year" means the Plan Year as defined in Section 1.4. (i) Change. If the Limitation Year is changed to a different 12-month period, the new Limitation Year must begin on a date within the Limitation Year in which the change is effective. A Limitation Year may be changed only as permitted under Regulations Section 1.415(j)-1(d). In addition, to change the Limitation Year of a Participant, a Participant must attach a statement to the Participant's income tax return for the taxable year in which the change is made as described in Regulations Section 1.415(j)-1(e). (ii) Short Limitation Year. When there is a short Limitation Year, the maximum Annual Additions for a Participant shall not exceed the Defined Contribution Dollar Limit multiplied by a fraction. The numerator of the fraction is the number of months in the short Limitation Year and the denominator is 12. (iii) Participant Controls Employer. Notwithstanding any other provision in this Section 4.5(a), if a Participant is in control of an employer as described in (e)(ii) below, the Limitation Year is the limitation year of the employer controlled by the Participant. (iv) Plan Termination. If the Plan is terminated effective as of a date other than the last day of the Plan's Limitation Year, the Plan is deemed amended to end the Limitation Year on the date of termination. As a result of this deemed amendment, the Defined Contribution Dollar Limit for the short Limitation Year must be prorated under the short Limitation Year rules in (ii) above. (b) Maximum Annual Contribution. The Maximum Annual Contribution for the Limitation Year is the lesser of the Percentage Limit or the Defined Contribution Dollar Limit. (i) Percentage Limit. "Percentage Limit" means 100% of the Participant's Includible Compensation for the Limitation Year. (ii) Defined Contribution Dollar Limit. "Defined Contribution Dollar Limit" means $49,000 (as adjusted under Code Section 415(d)). 4

5 (c) Annual Additions. "Annual Additions" for a Participant for a Limitation Year means the sum of: (i) Employer Contributions and Forfeitures. The Participant's share of employer contributions and forfeitures; (ii) After-Tax Employee Contributions. The Participant's after-tax employee contributions; (iii) Post-Retirement Medical Benefits Accounts. For purposes of the Defined Contribution Dollar Limit and for Limitation Years beginning after December 31, 1985, amounts allocated to a separate post-retirement medical benefits account of a Key Employee, as defined in Code Section 419A(d)(3), under a welfare benefit fund, as defined in Code Section 419(e); (iv) Individual Medical Benefits Accounts. For purposes of the Defined Contribution Dollar Limit, contributions allocated for Limitation Years beginning after March 31, 1984, to an individual medical benefit account in a pension or annuity plan, as defined in Code Section 415(l)(2); (v) Excess Deferrals. For the Limitation Years during which these amounts are contributed, excess elective contributions that are not distributed to a Participant by the first April 15th following the end of the Participant's taxable year; (vi) Excess Annual Addition Applied. An excess Annual Addition from the preceding Limitation Year applied to reduce the University Contributions for the current Plan Year; (vii) Other Plans. Contributions to the defined contribution plan of any employer that is controlled by the Participant as described in (e)(ii) below; and (viii) Additional Amounts. Any additional amounts, if any, required by the Regulations under Code Section 415. (d) Includible Compensation. "Includible Compensation" means a Participant's actual wages in box 1 of Form W-2 for a year of service (as that term is defined under Regulations 1.403(b)-4(e)) to the University and any other eligible employers required to be aggregated for this purpose (as determined under (e)(i) and (ii) below), but subject to a maximum of $245,000 (or any higher maximum that may apply under Code Section 401(a)(17)) and increased (up to the dollar maximum) by any compensation reduction election under Code Sections 125, 132(f), 401(k), 403(b), or 457(b). (i) Exclusion. Includible Compensation does not include any compensation received during a period when an employer (other an employer controlled 5

6 by the participant as described in (e)(ii) below) is not an eligible employer within the meaning of Code Section 403(b) and Regulations Section 1.403(b)-2(b)(11). (ii) Community Property Laws. The amount of Includible Compensation is determined without regard to community property laws. (iii) Special Rule for Former Employees. For purposes of determining the Maximum Annual Contribution permitted for a former employee, a former employee is deemed to have monthly Includible Compensation for the period through the end of the taxable year in which employment ceased and through the end of each of the next five taxable years. The monthly amount is equal to one-twelfth of the former employee's Includible Compensation during the former employee's most recent year of service as described in Regulations Section 1.403(b)-4(e). (iv) Estimation. Until Includible Compensation is actually determinable, the University may use a reasonable estimate of Includible Compensation. As soon as administratively feasible, actual Includible Compensation shall be determined. (v) Qualified Military Service. Effective for plan years beginning after December 31, 2008, the Participant s Includible Compensation shall include differential wage payments, as defined under Code Section 3401(h)(2), made by the University to the Participant with respect to any period during which the Participant is performing Qualified Military Service for a period of more than 30 days. Differential wage payments as described in the preceding sentence shall be included only for purposes of determining compliance with Code Section 415 and Regulations and in no event, notwithstanding any other provision of this plan to the contrary, shall any contribution or benefit under this plan be based on the differential wage payment. (e) Aggregation. For purposes of applying Sections 4.5 and 4.6 of this plan, aggregation shall be required in the situations described below. (i) 403(b) Contracts. All 403(b) contracts or plans deemed to be maintained by a Participant for the Limitation Year under Regulations Section 1.415(f)- 1(f)(1) shall be aggregated and treated as purchased under a single contract. (ii) Other Plans. If applicable, the defined contribution plans (as defined in Regulations Section 1.415(c)-1(a)) of any employer that is controlled by a Participant during the Limitation Year (whether or not the employer controlled by the Participant is the employer maintaining this plan) shall be aggregated with the plans described in (i) above for purposes of applying Sections 4.5 and 4.6 to the Participant. Whether an employer is controlled by a Participant is determined under Regulations Sections 1.415(f)-1(f) and 1.415(a)-1(f)(1) and (2) which take into account the affiliated employer rules in Code Section 414. (iii) Contributions. For a Limitation Year, the contributions made to a 403(b) contract deemed to be maintained by a Participant under Regulations Section 6

7 1.415(f)-1(f)(1) and the contributions made to any other plan of an employer controlled by the Participant (as defined in (ii) above) shall be aggregated. If contributions to a contract under this plan are aggregated with contributions to any other plan, this plan and the other plan or plans must satisfy the limitation on Annual Additions both separately and on an aggregate basis as described in Regulations Section 1.415(f)- 1(f)(3). (iv) Compensation. A Participant's Includible Compensation from the University, and, if applicable, any other eligible employer under Regulations Section 1.403(b)-2(b)(11) (including an employer controlled by the Participant within the meaning of (ii) above) shall be aggregated as described in Regulations Section 1.415(c)-2(g). (f) Section 415 Regulations. This Section 4.5 shall be administered in accordance with Regulations issued under Code Section 415 and those Regulations are incorporated into this Plan to the extent inconsistent with or not covered by the foregoing provisions. (g) Excess Annual Additions. (i) Prevention. If it is discovered that a proposed contribution to this plan will cause the Annual Additions limitation to be exceeded for a Participant, the Base Retirement Contribution for the Plan Year will be reduced to the maximum amount permitted for the Participant under Section 4.5. (ii) Separate Accounting and Distribution. Any contribution that exceeds the Annual Additions limitation for the Plan Year ( Excess Annual Addition ) either shall be separately accounted for and not treated as a 403(b) contract or handled in accordance with the requirements of the Employee Plans Compliance Resolution System (EPCRS). Notwithstanding the distribution rules under Article 5, if a Participant s Excess Annual Additions are held in a separate account not treated as a 403(b) contract, they may be distributed from the separate account in accordance with Regulations Section 1.403(b)-4(f) and any other applicable IRS guidance. (iii) Taxation. Any Excess Annual Addition under this plan shall be included in the Participant's gross income for the calendar year for which it is contributed. 6. Effective January 1, 2009, the title of Section 3.5 is revised to be Make-Up Contributions Under USERRA and HEART and the following paragraph is added as a new subsection (d): (i) Disability or Death While Performing Qualified Military Service. Notwithstanding anything to the contrary, if a Participant suffers a disability or dies while performing Qualified Military Service and the Participant was entitled to reemployment 7

8 rights under USERRA immediately before the Participant s disability or death, the Participant or, in the case of the Participant s death, the Participant s Beneficiary shall be entitled to any additional benefits (including, without limitation, accelerated vesting, credit for service for vesting purposes, and any survivor benefit, and benefit accruals relating to the period of Qualified Military Service) that would have been provided under the plan had the Participant resumed employment with the Employer and then terminated employment due to disability or death. 7. The following paragraph is added to the end of Section 5.2 entitled Valuation for Distribution : Revenue generated by the investment of plan assets (including, but not limited to 12b-1 fees, sub-transfer agency fees or shareholder servicing fees) may be allocated as the University determines, in its sole discretion, as additional investment experience, per capita to each Participant, to pay or offset administrative expenses incurred in the operation and administration of this plan, or in any other nondiscriminatory manner determined by the University. If revenue is held as a plan asset by a Funding Agent pending allocation, the revenue may, in the University s discretion, be held uninvested or invested through the date of allocation. 8. Effective January 1, 2009, the following paragraph is added after the first paragraph of Section 5.4: Notwithstanding the preceding paragraph, a Participant or Beneficiary who would have been required to receive a Minimum Distribution for 2009 but for the enactment of Code Section 401(a)(9)(H) will receive such distribution(s) for 2009 unless the Participant or Beneficiary chooses not to receive the distribution(s). In addition, notwithstanding Section 5.3 of the plan, and solely for purposes of applying the direct rollover provisions of the plan, a direct rollover will be offered only for distributions that would be eligible rollover distributions without regard to Code Section 401(a)(9)(H). 9. Section 5.9 is amended to add a new subsection (d): (d) Lost Recipient/Forfeiture. If a Person entitled to a payment cannot be located or if a distribution has been made but the recipient for any reason does not cash the distribution check, the Participant's account shall be forfeited as of the date the University certifies to the Funding Agent that the Person cannot be located and/or payment cannot be made. The Participant's account balance shall be restored if the Person entitled to the payment submits a written election of method of payment. Forfeitures shall be allocated first to restore any forfeited amounts that are required to be restored under this Section 5.9. Any remaining forfeitures shall be 8

10 SCHEDULE A Classification Time Period and Rates Salaried Professional and Administrative Participant before 1/1/ % Participant on or after 1/1/ % Hourly Professional and Administrative Participant on or after 1/1/1996 4% through 12/31/2000 6% effective 1/1/2001 through 6/30/2007 8% effective 7/1/ % effective 7/1/2013 Police Sergeant or Detective Sergeant positions from 7/1/2004 through 3/7/2012. These employees became members of a separate classification of Union Police Sergeants effective 3/8/ % effective 07/01/2014 University President and, effective as of July 1, 2009 June 30, 2010 Dean of the Medical School Senior Officer other than University President and from July 1, 2009 June 30/, 2010, Dean of the Medical School Amount specified in employment agreement Participant before 1/1/ % Participant on or after 1/1/ % Regular Faculty Participant before 9/1/

11 12% Participant on or after 9/1/ % Medical Faculty Participant on or after 7/1/ % Fixed-Term Faculty Participant before 9/1/ % (drops to 10% if there is a break in service of one semester or longer) Participant on or after 9/1/ % Union Hourly Office Professional Participant on or after 1/1/1996 4% through 12/31/2000 6% effective 1/1/ % effective 7/1/2010 8% effective 7/1/ % effective 7/1/ % effective 7/1/ % effective 7/1/2015 Union Hourly Supervisory Technical Participant on or after 1/1/1996 4% through 6/30/2001 6% effective 7/1/2001 through 6/30/07 8% effective 7/1/ % effective 7/1/ % effective 7/1/

12 10% effective 7/1/2015 Union Hourly Service Maintenance Participant on or after 1/1/1996 4% through 6/30/2002 5% effective 7/1/2002 through 6/30/2005 6% effective 7/1/2005 through 6/30/2008 8% effective 7/1/ % effective 07/01/ % effective 07/01/ % effective 07/01/2016 Union Hourly Public Broadcasting Participant on or after 1/1/ % through 6/30/1999 4% effective 7/1/1999 through 6/30/2002 6% effective 7/1/2002 8% effective 7/1/ % effective 7/1/2012 Union Hourly Police Participant on or after 1/1/1996 5% through 6/30/1999 7% effective 7/1/1999 through 6/30/2000 9% effective 7/1/2000 through 6/30/ % effective 7/1/2001 through 6/30/2002 Participant on or after 7/1/ % 12

13 Union Hourly Command Officer Participant on or after 1/1/1996 5% through 6/30/1999 7% effective 7/1/1999 through 6/30/2000 9% effective 7/1/2000 through 6/30/ % effective 7/1/2001 through 6/30/2004 Effective June 11, 2002, the Command Officers (COAM) union was formally recognized as a separate union from POAM (Police). Effective July 1, 2004, COAM ceased to exist as a separate classification and the employees became members of the Hourly Professional and Administrative classification Union Police Sergeant 10% effective 3/8/2012 Effective March 8, 2012, the Fraternal Order of Police Labor Council (FOPLC) was formally recognized and the employees became members of a separate classification from the Hourly Professional and Administrative classification 13

CENTRAL MICHIGAN UNIVERSITY 403(b) BASIC RETIREMENT PLAN

CENTRAL MICHIGAN UNIVERSITY 403(b) BASIC RETIREMENT PLAN (Restated January 1, 2009) Warner Norcross & Judd LLP 900 Fifth Third Center 111 Lyon Street, N.W. Grand Rapids, Michigan 49503-2487 TABLE OF CONTENTS