THE PRINCETON HEALTHCARE SYSTEM RETIREMENT PLAN SUMMARY PLAN DESCRIPTION

Transcription

1 THE PRINCETON HEALTHCARE SYSTEM RETIREMENT PLAN SUMMARY PLAN DESCRIPTION # v5 ( )

2 This Summary Plan Description (also referred to as SPD ) is not intended to be the legal Plan document and if there is a discrepancy between this SPD and the official Plan document, the official Plan document will control. Princeton HealthCare System reserves the right to amend, modify, suspend or terminate the Plan at any time, in whole or in part for any reason Princeton HealthCare System deems appropriate. Participation in the Plan is not a guarantee of continued employment with Princeton HealthCare System. There is no guarantee that benefit levels will remain unchanged in future years. If you have any questions after reading this SPD, please contact Transamerica Retirement Solutions at

3 HIGHLIGHTS OF THE RETIREMENT PLAN Introduction Page 1 This Summary Plan Description describes the features of the Princeton HealthCare System Retirement Plan (the Plan ) as amended and restated January 1, This Summary Plan Description describes the Plan features only as they apply to Participants who were employed by Princeton HealthCare System ( PHCS ), or a company affiliated with PHCS that participates in the Plan, on or after January 1, Who Is Eligible Page 2 Generally, all full-time or part-time employees of PHCS, or a company affiliated with PHCS that participates in the Plan, are eligible. See the section entitled Eligibility and Participation later in this Summary for more details. When Participation Begins Page 3 If you were an eligible employee and you were hired or rehired by PHCS or a company affiliated with PHCS that participates in the Plan prior to January 1, 2011, then you became a participant in the Plan as of January 1, Otherwise, generally, you will become a participant in the Plan after you attain age 21 and complete one year of service. How Your Benefit Is Calculated Pages 3-5 The Plan is an account-based pension plan, which means that each participant has a bookkeeping account within the Plan. Each Plan Year, your Employer will make contributions to your account called company credits based on your eligible pay and years of service. Your account will also be credited with investment gains and losses based on the investment results of the funds in which you choose to invest your account balance. No contributions will be required or accepted from you. Vesting Page 5 You will become vested when you complete 3 years of service. You will also become vested if you are actively employed and you attain age 65, die or become totally disabled. When Your Benefit Is Paid Pages 6-7 You or your beneficiary will be eligible to receive the vested portion of the balance in your account when you terminate employment, retire, become totally disabled or die. Generally, you may elect to choose to receive your benefit in the form of a cash lump sum, a rollover to another eligible retirement plan or in monthly installments over a period of ten years. -1-

4 I. Introduction The Princeton HealthCare System ( PHCS ) has established The Princeton HealthCare System Retirement Plan (the Plan ) effective January 1, The Plan is maintained for the exclusive benefit of the eligible employees of PHCS and any company affiliated with PHCS that participates in the Plan (a Participating Company ). PHCS or the Participating Company by whom you are employed are referred to in this SPD as your Employer. II. Eligibility and Participation Eligible Employees If you were hired or rehired prior to January 1, 2011, and you are an otherwise eligible employee, then you are eligible to participate in the Plan as of January 1, If you were hired or rehired after January 1, 2011, and you are an otherwise eligible employee, then you are eligible to participate in the Plan as of the later of January 1, 2012 or the first day of the month that coincides with or next follows the date you have completed one year of service and have attained the age of 21. You are an eligible employee if you are an employee of PHCS or a Participating Company. However, you are not an eligible employee if: you are covered by a collective bargaining agreement, unless the agreement provides for Plan participation; you are treated as a leased employee or classified as not being an employee of PHCS or a Participating Company (even if you are retroactively characterized as an employee for certain purposes); you are not on an employee payroll of PHCS or a Participating Company or if PHCS or a Participating Company does not report your wages on Form W-2; or you have entered into an agreement with PHCS or a Participating Company that excludes you from participation in its employee benefit plans (even if you are treated as an employee for certain specified purposes). How Your Service With The Company Is Counted For purposes of this Summary Plan Description, a year of service for purposes of eligibility to participate and vesting is generally a calendar year in which you are credited with 1,000 or more hours of service. The exception to this is that when you are first hired, for purposes of eligibility to participate, you will be credited with a year of service if you are credited with 1,000 or more hours of service in the first 12 months of your employment. If you are not credited with 1,000 or more hours of service in the first 12 months of your employment, -2-

5 then your eligibility will thereafter be determined based on the calendar year, starting with the January 1 that falls within your first 12 months of employment. If you participated in the Plan and ceased to be an eligible employee (either because you terminated employment or transferred to an affiliated company that does not participate in the Plan), and you are reemployed by PHCS or a Participating Company before a 1-year break in service occurs, you will continue to participate in the Plan as of the date you are rehired without loss of your prior accrued benefit (assuming you had not taken a distribution). If you were not vested in your Accounts when your employment terminated, and you are reemployed after a 1-year break in service occurs, you will be credited with your prior years of service if the number of years between your termination date and your re-hire date is less than the greater of (a) your credited years of service or (b) five. Participation If you are an eligible employee as described above and you were hired or rehired prior to January 1, 2011, then you became a participant in the Plan as of January 1, If you are an eligible employee and were hired or rehired after January 1, 2011, then you will become a participant in the Plan as of the first day of the month coincident with or next following the date you have completed one year of service (as described above) and attained age 21, or if earlier, January 1, Rehires If you were hired or rehired after January 1, 2011, as discussed above, you must have one year of service in order to be eligible to participate in the Plan. If your employment with PHCS or a Participating Company ends before you complete one year of service and you are rehired within one year following your termination date, your period of service for purposes of determining your eligibility for the Plan will include the service you earned prior to your termination date. If you are a participant in the Plan and your employment with PHCS or Participating Company ends, and you are rehired within one year following your termination date, your period of service for purposes of determining your eligibility for the Plan will include the service you earned prior to your termination date. III. Your Account Here is the formula that is used to determine the balance of your account. Each participant s account is credited with the sum of: (a) (b) company credits, plus investment gains and losses. -3-

6 Here s what the terms mean: Company Credits This is the amount that your Employer will contribute to your account for each Plan Year in which you are an eligible employee and you complete a year of service during that Plan Year. It is equal to the percentage of your eligible pay for the Plan Year determined under the following table, based on your years of service as of the last day of the Plan Year: Years of Service Company Credits 1 7 Years of Service 2.5% of eligible pay, plus 3% of eligible pay in excess of 2/3 of the Taxable Wage Base for the Plan Year 8-14 Years of Service 3% of eligible pay, plus 3% of pay in excess of 2/3 of the Taxable Wage Base for the Plan Year 15 or more Years of Service 4% of eligible pay, plus 3% of pay in excess of 2/3 of the Taxable Wage Base for the Plan Year Eligible Pay This includes all of your wages paid and all other payments of compensation by PHCS or a Participating Company for services performed. However, eligible pay does not include any payments representing pay for overtime, commissions, or bonuses, but does include amounts contributed by you under a salary reduction agreement and which are not includible in gross income (i.e., your pre-tax contributions to medical, dental, and the PHCS 403(b) Plan). As required by federal law, compensation that exceeds a maximum amount each year is not considered for purposes of the Plan. The maximum compensation that may be considered for pension plan purposes in 2012 is $250,000 and in 2013 is $255,000. This may be increased by the IRS in the future to reflect cost-of-living increases. Taxable Wage Base This is the maximum dollar amount of wages that is subject to Social Security taxes. Wages in excess of this amount are not subject to Social Security taxes. The Taxable Wage Base in 2012 is $110,100, and for 2013 is $113,700. Investment Gains and Losses Any income you gain or lose on each investment fund in which you choose to invest portion of the balance of your Plan account is allocated to your account on a daily basis. With respect to each of the Plan s funds, the portion of the gain or loss allocated to you is based on your account balance invested in the fund in comparison to the total amount of the Plan s assets invested in the fund. Rehires - If your employment ends before you are 100% vested in your Plan account and you are rehired, you may be entitled to recover the portion of your account which you previously forfeited if you return to work before you have five consecutive one-year breaks in your service with PHCS or a Participating Company. -4-

7 IV. Vesting To be vested means that you are entitled to receive the balance in your account even if you terminate employment before you reach retirement age. Once you become vested, you will always be vested. You will become vested when you complete 3 years of service. You will also become vested when you attain age 65, die or become totally disabled, if you were still employed at the time of the occurrence of such event. V. Forfeitures If your employment ends before you are 100% vested in your Plan account, you will forfeit the balance in your account. Forfeitures will be used to reduce future Employer contributions to the Plan and to pay expenses of the Plan. VI. Managing Your Account The Plan gives you the tools to keep up-to-date on your account, invest your savings, and make changes as your needs and situation change. Managing Your Investments The Plan offers a range of investment choices from low to high risk. You have a right to select the investments in which your account balance is invested. Select the fund(s) that meet your investment objectives. You may direct the investment of your contribution into any of these funds in 1% increments. Please refer to the Plan s Appendix to the Summary Plan Description for more information regarding the investment options that are available to you. If you do not provide investment instructions for your contributions to the Plan, you contributions will be invested in the "default" investment option selected for the Plan by the Plan's Investment Committee. The Plan's current default investment option is one of the Vanguard Target Retirement Date Funds listed below. The specific Vanguard fund used for a participant's account is selected based on the participant's age. The Investment Committee reserves the right to change the Plan's default investment option at any time. If your account is invested in the default investment option, you have a right to move the investment of those assets to any other investment option offered under the Plan at any time. Please refer to the Plan's Appendix to the Summary Plan Description for more information regarding the Plan's default investment option. Investment Category Money Market Funds Interm./Long-Term Bonds Aggressive Bonds Large-Cap Stocks Small/Mid-Cap Stocks Funds Vanguard Money Market Fund PIMCO Totl Rtrn Vanguard Infl Prot Federated HiYidBnd Invesco Dvfd Div Vanguard 500 Index Harbor CapApprc Vanguard Ext Mkt Delaware SmCpVal Janus Triton -5-

8 C&S Insti Realty International Stocks Amer Fds EuroPax Oppnheimr Dev Mkts Multi-Asset/Other Vanguard TR 2010 Vanguard TR 2015 Vanguard TR 2020 Vanguard TR 2025 Vanguard TR 2030 Vanguard TR 2035 Vanguard TR 2040 Vanguard TR 2045 Vanguard TR 2050 Vanguard TR 2055 Vanguard TR 2060 Vanguard Rtrmt Inc. For more information on your investment options, including descriptions and investment goals and expenses, read the Plan s Appendix to the SPD, by logging on to phcs.trsretire.com or calling Transamerica Retirement Solutions at Changing Your Investment Elections You may change your investment mix at any time by making transfers from or to investment funds in at least 1% increments or reallocating your account balance between funds. To make a change in your investments logon to phcs.trsretire.com or call Transamerica Retirement Solutions at Changes are effective as of 4:00 p.m. Eastern Time any day the New York Stock Exchange is open. Change requests received after 4:00 p.m., or on a non-business day, will be effective on the next business day. If your request cannot be processed due to market conditions, your request will be completed as soon as administratively feasible. Keep in mind that individual funds may impose penalties for excessive trading, or for executing a transfer before you have held the fund for a specified time frame. For more information, refer to the fund s prospectus, or the Appendix to the Summary Plan Description. VII. Your Benefit Your vested account balance is eligible to be paid out to you or your beneficiary once you have incurred one of the following events: Termination of employment Retirement Total Disability Death You are eligible to retire when you reach age 65 and at that time you will become fully vested in your account. -6-

9 You meet the requirements for Total Disability upon the earlier of your qualification for Social Security disability benefits or your eligibility for and receipt of benefits under a long term disability program of your Employer. VIII. How Benefits Are Paid Generally, you or your beneficiary must elect to receive your benefits under the Plan and to elect the form in which your benefits will be paid. If you have incurred a termination of employment, retired or become totally disabled and your vested account balance is $1,000 or less, your benefit will be paid 30 days after the date you terminate employment, retire or become totally disabled. If you do not make an election to receive your benefit in the form of a direct rollover to an eligible retirement plan, your benefit will be paid in the form of a lump sum distributions. If you have incurred a termination of employment, retired, become totally disabled, or died and your vested account balance is more than $1,000, your benefit will be paid as soon as possible after the date the distribution is requested (which can be no later your required beginning date ). You or your beneficiary can choose to have your benefit paid in the form of a lump sum distribution, a direct rollover to an eligible retirement plan or you may receive your account balance in the form of monthly installments over a period of ten years. Your required beginning date is the April 1 st following the later of the year you reach age 70½ or terminate employment. If your surviving spouse is your beneficiary, he or she must request distribution by your required beginning date. If your beneficiary is someone other than your spouse, they must request a distribution within five years after your death. Upon distribution, the taxable portion of your withdrawal that is eligible for rollover in an eligible retirement plan (either an individual retirement account or another employer s retirement plan) is subject to 20% mandatory Federal income tax withholding unless it is rolled directly to an eligible retirement plan. For more information or to request a distribution, phcs.trsretire.com or call Transamerica Retirement Solutions at IX. Designating a Beneficiary In the event of your death, the balance in your account will be paid to the beneficiary you name. If you are married, your primary beneficiary must be your spouse, unless you both agree that another beneficiary can be named. If you wish to name someone other than your spouse as beneficiary, your spouse must consent by waiving beneficiary rights. To do so, your spouse must sign the spousal waiver on the beneficiary authorization form whereby your spouse consents not to receive any beneficiary benefits, consents to the specific beneficiary you are designating, acknowledges the effect of the consent, and the signature is witnessed by a Notary Public. -7-

10 You can designate a beneficiary by requesting a form by logging on at phcs.trsretire.com or calling Transamerica Retirement Solutions at X. Other Information Plan Administration Name of the Plan Name and Address of the Plan Sponsor Employer Identification Number of the Plan Sponsor and Plan Number Type of Plan Plan Administrator Plan Trustee Type of Administration Agent for Service of Legal Process The Princeton HealthCare System Retirement Plan Princeton HealthCare System One Plainsboro Road Princeton, NJ Plan Number 004 Participant-Directed Profit Sharing Plan Princeton HealthCare System One Plainsboro Road Princeton, NJ State Street Bank and Trust Company One Lincoln Street Boston, MA Company administered, Investment Firm trusteed plan Princeton HealthCare System One Plainsboro Road Princeton, NJ Service of Legal Process may also be made upon the Plan Trustee. Initial Effective January 1, 2012 Date of the Plan Effective Date January 1, 2012 Of Last Amendment Plan Year January 1 - December 31 Contact for Claim Princeton HealthCare System Appeals Human Resources One Plainsboro Road Princeton, NJ How Taxes Affect your Benefits The Plan enjoys certain tax advantages because it is intended to be a long-term savings program for retirement. For example, under current Federal income tax law, money in your account is not taxable while it is held in the Plan. You or your beneficiary will owe income -8-

11 taxes on your distribution when you receive the money. Different rules may apply to any Roth contributions you make and the investment earnings thereon. You should consult with your tax advisor regarding these contributions. In addition to ordinary income taxes, you also may owe a 10% penalty tax on the taxable portion of any distribution you receive before you reach age 59½. The 10% additional tax will not apply in these situations: Your account is paid to you if you terminate employment with your Employer on or after reaching age 55; Your account is paid to you because you become disabled as defined by the IRS; Your account is paid to your beneficiary in the event of your death; You receive the distribution as part of substantially equal payments over your lifetime; You receive a distribution in a year in which you have deductible medical expenses in excess of 7.5% of your adjusted gross income whether or not you itemize your deductions for the year (only the portion of the distribution in excess of 7.5% of your adjusted gross income is not subject to the 10% penalty tax); Payment is directed to another person by a Qualified Domestic Relations Order (QDRO); or You roll over or directly transfer the taxable amount of your account to an individual retirement account (IRA) another employer-sponsored plan, or another type of plan or arrangement that is permitted under the current tax law to accept rollovers. Special Withholding and Rollover In general, for all distributions under the Plan, other than hardship withdrawals, you have the option of authorizing the Plan to make a direct rollover of your distribution to: An IRA (other than a Roth IRA, Simple IRA, or Coverdell Education Account); Another employer-sponsored plan that will accept the rollover amount; or Another type of plan or arrangement permitted under the current tax law to accept rollovers (provided they agree to accept rollovers). If you do not elect a direct rollover, Federal income tax will be withheld. As required by law, 20% of the taxable portion of the distribution must be withheld. You will receive additional information on the direct transfer option when you terminate employment and are ready to receive a distribution. If you do not elect a direct rollover, but later wish to roll this amount to an IRA or another plan that will accept the rollover, you may do so within 60 days of the date you receive the distribution. -9-

12 If your surviving spouse is entitled to receive an eligible distribution due to your death, your spouse also has the option of authorizing a direct rollover. If your beneficiary is not your spouse, that beneficiary may also rollover your account balance to an IRA which the beneficiary establishes specifically for purposes of receiving the distribution. Regardless of the amount, if any, of Federal income tax withheld at distribution, you will be responsible for payment of all taxes associated with the distribution. The 20% withholding may or may not be sufficient to cover your tax liability. Consult a Tax Advisor Tax law changes from time to time, and the tax impact of receiving payments from the Plan will vary with your individual situation. Because PHCS cannot give tax advice or counsel, you should consult a professional tax advisor or financial expert for specific advice about your circumstances. Cost of the Plan Certain fees are paid from the investment options available through the Plan and directly from participant accounts. All of these fees affect the amount of retirement savings you will accumulate through the Plan. These fees and expenses are described below. Investment Option Fees: The investment options available under the Plan pay fees and incur expenses that may have an impact on your account balance. These investment fees and other expenses may reduce returns generated by investment options in which you invest. Some of the investment options pay asset-based fees (fees based on the total assets invested in the fund) for investment and administrative services provided to the fund. For some investment options, these fees are also used to pay for administrative services provided to the Plan. For more information about the fees paid by various investment options, refer to the Summary Plan Description Investment Appendix or the individual fund s prospectus. Plan-level Fees: The Plan may also pay fees in connection with administrative and investment services to the extent these costs are not paid directly by PHCS or another Participating Company (at its discretion). The Plan permits PHCS or another Participating Company to pay amounts that are payable by the Plan directly, subject to reimbursement by the Plan. These fees can reduce all participant account balances. Participant-level Fees: Currently there are no fees which are assessed directly against individual participant accounts. -10-

13 Non-Assignment of Benefits You cannot transfer, assign, pledge, or encumber the benefits payable to you to another person, except as provided below for a valid Qualified Domestic Relations Order (QDRO) or in the case of a Federal tax lien. In addition, you cannot sell your benefits or use them to borrow money outside the Plan. The Plan has no discretion in these matters. You will be notified if an attempt is made to assign your benefits through a court order. As the parties to the order, there are specific QDRO procedures the Plan must follow. A copy of the procedures governing QDROs is available at no charge to you. Please contact the Transamerica Retirement Solutions at for more information. In addition, if you commit a crime against the Plan or you breach a fiduciary duty to the Plan, a court may order, or a legal settlement may provide, that all or a portion of your benefit will be assigned to the Plan. Payment to Minors If anyone entitled to benefits from the Plan is a minor or is judged to be physically or mentally incompetent, the Plan administrator may pay the income to someone else for the benefit of the recipient (to a legal guardian, for example). Top Heavy Rules Under current tax law, if 60% or more of the value of benefits belong to key employees, the Plan is considered to be top-heavy. Both top-heavy and key employees are terms defined under the Internal Revenue Code. At present, the Plan is not top-heavy. In the unlikely event that it becomes top-heavy, you will be notified, and special rules will take effect to keep the Plan qualified under IRS regulations. Termination of the Plan Although PHCS currently intends to continue the Plan indefinitely, PHCS reserves the right to amend or terminate it at any time before then, and for any reason, by action of its Board of Directors. If the Plan terminates, you will be fully vested in your account. Upon termination of the Plan, the Trustee, will distribute to each participant his or her proportionate share in the Plan trust fund. Since the Plan is a defined contribution plan, the final benefit depends on the value of your account at payout. The Plan is not insured Your Plan benefits are not insured under Title IV of Employee Retirement Income Security Act (ERISA) because your benefit is determined solely based upon contributions by your Employer to the Plan and investment gains and losses on those contributions. The Plan is not insured by the Pension Benefit Guaranty Corporation ( PBGC ) and is not covered by the PBGC plan termination insurance provisions. -11-

14 Plan Effective Date Funding The Plan was originally adopted effective January 1, Companies. The Plan is funded through contributions by PHCS and the Participating Trustee The Plan Trustee is State Street Bank and Trust Company, with its principal place of business at One Lincoln Street, Boston, MA PHCS deposits all company contributions into a trust fund, which has been established for the exclusive benefit of Plan participants and beneficiaries. The Trustee administers the trust fund under the terms of a trust agreement between PHCS and the Trustee. PHCS has the right to terminate this arrangement and to select a new Trustee subject to the terms of the trust agreement. Fiduciary Liability The Plan constitutes a pension plan as described in section 404(c) of ERISA and Title 29 of the Code of Federal Regulations section c-1. Section 404(c) relieves fiduciaries of a Plan from liability for losses which are the direct and necessary result of following a participant s investment instructions, if participants maintain certain rights over the investment of their retirement plan accounts. Since the Plan gives you substantial control over the investment of your accounts, the Plan is intended to be a plan described in Section 404(c). Accordingly, you are responsible for the investment decisions you make. The Plan s fiduciaries are not responsible for investment losses you may suffer as a result of following your investment instructions. To assist you in making your investment choices, you will receive information about the investment funds as part of your enrollment kit. In addition, you may review the Plan s Appendix to the SPD, by logging on to phcs.trsretire.com or calling Transamerica Retirement Solutions at Participating Companies As of the date of this SPD, the only Participating Company is the Princeton HealthCare Affiliated Physicians, P.C. XI. Claims Review Procedure You or your beneficiary may file a claim for benefits under the Plan in writing to the Plan Administrator. The Plan Administrator will provide you with written notice of the disposition of your claim within 90 days after it has been filed (or, in certain circumstances, within 180 days). If your claim is denied in whole or in part, you or your beneficiary will receive written notification. Ordinarily, you will receive this written notice within 90 days after your claim is filed. If special circumstances warrant an extension, this deadline may be extended for -12-

15 up to an additional 90 days, and you will be notified in advance if this should occur. In addition, you may agree to a further extension of the time period within which the plan must decide your claim. The notice that your claim is denied will include: The specific reason or reasons for the denial, The specific plan provision(s) or document(s) that the denial is based on, A description of additional material or information that you must provide to perfect the claim and an explanation as to why you must do so, A description of the plan s review procedures and relevant time limits, including a statement of your right to bring a civil action under ERISA following a denial on review, and A statement that you have a right to appeal the decision. You, your beneficiary, or an authorized representative are entitled to appeal a claim that is denied within 60 days of the date you received the denial notice. To do so, write to the Plan Administrator. State the reasons why you believe your claim should not have been denied and include any written comments, documents, records and other information related to the claim that you believe supports your claim. In addition, after receipt of a notice denying a claim for benefits, you, your beneficiary or an authorized representative has a right, upon request and free of charge, to review and receive copies of relevant plan information (defined above). Upon receipt of an appeal, the Plan Administrator will re-examine your claim, along with all comments, documents, records and other information that you submit relating to the claim, regardless of whether it was submitted or considered in the initial benefit determination. The Plan Administrator must then issue a final decision within 60 days after the date that you filed an appeal in accordance with these procedures. The Plan Administrator may determine that special circumstances warrant an extension. If this occurs, the plan administrator must notify you in writing before the end of the initial 60-day period, indicating the special circumstances warranting an extension and the date by which the plan administrator expects to render a decision on the claim. The extension may not be more than 60 days after the end of the initial 60-day period. If such an extension occurs due to your failure to submit needed information, the period for making the benefit determination on review will be suspended (tolled) from the date that notification of extension is sent to you until the date you respond to the request for additional information. In addition, you may agree to a further extension of the time period within which the plan administrator must decide your claim. The Plan Administrator s final decision will be in writing or in electronic form and will include: The specific reason or reasons for the denial, -13-

16 The specific plan provisions on which the determination was based, A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other relevant plan information (defined above), and A statement that you have a right to bring a civil action under ERISA. All decisions are final and binding unless determined to be arbitrary and capricious by a court of competent jurisdiction. XII. ERISA Information The Employee Retirement Income Security Act of 1974, as amended (ERISA), is a federal law that protects the interest of participants in the pension and welfare plans sponsored by their employer. A. Application of ERISA to the Plan The Plan is a defined contributions plan as described in Section 3(34) of the Employee Retirement Income Security Act of 1974, as amended (ERISA). B. Rights Under ERISA ERISA and related regulations require that the company inform participants of specific details regarding the operation of benefit plans. As a participant in the Plan, your rights are protected under the Employee Retirement Income Security Act of 1974, as amended (ERISA). ERISA provides that all plan participants are entitled to: 1. Receive Information About Your Plan and Benefits As a Participant in the Plan, you are entitled to certain rights and protections under ERISA. You may: Examine, without charge, at PHCS s office and other specified locations, such as worksites, all documents governing the Plan, including insurance contracts, collective bargaining agreements and a copies of the latest annual reports (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. Obtain, upon written request to PHCS, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. PHCS may assess a reasonable charge for the copies. To request this information, contact the Human Resources Department at (609)

17 Receive a summary of the Plan s annual financial reports. ERISA requires PHCS to furnish each Participant with a copy of the summary annual report for the Plan. Obtain a statement telling you the amount of your accrued benefit under the Plan. This statement must be requested in writing from PHCS. The Plan must provide this statement free of charge. PHCS is only required to give you one such statement in a twelve-month period. Your accrued benefit can also be viewed online by logging onto phcs.trsretire.com. 2. Prudent Actions by Plan Fiduciaries In addition to creating rights for participants in the Plan, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who administer the Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA. 3. Enforce Your Rights If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the Plan and do not receive them within 30 days, you have a right to file suit in a federal court. In such a case, the court may require PHCS to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of PHCS. 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. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that fiduciaries of the Plan misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds that your claim is frivolous. 4. Assistance with Your Questions If you have any questions about the Plan, you should call the Human Resources Department at (609) If you have any questions about this summary or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan -15-

18 Administrator, you should contact the nearest Area Office of the Employee Benefits Security Administration of the U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries Employee Benefits Security Administration U.S. Department of Labor 200 Constitution Avenue N.W. Washington, DC You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at