QK PT-3447 (10/14)

Transcription

1 QK PT-3447 (10/14)

2 Welcome to Your Plan Whether your retirement is five or fifty years away, The Freeman Companies 401(k) Retirement Savings Plan offers a powerful way to enhance your long-term financial well-being. We encourage you to invest in yourself and your future by participating in this plan through Transamerica. Transamerica is a full-service retirement plan provider who has focused on one thing for more than 75 years: helping millions of people like you save and invest wisely for and throughout their retirement. Whether you're joining a retirement plan for the first time, already participating in the plan, soon approaching retirement, or already in retirement, Transamerica will be with you every step of the way. Please read through this kit so you can better understand this valuable program. And be sure to enroll as soon as possible so you can begin maximizing this benefit! Sincerely, Pete Kunkel President and CEO Transamerica Retirement Solutions

3 2 Maximize Your Plan You will be automatically enrolled Sign in online at freemanco.trsretire.com or call Catch up on your contributions (must be age 50 or older). Designate your beneficiary. Please visit us online at freemanco.trsretire.com and follow the prompts for designating your beneficiary. Reduce your clutter. Sign up for e-documents today. Schedule automatic annual increases through our free auto-increase service. Rebalance your account automatically by using Auto-Rebalance. For retirement counseling, just call or visit us online. As an active participant, you can access your retirement account 24/7 by signing in to freemanco.trsretire.com or calling us toll-free at You may also speak with a customer service representative for enrollment assistance, investment guidance, and retirement planning support. First-time online users freemanco.trsretire.com First-time callers Questions? Visit freemanco.trsretire.com 1

4 3 0 Automatic Enrollment You will be automatically enrolled in the The Freeman Companies 401(k)Retirement Savings Plan. How does automatic enrollment work? You will be enrolled in the plan as soon as you become eligible to contribute to your account. Enrollment is automatic there are no forms to complete. Unless you choose otherwise, each pay period 3% of your pay will be deducted from your paycheck before taxes and contributed to your account automatically. Your contribution amount will be increased 1% automatically each year until it reaches 10%. Can I contribute more - or less? Yes, you can contribute from 1% up to 50% of your pay, though IRS and plan limits may apply. For example, for 2014 the regular IRS limit on contributions is $17,500. Also, if you are at least age 50 or will be during the year, you can make up to $5,500 in additional "catch-up" contributions to your account in 2014.You can also choose to contribute less than the automatic 3%, or not at all. How are my contributions invested? Your contribution will automatically be invested in the plan's default fund unless you make an investment election. More information about all the funds in the plan can be found in the pages that follow. How do I make changes to my contributions and/or my investments? To change your contribution amount, or to opt out of automatic contributions or automatic increases, go online at freemanco.trsretire.com, sign in to your account, and make any needed updates. You may want to establish a more personalized investing strategy for your retirement account. You can transfer out of the automatic investment fund, change how future contributions are invested, or choose a different strategy by signing in to your account online at freemanco.trsretire.com. What if I've been rehired? For rehired employees, go to freemanco.trsretire.com or call to review and confirm your investment elections for your future payroll contributions. Previous investment elections may no longer be valid. Questions? Visit freemanco.trsretire.com 2

5 4 Plan Highlights The Freeman Companies 401(k) Retirement Savings Plan is a valuable employee benefit and one of the most powerful ways to build your retirement savings. Take a few minutes now to read through these plan highlights and learn more about all the features and benefits your plan includes. You'll find more about when you can join, how much you can contribute, when you can make changes, and how you can access your savings. Keep in mind this is simply a uick overview of your benefits. For complete details or plan updates, please refer to your Summary Plan Description (SPD). The Freeman Companies 401(k) Retirement Savings Plan Eligibility You are eligible to participate in the plan: Upon completing 3 month(s) of service You may join the plan on the first day of the next payroll period. However, if you are in one of the following group(s), you are not eligible to participate in the plan: Non-resident aliens Union employees (if retirement benefits were the subject of good faith bargaining and coverage under the Plan was not agreed to, or if the union contract reuires the Company to contribute to an outside pension fund) Leased employees Employees of a member of the employer's controlled group that does not affirmatively adopt this Plan Your Contributions You may choose to make pre-tax contributions from 1% up to 50% of your pay. You may increase, decrease, or stop your contributions at any time. Your plan offers an auto-increase service, a feature that allows you to elect to have your savings amount automatically increased each year. You can sign up for the auto-increase service online at freemanco.trsretire.com. An annual IRS dollar limit of $17,500 applies for This limit is indexed annually by the IRS. Questions? Visit freemanco.trsretire.com 3

6 5 Your Contributions (continued) If you are age 50 or older (or you reach age 50 during the current calendar year), you can make additional catch-up contributions up to $5,500 in This limit is indexed annually by the IRS. Your plan includes an automatic enrollment provision. When you become eligible to join the plan, 3% of your pay will be contributed automatically unless you elect an alternative percentage or opt out of participation. This contribution percentage will increase by 1% annually until 10% is reached. Please see the Automatic Enrollment Notice for more information. You may choose to make after-tax contributions from 1% up to 50% of your pay. Note: Your total pre-tax and after-tax contribution election may not exceed 50%. If you have an existing retirement plan account with a prior employer, you may roll over that account into this plan at any time. To initiate a rollover of a retirement account with a prior employer, complete the Incoming Rollover form. Employer Contributions Freeman Decorating Co. may provide a discretionary matching contribution on your behalf. This decision is made annually and reported to you each year. Currently, the company matches 50% of the first 6% of your pay that you contribute to the plan on a before-tax basis. Vesting Vesting refers to your "ownership" of your account. You are always 100% vested in your contributions to this plan, including any rollover or transfer contributions you have made, plus any earnings on those contributions. You are 100% vested in your employer contribution(s) after 3 years of service. Loans You may borrow from your plan according to the provisions listed below (conditions and restrictions may apply). Minimum loan amount $1,000 Maximum loan amount 50% of your vested account balance, up to $50,000 General loan interest rate Prime interest rate (as stated in the Wall Street Journal) Maximum general loan term 5 years Questions? Visit freemanco.trsretire.com 4

7 6 Loans (continued) General loan fee A one-time set-up fee of $75 per loan will be deducted from your account Maximum number of outstanding loans 2 Withdrawals You may withdraw vested funds from your plan account in these events (conditions and restrictions may apply as defined in the plan): Retirement at plan's normal retirement age of 65 Termination of employment Attainment of age 59.5 In-service withdrawal of certain contributions at any time Financial hardship as defined in the plan Disability Death Investment Direction You decide how your account will be invested among the available investment options. You may change your investment allocation at any time. Your contributions under the automatic enrollment provision will be invested in State Street Global Advisors Target Date Funds based on the year in which you were born. Please see the Automatic Enrollment Notice for more information. Transfers among investment options may be made at any time and may be subject to certain restrictions. Beneficiary Designation It is very important that you designate at least one beneficiary for your retirement account so that your assets can be distributed according to your wishes upon your death. Please go online at freemanco.trsretire.com and follow the prompts for designating your beneficiary. Summary Plan Description For more information about any of the plan provisions, including any conditions or restrictions that may apply, please refer to the Summary Plan Description or call These plan highlights represent only an overview of plan provisions and do not constitute a legally binding document. Questions? Visit freemanco.trsretire.com 5

8 7 404(c) Notice The Freeman Companies 401(k) Retirement Savings Plan is intended to be a 404(c) plan as described in detail in Section 404(c) (ERISA) and final regulation c-1. This means that you have the flexibility (and responsibility) to choose among the options provided under the plan in a way that best meets your objectives. In general, by providing you with this ability and a variety of investments, your employer and plan administrator are not liable for any losses that occur as a direct result of investment in the available options as directed by you or your beneficiary. In addition to the information contained in this booklet, the following information can be obtained upon reuest: Prospectuses, summary prospectuses, or similar documents relating to each investment option. Financial statements or reports or similar materials relating to each investment option. Information regarding the value of shares or units in the investment options as well as the date of valuation. (Please see your account statement.) A list of the assets comprising the portfolio of each investment option which will constitute "plan assets" under Reg , and the value of each such asset. To obtain any of the above information, please contact: Transamerica 4333 Edgewood Road NE Cedar Rapids, IA Phone: Questions? Visit freemanco.trsretire.com 6

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