Pension Plan Summary Plan Description January 1, 2017

Transcription

1 Pension Plan Summary Plan Description January 1, 2017

2 THE NOVELIS PENSION PLAN This booklet summarizes the main provisions of the Novelis Pension Plan (NPP), in effect on January 1, 2017 and serves as the summary plan description (SPD) for these benefits. It describes the benefits as they apply to eligible employees. The Plan is closed to new hires who were hired after January 1, We encourage you to read this SPD carefully and share it with your family members. If you have any questions about your benefits, please contact your local human resources representative. Note that this SPD is only a summary. Complete details of the Plan are contained in a legal plan document. If there is any difference between the information in this booklet and in the legal plan document, the Plan document will govern.

3 TABLE OF CONTENTS ABOUT YOUR PARTICIPATION... 1 Who Is Eligible... 1 When Participation Begins... 1 Naming a Beneficiary... 1 HOW THE PLAN WORKS... 2 How Your Benefit Is Determined... 2 When You Are Vested... 5 Reemployment... 5 When You Can Receive Your Benefit... 6 Your Payment Options... 8 Special Circumstances LIMITATIONS PLAN ADMINISTRATION LEAVES OF ABSENCE YOUR RIGHT TO APPEAL YOUR RIGHTS UNDER ERISA YOUR EMPLOYMENT... 26

4 ABOUT YOUR PARTICIPATION This section includes important information about your participation in the Novelis Pension Plan (the Plan ). Who Is Eligible You are eligible to participate in the Plan if your date of hire is prior to January 1, 2005 and you are an employee of Novelis Corporation or Novelis Inc. and are not in a category of employees excluded from participation in the Plan. When Participation Begins If you were a full time employee when you were hired, you automatically began participating in the Plan on the first of the month on or after your date of hire. If you were a part time employee when you were hired, you began participating on the first day of the month following your date of hire if you became a full time employee or completed 1,000 hours during the first 12 months of employment. If you did not become a full time employee or complete 1,000 hours during your first 12 months of employment, you will begin participating on the first day of any calendar year in which such event does occur. Naming a Beneficiary Before Retirement Your beneficiary is the person who will receive your benefit if you die before you begin receiving retirement benefits from the Plan. If you are married, your spouse is automatically named your beneficiary and this designation cannot be changed. Please note that if you are unmarried, there are no survivor benefits payable to anyone and therefore no beneficiary is required. At Retirement At the time retirement benefits from the Plan commence, married and single employees can choose a form of payment and beneficiary that best fits their needs. If you are married, your spouse must consent in writing to any form of payment that reduces his or her benefit to less than 50% of your benefit. Description 1

5 HOW THE PLAN WORKS The Plan provides you with retirement income based on your pay and service while you are an eligible employee of Novelis Corporation or Novelis Inc. Employment with affiliated or predecessor companies may also be included. The Company pays the full cost of this Plan; you are not required or permitted to contribute to this Plan. The benefits you receive from this Plan are in addition to any benefits you receive from Social Security, any Company-sponsored Savings Plans, or any other personal savings and investments. How Your Benefit Is Determined Your benefit from the Plan, payable at age 65, is determined by a formula based on your pay and years and months of benefit service at the time you retire or end your employment with the Company. The Plan s formula is: 45% of your Highest Average Earnings (HAE), plus 15% of any HAE over Social Security Covered Compensation, plus Highest Average Earnings (HAE) Makeup. If you have less than 35 years of benefit service, the amount calculated above will be multiplied by: Your years and months of Benefit Service (maximum 35 years) divided by 35. Your Highest Average Earnings (HAE) is the average of the highest 3 consecutive calendar years of earnings that precede your termination or retirement by at least 3 months. If you have fewer than 3 consecutive calendar years of eligible employment, your HAE will be the average for all your calendar months of such employment. Each April 1st, your newest calendar year earnings can be included in your HAE calculation. The following example illustrates how your HAE is determined: If you retire or your employment ends January 1 to March 31, 2017 April 1 to December 1, 2017 Your HAE will be the average of the highest 3 Consecutive Calendar Years including , 2014, 2013 & earlier 2016, 2015, 2014 & earlier For purposes of this Plan, eligible pay includes regular base pay, overtime and premium pay, short-term incentive pay (up to guideline percentages) paid to you during the year and lump sum payments made to you in place of salary and wage increases. Any one-time payments you receive including long-term Description 2

6 incentive pay, achievement awards and vacation pay in a lump sum at termination, are not considered part of your eligible pay. Federal rules that govern pension plans like this one set annual limits on the amount of pay that can be considered in determining your benefit. This limit is $270,000 in 2017, and is subject to change periodically. The Social Security Wage Base (SSWB) is the maximum amount of eligible pay on which you and the Company pay Social Security taxes each year. For 2017, the SSWB is $127,200. Social Security Covered Compensation (SSCC) is the average of the Social Security wage Bases for the 35 most recent calendar years which began at least three months prior to your retirement or termination date, or the first day of the month on which you received Social Security disability payments. For retirements/terminations after April 1, 2017, the SSCC is $77,880, and will be adjusted each year thereafter. Highest Average Earnings (HAE) Makeup. Depending on which month you retire or your employment ends, there are between 3 and 14 months of earnings that are not used in the calculation of your HAE. This is because the pension formula is based on calendar year earnings instead of the most recent 36 months before you retire/terminate. The HAE Makeup is designed to increase your pension to approximately the same level had all your earnings been included in the calculation of your HAE. The HAE Makeup is based on the number of months between the end of the last calendar year that could be used to determine your HAE and the date your benefit service stops. You can refer to the chart below to determine the number of months used to calculate your HAE Makeup. Note that the minimum number of months is 3 and the maximum is 14. Description 3

7 Date Benefit Service Stops Unused Months April 1 3 May 1 4 June 1 5 July 1 6 August 1 7 September 1 8 October 1 9 November 1 10 December 11 January 1 12 February 1 13 March 1 14 The amount of your HAE Makeup is 0.25% of the HAE times the number of unused months. For example, if you retire September 1st with a $30,000 HAE under the Plan, your HAE Makeup will be: x 8 x $30,000 = $600. Your Benefit Service generally includes your employment with Novelis Corporation or Novelis Inc. while eligible for the Plan, as well as paid leaves of absence and periods during which you are eligible for benefits under the Long- Term Disability Plan. Employment with affiliated or predecessor companies may also be included if approved by the Board of Directors. Benefit Service is calculated on a monthly basis and one month is awarded for each month during which an eligible employee works at least one day. Benefit service cannot exceed 35 years. Eligibility Service determines if you are eligible to receive benefits. For employees hired full time, your eligibility service begins on the first day of the month on or after your most recent date of hire by the Company or an affiliated or predecessor company. Your service ends on the date you retire or the first day of the month following the date your employment ends, whichever occurs first. The service is calculated in years and months, and is then rounded up to the next full year. Other Company Sources If this Plan recognizes service you may have from another plan sponsored by the Company or a predecessor an affiliated company, then this Plan will not duplicate benefits you receive from these other Company sources. The benefit Description 4

8 you receive under this Plan will equal the benefit determined by using this Plan s benefit formula reduced by the benefits you have earned from other Company sources. If you retire early, your benefit from this Plan will first be reduced for early retirement and then be reduced by the early retirement benefits payable from other Company sources. If your benefit is reduced for an optional form of payment, your benefit under this Plan will first be reduced for the optional form and then be reduced by the benefit payable from other Company sources. When You Are Vested Vesting means you have a nonforfeitable right to your benefit when you leave the company or retire. Generally, you become 100% vested in your benefit under the Plan after you have five years of Eligibility Service. Reemployment If You Are Rehired Prior to Your Payments Beginning If you leave the Company and then return, your prior service may be restored. Your prior service will be restored if you have no break-in-service. A break-in-service is a period of absence that: For eligibility service, begins on your Plan anniversary date (usually the month and date you became a Plan member) following the date your employment stops and ends on the first of the month in which you are rehired. For benefit service, begins on the first of the month following the date your employment stops and ends on the first of the month in which you are rehired. No break in eligibility service will occur if you are reemployed within one year of the date the break would have begun. If you do have a break in service, your prior Eligibility and Benefits Service will be restored if you are reemployed for five or more months and one of the following applies: You had a vested right to a pension (five years of Eligibility Service if you terminated after January 1, 1989) at the time your break in service began, Your break in service starts on or after January 1, 1985, and your break in service rounded down to the next whole year does not exceed the greater of your prior Eligibility Service or five years, or Description 5

9 For Benefit Service only, you repay with interest any amount you may have received as a distribution of the present value of any accrued non-forfeitable benefit from the Plan or benefits from other Company sources. If You Are Rehired After Beginning Your Payments If you are rehired after beginning your payments, your pension will be suspended if you work more than 80 hours in each of three consecutive months. If you do not work more than 80 hours in three consecutive months, your payments will continue and you will not earn additional service or benefits under the Plan. If your pension is suspended, you are eligible to participate in the Plan immediately upon reemployment. The years of service you had earned before you left will be restored for vesting purposes. When you leave again, your benefit will be recalculated and the benefit you had earned since your rehire date will be reduced by the early retirement factor applicable to your new retirement date and the form of payment you elect for the additional pension. When You Can Receive Your Benefit You may begin receiving benefits as soon as you reach your Earliest Retirement Date. Your Earliest Retirement Date is first day of any month before your Normal Retirement Date and after: You are age 55 (or older) and have five or more years of Eligibility Service, or Your age on your last birthday plus your Eligibility Service equals 75 years or more. For example, you are eligible for early retirement at age 48 if you have completed 27 years of eligibility service ( = 75), and Your employment with Novelis Corporation or Novelis Inc. and affiliated companies has ended. The benefit you ultimately receive will depend on your age, years and months of service and pay. Normal Retirement Benefits Your Normal Retirement Date is the first day of the month following your 65th birthday or at the completion of 5 years of Eligibility Service, if later. At your Normal Retirement Age, you will be entitled to receive your Normal Retirement Benefit. Payment of your benefit will begin, at your election, as soon as practicable following your Normal Retirement Date if your employment with Novelis Corporation or Novelis Inc. and affiliated companies has ended. Early Retirement Benefits You may elect to receive your benefit as a reduced benefit from the Plan starting as early as your Earliest Retirement Date. Your benefits will be reduced for each Description 6

10 year they begin before age 65 because you are expected to receive benefits over a longer period of time. The chart below shows the percentage of the age 65 benefit you would receive at different ages. If you are between ages when you retire, the percentage you receive will be adjusted for each month between ages. If Your Age When Payments Start Is: Then You Receive This Percentage of Your Plan Benefit: % 64 99% 63 97% 62 94% 61 90% 60 86% 59 82% 58 78% 57 74% 56 70% 55 66% Under 55 Reduced by 4% per year Retirement Benefits After Your Normal Retirement Date If you continue to work beyond your Normal Retirement Date, your benefit will be determined when you retire based on your pay and service at your actual retirement date. Note that you cannot begin to receive your Normal Retirement benefit your benefit accrued through age 65 while you are still working. Since you continue to earn benefits past your Normal Retirement Date while you are working, your Normal Retirement benefit is not subject to actuarial adjustment to account for the delayed commencement. You may elect to begin payments on the first day of any month after your termination of employment. Mandatory Distributions Even if you are still actively at work, you must begin to receive payment of your benefit no later than the April 1st following the year in which you reach age 70½. If this mandatory distribution provision applies to you, you will be notified. You cannot roll over a mandatory distribution. Description 7

11 Your Payment Options If the lump sum present value of your benefit is more than $5,000, which is often the case, then your benefit will be paid in a monthly pension payable for your lifetime (see forms of payment below). If the lump sum present value of your benefit is more than $1,000 but less than $5,000, you can elect to have your lump sum: Rolled over to an Individual Retirement Account (IRA), or Rolled over to an eligible retirement plan, or Paid directly to you. If you do not make an election, your lump sum will automatically be rolled over to an IRA established in your name. If the lump sum present value of your benefit is less than $1,000, you have the same three options shown above. However, if you do not make an election, your lump sum will be paid directly to you. Automatic Forms of Payment The Plan offers automatic forms of payment based on your marital status. If you are married on the date your benefits are to commence, your benefit will be paid in the form of a 50% joint and survivor annuity unless you elect one of the optional forms described on page 8. Electing this 50% survivor benefit does not reduce the amount of your pension if your spouse is not more than 10 years younger than you. If your spouse is more than 10 years younger than you, your pension will be slightly reduced to provide the survivor benefit, which will be 50% of your reduced pension. You may revoke an election not to take joint and survivor benefits at any time prior to receiving benefits under the Plan; provided, however, that if you elect to receive any form of payment other than the joint and survivor annuity, you must obtain spousal consent. When you decide to retire, you should notify your local human resources representative. Then, within 30 to 180 days before you are to receive benefits, the Plan Administrator will provide you with a written explanation of the terms and conditions of the joint and survivor annuity and the effect of a failure to elect this form, and you will be given an opportunity to choose the joint and survivor annuity form or one of the payment options described on page 8. The election not to take automatic joint and survivor benefits is effective only if your spouse gives written consent that is witnessed in accordance with Plan rules. Description 8

12 If you are single on the date your benefits are to commence, your benefit will be paid in the form of a life annuity unless you elect another option. A life annuity pays a monthly benefit for as long as you live. If you are single when your payments begin and you die before receiving the first 60 payments, your remaining payments will continue to your elected beneficiary. If you die after receiving 60 payments, no further benefits are payable. Optional Forms of Payment You may choose one of the following payment options instead of the automatic forms of payment outlined on page 8. If you are married and (a) name a beneficiary other than your spouse, or (b) choose a form of benefit other than the joint and survivor annuity described below, your spouse must provide his or her written consent, in accordance with plan rules. Joint and Survivor Annuity: You may elect a joint and survivor annuity that provides a more than 50% benefit to your surviving spouse (ex. 66.7%, 75%, 100%). A joint and survivor annuity pays a reduced monthly benefit to you for as long as you live. When you die, your surviving spouse will continue to receive a higher percentage of your benefit until he or she dies. The percentage that your surviving spouse receives is based on your election. Contingent Annuity: Under this payment option, you provide a survivor benefit to a beneficiary of your choice and you receive a reduced benefit for as long as you live. The amount of the reduction will be based on the age of the beneficiary and your age when payments begin. Full Benefit Annuity: You can elect this form only if you are married and your spouse is more than 10 years younger than you are. If you choose this form of payment, you will receive your full Plan benefit for your lifetime. If you die before your spouse, he or she will receive less than 50% of your benefit for life. Your spouse must consent in writing to any form of payment you choose that reduces his or her benefit to less than 50% of your benefit, and the consent must be notarized. Social Security Level Income Annuity: If you retire before age 62, this option allows you to have your monthly payments from the Plan adjusted so they are higher in the years before you are eligible to receive a Social Security retirement benefit, and lower during the remainder of your lifetime. In this way, your combined income from this Plan and Social Security is intended, but not guaranteed, to be level throughout your retirement. Note that this election is in addition to your form of payment election described above and has no impact on any survivor benefits payable upon your death. If you want the Company to calculate your Plan benefit under this method, you must request your estimated age 62 Social Security benefit from the Social Description 9

13 Security Administration and supply the estimate to your local human resources representative. Tax Consequences In general, benefit payments from the Plan will be subject to federal income taxes and may be subject to state income taxes as well. If the present value of your benefit is under $5,000 and is paid in a single lump sum payment, the Company is required to withhold federal income taxes equal to 20% of the taxable portion of your payment, unless you roll over your distribution directly into a traditional IRA or eligible employer plan. Unless you are at least age 55 at the time you leave the company, you are at least age 59½ at the time payment is made to you or another exception applies, your lump sum payment may be subject to a 10% early payment penalty tax in addition to regular income taxes if it is not rolled over to a traditional IRA or eligible retirement plan. For more information on the additional 10% tax, please see IRS Form If the lump sum value of your benefit is $5,000 or higher, you will receive a monthly pension payment for your lifetime. Lifetime monthly pensions are subject to federal and state income taxes, but mandatory tax withholding and the 10% early payment penalty do not apply. You can elect to have federal tax (and state tax, where required) withheld from your pension payments. You are responsible for complying with applicable federal, state and local tax laws and regulations when you receive a lump sum distribution or begin monthly pension payments. You will receive more information about the applicable rules when you elect to begin payment. Because taxes are complicated and subject to change, you may wish to consult a tax advisor before receiving benefits from the Plan. Electing Payment You must complete an election form to elect a payment option for your benefit, which may be obtained by contacting your local human resources representative. You must make your election at least 30 days before but no more than 180 days before you want benefit payments to begin. If you are married and do not elect an option that provides at least 50% of your benefit to your eligible spouse, your spouse must consent in writing, according to Plan rules. You may elect, modify or cancel any benefit option you have elected by contacting your local human resources representative before the date your benefit payments are scheduled to begin. Once payments have begun, no changes to the form of payment are allowed. If you request to begin your pension prior to the date you would like payments to begin and there is not enough time to produce or complete the necessary paperwork, your payments can begin as soon as possible, retroactive to your elected start date. Description 10

14 Special Circumstances If you leave, become disabled or you die, the Plan may still provide benefits to you or to your beneficiary. If You Leave the Company If you leave the Company (and its designated affiliates) after you are vested, you are entitled to receive a benefit from the Plan. Your benefit will be determined by your pay and service at the time you leave and will be payable at age 65 or as early as your Earliest Retirement Date. If benefits begin before age 65, the early retirement reductions described in the section Early Retirement Benefits on page 6 will apply. The forms of payment available to you are those described in the section Your Payment Options on page 8. If the vested value of your account is $5,000 or less when you leave the Company, it will automatically be distributed in a lump sum. If the distribution amount is greater than $1,000 and you do not elect to receive it in cash or have it paid directly to a traditional IRA or an eligible retirement plan, then the Plan Administrator will pay the distribution in a direct rollover to an individual retirement plan established in your name. If You Become Disabled If you become totally and permanently disabled while you are actively employed by Novelis Corporation or Novelis Inc., you will continue to earn Benefit and Eligibility Service as though you were still an active employee for up to 12 months or until you attain age 65, whichever comes first, but your highest average earnings will be frozen at the date you became disabled. For purposes of this Plan, you are considered disabled if you meet the disability requirements of the Company s Long Term Disability Plan. If You Die If you die after your pension benefits have begun, any pension benefits to your beneficiary will be determined by the payment election you made when you retired. If you are vested in your plan benefit and you die before payments begin, your spouse may be able to receive an annuity benefit from the Plan if you have been married for at least 12 months. If this benefit is payable, it is known as the qualified pre-retirement survivor annuity benefit. The monthly benefit payable to your surviving spouse will equal the amount that would have been payable to him or her under the 50% joint and survivor annuity form of benefit accrued through your date of death. This benefit will be subject to early payment reductions and shall be payable for life to your surviving spouse. If you are not married and die before payments begin, no benefits are payable. Description 11

15 The surviving spouse benefit will be payable as early as the first of the month following your date of death, provided you were eligible to begin receiving benefits at the time of your death. If you were not eligible to begin receiving benefits at the time of your death, then the surviving spouse benefit will be payable as early as the date you would have become eligible for early retirement had you terminated employment on your date of death. If the lump sum value of the surviving spouse benefit is $5,000 or less, your spouse will receive a single lump sum payment. Description 12

16 LIMITATIONS The Plan exists specifically to provide retirement benefits. However, under certain circumstances, those benefits may be delayed, reduced or lost. For example: If your employment with the Company terminates for any reason before you are vested, no benefits are payable. If your employment status changes such that you are no longer an eligible employee under the Plan or work enough to earn a benefit, you may stop accruing benefits. If you are receiving monthly pension benefits from the Plan and return to work for 80 hours of service in each of at least three consecutive months, payments will be suspended until you retire again. If you do not apply for benefits in a timely manner or fail to provide information requested by the Company, benefits could be delayed. If you do not notify the Company of a change in your address, benefits could be delayed. If a court order concerning child support, alimony or marital property rights so decrees, part of your benefit may be payable to someone else. Federal law limits the amount of benefits that may be received from a qualified pension plan. In particular, for 2017 no more than $270,000 of annual compensation may be taken into account in determining your benefit. Also, in 2017 your annual benefit will be limited to the lesser of $215,000 or 100% of your average compensation during your highest three years. These limits may be adjusted periodically for changes in the cost of living, and may be adjusted depending on the form of benefit you select and your benefit commencement date. This Plan contains certain limitations on the amount of benefits that can be distributed to the 25 highest paid employees of the Company, under certain circumstances. If you are subject to this limitation, you will be notified. Description 13

17 PLAN ADMINISTRATION This information about the administration of the Plan is provided in compliance with the Employee Retirement Income Security Act (ERISA) of 1974, as amended. While you should not need these details on a regular basis, the information may be useful if you have specific questions about your plan. Plan Name The full name of the Plan is the Novelis Pension Plan. Plan Sponsor The name and address of the Plan sponsor are: Novelis Corporation 3560 Lenox Road, Suite 2000 Atlanta, Georgia Plan Administrator Novelis Employee Benefits Committee 3560 Lenox Road, Suite 2000 Atlanta, Georgia Affiliated and Predecessor Companies An affiliated company is: Logan Aluminum, Inc. Any other company of which Novelis Inc. owns more than 50% Any company designated as an affiliate A predecessor company is any company that is not an affiliated company and whose operations have been acquired in whole or in part by the Company or an affiliated company, but only in relation to those acquired operations. Description 14

18 Investment Fiduciary The name, address and telephone number of the investment fiduciary are: Novelis Pension Investment Committee 3560 Lenox Road, Suite 2000 Atlanta, Georgia Claims Fiduciary The claims fiduciary can be reached by contacting: Novelis Human Resources 3560 Lenox Road, Suite 2000 Atlanta, Georgia Type of Administration The administration of the Plan will be under the supervision of the Plan Administrator. Funding Medium The Novelis Pension Plan is administered through a trust. Agent for Service of Legal Process The name and address of the designated agent for service of legal process are: General Counsel Novelis Corporation 3560 Lenox Road, Suite 2000 Atlanta, Georgia Legal process also can be served on the Plan Administrator. Trustee The name and address of the trustee is: Plan Trustee Novelis Pension Plan Wells Fargo N.A. Description 15

19 1525 West W. T. Harris Blvd. Charlotte, NC Identification Numbers The Employer Identification Number (EIN) assigned by the Internal Revenue Service to Novelis Corporation is The Plan number for the Novelis Pension Plan is 001. Plan Year The Plan year for the Novelis Pension plan is January 1 through December 31st. Plan Type and Funding The Novelis Pension Plan is a defined benefit plan. The Plan is funded by employer contributions, which are actuarially determined. Plan Document This booklet is intended to help you understand the main features of the Plan. It should not be considered as a substitute for the Plan document, which governs the operation of the Novelis Pension Plan. That document sets forth all of the details and provisions concerning the Novelis Pension Plan and is subject to amendment. If any questions arise that are not covered in this booklet or if this booklet appears to conflict with the official Plan document, the text of the official plan document will determine how questions will be resolved. To request a copy of the Plan document, please contact your local human resources representative. Future of the Plan It is the Company s intent that the Novelis Pension Plan will continue indefinitely. However, the Company reserves the right to amend, modify, suspend or terminate the Plan, in whole or in part, by resolution of the Board of Directors of Novelis Inc. or as described in the Plan document. Plan amendment, modification, suspension or termination may be made for any reason at any time, and may, in certain circumstances, result in the reduction or elimination of benefits or other features of the Plan to the extent allowed by law. If the Plan is completely or partially terminated, affected participants will become fully vested in the benefits they have accrued to that point (to the extent such benefits are funded). In the event of a complete plan termination, benefits will be distributed in any manner permitted by the Plan as soon as practical, and any excess funds will revert to Company. If the Plan Becomes Top Heavy Description 16

20 Under a complicated set of IRS rules set out in the Plan document, the Plan may become top heavy. A top heavy plan is one where more than 60% of the contributions or benefits have been allocated to key employees. The Plan Administrator is responsible for determining whether the Plan is a top heavy plan each year. In the unlikely event that the Plan becomes top heavy in any year, non-key employees may be entitled to certain minimum benefits and special rules will apply. If the Plan becomes top heavy, the Plan Administrator will advise you of your rights under the top heavy rules. Limitation on Assignment Your rights and benefits under this Plan cannot be assigned, sold, transferred or pledged by you or reached by your creditors or anyone else except under limited circumstances. However, the law does permit the assignment of all or a portion of your interest in the Plan to your former spouse or children as part of a Qualified Domestic Relations Order. Qualified Domestic Relations Order (QDRO) A Qualified Domestic Relations Order (QDRO) is a legal judgment, decree or order that recognizes the rights of an alternate payee under the Plan with respect to a child s or other dependent s support, alimony or marital property rights. The company is legally required to recognize QDROs. If you become legally separated or divorced, a portion or all of your benefit under the Plan may be assigned to someone else to satisfy a legal obligation you may have to a spouse, former spouse, child or other dependent. There are specific requirements the court order must meet to be recognized by the Plan Administrator and specific procedures regarding the amount and timing of payments. Participants and beneficiaries may obtain, without charge, a copy of the procedures governing QDRO determinations under the Plan from the Plan Administrator by contacting your local human resources representative. Plan Interpretation To the fullest extent permitted by law, the Plan Administrator will have the exclusive discretion to determine all matters relating to eligibility, coverage and benefits under the Plan. The Plan Administrator will also have the exclusive discretion to determine all matters relating to interpretation and operation of the Plan. Decisions by the Plan Administrator will be conclusive and binding. Receiving Advice Description 17

21 The Company cannot advise you regarding tax, investment or legal considerations relating to the Plan. Therefore, if you have questions regarding benefit planning, you should seek advice from a personal advisor. Pension Benefit Guaranty Corporation Your pension benefits under the Novelis Pension Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. If the Plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received under their plan, but some people may lose certain benefits. The PBGC guarantee generally covers: Normal and early retirement benefits, Disability benefits if you become disabled before the Plan terminates, and Certain benefits for your survivors. The PBGC guarantee generally does not cover: Benefits greater than the maximum guaranteed amount set by law for the year in which the Plan terminates, Some or all of benefit increases and new benefits based on plan provisions that have been in place for fewer than five years at the time the Plan terminates, Benefits that are not vested because you have not worked long enough for the Company, Benefits for which you have not met all the requirements at the time the Plan terminates, Certain early retirement payments (such as supplemental benefits that stop when you become eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the Plan s normal retirement age, and Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay and severance pay. Even if certain of your benefits are not guaranteed, you still may receive some of those benefits from the PBGC depending on how much money your plan has and how much the PBGC collects from employers. For more information about the PBGC and the benefits it guarantees, ask your Plan Administrator or contact the PBGC s Technical Assistance Division, 1200 K Street N.W., Suite 930, Washington, DC or call (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at and ask to be connected to Additional information Description 18

22 about the PBGC s pension insurance program is available through the PBGC s web site on the Internet at Description 19

23 LEAVES OF ABSENCE You may be able to continue your participation during leaves of absence under this Plan under certain circumstances. Continuation of Participation While on Approved Leaves of Absence If you take an approved paid leave of absence (including short-term and long term disability leave), you will continue to participate in the Plan as if you were an active employee until your employment terminates. You cannot commence a final distribution of your benefit until service stops and after you have reached your Earliest Retirement Date. If you take an approved unpaid leave of absence other than a long-term disability leave, you will continue to accrue Eligibility Service for up to 24 months. After 24 months, your participation in the Plan will stop, other than as required by law. If you take an approved unpaid medical leave of absence without pay or are collecting Long Term Disability Benefits, your leave of absence for up to 12 months will count towards your Benefit and Eligibility Service. You cannot commence a final distribution of your benefit until your service stops. For more information on disability benefits, please see the section If You Become Disabled on page 9. Continuation of Participation for Employees in the Uniformed Services (USERRA) The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) guarantees certain rights to eligible employees who enter military service. The terms Uniformed Services or Military Service mean the Armed Forces (i.e., Army, Navy, Air Force, Marines Corps, Coast Guard), the reserve components of the Armed Services, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty, the commissioned corps of the Public Health Service, and any other category of persons designated by the President in time of war or national emergency. Upon reinstatement, you are entitled to the seniority, rights and benefits associated with the position held at the time employment was interrupted, plus additional seniority, rights and benefits that would have been attained if employment had not been interrupted. These rights include service credit under the Plan for purposes of calculating a benefit and becoming vested. Such leave will not constitute a break in service. In addition, if you die while in active duty, the Plan will treat you as though you died while actively employed under the Plan. Description 20

24 If you think you may be eligible for these special rights under USERRA, please contact your local human resources representative. Continuation of Participation While on a Family and Medical Leave (FMLA) Under the federal Family and Medical Leave Act (FMLA), if you meet eligible service requirements, you are entitled to take up to 12 weeks of leave for certain family and medical situations. An absence under the Family and Medical Leave Act will not constitute a break in service for purposes of this Plan. You will continue to earn Benefit and Eligibility Service during your leave. Description 21

25 YOUR RIGHT TO APPEAL If you have any questions about the Novelis Pension Plan or if you wish to make a claim for benefits, you should contact the Plan Administrator. If you feel you have a right to a benefit under the Plan that you have not received, you may file a claim for the benefit with the Plan Administrator. Time Frame for Claim Determinations If you receive an adverse benefit determination (i.e., any denial, reduction or termination of a benefit, or a failure to provide or make a payment), the Plan Administrator will notify you of the adverse determination within a reasonable period of time, but not later than 90 days after receiving the claim. This 90-day period may be extended for up to an additional 90 days, if the Plan Administrator both determines that special circumstances require an extension of time for processing the claim, and notifies you, before the initial 90-day period expires, of the special circumstances requiring the extension of time and the date by which the Plan expects to render a determination. In the event an extension is necessary due to your failure to submit necessary information, the Plan s time frame for making a benefit determination on review is stopped from the date the Plan Administrator sends you an extension notification until the date you respond to the request for additional information. If You Receive an Adverse Benefit Determination The Plan Administrator will provide you with a notification of any adverse benefit determination, which will set forth: The specific reason(s) for the adverse benefit determination, References to the specific plan provisions on which the benefit determination is based, A description of any additional material or information necessary for you to perfect the claim and an explanation of why that material or information is necessary, and A description of the Plan s appeal procedures and time limits applicable to these procedures, including a statement of your right to bring a civil action under ERISA after an adverse determination on appeal. Procedures for Appealing an Adverse Benefit Determination You or your authorized representative has 60 days following the receipt of a notification of an adverse benefit determination within which to appeal the determination. Description 22

26 You have the right: Submit written comments, documents, records and other information relating to the claim for benefits. Request, free of charge, reasonable access to and copies of all documents, records and other information relevant to your claim for benefits. For this purpose, a document, record, or other information is treated as relevant to your claim if it: Was relied upon in making the benefit determination, Was submitted, considered or generated in the course of making the benefit determination, regardless of whether such document, record or other information was relied upon in making the benefit determination, and Demonstrates compliance with the administrative processes and safeguards required in making the benefit determination. A review that takes into account all comments, documents, records and other information submitted by you related to the claim, regardless of whether the information was submitted or considered in the initial benefit determination. The Plan Administrator will notify you of the Plan s benefit determination on review within a reasonable period of time, but not later than 60 days after receipt of your request for review by the Plan. This 60-day period may be extended for up to an additional 60 days, if the Plan Administrator both determines that special circumstances require an extension of time for processing the claim, and notifies you, before the initial 60-day period expires, of the special circumstances requiring the extension of time and the date by which the Plan expects to render a determination on review. In the event an extension is necessary due to your failure to submit necessary information, the Plan s time frame for making a benefit determination on review is stopped from the date the Plan Administrator sends you notification of the extension until the date you respond to the request for additional information. The Plan Administrator s notice of an adverse benefit determination on appeal will contain all of the following information: The specific reason(s) for the adverse benefit determination, References to the specific plan provisions on which the benefit determination is 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 information relevant to your claim, and A statement describing any voluntary appeal procedures offered by the Plan and your right to obtain the information about such procedures, and a statement of your right to bring an action under ERISA. NOTE You must use and exhaust the Novelis Pension Plan s administrative claims and appeals procedure before bringing a suit in federal court. Similarly, failure to follow the Plan s prescribed procedures in a timely manner will also cause you to lose your right to sue regarding an adverse benefit determination. If you want to bring suit in federal court, you must do so within 180 days of the notice of adverse benefit determination on appeal. Description 23

27 YOUR RIGHTS UNDER ERISA As a participant in the Novelis Pension Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: Receive Information About Your Plan and Benefits Examine, without charge, at the Plan Administrator s office and at other specified locations, such as work sites, all documents governing the Plan including a copy of the latest annual report (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 the Plan Administrator, copies of documents governing the operation of the Plan, including copies of the latest annual report (Form 5500 Series) and updated SPD. The administrator may make a reasonable charge for the copies. Receive a summary of the Plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. Obtain a statement telling you whether you have a right to receive a pension at your normal retirement age (age 65) and if so, what your pension benefits would be at normal retirement age under the Plan if you stop working now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to get a right to a pension. This statement must be requested in writing and is not required to be given more than once every 12 months. The Plan must provide the statement free of charge. Prudent Actions by Plan Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other plan 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. Enforce Your Rights If your claim for a pension benefit is denied or ignored, in whole or in part, you have the 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. Description 24

28 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 may file suit in a Federal court. In such a case, the court may require the Plan Administrator 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 the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file a suit in a state or federal court, but only after you have exhausted the Novelis Pension Plan s claims and appeals procedures as described in the section Your Right to Appeal on page 21. 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 a Federal court. If it should happen that plan fiduciaries 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 your claim is frivolous. Assistance With Your Questions If you have any questions about your plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, 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. Description 25

29 YOUR EMPLOYMENT This Summary Plan Description (SPD) provides detailed information about the Novelis Pension Plan and how it works. This SPD does not constitute an implied or express contract or guarantee of employment. Similarly, your eligibility or your right to benefits under Novelis Pension Plan should not be interpreted as an implied or express contract or guarantee of employment. Employment decisions are made without regard to benefits to which you are entitled upon employment. Description 26