Revised: September 2018 The following questions are intended to provide answers to questions frequently asked by participants covered by the identified plans or policies upon ending employment with Appvion. Eligibility to participate is determined by the terms of the plan, policy and any elections you may have previously made. 401k 1. How do I know if I m vested in my account? You are always 100% vested in your employee contribution account. The company contributions (including Retirement Contribution) become vested 20% per year of service with the company. Therefore, after 5 years of service with the company, you are 100% vested in the company contributions. Your most recent statements from Principal will show your vested account balance or you can view your balance online at www.principal.com. Any non-vested company contributions will be forfeited upon termination. 2. Is there a time limit when I have to decide what to do with my money? For the 401k Fund, you will receive a letter in the mail within 60 days after your final paycheck. You will be instructed to call Principal to make arrangements for your account. If Principal does not hear from you within 60 days and your account balance, when combined with your Company Stock Fund balance is greater than $5,000, your account will be deferred. If Principal does not hear from you within 60 days and your combined account balance is between $1,000 and $5,000, your 401k Fund account will be automatically rolled over to a personal IRA with Principal. If your combined account balance is less than $1,000, your account will be paid to you with the appropriate tax withholding. If you request a direct rollover to a personal IRA or other eligible retirement account, no taxes are withheld. 3. Will I be able to roll over my account to my next employer s 401k plan? Generally, yes. However, it depends on whether your new employer allows rollovers into their plan. Ask your new employer if they accept rollovers. 4. If I leave a balance in Appvion s 401k Plan after my employment ends (deferred), can I still contribute to my account? No. However, other retirement savings vehicles, such as personal IRAs, are available from most financial institutions and may allow contributions. 5. If I leave a balance in Appvion s 401k Fund after my employment ends, will I have the same investment options as I had as an active employee? Yes, you may utilize any of the current investment funds in our 401k Fund and move money between the 401k investment funds by calling Principal (800-547-7754) or using their website. 6. If I am age 55 or older when my employment with Appvion ends, is the distribution from my 401k subject to a 10% tax penalty? No, however your distribution is subject to Federal and State (except PA) income taxes if you take a cash distribution directly from Appvion s plan. The 10% penalty applies if you rollover your funds/account to a personal IRA and then take a cash distribution from that IRA prior to age 59 ½. FAQ_Salaried_Revised_09-2018 1
7. If my employment with Appvion ends before age 55, but I wait until after age 55 to get a distribution from my 401k, is my distribution still subject to the 10% penalty? The IRS has an exception if your employment ends in the year you will realize age 55. There is no 10% penalty if the participant separated from service during or after the calendar year in which the participant reaches age 55. Please consult the IRS.gov website for more information. 8. What if I delay requesting a distribution until sometime in the future, who do I contact? Contact Principal at 800-547-7754 when you are ready to request a 401k distribution. 9. What if I have an outstanding loan balance when my employment ends? You have 90 days to repay the loan balance in full, either by: (a) electronic check via Principal s website; (b) cashier s check; or (c) money order. You can find out your loan payoff balance contacting Principal at 800-547-7754. If the loan is not repaid in full within 90 days of your termination of employment, or if you receive a distribution from the Plan before 90 days has expired, the outstanding loan balance will be treated as a taxable distribution and reported to the IRS as taxable income. 10. If I do not repay my outstanding 401k loan balance within 90 days of my employment ending and the outstanding loan balance defaults, will that affect my credit? No. 11. Will 401k be deducted from severance pay? No, severance pay is ineligible for any 401k deferrals. 12. When my employment is terminated, am I still eligible for the company s Retirement Contribution into the 401k Fund? When does the Retirement Contribution end? The company s Retirement Contribution will continue to be funded, based on your age + service percentage, through your last regular paycheck. Severance pay is ineligible for Retirement Contributions. Pension Employees with a vested pension benefit through Appvion can contact Pension Benefit Guaranty Corporation (PBGC) to request pension estimates or benefit commencement. PBGC: 800-400-7242 Reference Plan # 23316700 Medical 1. What is COBRA? The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their families who lose health benefits the option to continue health benefits for a limited period under certain circumstances. Circumstances include voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. 2. How do I enroll in COBRA? Appvion s COBRA benefits are administered by a third party administrator, the Benefit Services Group (BSG). BSG will send your COBRA enrollment packet to your home. You must complete and return your election directly to BSG. FAQ_Salaried_Revised_09-2018 2
3. How will I know what my COBRA premiums will be? During a portion of your severance period, the company will continue its contribution towards your medical and you will be responsible to pay the same amount you did as an active employee. Once that period ends, your COBRA rate will change and you will be responsible for the entire COBRA premium. 4. Will I have a gap in my medical (and/or dental) coverage? The carrier(s) will be notified that your coverage terminates as of your last day of employment. Until you complete your COBRA election and return it to BSG, inquiries to the carrier from your doctor/pharmacist/dentist will show you have no coverage. However, once you complete and return your election, your coverage will be reinstated retroactively to your termination date. Any claims incurred prior to the reinstatement will be reprocessed. 5. Can I change my medical benefits during my COBRA period? Yes. While covered under COBRA, you will have an opportunity to make an annual medical election effective with each open enrollment for a January 1 effective date. 6. If I enroll in other coverage after my termination (such my spouse s plan), can I get back onto Appvion s COBRA benefits later? No. Once you decline, discontinue, or stop paying the premium, it is a permanent decision and you cannot get back onto Appvion s COBRA coverage at a later date. 7. How do I pay for my COBRA coverage? Once BSG receives your COBRA election, they will send you payment slips that indicate the amount due each month. Simply remove the slip for the applicable month and send it along with your payment to the address indicated. COBRA payments must be mailed to BSG. Do not mail COBRA payments to Appvion. If you stop paying the premium or your payment is late, your COBRA coverage will be terminated and you cannot get back onto Appvion s COBRA coverage. 8. Can I continue to use the Workplace Clinic? (Appleton area residents) Retirees (employment terminates at or after 55 years old with at least 10 years service), retirees spouses, and retirees dependents over age 12 may use the Workplace Clinic at no premium cost as long as you are enrolled in an Appvion sponsored medical plan and are not eligible for Medicare. You must elect to continue the Workplace Clinic by returning the COBRA election paperwork to BSG. Non-retirees will be offered COBRA on the Workplace Clinic and must pay the premium indicated on your COBRA election paperwork. You must elect to continue the Workplace Clinic by returning the COBRA election paperwork to BSG. 9. Should I consider obtaining coverage on the Marketplace (health care exchange)? Yes, you can visit healthcare.gov to research individual medical plans available to you and your family through the Marketplace. You may be able to obtain coverage at a lower cost than through COBRA. Note that you have 60 days from your termination of employment to enroll in coverage through the Marketplace. The next opportunity would be late in the calendar year during the Marketplace s open enrollment period. Visit www.healthcare.gov for more information. FAQ_Salaried_Revised_09-2018 3
Health Savings Account (HSA) 1. Will my Health Savings Account deduction be taken from my last paycheck? No, your last regular paycheck will not have HSA deducted. Nor will HSA be deducted from your severance benefits. 2. What happens to my HSA balance at Wage Works/Optum Bank? Your HSA is a personal bank account and remains available to you for payment of medical expenses. If you continue to be enrolled in a qualified high deductible health plan, you can make arrangements to continue contributions into your account from another source (not Appvion s payroll). By default, your account at Wage Works and Optum Bank will remain open and you will be charged a $4 monthly fee deducted from your account. If you wish to stop using Wage Works or Optum Bank, please see the Moving Forward with your HSA flyer. Severance 1. How will my severance payments be handled? After the Revocation Period of the Separation Agreement has expired, your conditional severance payments will be paid bi-weekly on the usual and customary pay dates for Appvion s employees and deposited into the bank account(s) you have elected. 2. What will be withheld in taxes from my severance benefit? Under Federal law, severance pay is considered supplemental wages and as such is subject to a flat 22% Federal income tax withholding rate. Appvion will apply the required Federal supplemental wage withholding rate along with the other required FICA, state and local withholdings to all severance wages. 3. Will child support (or other garnishments) be withheld from my severance benefit? The answer varies by individual. Appvion will contact the court that issued the child support (or garnishment) order to confirm if a deduction must be taken. 4. Will 401k deductions be taken out of my severance benefit? No. The severance benefit is not eligible for 401k contributions, the company Retirement Contributions, or company match. 5. Will my Health Savings Account deduction be taken out of my severance benefit? No. 6. Is there anything else that could be deducted from my severance benefit? No deductions will be taken for health and welfare benefits such as medical and dental. Donations to United Way, if applicable, will be deducted from severance pay. 7. Can I receive severance and pension at the same time? You will need to contact the Pension Benefit Guaranty Corporation (PBGC) at 800-400-7242 Reference Plan # 23316700. They will determine if you can collect your pension while receiving severance benefits. FAQ_Salaried_Revised_09-2018 4
8. I have worked for Appvion for less than one year, am I eligible for severance and if so, how much? Employees with less than one year of service are eligible for severance benefits. The minimum of 6 weeks applies. Please refer to the Severance Pay Plan for Salaried Employees. 9. While collecting severance, am I still considered employed for the purpose of a job application? Although you may be receiving severance payments, you are no longer considered employed by Appvion after your last day of work. Life Insurance 1. What happens to my Appvion life insurance when my employment ends? If enrolled, basic life and AD&D (company provided), additional life and AD&D, spouse life, child life and supplemental AD&D coverage ends on your termination date. You can choose to purchase a continuation policy with Voya (the carrier with which Appvion contracts its life insurance). 2. How do I purchase a continuation policy for my life insurance? Please reference the brochure provided to you entitled Life Insurance Portability & Conversion for an explanation of the options available. You will receive a letter in your home mail directly from Voya following your termination with premium rates and an election form. If you wish to purchase a policy, you must complete and return the form to Voya within 31 days of receipt of the form. Long Term Disability Insurance 1. What happens to my long term disability insurance when my employment ends? Long term disability coverage ends on your termination date. Vacation and Holiday Pay 1. How is my vacation calculated upon termination? Your vacation earned is prorated based upon the number of full months you worked in the calendar year. Any vacation days you took prior to your termination will be subtracted. If you earned more vacation time than you took, you will receive a payout on your last regular paycheck not to exceed ten (10) days, unless required by law. If you took more vacation time than you earned, the difference will be deducted from either your final pay or your severance benefit payment. 2. Will benefit deductions come out of my vacation payout? Your vacation payout, if any, will be combined with your final regular paycheck. Vacation pay is eligible for 401k deferrals401k. As noted earlier, your final regular paycheck will not have other welfare benefit deductions such as medical, dental, HSA, or life withheld. 3. Are floating holidays paid out? Floating holidays are paid on a pro-rated basis. Please refer to the company policy entitled Holidays for Non-Union Employees. Floating holidays are considered additional vacation days and subject to the maximum payout of 10 days (see question 1 above). FAQ_Salaried_Revised_09-2018 5
Miscellaneous 1. Can I get a letter of recommendation from my manager? An employment verification letter will be included in your severance packet. If something additional is needed, please contact Human Resources. 2. Is there any impact on the Charles S. Boyd/Appvion Scholarships? If your dependent is already receiving a scholarship, it will continue to be paid for the years remaining on the original award as long as the dependent meets continuing eligibility requirements. In future years, dependents of retirees are eligible to apply. Dependents of terminated employees are not eligible to apply. 3. Can I continue to use the Wellness Center? (Appleton, WI area residents) Terminated employees cannot use the Wellness Center unless you meet the definition of a retiree (employment terminates at or after 55 years old with at least 10 years service). Retirees may contact the Wellness Center at 991-8473 to set up an appointment to obtain a security badge. FAQ_Salaried_Revised_09-2018 6