Noblis Retirement Program Summary Plan Description 2018 Noblis, Inc January 2018 Information was provided by Noblis, Inc. Fidelity Investments is not responsible for its content.
Table Of Contents SECTION I: ABOUT YOUR RETIREMENT PROGRAM About this Summary Plan Description (SPD)... 1 A Plan to Help You Save for Retirement...1 Participating in the Program...4 SECTION II: CONTRIBUTIONS TO THE PROGRAM Contribution Structure... 9 Contributions to the Program...11 How Contributions Are Taxed...15 Rollover Contributions...16 SECTION III: PLAN INVESTMENTS Plan Investments and Making the Most of Your Benefits...17 Six Investment Categories...18 Your Investment Choices with Fidelity...18 Investment Options for TIAA Accounts...20 Making Your Investment Selection...21 Changing Your Investment Selection...23 Future Contributions...28 Section 404(c)...28 SECTION IV: RECEIVING BENEFITS When You May Receive Benefits (Distributions)...29 Minimum Distribution Requirements...30 Payment Options...30 Program Loans...35
Table Of Contents Withdrawals During Employment...36 SECTION V: OTHER INFORMATION Tax Considerations...40 How to File a Claim...45 Basic Administrative Information about Your Benefits...47 Your Rights Under ERISA...51 Qualified Domestic Relations Order...53 For More Information...54 GLOSSARY
Plan Investments About This Summary Plan Description This Summary Plan Description of the Noblis Retirement Program (this SPD ) includes important information about the two retirement plans that are sponsored by Noblis, Inc. and any participating affiliates (the Company ), which together are referred to as the Noblis Retirement Program, or Program. This SPD describes who is eligible, how the program works, and what you will need to do to maintain your retirement account. Important administrative information is also included, in addition to a glossary of terms. A Plan to Help You Save for Retirement These days, most people know that no single source of income will be enough for retirement. That is why the Company offers you a plan to help you save: the Noblis Retirement Program. Together with your personal savings and Social Security benefits, this Program can help you save money on a regular basis and invest for your retirement and other long-term financial goals. To help you build even more savings, the Company also makes contributions to the Program on your behalf under certain circumstances. There are three levels of participation, as described below: Level I: Basic Required Contributions for Regular Employees Regular employees (those scheduled to work at least 20 hours per week, as described in the next section) are automatically enrolled in Level I contributions. In Level II, you will make your own Basic Required contributions, and the Company will also make Basic Required contributions on your behalf. Employee
Plan Investments and Company contributions in Level I must be pre-tax. Once you are enrolled in Level I contributions, you will stay enrolled in Level I for as long as you work for the Company, even if your job status with the Company changes. Level I contributions are mandatory and are not subject to the IRS maximum elective deferral contribution limit. Level II: Voluntary Contributions for Regular Employees If you are a regular employee (as described in the next section) and you want to contribute more to the Program and receive additional Company contributions, you may choose to participate in this level, in addition to Level I, up to the IRS limits. You may elect to have your Level II employee contributions made either pre-tax or after-tax (also known as Roth ), or a combination of pretax and Roth. In addition, the Company will match your Level II contributions, on a one-to-one basis, up to 6%, on a per pay period basis. The Company contributions in Level II are pre-tax. You may enroll in, or un-enroll from, your Level II contributions at any time. Level III: Voluntary Unmatched Contributions If you are not considered a regular employee and are not eligible to enroll in Level I or Level II, you may choose to participate in Level III only, up to the IRS limits, and these contributions can be made pre-tax or after-tax, or a combination of pre-tax and Roth. The Company does not make any matching contributions under Level III. You may enroll in, or un-enroll from, your Level III contributions at any time. Regardless of whether you are participating in Level I, II or III contributions, if you elect to contribute on a pre-tax basis, you will reduce your current taxable wages. The earnings from these investments will accumulate on a tax-deferred basis until you
Plan Investments withdraw your money from the Program, at which time you will be taxed based on your income tax rate at that time. On the other hand, if you elect to contribute on a Roth (after-tax) basis for Level II or Level III contributions, you will be taxed on your plan contributions, but you will not be taxed on plan withdrawals, so long as your initial after-tax contribution was made at least five years prior to the date of your withdrawal and you meet the age requirements (currently, 59 ½) for withdrawal without penalty. You may elect to contribute all of your Level II or Level III contributions as pre-tax or as Roth (after-tax), or as a combination of pre-tax or Roth (after-tax). Other restrictions apply to any withdrawal from the Program, and those are addressed in greater detail below in Section IV of this SPD, Receiving Benefits. You may choose to invest your savings and Company contributions in one or a combination of different investment funds, based on your personal investment risk tolerance and other financial considerations. Analyzing your retirement savings goals and current situation before making investment decisions is critical. You should consider an asset allocation strategy that matches your unique financial needs, investment risk tolerance, and timeframe for when you plan to retire. You (or your beneficiary) will be entitled to receive the value of your accounts when you: Retire Die
Plan Investments Leave the Company, subject to any vesting for Company contributions, or Reach certain age requirements, making you eligible for in-service distributions Other Retirement Benefits In addition to the Program, you may receive governmentsponsored benefits from Social Security. The Company pays half the cost of providing your Social Security benefits by matching the Social Security tax withheld from your pay. If you are actively employed by an affiliate of the Company and you meet the eligibility requirements of that affiliate s retirement program, you will not be eligible to participate in the Noblis Retirement Program. However, if you transfer between affiliates, it may be possible for you to have balances in multiple plans, but not actively contribute to multiple plans, at the same time. Participating in the Program Your Eligibility Regular Employees You are considered a regular employee, whether full-time or part-time, if you are regularly scheduled to work at least 20 hours per week or 1,000 hours per year. If you are classified as a regular employee, then you are automatically enrolled in the Program, and must make Level I employee contributions for as long as you work for the Company (including periods of re-employment or changes in employee status). You will also be entitled to receive the Level I required Company contributions. In addition, as a regular employee, you may elect to enroll in Level II contributions at any time while you are employed at the
Plan Investments Company. Only Level I requires enrollment during all periods that you work for the Company. Your Eligibility Non-regular and Other Employees If you are a non-regular employee (part-time less than 20 hours per week or less than 1,000 per year), or if you are employed in an oncall, seasonal or temporary position, and if you have never been classified as a regular employee of the Company, then you are only eligible to enroll in Level III employee contributions, which are not matched by the Company. As a non-regular employee, you may enroll in, or un-enroll from, Level III contributions at any time. In addition, as a non-regular employee you may be eligible to enroll in Level I and Level II contributions under very limited circumstances, as required by IRS rules and regulations, which are: Completion of a year of service (12 months of employment), AND Completion of at least 1,000 or more hours of service in your first year (an hour of service is any hour for which you are paid, directly or indirectly, such as for holidays, vacation, disability leave, approved leaves of absence, military duty, etc.). If you do not meet the 1,000 hour requirement within your first year of service, you will be automatically enrolled in Level I contributions upon your completion of 1,000 hours in a subsequent calendar year. Once your employment status changes from being a non-regular employee to a regular employee, and you become automatically enrolled in Level I contributions, you are required to remain enrolled in Level I contributions for as long as you work for the Company (including periods of re-employment or subsequent
Plan Investments changes in employee status). You will also be eligible to enroll in Level II contributions. Leased employees (i.e. contractors) are not eligible to participate in the Program. Enrolling in the Program If you are a regular employee, you will be automatically enrolled in Level I of the Program. If you are a regular employee who wants to participate in Level II contributions, or if you are a non-regular employee who wants to make Level III contributions, you must designate your contribution percent through e-gateway, located on the KNOW, in order to enroll in Level II or Level III. This election authorizes the Company to reduce your salary by the amount you elect to contribute. You also must indicate if your Level II or Level III contributions are to be made on a pre-tax, Roth (after-tax), or a combination pre-tax/roth (after-tax) basis. An account will be established for you with Fidelity that will invest your money in the qualified default investment alternative fund that has been selected by the Company and that meets the standards defined by the Department of Labor. It is recommended that you login to your account with Fidelity and review and update your investment fund selections. (For more information on the funds, please see Section III of this SPD, Plan Investments.) You must also indicate your choice of beneficiary on-line with Fidelity. Please note that if you are married, you must name your spouse as your primary beneficiary unless you have written and notarized consent from your spouse to name someone else. Once you enroll in the Program as a regular employee, your participation must continue until you:
Retire Die Terminate employment Plan Investments Vesting Vesting is your right to the value of the money in your account. Your vesting is dependent upon your date of hire and employee status. If you were hired prior to January 1, 2010, you are 100 percent vested in all contributions to your account, including your contributions, the Company s contributions, and any investment earnings on that money. If you were hired on or after January 1, 2010, and were either actively employed with the Company on January 1, 2015 or rehired by the Company after January 1, 2015, you are 100 percent vested in all contributions and related earnings to your account. If you were hired after January 1, 2010, but separated from service prior to January 1, 2015 and were never subsequently rehired, the Company s contributions and related earnings are subject to the following vesting schedule: Years of Vesting Service Vested Percent Less than 1 none 1 20% 2 40% 3 60% 4 80% 5 100%
Plan Investments Service with a Noblis subsidiary is generally included in the calculation of your years of vesting service, although certain exceptions may apply. You may confirm your vesting status with the Noblis Benefits Department, if necessary. If you leave employment with the Company, you are eligible to receive the vested value of your account, as explained below, under the Section IV of this SPD, Receiving Benefits. If you die while employed, you will become 100% vested immediately. If you retire and are age 65 or older at the time of retirement, you will become 100% vested immediately. Forfeiture of Company Contributions Due to Non-Vested Balances If you left the Company prior to January 1, 2015 and prior to completing 5 years, your non-vested Company contributions will be forfeited. If you return to the Company as a rehire within five years, your forfeited balance will be eligible for restoration, provided you repay any distributions you received after your termination within five years of your rehire date. Noblis Benefits Department can answer specific questions regarding reinstatement of forfeited balances. Contribution Structure Your Program is made up of two plans: Noblis, Inc. Qualified Retirement Plan, a 401(a) plan This Plan is made up of the Company s basic required contribution in Level I
Plan Investments Noblis, Inc. Tax-Sheltered Annuity Plan, a 403(b) plan This Plan is made up of all employee contributions in Levels I, II, and III, as well as the Company s matching contribution in Level II. The amount you and the Company contribute depends on: How much you want to contribute Your annual base salary The elective salary deferral limit and the annual compensation limit (subject to change annually by the IRS) The chart on the following page gives an overview of the three levels of the Program, which are described in more detail below.
Plan Investments Level I: Basic Required Contribution (Regular employees only) Employee s Contributions The Employee s Basic Required Contributions (Part E1) 3% of salary* per pay period The Company s Contributions The Company s Basic Required Contributions (Part N1) The Company contributes 3% of salary* per pay period Level II: Voluntary Contribution (only available if you are a regular employee enrolled in Level I and wish to contribute more) Level III: Voluntary Unmatched (available if you are a nonregular employee) Voluntary Contribution (Part E2) You may make additional contributions of your salary per pay period up to the limit set by law** Voluntary Unmatched (Part E3) You may make contributions of your salary* (unmatched) per pay period, up to the limit set by law** The Company s Match (Part N2) The Company matches your Level II E2 contributions, up to 6% of your salary* per pay period
Plan Investments * Salary refers to your base salary, up to the IRS eligible compensation limit ($275,000 in 2018). ** Your contribution may be limited by law. For 2018, the maximum voluntary contribution limit for your own Level II and or Level III contributions to the Program is $18,500, or $24,500 if you are 50 years of age or older or will turn 50 years of age during the calendar year. Since Level I are required contributions, they are not subject to the IRS $18,500 or 24,500 limits Contributions to the Program Level I: Basic Required Contributions When hired as a regular employee, or when you meet the criteria for being classified as a regular employee, you must make the Basic Required contribution under Level I, which is equal to 3% of your annual base salary. This contribution is made pre-tax, which means that contributing to the Program also reduces your current taxable income. When you make your Basic Required contribution, you are also eligible to receive the Company s Basic contribution, which is equal to 3% of your annual base salary. For purposes of the Program, base salary includes only regular earnings. It does not include incentives, overtime, bonuses, PTO payouts or other special pay. Once enrolled in Level I of the Program, you will remain enrolled for as long as you are an employee of the Company, including any periods of re-employment or changes in employment status. These contributions are required as a condition of employment, so the IRS deferral limits do not apply to Level I contributions.
Plan Investments Level II: Voluntary Contributions If you are a regular employee who is required to make contributions under Level I, you may also elect to make additional voluntary contributions under the Program, subject to legal limits. You have the option of making your Level II contributions on a pre-tax, Roth (after-tax), or a combination pre-tax and Roth (aftertax) basis. You may contribute up to the IRS maximum contribution limit. Your Level II voluntary contributions are matched by the Company, on a one-to-one basis, up to 6% of your base salary per pay period. Level II voluntary contributions in excess of 6% are not matched by the Company. Level III: Voluntary Unmatched Contributions If you are a non-regular employee, you may elect to make voluntary unmatched contributions under Level III if you wish to contribute toward a retirement account. While your Level III contributions are not matched by the Company, they do increase your retirement savings. Level III contributions may be either pre-tax or post-tax.
Plan Investments Examples Example #1: Level I Contributions: This example assumes that a regular employee is participating only in Level I of the Program. Contributions to Level I are not considered part of the IRS contribution limit since they are a condition of employment. Annual Base Salary $40,000 $90,000 $120,000 Employee Basic Required Annual Contributions (E1) 3% of Base Salary $ 1,200 $ 2,700 $ 3,600 Noblis Basic Annual Contributions (N1) 3% of Base Salary $ 1,200 $ 2,700 $ 3,600 Total contributions Level I $ 2,400 $ 5,400 $ 7,200 Note: Level I participant contributions may only be made on a pre-tax basis.
Plan Investments Example #2: Level II Contributions: This example assumes that the same regular employee who is participating in Level I contributions also elects to further participate in the Program by making Level II contributions, in order to maximize the Company matching contribution, as well as the IRS contribution limit on elective contributions by the employee (which, for 2018, is $18,500 if the employee is under age 50, or $24,500 if the employee is age 50 or older, or will turn age 50 during the calendar year). Annual Base Salary $40,000 $90,000 $120,000 Employee Voluntary Annual Contributions (E2) 6% of Base Salary $ 2,400 $ 5,400 $ 7,200 Unmatched Contribution up to IRS Limit of $18,500, assuming under age 50 $16,100 $13,100 $11,300 The Company s Matching Annual Contributions (N2) 6% of Base Salary $ 2,400 $ 5,400 $ 7,200 Total Contributions Total Level II Contributions by Employee & Company $20,900 $23,900 $25,700 Total contributions to Levels I and II between Examples #1 and #2 $23,300 $29,300 $32,900
Plan Investments Example #3: Level III Contributions. This example assumes participation by a non-regular employee in Level III of the Program, subject to the IRS contribution limit on elective contributions by the employee (which, for 2018, is $18,500 if the employee is under age 50, or $24,500 if the employee is age 50 or older, or will turn age 50 during the calendar year). Annual Base Salary $40,000 $90,000 $120,000 Employee Voluntary Unmatched Annual $ 1,600 $ 3,600 $ 4,800 Contributions (E3) (for example, 4%) The Company s None None None contributions Total contributions $ 1,600 $ 3,600 $ 4,800 Maximum Contribution Amount and IRS Limits The maximum amount you can contribute to the Program for each calendar year depends on: Any 403(b) or 401(k) contributions made by you through another employer in that calendar year Any contributions made on your behalf by the Company or another employer in that calendar year The lessor of 75% of your base wages (set at 75% of base wages to ensure you have enough wages to cover any other payroll deductions) and The annual limitation on elective salary deferral contributions for each calendar year, which is set by the IRS and may change each year. (For 2018, this limit is $18,500 if you are under age 50, or $24,500 if you are age
Plan Investments 50 or over.) Once you reach the IRS limit, you cannot contribute to your account for the rest of the plan year. In addition, once you have earned wages equal to the annual limit on compensation that can be included under the Program, which is set by the IRS each year (and is $275,000 for 2018), you cannot make additional contributions to the Program for the remainder of that calendar year. For more detailed information on contribution limits, contact the Noblis Benefits Department. Changing Your Contribution Amount If you are a regular employee, you are required to remain enrolled in Level I contributions for as long as you are employed by the Company. For Level II or Level III contributions, however, you may change the level of your contributions by starting, increasing, decreasing, or stopping them, as often as you like and at any time. How Contributions Are Taxed All contributions under Level I are made on a before-tax basis. You may elect to have your contributions under Level II and Level III made on a before-tax or after-tax (also known as Roth) basis. You may change your Level II or Level III contributions and balances, or a portion of your contributions and balances, from before-tax to Roth (after-tax), or vice versa, at any time. Your tax treatment election will remain in effect for future contributions until changed by you. All contributions made by the Company on behalf of a regular employee, whether under Level I or Level II, will be made on a before-tax basis.
The Before-Tax Advantage Plan Investments Before-tax means that you defer paying federal and, in most cases, state and local income taxes on your contributions. Saving on a before-tax basis reduces the amount of your taxable pay today, meaning you pay less current income tax. In addition, the investment earnings on your savings accrue on a tax-deferred basis. You do not pay income taxes on your tax-deferred contributions and earnings until they are withdrawn from the Program. At the time of withdrawal, you pay income tax on both your contributions and earnings at your then current income tax rate. You will also pay taxes on the Company contributions and earnings upon withdrawal since they are made on a before-tax basis. The After-Tax Advantage After-tax (or Roth (after-tax)) means that you pay federal and, in most cases, state and local income taxes on your contributions at the time the contributions are made. Saving on a Roth (after-tax) basis does not reduce the amount of your current taxable pay. Compared to a before-tax contribution, you will pay more in income tax for the current year; however, when you withdraw your contributions and earnings from the Program, you will ordinarily not be taxed as long as certain conditions are met. Specifically, earnings on your Roth (after-tax) contributions are taxable only if withdrawn within 5 full calendar years after you first begin making Roth (after-tax) contributions, or before you reach age 59 ½, unless the withdrawal is due to your death or disability. Rollover Contributions The Program will accept pre-tax rollover contributions from 401(k), 403(b), 401(a), and IRA plans into the Noblis Tax Sheltered Annuity 403(b) Plan. Roth 401(k), Roth 403(b) and
Plan Investments other after-tax balances may not be rolled into the Program. If you would like to take advantage of the rollover option, please contact Fidelity directly at 1-800-343-0860. Plan Investments and Making the Most of Your Benefits Participating in the Program requires that you make some decisions about investing your money. When you invest, you hope to get back more money than you originally put in. The additional amount is called the return on your investment. Risk is the possibility that the value of your investment will decrease or not increase at the expected rate due to investment losses or changes in the amount of the return. The investment funds offered by the Program vary in the degree of risk and the amount of investment return you get for your money. Before you decide which funds you want to use, you will need to examine your investment objectives, the performance of each fund, and the investment fees charged by each fund. Then, you will need to make some decisions. How will you know which combination is best for you? It all depends on your personal situation investment objectives, investment horizon (how soon you will want to withdraw your money), and willingness to accept risk. Of course, everyone s personal situation is different. You may wish to consult a financial advisor to determine which investment strategy is best for you. To help you make your investment selections, performance and fee information on the funds is available from Fidelity. Past performance is no guarantee of future performance, so you must review the investment options carefully.
Six Investment Categories Plan Investments Investment Categories Description Money Market Principal typically preserved and interest income fluctuates StableValue Bonds Domestic Equity International Equity Specialty Equity Generally More Conservative Generally More Aggressive Seeks to preserve principal and provide steady interest income Fixed income investments US company stocks Foreign, both developed and emerging, company stocks Specific market concentration of company stocks Your risk of loss, along with the potential for gain, typically increases as your investment category becomes more aggressive. Your Investment Choices with Fidelity You may choose to invest all of your contributions under the Program Basic Required, Voluntary Matched, and Voluntary Unmatched in one or a combination of funds available through Fidelity. Available investments are organized in four tiers:
Plan Investments Tier 1: Life Cycle Funds Tier 2: Broad Market Funds Tier 3: Specific Market Funds Tier 4: BrokerageLink. You may invest in one tier, or a combination of tiers. Please consider mutual fund market overlap when crossing tiers. Tier 1: Life Cycle Funds includes Fidelity Freedom Funds. These funds are part of a mutual fund classification designed to evolve as you reach retirement age of 65 and beyond, becoming more conservative over time by adjusting the asset allocation among equities, fixed income and cash holdings. These funds satisfy the Qualified Default Investment Alternative criteria defined by the Department of Labor. The performance, management and fees of the Life Cycle Funds are monitored by the Company for appropriateness against industry benchmarks. If you do not specify any mutual fund investments, you will be automatically invested in the Fidelity Freedom Fund that most closely matches the year in which you will reach age 65. Tier 2: Broad Market Funds provide overall access to fixed income/bond and stock markets using a limited number of low cost indexed mutual funds. Tier 2 also provides a cash option. The performance, management and fees of the Broad Market Funds are monitored by the Company for appropriateness against industry benchmarks. Tier 3: Specific Market Funds provide access to targeted segments of the fixed income/bond and stock markets, facilitating greater control over specific market exposure. These funds may include indexed or actively managed investment options. Tier 3 also provides for a fixed income stable value fund. The performance, management and fees of the Specific Market Funds
Plan Investments are monitored by the Company for appropriateness against industry benchmarks. Tier 4: BrokerageLink is a service provided by Fidelity that allows you to establish an account to access a broad array of mutual funds. If you want to invest in options outside the Life Cycle, Broad Market, or Specific Market Funds that are made available in Tiers 1, 2 and 3, you must open a BrokerageLink account with Fidelity. You may establish a BrokerageLink account by contacting Fidelity. Minimums and fees may apply. The funds in which you invest through BrokerageLink are not monitored by the Company. All the investment funds differ in their income potential, in the level of risk they carry, and in their fees. Please keep in mind that you have control of how you invest both your and the Company s contributions. You will also be given voting, tender or similar rights offered by the individual investment fund as an account holder. Performance of the funds (and relative performance to benchmarks) can be found on Fidelity s NetBenefits website. Always request a copy of the prospectus and read it fully prior to investing in any mutual fund. You can obtain detailed information on the nature of each fund and its performance by contacting the Investment Fund Companies. Investment Options for TIAA Accounts If you have balances with TIAA as a result of contributions prior to 2007, you need to be aware of three types of contracts that govern your investments: TIAA Retirement Annuity (RA) For employee contributions in all levels and Company Voluntary Matched Contributions in Level II
Plan Investments TIAA Supplemental Retirement Annuity (SRA)/Group Supplemental Retirement Annuity (GSRA) For employee contributions only in Levels II and III TIAA Group Retirement Annuity (GRA) For Noblis Basic Contributions (Level I) These contracts differ in types of withdrawal options as explained later in Section IV of this SPD, Receiving Benefits. Investment performance and fees for TIAA funds can be obtained from their website at www.tiaa.org. The Company does not monitor the investment options offered through TIAA. Effective July 1, 2007, contributions to TIAA were no longer an option. If you had balances with TIAA at that time, you may keep your retirement funds with them. You may contact TIAA for information concerning the available funds. You may transfer balances from your account with TIAA to Fidelity, subject to the terms of the TIAA contract. You may not transfer Fidelity balances to TIAA. Making Your Investment Selection All current contributions made under the Program are directed to Fidelity. When making your investment selections, you will see that certain requirements exist based on the contribution types. The Fidelity website will map the contribution types appropriately; however, the mapping is shown below. The Company s Matching Contributions in Level II (N2 Contributions) are invested in exactly the same manner as that which you selected for your Basic Required Contributions in Level I (E1 Contributions). Other contributions, both yours (E2 and E3)
Plan Investments and the Company s (N1), may be invested independent of each level s investment selection. You may research and choose your investments on the Fidelity website or by contacting Fidelity for assistance. If you have made pre-tax contributions to the Program, any investment earnings in your accounts accumulate on a tax-deferred basis. This means you pay taxes on the investment earnings and contributions based on your income tax rate at the time you withdraw them from the Program. If you have made Roth (after-tax) contributions to the Program, any investment earnings in your accounts accumulate on a tax-free basis, and you will not pay any taxes on those earnings when you withdraw them, as long as at least 5 full calendar years have passed since you first began making Roth (after-tax) contributions (or if the withdrawal is due to your death or disability). Restrictions that impact withdrawals are discussed in greater detail below.
SECTION III: PLAN INVESTMENTS Changing Your Investment Selection Transfers among Fidelity Tiers 1, 2 and 3: The Life Cycle, Broad Market or Specific Market Funds You may change your investment mix among the Life Cycle, Broad Market or Specific Market Funds at any time by calling Fidelity or through your personal online account (NetBenefits sm ). Please be aware that although the Company and the Program do not impose any limitations on transfers to or from any investment fund, the funds themselves may impose fees and restrictions on certain transfers and exchanges. That information is contained in the fund prospectus. Before investing in any of the Life Cycle, Broad Market or Specific Market Funds, you should carefully review the fund prospectus. For more information, call Fidelity at 1-800-343-0860, Monday through Friday, 8 a.m. to 8 p.m. EST. Transfers to Tier 4, the Fidelity BrokerageLink You may elect to direct contributions or existing amounts in your account to a BrokerageLink account with Fidelity. Once a BrokerageLink account is established, you may change your investment mix at any time through your personal online account (NetBenefits sm ) or by calling Fidelity s Brokerage Department directly at 1-800-890-4015, Monday through Friday, 8 a.m. to 8 p.m. EST. Before investing in any mutual fund, you should carefully review the fund prospectus.
Transfers within TIAA SECTION III: PLAN INVESTMENTS he rules for transferring money in TIAA depend on the contract and the fund. You should read the fund prospectus and contract carefully. TIAA offers the following options: You may transfer your entire CREF account balance to TIAA Traditional, TIAA Real Estate, or other CREF funds. You may transfer your TIAA Traditional in the Retirement Annuity (RA) or Group Retirement Annuity (GRA) accounts ($10,000 minimum) to any of the CREF funds or the TIAA Real Estate fund through the Transfer Payout Annuity (TPA) option. The amount you elect is transferred over a 9-year period in equal annual installments. You may transfer your TIAA Traditional in the Supplemental Retirement Annuity (SRA)/Group Supplemental Retirement Annuity (GSRA) accounts to CREF or the TIAA Real Estate fund. You may transfer your TIAA Real Estate fund to either TIAA Traditional or any of the CREF funds. For more information about these options, contact TIAA at 1-800-842-2252. To transfer funds among TIAA options, you may use the TIAA Web Center System (your personal online account) or the Automated Telephone System at 1-800-842-2252. You may also call their staffed telephone center at 1-800-842-2776 (weekdays from 8:00 a.m. until 11 p.m. Eastern Standard Time, and weekends from 9:00 a.m. until 6 p.m. Eastern Standard Time).
SECTION III: PLAN INVESTMENTS Summary of Transfers Funds* Transfers Subject To Frequency Life Cycle, Life Cycle, Broad Anytime Broad Market, Specific Market or BrokerageLink Tiers offered through Fidelity Market, Specific Market or BrokerageLink Tiers offered through Fidelity CREF Funds CREF Funds Anytime CREF Funds TIAA Traditional, TIAA Real Estate Anytime TIAA Traditional (in the RA or GRA contracts) TIAA Traditional (in the SRA/ GSRA) TIAA Real Estate CREF or TIAA Real Estate CREF or TIAA Real Estate CREF or TIAA Traditional TPA** * See specific fund prospectus. ** Transfer Payout Annuity equal annual installments over 9 years. Transfers Between Fidelity and TIAA You may not transfer monies from one level to another, or between contribution categories (e.g., you cannot take money from your Anytime Anytime Once per calendar quarter, per contract
SECTION III: PLAN INVESTMENTS Basic Required contributions (E1) under Level I and invest it into the Company s Basic contributions (N1) under Level I). Transfers from CREF You may transfer all or part ($1,000 minimum or entire account if less) of your CREF account(s) to Fidelity for investment in the Life Cycle, Broad Market or Specific Market Tiers at any time. Transfers from TIAA Traditional You may transfer monies from your TIAA SRA/GSRA to Fidelity at any time. You may also transfer your TIAA RA/GRA accounts ($10,000 minimum or entire account) to Fidelity Life Cycle, Broad Market or Specific Market Tiers through the Transfer Payout Annuity (TPA); however, the amount you elect is transferred over a 9-year period in equal annual installments. Transfers from TIAA Real Estate You may transfer all or part to the Fidelity Life Cycle, Broad Market or Specific Market Tiers at any time ($1,000 minimum or entire account if less). Transfers from Fidelity to TIAA CREF You may not transfer monies from the Life Cycle, Broad Market, Specific Market, or BrokerageLink Tiers with Fidelity to TIAA at any time. You can transfer amounts from the Life Cycle, Broad Market or Specific Market Tiers 1, 2 and 3 with Fidelity to the BrokerageLink Tier 4 with Fidelity. However, it is not possible to transfer money directly from TIAA to BrokerageLink. It must pass through the Life Cycle, Broad Market or Specific Market Tiers at Fidelity first. Summary of Transfers between Investment Companies
SECTION III: PLAN INVESTMENTS To transfer part or all of your accumulations from TIAA to Fidelity, contact TIAA or Fidelity directly at the numbers listed under For More Information below for the necessary forms. Funds* Transfers Subject To Frequency TIAA Traditional (in RA or GRA accounts) TIAA Traditional (in the SRA/GSRA accounts) CREF TIAA Real Estate Fidelity: Life Cycle, Broad Market or Specific Market Funds Fidelity: Life Cycle, Broad Market or Specific Market Funds Fidelity: Life Cycle, Broad Market or Specific Market Funds Fidelity: Life Cycle, Broad Market or Specific Market Funds TPA** Anytime Anytime Anytime Once per calendar year, per contract Fidelity TIAA Not permitted * Read specific fund prospectus.
SECTION III: PLAN INVESTMENTS ** Transfer Payout Annuity balance transferred in equal installments over a 9 year period or within 120 days of termination of employment, subject to a surrender fee. Future Contributions All current contributions that are made under the Program are directed to Fidelity. You select whether your contributions are invested in the Life Cycle, Broad Market, Specific Market or BrokerageLink Tiers. Section 404(c) The Program is intended to be in compliance with the requirements stated in section 404(c) of ERISA. Under Section 404(c) of ERISA, if participants in certain company-sponsored savings plans are allowed to direct how their money is invested, the fiduciaries involved in the administration of the Program may be relieved of liability for investment losses. No other person controls, or is responsible for, the decisions you make about how your plan contributions are invested. The responsibility for those decisions is yours alone. That is one reason why it is so important to familiarize yourself with all of the Program features and investment choices. You may want to consider consulting with your financial advisor or a Fidelity representative about your investments. Fidelity has a fiduciary duty to act in your best interest when providing investment guidance and assistance to you.
SECTION IV: RECEIVING BENEFITS When You May Receive Benefits (Distributions) You (or your beneficiary) may receive benefits from the Program under the following circumstances: When you retire When you reach age 59 ½, for Level I employee contributions; Level II employee and Company contributions; and Level III employee contributions When you reach age 62 for Level I Company contributions If you leave the Company or At your death Your first contribution made on a Roth (after-tax) basis to Level II or Level III must be held in an investment account for five years from the date of the initial after-tax deposit if you want to avoid paying penalties. The funds that you (or your beneficiary) may receive are valued daily, and may be subject to vesting, as outlined earlier under Vesting. The Noblis Benefits Office can help you or your beneficiary in applying for payment from the Program. Generally, you may choose to receive your plan benefits as a lump sum, or in installment payments over a period of time. You may also elect to leave your money in the Program, subject to certain limits. If you need to receive plan funds while you are still employed, you may be able to do so through the Program s withdrawal provisions, or by taking a plan loan. These plan features are explained in more detail below.
SECTION IV: RECEIVING BENEFITS Minimum Distribution Requirements In order to avoid being subjected to tax penalties, retirement benefits under the Program must begin being distributed to you by April 1 of the calendar year following the later of: The calendar year in which you reach age 70½ or The calendar year in which you separate from service with the Company Minimum required distributions will be made to you in a form that satisfies the requirements under Code section 401(a)(9). For balances with Fidelity, your minimum required distribution will be based on assets in the Life Cycle, Broad Market, Specific Market and BrokerageLink Tiers. Should your balances in the Life Cycle, Broad Market or Specific Market Tiers be insufficient to meet your minimum distribution requirement, assets will be automatically transferred from your BrokerageLink account to meet the requirement. Payment Options Depending on the fund, there are six types of payments you can receive when you leave the Company: Lifetime Annuities These are monthly payments for your life and/or your beneficiary s life. You may elect: A single life annuity, which provides monthly payments for your life only A joint and survivor annuity with your spouse. If you are married, your benefits will automatically be paid
SECTION IV: RECEIVING BENEFITS in this form, unless your spouse consents to your election of a different form of payment. This annuity provides monthly payments to you and your spouse while you are living. If you die, your spouse will continue to receive at least 50 percent of the monthly payments for the remainder of his or her life. To waive this coverage and opt for a different form of payment, you must have the written consent of your spouse, as witnessed by a notary public or plan representative. A joint and survivor annuity with a beneficiary other than your spouse This annuity provides monthly payment to you for your lifetime, with 50% to 100% of the monthly payments continuing after your death to your beneficiary for the rest of his or her life. A single life annuity with a guaranteed period (five to 20 years) which will pay benefits to you (or your beneficiary) Fixed Period Annuities This option offers monthly, quarterly, semiannual, or annual payments for a fixed number of years. It does not guarantee payments for life. Systematic Withdrawals This option lets you specify the amount and frequency of payment. However, it does not guarantee payments for life. Withdrawals (full or partial) You may elect to withdraw part or all of your balances from certain accounts subject to IRS regulations. Direct Rollover You may also choose to have your accounts directly rolled over to an IRA or another custodial account.
SECTION IV: RECEIVING BENEFITS Combination You may also elect a combination of the options described above. Payment Options by Investment Fund Company and/or Contract Life Cycle, Broad Market, Specific Market or BrokerageLink Tiers at Fidelity Fidelity offers systematic withdrawals, full or partial withdrawals, and annuities for balances in the Life Cycle, Broad Market, Specific Market or BrokerageLink Tiers. Balances held in the BrokerageLink Tier must be transferred to the Life Cycle, Broad Market, or Specific Market Tiers prior to being distributed. TIAA Retirement Annuities (RA and GRA) This offers lifetime annuities and fixed period annuities. Lump sum distributions and systematic withdrawals may be available if certain conditions apply. TIAA Supplemental Retirement Annuities (SRA)/Group Supplemental Retirement Annuities (GSRA) This offers lifetime annuities and fixed period annuities. Systematic withdrawals may be available if certain conditions apply. CREF Funds Offer lifetime annuities, fixed period annuities, systematic withdrawals, and full or partial withdrawals and annuities. Contact TIAA directly for more information concerning payment options pertaining to your specific contract.
If You Become Disabled SECTION IV: RECEIVING BENEFITS If you become totally and permanently disabled at any age, you may be able to receive the vested value of your accounts from TIAA RA/GRA, TIAA SRA/GSRA, and Fidelity. Disability is defined according to Internal Revenue Code Section 72 (m)(7). This definition is more restrictive than the definition of disability in the Company s Long-Term Disability Plan, but employees on LTD may still be eligible for a withdrawal. Contact the Noblis Benefits Office for more information. At Your Death If You Die before Starting to Receive Retirement Benefits You will become immediately vested in the Company s contributions if you die while a Company employee. If you are married at the time of your death, your spouse may receive an annuity (monthly payments) beginning any time between your death and the end of the year in which you would have turned age 70½. Annuity payments will continue for the rest of your spouse s life. The value of the annuity will depend on your account balances and your spouse s life expectancy. However, it must be based on at least 50 percent of the accumulation in your accounts. The remaining 50 percent is payable to any beneficiary you choose. Your surviving spouse may choose a form of payment other than an annuity after your death. In addition, you may waive the spousal death benefit and designate someone other than your spouse as your beneficiary on or after January 1 of the year you reach age 35 or after you terminate employment with the Company before age
SECTION IV: RECEIVING BENEFITS 35. To waive this payment option, your spouse must consent in writing to the specific designation of your beneficiary. If you die without a spouse and without having named a beneficiary, your balance may be paid to your estate or in the method determined by applicable estate laws. If You Die after Starting to Receive Retirement Benefits If you die after starting to receive retirement benefits, the amount and form of payment to your beneficiary depends on the option you elected. For example, if you chose a 50 percent joint and survivor annuity, 50 percent of the monthly payment amount you were receiving would continue to your spouse for his or her life. If you chose a single life annuity with a 10-year guarantee, your payments would continue for a minimum of 10 years. If you die before the 10-year period is over, payments would continue to your beneficiary only for the remainder of the 10-year period. If you die after the 10-year period, payments would end with your death. If, however, you chose a fixed period annuity with a 10-year option, payments would stop at the end of 10 years, whether you were living or not. Program Loans Fidelity s loan program allows for a loan maximum of the lesser of $50,000 or 50% of your vested assets (excluding assets designated as N1 balances) that are invested in the Life Cycle, Broad Market and Specific Market Tiers. You may move balances from the BrokerageLink Tier to the Life Cycle, Broad Market or Specific
SECTION IV: RECEIVING BENEFITS Market Tiers to increase the amount available for loan withdrawals. You must be currently employed by the Company to be eligible to take a loan. You may not have more than three loans outstanding at any one time. The interest rate on any loan is the prime rate of interest, plus ¼ percent, and is adjusted quarterly. Your actual loan rate is determined at the time the loan is taken and will remain fixed for the loan term. Loan balance repayments and interest will be made after-tax directly through your bank via direct withdrawal. The repayment schedule is flexible based on a maximum 5-year amortization of the loan basis and interest, or 10-year amortization if the loan is taken out for the purchase of a primary residence. Fidelity will provide all the services required to implement and service loans. Please contact Fidelity at 1-800-343-0860 to learn more. Loans are not permitted through TIAA. You may be able to transfer all or part of your Level II and Level III GSRA balances to Fidelity in order to access your accumulated balances for loan purposes. For more information about this option, contact TIAA directly at 1-800-842-2776. Withdrawals during Employment The two types of withdrawals (without a repayment requirement that applies for loans) available during employment are financial hardship withdrawals and other withdrawals. These are described next.
Hardship Withdrawals SECTION IV: RECEIVING BENEFITS If you meet specific hardship eligibility requirements, you can make withdrawals from your Level II (E2) Contributions and Level III (E3) Contributions while you are still employed. Funds must be in the Life Cycle, Broad Market or Specific Market Tiers prior to making a withdrawal. You may move balances from the BrokerageLink Tier to the Life Cycle, Broad Market and Specific Market Tiers to increase the amount available for hardship withdrawals. Hardship withdrawals are subject to penalties and can be made only after you have exhausted all other distribution options under the Program, including loans. Withdrawal applications are considered for approval by the Plan Administrator. Strict IRS guidelines apply to the approval of a hardship withdrawal. The following are some important considerations when thinking about a hardship withdrawal during employment: When you make withdrawals because of a hardship, you will not be eligible to make any Level II (E2) or Level III (E3) contributions for six months. You will not receive any Level II Company Matching (N2) Contributions for six months when you make hardship withdrawals from your Level II (E2) Contributions. All pre-tax withdrawals are taxable as ordinary income in the year received. Roth (after-tax) contributions may not be withdrawn within 5 years of the initial deposit without a penalty tax.
SECTION IV: RECEIVING BENEFITS You may be subject to a 10 percent penalty tax if you are under age 59-1/2 and do not qualify for any exceptions. Financial Hardship Conditions for Withdrawals Financial hardship is defined as an immediate and heavy financial need due to: Medical expenses (not covered by insurance) previously incurred or expenses necessary to obtain medical care for yourself or a dependent The purchase of a primary residence (down payment only) Funeral expenses for your deceased parent, spouse, child or dependent Repair expenses for your principal residence that would qualify for the casualty deduction under Code section 165 College or graduate school tuition expenses for yourself or any member of your immediate family (limited to the next 12 months) Preventing eviction or foreclosure of your primary residence To request a financial hardship withdrawal, complete and submit to the Benefits Department the appropriate withdrawal form from Fidelity. You must also submit sufficient evidence to support your request and to demonstrate that you have exhausted all other plan distribution options, such as loans. Remember, if your financial hardship distribution request is approved by the Plan Administrator, you will not be eligible to make any contributions to the Level II or Level III of the Program,