KAISER PERMANENTE EMPLOYMENT TRANSITION AND SEVERANCE BENEFITS PLAN FOR PROGRAM OFFICES AND IT NON- UNION HOURLY AND SALARIED EMPLOYEES Summary Plan Description As Amended and Restated Effective as of January 1, 2011
Introduction Kaiser Foundation Health Plan, Inc. (KFHP, which includes Kaiser Foundation Hospitals) has established the Kaiser Permanente Employment Transition and Severance Benefits Plan for Program Offices and IT Non-Union Hourly and Salaried Employees, as amended and restated effective January 1, 2011 (the Plan). The Plan, as amended and restated, has been developed to offer benefits to eligible employees whose employment is terminated as a result of job elimination, corporate reorganization or restructuring, externalization, contractual assignments, or other similar circumstances that occur on or after January 1, 2011. The Plan supersedes and replaces any and all existing or prior employment security or severance plans or policies, or similar programs, policies or practices maintained by KFHP or Kaiser Foundation Hospitals for the eligible employees covered by this Plan. The information in this summary plan description (SPD) is a summary of important provisions associated with the Plan when this SPD went to press. In case of any omission or conflict between what is written in this document and the plan documents, the plan documents will govern. Benefits may be modified or eliminated at the employer s discretion. You will be advised of any significant changes in the Plan. For the purposes of this SPD, the term employer shall mean the specific entity (KFHP or Kaiser Foundation Hospitals, as applicable) with which the eligible employee is employed as of the date the employee is notified in writing that his or her position has been eliminated. The term Kaiser Permanente shall have the same meaning as medical care organization in the Kaiser Permanente Retirement Plan. Eligibility In order to qualify for Transition Benefits under the Plan (described below), you must meet Plan requirements 1-2 set forth below. In order to qualify for Severance Benefits (described below), you must meet all of the Plan requirements, including requirements 1-6 set forth below: 1. Job Elimination Requirement You must be regularly scheduled to work at least 20 hours per week at the employer s Program Offices or IT and you must be notified by the employer in writing that your position has been designated for elimination, that you are eligible for the Plan, and that your employment will be terminated by a scheduled date. You are not eligible for Plan benefits if you are employed by an office, division or work unit that the employer determines is not covered by the Plan. 2. Status Requirement In order to be eligible for the Plan, you must not be part of a bargaining unit represented by a union and you must remain employed by the employer until the scheduled termination date, unless you and your manager mutually agree in writing to an earlier termination date. If you resign, retire, are fired, or die before the scheduled or agreed-upon termination date, you will not receive Plan benefits. 3. Service Requirement You must have at least six (6) months of employment with the employer (including any service with a Kaiser Permanente entity, so long as there was no break
in service between your service at a Kaiser Permanente entity and the employer) as of your termination date. 4. Separation Agreement and General Release You must sign and submit a Severance Agreement and General Release within the time period described below and you must not revoke it within the revocation period provided in the Severance Agreement and General Release. 5. No Other Severance Pay or Benefits Under the Severance Agreement and General Release you agree that you are not eligible for severance pay or benefits under any other severance plan, policy or practice. You are not eligible for the Plan if you are covered by an agreement signed by you and an authorized representative of the employer or a Kaiser Permanente entity providing for severance pay or providing for a specified term of employment. 6. Employment Termination You must terminate employment by the termination date set forth in the employer s written job elimination notice. With mutual consent in writing between you and your manager or supervisor, you may agree to a termination date prior to the scheduled termination date. Only the Vice President of Human Resources or a Human Resources Director of your employer may approve extensions, if any, of the scheduled termination date. Extension will only be approved based on the employer s need for your continued service. If you remain employed by the employer or any Kaiser Permanente entity beyond the scheduled termination date (or beyond an approved extension of the termination date), you will not be eligible for Plan pay or benefits. In addition, if you are offered a Comparable Position (which is described below and determined in the sole discretion of the employer) you will either receive no benefits or reduced benefits, depending on the circumstances, as described below. You will have at least 45 days to review and evaluate the Plan materials, including the Severance Agreement and General Release, to consult an attorney or other advisors, and to decide if you wish to fully participate in the Plan. If you would like to be eligible for severance benefits under the Plan, you must sign and submit the Severance Agreement and General Release no earlier than your termination date (as described in #6 above) and no later than 10 days after your termination date (as described in #6 above). The Severance Agreement and General Release must be delivered to your manager or Human Resources. You are responsible for ensuring that the Severance Agreement and General Release is delivered within the required time period; you should maintain proof of the timely delivery. If you do not sign and submit the Severance Agreement and General Release within the required time period, you will not receive any Plan severance benefits. In addition, the employer has the right to revoke the offer of severance benefits at any time prior to the time that the Severance Agreement and General Release becomes effective and binding. Important Note: The Severance Agreement and General Release releases the employer and all Kaiser Permanente entities from all claims related to your employment, including any claims under the Age Discrimination in Employment Act, up to the time you sign it. Read the Severance Agreement and General Release carefully before you sign it. 3
Right of Revocation You will have seven days in which to change your mind and revoke the Severance Agreement and General Release once you sign it. You must notify Human Resources in writing that you are revoking the agreement. If you do not revoke the agreement within seven days of the day you sign it, it becomes effective and binding on you and the employer. Benefits The Plan provides various types of transition benefits and severance benefits. Each of these benefits is described below. Your eligibility for a particular Plan benefit will be set forth in your job elimination notice. Transition Benefits You do not have to sign a Severance Agreement and General Release in order to receive Transition Benefits Transition Status. Your job elimination notice will provide a transition period, which is a period of time between when you are provided with your job elimination notice and before your termination date. This transition period will last a minimum of 60 calendar days it will be longer than 60 days only if the employer has a need for your continued service. During the transition period, the employer may relieve you of your regular active job assignment. Rather, you assignment may be to transition out of your current job, unless otherwise determined by the employer. Your transition status will end if you obtain a new regular status position with the employer or any Kaiser Permanente entity. Transition Placement Benefits. If you are provided with a job elimination notice that states that you are eligible for the Plan, you will be provided with access to Transition Placement benefits. You are provided with these benefits once you are notified of Plan eligibility--even if you do not become eligible for severance benefits under the Plan. During your transition period, and through your date of termination, you will have access to internal postings on the employer's career website. In addition, the employer contracts with an outside vendor to provide outplacement services. These outplacement services provided by the outside vendor will only be available to you for a total of ninety (90) days. You must begin utilizing the vendor s outplacement services within 90 days after your termination date. This 90-day period of outplacement services commences when you initiate service from the outplacement services vendor. Any outplacement services for which you become eligible will be provided in kind by the vendor, and may not be converted into cash. For outplacement services please refer to the information provided in your package. Termination of Transition Placement Benefits. Your eligibility for transition placement benefits will immediately cease upon: (1) your termination for cause, (2) your resignation or retirement 4
before your scheduled agreed-upon termination date, or (3) your receipt of an offer for a comparable position whether or not you accept it. The term cause includes, but is not limited to, poor performance, any act of theft or dishonesty; commission of an illegal act; willful violation of the employer s policies or rules of conduct; insubordination; failure to execute (or re-execute) any documents deemed necessary by the employer for employees to execute; abuse of job environment, clients or fellow employees; or other misconduct. A comparable position is a position that includes the following characteristics: (a) the salary for the position is comparable to your current base pay and in no event more than a seven percent (7%) reduction; and (b) your new work location is within a reasonable commuting distance not greater than fifty (50) miles (one way) from your current work location. A comparable position may be within the employer, within any Kaiser Permanente entity, or with another organization as specified by the employer in the job elimination notice. Additional Consequences of Termination of Transition Placement Benefits. If your transition placement benefits terminate because the employer has terminated your employment for cause, because you have resigned or retired before your scheduled or agreed-upon termination date, or because you have received an offer for a comparable position, you will not be eligible for any severance benefits under this Plan. The only exception to this rule is that the employer may, in its sole discretion, offer a lesser level of severance pay after you have declined an offer for a comparable position. Severance Benefits The Plan provides for two different types of severance benefits: (1) severance pay, and (2) health and dental benefits extension. 5
Severance Pay As a Plan participant, you can receive up to a maximum of 39 weeks of current pay based on the Severance Pay Table as follows: Current Base Pay 6 mos 1 yr Completed Years of Service and Weeks of Weekly Severance Pay 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ $<50K 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 26 $50-59K 4 5 6 8 9 10 11 13 14 15 16 18 19 20 21 22 24 25 26 27 29 $60-69K 4 5 7 8 9 11 12 14 15 16 18 19 20 22 23 24 26 27 28 30 31 $70-79K 4 5 7 8 10 11 13 14 16 17 19 20 22 23 25 26 28 29 31 32 34 $80-89K 4 6 7 9 10 12 14 15 17 19 20 22 23 25 27 28 30 32 33 35 36 $>90K 4 6 8 9 11 13 15 16 18 20 22 23 25 27 29 30 32 34 36 37 39 Years of Service. Your Years of Service is based on your unbroken period of contiguous employment service in a regular classification with the employer or a Kaiser Permanente entity, beginning from your most recent date of hire and ending on your termination date (as specified in your job elimination notice). Years of Service will be determined in one year increments, without any credit for partial years of service. No credit will be given for any period of prior noncontiguous, noncontinuous employment service regardless of any adjusted hire dates from such service calculated for any other purposes. Accrued but unused paid time off will not be taken into account for purposes of determining your Years of Service nor will it be used to extend your severance period. Lastly, any service for which severance benefits have already been paid to you will not be counted as years of service under this Plan. Current Base Pay. Severance pay will be based on your base wage rate, or base weekly salary, at the time of termination and will not include premium payments (e.g., shift-differential, bonuses, overtime, commissions, shift premiums, relocation cost differentials, or any other incentive compensation). If you are a full-time employee, your severance pay will be based on a 40-hour week. Part-time employees severance pay will be prorated based on scheduled hours for the position, as reflected in My HR, as of the date you are notified of eligibility for this Plan. Reduced Severance Pay. In circumstances where you decline an offer of a comparable position (defined above), the employer, in its sole discretion, may decide to offer you a lesser amount of severance pay (assuming that you have met all other eligibility requirements in the Plan). The employer will consider the nature of the comparable position offered to you, and may provide the following reduced severance pay offer: (1) if you are offered but decline a comparable position with an entity outside of the employer or a Kaiser Permanente entity, the employer may offer severance pay equal to twenty-five percent (25%) of the amount of your severance pay otherwise would have been had no comparable position job offer been involved, or a minimum of four (4) weeks, 6
whichever is greater, or (ii) if you are offered but decline a comparable position with the employer or a Kaiser Permanente entity, the employer may offer severance pay of four (4) weeks. If you are offered a reduced severance pay benefit, you will receive the reduced payment only if you meet all other eligibility requirements in the Plan, including signing a Severance Agreement and General Release, and allowing it to become irrevocable. Even if you are provided with this reduced severance pay benefit, you will not receive the health and dental benefits extension that is described below. Repayment if Early Re-employment. If you are re-employed by the employer or any Kaiser Permanente entity in any capacity within a period equal to your number of weeks of severance pay (the severance period ), you will be required to repay a portion of the severance pay (see Rehire Restriction on page 10). Payment of Severance Pay. For your severance pay, you will receive a cash payment within 21 days of termination, unless your severance pay is paid in 2 installment payments, rather than just one lump sum payment (as described below). In such event, the first cash payment will be made within 21 days of termination. If the number of weeks of severance pay exceeds the number of weeks remaining in the payroll calendar year of your termination (measuring from your date of termination), the severance pay cash payment will be split into two payments. The first payment will be equal to the number of weeks remaining in the payroll calendar year of your termination (measuring from your date of termination). The second payment for any remaining severance pay will be made no later than January 21 of the year following the year of your termination. Your severance pay cash payments are subject to all applicable federal and state taxes, including the special supplemental wage tax withholding rate. Please note: Severance pay under the Plan will not be included as part of your compensation for determining employee or employer contributions to any other benefits plans, programs, or policies. These payments will not be included for pension calculation purposes or in the determination of employer or employee contributions for the Kaiser Permanente Supplemental Savings and Retirement Plan-Plan B, Kaiser Permanente Tax Savings Retirement Plan, Kaiser Permanente Tax Sheltered Annuity Plan and/or Kaiser Permanente 401k Plan. Health and Dental Benefits Extension If you were covered under the employer s health plan as of your termination date, your coverage will terminate at the end of the month that includes your termination date. In addition, as a participant in the Plan, you will receive an extension of health benefits under the health plan sponsored by the employer that you were covered under as of your termination date. If you were covered under the employer s dental plan as of your termination date, your coverage will terminate at the end of the month that includes your termination date. In addition, as a participant in the Plan, you will also receive an extension under the dental program sponsored by the employer that you were covered under as of your termination date. The period of extension is described in the chart below. 7
Years of Service Months of Continued Health and/or Dental Benefits Up to 3 Years 3 3 Years Up to 10 Years 6 10 Years or More 12 Coverage under the health plan and dental plan (as applicable) will be subject to any changes in coverage, co-payments and other changes that apply to active employees during the extension period. The extension period begins on the first of the month following your last day of employment. Once the extension of your health and dental benefits (as applicable) under the Plan expires, you may be eligible to continue coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). Please refer to your health plan Summary Plan Description for more information about COBRA. For any employer paid extension of coverage under the Plan, you will not be offered the right to any open enrollment periods. The only changes in coverage that you can make are those that are made in accordance with your rights under the HIPAA special enrollment rights set forth in the applicable plan health or dental plan sponsored by the employer, so long as you comply with all applicable requirements set forth in those plan documents. Notwithstanding the foregoing, if during that extension period you become eligible for employersponsored retiree health coverage, coverage offered through the Plan will terminate. You must enroll in retiree health coverage (in accordance with the terms of that employer plan) and you will receive health coverage through the employer-sponsored retiree plan. If you become eligible for retiree health coverage, you must enroll in Medicare, assign your Medicare benefits to Kaiser Permanente, and enroll in Kaiser Permanente Senior Advantage to continue coverage. In addition, if you are not eligible for employer-sponsored retiree coverage but you become eligible for Medicare during the extension period, you must enroll in Medicare and assign your Medicare benefits to Kaiser Permanente in order to maintain your coverage through the Plan for the period specified under the Plan. These benefits cover you, your spouse or domestic partner, and eligible dependent children (as defined under your current employer-sponsored health and/or dental plan program, as applicable) who were covered under the health and/or dental plan program as of your date of termination (subject to the HIPAA special enrollment rights, described above). If you are not participating in the employer-sponsored health plan program on your date of termination, you will not be eligible for the extension of health benefits or offered the right to elect COBRA for a health plan. If you are not participating in the employer-sponsored dental plan program on your date of termination, you will not be eligible for the extension of dental benefits or offered the right to elect COBRA for a dental plan. Kaiser Permanente reserves the right to change any of the health or dental plans referred to in this SPD. 8
Bridging Retirement The employer retains the right to adjust your termination date if you would become eligible for retirement during the period following your scheduled termination equal to the number of weeks of your severance pay under the Plan formula ( the Severance Period ). In this situation, the employer will offer you a Plan bridging option under which your termination date would be delayed until your retirement eligibility date if you elect to proceed in this manner. You must submit written notice of your intent to elect bridging to retirement within 60 days of your notice of job elimination and you must sign a Severance Agreement and General Release agreeing to this bridging. During any such bridging period, your current base pay (excluding any premium pay), and benefit plan coverage based on the eliminated job will remain in place until the delayed termination date. However, you will be required to actively work for the employer during this bridging period. No merit pay or pay increases will be awarded during any such bridging period. Upon meeting eligibility for the applicable retirement benefits, your employment will be terminated. Upon the termination date following the bridging period, severance benefits will generally be available under the Plan (subject to any applicable exclusions), but your severance pay and your health and dental benefits extension will be reduced by the number of weeks by which the termination date was delayed due to Plan bridging. Your Severance Agreement and General Release will contain the payment date of your severance pay (if any), which in no case will be after March 15 of the year following the year of termination. Survivor Benefits If you are a participant in the Plan and die before your scheduled termination date, no Plan severance pay or extension of health or dental benefits will be made. However, if you die after you have become a participant in the Plan and after your termination date, any severance pay due will be paid to your designated beneficiary(ies). In order to designate a beneficiary, you must complete the form provided to you by Kaiser Permanente and it must be delivered to Kaiser Permanente prior to your death. If you have not designated a beneficiary, any severance due will be paid to your surviving spouse or registered domestic partner, or, if there is no surviving spouse or registered domestic partner, to your estate. This payment will be made within 90 days of your death. Your spouse or domestic partner and any eligible dependent children who were covered under the health and/or dental plan (as applicable) as of your date of death will be covered by the Plan health and dental plan extension benefit for the remainder of the period between your death and the date your extension period would have ended if you had lived. To designate a beneficiary, please complete and return as instructed on the Plan Beneficiary Designation Form attached to this SPD. Conditions and Legal Issues No Vested Rights 9
You (and any of your beneficiaries) have no vested rights under the Plan and nothing in this SPD shall be construed as giving you any nonforfeitable or vested rights to any severance benefits. Nothing in the Plan limits in any manner the right of the employer or any Kaiser Permanente entity to discharge, downgrade, transfer, relocate or in any other manner change the terms and conditions of your employment, without regard to the effect that employer action may have on whether you could have become (or remained) a participant in the Plan. No benefits shall be deemed to accrue under the Plan at any time except the time at which they become payable under the Plan. Bona Fide Separation If you terminate your employment and receive benefits under this Plan, you and Kaiser Permanente acknowledge that you have separated from service. Rehire Restriction If you terminate employment under the Severance Agreement and General Release and are reemployed by the employer or any Kaiser Permanente entity in any capacity during your severance period, you will be required to repay a portion of your severance pay. The repayment amount is equal to the amount of the weeks of severance remaining as of your re-employment date less four weeks. For example, if you received 39 weeks of severance pay and you are re-hired with a start date that is 33 weeks after your termination date, you are required to repay 2 weeks of severance pay (i.e., the remaining 6 weeks of severance less 4 weeks). If you were rehired with a start date that is 35 weeks or later after your termination date, no repayment would be required. No Deferred Compensation Plan benefits are intended to be exempt from Internal Revenue Code Section 409A as nontaxable benefits (for the outplacement services and extension of health coverage), or as payments made under a short-term deferral plan or an involuntary separation from service plan or window program, and shall be operated and construed in such manner. In no event will severance pay under the Plan be made after March 15 of the year following the year of termination. In addition, termination notices will not be provided to employees between December 15 and December 31 of any calendar year. Employer Reservation of Rights The employer and all Kaiser Permanente entities reserve the right to amend and/or terminate the Plan at any time for any purpose until the Plan agreements are executed by the eligible employees and accepted by the employer. Nothing in the plan precludes the employer or any Kaiser Permanente entity from amending any health or dental insurance plan. The Plan benefits are paid from the employer s general assets. This is an employee welfare benefit plan, and it is covered by ERISA. 10
Claims and Appeals Procedure Filing a Claim If you believe that you have been denied a benefit under this Plan, you may submit a claim for benefits under this Plan ( Claim ) to the Plan Administrator in writing at: Severance Plan Administrator Human Resources Service Center 1451 Harbor Bay Parkway Alameda, CA 94502 If you have a claim for health benefits under a health insurance plan, you must file that claim in accordance with that plan s claims and appeal procedures. This Plan does not determine those claims. When a Claim has been filed properly, it will be evaluated and you will be notified of the approval or denial of the Claim within 90 days after the receipt of the Claim, unless special circumstances require an extension of time for processing the Claim. If such an extension of time for processing is required, you will receive written notice of the extension prior to the termination of the initial 90-day period. The notice will specify the special circumstances requiring an extension and the date by which a final decision will be reached (a date not later than 180 days after the date on which the Claim was filed). You will be given a written notice advising whether or not the Claim is denied, in whole or in part. If a Claim is denied, in whole or in part, the notice shall contain: (a) the specific reasons for the denial, (b) reference to the specific Plan provisions on which the determination is based, (c) a description of any additional material or information necessary to perfect the Claim and an explanation of why such material or information is necessary, (d) an explanation of your right to seek review of the denial, and (e) a statement of your right to bring a civil action under Section 502(a) of ERISA following a denial on review. Review of Claim Denial If a Claim is denied, in whole or in part, you shall have 60 days following the receipt of the denial to appeal the denial. Such appeal must be submitted in writing to the Severance Plan Administrative Committee at: Severance Plan Administrative Committee 1 Kaiser Plaza, 20th Floor Oakland, CA 94612 In addition, upon receipt of the denial, you will have: (a) the right to request that the Committee review the denial, (b) the opportunity to submit written comments, documents, records, and other information relating to the Claim, and (c) the opportunity upon request and free of charge, to have reasonable access to, and copies of, all documents, records, and other information relevant to your Claim (that is not privileged or protected). The review shall take into account all comments, 11
documents, records, and other information submitted by you relating to the Claim, without regard to whether such information was submitted or considered in the initial denial. If you request a review of the denial, the review shall be made within 60 days after your request for review is received by the Committee. If the Claim on review is denied, you will be advised in writing of the decision on review within 60 days after your request for review is received by the Committee, unless special circumstances require an extension of time for processing the review, in which case you will be given a written notification within the initial 60-day period specifying the reasons for the extension and when such review shall be completed. If the Claim is denied on review, the decision on review by the Committee will be forwarded to you in writing and will: (a) state the specific reason(s) for the denial, (b) reference the specific Plan provisions on which the benefit determination is based, (c) contain a statement that you are entitled to receive, upon request and free of charge, to have reasonable access to, and copies of, all documents, records, and other information relevant to your Claim for benefits (that is not privileged or protected), and (d) contain a statement of your right to bring an action under Section 502(a) of ERISA. A decision on review will be final and binding on all persons for all purposes. The Committee has discretionary power to make determinations regarding all claims on appeal. All decisions or actions of the Committee arising in connection with the Plan shall be final and binding upon all employees and their beneficiaries. No legal or equitable action for benefits under the Plan shall be brought unless and until you have submitted a timely written Claim for benefits, have been notified that the Claim is denied, have filed a timely written request for a review of the Claim, and have been notified in writing that the Committee has affirmed the denial of the Claim; provided, however, that an action for benefits may be brought after the Plan Administrator or the Committee has failed to act on the Claim within the time prescribed in the above claims section. Any litigation or legal action initiated by you must be brought no later than one year following a final decision on the Claim. Notwithstanding the foregoing, in no event may you initiate litigation or legal action more than two years after the facts giving rise to the action occurred. The foregoing limitations on litigation or legal action for benefits will apply in any forum where you initiate such litigation or legal action. How the Plan Affects Certain Retirement Benefits Your participation in an employer-sponsored defined benefit plan ends on your termination date. However, if you are vested in the plan, you will be eligible to receive a benefit at age 65, or earlier if you are eligible for early retirement under the plan when you terminate. Please contact the Kaiser Permanente Retirement Center at 1-866-627-2826 or online at myretirement.kp.org click My Pension Plan. If you participate in an employer-sponsored defined contribution plan, your contributions to the plan will stop on your termination date. Please note that there will be no contributions to this plan deducted from your severance payment(s). You may take a distribution from this plan upon termination, roll it over to an IRA or to another employer s qualified tax-deferred plan, or you may leave it in the plan until the year in which you reach age 70½. If you take a distribution, you may be subject to severe tax penalties. Please consult with a tax advisor to determine the best choice for you. 12
Administration of the Plans The Employee Retirement Income Security Act of 1974, as amended ( ERISA ) mandates that the following information be given to employees as part of any Summary Plan Description. Plan Name: Kaiser Permanente Employment Transition And Severance Benefits Plan for Program Offices and IT Non-Union Hourly And Salaried Employees Plan Number: 528 Plan Year: The Plan is administered on a calendar year. Plan Sponsor: Kaiser Foundation Health Plan, Inc. Plan Administrator: Kaiser Foundation Health Plan, Inc. 1 Kaiser Plaza Oakland, CA 94612 (510) 271-5940 EIN: The employer identification number ( EIN ) assigned by the Internal Revenue Service to the Plan Sponsor is 94-1340523. Service of Process: Process may be served on the Plan by directing such legal process to: Kaiser Foundation Health Plan, Inc. 1 Kaiser Plaza Oakland, CA 94612 (510) 271-5940 Attention: Office of the General Counsel ERISA Plan and Funding: The Plan is an ERISA welfare benefit plan. Plan benefits are paid out of the employer s general assets. Statement of ERISA Rights As a participant in the 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: Examine, without charge, at the plan administrator s office, all documents governing the plan, and a copy of the latest annual report (Form 5500 Series) filed by the Plan (if applicable) with the U.S. Department of Labor and available at the Public Disclosure Room at the Employee Benefits Security Administration. Obtain, upon written request to the plan administrator, copies of all the documents governing the operation of the Plan, and copies of the latest annual report (Form 5500 Series, if applicable) and updated summary plan description. The administrator may make a reasonable charge for the copies. 13
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 the plan, called fiduciaries of the plan, have a duty to do so prudently and in the interest of you and other participants and beneficiaries. No one, including your employer, your union, or any other person, may terminate your employment or otherwise discriminate against you in any way for the purpose of preventing you from obtaining a pension or welfare benefit or exercising your rights under ERISA. If your claim for a benefit is denied or ignored, in whole or in part, you have the right to know why this was done, obtain copies of documents relating to the decision without charge and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you 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 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. If you have any questions about the Plan, you should contact the HRSC. If you have any questions about this statement or about your rights under ERISA, or 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 D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at 1-866-444-EBSA. 14