SUPPLEMENTARY RETIREMENT BENEFITS (VOLUNTARY)
Can You Voluntarily Add to Your Retirement Benefit?
Yes, until December 31, 2015. Under the Supplementary Portion of the Plan which is outlined below, you may voluntarily contribute toward your retirement on an after-tax basis. Amounts contributed under the Supplementary Portion are held in a separate account from your retirement benefits and invested in accordance with your instructions.
Effective as of January 1, 2016, the Plan will no longer accept these after-tax contributions. The decision to no longer accept these voluntary after-tax contributions for the Supplementary Portion of the Plan will in no way reduce or adversely affect your vested pension benefits under the Plan.
Eligibility to Participate
All active, regular employees of the Company who are participants in the ABC-NABET Retirement Trust Plan in bargaining unit employment are eligible to contribute to the Supplementary Portion of the Plan.
Enrolling in the Plan
Once you are eligible to participate, you may enroll at any time. To enroll in the Supplementary Portion of the Plan, complete the Enroll-by-Phone checklist which may be obtained upon request from Mercer and call the Plan's toll-free number—1-877-864-6644. Contributions will begin at the first pay period of the month after you enroll in the Plan.
You may contribute 3%, 4%, or 5% of your Base Pay on an after-tax basis. You may change the percentage you contribute to the Plan by calling 1-877-864-6644 or logging on to www.ibenefitcenter.com. Changes received by Mercer will be collected on the 15th of each month (or the first business day thereafter if the 15th is a weekend or holiday). The change will become effective with the first pay period of the following month. Thus, if you make a contribution election on May 14, it will become effective in the first pay period of June. If you make a contribution election on May 30, it will become effective in the first pay period of July. If you make multiple changes to your contribution rate during a one-month period, the last effective change received will be used.
You may invest your contributions in 1% increments in any or all of the available investment options made available under the Supplementary Portion of the Plan. For information about your investment choices or to make changes to your investment choices, call 1-877-864-6644 or log on to www.ibenefitcenter.com. Your account investments are valued on each business day that the New York Stock Exchange is open.
It is intended that the Supplementary Portion of the Plan constitutes a plan described in Section 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) and that the fiduciaries of the Plan be relieved of liability for any losses which are the direct and necessary result of your investment instruction.
Investment Election Transfers
You may make transfers on a daily basis among the funds in which
your account is invested by calling 1-877-864-6644 or logging on to www.ibenefitcenter.com. Changes must be made in increments of 1% of the amount held in the investment fund from which the transfer is being made. Transfer requests received by 4:00 p.m. Eastern Time on a business day will be processed that day. Transfer requests received after 4:00 p.m. Eastern Time will be processed the next business day.
You may withdraw all or part of your after-tax contribution account at any time, subject to a minimum withdrawal requirement of $100 and any applicable processing fee. If you are married, spousal consent is necessary for an in-service withdrawal. Withdrawals will be taken pro-rata from the investment funds in which your account is invested.
Distribution of Account
You may elect to have the value of your account distributed to you upon retirement or termination of employment.
If you are married, the normal form of benefit is a joint and survivor annuity with your spouse as the survivor annuitant. If you are single, the normal form of benefit is a single life annuity. Alternatively, you may elect, with spousal consent, if you are married, to have your account distributed in the following optional forms: (1) single lump sum, (2) single life annuity, (3) a 100%, 66⅔%, 75%, or 50% joint and survivor annuity, (4) an annuity with 120 monthly payments guaranteed, or (5) a level payment option taking Social Security into account. Annuities payable under the Supplementary Portion of the Plan are paid through the purchase of an annuity contract with your distributable Supplementary Portion account balance. If, however, the total value of your benefit from the Plan, including your account balance is $5,000 or less, your account will be distributed in one lump sum when you terminate employment.
If you elect or are to automatically receive a lump sum payment, you may choose to have all or part of that amount paid directly to an IRA or other eligible retirement plan that accepts such payment, rather than distributed directly to you, subject to any applicable administrative limits (see page 29 for more information).
Note that the enhanced survivor benefit described on page 19 that now applies in certain circumstances to retirement payments does not apply to the Supplementary Portion of the Plan.
Payment of your benefits under the Supplementary Portion of the Plan must begin no later than the later of the close of the Plan Year in which you attain age 65 or you terminate Company employment, unless you elect to defer payments. However, you are required by law to commence receiving payments from your account by the April 1st following the later of your retirement or attainment of age 70½.
If you are married and die prior to commencement of benefit payments from your supplementary account, your account will be paid to your spouse in the form of a "pre-retirement survivor annuity" providing payments for the life of your spouse (through the purchase of an annuity contract with your distributable account balance). Alternatively, your spouse can elect to receive payment in a lump sum. If you are not married or your spouse has consented to your waiver of the pre-retirement survivor annuity, your account will be paid to your named beneficiary upon your death. You can waive the pre-retirement survivor annuity, provided you have spousal consent, beginning on the first day of the Plan Year in which you attain age 35. If you elect (with spousal consent) to waive the pre-retirement survivor annuity prior to age 35, your election will become ineffective following the end of the Plan Year in which you attained age 34 unless you then renew your election with spousal consent. Spousal consent only applied to the individual who signed the consent. If you remarry, you must obtain your new spouse's consent for it to be effective. Please note, however, that a spouse's rights may be affected by a prior Qualified Domestic Relations Order (see pages 20 and 21).
For purposes of the Supplementary Portion of the Plan, your spouse is the person to whom you are legally married on the applicable date (i.e., the date of your withdrawal, commencement of distributions, or death). Thus, the requirement that you be married to your spouse for one year, which generally applies to your other retirement benefits under the Plan, does not apply to the Supplementary Portion of the Plan. Your spouse also includes a same-sex spouse who is treated as legally married to you in the state or other jurisdiction where the marriage occurred.
Designating a Beneficiary
To designate your beneficiary for the Supplementary Portion of the Plan, complete the Beneficiary Form which may be obtained upon request from Mercer and return it to the ABC-NABET Retirement Trust Plan Office at 400 Franklin Ave., Suite 135, Phoenixville, PA 19460. If you are married, your spouse is required to be your beneficiary unless he or she consents to an alternate designation and waives rights to a "pre-retirement survivor annuity." If you are not married and do not designate a beneficiary or your beneficiary predeceases you, and you fail to designate a new beneficiary, your estate will be treated as your beneficiary for the Supplementary Portion of the Plan.