Defined Contribution
Retirement Plan
This document provides each Participant
with a description of the Institution's
Defined Contribution Retirement Plan
____________________
Table of Contents
Part I: Information About The Plan. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 3
Part II: Information About The Fund Sponsors. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 10
Part III: Additional Information . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 13
This summary was prepared for participants in the Houghton College Retirement
Plan. If there is any ambiguity or inconsistency between this summary and
the Plan Document, the terms of the Plan Document will govern. With respect to
benefits provided by TIAA-CREF annuity contracts or certificates, all rights of
a participant under the contracts or certificates will be determined only by
the terms of such contracts or certificates.
Employer Identification Number: 16-0743045
Plan Number:001
____________________
Part I: Information About
The Plan
1. What is the
The Houghton College (the
"Institution") Retirement Plan (the "Plan") is a defined
contribution plan that operates under Section 403(b) of the Internal Revenue
Code (IRC). The Plan was established on July 1, 1939. The purpose of the Plan
is to provide retirement benefits for participating employees. Benefits are
provided through:
A. Teachers Insurance and
Annuity Association (TIAA). TIAA provides a traditional annuity and a
variable annuity through its real estate account. You can receive more
information about TIAA by writing to: TIAA,
B. College Retirement Equities
Fund (CREF). CREF is TIAA's companion
organization, providing variable annuities. You can receive more information
about CREF by writing to: CREF,
The Institution is the
administrator of the Plan and has designated the Human Resource Director to be
responsible for plan operation. The plan year begins on January 1 and ends on
December 31.
2. Who is eligible to participate in
the Plan?
All eligible employees of the
Institution can participate in the Plan. Eligible employee means all employees.
3. When do I become eligible to
participate in the Plan?
If you are an eligible employee,
you may, on a voluntary basis begin participation in this Plan on the first of
the month after you fulfill the following requirements:
o
You complete 1 year(s)
of service at the Institution. (See the question: "How are years of
service counted?" for information on how years of service are measured.)
Years of service at another accredited institution of higher education also
counts towards this one year period.
o
You attain age
21.
If you are a former employee who
is reemployed by the Institution and you satisfied the service requirement
before you terminated employment, you will begin participation in the Plan
immediately after reemployment provided you are an eligible employee.
The enrollment forms must be
completed and returned to the Institution. The Institution will notify you when
you've completed the requirements needed to participate in the Plan. All
determinations about eligibility and participation will be made by the
Institution. The Institution will base its determinations on its records and
the official plan document on file with the plan administrator.
You will continue to be eligible
for the plan until one of the following conditions occur:
o
you stop
contributing to the Plan;
o
you cease to be
an eligible employee;
o
the plan is terminated.
In addition, if you begin
benefits before termination of employment, you will cease to be eligible for
the plan.
4. What contributions will be made?
When you begin participation in
the Plan, contributions will be made automatically to the funding vehicles that
you've chosen. The contributions are based on a percentage of your
compensation, according to the schedule shown below. If you participate in the
Plan for only a part of a year, your allocation will be based on the portion of
compensation earned during the period in which you participate. Plan
Contributions by you are voluntary and are made on a before-tax (salary
reduction) basis.
Institution plan contributions
will be made only if you have made your required contribution.
Plan contributions made by you on
a before-tax basis will be made under a written salary reduction agreement with
the Institution. Under the agreement, your salary paid after the agreement is
signed is reduced and the amount of the reduction is applied as premiums to one
or more of the funding vehicles you select that are available under this Plan.
You may terminate your salary reduction agreement at any time. Your ability to
modify your agreement may be subject to such reasonable restrictions as
established by the Plan Administrator. The salary reduction agreement will be
legally binding and irrevocable with respect to salary paid while the agreement
is in effect.
Institution plan contributions
will only be made if you are credited with a year of service. (See the
question, "How are years of service counted?") For determining
whether you have a year of service for this purpose, the 12-month computation period
starts with your date of employment or anniversary of your employment date.
Plan
Contributions as a Percentage of Compensation
By the Institution By You
8% 3%
Compensation means your base or
contracted salary. For faculty members this means pension will be paid on the
amount contained in the formal contract, and not on any addendum or attached
letter of agreement. For administrators, pension contributions will be made on
the amount contained in your letter of agreement. For staff members, pension
contributions will be made on the first 40 hours you work each week, and not on
any overtime.
5. Is there a limit on contributions?
Yes. The total amount of
contributions made on your behalf for any year will not exceed the limits
imposed by section 415 and section 403(b) of the IRC.
These limits may be adjusted from time to time. The amount of Plan
contributions will also be subject to the Section 401(m) limit. For more
information on these limits, contact your plan administrator or fund sponsor.
In addition, salary reduction
contributions to this Plan will be further limited by IRC Section 402(g) limit.
If you have made salary reduction contributions that exceed the 402(g) limit,
you should request a distribution of the excess by notifying the Plan
administrator by March 1 of the following year. The excess will be distributed
to you by April 15.
6. Do contributions continue during a
paid leave of absence?
During a paid leave of absence,
Plan contributions will continue to be made based on your compensation paid during
your leave of absence. No contributions will be made during an unpaid leave of
absence.
7. Do contributions continue if I
become disabled?
If you become totally disabled,
Plan contributions will continue to be made based on your compensation immediately
before you became disabled, subject to the limits imposed by the IRC.
8. Do contributions continue while I'm
on active duty in the Armed Forces?
If you are absent from employment
by reason of service in the uniformed services of the United States, once you
return to actual employment, the Institution will make those contributions to
the Plan that would have been made if you had remained employed at the
Institution during your period of military service to the extent required by
law.
9. When do my plan contributions become
vested (i.e., owned by me)?
You are fully and immediately
vested in the benefits arising from contributions made under this Plan. Such
amounts are nonforfeitable.
10. How are years of service counted?
You are credited with a year of
service for each 12-month period (computation period) during which you complete
1,000 or more hours of service. Faculty members are credited with a year of
service for each year that they carry at least a one-half load, as determined
by institutional policies.
Hours of service will be
determined on the basis of actual hours that you are paid or entitled to
payment
For purposes of determining your
eligibility to participate, the computation period starts with your date of
employment or anniversary of your employment date.
11. What is the normal retirement age
under the Plan?
The normal retirement age under
the Plan is age 65. Annuity income usually begins on the first of the month
following that date.
12. When does my retirement income begin?
Although income usually begins at
normal retirement age, you may begin to receive annuity income at any time,
which may be either earlier or later than the normal retirement age.
Retirement benefits must normally
begin no later than April 1 of the calendar year following the year in which
you attain age 70 1/2, or, if later, April 1 following the calendar year in
which you retire. Failure to begin annuity income by the required beginning
date may subject you to a substantial federal tax penalty.
If you die before the
distribution of benefits has begun, your entire interest must normally be
distributed by December 31 of the fifth calendar year after your death. Under a
special rule, death benefits may be payable over the life or life expectancy of
a designated beneficiary if the distribution of benefits begins not later than
December 31 of the calendar year immediately following the calendar year of
your death. If the designated beneficiary is your spouse, the commencement of
benefits may be deferred until December 31 of the calendar year that you would
have attained age 70 1/2 had you continued to live.
The payment of benefits according
to the above rules is extremely important. Federal tax law imposes a 50 percent
excise tax on the difference between the amount of benefits required by law to
be distributed and the amount actually distributed if it is less than the
required minimum amount.
Your fund sponsor will normally
contact you several months before the date you scheduled your benefits to begin
on your application. You may decide, however, to begin receiving income sooner,
in which case you should notify the fund sponsor in advance of that date.
Usually, the later you begin to receive payments, the larger each payment will
be.
13. What options are available for
receiving retirement income?
You may choose from among several
income options when you retire. However, if you're married, your right to
choose an income option will be subject to your spouse's right (under federal
pension law) to survivor benefits as discussed in the next question, unless
this right is waived by you and your spouse. The following income options are
available:
A Single
Life Annuity. This option pays you an income for as long as you
live, with payments stopping at your death. A single life annuity provides you
with a larger monthly income than other options. This option is also available
with a 10, 15, or 20 year guaranteed payment period (but not exceeding your
life expectancy at the time you begin annuity income). If you die during the
guaranteed period, payments in the same amount that you would have received
continue to your beneficiary(ies)
for the rest of the guaranteed period.
A Survivor
Annuity. This option pays you a lifetime income, and if your annuity
partner lives longer than you, he or she continues to receive an income for
life. The amount continuing to the survivor depends on which of the following
three options you choose:
o
Two-thirds
Benefit to Survivor. At the death of
either you or your annuity partner, the payments are reduced to two-thirds the
amount that would have been paid if both had lived, and are continued to the
survivor for life.
o
Full Benefit
to Survivor. The full income
continues as long as either you or your annuity partner is living.
o
Half Benefit
to Second Annuitant. The full income
continues as long as you live. If your annuity partner survives you, he or she
receives, for life, one-half the income you would have received if you had
lived. If your annuity partner dies before you, the full income continues to
you for life.
All survivor annuities are
available with a 10, 15, or 20 year guaranteed period, but not exceeding the
joint life expectancies of you and your annuity partner. The period may be
limited by federal tax law.
A Minimum Distribution Option
(MDO). The MDO enables participants to automatically comply with federal
tax law distribution requirements. With the MDO, you'll receive the minimum
distribution that is required by federal tax law while preserving as much of
your accumulation as possible. The minimum distribution will be paid to you
annually unless you elect otherwise. This option is generally available in the
year you attain age 70-½ or retire, if later.
14. What are my spouse's rights under this
plan to survivor benefits?
If you are married and benefits
commenced before your death, your surviving spouse will continue to receive
income that is at least half of the annuity income payable during the joint
lives of you and your spouse (joint and survivor annuity). If you die before
annuity income begins, your surviving spouse will receive a benefit that is at
least half of the full current value of your annuity accumulation, payable in a
single sum or under one of the income options offered by the fund sponsor (pre-retirement
survivor annuity).
If you are married, benefits must
be paid to you as described above, unless your written waiver of the benefits
and your spouse's written consent to the waiver is filed with the fund sponsor
on a form approved by the fund sponsor.
A waiver of the joint and
survivor annuity may be made only during the 90-day period before the
commencement of benefits. The waiver also may be revoked during the same
period. It may not be revoked after annuity income begins.
The period during which you may
elect to waive the pre-retirement survivor benefit begins on the first day of
the plan year in which you attain age 35. The period continues until the
earlier of your death or the date you start receiving annuity income. If you
die before attaining age 35 that is, before you've had the option to make a
waiver at least half of the full current value of the annuity accumulation is
payable automatically to your surviving spouse in a single sum, or under one of the income options offered by the fund sponsor.
If you terminate employment before age 35, the period for waiving the
pre-retirement survivor benefit begins no later than the date of termination.
The waiver also may be revoked during the same period.
All spousal consents must be in
writing and either notarized or witnessed by a plan representative and contain an acknowledgment by your spouse as to the effect of
the consent. All such consents shall be irrevocable. A spousal consent is not
required if you can establish to the institution's satisfaction that you have
no spouse or that he or she cannot be located. Unless a Qualified Domestic
Relations Order (QDRO), as defined in Code Section 414(p), requires otherwise,
your spouse's consent shall not be required if you are legally separated or you
have been abandoned (within the meaning of local law) and you have a court
order to such effect.
The spousal consent must
specifically designate the beneficiary or otherwise expressly permit
designation of the beneficiary by you without any further consent by your
spouse. If a designated beneficiary dies, unless the express right to designate
a new one has been consented to, a new consent is necessary.
A consent
to an alternative form of benefit must either specify a specific form or
expressly permit designation by you without further consent.
A consent
is only valid so long as your spouse at the time of your death, or earlier
benefit commencement, is the same person as the one who signed the consent.
If a QDRO establishes the rights
of another person to your benefits under this Plan, then payments will be made
according to that order. A QDRO may preempt the usual requirements that your
spouse be considered your primary beneficiary for a portion of the
accumulation.
15. Is there a way I can receive income
while preserving my accumulation?
Yes, subject to your spouse's
rights to survivor benefits, for TIAA participants between ages 55 and 69 1/2
with a TIAA Traditional Annuity accumulation of at least $10,000. Under the
TIAA Interest Payment Retirement Option (IPRO), you will receive monthly
payments equal to the interest (guaranteed plus dividends) that would otherwise
be credited to your TIAA Traditional Annuity. Payments will be made at the end
of each month. Your accumulation is not reduced while you are receiving
interest payments.
Payments under the IPRO will
consist of the contractual interest rate (currently 3 percent), plus dividends
as declared by TIAA's Board of Trustees. Dividends
are declared each March for the following 12-month period and are not
guaranteed after the 12-month period has expired. If you elect the IPRO, these
rates will be used to determine your monthly payment rather than be credited to
your annuities.
Interest payments made under the
IPRO must continue for at least 12 months. Once you start receiving interest
income payments, you must continue receiving them until you begin receiving
your accumulation under an annuity income option. Usually, you may delay
beginning your annuity income benefits as late as permitted under federal law.
When you do begin annuity income from your TIAA Traditional Annuity
accumulation, you may choose any of the lifetime annuity income options
available under your TIAA contract.
If you die while receiving
interest payments under the IPRO, your beneficiary will receive the amount of
your starting accumulation, plus interest earned but not yet paid. If you die
after you've begun receiving your accumulation as an annuity, your beneficiary
will receive the benefits provided under the annuity income option you've
selected.
16. May I receive a portion of my income
in a single payment after termination of employment?
Yes, subject to your spouse's
rights to survivor benefits, you may receive a portion of your income in a
single sum after termination of employment if you choose the Retirement
Transition Benefit option. This option lets you receive a one-sum payment of up
to 10 percent of your TIAA and CREF accumulations at the time you start to
receive your income as an annuity. The one-sum payment cannot exceed 10 percent
of each account's accumulation then being converted to annuity payments.
17. May I receive a cash withdrawal from
the Plan after termination of employment?
Yes, subject to your spouse's
rights to survivor benefits, you may receive all of your CREF and the TIAA Real
Estate Account accumulations as a cash withdrawal after you terminate
employment if you're at least 55 years old . TIAA
Traditional Annuity accumulations may be received only through the Transfer
Payout Annuity (TPA), in substantially equal annual payments over a period of
10 years after you terminate if you're at least 55 years old. Payments made
under the TPA are subject to the terms of that contract.
You can elect to receive your
cash withdrawal of accumulations through a series of systematic payments using
TIAA-CREF's Systematic Withdrawal service. This
service allows you to specify the amount and frequency of payments. Currently,
the initial amount must be at least $100 per account. Once payments begin, they
will continue for the period you specify. You can change the amount and
frequency of payments, as well as stop and restart payments as your needs
dictate. There is no charge for this service.
18. May I receive a cash withdrawal from
the Plan while still employed?
No, you cannot receive a cash
withdrawal while you are employed.
19. May I receive benefits while still
employed if I become disabled?
You may receive benefits before
you terminate employment if you become disabled. You'll be considered disabled
if you're unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or to be of long-continued and indefinite duration. You won't
be considered disabled unless you provide proof of the existence of your
disability in a form and manner that the Plan administrator may require.
20. May I roll over my accumulations?
If you're entitled to receive a
distribution from your contract which is an eligible "roll over
distribution," you may roll over all or a portion of it either directly or
within 60 days after receipt into another Section 403(b) retirement plan or
into an IRA. An eligible rollover distribution, in general, is any cash distribution
other than an annuity payment, a minimum distribution payment or a payment
which is part of a fixed period payment over ten or more years. The
distribution will be subject to a 20 percent federal withholding tax unless it's
rolled over directly into another retirement plan or into an IRA; this process
is called a "direct" rollover.
If you have the distribution paid
to you, then 20 percent of the distribution must be withheld even if you intend
to roll over the money into another retirement plan or into an IRA within 60
days. To avoid withholding, instruct the fund sponsor to directly roll over the
money for you.
21. What if I die before starting to
receive benefits?
If you die before beginning
retirement benefits, the full current value of your annuity accumulation is
payable as a death benefit. You may choose one or more of the options listed in
your annuity contracts for payment of the death benefit, or you may leave the
choice to your beneficiary. The payment options include:
o
Income for the lifetime
of the beneficiary with payments ceasing at his or her death.
o
Income for the
lifetime of the beneficiary, with a minimum period of payments of either 10, 15, or 20 years, as selected.
o
Income for a
fixed period of not less than two nor more than 30 years for CREF and TIAA Real
Estate Account accumulations , as elected, but not longer than the life
expectancy of the beneficiary;
o
A single sum
payment.
o
A minimum
distribution option. This option pays the required federal minimum distribution
each year.
o
The accumulation
may be left on deposit, for up to one year, for later payment under any of the
options.
Federal tax law puts limitations
on when and how beneficiaries receive their death benefits. TIAA-CREF will
notify your beneficiary of the applicable requirements at the time he or she
applies for benefits.
You should review your
beneficiary designation periodically to make sure the person you want to
receive the benefits is properly designated. You may change your beneficiary by
completing the "Designation of Beneficiary" form available from
TIAA-CREF. If you die without having named a beneficiary and you are married at
the time of your death, your spouse will automatically receive half of your
accumulation. Your estate will receive the other half. If you're not married,
your estate receives the entire accumulation.
In addition, see the answer to
the question "What are my spouse's rights under this plan to survivor
benefits?" for a discussion of your spouse's rights to a survivor benefit
if you are married at the time of your death.
____________________
Part II:
Information About The Fund Sponsors
22. What fund sponsors and funding
vehicles are available under the Plan?
Contributions may be invested in
one or more of the following fund sponsors and their funding vehicles that are
currently available under this Plan:
A. Teachers Insurance and Annuity Association (TIAA):
TIAA Retirement
Annuity (RA):
Traditional Annuity
Real Estate Account
B. College Retirement Equities Fund (CREF):
CREF Retirement
Unit-Annuity (RA):
Stock Account
Money Market
Account
Bond Market Account
Social Choice
Account
Global Equities
Account
Growth Account
Equity Index
Account
Inflation-Linked
Bond Account
Any additional Accounts offered
by TIAA-CREF will automatically be made available to you under this plan unless
the Institution elects otherwise.
The Institution's current
selection of fund sponsors and funding vehicles isn't intended to limit future additions
or deletions of fund sponsors and funding vehicles. You'll be notified of any
additions or deletions.
23. How do the retirement contracts work?
TIAA Traditional Annuity: Contributions to
the TIAA Traditional Annuity are used to purchase a contractual or guaranteed
amount of future retirement benefits for you. Once purchased, the guaranteed
benefit of principal plus interest cannot be decreased, but it can be increased
by dividends. Once you begin receiving annuity income, your accumulation will
provide an income consisting of the contractual, guaranteed amount plus
dividends that are declared each year and which are not guaranteed for the
future. Dividends may increase or decrease, but changes in dividends are
usually gradual. For a recorded message of the current interest rate for
contributions to the TIAA Traditional Annuity, call the Automated Telephone
Service (ATS) at 1 800 842-2888. The ATS is available 24 hours a day, seven
days a week.
CREF and the TIAA Real Estate Account : You have the flexibility to accumulate
retirement benefits in any of the CREF variable annuity accounts approved for
use under the Plan, as indicated above and the TIAA Real Estate Account . Each
account has its own investment objective and portfolio of securities. Contributions
to a CREF account and the TIAA Real Estate Account are used to buy accumulation
units, or shares of participation in an underlying investment portfolio. The
value of the Accumulation Units changes each business day. You may also choose
to receive annuity income under any of the CREF accounts and the TIAA Real
Estate Account. There is no guaranteed baseline income or declared dividends
when you receive annuity income from these accounts. Instead, your income is
based on the value of the annuity units you own, a value that changes yearly,
up or down. For more information on the CREF accounts, you should refer to the
CREF prospectus. For more information about the TIAA Real Estate Account, refer
to the TIAA Real Estate Account prospectus.
For a recorded message of the
latest accumulation unit values for the CREF Accounts and the TIAA Real Estate
Account as well as the seven-day yield for the CREF Money Market Account, call
the ATS at 1 800 842-2888. The recording is updated each business day.
24. How do I allocate my contributions?
You may allocate contributions
among the TIAA Traditional Annuity, the TIAA Real Estate Account, and the CREF
Accounts in any whole-number proportion, including full allocation to any
Account. You specify the percentage of contributions to be directed to the TIAA
Traditional Annuity, the TIAA Real Estate Account, and/or the CREF Accounts on
the Application for TIAA-CREF Retirement Annuity Contracts when you begin
participation. You may change your allocation of future contributions after
participation begins by writing to TIAA-CREF's home
office at
25. May I transfer my accumulations?
Accumulations may be transferred
among the CREF accounts and the TIAA Real Estate Account .
Accumulations in the CREF Accounts and the TIAA Real Estate Account also may be
transferred to the TIAA Traditional Annuity . Partial
transfers may be made from a CREF Account or the TIAA Real Estate Account to
the TIAA Traditional Annuity, among the CREF accounts and the TIAA Real Estate
Account at any time as long as at least $1,000 is transferred each time.
There's no charge for transferring accumulations in the TIAA-CREF system but
TIAA-CREF reserves the right to limit transfer frequency.
TIAA Traditional Annuity
accumulations may be transferred to any of the CREF accounts and the TIAA Real
Estate Account through the Transfer Payout Annuity (TPA). Transfers will be
made in substantially equal annual amounts over a period of 10 years. Transfers
made under the TPA contract are subject to the terms of that contract. The
minimum transfer from the TIAA Traditional Annuity to a CREF account or the
TIAA Real Estate Account is $10,000 (or the entire accumulation if it totals
less than $10,000). However, if your total TIAA Traditional Annuity
accumulation is $2,000 or less, you can transfer your entire TIAA Traditional
Annuity accumulation in a single sum to any of the CREF accounts or the TIAA
Real Estate Account , as long as you do not have an
existing TIAA TPA contract in force but TIAA-CREF reserves the right to limit
transfer frequency.
You may complete transfers within
the TIAA-CREF system by phone, the internet, or in writing. CREF and the TIAA
Real Estate Account transfers, as well as premium allocation changes, will be
effective as of the close of the New York Stock Exchange (usually 4:00 p.m.
Eastern time) on the day the instructions are received by TIAA-CREF, unless you
choose the last day of the current month or any future month. Instructions
received after the close of the New York Stock Exchange are effective as of the
close of the Stock Exchange on the next business day. The toll-free number to
reach the ATS is 1 800 842-2888. The Inter/Act System is accessible on the
Internet at www.tiaa-cref.org
26. May I begin my retirement income at
different times?
Yes. Once you decide to receive
your benefits as income, you have the flexibility to begin income from the TIAA
Traditional Annuity , the TIAA Real Estate Account,
and CREF accounts on different dates. You may begin income from each CREF
account and the TIAA Real Estate Account on more than one date provided you
begin income from at least $10,000 of accumulation in that account.
27. May I receive my retirement
accumulations under different income options?
Yes, under current administrative
practice, you can elect to receive income from your TIAA and CREF annuities
under more than one income option to meet your specific retirement needs.
However, you must begin income from at least $10,000 of accumulation under each
option.
28. What information do I regularly
receive about my contracts?
Each year, you will receive an
annual Annuity Benefits Report from TIAA-CREF that shows the total accumulation
value at year-end for your contracts. This is the amount of death benefits your
spouse or other beneficiary would have received on that date. It also includes
an illustration of the annuity income you would receive at retirement under
certain stated assumptions as to future premiums, your retirement age, the
income option and payment method selected, TIAA Traditional Annuity dividends,
and the investment experience of the TIAA Real Estate Account and the CREF
accounts. These factors affect the amount of your retirement income.
TIAA-CREF also sends you a
Quarterly Confirmation of Transactions. This report shows the accumulation
totals, a summary of transactions made during the period, TIAA interest
credited, and the number and value of the TIAA Real Estate Account and the CREF
account accumulation units. You also may receive Premium Adjustment Notices.
These notices summarize any adjustments made to your annuities and are sent at
the time the adjustments are processed.
And once a year, you'll receive
the TIAA-CREF Annual Report. The Annual Report summarizes the year's activity,
including details on TIAA and CREF investments, earnings, and investment
performance.
____________________
Part III:
Additional Information
29. How is the Plan administered?
Benefits under the plan are
provided by annuity contracts issued to Participants by TIAA-CREF. The Human
Resource Director has been designated the Plan Administrator by the
Institution. The Plan Administrator is responsible for enrolling participants,
forwarding Plan contributions for each participant to the fund sponsors
selected, and performing other duties required for operating the Plan.
30. May the terms of the Plan be changed?
While it's expected that the Plan
will continue indefinitely, the Institution reserves the right to modify or
discontinue the Plan at any time. The Institution, by action of its Board, also
may delegate any of its power and duties with respect to the Plan or its
amendments to one or more officers or other employees of the Institution. Any
such delegation shall be stated in writing. The Institution will exercise good
faith, apply standards of uniform application, and refrain from arbitrary
action.
31. How do I get more information about
the Plan?
Requests for information about
the Plan and its terms, conditions and interpretations including eligibility,
participation, contributions, or other aspects of operating the Plan should be
in writing and directed to:
Human Resource Director
32. What is the Plan's claims procedure?
The following rules describe the
claims procedure under the Plan:
o
Filing a claim
for benefits: A claim or request for
plan benefits is filed when the requirements of a reasonable claim-filing
procedure have been met. A claim is considered filed when a written
communication is made to: Human Resource Director,
o
Processing the
claim: The Plan Administrator must
process the claim within 90 days after the claim is filed. If an extension of
time for processing is required, written notice must be given to you before the
end of the initial 90-day period. The extension notice must indicate the
special circumstances requiring an extension of time and the date by which the
Plan expects to render its final decision. In no event can the extension period
exceed a period of 90 days from the end of the initial 90-day period.
o
Denial of
claim: If a claim is wholly or
partially denied, the Plan Administrator must notify you within 90 days
following receipt of the claim (or 180 days in the case of an extension for
special circumstances). The notification must state the specific reason or
reasons for the denial, specific references to pertinent plan provisions on
which the denial is based, a description of any additional material or
information necessary to perfect the claim, and appropriate information about
the steps to be taken if you wish to submit the claim for review. If notice of
the denial of a claim is not furnished within the 90/180-day period, the claim
is considered denied and you must be permitted to proceed to the review stage.
o
Review
procedure: You or your duly
authorized representative has at least 60 days after receipt of a claim denial
to appeal the denied claim to an appropriate named fiduciary or individual
designated by the fiduciary and to receive a full and fair review of the claim.
As part of the review, you must be allowed to review all plan documents and
other papers that affect the claim and must be allowed to submit issues and
comments and argue against the denial in writing.
o
Decision on review:The Plan must conduct the review and decide the appeal
within 60 days after the request for review is made. If special circumstances require
an extension of time for processing (such as the need to hold a hearing if the
plan procedure provides for such a hearing), you must be furnished with written
notice of the extension, which can be no later than 120 days after receipt of a
request for review. The decision on review must be written in clear and
understandable language and must include specific reasons for the decision as
well as specific references to the pertinent plan provisions on which the
decision is based. For a Plan with a committee or board of trustees designated
as the appropriate named fiduciary, a decision does not have to be made within
the 60-day limit if the committee or board meets at least four times a year
(about every 90 days). Instead, it must be made at the first meeting after the
request is filed, except that when a request is made less than 30 days before a
meeting, the decision can wait until the date of the second meeting following
the Plan's receipt of request for review. If a hearing must be held, the
committee can wait to decide until the first meeting after the hearing.
However, it must notify you and explain the delay, which can be no later than
the third meeting of the committee or board following the Plan's receipt of the
request for review. If the decision on review is not made within the time
limits specified above, the appeal will be considered denied. All
interpretations, determinations, and decisions of the reviewing entity with
respect to any claim will be its sole decision based upon the Plan documents
and will be deemed final and conclusive. If appeal is denied, in whole or in
part, however, you have a right to file suit in a state or federal court.
33. What are my rights under the law?
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
are entitled to:
1. Examine, without charge, at the Plan Administrator's office
all documents, including insurance contracts, and copies of all documents filed
by the Plan with the U.S. Department of Labor, such as annual reports and Plan
descriptions.
2. Obtain copies of all plan documents and other plan
information upon written request to the Plan Administrator. The Administrator
may make a reasonable charge for the copies.
3. Receive a summary of the Plan's annual financial report.
The Plan Administrator is required by law to furnish you with a summary of the
Plan's financial report.
4. Obtain a statement telling whether you have a right to
receive a pension at normal retirement age and if so, what your benefits would
be at normal retirement age if you stop working under the Plan now. If you do
not have the right to a pension, the statement will tell you how many more
years you have to work to get a right to a pension. This statement must be
requested in writing and is not required to be given more than once a year. The
Plan must provide the statement free of charge.
In addition to creating rights
for Plan participants, ERISA imposes duties upon the people who are responsible
for operating the Plan. The people who operate your Plan, called
"fiduciaries" of the Plan, have a duty to do so prudently and in the
interest of you and other Plan participants and beneficiaries. No one,
including your employer, your union, or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
pension benefit or exercising your rights under ERISA. If your claim for a
pension benefit is denied in whole or in part, you must receive a written
explanation of the reason for the denial. You have the right to have the Plan
review and reconsider your claim.
Under ERISA, there are steps you
can take to enforce the above rights. For instance, if you request materials
from the Plan and don't receive them within 30 days, you may file a 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 $100 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 that is denied
or ignored in whole or in part, you may file suit in a state or federal court.
If the Plan fiduciaries misuse
the Plan's money, or if you're discriminated against for asserting your rights,
you may seek assistance from the U.S. Department of Labor, or you may file suit
in a federal court. The court will decide who should pay court costs and legal
fees. If you are successful, the court may order the person you have sued to
pay these costs and fees. If you lose, the court may order you to pay these
costs and fees, for example, if it finds your claim is frivolous. If you have
any questions about your Plan, you should contact the Plan Administrator. If
you have any questions about this statement or about your rights under ERISA,
you should contact the nearest Area Office of the U.S. Pension and Welfare
Benefits Administration, Department of Labor.
34. Is the Plan insured by the Pension
Benefit Guaranty Corporation (PBGC)?
No. Since the Plan is a defined
contribution plan, it isn't insured by the PBGC. The PBGC is the government
agency that guarantees certain types of benefits under covered plans.
35. Who is the agent for service of legal
process?
The agent for service of legal
process is:
Human Resource Director,