Transcription
MaineGeneral HealthRetirement Income PlanSummary Plan DescriptionEffective January 1, 2017This Summary Plan Description was prepared as of February , 2017 and summarizes thecontents of the Plan as of January 1, 2017. Should there be a conflict between this summary andthe Plan document, the Plan document will govern.
Table of ContentsI.INTRODUCTION. 1II.DEFINITIONS . 1III.WHEN YOU BEGIN PARTICIPATING IN THE PLAN . 3IV.EMPLOYER CONTRIBUTIONS . 3V.LIMIT ON CONTRIBUTIONS . 4VI.LIMITS ON ANNUAL ADDITIONS . 4VII.MINIMUM CONTRIBUTIONS . 4VIII. IMPORTANT TAX CONSIDERATIONS . 5IX.YOUR ACCOUNT. 6X.WHEN CONTRIBUTIONS ARE VESTED (YOURS TO KEEP) . 6XI.INVESTING YOUR ACCOUNT . 8General . 8Contributions. 9Account Balance . 9Other Information You Can Get . 9XII.WHEN YOUR ACCOUNT WILL BE PAID . 10In-Service Distribution After Age 62 .10Retirement or Termination of MaineGeneral Health Employment . 10Death . 11XIII. HOW YOUR ACCOUNT WILL BE PAID . 12In-Service Distribution after Age 62.12Retirement or Termination of MaineGeneral Health Employment .12Special Rules . 12Mandatory Cash Outs for Small Balances . 13Death . 14XIV. WHEN BENEFITS MAY BE PAID TO AN ALTERNATE PAYEE . 14XV.WHEN THE PLAN ENDS; PLAN AMENDMENTS . 15
XVI. CLAIMING YOUR BENEFITS . 15XVII. HARDSHIP WITHDRAWALS . 16XVIII. YOUR LEGAL RIGHTS UNDER ERISA . 17XIX. ADMINISTRATIVE INFORMATION AND OTHER MATTERS . 18Plan Name .18Type of Plan .18Plan Sponsor .19Plan Number .19Plan Administrator .19Investment Fund Provider .19Service of Legal Process .19Plan Funding .19Benefits Not Insured .20Employment .20Marital Status .20Address Updates .20Date of Summary Plan Description .20
MaineGeneral Health Retirement Income PlanSummary Plan DescriptionEffective January 1, 2017I.INTRODUCTIONThis booklet summarizes the benefits provided to employees of MaineGeneral Health and itscovered affiliates through the MaineGeneral Health Retirement Income Plan (the “Plan”). ThePlan is a money purchase pension plan and is designed to help provide for your financial securityafter you retire. Your Plan benefits are in addition to your Social Security Benefits and anybenefits you have accumulated under other plans maintained by your Employer.The Plan is a complicated legal document, but this summary has been written in nontechnicalterms to explain your benefits, rights and obligations under the Plan. This summary does notattempt to cover all the details contained in the official Plan document. You (or your beneficiaryin the event of your death) are entitled to examine the official Plan document without charge. Inthe event of a conflict between this summary and the Plan, the Plan will govern.Read this booklet carefully, share it with your family, and keep it handy for future reference. Ifyou have questions about the Plan, contact the Plan Administrator at the address or telephonenumber provided at the end of this booklet.II.DEFINITIONSThis booklet uses certain terms to describe the Plan. This is what they mean:Break in ServiceA Break in Service is a Plan Year in which you do notcomplete more than 500 Hours of Service.CompensationCompensation means the salary or wages you receive fromyour Employer, including certain bonuses, shift or otherdifferentials, overtime pay and cash payouts of unusedleave time that you receive during the Plan Year. (Forindividuals in uniformed military service, s”.)Compensation also includes elective contributions made byyour Employer on your behalf under the MaineGeneralHealth cafeteria plan, and salary reduction contributionsmade to an eligible deferred compensation plan.Compensation excludes all other additional or irregularpayments, reimbursements and other expense allowances,fringe benefits (cash and non-cash), moving expenses,deferred compensation and most post-severance payments,1
and welfare benefits. The annual Compensation which maybe taken into account under the Plan is currently limited byfederal tax law to 270,000.DisabilityA mental or physical injury or impairment sufficient toentitle a Participant to receive benefits under the group longterm disability insurance plan maintained by the Employer(as determined under that plan).EmployerMaineGeneral Health (the plan sponsor) and the followingrelated organizations: MaineGeneral Medical ilitation & Long Term Care and MaineGeneralRetirement Community.Employer ContributionsContributions made by an Employer for the benefit ofparticipants under the Plan.ERISAThe federal Employee Retirement Income Security Act of1974, as amended.Hour of ServiceYou will be credited with one Hour of Service for eachhour you work or for which you have a right to be paid forholidays, vacations, sick leave, and so on during the PlanYear. You will not, however, receive credit for more than501 Hours of Service per year during any period when youare not working. Also, you will receive credit during amaternity or paternity absence for the number of hoursnecessary to ensure that you have 501 hours in either theyear the absence begins or the following year.The Hours of Service for any pay period will be credited tothe Plan Year in which you receive your Compensation forthe period.Normal Retirement AgeNormal Retirement Age is age 65.Plan YearThe Plan Year runs from January 1 to December 31.Valuation DateValuation Date means each business day on which the NewYork Stock Exchange is open.Year of ServiceYou will complete a Year of Service if you are creditedwith at least 1,000 Hours of Service during a Plan Year.2
Your service with an employer that is acquired by anEmployer will be treated as service with such Employer forpurposes of determining the number of your Years ofService. An organization will be considered to have been“acquired” if an Employer gains a controlling interest (byvoting rights or otherwise) in such organization orpurchases all or substantially all of the assets of suchorganization.III.WHEN YOU BEGIN PARTICIPATING IN THE PLANYou will begin participating in the Plan on the first day you perform an Hour of Service with anEmployer.If you cease to be employed by an Employer, and if you ever become reemployed by anEmployer, you will begin participating in the Plan immediately after you first perform an Hourof Service with your Employer.The following individuals are not eligible to participate in the Plan: (i) leased employees, (ii)independent contractors, and (iii) employees of any MaineGeneral Health affiliate that is not anEmployer.IV.EMPLOYER CONTRIBUTIONSFor each Plan Year, your Employer will contribute to the Plan a fixed amount equal to 2% of theCompensation of all of the participants who are entitled to share in the fixed contribution thatyear. These contributions are called “Fixed Contributions.”As a participant, you are entitled to share in the Fixed Contributions for a Plan Year if you arecredited with at least 1,000 Hours of Service during such Plan Year. You also will share in theFixed Contributions for a Plan Year if you were a participant at any time during such year andyou die, retire after having attained Normal Retirement Age or retire on account of Disabilityduring such year. A reemployed employee’s period of Qualified Military Service will be takeninto account as required by law for purposes of determining such individual’s entitlement toshare in the Fixed Contributions for a Plan Year.As of the last Valuation Date of each Plan Year, the Fixed Contributions for such year will beallocated and credited to the accounts of participants meeting the above requirements inproportion to their respective amounts of Compensation for such Plan Year. The FixedContributions for any Plan Year will be made no later than the date prescribed by law forcomplying with the minimum funding standards of the Internal Revenue Code.For Plan Years January 1, 2005 through December 31, 2014, your Employer also made specialcontributions for the benefit of participants: (i) who were active participants in the MaineGeneralHealth Pension Plan on December 31, 2004; (ii) whose combined age and complete years ofservice under the Pension Plan as of December 31, 2004 totaled at least 60; and (iii) who became3
and remain active participants in this Plan.Contributions.”These contributions are called “SpecialThe Special Contributions made for the benefit of a participant for any Plan Year increased asthe participant’s age and complete Years of Service increased during the period of theparticipant’s employment, in accordance with the table below:Age Years of ServiceAmount of Special Contribution (as a percentageof the Participant’s Plan Year -99100 or more1%2%3%4%5%6%7%8%9%The amount of a participant’s Special Contribution for each Plan Year was determined based onhis or her age and complete Years of Service as of the last day of the preceding Plan Year.Special Contributions ceased as of December 31, 2014 or, if earlier, upon a participant’sseparation from service.V.LIMIT ON CONTRIBUTIONSEmployer Contributions may be made only to the extent they would be deductible by theEmployer for federal income tax purposes if it were not a tax-exempt organization.VI.LIMITS ON ANNUAL ADDITIONSThe Employer Contributions allocated to your account annually under the Plan (and under anyother defined contribution plan maintained by your Employer), may not exceed the lesser of100% of your compensation or the dollar amount established by the IRS ( 54,000 in 2017). Ifthe contributions exceed this limit, the excess will be used to reduce Employer Contributions.For purposes of this limit, “compensation” means any amount which is includable in grossincome for federal income tax purposes. Compensation also includes any amounts contributed toany other plans maintained by your Employer as pre-tax elective contributions and pre-tax salaryreduction contributions.VII.MINIMUM CONTRIBUTIONSIf the Plan becomes “top-heavy” in any year (that is, if more than 60% of the account balancesunder the Plan belong to “key employees”), federal law requires that a minimum contribution be4
made to the account of each participant who is employed by an Employer on the last day of thePlan Year and who is a non-key employee. Generally, the minimum contribution will be thelesser of 3% of pay or the percentage of pay equal to the highest percentage contributed onbehalf of a key employee. The term “key employee” is defined by federal law and includescertain officers of the Employer.VIII. IMPORTANT TAX CONSIDERATIONSYou do not pay income tax when Employer Contributions are allocated to your account underthe Plan. Instead you pay tax on those amounts when you later receive them as payments fromthe Plan. Similarly, earnings on any Employer Contributions allocated to your account are nottaxed until paid out to you.In addition to regular income tax, a 10% penalty tax is imposed on taxable distributions to youbefore age 59½. However, the penalty tax does not apply to distributions on account of death,disability, retirement or separation from service after age 55.You may, however, be able to defer the income tax (and avoid the 10% penalty tax) by rollingover the distribution, within 60 days after you receive it, to an individual retirement account oranother eligible employer plan (e.g., a profit sharing plan, 401(k) plan or Section 403(b) taxsheltered annuity plan), provided the distribution is not one of the four types listed below. Thistransfer is referred to as a rollover contribution.Twenty percent of the taxable portion of a distribution may have to be withheld as federalincome tax. For example, if you request distribution directly to you of a vested account balanceof 11,000 ( 1,000 of which is pre-1996 employee after-tax contributions that were transferredto this Plan from the HealthReach Network Retirement Income Plan), you will receive 9,000because the Plan must withhold 2,000 as income tax (20% x 10,000 2,000). You may,however, avoid this withholding by instructing the Plan to make a “direct rollover.” (Like arollover contribution, a direct rollover also enables you to avoid the 10% penalty tax.) A “directrollover” is a distribution to an individual retirement account or another eligible employer plan,instead of to you. In the above example, you could instruct the Plan to make a direct rollover toan individual retirement account of the entire 11,000.Your surviving spouse or designated beneficiary also may make a direct rollover, provided ifyour designated beneficiary is not your spouse the direct rollover is restricted to an IRA that willbe treated as an inherited IRA.The 20% withholding and direct rollover rules do not apply to:1.installment or annuity distributions which continue for 10 years or longer, foryour life expectancy (or the joint life expectancy of you and your designatedbeneficiary), or for your life (or the joint lives of you and your designatedbeneficiary);2.minimum distributions required by law after you attain age 70½;5
3.minimum distributions required by law to your spouse or designated beneficiary(after your death); and4.hardship withdrawals from your pre-1996 employee after-tax contributions subaccount, if any.You may elect to have income taxes withheld from installment, annuity or minimumdistributions and from hardship withdrawals (to the extent the withdrawal consists of earnings onyour pre-1996 employee after-tax contributions).If you do not make a direct rollover, you may still make a rollover contribution. Because 20% ofthe taxable portion of your distribution will be withheld as federal income tax, however, you mayroll over only the 80% you receive (plus the non-taxable portion), unless you come up with theremaining 20% from other sources.Your distribution also may be subject to state income tax withholding. Because the tax lawschange often, you should consult a tax advisor before receiving a distribution from the Plan.IX.YOUR ACCOUNTThe Plan maintains an account in your name that separately states the following, as applicable:1.your Fixed Contributions and any Special Contributions;2.your pre-1996 after-tax employee contributions, if any, made under theHealthReach Network Retirement Income Plan (which, effective July 1, 1999,was renamed the HealthReach Community Health Centers Retirement IncomePlan), plus any earnings and losses under such plan attributable to thesecontributions, and that were transferred to this Plan; and3.your pre-1996 matching contributions, if any, made under the HealthReachNetwork Retirement Income Plan (which, effective July 1, 1999, was renamed theHealthReach Community Health Centers Retirement Income Plan), plus anyearnings and losses under such plan attributable to these contributions, and thatwere transferred to this Plan.As of each Valuation Date, your account will be credited with a proportionate share of theearnings and losses from the funds in which your account is invested. At least once eachcalendar quarter, you will receive a statement summarizing your account.X.WHEN CONTRIBUTIONS ARE VESTED (YOURS TO KEEP)When contributions are “vested,” they are yours to keep. You are 100% vested at all times inyour pre-1996 employee after-tax contributions (plus any earnings thereon). The Employer6
Contributions allocated to your account (plus any earnings thereon) and your pre-1996 matchingcontributions, if any, (plus any earnings thereon) vest over time as follows:Years of ServiceVested PercentageLess than 22 but less than 33 but less than 44 but less than 55 but less than 66 or more0%20%40%60%80%100%1If, however, you were hired prior to October 1, 1987 by HealthReach Network (which wasrenamed MaineGeneral Community Care in 2013), the following vesting schedule applies toyour Employer Contributions (plus any earnings thereon) and your pre-1996 matchingcontributions, if any, (plus any earnings thereon):Years of ServiceVested PercentageLess than 22 but less than 33 but less than 44 or more0%50%75%100%If you die or attain Normal Retirement Age while employed by an Employer or if you retire onaccount of Disability, your entire account will become 100% vested. If you die on or afterJanuary 1, 2007 while performing qualified military service, you will be treated as having diedwhile employed by an Employer for vesting purposes. Your entire account also will become100% vested upon termination of the Plan or complete discontinuance of EmployerContributions to the Plan.The nonvested portion of your account will be forfeited as of the earlier of: (i) the datedistribution of the vested portion of your account is made, and (ii) the date you incur 5consecutive Breaks in Service; provided, if you are not vested in any portion of your account atthe time you cease to be employed by your Employer (and are no longer employed by anyEmployer or affiliate), your account will be forfeited as of the date of your termination ofemployment. However, if you return to MaineGeneral Health employment before havingincurred five consecutive Breaks in Service, the amount forfeited will be restored to youraccount, provided you repay the vested portion of your account, if any, that was paid to you afteryour employment terminated.1If, however, you have not completed one Hour of Service on or after January 1, 2002, a different vesting scheduleapplies. Contact the Plan Administrator for details.7
XI.INVESTING YOUR ACCOUNTThe Plan is intended to comply with Section 404(c) of ERISA and Title 29 of the Code ofFederal Regulations Section 2550.404c-1. As a participant or beneficiary, you have theopportunity to: give investment directions (at least quarterly) with respect to your account and obtainwritten confirmation of such directions; obtain sufficient information to make informed decisions with respect to investmentalternatives available under the Plan; and choose from a broad range of investment alternatives (at least three) the manner inwhich all or a portion of your account is invested.As long as the Plan complies with Section 404(c) of ERISA, the Plan fiduciaries (e.g., the PlanAdministrator, the Trustee or an investment manager appointed by the Plan Administrator) willbe relieved of liability for any losses which are the direct and necessary result of investmentdirections given by a participant or beneficiary.General. You may direct the investment of your account among funds designated by the PlanAdministrator or through a participant-directed brokerage account. The Plan Administrator willdesignate one or more of each of the following types of funds (the specific funds offered will beidentified when you enroll):Stable Value Funds. These funds invest primarily in interest bearing contracts designedto protect principal and earn interestBond Funds. These funds invest primarily in bonds.Equity Funds. These funds invest primarily in the common stock of various U.S. orforeign corporations as well as market index funds.More than one fund of each type described above may be offered under the Plan. You shouldcarefully review the prospectus for each fund offered before investing in such fund. If at anytime you would like to receive a prospectus, please contact the investment fund provider(currently Lincoln Financial Group).The Plan Administrator selects the funds and may, at any time, change or eliminate a fund.When a fund is changed or eliminated, the assets in the fund are reinvested in accordance withthe directions of the Plan Administrator, unless you elect to reinvest all or a portion of thebalance of your account which had been invested in the eliminated investment fund in one ormore of the other available investment funds or through a participant-directed brokerage account.If you invest in more than one fund, you must invest at least 1%, or any multiple thereof, in eachfund in which you invest. For example, you may invest 20% of your contribution in a stable8
value fund and 80% in an equity fund, or 1% of your contributions in a stable value fund, 33% ina bond fund and 66% in a balanced fund, but you may not invest 24.5% of your contributions inone fund and 74.5% in another.Contributions. You may direct the investment of the contributions credited to your accountbetween or among the funds available under the Plan. Investment directions and redirectionsmust be given in accordance with the procedures prescribed by the Plan Administrator. Anyinvestment expenses incurred with respect to your account will be charged to your account.If you provide investment directions before you first begin participating in the Plan, thosedirections will take effect immediately when you commence participation. Otherwise,investment directions will generally take effect no later than the next business day after they arereceived by the investment fund provider (currently, Lincoln Financial Group).If you do not provide a timely investment direction (or if you provide no direction) under thePlan, but you have provided investment directions under the MaineGeneral Health Tax ShelteredAnnuity Plan, those investment directions will be applied to your accounts under this Plan. If noinvestment directions have been provided, the contributions credited to your account will beinvested in a “qualified default investment alternative” that meets U.S. Department of Laborrequirements. The “qualified default investment alternative” used by the Plan at any given timeis identified in the Plan enrollment materials. If your contributions are invested in that fund as adefault investment, you will receive a written notice that the investment has been made and youwill have the right to change the investment in accordance with the procedures prescribed by thePlan Administrator. If you do not exercise the right to make another investment choice, you willreceive an additional notice each plan year as a reminder of that right.Account Balance. You may redirect the investment of the balance in your account, in multiplesof 1%, among the investment funds available under the Plan or through a participant-directedbrokerage account. Investment redirections must be made by such written, telephonic orelectronic means as prescribed by the Plan Administrator. A redirection will be effective as soonas practicable following receipt by the investment fund provider (currently Lincoln FinancialGroup).Other Information You Can Get. Upon request to the investment fund provider (currentlyLincoln Financial Group), at the address or phone number listed at the end of this booklet, youmay receive the following information: copies of any prospectuses (or, alternatively, any SEC-approved short-form or summaryprospectuses), financial statements and reports and other similar materials relating to theinvestment funds, to the extent such information is provided to the Plan; a statement of the value of a share or unit of each investment fund, as well as the date ofvaluation; and9
a list of assets comprising the portfolio of each investment fund which constitute Planassets and the value of each such asset (or the proportion of the investment which itcomprises); andThe Plan Administrator is the fiduciary responsible for providing this information, and it may bereached at the address and phone number listed at the end of this booklet. The PlanAdministrator has designated Lincoln Financial Group to act on its behalf for purposes ofproviding this information, and Lincoln Financial Group’s address and telephone number areprovided at the end of this booklet.XII.WHEN YOUR ACCOUNT WILL BE PAIDExcept as described below, your account is paid out only upon retirement, termination ofMaineGeneral Health employment or death. “MaineGeneral Health employment” meansemployment by MaineGeneral Health, including its affiliates.Payment of your account generally must be made or commence, however, no later than April 1of the year following the later of (i) the year in which you attain age 70½ or (ii) the year youretire.Under certain exceptional circumstances, the Plan Administrator may permit a hardshipwithdrawal from your pre-1996 employee after-tax contributions sub-account, if any. Thisaccount consists of any pre-1996 employee after-tax contributions you made under theHealthReach Network Retirement Income Plan (renamed the HealthReach Community HealthCenters Retirement Income Plan, effective July 1, 1999), plus any earnings and losses thereon,that were transferred to this Plan and the income, expenses, gains and losses attributable to thosetransferred contributions.In-Service Distribution After Age 62If you have attained age 62 and have not retired or terminated from MaineGeneral Healthemployment, you may elect to receive or begin receiving payment of the vested portion of youraccount balance in accordance with the procedures established by the Plan Administrator.Retirement or Termination of MaineGeneral Health EmploymentIf you retire (after reaching Normal Retirement Age or becoming Disabled) or terminate yourMaineGeneral Health employment, you may elect to receive or begin receiving payment of yourvested account balance as of any Valuation Date after your MaineGeneral Health employmentends. Your election must be made by such written, telephonic or electronic means prescribed bythe Plan Administrator. Your account will be valued as of the first Valuation Date that isadministratively practicable following the Plan Administrator’s receipt of your election (or theValuation Date specified in your election, if later), and you will receive or begin receivingpayment of your vested account balance as soon as practicable thereafter.10
If you terminate employment at MaineGeneral Health and the vested portion of your accountbalance does not exceed 5,000, your vested account balance will be paid as follows: If the vested portion of your account balance does not exceed 1,000, your vestedaccount balance will be paid to you in a lump sum as soon as practicable followingtermination of your MaineGeneral Health employment, or If the vested portion of your account balance exceeds 1,000, but does not exce
the Plan Year in which you receive your Compensation for the period. Normal Retirement Age Normal Retirement Age is age 65. Plan Year The Plan Year runs from January 1 to December 31. Valuation Date Valuation Date means each business day on which the New York Stock Exchange is open. Year of Service You will complete a Year of Service if you are .
