Transcription
Summary Plan Descriptionof theCenturyLink Union 401(k) PlanPLEASE READ THIS SUMMARY PLAN DESCRIPTION CAREFULLYAND KEEP IT FOR FUTURE REFERENCE.The date of this Summary Plan Description is July 1, 2017CenturyLink Union 401(k) PlanSPD July 1, 2017
TABLE OF CONTENTSPageSECTION 1: INTRODUCTION . 1Keep Access to Your Plan Account Secure . 1SECTION 2: THE PARTIES RESPONSIBLE FOR THE PLAN AND ITS OPERATIONS. 2Plan Sponsor . 2CenturyLink. . 2Employer Identification Number or EIN. . 2Participating Company. 2Company. . 2Plan Administrator . 2CenturyLink Employee Benefits Committee (the “Committee”). . 2Wells Fargo. . 3Wells Fargo Retirement Service Center. . 3Accessing Your Plan Account . 3Investment Fiduciary - CenturyLink Investment Management Company . 4Investment Manager. 4Self-Directed Brokerage Account . 4Trust Fund and Trustee . 4Agent for Service of Legal Process . 5Where You Can File A Lawsuit Against the Plan . 5Collective Bargaining Agreement. 5SECTION 3: PARTICIPATING IN THE PLAN . 6Covered Employees . 6Ineligible Employees . 6Participating Groups of Covered Employees . 7When Your Plan Participation Commences . 7Making Employee Contributions . 8Separate Election Required To Make Employee Contributions FromBonus Compensation . 9Voluntary Automatic Increase Option. . 9Target My Retirement Automatic Increases. . 9Eligibility for Company Matching Contributions . 10Planning Consideration. . 10Ceasing Participation . 10Participation upon Rehire . 10SECTION 4: PLAN ACCOUNTS AND CONTRIBUTIONS . 11Plan Accounts . 11Pre-Tax Contributions. 11Roth Contributions . 11After-Tax Contributions. 11iCenturyLink Union 401(k) PlanSPD July 1, 2017
TABLE OF CONTENTS(continued)PageMaximum Amount of Pre-Tax Contributions, Roth Contributions and/or After-TaxContributions. 12What Happens If You Contribute More Than The Maximum AnnualDollar Limit? . 12What About Your Participation in Other 401(k) or 403(b) Plans? . 12Catch-Up Contributions . 13Rollover Contributions. 13Employee Contribution Election Changes . 14Automatic Suspension of Contributions Upon Hardship Withdrawal. . 14Matching Contributions . 15Planning Consideration . 15Compensation Used for Plan Contributions . 15Bonus Compensation. . 17Other Rules Regarding Compensation. 17Contributions by Participants Returning from Military Leave . 17SECTION 5: VESTING . 19Vesting Schedule for Group A Participants and Group C Participants . 19Vesting Schedule for Group B Participants . 19Vesting Schedule for Group D Participants . 20Vesting Schedule for Group E Participants . 20Vesting Schedule for Group F Participants . 21Disability Defined . 21Vesting If You Transfer from a Non-Bargaining Position to a Bargaining PositionCovered By The Plan . 21Disposition of Forfeitures . 22Restoration of Forfeited Amounts . 22Service Crediting Rules . 22SECTION 6: INVESTMENT OF YOUR PLAN ACCOUNT . 24Introduction . 24Target Date Funds . 24Core Funds - Building Your Own Portfolio . 25Passively-Managed Core Funds. . 25Actively-Managed Core Funds. . 25Available Fund Investment Options. . 25Self-Directed Brokerage Account . 25PCRA Fees . 26PCRA Restrictions . 26The Importance of Diversifying Your Retirement Savings . 26A Special Note about the CenturyLink Stock Fund. 27Assistance For Your Investment Decisions . 27Wells Fargo Retirement Investment Advice Program. . 28Wells Fargo Target My Retirement Managed Account Program. . 28Who is Responsible for Participant Investment Decisions . 29iiCenturyLink Union 401(k) PlanSPD July 1, 2017
TABLE OF CONTENTS(continued)PageYour Participant Investment Directions. 29Confirmation of Your Investment Directions. . 30Timing. . 30Default Investments . 30More Information about the CenturyLink Stock Fund . 30CenturyLink Stock Fund Closed to New Investments. 30Loan Repayments Are NOT Reinvested in the CenturyLink Stock Fund . 31Dividends . 31Investment Manager of the Company Stock Fund . 31Voting Units of the CenturyLink Stock Fund. . 31Confidentiality. . 31Dividends on CenturyLink Shares. . 31How to Get More Information About the Plan’s Investment Funds . 32SECTION 7: IN-SERVICE WITHDRAWALS . 33Important Information If You Transfer Employment Domestically orInternationally. . 33GENERAL RULES . 33In-Service Withdrawal At or After Age 59½. 33In-Service Withdrawal From Certain Plan Accounts . 33Hardship Withdrawal . 34In-Service Withdrawal While on Military Leave . 35Mandatory In-Service Withdrawals for Certain Company Shareholders Age 70½ . 35Applying for In-Service Withdrawals . 35Form of Payment for In-Service Withdrawals . 35Potential Tax Consequences of In-Service Withdrawals . 36LEGACY ACCOUNT SPECIFIC RULES . 36In-Service Withdrawal from Your QSIP Account . 36Partial Withdrawal from QSIP Account. . 36Regular Full Withdrawal from QSIP Account. 36In-Service Withdrawal from Your Embarq RSP Account . 37In-Service Withdrawal from Your Centel Plan Account . 37SECTION 8: DISTRIBUTIONS . 38Distribution Rules for Plan Account Balances of Less than 1,000 . 38Distribution Rules for Plan Account Balances of 1,000 or More . 38Mandatory Distributions Upon Attainment of Age 70½ . 38Manner of Payment . 38Applying for Distributions . 38Form of Payment for Distributions . 39Direct Rollovers . 39Other Tax Considerations . 39Taxation of Roth Contribution Account Withdrawals. . 40SECTION 9: QUALIFIED DOMESTIC RELATIONS ORDER (QDRO) . 41iiiCenturyLink Union 401(k) PlanSPD July 1, 2017
TABLE OF CONTENTS(continued)PageSECTION 10: LOANS . 42Loan Policy . 42Maximum Loan Amount. 42Loan Interest Rate . 42Repayment Period . 42Failure to Make a Loan Payment . 43What Happens to Your Loan if You Take a Leave of Absence . 43What Happens to Your Loan if You Go On Military Leave . 43Termination of Employment and Loan Repayment. 44How to Apply for a Loan . 44Residential Loan . 44Fees . 45Loan Prepayment . 45Timing and Loan Processing . 45Additional Information . 45SECTION 11: WHAT HAPPENS TO YOUR PLAN ACCOUNT IF YOU DIE . 46Who Is Your Designated Beneficiary . 46Who Is Your Designated Beneficiary If You Are Married. 46Who Is Your Designated Beneficiary If You Are Not Married. 46How To Designate Your Beneficiary or Change An Existing BeneficiaryDesignation . 47On-Line Beneficiary Designations . 47Payment Following Participant’s Death After Termination of Employment . 48Timing of Payment to Beneficiary After Participant’s Death . 49What Happens to Your Plan Account If You Die Without Having A DesignatedBeneficiary . 49SECTION 12: CLAIMS FOR BENEFITS . 50Application Process . 50Adverse Benefit Determination . 50Request for Review of Adverse Benefit Determination . 51Where to Send the Request for Review. . 51Decision on Review of an Adverse Benefit Determination . 51Deadline to File a Civil Suit: Legal Remedy; Where You Must File a Lawsuit . 52Deadline for Claims Involving Certain Transactions . 52SECTION 13: IMPORTANT LEGAL INFORMATION ABOUT THE PLAN . 53About the Plan. 53Official Plan Name. . 53Plan Number or PN. . 53Type of Plan. . 53Pension Benefit Guaranty Corporation. . 53IRS Approval of the Plan. . 53Plan Year. . 53Plan Amendment or Termination. 53ivCenturyLink Union 401(k) PlanSPD July 1, 2017
TABLE OF CONTENTS(continued)PagePlan Administrative and Investment-Related Expenses . 54Plan Administrative Expenses. . 54Investment Management Expenses. . 54Participant-Paid Transaction Fees. 55Circumstances That May Affect Your Plan Account . 55Account Statement . 56No Employment Contract . 56Anti-Assignment . 56Top-Heavy . 57Invalid Provisions . 57Errors or Mistakes; Authority to Recover Overpayments . 57Your ERISA Rights . 57Receive Information About Your Plan Account . 57Prudent Actions by Plan Fiduciaries . 58Enforce Your Rights . 58Assistance with Your Questions . 58Keep Your Home Address Up-To-Date . 59SECTION 14: FEDERAL INCOME TAX EFFECT OF PARTICIPANTCONTRIBUTIONS, COMPANY CONTRIBUTIONS ANDWITHDRAWALS UNDER PRESENT LAW . 60SECTION 15: GLOSSARY . 63Bonus Compensation . 63Centel Plan . 63CenturyLink . 63CIM . 63Code . 63Committee . 63Company . 63Compensation . 63Covered Employee . 63Embarq RSP . 64Employee Contributions . 64ERISA . 64Fund Fact Sheet. 64Highly Compensated Employee . 64Participant . 64PCRA . 64Plan . 64Plan Administrator . 64Plan Sponsor . 64Project Based Employee . 65QDRO . 65QSIP . 65vCenturyLink Union 401(k) PlanSPD July 1, 2017
TABLE OF CONTENTS(continued)PageRetirement Savings Plan . 65Schwab . 65Spouse . 65Trustee. 65APPENDIX AINVESTMENT OPTIONS . 66viCenturyLink Union 401(k) PlanSPD July 1, 2017
SECTION 1: INTRODUCTIONCenturyLink, Inc. (“CenturyLink”) maintains the CenturyLink Union 401(k) Plan (the “Plan”) tobenefit eligible Employees of CenturyLink and other Participating Companies (individually orjointly, the “Company”). This summary plan description, referred to as the “SPD,” explains themain provisions and features of the Plan in effect on January 1, 2017. Please read this SPDcarefully. It is important that you understand the Plan requirements and the benefits it canprovide.This SPD is a summary of the CenturyLink Union 401(k) Plan document as amended andrestated January 1, 2017. The SPD does not and cannot modify the terms of the Plan document.This means that, in the event of inconsistencies between the SPD and the Plan document, thePlan document will control. The capitalized terms used but not defined in this SPD have thesame meaning as in the Plan document.The purpose of the Plan is to provide a convenient way for Employees who are eligible to saveon a regular and long-term basis and to encourage such Employees to continue their careers withthe Company.The Plan is subject to the Employee Retirement Income Security Act of 1974, as amended(“ERISA”), and is intended to be qualified under Section 401(a) of the Internal Revenue Code of1986, as amended (the “Code”). The Plan is intended to be an “ERISA Section 404(c) Plan.”Under an ERISA Section 404(c) Plan, if Participants provide investment instructions for theinvestment of their accounts in compliance with ERISA Section 404(c), the Plan fiduciaries (asexplained in this SPD) will not be liable for investment gains or losses that are the result of theParticipant’s investment instructions.Keep Access to Your Plan Account SecureData security is one of today’s biggest issues facing all of us as our world becomes moreelectronic and computer-based. The Company and the Committee encourage you to take steps toprotect your personal information and to prevent unauthorized access of your Plan account.WAYS TO PREVENT UNAUTHORIZED ACCESS TO YOUR PLAN ACCOUNTThe following are some of the ways to help prevent unauthorized access of your Planaccount: Do not share your Plan account access information or passwords with anyone. Do not write down your Plan account access information or passwords. But, if you haveto write them down, do not store them in a location that is easily accessible by others oron your computer in a location that can be easily hacked. Change your passwords from time to time. Periodically monitor your Plan account and, if you notice something amiss with youraccount, immediately contact the Wells Fargo Retirement Services Center (see page 3 forcontact information).CenturyLink Union 401(k) PlanSPD July 1, 2017
SECTION 2: THE PARTIES RESPONSIBLE FOR THE PLAN AND ITS OPERATIONSThe Plan Sponsor, the Plan Administrator, the Investment Fiduciary and the Trustee are the keyparties that have duties and responsibilities regarding the Plan and its operation. Each of theseparty’s specific duties and responsibilities regarding the Plan are summarized below.Plan SponsorCenturyLink. The Plan Sponsor is CenturyLink. CenturyLink is the term used in this SPD torefer to CenturyLink, Inc. The address and phone number of CenturyLink is:CenturyLink, Inc.100 CenturyLink DriveMonroe, Louisiana 71203Phone Number: 318.388.9000Employer Identification Number or EIN. The “Employer Identification Number” assigned toCenturyLink by the Internal Revenue Service is 72-0651161.A “Participating Company” is any employer that is related toCenturyLink and that has elected to allow its bargaining employees to participate in the Plan.You may make a written request to the Committee to find out whether or not a particular entity isa Participating Company. Written requests should be sent to the Wells Fargo Retirement ServicesCenter (see page 3 for contact information).Participating Company.“Company” is the term used in this SPD to refer to CenturyLink and theParticipating Companies either individually or jointly as the context requires.Company.Plan AdministratorThe Plan Administrator keeps the Plan’s records and has the sole authority, right and discretionto determine all matters of fact or interpretation relative to the administration of the Plan,including questions of eligibility for participation and benefits, interpretation of Plan provisions,communications with Participants and their beneficiaries, and otherwise generally is responsiblefor Plan operations. The decisions of the Plan Administrator, and any other person or group towhom the Plan Administrator has delegated its authority and discretion, will be conclusive andbinding on all persons. References in this SPD to the Plan Administrator include any delegates.CenturyLink Employee Benefits Committee (the “Committee”). The CenturyLink EmployeeBenefits Committee, also referred to as the Committee, has been appointed by the Board ofDirectors of CenturyLink, Inc. to serve as the Plan Administrator. The Committee is notresponsible for Plan investments and does not have the power to amend the Plan. (See page 4 forinformation about the invest
CenturyLink Union 401(k) Plan SPD July 1, 2017 Summary Plan Description of the CenturyLink Union 401(k) Plan PLEASE READ THIS SUMMARY PLAN DESCRIPTION CAREFULLY AND KEEP IT FOR FUTURE REFERENCE. The date of this Summary Plan Description is July 1, 2017
