|PENSION PROTECTION ACT NOTICE
This Notice is designed to provide you with general information regarding your benefits under your Plan. In addition, this Notice provides direction as to the availability of alternative sources of information regarding the amount of your vested benefits and your investments under the Plan. This notice is designed to satisfy reporting requirements under the Pension Protection Act of 2006.
Account Balance and Investment Information
As a Participant in your retirement Plan, you have the ability to accumulate and invest amounts under the Plan. You are receiving periodic benefit statements detailing the amount of benefits in your Plan accounts and how such amounts are being invested. This information includes the value of each investment in which your Plan accounts are invested. If you have questions relating to your investments under the Plan, please contact the Plan Administrator. In addition, you may refer to your Summary Plan Description and investment election forms to determine your options for changing your investment elections and other limitations or restrictions on your right to direct investments under the Plan.
Employer Contributions and Vesting under the Plan
If the Plan provides for Employer Contributions, you may be eligible to receive a share of any such contributions made to the Plan. You should refer to your Summary Plan Description if you have any questions regarding whether you are eligible to receive a share of such contributions. In addition, your contributions may be integrated with Social Security. This type of contribution, called a “permitted disparity” contribution, provides an extra contribution for participants who earn more than a specified level of compensation. By providing an extra contribution for compensation above a specified level (often referred to as a Social Security Integration Level), a permitted disparity contribution is designed to offset the fact that individuals do not receive Social Security benefits with respect to compensation above a certain level. Using permitted disparity, the Plan can make up for some of the benefits that are not provided for under Social Security. Please refer to your Summary Plan Description for specific information on the permitted disparity provisions applicable to the Plan.
When you receive employer contributions under the Plan, you are only entitled to your “vested” share of those contributions. Vesting is determined under the Plan’s vesting schedule based on the number of years of vesting service you have worked. For more information regarding the vesting schedule under the Plan and how to determine your vesting years of service, please refer to your Summary Plan Description. If you have questions regarding your vested percentage under the Plan, please contact your Plan Administrator.
Importance of a Well-Balanced and Diversified Investment Portfolio
To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform very well often cause another asset category, or another particular security, to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.
In deciding how to invest your retirement savings, you should take into account all of your assets, including any retirement savings outside of the Plan. No single approach is right for everyone because, among other factors, individuals have different financial goals, different time horizons for meeting their goals, and different tolerances for risk. Therefore, you should carefully consider the rights described in this notice and how these rights affect the amount of money that you invest in company stock through the Plan.
It is also important to periodically review your investment portfolio, your investment objectives, and the investment options under the Plan to help ensure that your retirement savings will meet your retirement goals.
Information from the U.S. Department of Labor
You will find helpful information relating to investing and diversification on the U.S. Department of Labor website – www.dol.gov/ebsa/investing.html.