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SAFE HARBOR PROVISIONS:
Special Notice to Employees Eligible to Participate in Our Company Plan
Our company Plan is a safe harbor 401k plan. Please read on for important information
regarding our Plan.
A safe harbor plan is not required to perform nondiscrimination testing of participant
elective contributions or of employer matching contributions, but instead has chosen to
meet certain employer contribution requirements and provide 100% immediate vesting
of the contributions.
You should consider the information in this Notice as well as in this Summary Plan
Description in its entirety in deciding the level at which you will participate in our
company Plan.
 To qualify a 401k plan as a safe harbor plan, an employer must make matching
contributions that fulfill the below requirements, or the employer must make a
nonelective contribution equal to 3% of each eligible employee's compensation.
Nonelective contributions are made to all eligible employees, regardless of whether
they participate in the plan or not. Matching contributions, on the other hand, being
based upon salary deferral amounts, are made only to active plan participants.
If our company chooses to make safe harbor matching contributions, the
contributions must meet two requirements: First, each non-highly compensated
employee must receive a dollar-for-dollar match on salary deferrals up to 3% of
compensation and a 50¢ to the dollar match on salary deferrals from 3% to 5% of
compensation. Second, the rate of any matching contributions being made to highly
compensated employees cannot exceed that made to non-highly compensated
employees.
In qualifying its Plan as a safe harbor 401k plan, our company has chosen to... (include the appropriate of the following)
make a 3% nonelective contribution to all eligible employees each year.
make dollar-for-dollar matching contributions to non-highly-compensated employees
on salary deferrals up to 3% of compensation and 50¢ to the dollar matching
contributions to non-highly compensated employees on salary deferrals of 3% to 5% of
compensation, making sure not to exceed these rates in any matching contributions
made to highly compensated employees.
define its contribution rate and type at a later date, in no event later than 30 days
before the end of our Plan Year. You will receive a supplemental notice by that time
informing you of our company's safe harbor contribution decision. Any safe harbor
contribution our company makes will be at least 3% of your compensation, and you will
have 100% immediate vesting of those contributions, if any.
Please check with our Plan Administrator if you would like to know your compensation
categorization (highly compensated versus non-highly compensated) under our Plan.
The amount of your compensation that the Plan will consider for any safe harbor
contributions is the same figure that the Plan uses for other contribution purposes. See
Section IV. Contributions to Our Plan, subsection Compensation of this SPD for details.
In defining its safe harbor designation, our company has chosen to make its safe
harbor contributions... (include the appropriate of the following)annually/per payroll
period/per month/per quarter.
Any safe harbor contributions our company makes will be in addition to any other
employer contributions defined in this Summary Plan Description that our company will
be making to our Plan.
Any safe harbor contributions allocated to your account will be subject to the same
distribution rights and restrictions defined in this Summary Plan Description as other
monies allocated to your account EXCEPT that safe harbor contributions are not eligible
for hardship withdrawals. See Section V. Benefits Under Our Plan for details.
Any safe harbor contributions made will not affect your ability to make salary
deferrals under our Plan, nor will they affect your ability to, at any time, revoke your
decision to make salary deferrals. During the 30 days following our company notifying
you of its safe harbor designation decisions, you are free to start or alter your deferral
election by completing an Enrollment Pac (which includes a Salary Reduction Election
section) and returning it to our Plan Administrator. You may otherwise start or alter your
deferral election on any January 1st, April 1st, July 1st or October 1st, as defined in
Section IV. Contributions to Our Plan.
Our company will notify you at least 30 days (and no more than 90 days) before the
start of each new Plan Year regarding its safe harbor contribution decisions, even if
those decisions have not changed since the previous Plan Year. Notification may come in
the form of an updated Summary Plan Description (this Notice included) or in an
updated Notice only.
Please contact our Plan Administrator if you have any questions regarding our
company's safe harbor designations — or about any other aspect of our company Plan. |
