Participants directed their elective contributions into various investment options offered by the Plan and could change their investment options on a daily basis. Any participant who had access to material non-public information was prohibited from making changes to their CIBC common stock investments at any time while in possession of material non-public information. In addition, participants subject to CIBC-imposed blackout window periods were only permitted to make elections, including making an intra-plan transfer of an existing account balance, into or out of the CIBC stock fund during an open window period, unless CIBC had restricted trading during such window period.
Participants who were automatically enrolled had their contributions invested in the applicable lifecycle fund based on their age until they change their election. The Company’s contributions were invested in the same manner as that of the participant’s elective contributions.
Participant accounts - Each participant’s account was credited with the participant’s contribution and allocations of: (a) the Company’s contribution and (b) investment earnings and losses were charged with participant withdrawals or distributions and administrative fees and expenses. Allocations were based on employee contributions, eligible compensation or account balances, as defined. The benefit to which a participant was entitled was the benefit that could be provided from the participant’s vested account.
Eligibility - An employee was eligible to participate in the Plan after completing one hour of service, as defined. Participants who were at least 18 years old were eligible for the Company’s contributions after one year of employment.
Vesting - Participants were immediately vested in their contributions and the Company’s qualified matching contributions and corrective non-elective contributions plus actual earnings thereon. Vesting in the Company’s matching and discretionary contribution portion of their accounts plus actual earnings thereon was based on years of continuous service. A participant was 20% vested after one year of credited service and vested 20% per year thereafter, until becoming fully vested after five years of credited service.
Investment options - Participants were able to direct employee contributions into pooled separate accounts (“PSAs”) (maintained by an insurance carrier), common/collective trusts (maintained by an insurance carrier), mutual funds (registered investment companies), and CIBC common stock. Participants were able to transfer funds among all investment options, subject to certain limitations on the timing of such transfers imposed by certain mutual funds and PSAs.
In connection with the merger described above, the Plan sold certain investments on December 31, 2020 that were to be liquidated under the merger. Investments liquidated on December 31, 2020 but not settled as of year-end are reported as due from broker on the statement of net assets available for benefits at December 31, 2020. The remaining investments held by the Plan at December 31, 2020 were transferred to the CIBC Retirement Savings Plan in-kind in January 2021.
Participant loans - Participants could borrow from their own account a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The loans were secured by the balance in the participant’s account and bore interest at the prime rate in effect on the loan acquisition date plus 100 basis points. Principal and interest were paid ratably through payroll deductions.
Payment of benefits - Participants were eligible to receive the vested portion of their Plan account upon retirement, termination of employment, disability or death. Hardship withdrawals were also available to participants who demonstrated financial need in certain circumstances, as defined.
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