SUMMARY PLAN DESCRIPTION
FOR USE WITH THE
PROTOTYPE CASH OR DEFERRED PROFIT-SHARING
PLAN AND TRUST/CUSTODIAL ACCOUNT
BASIC PLAN DOCUMENT #04
PLAN NAME: Northfield Federal Savings & Loan Association, Inc. 401(k) Employee
Savings and Investment Plan
ADDRESS: Northfield Federal Savings & Loan Association, Inc.
1844 E. Joppa Road
Baltimore, MD 21234
EMPLOYER'S PLAN NUMBER: 001
DATE: January, 1991
MHC
June 1990
SUMMARY PLAN DESCRIPTION
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TABLE OF CONTENTS
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PAGE
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Section I INTRODUCTION 1
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Section II PLAN DATA
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Agent For Service Of Legal Process 1
Custodian 1
Effective Date 1
Employer 1
Plan Administrator 1
Plan Year 1
Trustee 1
Type of Administration 1
Section III DEFINITIONS
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Break In Service 1
Compensation 2
Disability 2
Early Retirement 2
Effective Date 2
Elective Deferral 2
Entry Date 2
Highly Compensated Employee 2
Hour Of Service 2
Maternity/Paternity Leave 2
Normal Retirement Age 3
Spouse 3
Year Of Service 3
Section IV ELIGIBILITY REQUIREMENTS AND 3
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PARTICIPATION
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Section V EMPLOYEE CONTRIBUTIONS
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Elective Deferrals 3
Voluntary Contributions 4
Rollover And Transfer Contributions 4
Section VI EMPLOYER CONTRIBUTIONS
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Contribution Formula 4
Eligibility For Allocation 5
Section VII GOVERNMENT REGULATIONS 5
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Section VIII PARTICIPANT ACCOUNTS 5
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Section IX VESTING
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Determining Vested Benefit 6
Payment Of Vested Benefit 6
Loss Of Benefits 7
Reemployment 7
Section X TOP-HEAVY RULES 7
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Section XI RETIREMENT BENEFITS AND
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DISTRIBUTIONS
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Retirement Benefits 8
Distributions During Employment 8
Beneficiary 9
Death Benefits 9
Form Of Payment 9
Time Of Payment 10
Annuity Rules 10
Section XII INVESTMENTS
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Insurance Policies 10
Section XIII AMENDMENT AND TERMINATION 10
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Section XIV LEGAL PROVISIONS
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Rights Of Participants 11
Fiduciary Responsibility 12
Employment Rights 12
Benefit Insurance 12
Claims Procedure 12
Assignment 13
Questions 13
Conflicts With Plan 13
I INTRODUCTION
A retirement program has been set up to help supplement your income during
your retirement years. Under the program, the Northfield Federal Savings
and Loan Association (the Savings & Loan) makes contributions to a Trust
Fund/Custodial account which will pay you a benefit at retirement. The
following is a summary of the important provisions of the Savings & Loan's
Retirement Plan. If you terminate employment before reaching retirement,
you may be entitled to receive a benefit if you have completed enough Years
of Service. Further details about how the Plan works are contained in this
summary. While this summary describes most of the principal provisions of
the Plan, it does not include every limitation or detail. Every attempt
has been made to provide concise and accurate information. IF, HOWEVER,
THERE IS A DISCREPANCY BETWEEN THIS BOOKLET AND THE OFFICIAL PLAN DOCUMENT,
THE PLAN DOCUMENT SHALL GOVERN. If you want to read the entire Plan, you
may obtain a copy from the Plan Administrator. The Plan Administrator may
charge a reasonable fee for providing you with the copy.
II PLAN DATA
A. AGENT FOR SERVICE OF LEGAL PROCESS: Northfield Federal Savings
and Loan Association
B. EFFECTIVE DATE: Amended Plan: The Effective Date of the
original Plan was: February 1, 1987 ;
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the Effective Date of this Amended Plan is:
January 1, 1989.
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C. EMPLOYER: Northfield Federal Savings & Loan Association, Inc.
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ADDRESS: 1844 E. Joppa Road, Baltimore, MD 21234
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TELEPHONE NO.: (301) 665-9000
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TAX I.D. NO.: 52-0228804
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D. PLAN ADMINISTRATOR: The Savings & Loan administers the Plan through a
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committee appointed by the Board of Directors.
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E. PLAN YEAR: The 12-month period beginning on January 1 and
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ending on December 31 .
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F. TRUSTEE(S): Signet Trust Company
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ADDRESS: Suite 210, 10400 Little Patuxent Pkwy
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Columbia, MD 21044
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TELEPHONE NO.: (301) 332-5555
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TAX I.D. NO.: 52-0514424
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G. TYPE OF ADMINISTRATION: Trust Fund
III DEFINITIONS
A. BREAK IN SERVICE. A 12-consecutive month period during which you are not
credited with or are not paid for more than 500 hours. If you go into
the military service of the United States, you are not considered
terminated as long as you return to work within the time required by
law. If you separate from employment and incur a Break in Service, all
contributions to your various accounts are suspended. [See special rules
relating to maternity and paternity leave below.] If
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a Break in Service occurs and you return to full time employment with
the Savings and Loan, your rights are explained in the section entitled
"Vesting".
B. COMPENSATION. Your total salary, pay, or earned income from the Savings
and Loan, as reflected on tax Form W-2 and received by you during the
calendar year.
Compensation includes Savings and Loan contributions made to this or
another plan under a Salary Savings Agreement.
C. DISABILITY. A potentially permanent illness or injury, as certified to
by a physician who is approved by the Savings and Loan, which prevents
you from engaging in work for which you are qualified for a period of at
least 12 months.
D. EARLY RETIREMENT. Early Retirement is not provided under the Plan.
E. EFFECTIVE DATE. The date on which the Plan starts or an amendment is
effective.
F. ELECTIVE DEFERRAL. Savings and Loan contributions made to the Plan at
your election, instead of being given to you in cash as part of your
salary. You can elect to defer a portion of your salary, instead of
receiving it in cash, and the Savings and Loan will contribute it to the
Plan on your behalf.
G. ENTRY DATE. The date on which you enter the Plan after having met the
Plan's eligibility requirements. The Entry Date for this Plan is: the
first day of the Plan Year after the date you satisfy the eligibility
requirements.
H. HIGHLY COMPENSATED EMPLOYEE. Any Employee who during the current or
prior Plan Year (1) was a 5% owner, (2) received more than $75,000 in
compensation as adjusted for inflation, (3) received more than $50,000
in compensation as adjusted for inflation and was in the top 20% of
Employees when ranked by compensation, or (4) was an officer receiving
more than $45,000 in compensation as adjusted for inflation. Family
members of any 5% owner, or Highly Compensated Employee in the group of
the ten Employees with the greatest Compensation, will be combined as if
they were one person for purposes of Compensation and contributions. If
you are not currently or never were Highly Compensated, or a family
member of a Highly Compensated Employee, you are a Non-highly
Compensated Employee.
I. HOUR OF SERVICE. You will receive credit for each hour you are (1) paid
for being on your job, (2) paid even if you are not at work (vacation,
sickness, leave of absence, or disability), or (3) paid for back pay if
hours were not already counted. A maximum of 501 hours will be credited
for any year you are not at work but are paid. Hours of Service will be
calculated based on actual hours you work.
J. MATERNITY/PATERNITY LEAVE. You may be eligible for additional Hours of
Service if you leave employment, even if temporarily, due to childbirth
or adoption. If this is the case, you will be credited with enough Hours
(up to 501) of Service to prevent a Break in Service, either in the year
you leave employment or the following year. For example, if you have 750
Hours of Service when your child is born, you would not get any more
hours credited for that Plan Year since you do not have a Break in
Service. Therefore, if you do not return to employment
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the following year, you will get 501 Hours of Service so that you will
not have a Break in Service in that year. Alternatively, if you do not
have a Break in Service, but only work 300 hours, you will receive an
additional 201 hours in order to prevent a break. These Hours of Service
for maternity or paternity leave must all be used in one Plan Year. They
are used only to prevent a Break in Service and not for calculating your
Years of Service for eligibility, vesting or benefits.
K. NORMAL RETIREMENT AGE. You reach Normal Retirement Age under our plan
when you attain age 65.
L. SPOUSE. The person to whom you are or were legally married, or your
common law Spouse if common law marriage is recognized by the state in
which you live. In order for your Spouse to receive a benefit under this
Plan, he or she may not predecease you. A former spouse may be treated
as a "Spouse" under this definition if recognized as such under a
qualified domestic relations order as explained at section XIV(F) of
this Summary Plan Description.
M. YEAR OF SERVICE. For purposes of determining whether or not you are
entitled to have a contribution allocated to your account, a Year of
Service is a 12-month consecutive month period, which is the same as the
Plan Year, during which you are credited with at least 1000 Hours of
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Service. For purposes of determining whether or not you are vested in
your account balance, a Year Service is a 12-consecutive month period
during which you are credited with 1000 Hours of Service.
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IV ELIGIBILITY REQUIREMENTS AND PARTICIPATION
If you have completed 1/2 Year of Service and have attained age 20 1/2, you
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are eligible for participation. The Plan will not cover Employees who are
non-resident aliens who receive no U.S. earned income from the Savings and
Loan.
The Plan will also exclude employees covered by a collectively bargained
agreement where retirement benefits were the subject of good faith
bargaining, piece-work employees, leased employees, and commissioned
employees.
Your participation in the Plan will begin on the Entry Date specified at
Section III(G).
V EMPLOYEE CONTRIBUTIONS
A. ELECTIVE DEFERRALS
You, as an eligible Employee, may authorize the Savings and Loan to
withhold from 1 % up to 20 % of your Compensation, not to exceed
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$7,000 as adjusted for inflation, and to deposit such amount in the
Plan fund. If you participated in a similar plan of an unrelated
employer and your Elective Deferrals under this Plan and the other
plan exceed the $7,000 limit for a given year, you must designate one
of the Plans as receiving an excess amount. If you choose this Plan as
the one receiving the excess, you must notify the Plan Administrator
by March 1 of the following year so that the excess and any income
thereon may be returned to you by April 15. You may increase,
decrease, or terminate your Elective Deferral percentage on any
January 1 and on any July 1, provided that you notify
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the Savings & Loan at least 30 days before making this change.
If you terminate contributions, you may not reinstate payroll
withholding for a period of 12 months.
The Savings and Loan may also reduce or terminate your withholding if
required to maintain the Plan's qualified status.
B. VOLUNTARY CONTRIBUTIONS
You may make personal after-tax contributions to the Plan in any
amount. You are not required to make Voluntary Contributions.
Voluntary Contributions are not tax-deductible, but the investment
earnings are tax-deferred until paid to you under the terms of the
Plan.
C. ROLLOVER AND TRANSFER CONTRIBUTIONS
Rollover Contributions are permitted, but you must be a Participant in
the plan. Transfer Contributions are also permitted, but again you
must be a Participant. The Savings & Loan can refuse to allow Transfer
Contributions to this plan if the transfer will affect the plan's
ability to offer lump sum distributions as the normal form of
distribution.
VI EMPLOYER CONTRIBUTIONS
A. CONTRIBUTION FORMULA
(1) Elective Deferrals:
The Savings and Loan will contribute all Compensation which you
elected to defer to the Plan.
(2) Matching Contributions:
The Savings and Loan will contribute an amount equal to 100% of
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your Elective Deferrals but will not match any Elective Deferrals
in excess of 5% of your Compensation.
Savings and Loan Matching Contributions will only be made for
employee Contributions not withdrawn prior to the end of the
valuation period.
(3) Qualified Non-Elective Contributions:
The Savings and Loan may also contribute an additional amount
determined in its sole judgement. This additional contribution,
if any, will be allocated to only Non-highly Compensated
Participants in proportion to each eligible Employee's
Compensation as a ratio of all eligible Employees' Compensation.
These contributions will be nonforfeitable and subject to the
same withdrawal restrictions as Elective Deferrals.
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(4) Discretionary:
The Savings and Loan may also contribute an additional amount
determined in its sole judgement. Such additional contributions,
if any, shall be allocated to Participants as follows: In
proportion to each Participant's Compensation.
These contributions may or may not be nonforfeitable.
B. ELIGIBILITY FOR ALLOCATION
The Savings and Loan's contribution other than Matching Contributions
will be allocated among all Participants who are employed at the end
of the Plan Year provided that the Employee has completed a Year of
Service for allocation accrual purposes, during the Plan Year. If so
indicated, the Savings and Loan shall also make a contribution for
each Participant who separated from employment during the Plan Year as
a result of retirement, disability, or death.
Matching Contributions will only be allocated to Participants who
actually defer Compensation under the Plan.
VII GOVERNMENT REGULATIONS
The federal government sets certain limitations on the level of
contributions which may be made to a Plan such as this. There is also a
"percentage" limitation which means that the percentage of Compensation
which you may contribute (both Elective Deferrals and, if applicable,
Voluntary Contributions) depends on the average percentage of Compensation
that the other participants are contributing. Simply stated, all
Participants are divided into 2 categories: Highly Compensated and Non-
highly Compensated and the average for each group is calculated. The
average contribution that the Highly Compensated group may make is based on
the average contribution that the Non-highly Compensated make. If a Highly
Compensated Participant is contributing more than he or she is allowed, the
excess plus or minus any gain or loss will either be returned or if
permitted, recharacterized as Voluntary Contributions. Keep in mind that
if you are a 5% owner of the business or one of the ten highest paid
employees, your family member's contribution percentage and Compensation
will be combined with yours for purposes of determining your contributions
under the Plan.
VIII PARTICIPANT ACCOUNTS
The Savings and Loan will set up a record keeping account in your name to
show the value of your retirement benefit. The Savings and Loan will make
the following additions to your account:
A. your allocated share of the Savings and Loan's Contribution (including
your Elective Deferrals),
B. the amount of your personal Employee Voluntary Contributions, Transfer
Contributions and Rollover Contributions, if any,
C. your share of forfeited accounts of former employees. (These are amounts
left behind by employees who terminated before becoming 100% vested in
their benefit), and
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D. your share of investment earnings and appreciation in the value of
investments.
The Savings and Loan will make the following subtractions from your
account:
E. any withdrawals or distributions made to you, and
F. your share of investments losses and depreciation in the value of
investments.
The Savings and Loan will give you a statement showing the additions to and
subtractions from your account semi-annually.
IX VESTING (APPLICABLE TO PARTICIPANTS WHO ACCRUE ONE HOUR OF SERVICE IN 1989
OR SUBSEQUENT PLAN YEARS.)
A. Determining Vested Benefit
Vesting refers to your earning or acquiring a nonforfeitable right to
the full amount of your account(s). Any Employee Contribution
(including Elective Deferrals), Rollover Contribution, or Transfer
Contribution, plus or minus any earnings or losses, is always 100%
vested and cannot be forfeited for any reason.
You will become vested in any contributions (other than the
contributions mentioned in the preceding paragraph), together with any
earnings or losses attributable to such contributions, in accordance
with the following vesting schedule:
Your Years of Service Your Vested Percentage
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Less than 1 0%
1 20%
2 40%
3 60%
4 80%
5 or more 100%
You are considered to have completed 1 Year of Service for purposes of
vesting upon the completion of 1,000 Hours of Service at any time during
the Plan Year. Service prior to the Effective Date of the Plan is not
counted for purposes of vesting. Years of Service which you complete prior
to age 18 will also not count for purposes of vesting.
You automatically become fully vested, regardless of the vesting table,
upon attainment of Normal Retirement Age, Early Retirement Age, upon
retirement due to Disability, upon death, and upon termination of the Plan.
B. PAYMENT OF VESTED BENEFIT
If you terminate your employment before your retirement, death, or
Disability, you may request early payment of your vested benefit by
submitting a written request to the Plan Administrator. If your vested
account balance at the time of
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termination exceeds $3,500, you may defer the payment of your benefit
until April 1 of the calendar year following the calendar year during
which you attain age 70-1/2. If you are not 100% vested when you
terminate employment, the portion of your account balance to which you
are not entitled, is called a "forfeiture" and remains in the Plan for
the benefit of other Participants.
For example, suppose you have worked for the Savings & Loan for three
years, but decide to terminate your employment for personal reasons.
Suppose that during your three years of employment, the Savings & Loan
made contributions to this Plan on your behalf that with earnings has
amounted to $1,500. In accordance with the Vesting Schedule on the
previous page, you are 60% vested. Therefore, you may request that the
Savings & Loan pay you 60% of $1,500, which is $900. A payment to you
of $900 leaves $600 as a forfeiture. Other participants in the Plan
will share in this $600 at a future point in time.
C. LOSS OF BENEFITS
There are only two events which can cause loss of all or a portion of
your account. One is termination of employment before you are 100%
vested according to the vesting table described at IX(A) and the other
is a decrease in the value of your account from investment losses or
administrative expenses and other costs of maintaining the Plan.
D. REEMPLOYMENT
If you terminate service with the Savings and Loan, then later become
reemployed, you will become a Participant as of the next Entry Date
upon returning to employment. A new account will be established on
your behalf. All Years of Service will be counted when calculating
your vested percentage in your new account balance.
If your prior termination of employment resulted in part of your
account balanced becoming a forfeiture, you may be entitled to have
the forfeited amount reinstated to your account. There are some
specific steps which you must take, and there are time limits that
must be met if you want to have your forfeiture reinstated to your
account. Therefore, you should check with the Plan Administrator
immediately upon your reemployment to determine whether you are
eligible for reinstatement of forfeited balances.
X TOP-HEAVY RULES
A "top-heavy" plan is one in which more than 60% of the contributions or
benefits are attributable to certain "key employees", such as owners,
officers and stockholders. If the Plan becomes top-heavy in any year, you
may be entitled to certain minimum benefits. The Plan Administrator is
responsible for determining each year if the plan is "top-heavy".
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XI RETIREMENT BENEFITS AND DISTRIBUTIONS
A. RETIREMENT BENEFITS
If not already paid to you, the full value of your account balance is
generally payable at Normal Retirement Age. If you work beyond your
Normal Retirement Age, and have not separated from Service, you can
request commencement of benefit payments. In either event, you will
continue to fully participate in the Plan. The latest commencement
date for payment of your benefits is generally April 1 of the year
following your attainment of age 70-1/2, even if you are still
employed. If you separate from Service before retirement, you may
elect to receive payments at that time or any time prior to Normal
Retirement.
B. DISTRIBUTIONS DURING EMPLOYMENT
Benefits are not normally payable prior to your separation from
employment. There are four possible exceptions to this rule.
First, you can always withdraw all or any part of your personal
Employee Voluntary Contributions, Rollover Contributions, and Transfer
Contributions and the earnings thereon.
Second, if you are 100% fully vested, and have attained age 59-1/2,
you may withdraw any or all Savings and Loan Contributions that have
been in the account at least two years, plus the investment earnings
thereon.
Third, hardship withdrawals are permitted. You may file a written
request for a hardship withdrawal of Savings and Loan-related
contributions (to the extent vested) and the investment earnings
thereon, and Elective Deferrals and the earnings thereon as of
December 31, 1988. You must have your Spouse's written consent for a
hardship withdrawal. Prior to receiving a hardship distribution, you
must take any other nontaxable distribution and borrow the maximum
nontaxable loan amount allowed under this and other plans of the
Savings and Loan. Hardship withdrawals may be authorized by the
Savings and Loan for the following reasons:
(1) to assist you in purchasing a personal residence which is your
primary place of residence (not including mortgage payments),
(2) to assist you in paying post-secondary tuition expenses for you or
your dependents for the next academic period,
(3) to assist you in paying actual expenses incurred on behalf of you
or your dependents for hospitalization, doctor or surgery expenses
which are not covered by insurance, or
(4) to prevent your eviction from a foreclosure on your principal
residence.
Any hardship distribution is limited to the amount needed to meet the
financial need. Hardship withdrawals must be approved by the Savings
and Loan and will
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be administered in a nondiscriminatory manner. Such withdrawals will
not affect your eligibility to continue to participate in Savings and
Loan Contributions to the Plan. Any withdrawals you receive under
these rules may not be recontributed to the Plan and may be subject to
taxation, as well as an additional 10% penalty tax if the withdrawal
is received before you reach age 59-1/2. If you receive a hardship
withdrawal, there will be a one-year mandatory suspension of your
right to make Elective Deferrals and Voluntary Contributions under the
Plan.
C. BENEFICIARY
Every Participant or former Participant may designate a person (or
persons) who is to receive benefits under the Plan in the event of his
or her death. The designation must be made on a form provided by and
returned to the Plan Administrator. You may change your designation at
any time. If you are married, your beneficiary will automatically be
your Spouse. If you and your Spouse wish to waive this automatic
designation, you must complete a beneficiary designation form. The
form must be signed by you and your Spouse and witnessed by either a
Plan representative or a Notary Public.
D. DEATH BENEFITS
In the event of your death, the full value of your account is payable
to your beneficiary in a lump sump, or in installments payable over
any period which does not exceed the life expectancy of your
beneficiary. If the Plan Administrator so notifies you, the
beneficiary may also be paid in the form of an annuity. See the
special annuity rules at (G). If you die after benefit payments have
started under an installment option and after the attainment of age
70-1/2, your beneficiary will continue to receive payments in
accordance with your payment option selected.
E. FORM OF PAYMENT
When benefits become due, you or your representative should apply to
the Savings and Loan requesting payment of your account and specifying
the manner of payment. The normal or automatic form of payment is
generally a lump sum, unless the Plan Administrator notifies you
otherwise. [See the annuity rules at (G) below.] If you do not wish to
receive the normal form of payment when your payments are due to
start, you may request your benefit in any of the optional forms
indicated:
1. lump sum,
2. installment payments,
3. a life annuity,
4. a joint and 50%, 75%, or 100% survivor annuity.
Selection of an optional form of payment may require the written
consent of your Spouse. Payments may not be made over any period which
exceeds the life expectancy of you and your beneficiary. The life
expectancy of you and/or your Spouse may be recalculated annually at
your discretion.
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F. TIME OF PAYMENT
(1) If you retire, become disabled, or die, payments will start as
soon as administratively feasible following the date on which a
distribution is requested by you or is otherwise payable.
(2) If you terminate for a reason other than death, Disability, or
retirement, payment will start as soon as administratively
feasible following the date on which a distribution is requested
by you or is otherwise payable.
G. ANNUITY RULES
If the benefit under the Plan is payable in the form of an annuity,
the Plan is subject to the annuity rules. Under these rules, there are
two automatic methods of payment for vested Participants depending on
your marital status. If you do not choose another form of payment
(such as a lump sum or installments), the normal form to be paid is a
straight life annuity if you are not married at your retirement date,
or a qualified joint and survivor annuity if you are married. Under a
straight life annuity, you will receive equal monthly payments for as
long as you live. No further payments will be made after your death.
Under a qualified joint and survivor annuity, you will receive a
reduced benefit each month for your lifetime. After you die, 50 % of
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that amount will be paid each month to your Spouse for his or her
lifetime. The amount of your monthly benefit is reduced under a joint
and survivor annuity because it is expected that payments will be made
over two lifetimes instead of one. You may choose another form of
payment by filling out the proper form and returning it to the Plan
Administrator. In order to choose another form of payment or a
beneficiary other than your Spouse, you must make a proper election,
with your Spouse's written consent. Such election must be witnessed by
a Plan representative or Notary. Written notice of these rules will be
provided to you on a timely basis. If you die while still employed by
the Savings and Loan, or die after you retire or terminate employment
but before benefit payments start, your surviving Spouse will be
entitled to a life annuity based on the value of your account. These
payments will continue for your Spouse's lifetime unless he or she
chooses to accelerate such payments. Again, you and your Spouse can
waive this coverage by obtaining the proper form from the Plan
Administrator and completing it.
XII INVESTMENTS
INSURANCE POLICIES
Insurance policies are permitted as an investment of the Plan. You may
elect to use a portion of your account balance for the purchase of
insurance. If you are interested in this option, you may obtain an
Insurance Form from the Plan Administrator. The Form provides the
information you will need to arrange for the purchase of insurance.
XIII AMENDMENT AND TERMINATION
The Savings and Loan or the Sponsor may amend the Plan at any time,
provided that no amendment will divert any part of the Plan's assets
to any purpose other than for the exclusive benefit of you
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and the other Participants in the Plan or eliminate an optional form of
distribution. The Savings and Loan may also terminate the Plan. In the
event of a full or partial termination, all amounts credited to your
account will be fully vested and will be paid to you as directed by the
Savings and Loan. Depending on the facts and circumstances, a partial
termination may be found to occur where a significant number of Employees
are terminated by the Savings and Loan. In case of a partial termination,
only those who separated from Service will become 100% vested.
XIV LEGAL PROVISIONS
A. RIGHTS OF PARTICIPANTS
As a Plan Participant, you have certain rights and protections under
the Employee Retirement Income Security Act of 1974 (ERISA). The law
says that you are entitled to:
(1) Examine, without charge, all documents relating to the operation
of the Plan and any documents filed with the U.S. Department of
Labor. These documents are available for review in the Savings and
Loan's offices during regular business hours.
(2) Obtain copies of all Plan documents and other Plan information
upon written request to the Savings and Loan. The Savings and Loan
may make a reasonable charge for producing the copies.
(3) Receive from the Savings and Loan at least once each year a
summary of the Plan's annual financial report.
(4) Obtain, at least once a year, a statement of the total benefits
accrued for you, and your nonforfeitable (vested) benefits, if
any.
(5) File suit in a federal court, if any materials requested are not
received within 30 days of your request, unless the materials were
not sent because of matters beyond the control of the Savings and
Loan. If you are improperly denied access to information you are
entitled to receive, the Savings and Loan may be required to pay
up to $100 for each day's delay until the information is provided
to you.
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B. FIDUCIARY RESPONSIBILITY
ERISA also imposes obligations upon the persons who are responsible
for the operation of the Plan. These persons are referred to as
"fiduciaries." Fiduciaries must act solely in your interest as a Plan
Participant and they must exercise prudence in the performance of
their duties. Fiduciaries who violate ERISA may be removed and
required to reimburse any losses they have caused you or your Plan.
C. EMPLOYMENT RIGHTS
PARTICIPATION IN THE PLAN IS NOT A GUARANTEE OF EMPLOYMENT. However,
the Savings and Loan may not fire you or discriminate against you to
prevent you from becoming eligible for the Plan or from obtaining a
benefit or exercising your rights under ERISA.
D. BENEFIT INSURANCE
Your benefits under this Plan are not insured by the Pension Benefit
Guaranty Corporation since the law does not require termination
insurance for this type of Plan.
E. CLAIMS PROCEDURE
If you feel you are entitled to a benefit under the Plan, mail or
deliver your written claim to the Plan Administrator. The Plan
Administrator will notify you, your beneficiary, or authorized
representative of the action taken within 60 days of receipt of the
claim. If you believe that you are being improperly denied a benefit
in full or in part, the Savings and Loan must give you a written
explanation of the reason for the denial. If the Savings and Loan
denies your claim, you may, within 60 days after receiving the denial,
submit a written request asking the Savings and Loan to review your
claim for benefit. Any such request should be accompanied by documents
or records in support of your appeal. You, your beneficiary, or your
authorized representative may review pertinent documents and submit
issues and comments in writing. If you get no satisfaction from the
Savings and Loan, you have the right to request assistance from the
U.S. Department of Labor or you can file suit in a state or federal
court. Service of legal process may be made upon the Plan Trustee or
the Plan Administrator. If you are successful in your lawsuit, the
court may require the Savings and Loan to pay your legal cost,
including your attorney's fees. If you lose, and the court finds that
your claim is frivolous, you may be required to pay the Savings and
Loan's legal fees.
F. ASSIGNMENT
Your rights and benefits under this Plan cannot be assigned, sold,
transferred or pledged by you or reached by your creditors (subject to
state law) or anyone else except under a qualified domestic relations
order. A qualified domestic relations order (QDRO) is a court order
issued under state domestic relations law relating to divorce, legal
separation, custody or support proceedings. The QDRO recognizes the
right of someone other than you to receive your Plan benefits. You
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will be notified if a QDRO on your Plan benefits is received. Finally,
receipt of a qualified domestic relations order will allow for an
earlier than normal distribution to the person(s) other than the
Participant listed in the order.
G. QUESTIONS
If you have any questions about this statement of your rights under
ERISA, please contact the Savings and Loan or the nearest Area Office
of the U.S. Labor-Management Service Administration, Department of
Labor.
H. CONFLICTS WITH PLAN
This booklet is not the Plan document, but only a Summary Plan
Description of its principal provisions and not every limitation or
detail of the Plan is included. Every attempt has been made to provide
concise and accurate information. However, if there is a discrepancy
between this booklet and the official Plan document, the Plan document
shall prevail.
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