Summary Plan Description
PENTEGRA RETIREMENT SERVICES
Pentegra
401(k)
Program
as adopted by:
American Bank of New Jersey
SUMMARY PLAN DESCRIPTION
for
American Bank of New Jersey
Bloomfield, NJ
June 1, 2005
PENTEGRA SERVICES, INC.
108 Corporate Park Drive
White Plains, NY 10604
To Participating Employees of American Bank of New Jersey:
We are pleased to present this booklet so that you may better understand and
appreciate the benefit which is provided by your employer by establishing the
American Bank of New Jersey Employees' Savings and Profit Sharing Plan and Trust
(the "Plan").
The Plan enables you to save and invest on a regular, long term basis. All
contributions to the Plan (a defined contribution plan) are paid to the trustee
to be invested in the investment options offered under the Plan. An individual
account is maintained for each member. Under certain conditions, a member may
make withdrawals or loans from his account based on its market value.
The Plan offers federal income tax advantages. The employee does not pay taxes
on employer contributions or investment income until he/she withdraws them. An
employer subject to income tax may deduct its contributions.
This booklet highlights the main features of the Plan. The Plan and trust
contain the governing provisions and should be consulted as official text in all
cases. If there is any conflict between this booklet (Summary Plan Description)
and the Plan Document, the Plan Document will control.
Your Employer,
American Bank of New Jersey
SUMMARY OF YOUR BENEFITS
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ELIGIBILITY You will be eligible for membership in the
Plan on the first day of the month coinciding
with or next following the date you complete
3 months of employment and attain age 21.
You will be eligible to receive employer
contributions on the first day of the month
coincident with or next following the date
you complete 1 year of employment and attain
age 21.
Notwithstanding the above, any employees who
are covered by a collective bargaining
agreement and/or non-resident aliens who
receive no earned income from the employer
which constitutes income from sources in the
United States shall not be eligible for
membership in the Plan.
PLAN SALARY Plan Salary is defined as your total taxable
compensation as reported on your Form W-2,
(exclusive of any compensation deferred from
a prior year).
In addition, any pre-tax contributions which
you make to an Internal Revenue Code Section
401(k) plan, as well as pre-tax contributions
to a Section 125 cafeteria plan and unless
the employer elects otherwise, Qualified
Transportation Fringe benefits as defined
under Section 132(f) of the Internal Revenue
Code, are included in Plan Salary.
PLAN CONTRIBUTIONS Employee - You may elect to make a pre-tax
--------
contribution of 1% to 50% (in 1% increments)
of Plan Salary. Alternatively, you may elect
to make a pre-tax contribution to the Plan
of a specified dollar amount (not to exceed
50% of your monthly Plan Salary).
Employer - Your employer will contribute an
--------
amount equal to 50% of your contribution. The
above percentage rate shall apply to the
first 6% of your Plan Salary (see "Plan
Salary" section of this booklet).
Illustration
------------
Employee Employer
Contribution Rate Matching Contribution
----------------- ---------------------
1% 0.50%
2% 1.00%
3% 1.50%
4% 2.00%
5% 2.50%
6-50% 3.00%
In addition, your employer may, in its sole
discretion, make a Profit Sharing
contribution to the Plan. You will be
eligible to receive a Profit Sharing
contribution if you are a Plan Member at any
time during the Plan Year for which Profit
Sharing contributions are being made to the
Plan by the Employer or retire, die or become
totally and permanently disabled prior to
December 31 of the year for which the Profit
Sharing contributions are being made to the
Plan by your employer.
Please refer to the "Making Withdrawals From
Your Account" section of this booklet to
determine if there are any restrictions on
employer contributions on account of a
withdrawal.
SUMMARY OF YOUR BENEFITS
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CONTINUED
VESTING You will be 100% vested in any employer
contributions after you complete 6 years of
employment. You are always 100% vested (i.e.,
you will not give up any units when you
terminate employment) in any contributions
you make to the Plan.
LOANS You may take a loan from your account and pay
your account back with interest. Please refer
to the "Borrowing From Your Account" section
of this booklet to determine how you may take
a loan from your account.
WITHDRAWALS While you are working, you may withdraw all
or part of your vested account balance
subject to certain limitations. You may also
make withdrawals from your account after
termination of employment.
DISABILITY If you are disabled, you will be entitled to
the same withdrawal rights as if you had
terminated employment.
DEATH If you die before the value of your account
is paid to you, your beneficiary may receive
the full value of your account or may defer
payment within certain limits. If you are
married, your spouse will be your beneficiary
unless your spouse consents in writing to the
designation of a different beneficiary.
TABLE OF CONTENTS
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Employee Eligibility...........................................................1
Reenrollment...................................................................1
Making Contributions to the Plan...............................................2
o Plan Contributions........................................................2
o Allocation of Contributions...............................................2
o Rollovers.................................................................3
o Plan Salary...............................................................3
Investing Your Account.........................................................4
o Investment of Contributions...............................................4
o Valuation of Accounts.....................................................4
o Reporting to Members......................................................5
Vesting........................................................................6
Making Withdrawals from Your Account...........................................7
o While Employed............................................................7
o Upon Termination of Employment............................................7
o Upon Disability...........................................................8
o Upon Death................................................................8
Borrowing from Your Account....................................................9
o Loans.....................................................................9
Plan Limitations..............................................................10
Top Heavy Information.........................................................11
Disputed Claims Procedure.....................................................11
Qualified Domestic Relations Orders (QDRO's)..................................11
Statement of Members Rights...................................................12
Plan Information..............................................................14
DETERMINING YOUR ELIGIBILITY
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-5-
Employee Eligibility You will be eligible for membership in the Plan
on the first day of the month coinciding with
or next following the date you complete 3 months
of employment and attain age 21. In order for
you to complete 3 months of employment, you must
complete at least 250 hours of employment in a 3
consecutive month period. The initial 3
consecutive month period is measured from your
date of employment, and (if you do not complete
at least 250 hours of employment in such period)
subsequent 3 month periods are measured.
You will be eligible to receive employer
contributions on the first day of the month
coincident with or next following the date you
complete 1 year of employment and attain age 21.
In order for you to complete 1 year of
employment, you must complete at least 1,000
hours of employment in a 12 consecutive month
period. The initial eligibility period is
measured from your date of employment.
In counting hours you will be credited with an
hour of employment for every hour you have a
right to be paid. This includes vacation, sick
leave, jury duty, etc. and any hours for which
back pay may be due.
Notwithstanding the above, any employees who are
covered by a collective bargaining agreement
and/or non-resident aliens who receive no earned
income from the employer which constitutes
income from sources in the United States shall
not be eligible for membership in the Plan.
After you meet the Plan's eligibility
requirements and your completed enrollment form
is received and processed by Pentegra Services,
Inc., you will be enrolled in the Plan. Your
participation will continue until the earlier of
(a) your termination of employment and payment
to you of your entire account or (b) your death.
Reenrollment If you terminate employment and are subsequently
reemployed by the same employer, you will be
eligible for immediate reenrollment.
-1-
MAKING CONTRIBUTIONS TO THE PLAN
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CONTINUED
Plan Contributions Employee - You may elect to make a pre-tax
--------
contribution of 1% to 50% (in 1% increments) of
Plan Salary (see "Plan Salary" section of this
booklet). Alternatively, you may elect to make
a pre-tax contribution to the Plan of a
specified dollar amount (not to exceed 50% of
your monthly Plan Salary). You may elect not to
make any contributions. You may change the rate
at which you are contributing one time in any
pay period. You may suspend your contributions
at any time, but suspended contributions may not
subsequently be made up.
Employer - Your employer will contribute an
--------
amount equal to 50% of your contribution. The
above percentage rate shall apply to the first
6% of your Plan Salary (see "Plan Salary"
section of this booklet).
In addition, your employer may, in its sole
discretion, make a Profit Sharing contribution
to the Plan. You will be eligible to receive a
Profit Sharing contribution if you are a Plan
Member at any time during the Plan Year for
which Profit Sharing contributions are being
made to the Plan by the Employer or retire, die
or become totally and permanently disabled prior
to December 31 of the year for which the Profit
Sharing contributions are being made to the Plan
by your employer.
Please refer to the "Making Withdrawals From
Your Account" section of this booklet to
determine if there are any restrictions on
employer contributions on account of a
withdrawal.
Allocation of Your employer has an account for each member.
Contributions All of your contributions and all employer
contributions will be allocated to this account.
The total of the value of your account
represents your interest in the plan.
Profit Sharing contributions, if any, shall be
allocated to your Profit Sharing account.
Subject to the overall permitted disparity
limits, employer contributions will be allocated
to the accounts of eligible Members who were
active Employees at any time during the Plan
Year:
Step One: If the Plan is top heavy,
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contributions will be allocated to each eligible
Member's Account in the ratio that each eligible
Member's Salary bears to the total of all
eligible Member's Salary, but not in excess of
3% of such eligible Member's Salary.
Step Two: If the Plan is top heavy, any
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contributions remaining after the allocation in
Step One will be allocated to the Account of
each eligible Member in the ratio that each
eligible Member's Salary for the Plan Year in
excess of the Social Security Taxable Wage Base
("TWB") at the beginning of the Plan Year bears
to the total excess Salary of all eligible
Members, but not in excess of 3% of such
member's Salary.
For purposes of this Step Two, in the case of an
eligible Member who has exceeded the cumulative
permitted disparity limit, such eligible
Member's total Salary for the Plan Year shall be
taken into account.
Step Three: Any contributions remaining after
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the allocation in Step Two will be allocated to
the Account of each eligible Member in the ratio
that the sum of each Member's Salary and the
Salary in excess of the TWB at the beginning of
the Plan Year bears to the sum of all such
Member's Salary and Salary in excess of the TWB
at the beginning of
-2-
MAKING CONTRIBUTIONS TO THE PLAN
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CONTINUED
the Plan Year but not in excess of the profit-
sharing Maximum Disparity Rate. For purposes
of this Step Three, in the case of an eligible
Member who has exceeded the cumulative permitted
disparity limit, two times such eligible
Member's Salary will be taken into account.
Step Four: Any remaining Employer contributions
---------
will be allocated to each eligible Member's
Account in the ratio that each eligible Member's
Salary bears to all such Member's Salary.
Internal Revenue Service Nondiscrimination Rules
------------------------------------------------
If you are a highly compensated employee, a
portion of your contributions and/or employer
contributions made on your behalf, if any, may
have to be returned to you in order to comply
with special Internal Revenue Service (IRS)
nondiscrimination rules (see "Plan Limitations"
section of this booklet for other limitations).
In general, a highly compensated employee is an
employee who:
(a) was a 5% owner at any time during the
current or preceding year, or
(b) received annual compensation from the
employer for the preceding year in excess
of $90,000 (indexed for cost-of-living
adjustments, if any).
Rollovers You may make a rollover contribution of an
eligible rollover distribution from any other
Internal Revenue Service qualified retirement
plan or an individual retirement arrangement
(IRA). These funds will be maintained in a
separate rollover account in which you will have
a nonforfeitable vested interest. Please note
that you may establish a "rollover" account
within the Plan prior to satisfying the
employer's eligibility requirements. However,
the establishment of a "rollover" account prior
to satisfying such eligibility will not
constitute active membership in the Plan.
Plan Salary Plan Salary is defined as your total taxable
compensation as reported on your Form W-2,
(exclusive of any compensation deferred from
a prior year).
In addition, any pre-tax contributions which you
make to an Internal Revenue Code Section 401(k)
plan, as well as pre-tax contributions to a
Section 125 cafeteria plan and unless the
employer elects otherwise, Qualified
Transportation Fringe benefits as defined under
Section 132(f) of the Internal Revenue Code, are
included in Plan Salary. However, Plan Salary
for any year may not exceed $210,000 for 2005
(indexed for cost-of-living adjustments).
-3-
INVESTING YOUR ACCOUNT
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Investment of Contributions are invested at your direction in
Contributions one or more of the investment funds provided
under your Plan. These funds are described in
greater detail in your enrollment kit.
Contributions made by you are invested at your
direction in one or more of the investment funds
in whole percentages. You may apply different
investment instructions to amounts already
accumulated as opposed to future contributions.
Certain restrictions may apply. Changes in
investment instructions may be made by
submitting a properly completed form or by using
Pentegra by Phone, the Pentegra Voice Response
System. You may access Pentegra by Phone by
calling 1-800-433-4422.
Any changes made by using Pentegra by Phone
which are received by Stock Market Closing
(usually 4 p.m. Eastern Time) will be processed
at the business day's closing price. Transaction
changes received after Stock Market Closing will
be processed on the next business day. Your Plan
allows for a change of investment allocation on
a daily basis.
Investment changes made by submitting a form are
effective on the valuation date (see "Valuation
of Accounts" section of this booklet) on which
your written notice is processed.
No amounts invested in the Stable Value Fund may
be transferred directly to the Money Market
Fund. Stable Value Fund amounts transferred to
and invested in any of the other funds provided
under the Plan for a period of three months may
subsequently be transferred to the Money Market
Fund upon the submission of a separate Change of
Investment form.
If no investment direction is given, all
contributions credited to a participant's
account will be invested in the Money Market
Fund.
Valuation The Plan uses a unit system for valuing each
of Accounts Investment Fund. Under this system each
participant's share in any Investment Fund
is represented by units. The unit value is
determined as of the close of business each
regular business day (daily valuation). The
total dollar value of a participant's share in
any Investment Fund as of any valuation date is
determined by multiplying the number of units to
the participant's credit by the unit value of
the Fund on that date. The sum of the values of
the Funds you select represents the total value
of your Plan account.
Transaction requests, such as withdrawals,
change of investment elections or distributions
that are received by Pentegra Services, Inc.
(assuming proper receipt of all pertinent
information) will be processed by the Plan
Administrator.
NOTE: If for some reason (such as shut down of
financial markets) the underlying portfolio of
any Investment Fund cannot be valued, the
valuation date for such Investment Fund shall be
the next day on which the underlying portfolios
can be valued.
-4-
INVESTING YOUR ACCOUNT
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CONTINUED
Reporting to Members
As soon as practicable after the end of each
calendar quarter, you will receive a personal
statement from the plan. This statement provides
information about your account including its
market value in each investment fund. Activity
for the quarter is reported by investment fund
and contribution type.
-5-
VESTING
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Vesting "Vesting" is the process under which you earn a
non-forfeitable right to the units in your
account. You are always 100% vested (i.e., you
will not give up any units when you terminate
employment) in any contributions you make to the
Plan.
With respect to employer contributions credited
to your account, the following schedule will
dictate when vesting will occur:
Years of service Vesting Percentage
---------------- ------------------
Less than 2 0%
2 20%
3 40%
4 60%
5 80%
6 or more years 100%
You will also become 100% vested in the employer
contributions and earnings thereon credited to
your account upon your death, approved disability
or attainment of age 65 while employed with this
employer.
If you terminate employment with this employer
prior to completing 2 years of service, you will
forfeit all of the employer contributions and
earnings thereon credited to your account.
However, if you are reemployed by this employer
prior to incurring 5 consecutive 1-year breaks in
service, measured from your date of termination,
you are eligible to have the amount of the
forfeiture and your corresponding vesting service
restored to your account.
If you terminate employment with this employer
after completing 2 years of service but prior to
becoming 100% vested, you will forfeit the
non-vested portion of the employer contributions
and earnings thereon credited to your account. If
you are reemployed by this employer prior to
incurring 5 consecutive 1-year breaks in service,
you are eligible to have the amount of the
forfeiture restored to your account. If you
received a distribution of the vested portion of
your account prior to incurring 5 consecutive
1-year breaks in service, such restoration is
conditioned on your paying back to your account
the amount of your prior vested balance within 5
years of the date it was distributed to you. In
either event, your prior vesting service will be
recredited to your account.
Please note that you will be credited with a year
of service for vesting purposes if you complete
1,000 hours of employment during the Plan Year.
In order to determine your hours of employment,
you will be credited with 190 hours of employment
for each month during your service with American
Savings Bank of NJ.
-6-
MAKING WITHDRAWALS FROM YOUR ACCOUNT
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You may make a total or partial withdrawal of the
vested portion of your account by filing the
appropriate form with the Plan Administrator for
transmittal to Pentegra Services, Inc. A withdrawal
is based on the unit values on the valuation date
coinciding with the date that a properly completed
withdrawal form is received and processed by
Pentegra Services, Inc. (See "Valuation of
Accounts" section of this booklet).
Under current law, an excise tax of 10% is
generally imposed on the taxable portion of
withdrawals occurring prior to your attainment of
age 59 1/2. There are certain exceptions to the 10%
excise tax. For example, the 10% excise tax will
not apply to withdrawals made on account of
separation from service at or after attainment of
age 55, death or disability.
While In general, employer contributions credited on
Employed your behalf will not be available for in-service
withdrawal until such employer contributions
have been invested in the Plan for at least 24
months (2 years) or you have been a participant
in the Plan for at least 60 months (5 years) or
the attainment of age 59 1/2.
As required by Internal Revenue Service
Regulations, a withdrawal from your pre-tax
contributions prior to 59 1/2 or termination of
employment can only be made on account of hardship.
The existence of an immediate and heavy financial
need, and the lack of any other available financial
resources to meet this need, must be demonstrated
for a hardship withdrawal. The following situations
will be considered to constitute an immediate and
heavy financial need:
1) Medical expenses (other than amounts paid by
insurance).
2) The purchase of a principal residence (mortgage
payments are excluded).
3) Tuition, including room and board, for the next
12 months of Post-secondary education.
4) The prevention of the eviction from a principal
residence or foreclosure on the mortgage of a
principal residence.
In addition, an in-service withdrawal of employer
matching contributions, employer Profit Sharing
contributions, if any and/or employee rollover
contributions, if any, credited to your account may
only be made upon your attainment of age 59 1/2 or
on account of hardship.
Only one in-service withdrawal may be made in any
Plan Year.
Upon You may leave your account with the Plan and defer
Termination of commencement of receipt of your vested balance
Employment until April 1 of the calendar year following the
calendar year in which you attain age 70 1/2,
except to the extent that your vested account
balance as of the date of your termination is less
than $500, in which case your interest in the Plan
will be cashed out and payment sent to you.
Please note that if you leave your account with
the Plan and your vested balance is less than
$20,000, your account will be assessed an annual
administrative fee in the amount of $24.00. If your
vested balance is equal to or exceeds $20,000, no
annual administrative fee shall be assessed to your
account. You may make withdrawals from your
account(s) at any time after you terminate
employment. You may continue to change the
investment instructions with respect to your
remaining account balance and
-7-
MAKING WITHDRAWALS FROM YOUR ACCOUNT
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CONTINUED
make withdrawals as provided above.(See "Investment
of Contributions" section of this booklet).
You may elect to receive your benefit in the form
of (i) an annuity payable for your life, (ii) a
lump sum payment, or (iii) in the form of annual
installments with the right to take in a lump sum
the vested balance of your account at any time
during such payment period. If the actuarial
determination of your life expectancy is less than
the period you elect, the maximum period over which
you can receive annual installments will be the
next lower payment period.
If you are married and you have elected to receive
your benefit in the form of a life annuity, your
spouse must consent in writing to waive the right
to receive a qualified joint and survivor annuity
form of payment.
Upon Disability If you are disabled in accordance with the
definition of disability under the Plan, you will
be entitled to the same withdrawal rights as if you
had terminated your employment.
You are disabled under the Plan if you are eligible
to receive (i) disability insurance benefits under
Title II of the Federal Social Security Act or (ii)
disability benefits under any other Internal
Revenue Service qualified employee benefits plan or
long-term disability plan of your employer.
Upon Death If you die when you are a participant of the Plan,
the value of your entire account will be payable to
your beneficiary. If you are married at the time
of your death, your spouse will be the beneficiary
of your death benefit, (unless your spouse consents
in writing to the designation of a different
beneficiary). If you are not married at the time of
your death or your spouse consents to a different
beneficiary, such beneficiary may elect to receive
the benefit in the form of a lump sum payment or in
the form of installments over a period not to
exceed 5 years (10 years if your spouse is your
beneficiary) or under the life expectancy method.
Notwithstanding the above, if your account under
the Plan is less than $500, then your account will
be distributed to your beneficiary as soon as
practicable following your date of death regardless
of your marital status at the time of your death.
-8-
BORROWING FROM YOUR ACCOUNT
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Loans You may borrow from the vested portion of your
account. You may borrow any amount between $1,000
and $50,000 (reduced by your highest outstanding
loan balance(s) from the Plan during the
preceding 12 months). In no event may you borrow
more than 50% of the vested balance of your
account.
The amount of your loan will be deducted on the
valuation date (see "Valuation of Accounts"
section of this booklet) coinciding with the date
that Pentegra Services, Inc. receives and
processes your properly executed Loan
Application, Promissory Note and Disclosure
Statement and Truth-in-Lending Statement. On
request, the Plan Administrator will provide you
with the application form. The loan will not
affect your right to continue making
contributions or to receive the corresponding
employer contributions.
The rate of interest for the term of the loan
will be established as of the loan date, and
shall be a reasonable rate of interest generally
comparable to the rates of interest then in
effect at a major banking institution (e.g., the
Barron's Prime Rate [base rate] plus 1%).
Repayments are made through payroll deductions
and will be transmitted along with the employer's
contribution reports. The repayment period is
between 1 and 15 years for loans used exclusively
for the purchase of a primary residence or
between 1 and 5 years for all other loans, at
your option. After 3 monthly payments have been
made, you may repay the outstanding balance of
the loan (subject to the terms of your loan
document). If a loan includes any employee
pre-tax amounts, you will not be permitted to
default on the loan repayment while employed.
Your employer is required to withhold the loan
repayments from your salary.
As you repay the loan, the principal portion,
together with the interest, will be credited to
your account. In this way, you will be paying
interest to yourself. A $50.00 origination fee
and a $40.00 annual administrative fee will be
subtracted from your account. The origination
fee, plus the first year's administrative fee
will be deducted proportionately from your
account at the time of origination. Subsequent
annual administrative fees will be deducted from
your account each year on or about the
anniversary date of the loan origination.
In the event that you leave employment or die
before repaying the loan, the outstanding balance
will be due and, if not paid by the end of the
calendar quarter following the calendar quarter
in which you terminate employment or die, will be
deemed a distribution and subject to the
applicable tax treatment. However, you may elect
upon termination of employment to continue to
repay the loan on a monthly basis directly to
Pentegra Services, Inc.
-9-
PLAN LIMITATIONS
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Plan Limitations Internal Revenue Service ("IRS") requirements
impose certain limitations on the amount of
contributions that may be made to this and other
qualified plans. In general, the annual
"contributions" made to a defined contribution
plan such as this Plan, in respect of any member,
may not exceed the lesser of 100% of the member's
total compensation or $42,000. (This amount may
be subject to periodic adjustment by the IRS at
some time in the future.) For this purpose,
"contributions" include employer contributions,
member 401(k) contributions and member after-tax
contributions. The annual member contributions
allocated to a member's 401(k) account may not
exceed $11,000 (indexed for cost-of-living
adjustments, $14,000 in 2005). Further, if your
employer has another tax-qualified plan in
effect, these limits are subject to additional
restrictions.
Each member and beneficiary assumes the risk in
connection with any decrease in the market value
of his account. The benefit to which you may be
entitled upon your withdrawal of account cannot
be determined in advance.
As a defined contribution plan, the Plan is not
covered by the plan termination insurance
provisions of Title IV of the Employee Retirement
Income Security Act of 1974 ("ERISA"). Therefore,
your benefits are not insured by the Pension
Benefit Guaranty Corporation in the event of a
plan termination.
Except as may otherwise be required by applicable
law or pursuant to the terms of a Qualified
Domestic Relations Order, amounts payable by the
Plan generally may not be assigned, and if any
person entitled to a payment attempts to assign
it, his interest in the amount payable may be
terminated and held for the benefit of that
person or his dependents.
If Pentegra Services, Inc. cannot locate any
person entitled to a payment from the Plan and if
5 years have elapsed from the due date of such
payment, the Plan Administrator may cancel all
payments due him to the extent permitted by law.
Membership in the Plan does not give you the
right to continued employment with your employer
or affect your employer's right to terminate your
employment.
The Plan's qualified status is subject to IRS
approval and any requirements the IRS may impose.
The employer may terminate the Plan at any time.
If the Plan is terminated, there will be no
further contributions to the Plan for your
account.
-10-
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Top Heavy A "top heavy" plan is a plan under which more
Information than 60% of the accrued benefits (account values)
are for key employees. Key employees generally
include officers and shareholders earning more
than $130,000 per year (indexed for cost-of-
living adjustments), 5% owners of the Employer,
and 1% owners of the Employer earning $150,000
per year. If your employer's plan is top heavy
for a particular plan year, you may be entitled
to a minimum employer contribution equal to the
lesser of 3% of your Plan Salary or the greatest
percentage contributed by the employer for any
key employee. This minimum contribution would be
offset by the regular contribution made by your
employer (See "Plan Contributions" section of
this booklet).
In order to receive the minimum contribution for
any plan year, you must be employed on the last
day of the plan year. If your employer also
provides a defined benefit or another defined
contribution plan, your minimum benefit may be
provided under such plan.
Disputed Claims If you disagree with respect to any benefit to
Procedure which you feel you are entitled, you should make
a written claim to the Plan Administrator of
the Plan. If your claim is denied, you will
receive written notice explaining the reason
for the denial within 90 days after the claim is
filed.
The Plan Administrator's decision shall be final
unless you appeal such decision in writing to the
Plan Administrator of the Plan, within 60 days
after receiving the notice of denial. The written
appeal should contain all information you wish to
be considered. The Plan Administrator will review
the claim within 60 days after the appeal is
made. Its decision shall be in writing, shall
include the reason for such decision and shall be
final.
Qualified Domestic A QDRO is a judgment, decree or order which has
Relations Orders been determined by the Plan Administrator, in
(QDRO's) accordance with the procedures established under
the provisions of the Plan, to constitute a QDRO
under the Internal Revenue Code.
To obtain copies of the Plan's QDRO Procedures,
free of charge, please contact the Plan
Administrator. (Please refer to the "Plan
Information" section of this booklet to obtain
the Plan Administrator's address and phone
number).
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MEMBERS RIGHTS
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Statement of As a participant of the Plan, you are entitled
Members Rights to certain rights and protection under ERISA
which provides that all members shall be
entitled to:
o Examine, without charge, at the Plan
Administrator's office or at other
specified locations, all plan documents,
and copies of all documents filed by the
Plan Administrator with the U. S.
Department of Labor such as detailed
annual reports and plan descriptions.
o Obtain copies of all plan documents and
other plan information upon written
request to the Plan Administrator. The
Administrator may make a reasonable
charge for the copies.
o Receive a summary of the Plan's annual
financial report. The Plan Administrator
is required by law to furnish each member
with a copy of such summary.
In addition to creating rights for Plan members,
ERISA imposes duties upon the people who are
responsible for the operation of the Plan. The
people who operate your Plan, called
"fiduciaries", have a duty to do so prudently and
in the interest of you and other plan
participants and beneficiaries. No one may fire
you or otherwise discriminate against you in any
way to prevent you from obtaining a benefit or
exercising your rights under ERISA. If your claim
for a benefit is denied in whole or in part, you
will receive a written explanation of the reason
for the denial. As already explained, you also
have the right to have your claim reconsidered.
Under ERISA, there are steps you can take to
enforce the above rights. For instance, if you
request materials from the Plan Administrator and
do not receive them within 30 days, you may file
suit in a federal court. In such a case, the
court may require the Plan Administrator to
provide the materials and pay you up to $110 a
day until you receive them, unless such materials
were not sent for reasons beyond the
Administrator's control. If you have a claim for
benefits which is denied or ignored, in whole or
in part, you may file suit in a state or federal
court.
In addition, if you disagree with the Plan
Administrator's decision (or lack thereof)
concerning the qualified status of a domestic
relations order subsequent to the 18 month period
described in Section 414(p) of the Code, after
you complied with the remedies prescribed by the
Plan's QDRO procedures and the Disputed Claims
Procedures outlined in the Summary Plan
Description, you may file suit in federal court.
If it should happen that Plan fiduciaries misuse
the Plan's money, or if you are discriminated
against for asserting your rights, you may seek
assistance from the U.S. Department of Labor or,
after you have complied with the Disputed Claims
Procedure outlined in this Summary Plan
Description, you may file suit in a federal
court. The court will decide who should pay court
costs and legal fees. If you are successful, the
court may order the person you have sued to pay
these costs and fees. If you lose, the court may
order you to pay such costs and fees (for
example, if it finds your claim is frivolous).
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MEMBERS RIGHTS
- --------------------------------------------------------------------------------
CONTINUED
If you have any questions about your Plan, you
should contact the Plan Administrator. If you
have any questions about this statement or your
rights under ERISA, you should contact the
nearest Area Office of the U.S. Labor-Management
Services Administration, Department of Labor.
This Statement of ERISA Rights is required by
federal law and regulation.
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PLAN INFORMATION
- --------------------------------------------------------------------------------
Plan Name: American Bank of New Jersey Employees' Savings
and Profit Sharing Plan and Trust
Plan Administrator: Administrative Committee
American Bank of New Jersey
365 Broad Street
Bloomfield, NJ 07003
Phone Number: (973) 748-3600
Employer Identification Number: 22-3284250
Plan Number: 003
Plan Year End: 12/31
Trustee: The Bank of New York
1 Wall Street
New York, NY 10286
Phone: (212) 635-8115
Agent for Service of American Bank of New Jersey
Legal Process:
Administrative Services: Record-keeping services are provided by:
Pentegra Services, Inc.
108 Corporate Park Drive
White Plains, New York 10604
Phone No.: (914) 694-1300 FAX No.: (914) 694-9384
(800) 872-3473 Website: www.pentegra.com
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