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J Page6 "" \ THE CLINTON MILLS, INC. PROFIT-SHARING RETIREMENT PLAN Summary Plan Description—Effective January 1,1985 After December 31, 1980, there were no further contributions to the Profit-Sharing Plan and there were no new members of the Plan. If you were a member of the Plan on December 31, 1980, you became fully vested in your Profit-Sharing account at that time and your account will be paid to you when you retire, leave the company or upon application after reaching age 65. Your Profit-Sharing account will continue to be invested for you in the Profit-Sharing Trust Fund held by M. S. Bailey & Son, Bankers. Starting Jauary 1, 1981, hourly-paid employees became members of the new Clinton Mills, Inc. Retirement Plan; and weekly salaried employees became members of the Clinton Mills, Inc. Pension Plan. You will earn pension benefits for your years of service after you join one of these plans. ** ★★★*★*★★★**★*★****★***★*******★★*★******'**★★*★* * WHO IS A MEMBER OF THE PLAN? There are no new members of the Profit-Sharing Plan after December 31, 1980. Previously, weekly-paid employees joined the Plan on the January 1st or July 1st (whichever came sooner) after completing a "qualifying year of service.” A qualifying year of service was your first year of employment with the company or any calendar year thereafter during which you completed 1,000 hours of service. HOW MUCH DID THE COMPANY CONTRIBUTE? The Profit-Sharing Plan was of a type known as a “defined contribution” plan. Each year through 1980, when the company-s profits were determined, the Board of Directors of Clinton Mills, Inc. determined what percentage of these profits would be paid into the Profit-Sharing Plan. There are no further contributions to the Profit-Sharing Plan after December 31, 1980. HOW WAS MY SHARE OF THE COMPANY’S CONTRIBUTION FIGURED? Your share of the company’s contribution to the Plan each year was based on the relationship of your total wages for the calendar year to the wages of all the other Plan members. HOW IS THE MONEY INVESTED? The Profit-Sharing Trust Fund is invested in different kinds of securities. The money is put into stocks, bonds, guaranteed income contracts and other investments which the trustee (M. S. Bailey & Son, Bankers) believes will increase the size of the fund. WHAT HAPPENS TO THE EARNINGS OF THE FUND? All money earned by the fund, such as interest, dividends and growth in the value of securities held, stays in the fund and is divided proportionately among the Plan members on each December 31st. By the same token, any losses incurred will also be divided proportionately among Plan members on each December 31st. This allocation is made on the “proportion” that an individual member’s account balance bears to the total of the account balances of all members. HOW WILL I KNOW THE VALUE OF MY ACCOUNT? Within three months after the end of each calendar year, you will receive a statement showing the total value of your account as of the end of the year. The total value includes any investment income, gains or losses. WHEN MAY I RETIRE? HOW SOON WILL MY BENEFITS BEGIN AFTER I RETIRE? •Normal Retirement Your Normal Retirement Date is your 65th birthday. Your account balance will be distributed to you within 60 days after the end of the calendar year in which you retire, unless you elect a later commencement date. •Early Retirement If you are between 55 and 65 years old with at least 25 years of Continuous Service and you want to retire before age 65, you may request early retirement. Your account balance will be distributed to you within 60 days after the end of the calendar year in which you retire, unless you elect a later commencement date. •Late Retirement You may continue to work after your Normal Retirement Date. If you decide to continue working for your employer, you may elect to receive your account balance at your Normal Retirement Date. Your account balance will be distributed to you within 60 days after the end of the calendar year in which you make the written election. You may also elect a later commencement date. •Disability Retirement If you are a participant in the Plan and become "totally and permanently disabled” before your Normal Retirement Date, you may apply for disability retirement. Your account balance will be distributed to you as soon as possible after your disability. If you choose to leave your account balance in the Plan when you retire (except in the case of disability retirement), the distribution of your account must begin before the April 1 of the Plan Year following the Plan Year in which you reach age 70 1/ 2. HOW IS MY PROFIT-SHARING ACCOUNT PAID TO ME WHEN I RETIRE? When you are eligible for a payment from the Plan because of retirement or disability, your share of the Plan will be paid to you in a lump sum or by annual or more frequent installments in multiples of $10. The distribution of your account may be paid over a period which does not exceed your life expectancy or the life expectancy of you and your beneficiary. WHAT IF I LEAVE BEFORE I RETIRE? If you leave your employer before you retire, you will be entitled to the total amount in your Profit-Sharing account. Your account balance will be distributed to you within 60 days after the date you choose. If you leave the compny and the value of your account is less than $3,500, you will receive your benefit in a single lump sum. If your account balance is greater than $3,500, you may leave your benefit in the trust fund until April 1 following the year in which you reach age 70 1/2. WHAT IF I DIE? In the event of your death, your share of the Plan will be paid in a lump sum to the beneficiary you have named, or if you make a written request before your death, in a designated number of installments. If your beneficiary is someone other than your spouse, your entire account balance must be paid within five years after your death.