Historical Newspapers of South Carolina

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J Page? \ WILL I HAVE TO PAY TAXES ON THE MONEY I GET FROM THE PLAN? Under present tax laws, you will not have to pay taxes on the company’s contributions or on the earnings on your account until the money is actually paid to you. The manner in which you will be taxed will depend on the status of the law at that time and on the manner in which your payments are made to you. Since tax laws change from time to time, you should consult your tax advisor regarding the effect of a distribution of your account. CAN I LOSE ANY BENEFITS FROM MY PLAN? As of December 31, 1980, you are 100% vested in your Profit-Sharing account balance. However, if the value of the fund investments decreases, the value of your account would decrease also. HOW DO I FILE A CLAIM FOR BENEFITS UNDER MY PROFIT-SHARING PLAN? When you want to file a claim for benefits under your Profit-Sharing Retirement Plan, contact your Personnel Manager or the Plan Administrator. They will supply you with all the necessary forms to be filed. IF MY CLAIM IS DENIED, HOW DO I FILE AN APPEAL? , If you make a claim for benefits under the Plan, and ail or part of it is denied, the Profit-Sharing Committee will notify you of their action and reasons with specific reference to the Plan provisions which apply. They will also tell you how you can appeal their decision. You may also file an appeal if you do not get a response from the Committee within 90 days after you sent your initial claim. The appeal process is stated below for your information. 1. Within 60 days of receiving the Committee’s determination letter, you may send a certified or registered letter to the Profit-Sharing Committee indicating your reasons for appeal and any additional information to support your claim for benefits. 2. If the Committee, after reviewing this information, still determines you are not entitled to the benefits you claim, they will give you or your representative an opportunity to appear personally before the Committee to give further written or oral support of your claim and to review any pertinent documents. 3. Within 60 days of your appearance, the Committee will notify you by certified letter of its final decision and the specified reason for its decision. HOW IS MY PLAN ADMINISTERED? The Profit-Sharing Committee administers the Plan and acts as the Plan fiduciary. The Board of Directors of Clinton Mills, Inc. will choose from three to seven Committee members to act for the company in administering the Plan. The Profit-Sharing Committee will have authority to make the rules and regulations necessary for the day-to-day operation of the Plan. The Plan Administrator is responsible for the day-to-day administration of the Plan. The employers pay the legal fees with respect to the Plan and reimburse the Profit-Sharing Committee for out-of-pocket expenses necessary to perform their duties. All other expenses of administering the Plan are paid out of the trust fund, unless paid by the employer. IS THERE ANYTHING ELSE I SHOULD KNOW ABOUT THE PUN? •Continuance of the Plan As of December 31,1980, the Plan was discontinued and all Plan members became fully vested in their accounts. On and after January 1, 1981, the trustee has continued to hold the assets of the Plan and distribute them at retirement, disability, death, or other termination of employment in accordance with the terms of the Plan as explained above. Benefits are available for employees upon application after reaching age 65. You should also understand that your Profit-Sharing Plan is not the type of plan that is insured by the Pension Benefit Guaranty Corporation and, therefore, it is not covered by any of the plan termination insurance provisions of the Pension Benefit Guaranty Corporation. •Beneficiary When you joined the Plan, you were asked to designate one or more beneficiaries to receive your share of the Plan in the event of your death. You may change the beneficiary from time to time, and you may also choose to have the money paid to that beneficiary as either a lump sum or in a designated number of installments, not to xceed 10. If you are married, your beneficiary is your spouse unless you designate another beneficiary and your spouse consents. •Non-assignability of Benefits, Qualified Domestic Relations Order The money in the trust fund is used exclusively to provide benefits to you and your survivors while the Plan continues It cannot be used for any other purpose. This applies both to the employer and to you, because you cannot assign, transfer or attach your benefits nor use them as collateral for a loan. However, recently-passed laws affecting employee benefits require plans such as this one to obey court orders (such as divorce decrees) that require a percentage of your benefits to be paid to your spouse, former spouse, child or dependent, (f such an order is a “Qualified Domestic Relations Order’’ from a court, any such payments will not violate this rule. In order to be “qualified,” the court order has to meet certain standards. If you are eligible for early retirement, these new laws also authorize the payment of such court-ordered benefits to begin while you’re still working. The amount of any such payments will be based on your account balance on the date they are to begin. These payments can exhadst your entire interest in the Plan, including future benefits. You also may have taxable income as a result. You should understand that the Plan has no discretion in these matters. The Plan must obey the order of the court. The Plan will make every effort to notify you as soon as it becomes award of any attempt to subject your benefits to a court order. Ifyou would like to have more detailed information on this subject, please contact the Profit-Sharing Committee. •Lump Sum Payouts If you leave the company and the value of your account is less than $3,500, you will receive your benefit in a single lump sum. If the full value of your account is more than $3,500, your payment options will be explained to you. The explanation will include your right to postpone receiving your benefit until a later date, the possible tax consequences if you take a cash payout as compared to another method of payment, and any possible tax advantages of deferring receipt of your benefit. •Notice of Forfeitability or Rollover When you become eligible for a payout from the Plan (termination, retirement, disability or age 65), you will be given an explanation of: