HomeMy WebLinkAbout2025 08 25 Consent 301 - Resoultion 2025-12 Defined Benefit Plan RestatementCONSENT AGENDA ITEM 301
CITY COMMISSION AGENDA | AUGUST 25, 2025 REGULAR MEETING
TITLE
Resolution 2025-12 Defined Benefit Plan Restatement
SUMMARY
As a result of findings by the City’s independent auditor, Purvis Gray, during the
FY22/23 and FY23/24 Annual Comprehensive Financial Reports, City staff worked with
the defined benefit plan actuary (GRS) and the City's pension attorney to address
conflicting plan language that was on file with GRS.
During their audit, Purvis Gray found that census data testing revealed eligibility
discrepancies: 2 of 5 active pension plan members and all 5 of 5 new hires tested did
not meet the required service period before being enrolled in the pension plan.
The eligibility criteria in the plan on file with GRS stated that employees must complete
six months of service prior to plan enrollment.
After researching the matter in coordination with GRS, the pension attorney, and the
City Clerk’s office, City staff discovered that a plan amendment intended to be included
in Resolution 2017-10 which was approved on consent item 301 on November 17,
2017, was not attached to the agenda item and subsequently submitted to GRS. As a
result, employees hired after that date were enrolled in the plan on the first of the
month following 30 days of employment—rather than after the six-month service
period required by the plan on file with GRS.
The attached plan amendment reflects the changes that were intended to be included
in the November 17, 2017 plan restatement.
Based upon review the review by GRS, the Plan restatement amends the Plan to
comply with the current operation of the Plan by clarifying the following:
Effective December 1, 2017, eligibility for participation is first of the month
following 30 days of service for Police Officers and Forensic Professionals
working 32 or more hours per week.
Permissive service purchases must be fully paid prior to termination of
employment.
Required member contributions shall be credited with interest based on 3 year
Treasury rates.
64
In the opinion of GRS, based upon the actuarial assumptions and methods
employed in the October 1, 2024 Actuarial Valuation, this plan restatement
results in no actuarial cost under State minimum funding requirements.
These Plan modifications do not negatively affect current or future employees
and have no impact on participants that are currently drawing pension benefits
( current retirees).
FUNDING SOURCE
RECOMMENDATION
City Staff is recommending the Commission approve resolution 2025-12 amending
plan language of the City's Defined Benefit Pension Plan.
65
Resolution No. 2025-12
City of Winter Springs
Page 1 of 2
RESOLUTION NO. 2025 - 12
A RESOLUTION OF THE CITY COMMISSION OF WINTER
SPRINGS, FLORIDA AMENDING AND RESTATING THE DEFINED
BENEFIT PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF
WINTER SPRINGS; PROVIDING FOR REPEAL OF PRIOR
INCONSISTENT RESOLUTIONS; SEVERABILITY; AND AN EFFECTIVE
DATE
WHEREAS, the City Commission of the City of Winter Springs has determined that
certain changes to the City's Defined Benefit Plan and Trust are in the best interest of the City,
its employees and taxpayers;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF WINTER SPRINGS, FLORIDA:
Section 1. Recitals The following recitals are true and correct and hereby fully incorporated
herein by this reference as part of this Resolution.
Section 2. Amending and Restating the Defined Benefit Plan. The City Commission of the
City of Winter Springs hereby amends and restates the City of Winter Springs Retirement
Plan (attached hereto as Exhibit "A"). This Retirement Plan restates and supersedes the
Defined Benefit Plan and Trust for Employees of the City of Winter Springs as adopted on
March 23, 1998, restated on November 10, 2003 and again on November 13, 2017, as
amended.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions adopted
by the City Commission, or parts of resolutions in conflict herewith, are hereby repealed to the
extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or provision of
this resolution is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be
deemed a separate, distinct, and independent provision, and such holding shall not affect the
validity of the remaining portions of this resolution.
Section 5. Effective Date. This Resolution shall take effect upon adoption by the City
Commission.
RESOLVED by the City Commission of the City of Winter Springs, Florida in a regular
Commission meeting assembled on the _____ day of _______________, 2025.
[SIGNATURE PAGE TO FOLLOW]
66
Resolution No. 2025-12
City of Winter Springs
Page 2 of 2
_________________________________
Kevin McCann
Mayor, City of Winter Springs
ATTEST:
______________________________
Christian D. Gowan, MPA, CMC
City Clerk
Approved as to legal form and sufficiency
For the City of Winter Springs only:
______________________________
Anthony A. Garganese
City Attorney
67
June 23, 2025
Mr. Brian Dunigan
Director of Administrative Services and Operations
City of Winter Springs
1126 East State Road 434
Winter Springs, Florida 32708
Re: City of Winter Springs Retirement Plan
Plan Restatement – Actuarial Impact Statement
Dear Brian:
As requested, we have performed an actuarial review of the attached Plan restatement for the
City of Winter Springs Retirement Plan (Plan).
Based upon our review, the Plan restatement amends the Plan to comply with the current
operation of the Plan by clarifying the following:
effective December 1, 2017, eligibility for participation is first of the month following 30
days of service for Police Officers and Forensic Professionals working 32 or more hours
per week
permissive service purchases must be fully paid prior to termination of employment
required member contributions shall be credited with interest based on 3‐year Treasury
rates
In our opinion, based upon the actuarial assumptions and methods employed in the October 1,
2024 Actuarial Valuation, the Plan restatement results in no actuarial cost under State minimum
funding requirements.
Please forward a copy of the Resolution upon passage to update our records.
We are available to respond to any questions concerning the above.
Sincerely,
Gabriel, Roeder, Smith & Company
Shelly L. Jones, A.S.A.
Consultant and Actuary
Enclosure
cc: Ms. Holly Queen
68
&,7<2):,17(5635,1*65(7,5(0(173/$1
7KH&LW\RI:LQWHU6SULQJVKHUHE\HVWDEOLVKHVWKLV5HWLUHPHQW3ODQIRU&LW\HPSOR\HHVWR
EHNQRZQDVWKH&LW\RI:LQWHU6SULQJV5HWLUHPHQW3ODQ7KLV5HWLUHPHQW3ODQUHVWDWHVDQG
VXSHUVHGHVWKH'HILQHG%HQHILW3ODQDQG7UXVWIRU(PSOR\HHVRIWKH&LW\RI:LQWHU6SULQJVDV
DGRSWHG RQ 0DUFK UHVWDWHG RQ 1RYHPEHU DQG VXEVHTXHQWO\ UHVWDWHG RQ
7KLV5HWLUHPHQW3ODQVKDOOWDNHHIIHFWXSRQDGRSWLRQE\WKH&LW\&RPPLVVLRQ
$UWLFOH'HILQLWLRQV
7KHIROORZLQJGHILQLWLRQVVKDOODSSO\WKURXJKRXWWKLV5HWLUHPHQW3ODQXQOHVVDGLIIHUHQW
PHDQLQJLVSURYLGHGLQDVSHFLILFVHFWLRQRULVFOHDUO\UHTXLUHGE\FRQWH[W
Actuarial EquivalentPHDQVDEHQHILWRIHTXDOYDOXHFRPSXWHGXVLQJWKH *URXS
$QQXLW\0RUWDOLW\7DEOH0DOH5DWHV6HW%DFN7ZR<HDUVIRU)HPDOHVDQGDQLQWHUHVW
UDWHRIHLJKWSHUFHQW SHUDQQXP(IIHFWLYH-XQHPHDQVDEHQHILWRIHTXDO
YDOXHFRPSXWHGXVLQJWKH53&RPELQHG+HDOWK\0RUWDOLW\7DEOHSURMHFWHGWRWKH
ILVFDO\HDUWKDWLQFOXGHVWKHEHQHILWFRPPHQFHPHQWGDWHZLWK6FDOH%%EDVHGXSRQDIL[HG
EOHQGRIPDOHPRUWDOLW\UDWHVIHPDOHPRUWDOLW\UDWHVDQGDQLQWHUHVWUDWHRIVHYHQ
SHUFHQW SHUDQQXP
Accrued Benefit PHDQV D 0HPEHU¶V EHQHILW FDOFXODWHG DV RI DQ\ GDWH GHWHUPLQHGLQ
DFFRUGDQFHZLWKWKHWHUPVRIWKH3ODQEDVHGRQWKH0HPEHU¶VFUHGLWHGVHUYLFHDQGDYHUDJH
ILQDOFRPSHQVDWLRQDVRIVXFKGDWH
Average Final CompensationPHDQVWKHDYHUDJHRIWKH0HPEHU¶V&RPSHQVDWLRQIRUWKH
FRQVHFXWLYHSODQ\HDUV RUWKHHQWLUHSHULRGRIHPSOR\PHQWLIVKRUWHU RIWKH0HPEHU¶V
HQWLUH SHULRG RI HPSOR\PHQW ZLWK WKH &LW\ ZKLFK UHVXOWV LQ WKHKLJKHVW $YHUDJH
&RPSHQVDWLRQ(IIHFWLYH2FWREHU$YHUDJH&RPSHQVDWLRQVKDOOEHWKHDYHUDJHRI
WKHKLJKHVWILYH FRQVHFXWLYHSODQ\HDUVRI&RPSHQVDWLRQRXWRIWKHWHQ SODQ\HDUV
LPPHGLDWHO\ SUHFHGLQJ WHUPLQDWLRQ RI HPSOR\PHQW 1RWZLWKVWDQGLQJ WKH DERYH D
0HPEHU¶V$YHUDJH&RPSHQVDWLRQVKDOOQRWEHOHVVWKDQKLVRUKHU$YHUDJH&RPSHQVDWLRQ
DVRI6HSWHPEHU
BoardRUBoard of TrusteesPHDQVWKH%RDUGRI7UXVWHHVGHVFULEHGLQ&KDSWHU$UWLFOH
,,,6HFRIWKH&LW\RI:LQWHU6SULQJV&RGHRI2UGLQDQFHV
BeneficiaryPHDQVWKHSHUVRQRUSHUVRQVGHVLJQDWHGLQZULWLQJE\WKH0HPEHUDQGILOHG
ZLWKWKH%RDUGHQWLWOHGWRUHFHLYHEHQHILWVIURPWKH3ODQXSRQWKHGHDWKRID0HPEHU,I
QRVXFKGHVLJQDWLRQLVLQHIIHFWRULIQRSHUVRQVRGHVLJQDWHGLVOLYLQJDWWKHWLPHRIGHDWK
RIWKH0HPEHUWKHEHQHILFLDU\VKDOOEHWKHHVWDWHRIWKH0HPEHU
CityRUemployerPHDQVWKH&LW\RI:LQWHU6SULQJV)ORULGD
CodePHDQVWKH,QWHUQDO5HYHQXH&RGHRI DVDPHQGHG
CompensationIRUVHUYLFHHDUQHGSULRUWR2FWREHUPHDQVZDJHVVDODU\RYHUWLPH
DQG RWKHU DPRXQWV UHFHLYHG IRU SHUVRQDO VHUYLFHV DFWXDOO\ UHQGHUHG LQ WKH FRXUVH RI
HPSOR\PHQWZLWKWKH&LW\EXWRQO\WRWKHH[WHQWLQFOXGHGLQJURVVLQFRPH(IIHFWLYH
2FWREHUFRPSHQVDWLRQPHDQVEDVHVDODU\ ZKLFKLQFOXGHVWKHPD[LPXPVDODU\
LQFHQWLYHIRUSROLFHRIILFHUV LQFOXGLQJRYHUWLPHSD\XSWRRQHKXQGUHGILIW\ KRXUV
69
^ `
LQDSODQ\HDUDQGH[FOXGLQJDOORWKHUIRUPVRIFRPSHQVDWLRQ&RPSHQVDWLRQLQFOXGHV
SD\PHQWIRUDFFUXHGYDFDWLRQOHDYHHDUQHGSULRUWR-XO\&RPSHQVDWLRQVKDOO
LQFOXGHHOHFWLYHFRQWULEXWLRQVIRUDOO3ODQ<HDUV
D )RUWKHSXUSRVHRIWKLVGHILQLWLRQRYHUWLPHSD\PHDQV SD\IRUKRXUVLQH[FHVVRI
KRXUVLQDWZRZHHNZRUNSHULRGIRUJHQHUDOHPSOR\HHV KRXUVLQH[FHVVRI
KRXUVLQDWZRZHHNZRUNSHULRGIRUSROLFHRIILFHUV DQGKRXUVLQH[FHVVRIKRXUV
LQDRQHZHHNZRUNSHULRGIRUILUHILJKWHUV
E (OHFWLYH&RQWULEXWLRQV(OHFWLYHFRQWULEXWLRQVDUHDPRXQWVH[FOXGLEOHIURPWKH
(PSOR\HH
VJURVVLQFRPHXQGHU&RGH H K RU E DQG
FRQWULEXWHGE\WKH&LW\DWWKH(PSOR\HH
VHOHFWLRQWRD&RGH N DUUDQJHPHQW
D6LPSOLILHG(PSOR\HH3HQVLRQFDIHWHULDSODQRUWD[VKHOWHUHGDQQXLW\(OHFWLYH
FRQWULEXWLRQVDOVRLQFOXGH &RPSHQVDWLRQGHIHUUHGXQGHUD&RGHSODQ
PDLQWDLQHGE\WKH&LW\ DQG (PSOR\HHFRQWULEXWLRQVSLFNHGXSE\WKH&LW\
DQGSXUVXDQWWR&RGH K WUHDWHGDV&LW\FRQWULEXWLRQV
F %HJLQQLQJ-DQXDU\ WRWKHH[WHQWUHTXLUHGE\VHFWLRQ X RIWKH
IHGHUDOLQWHUQDOUHYHQXHFRGHDQLQGLYLGXDOUHFHLYLQJGLIIHUHQWLDOZDJHSD\PHQWV
DVGHILQHGXQGHUVHFWLRQ K RIWKHIHGHUDOLQWHUQDOUHYHQXHFRGHIURPDQ
HPSOR\HUVKDOOEHWUHDWHGDVHPSOR\HGE\WKHHPSOR\HUDQGWKHGLIIHUHQWLDOZDJH
SD\PHQWVKDOOEHWUHDWHGDVFRPSHQVDWLRQIRUSXUSRVHVRIDSSO\LQJWKHOLPLWVRQ
DQQXDODGGLWLRQVXQGHUVHFWLRQ F RIWKHIHGHUDOLQWHUQDOUHYHQXHFRGH7KLV
SURYLVLRQVKDOO EHDSSOLHG WR DOO VLPLODUO\ VLWXDWHG LQGLYLGXDOV LQ D UHDVRQDEO\
HTXLYDOHQWPDQQHU
Credited Service PHDQV WKH WRWDO QXPEHU RI \HDUV DQG IUDFWLRQV WKHUHRI RI &LW\
HPSOR\PHQWGXULQJZKLFKD0HPEHUPHHWVWKHSDUWLFLSDWLRQUHTXLUHPHQWVRI$UWLFOH
ZRUNVDWOHDVWKRXUVSHU\HDUDQGPDNHVWKHUHTXLUHG0HPEHUFRQWULEXWLRQVWRWKH
3ODQ&UHGLWHGVHUYLFHDOVRLQFOXGHVDOO\HDUVRIVHUYLFHFUHGLWHGXQGHUWKHSUHGHFHVVRU
SODQDQGDQ\VHUYLFHSXUFKDVHGSXUVXDQWWR$UWLFOHRIWKLV3ODQRU6HFWLRQ % RIWKH
3UHGHFHVVRU3ODQ
$0HPEHUPD\DOVRSXUFKDVHXSWRILYH\HDUVRISHUPLVVLYHVHUYLFHFUHGLWLQLQFUHPHQWV
RIPRQWKVWREHXVHGRQO\IRUWKHSXUSRVHRIGHWHUPLQLQJWKHDPRXQWRIWKH0HPEHU¶V
EHQHILW3HUPLVVLYHVHUYLFHFUHGLWSXUFKDVHGXQGHUWKLVSDUDJUDSKPD\QRWEHFRXQWHG
WRZDUGVYHVWLQJ7KHIXOODFWXDULDOFRVWLQFOXGLQJDGPLQLVWUDWLYHFRVWVIRUDOOVHUYLFH
UHTXHVWHGXQGHUWKLVSDUDJUDSKPXVWEHSDLGEHIRUHDQ\SRUWLRQRIWKHVHUYLFHLVFUHGLWHGWR
WKH0HPEHU7KHIXOOFRVWRISHUPLVVLYHVHUYLFHFUHGLWPXVWEHSDLGSULRUWRWHUPLQDWLRQRI
(PSOR\PHQWZLWKWKH&LW\,ID0HPEHUIDLOVWRSD\WKHIXOOFRVWRIUHTXHVWHGVHUYLFHRQ
RUEHIRUHWKHGDWHSURYLGHGLQWKLVSDUDJUDSKWKHUHTXHVWHGVHUYLFHZLOOQRWEHFUHGLWHGDQG
DQ\IXQGVSDLGWRZDUGVVXFKVHUYLFHZLOOEHUHIXQGHGZLWKRXWLQWHUHVW
$0HPEHUVKDOOUHFHLYHFUHGLWHGVHUYLFHIRUDOOSXUSRVHVLQFOXGLQJYHVWLQJIRUWKH\HDUVRU
IUDFWLRQDO SDUWV RI \HDUV WKDW KH RU VKH SHUIRUPV ³4XDOLILHG 0LOLWDU\ 6HUYLFH´ LQFOXGLQJ
YROXQWDU\RULQYROXQWDU\VHUYLFHLQWKHDUPHGIRUFHVRIWKH8QLWHG6WDWHVDVGHILQHGLQWKH
8QLIRUPHG6HUYLFHV(PSOR\PHQWDQG5HHPSOR\PHQW5LJKWV$FW 86(55$ 3/
DIWHUVHSDUDWLRQIURPHPSOR\PHQWZLWKWKH&LW\WRSHUIRUPWUDLQLQJRUVHUYLFHSURYLGHGWKDW
70
^ `
D 7KH(PSOR\HHPXVWUHWXUQWRKLVHPSOR\PHQWZLWKWKH&LW\ZLWKLQRQH \HDU
IROORZLQJWKHGDWHRIPLOLWDU\GLVFKDUJHRUKLVUHOHDVHIURPDFWLYHVHUYLFH
E 7KH(PSOR\HHLVHQWLWOHGWRUHHPSOR\PHQWXQGHUWKHSURYLVLRQVRI86(55$
F 7KH(PSOR\HHSD\VWRWKH3ODQWKHDPRXQWKHZRXOGKDYHFRQWULEXWHGWRWKH3ODQDV
SLFNXSFRQWULEXWLRQVLIKLVHPSOR\PHQWZRXOGKDYHFRQWLQXHGGXULQJWKHSHULRGKH
ZDVDEVHQWGXHWR4XDOLILHG0LOLWDU\6HUYLFH6XFKSD\PHQWPXVWEHPDGHE\WKH
HDUOLHURIDSHULRGHTXDOWRWKUHH WLPHVWKHSHULRGRIDEVHQFHRUILYH \HDUV
G 7KHPD[LPXPFUHGLWIRUPLOLWDU\VHUYLFHSXUVXDQWWRWKLVSDUDJUDSKVKDOOEHILYH
\HDUV
H 7KLV6HFWLRQLVLQWHQGHGWRVDWLVI\WKHPLQLPXPUHTXLUHPHQWVRI86(55$DVPD\EH
DPHQGHG IURP WLPHWRWLPH 7RWKHH[WHQWWKDWWKLV 6HFWLRQ GRHV QRW PHHW WKH
PLQLPXPUHTXLUHPHQWVRI86(55$WKHSURYLVLRQVRI86(55$VKDOOJRYHUQ
,IDQ(PSOR\HHGLHVRQRUDIWHU-DQXDU\ZKLOHSHUIRUPLQJ4XDOLILHG0LOLWDU\6HUYLFH
DVGHILQHGE\86(55$WKH(PSOR\HH¶VEHQHILFLDULHVVKDOOEHHQWLWOHGWRDQ\EHQHILWVWKH(PSOR\HH
ZRXOGKDYHEHHQHQWLWOHGWRKDGKHRUVKHUHVXPHGHPSOR\PHQWDQGWKHQGLHGZKLOHHPSOR\HG
DisabilityPHDQVDSK\VLFDORUPHQWDOFRQGLWLRQRID0HPEHUSHUPLWWLQJVXFK0HPEHUWR
EHHOLJLEOHIRUGLVDELOLW\EHQHILWVXQGHUWKH(PSOR\HU
VORQJWHUPGLVDELOLW\SURJUDP
Early Retirement DatePHDQVWKHILUVWGD\RIDQ\PRQWKRQRUDIWHUD0HPEHUDWWDLQV
<HDUVRI6HUYLFHIRU0HPEHUVDVRI6HSWHPEHURUDWWDLQV<HDUVLI6HUYLFHIRU
0HPEHUVKLUHGDIWHU6HSWHPEHUDQGKDVDWWDLQHGDJH RUD0HPEHUDWWDLQV
<HDUVRI6HUYLFHLUUHVSHFWLYHRIDJH
Employee PHDQVDQ\(PSOR\HHRIWKH&LW\RWKHUWKDQH[FOXGHGHPSOR\HHVDVGHVFULEHG
LQ$UWLFOH,QGLYLGXDOVZKRSHUIRUPVHUYLFHVIRUWKH&LW\LQDQ\FDSDFLW\RWKHUWKDQDV
DQ(PSOR\HHGHWHUPLQHGSXUVXDQWWRWKHERRNVDQGUHFRUGVRIWKH&LW\ HJLQGHSHQGHQW
FRQWUDFWRUVRUOHDVHGHPSOR\HHVZLWKLQWKHPHDQLQJRI&RGHVHFWLRQ Q HYHQLIVXFK
LQGLYLGXDOVDUHUHFODVVLILHGDVHPSOR\HHVE\DQ\JRYHUQPHQWDODJHQF\RWKHUWKDQWKH&LW\
RUE\MXGLFLDOGHFLVLRQ DUHQRW(PSOR\HHVIRUSXUSRVHVRIWKH3ODQDQGWKXVDUHQRW
HOLJLEOHWRSDUWLFLSDWHLQWKH3ODQ1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQRIWKLV3ODQ
LQGLYLGXDOVZKRDUHHPSOR\HGE\WKH&LW\SXUVXDQWWRDQHPSOR\PHQWFRQWUDFWVKDOOQRWEH
HOLJLEOHWRSDUWLFLSDWHLQWKH3ODQXQOHVVWKHLUHPSOR\PHQWFRQWUDFWH[SUHVVO\SURYLGHVIRU
VXFKSDUWLFLSDWLRQ
FirefighterPHDQVDIRUPHU(PSOR\HHZKRZDVHPSOR\HGVROHO\E\WKHILUHGHSDUWPHQWRI
WKH&LW\RI:LQWHU6SULQJVZKRLVFHUWLILHGDVDILUHILJKWHUDVDFRQGLWLRQRIHPSOR\PHQW
DQGZKRVHGXW\LWLVWRH[WLQJXLVKILUHVWRSURWHFWOLIHRUWRSURWHFWSURSHUW\$)LUHILJKWHU
LQFOXGHVDOOFHUWLILHGVXSHUYLVRU\DQGFRPPDQGSHUVRQQHOZKRVHGXWLHVLQFOXGHLQZKROH
RULQSDUWWKHVXSHUYLVLRQWUDLQLQJJXLGDQFHDQGPDQDJHPHQWUHVSRQVLELOLWLHVRIIXOOWLPH
ILUHILJKWHUVSDUWWLPHILUHILJKWHUVRUDX[LOLDU\ILUHILJKWHUV$SDUWLFLSDWLQJ)LUHILJKWHULVD
IRUPHU&LW\)LUHILJKWHUFRYHUHGXQGHUWKH$JUHHPHQWEHWZHHQWKH&LW\RI:LQWHU6SULQJV
DQG6HPLQROH&RXQW\IRU)LUHDQG(PHUJHQF\0HGLFDO6HUYLFHVZKRHOHFWHGWRFRQWLQXH
SDUWLFLSDWLQJLQWKH'HILQHG%HQHILW3ODQDQG7UXVWIRU(PSOR\HHVRIWKH&LW\RI:LQWHU
6SULQJV
FundPHDQVWKHUHWLUHPHQWIXQGHVWDEOLVKHGSXUVXDQWWRWKLV3ODQ
71
^ `
Forensic professionalPHDQVDQ(PSOR\HHZKRVSHQGVDWOHDVWSHUFHQWRIKLVRUKHUWLPH
SHUIRUPLQJGXWLHVWKDWLQYROYHWKHFROOHFWLRQH[DPLQDWLRQSUHVHUYDWLRQGRFXPHQWDWLRQ
SUHSDUDWLRQRUDQDO\VLVRIKXPDQWLVVXHVRUIOXLGVRUSK\VLFDOHYLGHQFHKDYLQJSRWHQWLDO
ELRORJLFDOFKHPLFDORUUDGLRORJLFDOKD]DUGRUFRQWDPLQDWLRQRUXVHFKHPLFDOVSURFHVVHV
RUPDWHULDOVWKDWPD\KDYHFDUFLQRJHQLFRUKHDOWKGDPDJLQJSURSHUWLHVLQWKHDQDO\VLVRI
VXFKHYLGHQFH
General EmployeePHDQVDQ(PSOR\HHZKRLVQRWDVZRUQSROLFHRIILFHUILUHILJKWHURU
IRUHQVLFSURIHVVLRQDO
MemberPHDQVDOO(PSOR\HHVZKRSDUWLFLSDWHLQWKLV3ODQYHVWHGWHUPLQDWHGPHPEHUV
DQGUHWLUHHV
Normal Retirement DatePHDQVWKHILUVWGD\RIDQ\PRQWKRQRUDIWHUWKHHDUOLHURIWKHGDWH
D0HPEHUDWWDLQVDJHVL[W\ILYH
PlanPHDQV7KH&LW\RI:LQWHU6SULQJV5HWLUHPHQW3ODQDVUHVWDWHGRQ1RYHPEHU
DQGVXEVHTXHQWO\UHVWDWHGRQ
Plan AdministratorLVWKH(PSOR\HUXQOHVVWKH(PSOR\HUGHVLJQDWHVDQRWKHUSHUVRQWRKROG
WKHSRVLWLRQRI3ODQ$GPLQLVWUDWRU,QDGGLWLRQWRKLVRWKHUGXWLHVWKH3ODQ$GPLQLVWUDWRU
KDVIXOOUHVSRQVLELOLW\IRUFRPSOLDQFHZLWKDQ\UHSRUWLQJDQGGLVFORVXUHUXOHVDSSOLFDEOHWR
WKH3ODQ
Plan YearPHDQVWKHILVFDO\HDURIWKH3ODQDFRQVHFXWLYHPRQWKSHULRGHQGLQJHYHU\
6HSWHPEHU
Police OfficerPHDQVDQ\SHUVRQZKRLVHOHFWHGDSSRLQWHGRUHPSOR\HGIXOOWLPHE\WKH
&LW\RI:LQWHU6SULQJVZKRLVFHUWLILHGRUUHTXLUHGWREHFHUWLILHGDVDODZHQIRUFHPHQW
RIILFHULQFRPSOLDQFHZLWKV ZKRLVYHVWHGZLWKDXWKRULW\WREHDUDUPVDQGPDNH
DUUHVWVDQGZKRVHSULPDU\UHVSRQVLELOLW\LVWKHSUHYHQWLRQDQGGHWHFWLRQRIFULPHRUWKH
HQIRUFHPHQWRIWKHSHQDOFULPLQDOWUDIILFRUKLJKZD\ODZVRIWKHVWDWH7KLVGHILQLWLRQ
LQFOXGHVDOOFHUWLILHGVXSHUYLVRU\DQGFRPPDQGSHUVRQQHOZKRVHGXWLHVLQFOXGHLQZKROH
RULQSDUWWKHVXSHUYLVLRQWUDLQLQJJXLGDQFHDQGPDQDJHPHQWUHVSRQVLELOLWLHVRIIXOOWLPH
ODZHQIRUFHPHQWRIILFHUVSDUWWLPHODZHQIRUFHPHQWRIILFHUVRUDX[LOLDU\ODZHQIRUFHPHQW
RIILFHUV EXW GRHV QRW LQFOXGH SDUWWLPH ODZ HQIRUFHPHQW RIILFHUV RU DX[LOLDU\ ODZ
HQIRUFHPHQWRIILFHUVDVWKHVDPHDUHGHILQHGLQV DQG UHVSHFWLYHO\
Predecessor PlanPHDQVWKH'HILQHG%HQHILW3ODQDQG7UXVWIRU(PSOR\HHVIRUWKH&LW\RI
:LQWHU6SULQJVDGRSWHGE\WKH&LW\RQ0DUFK DVVXEVHTXHQWO\DPHQGHG
Present valuePHDQVWKHVLQJOHVXP$FWXDULDO(TXLYDOHQWRIWKH0HPEHU
V$FFUXHG%HQHILW
RetireePHDQVDQ\0HPEHUZKRUHFHLYHVEHQHILWVXQGHUWKHSURYLVLRQVRIWKLV3ODQ
RetirementRUretirePHDQVD0HPEHU
VVHSDUDWLRQIURPFLW\HPSOR\PHQWZLWKHOLJLELOLW\
IRUDQGDFWXDOUHFHLSWRIEHQHILWVXQGHUWKLV3ODQ
Retirement CommitteeRUCommitteePHDQVWKHFRPPLWWHHGHVFULEHGLQ$UWLFOH
Retirement PlanRUPlanPHDQVWKH&LW\RI:LQWHU6SULQJV5HWLUHPHQW3ODQDVFRQWDLQHG
KHUHLQDQGDOODPHQGPHQWVKHUHWR
72
^ `
ServicePHDQVDQ\SHULRGRIWLPHWKH(PSOR\HHLVLQWKHHPSOR\RIWKH&LW\LQFOXGLQJDQ\
SHULRGWKH(PSOR\HHLVRQDQXQSDLGOHDYHRIDEVHQFHDXWKRUL]HGE\WKH&LW\XQGHUD
XQLIRUP QRQGLVFULPLQDWRU\ SROLF\ DSSOLFDEOH WR DOO (PSOR\HHV(IIHFWLYH
³6HUYLFH´PHDQVDQ\SHULRGRIWLPHWKH(PSOR\HHLVLQWKHHPSOR\RIWKH&LW\DIWHUWKH
HPSOR\HHEHFRPHVDQHOLJLEOH0HPEHULQWKH3ODQLQDFFRUGDQFHZLWK$UWLFOH³6HSDUDWLRQ
IURP6HUYLFH´PHDQVDVHSDUDWLRQIURP6HUYLFHZLWKWKH(PSOR\HUPDLQWDLQLQJWKH3ODQ
TrusteePHDQVWKH%RDUGRI7UXVWHHVRIWKH&LW\RI:LQWHU6SULQJVRUDQ\VXFFHVVRULQ
RIILFHZKRLQZULWLQJDFFHSWVWKHSRVLWLRQRI7UXVWHH
VestingperiodPHDQVWKHSHULRGRIFUHGLWHGVHUYLFHUHTXLUHGWRREWDLQDQRQIRUIHLWDEOH
ULJKWWRUHFHLYHDIXWXUHEHQHILWXQGHUWKH3ODQLQDFFRUGDQFHZLWK$UWLFOH
$UWLFOH 3DUWLFLSDWLRQ
(OLJLELOLW\(DFK(PSOR\HH RWKHUWKDQDQ([FOXGHG(PSOR\HH EHFRPHVD0HPEHURIWKH
3ODQRQWKHILUVWGD\RIWKHPRQWK LIHPSOR\HGRQWKDWGDWH LPPHGLDWHO\IROORZLQJWKH
GDWH PRQWKV DIWHU (PSOR\PHQW &RPPHQFHPHQW 'DWH (IIHFWLYH HDFK
(PSOR\HH RWKHUWKDQDQ([FOXGHG(PSOR\HH EHFRPHVD0HPEHURIWKH3ODQWKHILUVWRI
WKHPRQWKIROORZLQJGD\VIURP(PSOR\PHQW&RPPHQFHPHQW'DWHXQOHVVWKH\KDYH
RSWHGRXWRIWKLVSHQVLRQSODQ(PSOR\PHQW&RPPHQFHPHQW'DWHPHDQVWKHGDWHRQ
ZKLFK WKH (PSOR\HH ILUVW SHUIRUPV 6HUYLFH IRU WKH &LW\ 1RWZLWKVWDQGLQJ DQ\ RWKHU
SURYLVLRQ RI WKLV 3ODQ DQ\ (PSOR\HH RWKHU WKDQ D VZRUQ SROLFH RIILFHU RU IRUHQVLF
SURIHVVLRQDOKLUHGRUUHKLUHGRQRUDIWHU2FWREHUVKDOOQRWEHHOLJLEOHWRSDUWLFLSDWH
LQWKLV3ODQ$Q\(PSOR\HHRWKHUWKDQDVZRUQSROLFHRIILFHURUIRUHQVLFSURIHVVLRQDOKLUHG
RUUHKLUHGRQRUDIWHU2FWREHUVKDOOSDUWLFLSDWHLQWKHGHILQHGFRQWULEXWLRQSODQ
HVWDEOLVKHG SXUVXDQW WR 5HVROXWLRQ LI HOLJLEOH WR SDUWLFLSDWH LQ WKH GHILQHG
FRQWULEXWLRQSODQ([FHSWDVSURYLGHGXQGHU6HFWLRQ(PSOR\HHVKLUHGRUUHKLUHGDV
VZRUQSROLFHRIILFHUVRUIRUHQVLFSURIHVVLRQDOVRQRUDIWHU2FWREHUVKDOOSDUWLFLSDWH
LQWKLV3ODQ
D Excluded Employees
$Q(PSOR\HHLVDQ([FOXGHG(PSOR\HHLIKLVFXVWRPDU\ZHHNO\HPSOR\PHQW
ZLWKWKH&LW\LVOHVVWKDQKRXUV$Q(PSOR\HHLVDQ([FOXGHG(PSOR\HH
LIKHLVDFWLYHO\SDUWLFLSDWLQJ DQG³EHQHILWLQJ´ZLWKLQWKHPHDQLQJRI7UHDV
5HJ E LQDQRWKHUTXDOLILHGSODQPDLQWDLQHGE\WKH&LW\RWKHUWKDQ
WKH0RQH\3XUFKDVH3HQVLRQ3ODQDQG7UXVWIRU(PSOR\HHVRIWKH&LW\RI
:LQWHU 6SULQJV )ORULGD KHUHLQDIWHU UHIHUUHG WR DV WKH ³0RQH\3XUFKDVH
3ODQ´
,ID0HPEHUKDVQRWLQFXUUHGD6HSDUDWLRQIURP6HUYLFHEXWEHFRPHVDQ
([FOXGHG(PSOR\HHWKHQGXULQJWKHSHULRGVXFKD0HPEHULVDQ([FOXGHG
(PSOR\HHWKH0HPEHUZLOOQRWDFFUXHDEHQHILWXQGHUWKH3ODQDWWULEXWDEOH
WRDQ\SHULRGGXULQJZKLFKKHLVDQ([FOXGHG(PSOR\HH+RZHYHUGXULQJ
VXFK SHULRG RI H[FOXVLRQ WKH 0HPEHU ZLWKRXW UHJDUG WR HPSOR\PHQW
FODVVLILFDWLRQFRQWLQXHVWRUHFHLYHFUHGLWIRUYHVWLQJIRUHDFKLQFOXGHG<HDU
RI6HUYLFH
73
^ `
,IDQ([FOXGHG(PSOR\HHZKRLVQRWD0HPEHUEHFRPHVHOLJLEOHWRSDUWLFLSDWH
LQ WKH 3ODQ E\ UHDVRQRI D FKDQJH LQ HPSOR\PHQW FODVVLILFDWLRQ KHZLOO
SDUWLFLSDWHLQWKH3ODQLPPHGLDWHO\LIKHKDVVDWLVILHGWKHHOLJLELOLW\FRQGLWLRQV
RI6HFWLRQDQGZRXOGKDYHEHHQD0HPEHUKDGKHQRWEHHQDQ([FOXGHG
(PSOR\HHGXULQJKLVSHULRGRI6HUYLFH)XUWKHUPRUHWKH3ODQWDNHVLQWR
DFFRXQWDOORIWKH0HPEHU¶VLQFOXGHG<HDUVRI6HUYLFHZLWKWKH&LW\DVDQ
([FOXGHG(PSOR\HHIRUSXUSRVHVRIYHVWLQJFUHGLW
E Employees with Non-Contributing Service$Q\(PSOR\HHZKRFRPSOHWHG<HDUV
RI 6HUYLFH SULRU WR DGRSWLRQ RI 5HVROXWLRQ 1R EXW GLG QRW PDNH
FRQWULEXWLRQVWRWKLV7UXVW)XQGRUWRWKH0RQH\3XUFKDVH3ODQVKDOOEHFUHGLWHG
ZLWK <HDUV RI $FFUXDO 6HUYLFH XSRQ SD\PHQW RI WKH 5HTXLUHG 0HPEHU
&RQWULEXWLRQVGXHXQGHUWKLV3ODQDQGWKHUHTXLUHG0HPEHUFRQWULEXWLRQVGXHXQGHU
WKH0RQH\3XUFKDVH3ODQIRUVXFKVHUYLFH
Participation upon Reemployment$Q\(PSOR\HHRWKHUWKDQDVZRUQSROLFHRIILFHURU
IRUHQVLFSURIHVVLRQDOZKRLVUHHPSOR\HGRQRUDIWHU2FWREHUVKDOOQRWSDUWLFLSDWH
LQ WKLV 3ODQ EXW ZLOO XSRQ UHHPSOR\PHQW SDUWLFLSDWH LQ WKH GHILQHG FRQWULEXWLRQ SODQ
HVWDEOLVKHGSXUVXDQWWR5HVROXWLRQ $0HPEHUHPSOR\HGDVDSROLFHRIILFHURU
IRUHQVLFSURIHVVLRQDOZKRVHHPSOR\PHQWWHUPLQDWHVDQGZKRLVVXEVHTXHQWO\UHHPSOR\HG
RQ RU DIWHU 2FWREHU ZLOO UHHQWHU WKH 3ODQ DV D 0HPEHU RQ WKH GDWH RI KLV
UHHPSOR\PHQW$Q(PSOR\HHHPSOR\HGDVDSROLFHRIILFHURUIRUHQVLFSURIHVVLRQDOZKR
VDWLVILHVWKH3ODQ¶VHOLJLELOLW\FRQGLWLRQVEXWZKRWHUPLQDWHVHPSOR\PHQWZLWKWKH&LW\
SULRUWREHFRPLQJD0HPEHUDQGZKRLVVXEVHTXHQWO\UHHPSOR\HGRQRUDIWHU2FWREHU
ZLOOEHFRPHD0HPEHURQWKHODWHURIWKHGDWHRQZKLFKKHZRXOGKDYHHQWHUHGWKH
3ODQKDGKHQRWWHUPLQDWHGHPSOR\PHQWRUWKHGDWHRIKLVUHHPSOR\PHQW$Q(PSOR\HH
HPSOR\HGDVDSROLFHRIILFHURUIRUHQVLFSURIHVVLRQDOZKRWHUPLQDWHVHPSOR\PHQWSULRUWR
VDWLVI\LQJWKH3ODQHOLJLELOLW\FRQGLWLRQVDQGZKRLVVXEVHTXHQWO\UHHPSOR\HGRQRUDIWHU
2FWREHUEHFRPHVD0HPEHULQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6HFWLRQ
Employees with Non-Contributing Service under the Predecessor Plan. $Q\(PSOR\HH
ZKR FRPSOHWHG \HDUV RI VHUYLFH XQGHU WKH 3UHGHFHVVRU 3ODQ SULRU WR WKH DGRSWLRQ RI
5HVROXWLRQ1REXWGLGQRWPDNHFRQWULEXWLRQVWRWKH3UHGHFHVVRU3ODQRUWRWKH
0RQH\3XUFKDVH3ODQIRU(PSOR\HHVRIWKH&LW\RI:LQWHU6SULQJVDQGGLGQRWUHFHLYH
\HDUVRIDFFUXDOVHUYLFHXQGHUWKH3UHGHFHVVRU3ODQVKDOOUHFHLYHFUHGLWHGVHUYLFHXQGHU
WKLV3ODQXSRQSD\PHQWRIWKHUHTXLUHG0HPEHUFRQWULEXWLRQVGXHXQGHUWKLV3ODQDQGWKH
UHTXLUHGPHPEHUFRQWULEXWLRQVGXHXQGHUWKH0RQH\3XUFKDVH3ODQIRUVXFKVHUYLFH
Opt-Out.1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQRIWKH3ODQDQ\VZRUQSROLFHRIILFHURU
IRUHQVLFSURIHVVLRQDOKLUHGE\&LW\RQRUDIWHUPD\HOHFWWRRSWRXWRISDUWLFLSDWLRQ
LQWKLV3ODQDQGHQUROOLQDGHILQHGFRQWULEXWLRQSODQHVWDEOLVKHGE\WKH&LW\7KLVRQH
WLPHLUUHYRFDEOHHOHFWLRQPXVWEHPDGHLQZULWLQJRQDIRUPSURYLGHGE\WKH&LW\SULRUWR
EHFRPLQJDQHOLJLEOH0HPEHULQWKLV3ODQLQDFFRUGDQFHZLWK6HFWLRQ,IDQRSWRXW
HOHFWLRQLVQRWPDGHSULRUWREHFRPLQJDQHOLJLEOH0HPEHULQWKLV3ODQLQDFFRUGDQFHZLWK
6HFWLRQWKHVZRUQSROLFHRIILFHURUIRUHQVLFSURIHVVLRQDOVKDOOEHD0HPEHULQWKLV
3ODQ
74
^ `
$UWLFOH &RQWULEXWLRQV
Required Member Contributions (DFK 0HPEHU LV UHTXLUHG WR FRQWULEXWH RI
&RPSHQVDWLRQWRWKH3ODQZKLFKFRQWULEXWLRQVKDOOEHFRQVLGHUHGWKHUHTXLUHG0HPEHU
FRQWULEXWLRQ(IIHFWLYH2FWREHUHDFK0HPEHULVUHTXLUHGWRFRQWULEXWHRI
&RPSHQVDWLRQWRWKH3ODQZKLFKFRQWULEXWLRQVKDOOEHFRQVLGHUHGWKH5HTXLUHG0HPEHU
&RQWULEXWLRQ7KHUHTXLUHG0HPEHUFRQWULEXWLRQVKDOOEHGHGXFWHGIURPHDFK0HPEHU¶V
&RPSHQVDWLRQZKHQHYHUVXFK&RPSHQVDWLRQLVSDLGDQGUHPLWWHGWRWKH)XQG5HTXLUHG
0HPEHUFRQWULEXWLRQVVKDOOEHFRQVLGHUHGDQHPSOR\HU³SLFNXS´FRQWULEXWLRQDQGVKDOOEH
GHVLJQDWHGDVHPSOR\HUFRQWULEXWLRQVSXUVXDQWWR6HFWLRQ K RIWKH,QWHUQDO5HYHQXH
&RGHFRQWLQJHQWXSRQWKHFRQWULEXWLRQVEHLQJH[FOXGHGIURPWKH0HPEHU¶VJURVVLQFRPH
IRUIHGHUDOLQFRPHWD[SXUSRVHV)RUDOORWKHUSXUSRVHVRIWKLV3ODQVXFKFRQWULEXWLRQV
VKDOOEHFRQVLGHUHG0HPEHUFRQWULEXWLRQV
Member Account Balance Transferred from Money Purchase Pension Plan to Predecessor
Plan$0HPEHU¶VDFFRXQWEDODQFHWUDQVIHUUHGIURPWKH0RQH\3XUFKDVH3HQVLRQ3ODQ
DQG7UXVWIRU0HPEHUVRIWKH&LW\RI:LQWHU6SULQJVWRWKH3UHGHFHVVRU3ODQSXUVXDQWWR
5HVROXWLRQ1RVKDOOEHFRPHDQLQWHJUDOSDUWRIWKLV)XQG SURYLGHGWKDWVXFK
DFFRXQWEDODQFHSOXVLQWHUHVWDWDUDWHHTXDOWRWKHLQWHUHVWUDWHRQ\HDU7UHDVXU\
VHFXULWLHVDVSXEOLVKHGLQWKH,QWHUQDO5HYHQXH%XOOHWLQGHWHUPLQHGDVRIWKHFDOHQGDU
PRQWKSUHFHGLQJWKHILUVWGD\RIWKH3ODQ\HDULIDYDLODEOHDQGLIQRWDUDWHHTXDOWRWKH
867UHDVXU\'HSDUWPHQWORQJWHUPDYHUDJHUDWHSXEOLVKHGRQWKHODVWGD\RIWKHFDOHQGDU
PRQWKSUHFHGLQJWKHILUVWGD\RIWKH3ODQ\HDURUVXFKRWKHUUDWHWKDWPD\EHDSSURYHGE\
WKH867UHDVXU\'HSDUWPHQWWRUHSODFHWKH\HDU7UHDVXU\ERQGUDWHDVDEHQFKPDUN
IRUFDOFXODWLQJOXPSVXPSD\RXWVIURPGHILQHGEHQHILWSODQVVKDOOEHSDUWRIWKHDFFUXHG
EHQHILWSD\DEOHWRD0HPEHUXSRQQRUPDOUHWLUHPHQW
Employer contributions 7KHFLW\VKDOODQQXDOO\FRQWULEXWHDQDPRXQWZKLFKZKHQDGGHG
WRWKH0HPEHUV¶FRQWULEXWLRQVZLOOEHVXIILFLHQWWRIXQGWKHSODQRQDVRXQGDFWXDULDOEDVLV
LQDFFRUGDQFHZLWKDSSOLFDEOHODZ
$UWLFOH %HQHILWV
1RUPDO5HWLUHPHQW
D Normal Retirement Date7KH1RUPDO5HWLUHPHQWGDWHLVWKHILUVWGD\RIDQ\PRQWK
IROORZLQJWKHGDWHD0HPEHUDWWDLQVDJHVL[W\ILYH ,QDGGLWLRQD0HPEHUZLWK
DWOHDVWWKLUW\ \HDUVRIFUHGLWHGVHUYLFHZKRLVGHWHUPLQHGWREHGLVDEOHGXQGHU
WKHSURYLVLRQVRIWKH&LW\¶VORQJWHUPGLVDELOLW\LQVXUDQFHSROLF\SULRUWRWKH1RUPDO
5HWLUHPHQW'DWHPD\UHWLUHZLWKDQXQUHGXFHGEHQHILWDQGWKHEHQHILWVKDOOEH
FDOFXODWHGEDVHGRQWKH0HPEHU
VFUHGLWHGVHUYLFHDQGDYHUDJHILQDOFRPSHQVDWLRQDW
WKHGDWHRIVHSDUDWLRQIURPHPSOR\PHQW
E Normal Retirement Benefit
$0HPEHUZKRLVDFWLYHO\HPSOR\HGE\WKH&LW\DWWKH1RUPDO5HWLUHPHQW
'DWHPD\UHWLUHZLWKDQXQUHGXFHGEHQHILWDWDQ\WLPHWKHUHDIWHUDQGWKH
EHQHILW VKDOO EH FDOFXODWHG EDVHG RQ WKH 0HPEHU
V FUHGLWHG VHUYLFH DQG
75
^ `
DYHUDJHILQDOFRPSHQVDWLRQDWWKHGDWHRIVHSDUDWLRQIURPHPSOR\PHQW$
0HPEHU
VQRUPDOUHWLUHPHQWSHQVLRQHTXDOVRIWKH0HPEHU¶V$YHUDJH
)LQDO&RPSHQVDWLRQPXOWLSOLHGE\KLV<HDUVRI$FFUXDO6HUYLFHIRUVHUYLFH
SULRU WR 2FWREHU DQG RI WKH 0HPEHU¶V $YHUDJH )LQDO
&RPSHQVDWLRQPXOWLSOLHGE\KLV<HDUVRI$FFUXDO6HUYLFHIRUVHUYLFHRQDQG
DIWHU2FWREHU6XFKSHQVLRQZLOOEHDGMXVWHGIRUDQ\GLVWULEXWLRQLQ
DFFRUGDQFH ZLWK $UWLFOH 7KH PD[LPXP QXPEHU RI <HDUV RI $FFUXDO
6HUYLFHWDNHQLQWRDFFRXQWLQWKHQRUPDOUHWLUHPHQWSHQVLRQLVFRXQWLQJ
IRUZDUGIURPWKHGDWHRILQLWLDOSDUWLFLSDWLRQWRLQFOXGHDQ\SXUFKDVHGSDVW
VHUYLFH
1RWZLWKVWDQGLQJDQ\SURYLVLRQRIVXEVHFWLRQ E WRWKHFRQWUDU\HIIHFWLYH
2FWREHUD0HPEHU¶VQRUPDOUHWLUHPHQWSHQVLRQVKDOOHTXDORIWKH
0HPEHU¶V$YHUDJH)LQDO&RPSHQVDWLRQPXOWLSOLHGE\KLV<HDUVRI$FFUXDO
VHUYLFHIRUVHUYLFHSULRUWR2FWREHU SURYLGHGWKDWVXFKPXOWLSOLHU
VKDOO LQFUHDVH E\ RQHIRXUWK RI RQH SHUFHQW HDFK \HDU EHJLQQLQJ
2FWREHUDVIROORZV
'DWHRI
5HWLUHPHQWRQRU$IWHU
0XOWLSOLHUIRU6HUYLFH
3ULRUWR2FWREHU
2FWREHU
2FWREHU
2FWREHU
2FWREHU
$0HPEHU¶VQRUPDOUHWLUHPHQWSHQVLRQVKDOOEHFDOFXODWHGE\DSSO\LQJWKH
PXOWLSOLHUIRUVHUYLFHSULRUWR2FWREHUWKDWLVLQHIIHFWRQWKHGDWHRI
WKH0HPEHU¶VVHSDUDWLRQIURPVHUYLFH
(IIHFWLYH 2FWREHU WKH QRUPDO UHWLUHPHQW SHQVLRQ RID*HQHUDO
(PSOR\HH0HPEHUVKDOOHTXDORIWKH0HPEHU¶V$YHUDJH&RPSHQVDWLRQ
PXOWLSOLHGE\<HDUVRI$FFUXDO6HUYLFHSULRUWR2FWREHUDQGRI
WKH0HPEHU¶V$YHUDJH&RPSHQVDWLRQPXOWLSOLHGE\<HDUVRI$FFUXDO6HUYLFH
RQDQGDIWHU2FWREHU7KHQRUPDOUHWLUHPHQWSHQVLRQRID0HPEHU
HPSOR\HGDVDVZRUQSROLFHRIILFHUILUHILJKWHURUIRUHQVLFSURIHVVLRQDOVKDOO
HTXDORIWKH0HPEHU¶V$YHUDJH&RPSHQVDWLRQPXOWLSOLHGE\<HDUVRI
$FFUXDO 6HUYLFH 6XFK SHQVLRQ ZLOO EH DGMXVWHG IRU DQ\ GLVWULEXWLRQ LQ
DFFRUGDQFH ZLWK $UWLFOH 7KH PD[LPXP QXPEHU RI <HDUV RI $FFUXDO
6HUYLFHWDNHQLQWRDFFRXQWLQWKHQRUPDOUHWLUHPHQWSHQVLRQLVFRXQWLQJ
IRUZDUGIURPWKHGDWHRILQLWLDOSDUWLFLSDWLRQWRLQFOXGHDQ\SXUFKDVHGSDVW
VHUYLFH
F Accrued Benefit.6XEMHFWWRWKH$QQXDO%HQHILWOLPLWDWLRQVRI$UWLFOHD0HPEHU
V
$FFUXHG%HQHILWLVWKHQRUPDOUHWLUHPHQWSHQVLRQDFFUXHGE\WKH0HPEHUXQGHUWKH
DFFUXDOIRUPXODSURYLGHGLQWKLVSDUDJUDSK F
76
^ `
Method of Accrual.$VRIDQ\GDWHD0HPEHU
V$FFUXHG%HQHILWLVKLVQRUPDO
UHWLUHPHQWSHQVLRQFDOFXODWHGDVRIWKHGHWHUPLQDWLRQGDWHEDVHGRQWKH<HDUV
RI$FFUXDO6HUYLFHFUHGLWHGDVRIVXFKGDWH
Years of Accrual Service<HDUVRI$FFUXDO6HUYLFHDUH<HDUVRI6HUYLFHDV
GHWHUPLQHGXQGHU$UWLFOHLQFOXGLQJ<HDUVRI6HUYLFHFRPSOHWHGSULRUWRKLV
SDUWLFLSDWLRQLQWKH3ODQ$Q\(PSOR\HHZKRFRPSOHWHG<HDUVRI6HUYLFHSULRU
WRWKHDGRSWLRQRI5HVROXWLRQ1REXWGLGQRWPDNHFRQWULEXWLRQVWR
WKLV7UXVW)XQGRUWRWKH0RQH\3XUFKDVH3HQVLRQ3ODQVKDOOEHFUHGLWHGZLWK
<HDUVRI$FFUXDO6HUYLFHXSRQSD\PHQWRIWKH5HTXLUHG0HPEHU&RQWULEXWLRQV
GXHXQGHUWKLV3ODQDQGWKHUHTXLUHG0HPEHUFRQWULEXWLRQVGXHXQGHU WKH
0RQH\3XUFKDVH3HQVLRQ3ODQIRUVXFKVHUYLFH<HDUVRI$FFUXDO6HUYLFHDOVR
LQFOXGH³<HDUVRI4XDOLILHG6HUYLFH´SXUFKDVHGE\D0HPEHUEHIRUH
DQG³<HDUVRI3HUPLVVLYH6HUYLFH´SXUFKDVHGRQRUDIWHU<HDUVRI
4XDOLILHG6HUYLFHPHDQVDQ\RUDOO\HDUVRIVHUYLFHSHUIRUPHGE\WKH0HPEHU
DVDQHPSOR\HHRIWKH*RYHUQPHQWRIWKH8QLWHG6WDWHVDQ\6WDWHRUSROLWLFDO
VXEGLYLVLRQWKHUHRIRUDQ\DJHQF\RULQVWUXPHQWDOLW\RIDQ\RIWKHIRUHJRLQJ
RWKHUWKDQWKH&LW\EXWRQO\LIDOORIWKHIROORZLQJFRQGLWLRQVDUHVDWLVILHG
D WKH0HPEHUPDNHVDYROXQWDU\FRQWULEXWLRQWRWKH3ODQLQDQDPRXQW
QHFHVVDU\WRIXQGWKHEHQHILWDWWULEXWDEOHWRVXFK<HDUVRI4XDOLILHG
6HUYLFH DVGHWHUPLQHGE\WKHDFWXDU\IRUWKH3ODQXWLOL]LQJWKHDFWXDULDO
GHILQLWLRQVXVHGIRUSODQIXQGLQJSXUSRVHV DQGZKLFKGRHVQRWH[FHHG
WKHDPRXQWQHFHVVDU\WRIXQGWKHEHQHILWDWWULEXWDEOHWRVXFK<HDUVRI
4XDOLILHG6HUYLFH
E WKH0HPEHUPDNHVWKHYROXQWDU\FRQWULEXWLRQGHVFULEHGLQ6XEVHFWLRQ
DDERYHLQRQHOXPSVXPSD\PHQWWRWKH3ODQSULRUWRUHFHLYLQJFUHGLW
IRUVXFK<HDUVRI4XDOLILHG6HUYLFHDQGSULRUWR
F WKH0HPEHU¶V$FFUXHG%HQHILWLVHLWKHU1RQIRUIHLWDEOHDWWKHWLPH
KHPDNHVWKHYROXQWDU\FRQWULEXWLRQGHVFULEHGLQVXEVHFWLRQ DDERYH
RUZLOOEHFRPH1RQIRUIHLWDEOHLPPHGLDWHO\DIWHUUHFHLYLQJFUHGLW
IRUVXFK<HDUVRI4XDOLILHG6HUYLFH DQG
G WKHFUHGLWLQJRIVXFK<HDUVRI4XDOLILHG6HUYLFHPXVWQRWFDXVHWKH
0HPEHUWRUHFHLYHDUHWLUHPHQWEHQHILWIRUWKHVDPH<HDUVRI4XDOLILHG
6HUYLFHXQGHUPRUHWKDQRQHUHWLUHPHQWSODQ
G Normal Form of Benefit7KH1RUPDO5HWLUHPHQW%HQHILWVKDOOEHFRPSXWHGLQWKH
IRUPRIDVWUDLJKWOLIHDQQXLW\7KH0HPEHURULQWKHHYHQWRIWKHPHPEHU¶VGHDWK
SULRUWRFRPPHQFHPHQWRIQRUPDOUHWLUHPHQWEHQHILWVHDUO\UHWLUHPHQWEHQHILWVRU
GHIHUUHGYHVWHGEHQHILWVWKH0HPEHU¶VEHQHILFLDU\PD\VHOHFWDQRSWLRQDOIRUPRI
GLVWULEXWLRQLQDFFRUGDQFHZLWK$UWLFOH
Delayed Normal Retirement $ EHQHILW FRPPHQFLQJ DIWHU DJH VL[W\ILYH LV WKH
$FWXDULDO(TXLYDOHQWRIWKH0HPEHU¶VDFFUXHGEHQHILWSD\DEOHDVRIWKHODWHURIDJHVL[W\
ILYH RUWKHODVWGD\RIWKHSULRU3ODQ<HDU$0HPEHUFRQWLQXHVWRDFFUXHEHQHILWVDIWHU
DJHVL[W\ILYH LIWKH0HPEHU¶V$FFUXHG%HQHILWZRXOGLQFUHDVHEHFDXVHRIDGGLWLRQDO
FUHGLWHGVHUYLFHRUFRPSHQVDWLRQ$0HPEHU¶VDFFUXHGEHQHILWDVRIWKHHQGRIHDFK3ODQ
77
^ `
<HDUIROORZLQJDJHVL[W\ILYH LVWKHJUHDWHURI WKHQRUPDOUHWLUHPHQWEHQHILW
GHWHUPLQHGXQGHUWKH3ODQWDNLQJLQWRDFFRXQWFUHGLWHGVHUYLFHDQGFRPSHQVDWLRQHDUQHG
DIWHUDJHVL[W\ILYH RU WKHDFFUXHGEHQHILWGHWHUPLQHGDVRIWKHODWHURIDJHVL[W\
ILYH RUWKHHQGRIWKHSULRU3ODQ<HDUDFWXDULDOO\DGMXVWHGIRUGHOD\HGUHWLUHPHQW
Early Retirement
D Eligibility.
$0HPEHUDVRI6HSWHPEHUZKRKDVUHFHLYHGFUHGLWIRUDWOHDVW
<HDUV RI 6HUYLFH DQG KDV DWWDLQHG DJH PD\ HOHFW DQ HDUO\ UHWLUHPHQW
SHQVLRQ$0HPEHUDVRI6HSWHPEHUZKRVHSDUDWHVIURPVHUYLFH
DIWHUVDWLVI\LQJWKHVHUYLFHUHTXLUHPHQWEXWQRWWKHDJHUHTXLUHPHQWPD\HOHFW
WRUHFHLYHDQHDUO\UHWLUHPHQWSHQVLRQXSRQVDWLVI\LQJWKHDJHUHTXLUHPHQW,Q
DGGLWLRQD0HPEHUDVRI6HSWHPEHUZKRKDVFRPSOHWHGRUPRUH
<HDUVRI6HUYLFHPD\HOHFWDQHDUO\UHWLUHPHQWSHQVLRQ
$0HPEHUKLUHGDIWHU6HSWHPEHUZKRKDVUHFHLYHGFUHGLWIRUDWOHDVW
<HDUVRI6HUYLFHDQGKDVDWWDLQHGDJHPD\HOHFWDQHDUO\UHWLUHPHQW
SHQVLRQ$0HPEHUKLUHGDIWHU6HSWHPEHUZKRVHSDUDWHVIURP
VHUYLFHDIWHUVDWLVI\LQJWKHVHUYLFHUHTXLUHPHQWEXWQRWWKHDJHUHTXLUHPHQW
PD\HOHFWWRUHFHLYHDQHDUO\UHWLUHPHQWSHQVLRQXSRQVDWLVI\LQJWKHDJH
UHTXLUHPHQW,QDGGLWLRQD0HPEHUKLUHGDIWHU6HSWHPEHUZKR
FRPSOHWHV <HDUV RI 6HUYLFH PD\ HOHFW WR UHFHLYH DQ HDUO\ UHWLUHPHQW
SHQVLRQ
7KH HDUO\ UHWLUHPHQW SHQVLRQ IRU D 0HPEHU LV KLV RU KHU 1RQIRUIHLWDEOH
$FFUXHG %HQHILW SD\DEOH DW 1RUPDO 5HWLUHPHQW 'DWH ZLWKRXW DFWXDULDO
UHGXFWLRQIRUHDUO\FRPPHQFHPHQWEXWRQO\LIEHQHILWVFRPPHQFHRQRUDIWHU
WKH0HPEHUDWWDLQVDJH,IDQHOLJLEOH0HPEHUHOHFWVWRFRPPHQFHKLVRU
KHUHDUO\UHWLUHPHQWSHQVLRQSULRUWRDWWDLQLQJDJHVXFK0HPEHU¶VHDUO\
UHWLUHPHQWSHQVLRQLVWKH$FWXDULDO(TXLYDOHQWRIKLV1RQIRUIHLWDEOH$FFUXHG
%HQHILWSD\DEOHDW
1RWZLWKVWDQGLQJWKHDERYHWKHHDUO\UHWLUHPHQWSHQVLRQIRUD0HPEHUDVRI
6HSWHPEHUZKRKDVUHFHLYHGFUHGLWIRURUPRUH<HDUVRI6HUYLFH
EXWOHVVWKDQ<HDUVRI6HUYLFHLVWKHVXPRIKLVRUKHU1RQIRUIHLWDEOH
$FFUXHG%HQHILWDVRI6HSWHPEHUSD\DEOHDW1RUPDO5HWLUHPHQW
'DWHZLWKRXWDFWXDULDOUHGXFWLRQIRUHDUO\FRPPHQFHPHQWSOXVKLVRUKHU
$FFUXHG%HQHILWSD\DEOHDW1RUPDO5HWLUHPHQW'DWHHDUQHGDIWHU6HSWHPEHU
ZLWKDFWXDULDOUHGXFWLRQIRUHDUO\FRPPHQFHPHQW
E Early Retirement Benefit.7KHHDUO\UHWLUHPHQWEHQHILWVKDOOEHFDOFXODWHGLQWKHVDPH
PDQQHUDVWKHQRUPDOUHWLUHPHQWEHQHILWH[FHSWWKDWWKHEHQHILWVKDOOEHEDVHGRQ
DYHUDJHILQDOFRPSHQVDWLRQDQGFUHGLWHGVHUYLFHDVRIWKHHDUO\UHWLUHPHQWGDWHDQG
VKDOOEHUHGXFHGE\WKHDFWXDULDOHTXLYDOHQWRIZKDWZRXOGKDYHEHHQSD\DEOHDWDJH
ILIW\ILYH XQUHGXFHG
F ,IWKHSUHVHQWYDOXHRIWKH0HPEHU¶VHDUO\UHWLUHPHQWEHQHILWGRHVQRWH[FHHG
WKHEHQHILWZLOODXWRPDWLFDOO\EHSDLGLQDOXPSVXPDVVRRQDVDGPLQLVWUDWLYHO\
SUDFWLFDEOHDIWHUWKH0HPEHU¶VVHSDUDWLRQIURPHPSOR\PHQWRULIODWHUDIWHUWKH
78
^ `
0HPEHUVDWLVILHVWKHHOLJLELOLW\UHTXLUHPHQWVIRUDQHDUO\UHWLUHPHQWEHQHILW,IWKH
SUHVHQWYDOXHRIWKH0HPEHU¶VHDUO\UHWLUHPHQWEHQHILWLVJUHDWHUWKDQEXWGRHV
QRWH[FHHGXSRQUHFHLSWRIWKH0HPEHU¶VZULWWHQHOHFWLRQWRUHFHLYHDOXPS
VXPGLVWULEXWLRQWKHHDUO\UHWLUHPHQWEHQHILWVKDOOEHSDLGLQDOXPSVXPDVVRRQDV
DGPLQLVWUDWLYHO\SUDFWLFDEOHDIWHUWKH0HPEHU¶VVHSDUDWLRQIURPHPSOR\PHQWRULI
ODWHUDIWHUWKH0HPEHUVDWLVILHVWKHHOLJLELOLW\UHTXLUHPHQWVIRUDQHDUO\UHWLUHPHQW
EHQHILW
G ,IWKHSUHVHQWYDOXHRIWKH0HPEHU
VHDUO\UHWLUHPHQWEHQHILWH[FHHGVWKH
EHQHILW VKDOO EH SDLGLQ WKH IRUP DQG DV RI WKH GDWH HOHFWHG E\ WKH0HPEHU LQ
DFFRUGDQFHZLWKWKH3ODQ$0HPEHUPD\HOHFWWRFRPPHQFHKLVHDUO\UHWLUHPHQW
SHQVLRQDVRIWKHILUVWGD\RIDQ\PRQWKGXULQJWKHSHULRGKHLVHOLJLEOHIRUWKHHDUO\
UHWLUHPHQWSHQVLRQDQGDIWHUKHKDVVHSDUDWHGIURPHPSOR\PHQW,IWKH0HPEHUIDLOV
WRGHVLJQDWHDGLVWULEXWLRQGDWHWKHQWKHHDUO\UHWLUHPHQWEHQHILWVKDOOEHSDLGLQ
DFFRUGDQFHZLWKWKLV$UWLFOH
Deferred Vested Benefit
D $0HPEHUZKRSULRUWRKLV1RUPDO5HWLUHPHQW'DWHWHUPLQDWHVHPSOR\PHQWIRU
DQ\UHDVRQRWKHUWKDQGHDWKRUHOLJLELOLW\IRUDQHDUO\UHWLUHPHQWSHQVLRQZLOO
UHFHLYHDGHIHUUHGYHVWHGSHQVLRQ
E ,IWKHSUHVHQWYDOXHRIWKH0HPEHU¶VGHIHUUHGYHVWHGSHQVLRQGRHVQRWH[FHHG
WKH3ODQZLOODXWRPDWLFDOO\SD\WKHGHIHUUHGYHVWHGSHQVLRQLQDOXPSVXP
DVVRRQDVDGPLQLVWUDWLYHO\SUDFWLFDEOHIROORZLQJWKH0HPEHU
VVHSDUDWLRQIURP
VHUYLFH,IWKHSUHVHQWYDOXHRIWKH0HPEHU¶VGHIHUUHGYHVWHGSHQVLRQLVJUHDWHU
WKDQEXWGRHVQRWH[FHHGXSRQUHFHLSWRIWKH0HPEHU¶VZULWWHQ
HOHFWLRQWRUHFHLYHDOXPSVXPGLVWULEXWLRQWKH3ODQZLOOSD\WKHGHIHUUHGYHVWHG
SHQVLRQ LQ D OXPS VXP DV VRRQ DV DGPLQLVWUDWLYHO\ SUDFWLFDEOHIROORZLQJ WKH
0HPEHU¶VVHSDUDWLRQIURPVHUYLFH,QQRHYHQWPD\WKHGLVWULEXWLRQRFFXUODWHUWKDQ
WKHWKGD\IROORZLQJWKHFORVHRIWKH3ODQ<HDULQZKLFKWKH0HPEHUDWWDLQV$JH
F ,IWKHSUHVHQWYDOXHRIWKH0HPEHU¶VGHIHUUHGYHVWHGSHQVLRQH[FHHGVWKH
GHIHUUHGYHVWHGSHQVLRQZLOOEHSDLGLQWKHIRUPHOHFWHGE\WKH0HPEHU$0HPEHU
PD\HOHFWWRFRPPHQFHKLVGHIHUUHGYHVWHGSHQVLRQDIWHUWKH0HPEHU
V1RUPDO
5HWLUHPHQW'DWH,IWKH0HPEHUIDLOVWRHOHFWDGLVWULEXWLRQGDWHWKHQSD\PHQWRI
WKHGHIHUUHGYHVWHGSHQVLRQZLOOFRPPHQFHLQDFFRUGDQFHZLWK$UWLFOH
$UWLFOH 3D\PHQWRI$FFUXHG%HQHILW±2SWLRQDO)RUPVRI3D\PHQW
Form of Benefit.6XEMHFWWRWKHUHTXLUHPHQWVRIWKLV$UWLFOHWKH3ODQZLOOSD\D0HPEHU
KLV1RQIRUIHLWDEOH$FFUXHG%HQHILWLQDIRUPSHUPLWWHGKHUHXQGHU$QQXLW\SD\PHQWVZLOO
FRQWLQXHXQWLOWKHODVWVFKHGXOHGSD\PHQWFRLQFLGHQWZLWKRULPPHGLDWHO\SUHFHGLQJWKH
GDWHRIWKH0HPEHU
VGHDWKRULIDSSOLFDEOHWKHGDWHRIKLVVXUYLYRU
VGHDWK
D Consent.$0HPEHUPXVWFRQVHQWLQZULWLQJWRDQ\GLVWULEXWLRQGHVFULEHGLQWKLV
$UWLFOH LI WKH SUHVHQW YDOXH RI WKH 0HPEHU
V 1RQIRUIHLWDEOH $FFUXHG %HQHILW
H[FHHGVDQGWKHGLVWULEXWLRQFRPPHQFHVSULRUWRWKH0HPEHU
VDWWDLQLQJ
1RUPDO5HWLUHPHQW$JH)XUWKHUPRUHWKH0HPEHU
VVSRXVHDOVRPXVWFRQVHQWLQ
79
^ `
ZULWLQJWRDQ\GLVWULEXWLRQIRUZKLFK6HFWLRQUHTXLUHVWKHVSRXVH
VFRQVHQW
)RUSXUSRVHVRIWKHFRQVHQWUHTXLUHPHQWVXQGHUWKLV$UWLFOHLIWKHSUHVHQWYDOXHRI
WKH0HPEHU
V1RQIRUIHLWDEOH$FFUXHG%HQHILWDWWKHWLPHRIDQ\GLVWULEXWLRQ
H[FHHGV WKH 5HWLUHPHQW &RPPLWWHH ZLOO WUHDW WKDW SUHVHQW YDOXH DV
H[FHHGLQJIRUSXUSRVHVRIDOOVXEVHTXHQW3ODQGLVWULEXWLRQVWRWKH0HPEHU
E Annuity starting date/distribution date7KHWHUPDQQXLW\VWDUWLQJGDWHPHDQV
WKHILUVWGD\RIWKHILUVWSHULRGIRUZKLFKWKH3ODQSD\VDQDPRXQWDVDQDQQXLW\ RU
IRUDGLVWULEXWLRQLQDQ\RWKHUIRUPWKHGDWHRIWKHGLVWULEXWLRQ$GLVWULEXWLRQ
GDWHLVWKHGDWHDVRIZKLFKWKH3ODQUHTXLUHVGLVWULEXWLRQRUDVRIWKHGDWHZKLFKWKH
0HPEHU RU%HQHILFLDU\ PD\HOHFWWRFRPPHQFHGLVWULEXWLRQ
Qualified Joint and Survivor Annuity
D Payment of Annuity Form.$PDUULHGRUXQPDUULHG0HPEHU
V1RQIRUIHLWDEOH
$FFUXHG%HQHILWZLOOEHGLVWULEXWHGLQWKHIRUPRIDTXDOLILHGMRLQWDQGVXUYLYRU
DQQXLW\XQOHVVWKH0HPEHUPDNHVDYDOLGZDLYHUHOHFWLRQSULRUWRWKHDQQXLW\
VWDUWLQJGDWH,IDVRIWKHDQQXLW\VWDUWLQJGDWHWKH0HPEHULVPDUULHGDTXDOLILHG
MRLQWDQGVXUYLYRUDQQXLW\LVDQLPPHGLDWHDQQXLW\SD\DEOHIRUWKHOLIHRIWKH
0HPEHUDQGDVXUYLYRUDQQXLW\SD\DEOHIRUWKHUHPDLQLQJOLIHRIWKH0HPEHU
V
VXUYLYLQJVSRXVHZKLFKLVRIWKHDPRXQWRIWKHDQQXLW\SD\DEOHGXULQJWKHOLIH
RIWKH0HPEHU,IDVRIWKHDQQXLW\VWDUWLQJGDWHWKH0HPEHULVQRWPDUULHGD
TXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\LVDQLPPHGLDWHOLIHDQQXLW\IRUWKH0HPEHU
7KHTXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\ZLOOEHWKH$FWXDULDO(TXLYDOHQWRIWKH
0HPEHU
V1RQIRUIHLWDEOH$FFUXHG%HQHILWDQGZLOOSURYLGHPRQWKO\SD\PHQWV
E Present Value Not Greater Than $3,500,IWKHSUHVHQWYDOXHRIWKH0HPEHU
V
$FFUXHG%HQHILWLVQRWJUHDWHUWKDQWKH0HPEHU
VSHQVLRQZLOOEHSDLGLQD
VLQJOHOXPSVXPLQOLHXRIDTXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\,IWKHSUHVHQW
YDOXHRIWKH0HPEHU¶V$FFUXHG%HQHILWLVJUHDWHUWKDQEXWGRHVQRWH[FHHG
XSRQUHFHLSWRIWKH0HPEHU¶VZULWWHQHOHFWLRQWRUHFHLYHDOXPSVXP
GLVWULEXWLRQWKH0HPEHU¶VSHQVLRQZLOOEHSDLGLQDVLQJOHOXPSVXPLQOLHXRID
TXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\7KHGLVWULEXWLRQPXVWRFFXURQRUEHIRUHWKH
DQQXLW\VWDUWLQJGDWH7KHFRQVHQWUHTXLUHPHQWVRIWKLV$UWLFOHGRQRWDSSO\WRD
0HPEHUVXEMHFWWRWKLVSDUDJUDSK
Commencement of Benefits7KHGLVWULEXWLRQRIEHQHILWVZLOOFRPPHQFHLQDFFRUGDQFHZLWK
WKLV$UWLFOHVXEMHFWWRPDQGDWRU\GLVWULEXWLRQUHTXLUHPHQWV
D Distribution to Member Who Separates from Service Before Normal Retirement
Date. 'LVWULEXWLRQ RI WKH 0HPEHU
V 1RQIRUIHLWDEOH $FFUXHG %HQHILW ZLOO
FRPPHQFHLQDFFRUGDQFHZLWK6HFWLRQV
E Distribution to Member Who Separates from Service After Normal Retirement
Date.'LVWULEXWLRQWRWKH0HPEHUZLOOFRPPHQFHDVIROORZV
3UHVHQW9DOXHRI1RUPDO5HWLUHPHQW3HQVLRQ1RW([FHHGLQJ,QOXPS
VXP DV VRRQ DV DGPLQLVWUDWLYHO\ SUDFWLFDEOH IROORZLQJ WKH 0HPEHU
V
VHSDUDWLRQIURP6HUYLFHEXWQRWODWHUWKDQWKHWKGD\IROORZLQJWKHFORVHRI
WKH3ODQ<HDULQZKLFKWKDWVHSDUDWLRQIURP6HUYLFHRFFXUV
80
^ `
3UHVHQW9DOXHRI1RUPDO5HWLUHPHQW3HQVLRQLV*UHDWHUWKDQEXW1RW
LQ([FHVVRI,QOXPSVXPDVVRRQDVDGPLQLVWUDWLYHO\SUDFWLFDEOH
IROORZLQJWKHUHFHLSWRIWKH0HPEHU¶VZULWWHQHOHFWLRQWRUHFHLYHDOXPSVXP
GLVWULEXWLRQDQGVHSDUDWLRQIURP6HUYLFH
3UHVHQW9DOXHRI1RUPDO5HWLUHPHQW3HQVLRQ([FHHGV,QWKHIRUP
DQGDWWKHWLPHHOHFWHGE\WKH0HPEHUDVSHUPLWWHGXQGHUWKLV$UWLFOH7KH
0HPEHUPD\HOHFWWRFRPPHQFHGLVWULEXWLRQDVVRRQDVDGPLQLVWUDWLYHO\
SUDFWLFDEOHIROORZLQJVHSDUDWLRQIURP6HUYLFHRUDVRIWKHILUVWGD\RIDQ\
VXEVHTXHQWPRQWK
F Failure of Member To Make an Election:KHUHWKH0HPEHUKDVWKHULJKWWRHOHFW
WKHIRUPDQGWLPLQJRIKLVSHQVLRQEXWKDVIDLOHGWRPDNHDQHOHFWLRQGLVWULEXWLRQ
RIWKH0HPEHU
VSHQVLRQZLOOFRPPHQFHLQWKHIRUPSUHVFULEHGE\6HFWLRQDV
VRRQ DV DGPLQLVWUDWLYHO\ SUDFWLFDEOH IROORZLQJ WKH ODWHU RI WKH 0HPEHU
V
DWWDLQPHQW RI 1RUPDO 5HWLUHPHQW $JH RU WKH 0HPEHU
V VHSDUDWLRQ IURP
6HUYLFH
G Notice to Member.$WOHDVWGD\VEHIRUHWKH0HPEHU
VDQQXLW\VWDUWLQJGDWHWKH
5HWLUHPHQW&RPPLWWHHPXVWSURYLGHDEHQHILWQRWLFHWRD0HPEHUZKRLVHOLJLEOH
WRPDNHDGLVWULEXWLRQHOHFWLRQXQGHUWKH3ODQ7KHEHQHILWQRWLFHPXVWH[SODLQWKH
RSWLRQDOIRUPVRIEHQHILWLQWKH3ODQLQFOXGLQJWKHPDWHULDOIHDWXUHVDQGUHODWLYH
YDOXHVRIWKRVHRSWLRQVDQGWKH0HPEHU
VULJKWWRGHIHUGLVWULEXWLRQXQWLOKHDWWDLQV
1RUPDO5HWLUHPHQW$JH
H Death of the Member,IWKH0HPEHUKDGFRPPHQFHGGLVWULEXWLRQSULRUWRKLVGHDWK
GLVWULEXWLRQWRWKH0HPEHU
V%HQHILFLDU\ZLOOEHPDGHLQDFFRUGDQFHZLWKWKH
GLVWULEXWLRQPHWKRGLQHIIHFWDWWKHWLPHRIGHDWK,IWKHGHFHDVHG0HPEHUKDGQRW
FRPPHQFHG GLVWULEXWLRQ WKH 0HPEHU
V GHDWK EHQHILW ZLOO EH GLVWULEXWHG LQ
DFFRUGDQFH ZLWK VXEVHFWLRQ D RU E ZKLFKHYHU DSSOLHV VXEMHFW WR WKH
UHTXLUHPHQWVRI$UWLFOH
3UHVHQW9DOXHRI'HDWK%HQHILW'RHV1RW([FHHG,QOXPSVXPDV
VRRQ DV DGPLQLVWUDWLYHO\ SUDFWLFDEOH IROORZLQJ WKH GDWH RQ ZKLFK WKH
5HWLUHPHQW &RPPLWWHH UHFHLYHV QRWLILFDWLRQ RI RU RWKHUZLVH FRQILUPV WKH
0HPEHU
VGHDWK
3UHVHQW9DOXHRI'HDWK%HQHILWLV*UHDWHUWKDQEXW1RWLQ([FHVVRI
,QOXPSVXPDVVRRQDVDGPLQLVWUDWLYHO\SUDFWLFDEOHIROORZLQJWKH
GDWHRQZKLFKWKH5HWLUHPHQW&RPPLWWHHUHFHLYHVQRWLILFDWLRQRIRURWKHUZLVH
FRQILUPVWKH0HPEHU¶VGHDWKDQGUHFHLYHVWKH%HQHILFLDU\¶VZULWWHQHOHFWLRQ
WRUHFHLYHDOXPSVXPGLVWULEXWLRQ
3UHVHQW9DOXHRI'HDWK%HQHILW([FHHGV,QWKHIRUPDQGDWWKHWLPH
HOHFWHGE\WKH0HPEHURULIDSSOLFDEOHE\WKH%HQHILFLDU\DVSHUPLWWHGXQGHU
WKLV$UWLFOH8QOHVVRWKHUZLVHHOHFWHGE\WKH0HPEHUD%HQHILFLDU\PD\HOHFW
WRFRPPHQFHGLVWULEXWLRQRIWKH0HPEHU
VGHDWKEHQHILWDVRIWKHILUVWGD\RI
DQ\PRQWKIROORZLQJWKHGDWHWKH5HWLUHPHQW&RPPLWWHHUHFHLYHVQRWLILFDWLRQ
RIRURWKHUZLVHFRQILUPVWKH0HPEHU
VGHDWK,QDGGLWLRQWRWKHRWKHUIRUPV
RIGLVWULEXWLRQDYDLODEOHXQGHUWKLV$UWLFOHD%HQHILFLDU\PD\HOHFWWRUHFHLYH
81
^ `
WKH0HPEHU
VGHDWKEHQHILWLQPRQWKO\TXDUWHUO\RUDQQXDOLQVWDOOPHQWVRYHU
D\HDUSHULRGXQOHVVWKH0HPEHUHOHFWHGRWKHUZLVH,QWKHDEVHQFHRIDQ
HOHFWLRQWKH3ODQZLOOGLVWULEXWHWKH0HPEHU
VGHDWKEHQHILWLQILYHDQQXDO
LQVWDOOPHQWSD\PHQWVFRPPHQFLQJDVVRRQDVDGPLQLVWUDWLYHO\SUDFWLFDEOH
IROORZLQJWKHHQGRIWKH3ODQ<HDUWKDWWKH5HWLUHPHQW&RPPLWWHHUHFHLYHV
QRWLILFDWLRQRIRURWKHUZLVHFRQILUPVWKH0HPEHU
VGHDWK
Waiver Election - Qualified Joint and Survivor Annuity
D Explanation of Waiver$WOHDVWGD\VEHIRUHWKH0HPEHU
VDQQXLW\VWDUWLQJGDWH
WKH5HWLUHPHQW&RPPLWWHHPXVWSURYLGHWKH0HPEHUDZULWWHQH[SODQDWLRQRIWKH
WHUPVDQGFRQGLWLRQVRIWKHTXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\WKH0HPEHU
VULJKW
WRPDNHDQGWKHHIIHFWRIDQHOHFWLRQWRZDLYHWKHMRLQWDQGVXUYLYRUIRUPRI
EHQHILWWKHULJKWVRIWKH0HPEHU
VVSRXVHUHJDUGLQJWKHZDLYHUHOHFWLRQDQGWKH
0HPEHU
VULJKWWRPDNHDQGWKHHIIHFWRIDUHYRFDWLRQRIDZDLYHUHOHFWLRQ7KH
3ODQGRHVQRWOLPLWWKHQXPEHURIWLPHVWKH0HPEHUPD\UHYRNHDZDLYHURIWKH
TXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\RUPDNHDQHZZDLYHUGXULQJWKHHOHFWLRQ
SHULRG
E Waiver Requirements$PDUULHG0HPEHU
VZDLYHUHOHFWLRQLVQRWYDOLGXQOHVV
WKH0HPEHU
VVSRXVH WRZKRPWKHVXUYLYRUDQQXLW\LVSD\DEOHXQGHUWKHTXDOLILHG
MRLQWDQGVXUYLYRUDQQXLW\ DIWHUWKH0HPEHUKDVUHFHLYHGWKHZULWWHQH[SODQDWLRQ
GHVFULEHG LQ WKLV $UWLFOH KDV FRQVHQWHG LQ ZULWLQJ WR WKH ZDLYHU HOHFWLRQ WKH
VSRXVH
VFRQVHQWDFNQRZOHGJHVWKHHIIHFWRIWKHHOHFWLRQDQGDQRWDU\SXEOLFRUWKH
3ODQ$GPLQLVWUDWRU RUKLVUHSUHVHQWDWLYH ZLWQHVVHVWKHVSRXVH
VFRQVHQW WKH
VSRXVHFRQVHQWVWRWKHDOWHUQDWHIRUPRISD\PHQWGHVLJQDWHGE\WKH0HPEHURUWR
DQ\FKDQJHLQWKDWGHVLJQDWHGIRUPRISD\PHQWDQG XQOHVVWKHVSRXVHLVWKH
0HPEHU
V VROH SULPDU\ %HQHILFLDU\ WKH VSRXVH FRQVHQWV WR WKH 0HPEHU
V
%HQHILFLDU\GHVLJQDWLRQRUWRDQ\FKDQJHLQWKH0HPEHU
V%HQHILFLDU\GHVLJQDWLRQ
7KHVSRXVH
VFRQVHQWWRDZDLYHURIWKHTXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\LV
LUUHYRFDEOH XQOHVV WKH 0HPEHU UHYRNHV WKH ZDLYHU HOHFWLRQ 7KHVSRXVH PD\
H[HFXWHDEODQNHWFRQVHQWWRDQ\IRUPRISD\PHQWGHVLJQDWLRQRUWRDQ\%HQHILFLDU\
GHVLJQDWLRQPDGHE\WKH0HPEHULIWKHVSRXVHDFNQRZOHGJHVWKHULJKWWROLPLWWKDW
FRQVHQWWRDVSHFLILFGHVLJQDWLRQEXWLQZULWLQJZDLYHVWKDWULJKW
F 7KH5HWLUHPHQW&RPPLWWHHPD\DFFHSWDVYDOLGDZDLYHUHOHFWLRQZKLFKGRHVQRW
VDWLVI\WKHVSRXVDOFRQVHQWUHTXLUHPHQWVLIWKH5HWLUHPHQW&RPPLWWHHHVWDEOLVKHV
WKH0HPEHUGRHVQRWKDYHDVSRXVHWKH5HWLUHPHQW&RPPLWWHHLVQRWDEOHWRORFDWH
WKH0HPEHU
VVSRXVHWKH0HPEHULVOHJDOO\VHSDUDWHGRUKDVEHHQDEDQGRQHG
ZLWKLQWKHPHDQLQJRI6WDWHODZ DQGWKH0HPEHUKDVDFRXUWRUGHUWRWKDWHIIHFW
RURWKHUFLUFXPVWDQFHVH[LVWXQGHUZKLFKWKH6HFUHWDU\RIWKH7UHDVXU\ZLOOH[FXVH
WKHFRQVHQWUHTXLUHPHQW,IWKH0HPEHU
VVSRXVHLVOHJDOO\LQFRPSHWHQWWRJLYH
FRQVHQWWKHVSRXVH
VOHJDOJXDUGLDQ HYHQLIWKHJXDUGLDQLVWKH0HPEHU PD\JLYH
FRQVHQW
Optional Forms of Distribution7KH0HPEHU
V1RQIRUIHLWDEOH$FFUXHG%HQHILWZLOOEH
SDLGDVHOHFWHGE\WKH0HPEHURULIDSSOLFDEOHE\WKH%HQHILFLDU\XQGHURQHRIWKH
RSWLRQDOIRUPVRIGLVWULEXWLRQSHUPLWWHGXQGHUWKLV$UWLFOH$Q\IRUPRISD\PHQWXQGHU
82
^ `
WKLV$UWLFOHPXVWEHWKH$FWXDULDO(TXLYDOHQWRIWKH0HPEHU¶VD FFUXHGEHQHILW7KHRSWLRQDO
IRUPVRIGLVWULEXWLRQDUH
D ,QVWDOOPHQWV3D\PHQWLQPRQWKO\TXDUWHUO\RUDQQXDOLQVWDOOPHQWVRYHUWKHOLIH
H[SHFWDQF\RIWKH0HPEHURUWKHMRLQWOLIHDQGODVWVXUYLYRUH[SHFWDQF\RIWKH
0HPEHUDQGKLVRUKHUGHVLJQDWHGEHQHILFLDU\
E /LIH$QQXLW\$VWUDLJKWOLIHDQQXLW\SD\DEOHQROHVVIUHTXHQWO\WKDQDQQXDOO\ZLWK
SD\PHQWRIWKH0HPEHU¶VDFFUXHGEHQHILWHQGLQJRQWKH0HPEHU¶VGHDWK
F /LIH$QQXLW\ZLWK7HUP&HUWDLQ$OLIHDQQXLW\SD\DEOHQROHVVIUHTXHQWO\WKDQ
DQQXDOO\ ZLWK D WHUP FHUWDLQ JXDUDQWHHG 7KH WHUP FHUWDLQ FDQQRW H[FHHG WKH
0HPEHU¶VOLIHH[SHFWDQF\RUWKHMRLQWOLIHDQGODVWVXUYLYRUH[SHFWDQF\RIWKH
0HPEHU DQG KLV RU KHU GHVLJQDWHG EHQHILFLDU\ ,I D 0HPEHU GLHVEHIRUH WKH
JXDUDQWHHG QXPEHU RI SD\PHQWV KDV EHHQ PDGH WKH 0HPEHU¶V GHVLJQDWHG
EHQHILFLDU\VKDOOUHFHLYHWKHVDPHPRQWKO\SD\PHQWVIRUWKHUHPDLQGHURIWKH
JXDUDQWHHGSHULRG
G -RLQWDQG6XUYLYRU$QQXLW\$MRLQWOLIHDQQXLW\SD\DEOHIRUWKHOLIHRIWKH0HPEHU
ZLWKDVXUYLYRUDQQXLW\SD\DEOHIRUWKHUHPDLQLQJOLIHRIDGHVLJQDWHGEHQHILFLDU\
ZKLFKLVDVSHFLILHGSHUFHQWDJH RU RIWKHDQQXLW\SD\DEOHGXULQJ
WKH0HPEHU¶VOLIH
Special Rules7KH5HWLUHPHQW&RPPLWWHHRQO\XSRQWKH0HPEHU
VZULWWHQUHTXHVWRULQ
WKHFDVHRIDGLVWULEXWLRQGHVFULEHGLQ6HFWLRQRQO\XSRQWKHZULWWHQUHTXHVWRIWKH
0HPEHU
VVSRXVHZLOOUHFDOFXODWHWKHDSSOLFDEOHOLIHH[SHFWDQF\SHULRGIRUSXUSRVHVRI
FDOFXODWLQJWKHPLQLPXPGLVWULEXWLRQDSSOLFDEOHWRDGLVWULEXWLRQFDOHQGDU\HDUIROORZLQJ
WKHILUVWGLVWULEXWLRQFDOHQGDU\HDU7KH0HPEHUPXVWPDNHDUHFDOFXODWLRQHOHFWLRQQRW
ODWHUWKDQKLV5HTXLUHG%HJLQQLQJ'DWH$VXUYLYLQJVSRXVHPXVWPDNHDUHFDOFXODWLRQ
HOHFWLRQQRODWHUWKDQWKH'HFHPEHUGDWHGHVFULEHGLQ6HFWLRQ E $UHFDOFXODWLRQ
HOHFWLRQDSSOLFDEOHWRDMRLQWOLIHH[SHFWDQF\SD\PHQWZKHUHWKHVXUYLYRULVDQRQVSRXVH
%HQHILFLDU\PD\QRWWDNHLQWRDFFRXQWDQ\DGMXVWPHQWWRDQ\OLIHH[SHFWDQF\RWKHUWKDQ
WKH0HPEHU
VOLIHH[SHFWDQF\DVSUHVFULEHGE\WKHDSSOLFDEOHUHJXODWLRQVXQGHU&RGH
D ,QWKHDEVHQFHRIDUHFDOFXODWLRQHOHFWLRQWKH3ODQGRHVQRWSHUPLWUHFDOFXODWLRQ
RIWKHDSSOLFDEOHOLIHH[SHFWDQF\IDFWRU
Distributions Under Domestic Relations Orders
D 1RWKLQJFRQWDLQHGLQWKLV3ODQZLOOSUHYHQWWKH3ODQIURPFRPSO\LQJZLWKWKH
SURYLVLRQVRIDTXDOLILHGGRPHVWLFUHODWLRQVRUGHU DVGHILQHGLQ&RGH S 7KH
5HWLUHPHQW&RPPLWWHHPD\DGRSWDQ\ZULWWHQSURFHGXUHVUHODWLQJWRDTXDOLILHG
GRPHVWLFUHODWLRQVRUGHUZKLFKWKH5HWLUHPHQW&RPPLWWHHGHHPVQHFHVVDU\IRU
SURSHUDGPLQLVWUDWLRQRIWKH3ODQ7KH3ODQGRHVQRWSHUPLWGLVWULEXWLRQWRDQ
DOWHUQDWHSD\HHXQGHUDTXDOLILHGGRPHVWLFUHODWLRQVRUGHUXQWLOWKH0HPEHUKDV
DWWDLQHGKLVHDUOLHVWUHWLUHPHQWDJH DVGHILQHGXQGHU&RGH S XQGHUWKH3ODQ
1RWKLQJLQWKLV$UWLFOHSHUPLWVD0HPEHUDULJKWWRUHFHLYHGLVWULEXWLRQDWDWLPH
RWKHUZLVHQRWSHUPLWWHGXQGHUWKH3ODQQRUGRHVLWSHUPLWWKHDOWHUQDWHSD\HHWR
UHFHLYHDIRUPRISD\PHQWQRWSHUPLWWHGXQGHUWKH3ODQ
E )RUSXUSRVHVRIDSSO\LQJ$UWLFOHDQG6HFWLRQWKH5HWLUHPHQW&RPPLWWHH
ZLOOWUHDWDIRUPHUVSRXVHDVWKH0HPEHU
VVSRXVHRUVXUYLYLQJVSRXVHWRWKHH[WHQW
83
^ `
SURYLGHG XQGHU D TXDOLILHG GRPHVWLF UHODWLRQV RUGHU 7KH VXUYLYRU DQQXLW\
UHTXLUHPHQWVRI6HFWLRQDQGWKHMRLQWDQGVXUYLYRUDQQXLW\UHTXLUHPHQWVRI
$UWLFOHDSSO\VHSDUDWHO\WRWKHSRUWLRQRIWKH0HPEHU
V1RQIRUIHLWDEOH$FFUXHG
%HQHILWVXEMHFWWRWKHTXDOLILHGGRPHVWLFUHODWLRQVRUGHUDQGWRWKHSRUWLRQRIWKH
0HPEHU
V1RQIRUIHLWDEOH$FFUXHG%HQHILWQRWVXEMHFWWRWKDWRUGHU
F 7KH5HWLUHPHQW&RPPLWWHHPXVWHVWDEOLVKUHDVRQDEOHSURFHGXUHVWRGHWHUPLQHWKH
TXDOLILHGVWDWXVRIDGRPHVWLFUHODWLRQVRUGHU8SRQUHFHLYLQJDGRPHVWLFUHODWLRQV
RUGHU WKH 5HWLUHPHQW &RPPLWWHH SURPSWO\ ZLOO QRWLI\ WKH 0HPEHU DQG DQ\
DOWHUQDWHSD\HHQDPHGLQWKHRUGHULQZULWLQJRIWKHUHFHLSWRIWKHRUGHUDQGWKH
3ODQ
V SURFHGXUHV IRU GHWHUPLQLQJ WKH TXDOLILHG VWDWXV RI WKH RUGHU :LWKLQ D
UHDVRQDEOH SHULRG RI WLPH DIWHU UHFHLYLQJ WKH GRPHVWLF UHODWLRQV RUGHU WKH
5HWLUHPHQW&RPPLWWHHPXVWGHWHUPLQHWKHTXDOLILHGVWDWXVRIWKHRUGHUDQGPXVW
QRWLI\WKH0HPEHUDQGHDFKDOWHUQDWHSD\HHLQZULWLQJRILWVGHWHUPLQDWLRQ7KH
5HWLUHPHQW&RPPLWWHHPXVWSURYLGHQRWLFHXQGHUWKLVSDUDJUDSKE\PDLOLQJWRWKH
LQGLYLGXDO
V DGGUHVV VSHFLILHG LQ WKH GRPHVWLF UHODWLRQV RUGHURULQDPDQQHU
FRQVLVWHQWZLWKDSSOLFDEOHODZ
G ,IDQ\SRUWLRQRIWKH0HPEHU
V1RQIRUIHLWDEOH$FFUXHG%HQHILWLVSD\DEOHGXULQJ
WKHSHULRGWKH5HWLUHPHQW&RPPLWWHHLVPDNLQJLWVGHWHUPLQDWLRQRIWKHTXDOLILHG
VWDWXVRIWKHGRPHVWLFUHODWLRQVRUGHUWKH5HWLUHPHQW&RPPLWWHHPXVWPDNHD
VHSDUDWH DFFRXQWLQJ RI WKH DPRXQWV SD\DEOH ,I WKH 5HWLUHPHQW &RPPLWWHH
GHWHUPLQHVWKHRUGHULVDTXDOLILHGGRPHVWLFUHODWLRQVRUGHUZLWKLQPRQWKVRIWKH
GDWHDPRXQWVILUVWDUHSD\DEOHIROORZLQJUHFHLSWRIWKHRUGHUWKH3ODQZLOOGLVWULEXWH
WKHSD\DEOHDPRXQWVLQDFFRUGDQFHZLWKWKHRUGHU,IWKH5HWLUHPHQW&RPPLWWHH
GRHVQRWPDNHLWVGHWHUPLQDWLRQRIWKHTXDOLILHGVWDWXVRIWKHRUGHUZLWKLQWKH
PRQWKGHWHUPLQDWLRQSHULRGWKH3ODQZLOOWRGLVWULEXWHWKHSD\DEOHDPRXQWVLQWKH
PDQQHUWKH3ODQZRXOGGLVWULEXWHLIWKHRUGHUGLGQRWH[LVWDQGZLOODSSO\WKHRUGHU
SURVSHFWLYHO\LIWKH5HWLUHPHQW&RPPLWWHHODWHUGHWHUPLQHVWKHRUGHULVDTXDOLILHG
GRPHVWLFUHODWLRQVRUGHU
H 7KH3ODQZLOOPDNHDQ\SD\PHQWVRUGLVWULEXWLRQVUHTXLUHGXQGHUWKLV$UWLFOHE\
VHSDUDWHEHQHILWFKHFNVRURWKHUVHSDUDWHGLVWULEXWLRQWRWKHDOWHUQDWHSD\HH
$UWLFOH 9HVWLQJ
100% Vesting Upon Certain Events$0HPEHU
V$FFUXHG%HQHILWLV1RQIRUIHLWDEOH
XSRQDQGDIWHUDWWDLQLQJ1RUPDO5HWLUHPHQW$JH LIHPSOR\HGRQRUDIWHUWKDWGDWH $
0HPEHU
V $FFUXHG %HQHILW LV 1RQIRUIHLWDEOH LI WKH 0HPEHU
V VHSDUDWLRQ IURP
6HUYLFHLVDUHVXOWRIGHDWKGLVDELOLW\RUHOLJLELOLW\IRUDQHDUO\UHWLUHPHQWSHQVLRQ
100% Vesting of Required Member Contributions(DFK0HPEHULVLPPHGLDWHO\
YHVWHGZLWKUHVSHFWWRKLV5HTXLUHG0HPEHU&RQWULEXWLRQV$0HPEHULVHQWLWOHGWRUHFHLYH
DUHWXUQRIKLV5HTXLUHG0HPEHU&RQWULEXWLRQVFRQWULEXWHGZKLOHD0HPEHUXQGHUWKH
PRQH\SXUFKDVHSODQSULRUWR2FWREHUXSRQWHUPLQDWLRQRIHPSOR\PHQWWRJHWKHU
ZLWKVLPSOHLQWHUHVWDWDUDWHHTXDOWRWKHLQWHUHVWUDWHRQ\HDU7UHDVXU\VHFXULWLHVDV
SXEOLVKHGLQWKH,QWHUQDO5HYHQXH%XOOHWLQGHWHUPLQHGDVRIWKHFDOHQGDUPRQWKSUHFHGLQJ
WKHILUVWGD\RIWKH3ODQ\HDUDQGHIIHFWLYH2FWREHUDUDWHHTXDOWRWKH86
84
^ `
7UHDVXU\'HSDUWPHQWORQJWHUPDYHUDJHUDWHSXEOLVKHGRQWKHODVWGD\RIWKHFDOHQGDU
PRQWKSUHFHGLQJWKHILUVWGD\RIWKH3ODQ\HDURUVXFKRWKHUUDWHWKDWPD\EHDSSURYHGE\
WKH867UHDVXU\'HSDUWPHQWWRUHSODFHWKH\HDU7UHDVXU\ERQGUDWHDVDEHQFKPDUN
IRUFDOFXODWLQJOXPSVXPSD\RXWVIURPGHILQHGEHQHILWSODQVLQOLHXRIDQ\RWKHUEHQHILW
XQGHUWKH3ODQ(IIHFWLYH>'$7(@5HTXLUHG0HPEHU&RQWULEXWLRQVVKDOOEHFUHGLWHGZLWK
LQWHUHVWDWDUDWHHTXDOWRWKHLQWHUHVWUDWHRQ\HDU7UHDVXU\6HFXULWLHVDVGHWHUPLQHGE\
WKH5HWLUHPHQW&RPPLWWHHDVRIWKHFDOHQGDUPRQWKSUHFHGLQJWKHILUVWGD\RIWKH3ODQ\HDU
7KHDPRXQWUHFHLYHGDVDGLVWULEXWLRQE\WKH0HPEHUVKDOOEHXVHGWRUHGXFHWKHDFFUXHG
EHQHILWLIDQ\DWKLVQRUPDOUHWLUHPHQWGDWH5HTXLUHG0HPEHUFRQWULEXWLRQVFRQWULEXWHG
RQDQGDIWHU2FWREHUDUHYHVWHGDQGVKDOOEHLQFOXGHGLQWKHGHIHUUHGYHVWHG
EHQHILWSD\DEOHWRWKH0HPEHUXSRQQRUPDOUHWLUHPHQWGDWH
Vesting Schedule prior to October 1, 20116XEMHFWWR6HFWLRQVDQGD0HPEHU
V
1RQIRUIHLWDEOHSHUFHQWDJHLQKLV$FFUXHG%HQHILWHTXDOVWKHSHUFHQWDJHLQWKHIROORZLQJ
VFKHGXOH
9HVWHG
<HDUVRI6HUYLFH 3HUFHQWDJH
/HVVWKDQ««««««««1RQH
«««««««««««
««««««««««««
««««««««««««
««««««««««««
RUPRUH««««««««
9HVWLQJ6FKHGXOHHIIHFWLYH2FWREHU(IIHFWLYH2FWREHUDQGVXEMHFWWR
6HFWLRQVDQGD0HPEHU
V1RQIRUIHLWDEOHSHUFHQWDJHLQKLV$FFUXHG%HQHILW
HTXDOVWKHSHUFHQWDJHLQWKHIROORZLQJVFKHGXOH
9HVWHG
<HDUVRI6HUYLFH 3HUFHQWDJH
/HVVWKDQ««««««««1RQH
RUPRUH«««««««««
1RWZLWKVWDQGLQJDQ\SURYLVLRQRIWKLV$UWLFOHWRWKHFRQWUDU\WKH$FFUXHG%HQHILWRID0HPEHU
RQ6HSWHPEHUVKDOOFRQWLQXHWRYHVWLQDFFRUGDQFHZLWK6HFWLRQ
Amendment to Vesting Schedule.7KRXJKWKH&LW\UHVHUYHVWKHULJKWWRDPHQGWKHYHVWLQJ
VFKHGXOHDWDQ\WLPHWKH5HWLUHPHQW&RPPLWWHHZLOOQRWDSSO\WKHDPHQGHGYHVWLQJ
VFKHGXOH WR UHGXFH WKH 1RQIRUIHLWDEOH SHUFHQWDJH RI DQ\ 0HPEHU
V $FFUXHG %HQHILW
GHWHUPLQHGDVRIWKHODWHURIWKHGDWHWKH&LW\DGRSWVWKHDPHQGPHQWRUWKHGDWHWKH
DPHQGPHQWEHFRPHVHIIHFWLYH WRDSHUFHQWDJHOHVVWKDQWKH1RQIRUIHLWDEOHSHUFHQWDJH
FRPSXWHGXQGHUWKH3ODQZLWKRXWUHJDUGWRWKHDPHQGPHQW$QDPHQGHGYHVWLQJVFKHGXOH
ZLOODSSO\WRD0HPEHURQO\LIWKH0HPEHUUHFHLYHVFUHGLWIRUDWOHDVWRQH+RXURI6HUYLFH
DIWHUWKHQHZVFKHGXOHEHFRPHVHIIHFWLYH
,IWKH&LW\PDNHVDSHUPLVVLEOHDPHQGPHQWWRWKHYHVWLQJVFKHGXOHHDFK0HPEHUKDYLQJ
DWOHDVW<HDUVRI6HUYLFHZLWKWKH&LW\PD\HOHFWWRKDYHWKHSHUFHQWDJHRIKLV
85
^ `
1RQIRUIHLWDEOH $FFUXHG %HQHILW FRPSXWHG XQGHU WKH 3ODQ ZLWKRXWUHJDUG WR WKH
DPHQGPHQW7KH0HPEHUPXVWILOHKLVHOHFWLRQZLWKWKH5HWLUHPHQW&RPPLWWHHZLWKLQ
GD\VRIWKHODWHVWRI WKH&LW\
VDGRSWLRQRIWKHDPHQGPHQW WKHHIIHFWLYHGDWHRIWKH
DPHQGPHQW RU KLVUHFHLSWRIDFRS\RIWKHDPHQGPHQW7KH5HWLUHPHQW&RPPLWWHHDV
VRRQDVSUDFWLFDEOHPXVWIRUZDUGDWUXHFRS\RIDQ\DPHQGPHQWWRWKHYHVWLQJVFKHGXOHWR
HDFKDIIHFWHG0HPEHUWRJHWKHUZLWKDQH[SODQDWLRQRIWKHHIIHFWRIWKHDPHQGPHQWWKH
DSSURSULDWHIRUPXSRQZKLFKWKH0HPEHUPD\PDNHDQHOHFWLRQWRUHPDLQXQGHUWKH
YHVWLQJVFKHGXOHSURYLGHGXQGHUWKH3ODQSULRUWRWKHDPHQGPHQWDQGQRWLFHRIWKHWLPH
ZLWKLQ ZKLFK WKH 0HPEHU PXVW PDNH DQ HOHFWLRQ WR UHPDLQ XQGHU WKH SULRU YHVWLQJ
VFKHGXOH7KHYHVWLQJVFKHGXOHHOHFWLRQGRHVQRWDSSO\WRD0HPEHULIWKHDPHQGHGYHVWLQJ
VFKHGXOHSURYLGHVIRUYHVWLQJDWOHDVWDVUDSLGDWDOOWLPHVDVWKHYHVWLQJVFKHGXOHLQHIIHFW
SULRUWRWKHDPHQGPHQW
Forfeiture for Cause$Q\0HPEHUZKRLVFRQYLFWHGRIWKHDQ\RIWKHIROORZLQJRIIHQVHV
FRPPLWWHG SULRU WR UHWLUHPHQW RU ZKRVH HPSOR\PHQW LV WHUPLQDWHG E\ UHDVRQ RI KLV
DGPLWWHGFRPPLVVLRQDLGRUDEHWPHQWRIWKHIROORZLQJVSHFLILHGRIIHQVHVVKDOOIRUIHLWDOO
ULJKWVDQGEHQHILWVXQGHUWKLV3ODQH[FHSWIRUWKHUHWXUQRIKLVDFFXPXODWHG0HPEHU
&RQWULEXWLRQVDVRIWKHGDWHRIWHUPLQDWLRQ
D 6SHFLILHGRIIHQVHVDUHDVIROORZV
WKHFRPPLWWLQJDLGLQJRUDEHWWLQJRIDQHPEH]]OHPHQWRISXEOLFIXQGV
WKHFRPPLWWLQJDLGLQJRUDEHWWLQJRIDQ\WKHIWE\DSXEOLFRIILFHURUHPSOR\HH
IURPWKHHPSOR\HU
EULEHU\LQFRQQHFWLRQZLWKWKHHPSOR\PHQWRIDSXEOLFRIILFHURUHPSOR\HH
DQ\IHORQ\VSHFLILHGLQ&KDSWHU)ORULGD6WDWXWHV
WKHFRPPLWWLQJRIDQLPSHDFKDEOHRIIHQVH
WKHFRPPLWWLQJRIDQ\IHORQ\E\DSXEOLFRIILFHURUHPSOR\HHZKRZLOOIXOO\
DQGZLWKLQWHQWWRGHIUDXGWKHSXEOLFRUWKHSXEOLFDJHQF\IRUZKLFKKHDFWV
RULQZKLFKKHLVHPSOR\HGRIWKHULJKWWRUHFHLYHWKHIDLWKIXOSHUIRUPDQFHRI
KLVGXW\DVDSXEOLFRIILFHURUHPSOR\HHUHDOL]HVRUREWDLQVRUDWWHPSWVWR
REWDLQ D SURILW JDLQ RU DGYDQWDJH IRU KLPVHOI RU IRU VRPH RWKHU SHUVRQ
WKURXJKWKHXVHRUDWWHPSWHGXVHRIWKHSRZHUULJKWVSULYLOHJHVGXWLHVRU
SRVLWLRQRIKLVSXEOLFRIILFHRUHPSOR\PHQWSRVLWLRQ
WKHFRPPLWWLQJRQRUDIWHU2FWREHURIDQ\IHORQ\GHILQHGLQ6HFWLRQ
)ORULGD6WDWXWHVDJDLQVWDYLFWLP\RXQJHUWKDQVL[WHHQ \HDUVRI
DJHRUDQ\IHORQ\GHILQHGLQ&KDSWHU )ORULGD6WDWXWHVDJDLQVWDYLFWLP
\RXQJHUWKDQHLJKWHHQ \HDUVRIDJHE\DSXEOLFRIILFHURUHPSOR\HH
WKURXJK WKH XVH RU DWWHPSWHG XVH RI SRZHU ULJKWV SULYLOHJHVGXWLHV RU
SRVLWLRQRIKLVRUKHURIILFHRUHPSOR\PHQWSRVLWLRQ
E &RQYLFWLRQVKDOOEHGHILQHGDVDQDGMXGLFDWLRQRIJXLOWE\DFRXUWRIFRPSHWHQW
MXULVGLFWLRQ DSOHDRIJXLOW\RUDQRORFRQWHQGHUH DMXU\YHUGLFWRIJXLOW\ZKHQ
DGMXGLFDWLRQRIJXLOWLVZLWKKHOGDQGWKHDFFXVHGLVSODFHGRQSUREDWLRQ RUD
FRQYLFWLRQE\WKH6HQDWHRIDQLPSHDFKDEOHRIIHQVH
F &RXUWVKDOOEHGHILQHGDVDQ\VWDWHRUIHGHUDOFRXUWRIFRPSHWHQWMXULVGLFWLRQZKLFK
86
^ `
LV H[HUFLVLQJ LWV MXULVGLFWLRQ WR FRQVLGHU D SURFHHGLQJ LQYROYLQJ WKH DOOHJHG
FRPPLVVLRQRIDVSHFLILHGRIIHQVH3ULRUWRIRUIHLWXUHWKH%RDUGVKDOOKROGD
KHDULQJRQZKLFKQRWLFHVKDOOEHJLYHQWRWKH3DUWLFLSDQWZKRVHEHQHILWVDUHEHLQJ
FRQVLGHUHGIRUIRUIHLWXUH6DLG3DUWLFLSDQWVKDOOEHDIIRUGHGWKHULJKWWRKDYHDQ
DWWRUQH\SUHVHQW1RIRUPDOUXOHVRIHYLGHQFHVKDOODSSO\EXWWKH3DUWLFLSDQWVKDOO
EHDIIRUGHGDIXOORSSRUWXQLW\WRSUHVHQWKLVFDVHDJDLQVWIRUIHLWXUH
G $Q\0HPEHUZKRKDVUHFHLYHGEHQHILWVIURPWKH3ODQLQH[FHVVRIKLVDFFXPXODWHG
0HPEHU&RQWULEXWLRQVDIWHUWKH0HPEHU
VULJKWVZHUHIRUIHLWHGSXUVXDQWWRWKLV
$UWLFOHVKDOOEHUHTXLUHGWRSD\EDFNWRWKH)XQGWKHDPRXQWRIWKHEHQHILWVUHFHLYHG
LQ H[FHVV RI KLV DFFXPXODWHG &RQWULEXWLRQV 7KH 5HWLUHPHQW &RPPLWWHH PD\
LPSOHPHQWDOOOHJDODFWLRQQHFHVVDU\WRUHFRYHUVXFKIXQGV
Year of Service - Vesting.)RUSXUSRVHVRIYHVWLQJXQGHUWKLV$UWLFOH<HDURI6HUYLFHPHDQV
DQ\3ODQ<HDUGXULQJZKLFKDQ(PSOR\HHFRPSOHWHVQRWOHVVWKDQ+RXUVRI6HUYLFH
$<HDURI6HUYLFHLQFOXGHVDQ\<HDURI6HUYLFHHDUQHGSULRUWRWKH(IIHFWLYH'DWHRIWKH
3ODQH[FHSWDVSURYLGHGLQ6HFWLRQ
Break in Service - Vesting)RUSXUSRVHVRIWKLV$UWLFOHD0HPEHULQFXUVD%UHDNLQ
6HUYLFHLIGXULQJDQ\3ODQ<HDUKHGRHVQRWFRPSOHWHPRUHWKDQ+RXUVRI6HUYLFH
ZLWKWKH&LW\
Included Years of Service - Vesting)RUSXUSRVHVRIGHWHUPLQLQJ<HDUVRI6HUYLFHXQGHU
6HFWLRQWKH3ODQWDNHVLQWRDFFRXQWDOO<HDUVRI4XDOLILHG6HUYLFHFUHGLWHGWRD
0HPEHUSXUVXDQWWR6HFWLRQ F DQGDOO<HDUVRI6HUYLFHDQ(PSOR\HHFRPSOHWHVZLWK
WKH&LW\H[FHSW
D $Q\<HDURI6HUYLFHFRPSOHWHGEHIRUHD%UHDNLQ6HUYLFHXQOHVVWKH(PSOR\HH
FRPSOHWHVD<HDURI6HUYLFHDIWHUWKH%UHDNLQ6HUYLFH7KLV%UHDNLQ6HUYLFHUXOH
ZLOOQRWRSHUDWHWRUHFUHGLWDQ\<HDURI6HUYLFHGLVUHJDUGHGXQGHUVXEVHFWLRQ E
E $Q\<HDURI6HUYLFHFRPSOHWHGEHIRUHD%UHDNLQ6HUYLFHLIWKHQXPEHURIWKH
0HPEHU
VFRQVHFXWLYH%UHDNVLQ6HUYLFHHTXDOVRIH[FHHGVWKHJUHDWHURIRUWKH
DJJUHJDWHQXPEHURIWKH<HDUVRI6HUYLFHSULRUWRWKH%UHDN7KLV%UHDNLQ6HUYLFH
UXOHDSSOLHVRQO\LIWKH0HPEHULVYHVWHGLQKLV$FFUXHG%HQHILWGHULYHGIURP
HPSOR\HUFRQWULEXWLRQVDWWKHWLPHKHKDVD%UHDNLQ6HUYLFH)XUWKHUPRUHWKH
DJJUHJDWHQXPEHURI<HDUVRI6HUYLFHEHIRUHD%UHDNLQ6HUYLFHGRHVQRWLQFOXGH
DQ\<HDUVRI6HUYLFHQRWUHTXLUHGWREHWDNHQLQWRDFFRXQWXQGHUWKLVH[FHSWLRQE\
UHDVRQRIDQ\SULRU%UHDNLQ6HUYLFH,IWKH5HWLUHPHQW&RPPLWWHH5HWLUHPHQW
&RPPLWWHHGLVUHJDUGVWKH0HPEHU
V<HDUVRI6HUYLFHXQGHUWKLVH[FHSWLRQWKH3ODQ
IRUIHLWVKLVSUH%UHDNLQ6HUYLFH$FFUXHG%HQHILW
F $Q\<HDURI6HUYLFHEHIRUHWKH3ODQ<HDULQZKLFKWKH0HPEHUDWWDLQHGWKHDJHRI
Disregard of Accrued Benefit
D Cash-Out Distribution,IDSDUWLDOO\YHVWHG0HPEHUUHFHLYHVDFDVKRXWSD\PHQWRI
KLVHQWLUH1RQIRUIHLWDEOH$FFUXHG%HQHILWWKH5HWLUHPHQW&RPPLWWHHZLOOGLVUHJDUGWKH
0HPEHU
V$FFUXHG%HQHILWGHWHUPLQHGDVRIWKHGDWHRIWKHFDVKRXWGLVWULEXWLRQ$
SDUWLDOO\YHVWHG0HPEHUZKRLVUHHPSOR\HGE\WKH&LW\DIWHUUHFHLYLQJDFDVKRXW
GLVWULEXWLRQKDVWKHULJKWWRUHSD\WKH7UXVWHHWKHHPSOR\HUGHULYHGSRUWLRQRIWKH
87
^ `
FDVKRXWGLVWULEXWLRQKHUHFHLYHGSURYLGHGKLVUHSD\PHQWULJKWKDVQRWH[SLUHG7KH
0HPEHU
V UHSD\PHQW PXVW LQFOXGH LQWHUHVW DW WKH UDWH GHWHUPLQHG XQGHU &RGH
F & RUXQGHUDVXFFHVVRUWRWKDW&RGHVHFWLRQ FDOFXODWHGIURPWKHGDWHRI
WKHFDVKRXWGLVWULEXWLRQ$0HPEHU
VULJKWWRPDNHUHSD\PHQWH[SLUHVRQWKHHDUOLHU
RI WKHGDWH\HDUVDIWHUWKH0HPEHU
VILUVWUHHPSOR\PHQWGDWHZLWKWKH&LW\
IROORZLQJWKHFDVKRXWGLVWULEXWLRQ RU WKHODVWGD\RIWKHILUVW%UHDNLQ6HUYLFH
3HULRGHQGLQJDIWHUWKHFDVKRXWGLVWULEXWLRQ$%UHDNLQ6HUYLFH3HULRGLVDSHULRGRI
FRQVHFXWLYH3ODQ<HDUVLQZKLFKWKH0HPEHULQFXUVD%UHDNLQ6HUYLFH
E Restoration of Accrued Benefit,ISULRUWRWKHH[SLUDWLRQRIWKHUHSD\PHQWSHULRGD
UHHPSOR\HG0HPEHUPDNHVUHSD\PHQWLQDFFRUGDQFHZLWKWKHWHUPVRIWKLV$UWLFOH
WKH5HWLUHPHQW&RPPLWWHHZLOOUHVWRUHWKH0HPEHU
V$FFUXHG%HQHILWGLVUHJDUGHG
XQGHUWKLV$UWLFOH
F 0% Vested Member$YHVWHG0HPEHULVD0HPEHUZKRVH$FFUXHG%HQHILWLV
HQWLUHO\IRUIHLWDEOHDWWKHWLPHRIKLV6HSDUDWLRQIURP6HUYLFH8QGHUWKHGHHPHGFDVK
RXWUXOHWKH5HWLUHPHQW&RPPLWWHHZLOOWUHDWWKHYHVWHG0HPEHUDVKDYLQJUHFHLYHG
DFDVKRXWGLVWULEXWLRQRQWKHGDWHRIWKH0HPEHU
V6HSDUDWLRQIURP6HUYLFH)RU
SXUSRVHV RI DSSO\LQJ WKH UHVWRUDWLRQ SURYLVLRQV RI WKLV $UWLFOH WKH 5HWLUHPHQW
&RPPLWWHHZLOOWUHDWWKHYHVWHG0HPEHUDVUHSD\LQJKLVFDVKRXWGLVWULEXWLRQ
SOXVWKHUHTXLUHGLQWHUHVW RQWKHILUVWGDWHRIKLVUHHPSOR\PHQWZLWKWKH&LW\
$UWLFOH 'HDWKSULRUWRUHWLUHPHQW
Pre-Retirement Death Benefit,ID0HPEHUGLHVSULRUWRFRPPHQFHPHQWRIDQRUPDO
UHWLUHPHQWSHQVLRQGHIHUUHGYHVWHGSHQVLRQRUHDUO\UHWLUHPHQWSHQVLRQKLV%HQHILFLDU\
ZLOOUHFHLYHDGHDWKEHQHILWHTXDOWRWKHSUHVHQWYDOXHRIWKH0HPEHU
V1RQIRUIHLWDEOH
$FFUXHG%HQHILW7KH7UXVWHHZLOOPDNHSD\PHQWRUFRPPHQFHSD\PHQWRIWKHGHFHDVHG
0HPEHU¶VGHDWKEHQHILWLQDFFRUGDQFHZLWK$UWLFOHDQG6HFWLRQ
Preretirement survivor annuity. ,IDPDUULHG0HPEHUGLHVSULRUWRKLVDQQXLW\VWDUWLQJGDWH
WKH5HWLUHPHQW&RPPLWWHHZLOOGLUHFWWKH7UXVWHHWRGLVWULEXWHWRWKH0HPEHU
VVXUYLYLQJ
VSRXVHDSUHUHWLUHPHQWVXUYLYRUDQQXLW\XQOHVVWKH0HPEHUKDVDYDOLGZDLYHUHOHFWLRQ DV
GHVFULEHGLQ6HFWLRQ LQHIIHFWRUXQOHVVWKH0HPEHUDQGKLVVSRXVHZHUHQRWPDUULHG
WKURXJKRXWWKHRQH\HDUSHULRGHQGLQJRQWKHGDWHRIKLVGHDWK
D Preretirement Survivor Annuity 'HILQHG $ SUHUHWLUHPHQW VXUYLYRUDQQXLW\ LV D
VWUDLJKW OLIH DQQXLW\ SD\DEOH QR OHVV IUHTXHQWO\ WKDQ DQQXDOO\ IRU WKH OLIH RI WKH
VXUYLYLQJVSRXVH
E Present Value Not Greater Than $3,500.,IWKHSUHVHQWYDOXHRIWKHSUHUHWLUHPHQW
VXUYLYRUDQQXLW\LVQRWJUHDWHUWKDQWKH7UXVWHHZLOODXWRPDWLFDOO\PDNHWKH
GLVWULEXWLRQLQDOXPSVXPLQOLHXRIWKHSUHUHWLUHPHQWVXUYLYRUDQQXLW\,IWKHSUHVHQW
YDOXHRIWKHSUHUHWLUHPHQWVXUYLYRUDQQXLW\H[FHHGVEXWLVQRWJUHDWHUWKDQ
WKH7UXVWHHZLOOPDNHWKHGLVWULEXWLRQLQDOXPSVXPLQOLHXRIWKHSUHUHWLUHPHQW
VXUYLYRUDQQXLW\XSRQUHFHLSWRIWKH%HQHILFLDU\¶VZULWWHQHOHFWLRQWRUHFHLYHDOXPS
VXP7KHGLVWULEXWLRQPXVWRFFXURQRUEHIRUHWKHDQQXLW\VWDUWLQJGDWH
F Surviving Spouse Elections,IWKHSUHVHQWYDOXHRIWKHSUHUHWLUHPHQWVXUYLYRUDQQXLW\
H[FHHGV WKH 0HPEHU
V VXUYLYLQJ VSRXVH PD\ HOHFW WR KDYHWKH7UXVWHH
88
^ `
FRPPHQFHSD\PHQWRIWKHSUHUHWLUHPHQWVXUYLYRUDQQXLW\DVRIWKHILUVWGD\RIDQ\
PRQWKIROORZLQJWKH0HPEHU
VGHDWKEXWQRWODWHUWKDQWKHDSSOLFDEOHPDQGDWRU\
GLVWULEXWLRQSHULRGGHVFULEHGLQ$UWLFOH$VXUYLYLQJVSRXVHDOVRPD\HOHFWDQ\IRUP
RISD\PHQWGHVFULEHGLQ$UWLFOHLQOLHXRIWKHSUHUHWLUHPHQWVXUYLYRUDQQXLW\ RWKHU
WKDQDMRLQWDQGVXUYLYRUDQQXLW\ ,QWKHDEVHQFHRIDQHOHFWLRQE\WKHVXUYLYLQJVSRXVH
WKH 5HWLUHPHQW &RPPLWWHH ZLOO GLUHFW WKH 7UXVWHH WR GLVWULEXWHWKH SUHUHWLUHPHQW
VXUYLYRUDQQXLW\DVVRRQDVDGPLQLVWUDWLYHO\SUDFWLFDEOHIROORZLQJWKHFORVHRIWKH3ODQ
<HDULQZKLFKWKHODWHVWRIWKHIROORZLQJHYHQWVRFFXUV WKH0HPEHU
VGHDWK WKH
GDWHWKH5HWLUHPHQW&RPPLWWHHUHFHLYHVQRWLILFDWLRQRIRURWKHUZLVHFRQILUPVWKH
0HPEHU
VGHDWK RU WKHGDWHWKH0HPEHUZRXOGKDYHDWWDLQHG1RUPDO5HWLUHPHQW
$JH
G Special Rules.,IWKH0HPEHU
VVXUYLYLQJVSRXVHGLHVSULRUWRWKHFRPPHQFHPHQWRI
WKHSUHUHWLUHPHQWVXUYLYRUDQQXLW\WKH3ODQZLOOQRWSD\WKHSUHUHWLUHPHQWVXUYLYRU
DQQXLW\DQGWKH5HWLUHPHQW&RPPLWWHHZLOOGHWHUPLQHWKH0HPEHU
VGHDWKEHQHILW
SXUVXDQWWRVXEVHFWLRQ D
$UWLFOH 0LVFHOODQHRXV3URYLVLRQV$IIHFWLQJWKH3D\PHQWRI%HQHILWV
Nonduplication of Benefits,QWKHHYHQWDQ\SDUWRUDOORID0HPEHU
V$FFUXHG%HQHILWLV
GLVWULEXWHG WR D 0HPEHU DQG WKH 0HPEHU ODWHU UHVXPHV DFWLYH HPSOR\PHQW ZLWK WKH
(PSOR\HUWKH7UXVWHHZLOOFRPSXWHWKH0HPEHU
V$FFUXHG%HQHILWE\WDNLQJLQWRDFFRXQW
DOO RI WKH 0HPEHU
V <HDUV RI $FFUXDO 6HUYLFH +RZHYHU WKH 7UXVWHHZLOORIIVHWWKH
0HPEHU
V$FFUXHG%HQHILWVRFRPSXWHGE\WKH0HPEHU
V$FFUXHG%HQHILWDWWULEXWDEOHWR
DQ\GLVWULEXWLRQWKH7UXVWHHKDVPDGHWRWKH0HPEHU RWKHUWKDQDFDVKRXWGLVWULEXWLRQ
,IWKHGLVWULEXWLRQZDVDFDVKRXWGLVWULEXWLRQWKH7UXVWHHZLOORIIVHWWKH0HPEHU
V$FFUXHG
%HQHILWE\WKH$FFUXHG%HQHILWGLVUHJDUGHGXQGHU6HFWLRQ
No Disregard of Service)RUSXUSRVHVRIFRPSXWLQJ<HDUVRI6HUYLFHWKH3ODQGRHVQRW
GLVUHJDUG<HDUVRI6HUYLFHZLWKUHVSHFWWRZKLFKD0HPEHUKDVUHFHLYHGDGLVWULEXWLRQRI
KLV$FFUXHG%HQHILW
$UWLFOH 2WKHU3URYLVLRQV$IIHFWLQJ%HQHILWV
Assignment or Alienation6XEMHFWWR&RGH S UHODWLQJWRTXDOLILHGGRPHVWLFUHODWLRQV
RUGHUV QHLWKHUD0HPEHUQRUD%HQHILFLDU\PD\DQWLFLSDWHDVVLJQRUDOLHQDWH HLWKHUDWODZ
RULQHTXLW\ DQ\EHQHILWSURYLGHGXQGHUWKH3ODQDQGWKH7UXVWHHZLOOQRWUHFRJQL]HDQ\
VXFKDQWLFLSDWLRQDVVLJQPHQWRUDOLHQDWLRQ)XUWKHUPRUHDEHQHILWXQGHUWKH3ODQLVQRW
VXEMHFWWRDWWDFKPHQWJDUQLVKPHQWOHY\H[HFXWLRQRURWKHUOHJDORUHTXLWDEOHSURFHVV
Distribution Upon Termination of Trust,IWKH(PSOR\HUWHUPLQDWHVWKH3ODQWKH7UXVWHH
ZLOOGHWHUPLQHWKHYDOXHRIWKH7UXVW)XQGDVRIWKHEXVLQHVVGD\QH[WIROORZLQJWKHGDWH
RIVXFKWHUPLQDWLRQ
Allocation of Assets8SRQWHUPLQDWLRQRIWKH3ODQWKH5HWLUHPHQW&RPPLWWHHVKDOOGLUHFW
WKH7UXVWHHWRDOORFDWHWKHDVVHWVRIWKH3ODQLQDQRQGLVFULPDWRU\PDQQHUDQGLQDFFRUGDQFH
ZLWKDOODSSOLFDEOHUHJXODWLRQV$Q\UHVLGXDODVVHWVUHPDLQLQJDIWHUVDWLVIDFWLRQRIDOO
EHQHILWOLDELOLWLHVVKDOOEHGLVWULEXWHGLQDFFRUGDQFHZLWK6HFWLRQ
89
^ `
Overfunding,IWKH(PSOR\HUKDVRYHUIXQGHGWKH3ODQDWWKHWLPHLWWHUPLQDWHVWKH3ODQ
WKH3ODQPXVWUHWXUQWKHDPRXQWE\ZKLFKWKH(PSOR\HUKDVRYHUIXQGHGWKH3ODQWRWKH
(PSOR\HUH[FHSWWRWKHH[WHQWWKH3ODQDOORFDWHVVXUSOXVDVVHWVWRWKH0HPEHUVSXUVXDQW
WRZULWWHQSURFHGXUHV LQFOXGLQJDQ\QHFHVVDU\3ODQDPHQGPHQWV DGRSWHGE\WKH(PSOR\HU
LQFLGHQWWRWKH3ODQ
VWHUPLQDWLRQ7KH(PSOR\HUPXVWVWDWHE\ZULWWHQUHTXHVWWRWKH
5HWLUHPHQW&RPPLWWHHWKHDPRXQWRIWKHRYHUIXQGLQJLWZLVKHVWKH3ODQWRUHWXUQWRLWDIWHU
VDWLVI\LQJDOOOLDELOLWLHVXQGHUWKHWHUPLQDWHG3ODQ
$UWLFOH (PSOR\HU$GPLQLVWUDWLYH3URYLVLRQV
Information to Committee7KH&LW\ZLOOVXSSO\FXUUHQWLQIRUPDWLRQWRWKH5HWLUHPHQW
&RPPLWWHHDVWRWKHQDPHGDWHRIELUWKGDWHRIHPSOR\PHQWDQQXDOFRPSHQVDWLRQOHDYHV
RIDEVHQFH<HDUVRI6HUYLFHDQGGDWHRIWHUPLQDWLRQRIHPSOR\PHQWRIHDFK(PSOR\HH
ZKRLVRUZKRZLOOEHHOLJLEOHWREHFRPHD0HPEHUXQGHUWKH3ODQWRJHWKHUZLWKDQ\
RWKHULQIRUPDWLRQZKLFKWKH5HWLUHPHQW&RPPLWWHHFRQVLGHUVQHFHVVDU\
Indemnity of Plan Administrator and Committee7RWKHH[WHQWSHUPLWWHGXQGHUDSSOLFDEOH
ODZWKH(PSOR\HULQGHPQLILHVDQGVDYHVKDUPOHVVWKH3ODQ$GPLQLVWUDWRUWKHPHPEHUVRI
WKH5HWLUHPHQW&RPPLWWHHDQGWKH7UXVWHHDQGHDFKRIWKHPIURPDQGDJDLQVWDQ\DQG
DOOORVVUHVXOWLQJIURPOLDELOLW\WRZKLFKWKH3ODQ$GPLQLVWUDWRUWKH5HWLUHPHQW&RPPLWWHH
RUWKHPHPEHUVRIWKH5HWLUHPHQW&RPPLWWHHDQGWKH7UXVWHHPD\EHVXEMHFWHGE\UHDVRQ
RIDQ\DFWRUFRQGXFW H[FHSWZLOOIXOPLVFRQGXFWRUJURVVQHJOLJHQFH LQWKHLURIILFLDO
FDSDFLWLHV LQ WKH DGPLQLVWUDWLRQ RI WKLV 7UXVW RU 3ODQ RU ERWK LQFOXGLQJ DOO H[SHQVHV
UHDVRQDEO\LQFXUUHGLQWKHLUGHIHQVHLQFDVHWKH(PSOR\HUIDLOVWRSURYLGHVXFKGHIHQVH
$UWLFOH0HPEHU$GPLQLVWUDWLYH3URYLVLRQV
Beneficiary Designation$Q\0HPEHUPD\IURPWLPHWRWLPHGHVLJQDWHLQZULWLQJDQ\
SHUVRQRUSHUVRQVDVEHQHILFLDU\7KH5HWLUHPHQW&RPPLWWHHZLOOSUHVFULEHWKHIRUPIRU
WKHZULWWHQGHVLJQDWLRQRI%HQHILFLDU\DQGXSRQWKH0HPEHU
VILOLQJWKHIRUPZLWKWKH
5HWLUHPHQW&RPPLWWHHWKHIRUPHIIHFWLYHO\UHYRNHVDOOGHVLJQDWLRQVILOHGSULRUWRWKDWGDWH
E\WKHVDPH0HPEHU,QWKHDEVHQFHRIVSRXVDOFRQVHQWWRWKH0HPEHU
V%HQHILFLDU\
GHVLJQDWLRQDQ\ZDLYHURIWKHTXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\RURIWKHSUHUHWLUHPHQW
VXUYLYRUDQQXLW\LVQRWYDOLG
No Beneficiary Designation/Death of Beneficiary,ID0HPEHUIDLOVWRQDPHD%HQHILFLDU\
LQDFFRUGDQFHZLWK6HFWLRQRULIWKH%HQHILFLDU\QDPHGE\D0HPEHUSUHGHFHDVHV
KLPWKHQWKH7UXVWHHZLOOSD\WKHGHDWKEHQHILWLQDFFRUGDQFHZLWK$UWLFOHLQWKH
IROORZLQJRUGHURISULRULW\WR
D 7KH0HPEHU
VVXUYLYLQJVSRXVH
E 7KH0HPEHU
VVXUYLYLQJFKLOGUHQLQFOXGLQJDGRSWHGFKLOGUHQLQHTXDOVKDUHV
F 7KH0HPEHU
VVXUYLYLQJSDUHQWVLQHTXDOVKDUHV RU
G 7KHOHJDOUHSUHVHQWDWLYHRIWKH0HPEHU
VHVWDWH
,IWKH%HQHILFLDU\GRHVQRWSUHGHFHDVHWKH0HPEHUEXWGLHVSULRUWRGLVWULEXWLRQRIKLV
VKDUHRIWKH0HPEHU
VHQWLUHGHDWKEHQHILWWKHUHPDLQLQJGHDWKEHQHILWZLOOEHSDLGWRWKH
90
^ `
%HQHILFLDU\
VHVWDWHXQOHVVWKH0HPEHU
V%HQHILFLDU\GHVLJQDWLRQSURYLGHVRWKHUZLVH
Personal Data to Committee(DFK0HPEHUDQGHDFK%HQHILFLDU\RIDGHFHDVHG0HPEHU
PXVWIXUQLVKWRWKH5HWLUHPHQW&RPPLWWHHVXFKHYLGHQFHGDWDRULQIRUPDWLRQDVWKH
5HWLUHPHQW&RPPLWWHHFRQVLGHUVQHFHVVDU\RUGHVLUDEOHIRUWKHSXUSRVHRIDGPLQLVWHULQJ
WKH3ODQ7KHSURYLVLRQVRIWKLV3ODQDUHHIIHFWLYHIRUWKHEHQHILWRIHDFK0HPEHUXSRQWKH
FRQGLWLRQ SUHFHGHQW WKDW HDFK 0HPEHU ZLOO IXUQLVK SURPSWO\ IXOO WUXH DQG FRPSOHWH
HYLGHQFHGDWDDQGLQIRUPDWLRQZKHQUHTXHVWHGE\WKH5HWLUHPHQW&RPPLWWHHSURYLGHGWKH
5HWLUHPHQW&RPPLWWHHDGYLVHVHDFK0HPEHURIWKHHIIHFWRIKLVIDLOXUHWRFRPSO\ZLWKLWV
UHTXHVW
Address for Notification(DFK0HPEHUDQGHDFK%HQHILFLDU\RIDGHFHDVHG0HPEHUPXVW
ILOHZLWKWKH5HWLUHPHQW&RPPLWWHHIURPWLPHWRWLPHLQZULWLQJKLVSRVWRIILFHDGGUHVV
DQGDQ\FKDQJHRISRVWRIILFHDGGUHVV$Q\FRPPXQLFDWLRQVWDWHPHQWRUQRWLFHDGGUHVVHG
WRD0HPEHURU%HQHILFLDU\DWKLVODVWSRVWRIILFHDGGUHVVILOHGZLWKWKH5HWLUHPHQW
&RPPLWWHHRUDVVKRZQRQWKHUHFRUGVRIWKH(PSOR\HUELQGVWKH0HPEHURU%HQHILFLDU\
IRUDOOSXUSRVHVRIWKLV3ODQ
Notice of Change in Terms 7KH 3ODQ $GPLQLVWUDWRU ZLWKLQ WKH WLPH SUHVFULEHG E\
DSSOLFDEOHODZPXVWIXUQLVKDOO0HPEHUVDQG%HQHILFLDULHVDVXPPDU\SODQGHVFULSWLRQ
DQGDOORWKHULQIRUPDWLRQUHTXLUHGE\DSSOLFDEOHODZ
Litigation Against the Trust $ FRXUW RI FRPSHWHQW MXULVGLFWLRQ PD\ DXWKRUL]H DQ\
DSSURSULDWHHTXLWDEOHUHOLHIWRHQIRUFHDQ\SURYLVLRQVRIDSSOLFDEOHODZRUWKHWHUPVRIWKH
3ODQ$ILGXFLDU\PD\UHFHLYHUHLPEXUVHPHQWRIH[SHQVHVSURSHUO\DQGDFWXDOO\LQFXUUHG
LQWKHSHUIRUPDQFHRIKLVGXWLHVZLWKWKH3ODQ
Information Available$Q\0HPEHULQWKH3ODQRUDQ\%HQHILFLDU\PD\H[DPLQHFRSLHV
RIWKHSODQGHVFULSWLRQWKLV3ODQDQG7UXVWRUDQ\RWKHULQVWUXPHQWXQGHUZKLFKWKH3ODQ
ZDVHVWDEOLVKHGRULVRSHUDWHG7KH3ODQ$GPLQLVWUDWRUZLOOPDLQWDLQDOORIWKHLWHPVOLVWHG
LQWKLVVXEVHFWLRQLQKLVRIILFHRULQVXFKRWKHUSODFHRUSODFHVDVKHPD\GHVLJQDWHIURP
WLPHWRWLPHIRUH[DPLQDWLRQGXULQJUHDVRQDEOHEXVLQHVVKRXUV8SRQWKHZULWWHQUHTXHVW
RID0HPEHURU%HQHILFLDU\WKH3ODQ$GPLQLVWUDWRUPXVWIXUQLVKKLPZLWKDFRS\RIDQ\
LWHPOLVWHGLQWKLVVXEVHFWLRQ7KH3ODQ$GPLQLVWUDWRUPD\PDNHDUHDVRQDEOHFKDUJHWRWKH
UHTXHVWLQJSHUVRQIRUWKHFRS\VRIXUQLVKHG
Appeal Procedure for Denial of Benefits$0HPEHURUD%HQHILFLDU\ &ODLPDQW PD\
ILOH ZLWK WKH 5HWLUHPHQW &RPPLWWHH D ZULWWHQ FODLP IRU EHQHILWV LI WKH 0HPEHU RU
%HQHILFLDU\GHWHUPLQHVWKHGLVWULEXWLRQSURFHGXUHVRIWKH3ODQKDYHQRWSURYLGHGKLPKLV
SURSHU1RQIRUIHLWDEOH$FFUXHG%HQHILW7KH5HWLUHPHQW&RPPLWWHHPXVWUHQGHUDGHFLVLRQ
RQWKHFODLPZLWKLQGD\VRIWKH&ODLPDQW
VZULWWHQFODLPIRUEHQHILWV
D Notice of Denial7KH3ODQ$GPLQLVWUDWRUPXVWSURYLGHDGHTXDWHQRWLFHLQZULWLQJWR
DQ\&ODLPDQWZKRVHFODLPIRUEHQHILWVXQGHUWKH3ODQWKH5HWLUHPHQW&RPPLWWHHKDV
GHQLHG7KH3ODQ$GPLQLVWUDWRU
VQRWLFHRIGHQLDORIEHQHILWVPXVWLGHQWLI\WKHQDPH
RIHDFKPHPEHURIWKH5HWLUHPHQW&RPPLWWHHDQGWKHQDPHDQGDGGUHVVRIWKH
5HWLUHPHQW&RPPLWWHHPHPEHUWRZKRPWKHFODLPDQWPD\IRUZDUGKLVDSSHDO7KH
3ODQ$GPLQLVWUDWRU
VQRWLFHWRWKH&ODLPDQWPXVWDOVRVHWIRUWK
7KHVSHFLILFUHDVRQIRUWKHGHQLDO
6SHFLILF UHIHUHQFHV WR SHUWLQHQW 3ODQ SURYLVLRQV RQ ZKLFK WKH 5HWLUHPHQW
91
^ `
&RPPLWWHHEDVHGLWVGHQLDO
$ GHVFULSWLRQ RI DQ\ DGGLWLRQDO PDWHULDO DQG LQIRUPDWLRQ QHHGHG IRU WKH
&ODLPDQW WR SHUIHFW KLV FODLP DQG DQ H[SODQDWLRQ RI ZK\ WKH PDWHULDO RU
LQIRUPDWLRQLVQHHGHG DQG
7KDWDQ\DSSHDOWKH&ODLPDQWZLVKHVWRPDNHRIWKHDGYHUVHGHWHUPLQDWLRQPXVW
EHLQZULWLQJWRWKH5HWLUHPHQW&RPPLWWHHZLWKLQGD\VDIWHUUHFHLSWRIWKH
3ODQ$GPLQLVWUDWRU
VQRWLFHRIGHQLDORIEHQHILWV7KH3ODQ$GPLQLVWUDWRU
V
QRWLFHPXVWIXUWKHUDGYLVHWKH&ODLPDQWWKDWKLVIDLOXUHWRDSSHDOWKHDFWLRQWR
WKH5HWLUHPHQW&RPPLWWHHLQZULWLQJZLWKLQWKHGD\SHULRGZLOOUHQGHUWKH
5HWLUHPHQW&RPPLWWHH
VGHWHUPLQDWLRQILQDOELQGLQJDQGFRQFOXVLYH
E $SSHDO,IWKH&ODLPDQWVKRXOGDSSHDOWRWKH5HWLUHPHQW&RPPLWWHHKHRUKLVGXO\
DXWKRUL]HGUHSUHVHQWDWLYHPD\VXEPLWLQZULWLQJZKDWHYHULVVXHVDQGFRPPHQWVKH
RUKLVGXO\DXWKRUL]HGUHSUHVHQWDWLYHIHHOVDUHSHUWLQHQW7KH&ODLPDQWRUKLVGXO\
DXWKRUL]HGUHSUHVHQWDWLYHPD\UHYLHZSHUWLQHQW3ODQGRFXPHQWV7KH5HWLUHPHQW
&RPPLWWHH ZLOO UHH[DPLQH DOO IDFWV UHODWHG WR WKH DSSHDO DQG PDNH D ILQDO
GHWHUPLQDWLRQDVWRZKHWKHUWKHGHQLDORIEHQHILWVLVMXVWLILHGXQGHUWKHFLUFXPVWDQFHV
7KH5HWLUHPHQW&RPPLWWHHPXVWDGYLVHWKH&ODLPDQWRILWVGHFLVLRQZLWKLQGD\V
RIWKH&ODLPDQW
VZULWWHQUHTXHVWIRUUHYLHZXQOHVVVSHFLDOFLUFXPVWDQFHV VXFKDVD
KHDULQJ ZRXOGPDNHWKHUHQGHULQJRIDGHFLVLRQZLWKLQWKHGD\OLPLWXQIHDVLEOH
EXWLQQRHYHQWPD\WKH5HWLUHPHQW&RPPLWWHHUHQGHUDGHFLVLRQUHVSHFWLQJDGHQLDO
IRUDFODLPIRUEHQHILWVODWHUWKDQGD\VDIWHULWVUHFHLSWRIDUHTXHVWIRUUHYLHZ
$UWLFOH 'LVWULEXWLRQRIEHQHILWV.
7KLV 3ODQ VKDOO SD\ DOO EHQHILWV LQ DFFRUGDQFH ZLWK D JRRG IDLWK LQWHUSUHWDWLRQ RI WKH
UHTXLUHPHQWV RI &RGH 6HFWLRQ D DQG WKH UHJXODWLRQV SURPXOJDWHG WKHUHXQGHU DV
DSSOLFDEOHWRDJRYHUQPHQWDOSODQDVGHILQHGLQ&RGH6HFWLRQ G 1RWZLWKVWDQGLQJDQ\
RWKHUSURYLVLRQRIWKLV3ODQWRWKHFRQWUDU\DIRUPRIUHWLUHPHQWLQFRPHSD\DEOHIURPWKLV
3ODQVKDOOVDWLVI\WKHIROORZLQJFRQGLWLRQV
D ,IWKHUHWLUHPHQWLQFRPHLVSD\DEOHEHIRUHWKH0HPEHU
VGHDWK
,WVKDOOHLWKHUEHGLVWULEXWHGRUFRPPHQFHWRWKH0HPEHUQRWODWHUWKDQ$SULORI
WKHFDOHQGDU\HDUIROORZLQJWKHODWHURIWKHFDOHQGDU\HDULQZKLFKWKH0HPEHU
DWWDLQVDJHVHYHQW\DQGRQHKDOI ò RUWKHFDOHQGDU\HDULQZKLFKWKH0HPEHU
UHWLUHV DQG
WKHEHQHILWVKDOOEHSDLGRYHUWKHOLIHRIWKH0HPEHURURYHUWKHOLIHWLPHVRIWKH
0HPEHUDQGGHVLJQDWHGEHQHILFLDU\DQGVKDOOEHSDLGRYHUWKHSHULRGH[WHQGLQJ
QRWEH\RQGWKHOLIHH[SHFWDQF\RIWKH0HPEHUDQGGHVLJQDWHGEHQHILFLDU\
:KHUHEHQHILWSD\PHQWVKDYHFRPPHQFHGLQDFFRUGDQFHZLWKWKHSUHFHGLQJSDUDJUDSKVDQG
WKH0HPEHUGLHVEHIRUHKLVHQWLUHLQWHUHVWLQWKH3ODQKDVEHHQGLVWULEXWHGWKHUHPDLQLQJ
SRUWLRQRIVXFKLQWHUHVWLQWKH3ODQVKDOOEHGLVWULEXWHGQROHVVUDSLGO\WKDQXQGHUWKHIRUPRI
GLVWULEXWLRQLQHIIHFWDWWKHWLPHRIWKH0HPEHU
VGHDWK
E ,IWKH0HPEHUGLHVEHIRUHGLVWULEXWLRQVEHJLQWKH0HPEHU¶VHQWLUHLQWHUHVWZLOOEH
GLVWULEXWHGRUEHJLQWREHGLVWULEXWHGQRODWHUWKDQDVIROORZV
92
^ `
,IWKH0HPEHU¶VVXUYLYLQJVSRXVHLVWKH0HPEHU¶VVROHGHVLJQDWHGEHQHILFLDU\
WKHQGLVWULEXWLRQVWRWKHVXUYLYLQJVSRXVHZLOOEHJLQE\'HFHPEHURIWKH
FDOHQGDU\HDULPPHGLDWHO\IROORZLQJWKHFDOHQGDU\HDULQZKLFKWKH0HPEHU
GLHGRUE\'HFHPEHURIWKHFDOHQGDU\HDULQZKLFKWKH0HPEHUZRXOGKDYH
DWWDLQHGDJHòLIODWHU
,I WKH 0HPEHU¶V VXUYLYLQJ VSRXVH LV QRW WKH 0HPEHU¶V VROH GHVLJQDWHG
EHQHILFLDU\ WKHQ GLVWULEXWLRQV WR WKH GHVLJQDWHG EHQHILFLDU\ ZLOO EHJLQ E\
'HFHPEHURIWKHFDOHQGDU\HDULPPHGLDWHO\IROORZLQJWKHFDOHQGDU\HDULQ
ZKLFKWKH0HPEHUGLHG
,IWKHUHLVQRGHVLJQDWHGEHQHILFLDU\DVRI6HSWHPEHURIWKH\HDUIROORZLQJ
WKH\HDURIWKH0HPEHU¶VGHDWKWKH0HPEHU¶VHQWLUHLQWHUHVWZLOOEHGLVWULEXWHG
E\'HFHPEHURIWKHFDOHQGDU\HDUFRQWDLQLQJWKHILIWKDQQLYHUVDU\RIWKH
0HPEHU¶VGHDWK
,IWKH0HPEHU¶VVXUYLYLQJVSRXVHLVWKH0HPEHU¶VVROHGHVLJQDWHGEHQHILFLDU\
DQGWKHVXUYLYLQJVSRXVHGLHVDIWHUWKH0HPEHUEXWEHIRUHGLVWULEXWLRQVWRWKH
VXUYLYLQJVSRXVHDUHUHTXLUHGWREHJLQWKLVVXEVHFWLRQ E RWKHUWKDQVXEVHFWLRQ
E ZLOODSSO\DVLIWKHVXUYLYLQJVSRXVHZHUHWKH0HPEHU)RUSXUSRVHV
RIWKLV6HFWLRQXQOHVVVXEVHFWLRQ E DSSOLHVGLVWULEXWLRQVDUHFRQVLGHUHGWR
EHJLQRQWKH0HPEHU¶VUHTXLUHGEHJLQQLQJGDWH,IVXEVHFWLRQ E DSSOLHV
GLVWULEXWLRQVDUHFRQVLGHUHGWREHJLQRQWKHGDWHGLVWULEXWLRQVDUHUHTXLUHGWR
EHJLQWRWKHVXUYLYLQJVSRXVHXQGHUVXEVHFWLRQ E ,IGLVWULEXWLRQVXQGHUDQ
DQQXLW\PHHWLQJWKHUHTXLUHPHQWVRIWKLVDUWLFOHFRPPHQFHWRWKH0HPEHU
EHIRUHWKH0HPEHU¶VUHTXLUHGEHJLQQLQJGDWH RUWRWKH0HPEHU¶VVXUYLYLQJ
VSRXVHEHIRUHWKHGDWHGLVWULEXWLRQVDUHUHTXLUHGWREHJLQWRWKHVXUYLYLQJVSRXVH
XQGHUVXEVHFWLRQ E WKHGDWHGLVWULEXWLRQVDUHFRQVLGHUHGWREHJLQLVWKHGDWH
GLVWULEXWLRQVDFWXDOO\FRPPHQFH
$UWLFOH 5HWLUHPHQW&RPPLWWHH'XWLHV
Members' Expenses.7KH(PSOR\HUPXVWDSSRLQWD5HWLUHPHQW&RPPLWWHHWRDGPLQLVWHU
WKH3ODQDQGVHUYHDV7UXVWHHWKHPHPEHUVRIZKLFKPD\RUPD\QRWEH0HPEHUVLQWKH
3ODQRUZKLFKPD\EHWKH3ODQ$GPLQLVWUDWRUDFWLQJDORQH,QWKHDEVHQFHRID5HWLUHPHQW
&RPPLWWHH DSSRLQWPHQW WKH 3ODQ $GPLQLVWUDWRU DVVXPHV WKH SRZHUV GXWLHV DQG
UHVSRQVLELOLWLHVRIWKH5HWLUHPHQW&RPPLWWHH7KHPHPEHUVRIWKH5HWLUHPHQW&RPPLWWHH
ZLOOVHUYHZLWKRXWFRPSHQVDWLRQIRUVHUYLFHVDVVXFKEXWWKH(PSOR\HUZLOOSD\UHDVRQDEOH
H[SHQVHVRIWKH5HWLUHPHQW&RPPLWWHHH[FHSWWRWKHH[WHQWWKH7UXVWSURSHUO\SD\VWKH
H[SHQVHV
Term(DFKPHPEHURIWKH5HWLUHPHQW&RPPLWWHHVHUYHVXQWLOWKHDSSRLQWPHQWRIKLV
VXFFHVVRU
Powers ,Q FDVH RI D YDFDQF\ LQ WKH PHPEHUVKLS RI WKH 5HWLUHPHQW &RPPLWWHH WKH
UHPDLQLQJPHPEHUVRIWKH5HWLUHPHQW&RPPLWWHHPD\H[HUFLVHDQ\DQGDOORIWKHSRZHUV
DXWKRULW\GXWLHVDQGGLVFUHWLRQFRQIHUUHGXSRQWKH5HWLUHPHQW&RPPLWWHHSHQGLQJWKH
ILOOLQJRIWKHYDFDQF\
93
^ `
Powers and duties.7KH5HWLUHPHQW&RPPLWWHHVKDOOPHHWRQQRWOHVVWKDQDTXDUWHUO\EDVLV
DWVXFKWLPHVDVDUHFRQYHQLHQWWRDPDMRULW\RI5HWLUHPHQW&RPPLWWHHPHPEHUV7KH
5HWLUHPHQW&RPPLWWHHVKDOOUHYLHZILQDQFLDODQGLQYHVWPHQWUHSRUWVRQWKH)XQGHYDOXDWH
WKH SHUIRUPDQFH RI LQYHVWPHQW PDQDJHUV DQG PDNH GHFLVLRQV FRQFHUQLQJ WKH )XQG¶V
LQYHVWPHQWVWUDWHJ\LQYHVWPHQWSROLF\LQYHVWPHQWPDQDJHUVDGYLVRUVDQGFRQVXOWDQWV
7KH5HWLUHPHQW&RPPLWWHHKDVWKHIROORZLQJSRZHUVDQGGXWLHV
D 7RVHOHFWD6HFUHWDU\ZKRQHHGQRWEHDPHPEHURIWKH5HWLUHPHQW&RPPLWWHH
E 7RGHWHUPLQHWKHULJKWVRIHOLJLELOLW\RIDQ(PSOR\HHWRSDUWLFLSDWHLQWKH3ODQWKH
YDOXHRID0HPEHU
V$FFUXHG%HQHILWDQGWKH1RQIRUIHLWDEOHSHUFHQWDJHRIHDFK
0HPEHU
V$FFUXHG%HQHILW
F 7RDGRSWUXOHVRISURFHGXUHDQGUHJXODWLRQVQHFHVVDU\IRUWKHSURSHUDQGHIILFLHQW
DGPLQLVWUDWLRQRIWKH3ODQSURYLGHGWKHUXOHVDUHQRWLQFRQVLVWHQWZLWKWKHWHUPVRI
WKLV$JUHHPHQW
G 7RFRQVWUXHDQGHQIRUFHWKHWHUPVRIWKH3ODQDQGWKHUXOHVDQGUHJXODWLRQVLWDGRSWV
LQFOXGLQJLQWHUSUHWDWLRQRIWKH3ODQGRFXPHQWVDQGGRFXPHQWVUHODWHGWRWKH3ODQ
V
RSHUDWLRQDQGWKHGLVFUHWLRQWRPDNHIDFWXDOGHWHUPLQDWLRQVQHFHVVDU\WRWKHSURSHU
DGPLQLVWUDWLRQRIWKH3ODQ
H 7RGLUHFWWKHFUHGLWLQJDQGGLVWULEXWLRQRIWKH7UXVW
I 7RUHYLHZDQGUHQGHUGHFLVLRQVUHVSHFWLQJDFODLPIRU RUGHQLDORIDFODLPIRU D
EHQHILWXQGHUWKH3ODQ
J 7RIXUQLVKWKH(PSOR\HUZLWKLQIRUPDWLRQZKLFKWKH(PSOR\HUPD\UHTXLUHIRUWD[
RURWKHUSXUSRVHV
K 7RHQJDJHWKHVHUYLFHRIDJHQWVZKRPLWPD\GHHPDGYLVDEOHWRDVVLVWLWZLWKWKH
SHUIRUPDQFHRILWVGXWLHV
L 7RHQJDJHWKHVHUYLFHVRIDQ,QYHVWPHQW0DQDJHURU0DQDJHUVHDFKRIZKRPZLOO
KDYHIXOOSRZHUDQGDXWKRULW\WRPDQDJHDFTXLUHRUGLVSRVHRIDQ\3ODQDVVHWXQGHU
LWVFRQWURO
M 7RHVWDEOLVKDQGPDLQWDLQDIXQGLQJVWDQGDUGDFFRXQWDQGWRPDNHFUHGLWVDQGFKDUJHV
WRWKHDFFRXQWWRWKHH[WHQWUHTXLUHGE\DQGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH
DSSOLFDEOHODZ
7KH5HWLUHPHQW&RPPLWWHHZLOOH[HUFLVHDOORILWVSRZHUVGXWLHVDQGGLVFUHWLRQXQGHUWKH
3ODQLQDXQLIRUPDQGQRQGLVFULPLQDWRU\PDQQHU
Funding Policy7KH5HWLUHPHQW&RPPLWWHHZLOOUHYLHZQRWOHVVRIWHQWKDQDQQXDOO\DOO
SHUWLQHQW(PSOR\HHLQIRUPDWLRQDQG3ODQGDWDLQRUGHUWRHVWDEOLVKWKHIXQGLQJSROLF\RI
WKH3ODQDQGWRGHWHUPLQHWKHDSSURSULDWHPHWKRGVRIFDUU\LQJRXWWKH3ODQ
VREMHFWLYHV
7KH5HWLUHPHQW&RPPLWWHHPXVWFRPPXQLFDWHSHULRGLFDOO\DVLWGHHPVDSSURSULDWHWRWKH
7UXVWHHDQGWRDQ\3ODQ,QYHVWPHQW0DQDJHUWKH3ODQ
VVKRUWWHUPDQGORQJWHUPILQDQFLDO
QHHGVVRLQYHVWPHQWSROLF\FDQEHFRRUGLQDWHGZLWK3ODQILQDQFLDOUHTXLUHPHQWV
Manner of Action7KHGHFLVLRQRIDPDMRULW\RIWKHPHPEHUVDSSRLQWHGDQGTXDOLILHG
FRQWUROV
94
^ `
Authorized Representative7KH5HWLUHPHQW&RPPLWWHHPD\DXWKRUL]HDQ\RQHRILWV
PHPEHUV RU LWV 6HFUHWDU\ WR VLJQ RQ LWV EHKDOI DQ\ QRWLFHV GLUHFWLRQV DSSOLFDWLRQV
FHUWLILFDWHV FRQVHQWV DSSURYDOV ZDLYHUV OHWWHUV RU RWKHU GRFXPHQWV 7KH 5HWLUHPHQW
&RPPLWWHHPXVWHYLGHQFHWKLVDXWKRULW\E\DQLQVWUXPHQWVLJQHGE\DOOPHPEHUV
Interested Member1RPHPEHURIWKH5HWLUHPHQW&RPPLWWHHPD\GHFLGHRUGHWHUPLQH
DQ\PDWWHUFRQFHUQLQJWKHGLVWULEXWLRQQDWXUHRUPHWKRGRIVHWWOHPHQWRIKLVRZQEHQHILWV
XQGHUWKH3ODQH[FHSWLQH[HUFLVLQJDQHOHFWLRQDYDLODEOHWRWKDWPHPEHULQKLVFDSDFLW\DV
D 3ODQ 0HPEHU XQOHVV WKH 3ODQ$GPLQLVWUDWRU LV DFWLQJ DORQH LQWKH FDSDFLW\RI WKH
5HWLUHPHQW&RPPLWWHH
Member Records7KH5HWLUHPHQW&RPPLWWHHZLOONHHSVXFKUHFRUGVDQGZLOOSUHSDUHVXFK
UHSRUWVFRQFHUQLQJ0HPEHUV
$FFUXHG%HQHILWVDVDSSOLFDEOHODZDQGWKH&RGHUHTXLUH
8SRQD0HPEHU
VZULWWHQUHTXHVWWKH5HWLUHPHQW&RPPLWWHHZLOOIXUQLVKRUZLOOGLUHFWWKH
3ODQ$GPLQLVWUDWRUWRIXUQLVKWKH0HPEHUVXFKLQIRUPDWLRQ
Unclaimed Accrued Benefit - Procedure$WWKHWLPHWKH0HPEHU
VRU%HQHILFLDU\
VEHQHILW
EHFRPHVGLVWULEXWDEOHXQGHUWKH3ODQWKH5HWLUHPHQW&RPPLWWHHE\FHUWLILHGRUUHJLVWHUHG
PDLODGGUHVVHGWRKLVODVWNQRZQDGGUHVVRIUHFRUGZLWKWKH5HWLUHPHQW&RPPLWWHHRUWKH
(PSOR\HUPXVWQRWLI\DQ\0HPEHURU%HQHILFLDU\WKDWKHLVHQWLWOHGWRDGLVWULEXWLRQ
XQGHUWKLV3ODQ,IWKH0HPEHURU%HQHILFLDU\IDLOVWRFODLPKLVGLVWULEXWLYHVKDUHRUPDNH
KLVZKHUHDERXWVNQRZQWRWKH5HWLUHPHQW&RPPLWWHHZLWKLQPRQWKVIURPWKHGDWHRI
PDLOLQJRIWKHQRWLFHWKH0HPEHU
VRU%HQHILFLDU\
VXQFODLPHGSD\DEOH$FFUXHG%HQHILW
ZLOOEHGLVWULEXWHGLQDFFRUGDQFHZLWKVWDWHDQGIHGHUDOODZ
Fees and Expenses From Fund$OOIHHVDQGH[SHQVHVUHDVRQDEO\LQFXUUHGE\WKH3ODQWR
WKHH[WHQWVXFKIHHVDQGH[SHQVHVDUHIRUWKHRUGLQDU\DQGQHFHVVDU\DGPLQLVWUDWLRQDQG
RSHUDWLRQRIWKH3ODQPD\EHSDLGIURPWKH7UXVW)XQGXQOHVVSDLGE\WKH(PSOR\HU
Professional Agents7KH3ODQ PD\HPSOR\DQGSD\IURPWKH7UXVW)XQGUHDVRQDEOH
FRPSHQVDWLRQWRDJHQWVDWWRUQH\VDFFRXQWDQWVDQGRWKHUSHUVRQVWRDGYLVHWKH7UXVWHHDV
LQ LWV RSLQLRQ PD\ EH QHFHVVDU\ 7KH 7UXVWHH PD\ GHOHJDWH WR DQ\ DJHQW DWWRUQH\
DFFRXQWDQWRURWKHUSHUVRQVHOHFWHGE\LWDQ\QRQ7UXVWHHSRZHURUGXW\YHVWHGLQLWE\WKH
3ODQDQGWKH7UXVWHHPD\DFWRUUHIUDLQIURPDFWLQJRQWKHDGYLFHRURSLQLRQRIDQ\DJHQW
DWWRUQH\DFFRXQWDQWRURWKHUSHUVRQVRVHOHFWHG
$UWLFOH ,QYHVWPHQWV
7KH5HWLUHPHQW&RPPLWWHHDV7UXVWHHVKDOOEHUHVSRQVLEOHIRUWKHLQYHVWPHQWRIDQ\DVVHWV
LQWKH)XQGQRWQHHGHGIRUWKHIXQG
VFXUUHQWREOLJDWLRQVDQGPD\LQYHVWVXFKDVVHWVLQ
DFFRUGDQFH ZLWK D ZULWWHQ LQYHVWPHQW SROLF\ DGRSWHG E\ WKH 5HWLUHPHQW &RPPLWWHH
5HWLUHPHQW&RPPLWWHHPHPEHUVDQGRWKHUILGXFLDULHVRIWKH3ODQPXVWGLVFKDUJHWKHLU
GXWLHVZLWKUHVSHFWWRWKH3ODQVROHO\LQWKHLQWHUHVWRIWKH3ODQ0HPEHUVDQGWKHLUEHQHILFLDULHV
DQGIRUWKHH[FOXVLYHSXUSRVHRI L SURYLGLQJEHQHILWVWR0HPEHUVDQGWKHLUEHQHILFLDULHV
DQG LL GHIUD\LQJ UHDVRQDEOH H[SHQVHV RI DGPLQLVWHULQJ WKH 3ODQ ZLWKWKHFDUHVNLOO
SUXGHQFHDQGGLOLJHQFHXQGHUWKHFLUFXPVWDQFHVWKHQSUHYDLOLQJWKDWDSUXGHQWSHUVRQDFWLQJ
LQDOLNHFDSDFLW\DQGIDPLOLDUZLWKVXFKPDWWHUVZRXOGXVHLQWKHFRQGXFWRIDQHQWHUSULVHRI
DOLNHFKDUDFWHUDQGZLWKOLNHDLPV E\GLYHUVLI\LQJWKHLQYHVWPHQWVRIWKH3ODQVRDVWR
95
^ `
PLQLPL]HWKHULVNRIODUJHORVVHVXQOHVVXQGHUWKHFLUFXPVWDQFHVLWLVFOHDUO\SUXGHQWQRWWR
GRVR
7KH7UXVWHHLVDXWKRUL]HGDQGHPSRZHUHGEXWQRWE\ZD\RIOLPLWDWLRQZLWKWKHIROORZLQJ
SRZHUVULJKWVDQGGXWLHV
D 7RLQYHVWDQ\SDUWRUDOORIWKH7UXVW)XQGLQDQ\FRPPRQRUSUHIHUUHGVWRFNVRSHQHQG
RUFORVHGHQGPXWXDOIXQGV LQFOXGLQJPXWXDOIXQGVIRUZKLFKWKH7UXVWHHRULWVDIILOLDWH
VHUYHV DV DQ LQYHVWPHQW DGYLVRU VSRQVRU GLVWULEXWRU FXVWRGLDQ WUDQVIHU DJHQW
DGPLQLVWUDWRUUHJLVWUDULQDQ\RWKHUFDSDFLW\ SXWDQGFDOORSWLRQVWUDGHGRQDQDWLRQDO
H[FKDQJH8QLWHG6WDWHVUHWLUHPHQWSODQERQGVFRUSRUDWHERQGVGHEHQWXUHVFRQYHUWLEOH
GHEHQWXUHVFRPPHUFLDOSDSHU867UHDVXU\ELOOV867UHDVXU\QRWHVDQGRWKHUGLUHFW
RULQGLUHFWREOLJDWLRQVRIWKH8QLWHG6WDWHV*RYHUQPHQWRULWVDJHQFLHVLPSURYHGRU
XQLPSURYHGUHDOHVWDWHVLWXDWHGLQWKH8QLWHG6WDWHVOLPLWHGSDUWQHUVKLSVLQVXUDQFH
FRQWUDFWVRIDQ\W\SHPRUWJDJHVQRWHVRURWKHUSURSHUW\RIDQ\NLQGUHDORUSHUVRQDO
WREX\RUVHOORSWLRQVRQFRPPRQVWRFNRQDQDWLRQDOO\UHFRJQL]HGH[FKDQJHZLWKRU
ZLWKRXWKROGLQJWKHXQGHUO\LQJFRPPRQVWRFNWREX\DQGVHOOFRPPRGLWLHVFRPPRGLW\
RSWLRQVDQGFRQWUDFWVIRUWKHIXWXUHGHOLYHU\RIFRPPRGLWLHVDQGWRPDNHDQ\RWKHU
LQYHVWPHQWVWKH7UXVWHHGHHPVDSSURSULDWHDVDSUXGHQWPDQZRXOGGRXQGHUOLNH
FLUFXPVWDQFHVZLWKGXHUHJDUGIRUWKHSXUSRVHVRIWKLV3ODQ$Q\LQYHVWPHQWPDGHRU
UHWDLQHGE\WKH7UXVWHHLQJRRGIDLWKLVSURSHUEXWPXVWEHRIDNLQGFRQVWLWXWLQJD
GLYHUVLILFDWLRQFRQVLGHUHGE\ODZVXLWDEOHIRUWUXVWLQYHVWPHQWV
E 7RUHWDLQLQFDVKVRPXFKRIWKH7UXVW)XQGDVLWPD\GHHPDGYLVDEOHWRVDWLVI\OLTXLGLW\
QHHGVRIWKH3ODQDQGWRGHSRVLWDQ\FDVKKHOGLQWKH7UXVW)XQGLQDEDQNDFFRXQWDW
UHDVRQDEOHLQWHUHVW
F 7RLQYHVWLIWKH7UXVWHHLVDEDQNRUVLPLODUILQDQFLDOLQVWLWXWLRQVXSHUYLVHGE\WKH8QLWHG
6WDWHVRUE\D6WDWHLQDQ\W\SHRIGHSRVLWRIWKH7UXVWHH RURIDEDQNUHODWHGWRWKH
7UXVWHHZLWKLQWKHPHDQLQJRI&RGH E DWDUHDVRQDEOHUDWHRILQWHUHVWRULQD
FRPPRQWUXVWIXQGDVGHVFULEHGLQ&RGHRUFROOHFWLYHLQYHVWPHQWIXQGWKH
SURYLVLRQV RI ZKLFK JRYHUQ WKH LQYHVWPHQW RI VXFK DVVHWV DQG ZKLFKWKH3ODQ
LQFRUSRUDWHVE\WKLVUHIHUHQFHZKLFKWKH7UXVWHH RULWVDIILOLDWHDVGHILQHGLQ&RGH
PDLQWDLQVH[FOXVLYHO\IRUWKHFROOHFWLYHLQYHVWPHQWRIPRQH\FRQWULEXWHGE\WKH
EDQN RUWKHDIILOLDWH LQLWVFDSDFLW\DVWUXVWHHDQGZKLFKFRQIRUPVWRWKHUXOHVRIWKH
&RPSWUROOHURIWKH&XUUHQF\
G 7RPDQDJHVHOOFRQWUDFWWRVHOOJUDQWRSWLRQVWRSXUFKDVHFRQYH\H[FKDQJHWUDQVIHU
DEDQGRQLPSURYHUHSDLULQVXUHOHDVHIRUDQ\WHUPHYHQWKRXJKFRPPHQFLQJLQWKH
IXWXUHRUH[WHQGLQJEH\RQGWKHWHUPRIWKH7UXVWDQGRWKHUZLVHGHDOZLWKDOOSURSHUW\
UHDO RU SHUVRQDO LQ VXFK PDQQHU IRU VXFK FRQVLGHUDWLRQV DQG RQ VXFK WHUPV DQG
FRQGLWLRQVDVWKH7UXVWHHGHFLGHV
H 7RKDYHZLWKUHVSHFWWRWKH7UXVWDOORIWKHULJKWVRIDQLQGLYLGXDORZQHULQFOXGLQJWKH
SRZHUWRJLYHSUR[LHVWRSDUWLFLSDWHLQDQ\YRWLQJWUXVWVPHUJHUVFRQVROLGDWLRQVRU
OLTXLGDWLRQVDQGWRH[HUFLVHRUVHOOVWRFNVXEVFULSWLRQVRUFRQYHUVLRQULJKWV
96
^ `
I 7RSHUIRUPDQ\DQGDOORWKHUDFWVLQLWVMXGJPHQWQHFHVVDU\RUDSSURSULDWHIRUWKHSURSHU
DQGDGYDQWDJHRXVPDQDJHPHQWLQYHVWPHQWDQGGLVWULEXWLRQRIWKH7UXVW
J 7R EHJLQ PDLQWDLQ RU GHIHQG DQ\ OLWLJDWLRQ QHFHVVDU\ LQ FRQQHFWLRQ ZLWK WKH
DGPLQLVWUDWLRQRIWKH3ODQH[FHSWWKDWWKH7UXVWHHLVQRWREOLJHGRUUHTXLUHGWRGRVR
XQOHVVLQGHPQLILHGWRLWVVDWLVIDFWLRQ
Investment Policy. 7KH5HWLUHPHQW&RPPLWWHHVKDOODGRSWDQGSHULRGLFDOO\XSGDWHDZULWWHQ
LQYHVWPHQWSROLF\LQDFFRUGDQFHZLWK6HFWLRQ)ORULGD6WDWXWHVDVVXFKVWDWXWHPD\
EHDPHQGHGLQWKHIXWXUH:LWKLQWKHOLPLWDWLRQVRIWKHIRUHJRLQJVWDQGDUGVDQGLQYHVWPHQW
SROLF\WKH%RDUGLVDXWKRUL]HGWRDFTXLUHDQGUHWDLQLQWKHIXQGHYHU\NLQGRILQYHVWPHQW
VSHFLILFDOO\LQFOXGLQJEXWQRWOLPLWHGWRVWRFNVERQGVVHFXULWLHVGHEHQWXUHVUHDOHVWDWH
PXWXDO IXQGV WUXVWV DQG RWKHU REOLJDWLRQV ZKLFK SHUVRQVRI SUXGHQFH GLVFUHWLRQDQG
LQWHOOLJHQFHDFTXLUHRUUHWDLQIRUWKHLURZQDFFRXQW
$UWLFOH 0LVFHOODQHRXV
Nonassignability.%HQHILWVXQGHUWKLV3ODQVKDOOQRWEHVXEMHFWWRH[HFXWLRQJDUQLVKPHQW
DWWDFKPHQWRUDQ\RWKHUSURFHVVRIDQ\FRXUWZLWKUHVSHFWWRDSD\HHXQGHUWKH3ODQH[FHSW
IRUTXDOLILHGGRPHVWLFUHODWLRQVRUGHUVLVVXHGE\DFRXUWRIFRPSHWHQWMXULVGLFWLRQSXUVXDQW
WRVHFWLRQ)ORULGD6WDWXWHVRUDQLQFRPHGHGXFWLRQRUGHUDVSURYLGHGLQVHFWLRQ
)ORULGD6WDWXWHV
Plan Amendments7KLV3ODQPD\EHDPHQGHGDWDQ\WLPHE\WKH&LW\ SURYLGHGWKDWQR
DPHQGPHQWVKDOOUHGXFHWKHDFFUXHGEHQHILWRIDQ\0HPEHUDWWKHWLPHRIWKHDPHQGPHQW
$PHQGPHQWV VKDOO DSSO\ SURVSHFWLYHO\ XQOHVV WKH DPHQGPHQW H[SUHVVO\ SURYLGHV IRU
UHWURDFWLYHDSSOLFDWLRQ$0HPEHUZKRVHSDUDWHVIURP&LW\HPSOR\PHQWVKDOOEHHQWLWOHG
WR WKRVH EHQHILWV LQ HIIHFW DWWKH WLPH RI VHSDUDWLRQ XQOHVV D VXEVHTXHQW DPHQGPHQW
H[SUHVVO\SURYLGHVRWKHUZLVH
Repeal or termination of the Plan7KH&LW\KDVWKHULJKWDWDQ\WLPHWRVXVSHQGRU
GLVFRQWLQXHLWVFRQWULEXWLRQVXQGHUWKH3ODQDQGWRWHUPLQDWHWKLV3ODQ SURYLGHGXSRQIXOO
RUSDUWLDOWHUPLQDWLRQRIWKH3ODQDQDIIHFWHG0HPEHU
VULJKWWRKLVRUKHUDFFUXHGEHQHILW
LVQRQIRUIHLWDEOHLUUHVSHFWLYHRIWKHQRQIRUIHLWDEOHSHUFHQWDJHZKLFKRWKHUZLVH
ZRXOGDSSO\XQGHUWKLV3ODQ,IWKLVRUGLQDQFHVKDOOEHUHSHDOHGRULIFRQWULEXWLRQVWRWKH
3ODQDUHGLVFRQWLQXHGRULIWKHUHLVDWUDQVIHUPHUJHURUFRQVROLGDWLRQRIJRYHUQPHQWXQLWV
VHUYLFHV RU IXQFWLRQV DV SURYLGHG LQ &KDSWHU )ORULGD 6WDWXWHVWKH5HWLUHPHQW
&RPPLWWHHVKDOOFRQWLQXHWRDGPLQLVWHUWKH3ODQLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKLV
RUGLQDQFHIRUWKHVROHEHQHILWRIWKHWKHQ0HPEHUVDQ\%HQHILFLDULHVWKHQUHFHLYLQJ
UHWLUHPHQWDOORZDQFHVDQGDQ\IXWXUHSHUVRQVHQWLWOHGWRUHFHLYHEHQHILWVXQGHURQHRIWKH
RSWLRQVSURYLGHGIRULQWKLVRUGLQDQFHZKRDUHGHVLJQDWHGE\DQ\RIVDLG0HPEHUV,QWKH
HYHQWRIUHSHDOGLVFRQWLQXDQFHRIFRQWULEXWLRQVRUWUDQVIHUPHUJHURUFRQVROLGDWLRQRI
JRYHUQPHQWXQLWVVHUYLFHVRUIXQFWLRQVWKHUHVKDOOEHIXOOYHVWLQJ RIEHQHILWV
DFFUXHGWRGDWHRIUHSHDODQGWKHDVVHWVRIWKH3ODQVKDOOEHDOORFDWHGLQDQHTXLWDEOHPDQQHU
WRSURYLGHEHQHILWVRQDSURSRUWLRQDWHEDVLVWRWKHSHUVRQVVRHQWLWOHGDVVHWIRUWKKHUHLQ
7KHIROORZLQJVKDOOEHWKHRUGHURISULRULW\IRUSXUSRVHVRIDOORFDWLQJWKHDVVHWVRIWKH3ODQ
DVRIWKHGDWHRIUHSHDORIWKLVRUGLQDQFHRULIFRQWULEXWLRQVWRWKH3ODQDUHGLVFRQWLQXHG
ZLWKWKHGDWHRIVXFKGLVFRQWLQXDWLRQEHLQJGHWHUPLQHGE\WKH%RDUG
97
^ `
D $SSRUWLRQPHQWVKDOOILUVWEHPDGHLQUHVSHFWRIHDFK5HWLUHHZKRLVUHFHLYLQJD
EHQHILWIURPWKH3ODQRQVXFKGDWHHDFKSHUVRQUHFHLYLQJDEHQHILWRQVXFKGDWHRQ
DFFRXQWRIDUHWLUHGRUGHFHDVHG0HPEHUDQGHDFK0HPEHUZKRKDVE\VXFKGDWH
EHFRPHHOLJLEOHIRUQRUPDOUHWLUHPHQWEXWKDVQRW\HWUHWLUHGDQDPRXQWZKLFKLVWKH
$FWXDULDO(TXLYDOHQWRIVXFKEHQHILW SURYLGHGWKDWLIWKHDVVHWYDOXHRIWKH3ODQLV
OHVVWKDQWKHDJJUHJDWHRIVXFKDPRXQWVVXFKDPRXQWVVKDOOEHSURSRUWLRQDWHO\
UHGXFHGVRWKDWWKHDJJUHJDWHRIVXFKUHGXFHGDPRXQWVZLOOEHHTXDOWRVXFKDVVHW
YDOXH
E ,IWKHUHEHDQ\DVVHWYDOXHUHPDLQLQJDIWHUWKHDSSRUWLRQPHQWXQGHUVXEVHFWLRQ D
DSSRUWLRQPHQWVKDOOQH[WEHPDGHLQUHVSHFWRIHDFK0HPEHULQWKHVHUYLFHRIWKH
&LW\RQVXFKGDWHZKRLVYHVWHGDQGZKRLVQRWHQWLWOHGWRDQDSSRUWLRQPHQWXQGHU
VXEVHFWLRQ D LQWKHDPRXQWUHTXLUHGWRSURYLGHWKH$FWXDULDO(TXLYDOHQWRIWKH
YHVWHGSRUWLRQRIWKHDFFUXHGEHQHILWEDVHGRQWKH0HPEHU¶VFUHGLWHGVHUYLFHDQG
DYHUDJHILQDOFRPSHQVDWLRQDVRIVXFKGDWHDQGHDFKYHVWHGIRUPHU0HPEHUWKHQ
HQWLWOHGWRDGHIHUUHGEHQHILWZKRKDVQRWE\VXFKGDWHEHJXQUHFHLYLQJEHQHILW
SD\PHQWVLQWKHDPRXQWUHTXLUHGWRSURYLGHVDLG$FWXDULDO(TXLYDOHQWRIWKHYHVWHG
SRUWLRQRIWKHDFFUXHGEHQHILW SURYLGHGWKDWLIWKHDVVHWYDOXHRIWKH3ODQLVOHVVWKDQ
WKHDJJUHJDWHRIVXFKDPRXQWVVXFKDPRXQWVVKDOOEHSURSRUWLRQDWHO\UHGXFHGVRWKDW
WKHDJJUHJDWHRIVXFKUHGXFHGDPRXQWVZLOOEHHTXDOWRVXFKDVVHWYDOXH
F ,IWKHUHEHDQ\DVVHWYDOXHDIWHUWKHDSSRUWLRQPHQWVXQGHUVXEVHFWLRQV D DQG E
DSSRUWLRQPHQWVKDOOEHPDGHLQUHVSHFWRIHDFK0HPEHULQWKHVHUYLFHRIWKH&LW\RQ
VXFKGDWHZKRLVQRWHQWLWOHGWRDQDSSRUWLRQPHQWXQGHUVXEVHFWLRQ D RU E LQDQ
DPRXQWHTXDOWR0HPEHU
VDFFUXHGEHQHILW SURYLGHGWKDWLIWKHDVVHWYDOXHRIWKH
3ODQLVOHVVWKDQWKHDJJUHJDWHRIVXFKDPRXQWVVXFKDPRXQWVVKDOOEHSURSRUWLRQDWHO\
UHGXFHGVRWKDWWKHDJJUHJDWHRIVXFKUHGXFHGDPRXQWVZLOOEHHTXDOWRVXFKDVVHW
YDOXH
G ,IWKHUHEHDQ\DVVHWYDOXHUHPDLQLQJDIWHUWKHDSSRUWLRQPHQWVXQGHUVXEVHFWLRQ D
E DQG F DSSRUWLRQPHQWVKDOOODVWO\EHPDGHLQUHVSHFWRIHDFK0HPEHULQFOXGHG
LQVXEVHFWLRQ WRWKHH[WHQWRIWKH$FWXDULDO(TXLYDOHQWRIWKHQRQYHVWHGSRUWLRQ
RIWKHDFFUXHGEHQHILWOHVVDQ\DPRXQWDSSRUWLRQHGLQVXEVHFWLRQ F EDVHGRQWKH
0HPEHU¶VFUHGLWHGVHUYLFHDQGDYHUDJHILQDOFRPSHQVDWLRQDVRIVXFKGDWH SURYLGHG
WKDWLIWKHDVVHWYDOXHRIWKH3ODQLVOHVVWKDQWKHDJJUHJDWHRIVXFKDPRXQWVVXFK
DPRXQWVVKDOOEHSURSRUWLRQDWHO\UHGXFHGVRWKDWWKHDJJUHJDWHRIVXFKUHGXFHG
DPRXQWVZLOOEHHTXDOWRVXFKDVVHWYDOXH
H ,QWKHHYHQWWKHUHLVDQ\DVVHWYDOXHUHPDLQLQJLQWKH)XQGDIWHUWKHIXOODSSRUWLRQPHQW
VSHFLILHGLQVXEVHFWLRQV D E F DQG G VXFKH[FHVVVKDOOEHUHWXUQHGWRWKH&LW\
I 7KHDOORFDWLRQRIWKH)XQGSURYLGHGIRULQWKLV6HFWLRQPD\DVGHFLGHGE\WKH%RDUG
EHFDUULHGRXWWKURXJKWKHSXUFKDVHRILQVXUDQFHFRPSDQ\FRQWUDFWVWRSURYLGHWKH
EHQHILWVGHWHUPLQHGLQDFFRUGDQFHZLWKWKLV6HFWLRQ7KH)XQGPD\EHGLVWULEXWHGLQ
RQHVXPWRWKHSHUVRQVHQWLWOHGWRVDLGEHQHILWVRUWKHGLVWULEXWLRQPD\EHFDUULHGRXW
LQVXFKRWKHUHTXLWDEOHPDQQHUDVWKH%RDUGPD\GLUHFW7KH)XQGPD\EHFRQWLQXHG
LQH[LVWHQFHIRUSXUSRVHVRIVXEVHTXHQWGLVWULEXWLRQV
Prohibited Transaction. 7KH%RDUGPD\QRWHQJDJHLQDQ\WUDQVDFWLRQSURKLELWHGXQGHU
6HFWLRQ E RIWKH,QWHUQDO5HYHQXH&RGH
98
^ `
Qualification of Plan. ,WLVLQWHQGHGWKDWWKLVSODQVKDOOFRQVWLWXWHDTXDOLILHGSXEOLFSHQVLRQ
SODQXQGHUWKHDSSOLFDEOHSURYLVLRQVRIWKH&RGHIRUDTXDOLILHGSODQXQGHU&RGH6HFWLRQ
D DQGDJRYHUQPHQWDOSODQXQGHU&RGH6HFWLRQ G DVQRZLQHIIHFWDQGDVPD\
EHDPHQGHGIURPWLPHWRWLPH$Q\PRGLILFDWLRQRUDPHQGPHQWRIWKLV3ODQPD\EHPDGH
UHWURDFWLYHO\LIQHFHVVDU\RUDSSURSULDWHWRPDLQWDLQTXDOLILFDWLRQ
Exclusive Benefit([FHSWDVSURYLGHGLQWKLV$UWLFOHQRSDUWRIDQ\DVVHWLQWKH7UXVWPD\
UHYHUWWRWKH&LW\3ULRUWRWKHVDWLVIDFWLRQRIDOOOLDELOLWLHVZLWKUHVSHFWWRWKH0HPEHUVDQG
WKHLU%HQHILFLDULHVXQGHUWKH3ODQQRSDUWRIWKHFRUSXVRULQFRPHRIWKH7UXVW)XQGRU
DQ\DVVHWRIWKH7UXVWPD\EHXVHGIRURUGLYHUWHGWRDQ\SXUSRVHRWKHUWKDQWKHH[FOXVLYH
EHQHILWRIWKH0HPEHUVRUWKHLU%HQHILFLDULHV
$UWLFOH 'LUHFW7UDQVIHUVRI(OLJLEOH5ROORYHU'LVWULEXWLRQV
*HQHUDO1RWZLWKVWDQGLQJDQ\SURYLVLRQRIWKH3ODQWRWKHFRQWUDU\WKDWZRXOGRWKHUZLVH
OLPLWDGLVWULEXWHH¶VHOHFWLRQXQGHUWKLV$UWLFOHDGLVWULEXWHHPD\HOHFWDWWKHWLPHDQGLQ
WKHPDQQHUSUHVFULEHGE\WKH&RPPLWWHHWRKDYHDQ\SRUWLRQRIDQHOLJLEOHUROORYHU
GLVWULEXWLRQSDLGGLUHFWO\WRDQHOLJLEOHUHWLUHPHQWSODQVSHFLILHGE\WKHGLVWULEXWHLQDGLUHFW
UROORYHU
'HILQLWLRQV
D ³(OLJLEOHUROORYHUGLVWULEXWLRQ´LVDQ\GLVWULEXWLRQRIDOORUDQ\SRUWLRQRIWKHEDODQFH
WRWKHFUHGLWRIWKHGLVWULEXWHHH[FHSWWKDWDQHOLJLEOHUROORYHUGLVWULEXWLRQGRHVQRW
LQFOXGH DQ\ GLVWULEXWLRQ WKDW LV RQH RI D VHULHV RI VXEVWDQWLDOO\ HTXDO SHULRGLF
SD\PHQWV QRWOHVVIUHTXHQWO\WKDQDQQXDOO\ PDGHIRUWKHOLIH RUOLIHH[SHFWDQF\ RI
WKHGLVWULEXWHRUWKHMRLQWOLYHV RUMRLQWOLIHH[SHFWDQFLHV RIWKHGLVWULEXWHDQGWKH
GLVWULEXWHH¶VGHVLJQDWHG%HQHILFLDU\RUIRUDVSHFLILHGSHULRGRIWHQ\HDUVRUPRUH
DQ\GLVWULEXWLRQWRWKHH[WHQWVXFKGLVWULEXWLRQLVUHTXLUHGXQGHUVHFWLRQ D RI
WKH&RGH DQGWKHSRUWLRQRIDQ\GLVWULEXWLRQWKDWLVQRWLQFOXGLEOHLQJURVVLQFRPH
$Q\SRUWLRQRIDQ\GLVWULEXWLRQZKLFKZRXOGEHLQFOXGLEOHLQJURVVLQFRPHZLOOEHDQ
HOLJLEOHUROORYHUGLVWULEXWLRQLIWKHGLVWULEXWLRQLVPDGHWRDQLQGLYLGXDOUHWLUHPHQW
DFFRXQWGHVFULEHGLQVHFWLRQ D WRDQLQGLYLGXDOUHWLUHPHQWDQQXLW\GHVFULEHGLQ
VHFWLRQ E RUWRDTXDOLILHGGHILQHGFRQWULEXWLRQSODQGHVFULEHGLQVHFWLRQ D
RU D WKDWDJUHHVWRVHSDUDWHO\DFFRXQWIRUDPRXQWVVRWUDQVIHUUHGLQFOXGLQJ
VHSDUDWHO\DFFRXQWLQJIRUWKHSRUWLRQRIVXFKGLVWULEXWLRQZKLFKLVQRWVRLQFOXGLEOH
E ³(OLJLEOHUHWLUHPHQWSODQ´LVDQLQGLYLGXDOUHWLUHPHQWDFFRXQWGHVFULEHGLQVHFWLRQ
D RIWKH&RGHDQLQGLYLGXDOUHWLUHPHQWDQQXLW\GHVFULEHGLQVHFWLRQ E RI
WKH&RGHDQDQQXLW\SODQGHVFULEHGLQVHFWLRQ D RIWKH&RGHDQHOLJLEOHGHIHUUHG
FRPSHQVDWLRQSODQGHVFULEHGLQVHFWLRQ E RIWKH&RGHZKLFKLVPDLQWDLQHGE\
DQHOLJLEOHHPSOR\HUGHVFULEHGLQVHFWLRQ H $ RIWKH&RGHDQGZKLFKDJUHHV
WRVHSDUDWHO\DFFRXQWIRUDPRXQWVWUDQVIHUUHGLQWRVXFKSODQIURPWKLV3ODQDQDQQXLW\
FRQWUDFWGHVFULEHGLQVHFWLRQ E RIWKH&RGHRUDTXDOLILHGWUXVWGHVFULEHGLQ
VHFWLRQ D RIWKH&RGHWKDWDFFHSWVWKHGLVWULEXWHH¶VHOLJLEOHUROORYHUGLVWULEXWLRQ
7KLVGHILQLWLRQVKDOODOVRDSSO\LQWKHFDVHRIDQHOLJLEOHUROORYHUGLVWULEXWLRQWRWKH
VXUYLYLQJVSRXVH
99
^ `
F ³'LVWULEXWHH´LQFOXGHVD0HPEHURUIRUPHU0HPEHU,QDGGLWLRQWKH0HPEHU¶VRU
IRUPHU0HPEHU¶VVXUYLYLQJVSRXVHLVDGLVWULEXWHHZLWKUHJDUGWRWKHLQWHUHVWRIWKH
VSRXVH)RUGLVWULEXWLRQVRFFXUULQJLQSODQ\HDUVEHJLQQLQJDIWHU'HFHPEHU
RULQDQ\HDUOLHUSODQ\HDUEHJLQQLQJDIWHU'HFHPEHU DGLVWULEXWHHDOVR
LQFOXGHVWKH0HPEHU¶VQRQVSRXVHGHVLJQDWHGEHQHILFLDU\,QWKHFDVHRIDQRQ
VSRXVHEHQHILFLDU\WKHGLUHFWUROORYHUPD\EHPDGHRQO\WRDWUDGLWLRQDO,5$RU5RWK
,5$WKDWLVHVWDEOLVKHGRQEHKDOIRIWKHGHVLJQDWHGEHQHILFLDU\DQGWKDWZLOOEHWUHDWHG
DVDQLQKHULWHG,5$SXUVXDQWWRWKHSURYLVLRQVRI F $OVRLQWKLVFDVHWKH
GHWHUPLQDWLRQ RI DQ\ UHTXLUHG PLQLPXP GLVWULEXWLRQ XQGHU D WKDW LV
LQHOLJLEOHIRUUROORYHUVKDOOEHPDGHLQDFFRUGDQFHZLWK1RWLFH4 $DQG
,5%
G ³'LUHFWUROORYHU´LVDSD\PHQWE\WKH3ODQWRWKHHOLJLEOHUHWLUHPHQWSODQVSHFLILHGE\
WKHGLVWULEXWHH
5ROORYHUV RU 7UDQVIHUV LQWR WKH )XQG 7KH IXQG ZLOO DFFHSW 0HPEHU UROORYHU FDVK
FRQWULEXWLRQVDQGRUGLUHFWUROORYHUVRIGLVWULEXWLRQVIRUWKHSXUFKDVHRISHUPLVVLYHVHUYLFH
FUHGLWXQGHUWKH3ODQDVIROORZV
D 'LUHFW5ROORYHUVRU0HPEHU5ROORYHU&RQWULEXWLRQVIURP2WKHU3ODQV7KH3ODQZLOO
DFFHSW HLWKHU D GLUHFW UROORYHU RI DQ HOLJLEOH UROORYHU GLVWULEXWLRQ RU D 0HPEHU
FRQWULEXWLRQRIDQHOLJLEOHUROORYHUGLVWULEXWLRQIURPDTXDOLILHGSODQGHVFULEHGLQ
VHFWLRQ D RIWKH&RGHIURPDQDQQXLW\FRQWUDFWGHVFULEHGLQVHFWLRQ E RI
WKH &RGH RU IURP DQ HOLJLEOH SODQ XQGHU VHFWLRQ E RI WKH&RGH ZKLFK LV
PDLQWDLQHGE\DVWDWHSROLWLFDOVXEGLYLVLRQRIDVWDWHRUDQ\DJHQF\RULQVWUXPHQWDOLW\
RIDVWDWHRUSROLWLFDOVXEGLYLVLRQRIDVWDWH
E 0HPEHU5ROORYHU&RQWULEXWLRQVIURP D 3ODQVDQG,5$V7KH3ODQZLOODFFHSW
D0HPEHUUROORYHUFRQWULEXWLRQRIWKHSRUWLRQRIDGLVWULEXWLRQIURPTXDOLILHGSODQ
GHVFULEHGLQVHFWLRQ D RIWKH&RGHRUIURPDQLQGLYLGXDOUHWLUHPHQWDFFRXQWRU
DQQXLW\GHVFULEHGLQVHFWLRQ D RU E RIWKH&RGHWKDWLVHOLJLEOHWREHUROOHG
RYHUDQGZRXOGRWKHUZLVHEHLQFOXGLEOHLQWKH0HPEHU¶VJURVVLQFRPH
F 7KH3ODQPD\DFFHSWGLUHFWWUDQVIHUVIURPDTXDOLILHGSODQRQEHKDOIRIDQ(PSOR\HH
SULRUWRWKHGDWHWKH(PSOR\HHVDWLVILHVWKH3ODQ
VHOLJLELOLW\UHTXLUHPHQWV,IWKH3ODQ
DFFHSWVVXFKDGLUHFWWUDQVIHUWKH(PSOR\HHZLOOEHWUHDWHGDVD0HPEHUIRUDOO
SXUSRVHVRIWKH3ODQH[FHSWWKH(PSOR\HHZLOOQRWDFFUXHEHQHILWVXQWLOKHDFWXDOO\
EHFRPHVD0HPEHULQWKH3ODQ,IWKH(PSOR\HHWHUPLQDWHVHPSOR\PHQWZLWKWKH&LW\
SULRUWREHFRPLQJD0HPEHUWKHWUDQVIHUUHGDVVHWVZLOOEHDVSURYLGHGE\WKLV3ODQ
$UWLFOH 0D[LPXPEHQHILWOLPLWV
%DVLF/LPLWDWLRQ1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQVRIWKLVSODQWRWKHFRQWUDU\WKH
0HPEHUFRQWULEXWLRQVSDLGWRDQGUHWLUHPHQWEHQHILWVSDLGIURPWKHSODQVKDOOEHOLPLWHG
WRVXFKH[WHQWDVPD\EHQHFHVVDU\WRFRQIRUPWRWKHUHTXLUHPHQWVRI&RGH6HFWLRQIRU
DTXDOLILHGUHWLUHPHQWSODQ%HIRUH-DQXDU\ DSODQ0HPEHUPD\QRWUHFHLYHDQ
DQQXDOEHQHILWWKDWH[FHHGVWKHOLPLWVVSHFLILHGLQ&RGH6HFWLRQ E VXEMHFWWRWKH
DSSOLFDEOHDGMXVWPHQWVLQWKDWVHFWLRQ2QDQGDIWHU-DQXDU\ DSODQ0HPEHUPD\
QRWUHFHLYHDQDQQXDOEHQHILWWKDWH[FHHGVWKHGROODUDPRXQWVSHFLILHGLQ&RGH6HFWLRQ
100
^ `
E $ VXEMHFWWRWKHDSSOLFDEOHDGMXVWPHQWVLQ&RGH6HFWLRQ E DQG
VXEMHFWWRDQ\DGGLWLRQDOOLPLWVWKDWPD\EHVSHFLILHGLQWKLVSODQ)RUSXUSRVHVRIWKLV
$UWLFOH³OLPLWDWLRQ\HDU´VKDOOEHWKHFDOHQGDU\HDU
)RUSXUSRVHVRI&RGH6HFWLRQ E WKHWHUP³DQQXDOEHQHILW´PHDQVDEHQHILWSD\DEOH
DQQXDOO\LQWKHIRUPRIDVWUDLJKWOLIHDQQXLW\ZLWKRXWUHJDUGWRWKHEHQHILWDWWULEXWDEOHWR
DIWHUWD[HPSOR\HHFRQWULEXWLRQV H[FHSWSXUVXDQWWR&RGHVHFWLRQ Q DQGWRUROORYHU
FRQWULEXWLRQV DVGHILQHGLQ&RGHVHFWLRQ E $ DQGZLWKWKHEHQHILWDWWULEXWDEOH
GHWHUPLQHGLQDFFRUGDQFHZLWK7UHDVXU\5HJXODWLRQVORFDWHGLQ&)5 E
$GMXVWPHQWVWR%DVLF/LPLWDWLRQIRU)RUPRI%HQHILW,IWKHIRUPRIEHQHILWLVRWKHUWKDQ
WKHDQQXDOEHQHILWGHILQHGLQ6HFWLRQWKHEHQHILWVKDOOEHDGMXVWHGVRWKDWLWLVWKH
HTXLYDOHQWRIWKHDQQXDOEHQHILWXVLQJIDFWRUVSUHVFULEHGLQ7UHDVXU\5HJXODWLRQV,IWKH
IRUPRIEHQHILWZLWKRXWUHJDUGWRDQ\DXWRPDWLFEHQHILWLQFUHDVHIHDWXUHLVQRWDVWUDLJKW
OLIHDQQXLW\RUDTXDOLILHGMRLQWDQGVXUYLYRUDQQXLW\WKHQWKHSUHFHGLQJVHQWHQFHLVDSSOLHG
E\HLWKHUUHGXFLQJWKH&RGH6HFWLRQ E OLPLWDSSOLFDEOHDWWKHDQQXLW\VWDUWLQJGDWHRU
E\DGMXVWLQJWKHIRUPRIEHQHILWWRDQDFWXDULDOO\HTXLYDOHQWDPRXQWGHWHUPLQHGXVLQJWKH
DVVXPSWLRQVVSHFLILHGLQ&)5 E WKDWWDNHVLQWRDFFRXQWWKHDGGLWLRQDOEHQHILWV
XQGHUWKHIRUPRIEHQHILWDVIROORZV
D %HQHILW)RUPV1RW6XEMHFWWR H 7KHVWUDLJKWOLIHDQQXLW\WKDWLVDFWXDULDOO\
HTXLYDOHQWWRWKH0HPEHU¶VIRUPRIEHQHILWVKDOOEHGHWHUPLQHGXQGHUWKLVVXEVHFWLRQ
LIWKHIRUPRID0HPEHU¶VEHQHILWLVHLWKHUDQRQGHFUHDVLQJDQQXLW\ RWKHUWKDQD
VWUDLJKWOLIHDQQXLW\ SD\DEOHIRUDSHULRGRIQRWOHVVWKDQWKHOLIHRIWKH(PSOR\HH RU
LQWKHFDVHRIDTXDOLILHGSUHUHWLUHPHQWVXUYLYRUDQQXLW\WKHOLIHRIWKHVXUYLYLQJ
VSRXVH RUDQDQQXLW\WKDWGHFUHDVHVGXULQJWKHOLIHRIWKH0HPEHUPHUHO\EHFDXVH
RI D WKHGHDWKRIWKHVXUYLYRUDQQXLWDQW EXWRQO\LIWKHUHGXFWLRQLVQRWEHORZ
RIWKHEHQHILWSD\DEOHEHIRUHWKHGHDWKRIWKHVXUYLYRUDQQXLWDQW RU E WKHFHVVDWLRQ
RUUHGXFWLRQRI6RFLDO6HFXULW\VXSSOHPHQWVRUTXDOLILHGGLVDELOLW\SD\PHQWV DV
GHILQHGLQ&RGH6HFWLRQ D )RUDEHQHILWSDLGLQDIRUPGHVFULEHGLQWKLV
VXEVHFWLRQWKHDFWXDULDOO\HTXLYDOHQWVWUDLJKWOLIHDQQXLW\LVHTXDOWRWKHJUHDWHURI
7KHDQQXDODPRXQWRIWKHVWUDLJKWOLIHDQQXLW\ LIDQ\ SD\DEOHWRWKH0HPEHU
XQGHUWKHSODQFRPPHQFLQJDWWKHVDPHDQQXLW\VWDUWLQJGDWHDVWKH0HPEHU¶V
IRUPRIEHQHILWRU
WKHDQQXDODPRXQWRIWKHVWUDLJKWOLIHDQQXLW\FRPPHQFLQJDWWKHVDPHDQQXLW\
VWDUWLQJGDWHWKDWKDVWKHVDPHDFWXDULDOSUHVHQWYDOXHDVWKH0HPEHU¶VIRUPRI
EHQHILWFRPSXWHGXVLQJDSHUFHQWLQWHUHVWUDWHDVVXPSWLRQDQGWKHDSSOLFDEOH
PRUWDOLW\WDEOHVGHVFULEHGLQ&RGH6HFWLRQ H % 1RWLFHRUDQ\
VXEVHTXHQW,QWHUQDO 5HYHQXH 6HUYLFH JXLGDQFH LPSOHPHQWLQJ &RGH6HFWLRQ
H % RU
E %HQHILW)RUPV6XEMHFWWR H ,IDIRUPRI0HPEHU¶VEHQHILWLVRWKHUWKDQD
EHQHILWIRUPGHVFULEHGLQ6HFWLRQ D WKHDFWXDULDOO\HTXLYDOHQWVWUDLJKWOLIH
DQQXLW\EHQHILWWKDWLVWKHJUHDWHVWRI
7KHDQQXDODPRXQWRIWKHVWUDLJKWOLIHDQQXLW\FRPPHQFLQJDWWKHDQQXLW\
VWDUWLQJGDWHWKDWKDVWKHVDPHDFWXDULDOSUHVHQWYDOXHDVWKHSDUWLFXODUIRUPRI
101
^ `
EHQHILWSD\DEOHFRPSXWHGXVLQJWKHLQWHUHVWUDWHDQGPRUWDOLW\WDEOHRUWDEXODU
IDFWRUVSHFLILHGLQWKHSODQIRUDFWXDULDOH[SHULHQFH
7KHDQQXDODPRXQWRIWKHVWUDLJKWOLIHDQQXLW\FRPPHQFLQJDWWKHDQQXLW\
VWDUWLQJGDWHWKDWKDVWKHVDPHDFWXDULDOSUHVHQWYDOXHDVWKHSDUWLFXODUIRUPRI
EHQHILWSD\DEOHFRPSXWHGXVLQJDILYHDQGRQHKDOISHUFHQWLQWHUHVWDVVXPSWLRQ
IRUWKHDSSOLFDEOHVWDWXWRU\LQWHUHVWDVVXPSWLRQDQG L IRU\HDUVSULRUWR-DQXDU\
WKH DSSOLFDEOH PRUWDOLW\ WDEOHV IRU WKH GLVWULEXWLRQ XQGHU &)5
H G 5HYHQXH5XOLQJRUDQ\VXEVHTXHQW5HYHQXH5XOLQJ
PRGLI\LQJWKHDSSOLFDEOHSURYLVLRQVRI5HYHQXH5XOLQJ DQG LL IRU
\HDUVDIWHU'HFHPEHUWKHDSSOLFDEOHPRUWDOLW\WDEOHVGHVFULEHGLQ&RGH
6HFWLRQ H % 1RWLFH RU DQ\ VXEVHTXHQW ,QWHUQDO 5HYHQXH
6HUYLFHJXLGDQFHLPSOHPHQWLQJ&RGH6HFWLRQ H % RU
7KHDQQXDODPRXQWRIWKHVWUDLJKWOLIHDQQXLW\FRPPHQFLQJDWWKHDQQXLW\
VWDUWLQJGDWHWKDWKDVWKHVDPHDFWXDULDOSUHVHQWYDOXHDVWKHSDUWLFXODUIRUPRI
EHQHILWSD\DEOHFRPSXWHGXVLQJWKHDSSOLFDEOHLQWHUHVWUDWHIRUWKHGLVWULEXWLRQ
XQGHU&)5 H G WKH\HDU7UHDVXU\UDWHSULRUWR-DQXDU\
XVLQJWKHUDWHLQHIIHFWIRUWKHPRQWKSULRUWRUHWLUHPHQWDQGRQDQGDIWHU
-DQXDU\XVLQJWKHUDWHLQHIIHFWIRUWKHILUVWGD\RIWKHSODQ\HDUZLWKD
RQH\HDUVWDELOL]DWLRQSHULRGDQG L IRU\HDUVSULRUWR-DQXDU\ WKH
DSSOLFDEOHPRUWDOLW\WDEOHVIRUWKHGLVWULEXWLRQXQGHU&)5 H G
WKHPRUWDOLW\WDEOHVSHFLILHGLQ5HYHQXH5XOLQJRUDQ\VXEVHTXHQW
5HYHQXH5XOLQJPRGLI\LQJWKHDSSOLFDEOHSURYLVLRQVRI5HYHQXH5XOLQJ
DQG LL IRU\HDUVDIWHU'HFHPEHUWKHDSSOLFDEOHPRUWDOLW\WDEOHV
GHVFULEHGLQ&RGH6HFWLRQ H % 1RWLFHRUDQ\VXEVHTXHQW
,QWHUQDO5HYHQXH6HUYLFHJXLGDQFHLPSOHPHQWLQJ&RGH6HFWLRQ H %
GLYLGHGE\
F 7KHDFWXDU\PD\DGMXVWWKH E OLPLWDWWKDWDQQXLW\VWDUWLQJGDWHLQDFFRUGDQFH
ZLWKSDUDJUDSKV DQG DERYH
%HQHILWV1RW7DNHQLQWR$FFRXQW)RUSXUSRVHVRIWKLV$UWLFOHWKHIROORZLQJEHQHILWVVKDOO
QRWEHWDNHQLQWRDFFRXQWLQDSSO\LQJWKHVHOLPLWV
D $Q\DQFLOODU\EHQHILWZKLFKLVQRWGLUHFWO\UHODWHGWRUHWLUHPHQWLQFRPHEHQHILWV
E 6XUYLYRUEHQHILWVSD\DEOHWRDVXUYLYLQJVSRXVHXQGHUDTXDOLILHGMRLQWDQGVXUYLYRU
DQQXLW\WRWKHH[WHQWVXFKEHQHILWVZRXOGQRWEHSD\DEOHLIWKH0HPEHU¶VEHQHILWZHUH
SDLGLQDQRWKHUIRUP
F $Q\ RWKHU EHQHILW QRW UHTXLUHG XQGHU E RI WKH &RGH DQG 5HJXODWLRQV
WKHUHXQGHUWREHWDNHQLQWRDFFRXQWIRUSXUSRVHVRIWKHOLPLWDWLRQRI&RGH6HFWLRQ
E
&2/$(IIHFW(IIHFWLYHRQDQGDIWHU-DQXDU\IRUSXUSRVHVRIDSSO\LQJWKHOLPLWV
XQGHU&RGH6HFWLRQ E WKH³/LPLW´ WKHIROORZLQJZLOODSSO\
D $0HPEHU¶VDSSOLFDEOHOLPLWZLOOEHDSSOLHGWRWKH0HPEHU¶VDQQXDOEHQHILWLQWKH
0HPEHU¶VILUVWOLPLWDWLRQ\HDURIEHQHILWSD\PHQWVZLWKRXWUHJDUGWRDQ\DXWRPDWLF
FRVWRIOLYLQJDGMXVWPHQWV
102
^ `
E WKHUHDIWHULQDQ\VXEVHTXHQWOLPLWDWLRQ\HDUD0HPEHU¶VDQQXDOEHQHILWLQFOXGLQJ
DQ\DXWRPDWLFFRVWRIOLYLQJLQFUHDVHVVKDOOEHWHVWHGXQGHUWKHWKHQDSSOLFDEOH
EHQHILWOLPLWLQFOXGLQJDQ\DGMXVWPHQWWRWKH&RGH6HFWLRQ E $ GROODUOLPLW
XQGHU&RGH6HFWLRQ G DQGWKHUHJXODWLRQVWKHUHXQGHU EXW
F LQQRHYHQWVKDOOD0HPEHU¶VEHQHILWSD\DEOHXQGHUWKHSODQLQDQ\OLPLWDWLRQ\HDUEH
JUHDWHU WKDQ WKH OLPLW DSSOLFDEOH DW WKH DQQXLW\ VWDUWLQJ GDWH DV LQFUHDVHG LQ
VXEVHTXHQW\HDUVSXUVXDQWWR&RGH6HFWLRQ G DQGWKHUHJXODWLRQVWKHUHXQGHU
8QOHVVRWKHUZLVHVSHFLILHGLQWKHSODQIRUSXUSRVHVRIDSSO\LQJWKHOLPLWVXQGHU&RGH
6HFWLRQ E D0HPEHU¶VDSSOLFDEOHOLPLWZLOOEHDSSOLHGWDNLQJLQWRFRQVLGHUDWLRQFRVWRIOLYLQJ
LQFUHDVHVDVUHTXLUHGE\6HFWLRQ E RIWKH&RGHDQGDSSOLFDEOH7UHDVXU\5HJXODWLRQV
2WKHU$GMXVWPHQWVLQ/LPLWDWLRQV
D ,QWKHHYHQWWKH0HPEHU¶VUHWLUHPHQWEHQHILWVEHFRPHSD\DEOHEHIRUHDJHVL[W\WZR
WKH OLPLW SUHVFULEHG E\ WKLV $UWLFOH VKDOO EH UHGXFHG LQDFFRUGDQFH ZLWK
UHJXODWLRQVLVVXHGE\WKH6HFUHWDU\RIWKH7UHDVXU\SXUVXDQWWRWKHSURYLVLRQVRI&RGH
6HFWLRQ E RIWKH&RGHVRWKDWVXFKOLPLW DVVRUHGXFHG HTXDOVDQDQQXDOVWUDLJKW
OLIHEHQHILW ZKHQVXFKUHWLUHPHQWLQFRPHEHQHILWEHJLQV ZKLFKLVHTXLYDOHQWWRDQ
DQQXDO EHQHILW LQ WKH DPRXQW RI WKH DSSOLFDEOH GROODU OLPLWDWLRQ RI 6HFWLRQ
E $ RIWKH,QWHUQDO5HYHQXH&RGH DVDGMXVWHGSXUVXDQWWR6HFWLRQ G
RIWKH,QWHUQDO5HYHQXH&RGH EHJLQQLQJDWDJHVL[W\WZR
E ,QWKHHYHQWWKH0HPEHU¶VEHQHILWLVEDVHGRQDWOHDVWILIWHHQ \HDUVRIFUHGLWHG
VHUYLFHDVDIXOOWLPHSROLFHRIILFHURUILUHILJKWHUWKHDGMXVWPHQWVSURYLGHGIRULQ
' DERYHVKDOOQRWDSSO\
F 7KHUHGXFWLRQVSURYLGHGIRULQ ' DERYHVKDOOQRWEHDSSOLFDEOHWRGLVDELOLW\
EHQHILWVRUSUHUHWLUHPHQWGHDWKEHQHILWV
G ,QWKHHYHQWWKH0HPEHU¶VUHWLUHPHQWEHQHILWEHFRPHVSD\DEOHDIWHUDJHVL[W\ILYH
IRUSXUSRVHVRIGHWHUPLQLQJZKHWKHUWKLVEHQHILWPHHWVWKHOLPLWVHWIRUWKLQ
VXEVHFWLRQ E KHUHLQVXFKEHQHILWVKDOOEHDGMXVWHGVRWKDWLWLVDFWXDULDOO\HTXLYDOHQW
WRWKHEHQHILWEHJLQQLQJDWDJHVL[W\ILYH 7KLVDGMXVWPHQWVKDOOEHPDGHLQ
DFFRUGDQFHZLWKUHJXODWLRQVSURPXOJDWHGE\WKH6HFUHWDU\RIWKH7UHDVXU\RUKLV
GHOHJDWH
/HVVWKDQ7HQ <HDUVRI6HUYLFH7KHPD[LPXPUHWLUHPHQWEHQHILWVSD\DEOHXQGHUWKLV
$UWLFOHWRDQ\0HPEHUZKRKDVFRPSOHWHGOHVVWKDQWHQ \HDUVRIFUHGLWHGVHUYLFHVKDOO
EHWKHDPRXQWGHWHUPLQHGXQGHU6HFWLRQPXOWLSOLHGE\DIUDFWLRQWKHQXPHUDWRURI
ZKLFKLVWKHQXPEHURIWKH0HPEHU¶V\HDUVRIFUHGLWHGVHUYLFHDQGWKHGHQRPLQDWRURI
ZKLFKLVWHQ 7KHUHGXFWLRQSURYLGHGE\WKLV$UWLFOHFDQQRWUHGXFHWKHPD[LPXP
EHQHILWEHORZRIWKHOLPLWGHWHUPLQHGZLWKRXWUHJDUGWRWKLVVXEVHFWLRQ7KHUHGXFWLRQ
SURYLGHGIRULQWKLV$UWLFOHVKDOOQRWEHDSSOLFDEOHWRSUHUHWLUHPHQWGLVDELOLW\EHQHILWVRU
SUHUHWLUHPHQWGHDWKEHQHILWV
3DUWLFLSDWLRQLQ2WKHU'HILQHG%HQHILW3ODQV7KHOLPLWRIWKLV$UWLFOHZLWKUHVSHFWWRDQ\
0HPEHUZKRDWDQ\WLPHKDVEHHQD0HPEHULQDQ\RWKHUGHILQHGEHQHILWSODQDVGHILQHG
LQ&RGH6HFWLRQ M PDLQWDLQHGE\WKHHPSOR\HUVKDOODSSO\DVLIWKHWRWDOEHQHILWV
SD\DEOHXQGHUDOOHPSOR\HUGHILQHGEHQHILWSODQVLQZKLFKWKH0HPEHUKDVEHHQD0HPEHU
ZHUHSD\DEOHIURPRQHSODQ
103
^ `
7HQ7KRXVDQG'ROODU /LPLW1RWZLWKVWDQGLQJDQ\WKLQJLQWKLV$UWLFOHWRWKH
FRQWUDU\WKHUHWLUHPHQWEHQHILWSD\DEOHZLWKUHVSHFWWRD0HPEHUVKDOOEHGHHPHGQRWWR
H[FHHGWKHOLPLWVHWIRUWKLQWKLV$UWLFOHLIWKHEHQHILWVSD\DEOHZLWKUHVSHFWWRVXFK0HPEHU
XQGHUWKLVSODQDQGXQGHUDOORWKHUTXDOLILHGGHILQHGEHQHILWSHQVLRQSODQVWRZKLFKWKH
HPSOR\HUFRQWULEXWHVGRQRWH[FHHGWHQWKRXVDQGGROODUV IRUWKHDSSOLFDEOH
OLPLWDWLRQ\HDUDQGIRUDQ\SULRUOLPLWDWLRQ\HDUDQGWKHHPSOR\HUKDVQRWDWDQ\WLPH
PDLQWDLQHG D TXDOLILHG GHILQHG FRQWULEXWLRQ SODQ LQ ZKLFK WKH 0HPEHU SDUWLFLSDWHG
SURYLGHGKRZHYHUWKDWLIWKH0HPEHUKDVFRPSOHWHGOHVVWKDQWHQ\HDUVRIFUHGLWHG
VHUYLFHWKHOLPLWXQGHUWKLVVXEVHFWLRQVKDOOEHDUHGXFHGOLPLWHTXDOWRWHQWKRXVDQGGROODUV
PXOWLSOLHGE\DIUDFWLRQWKHQXPHUDWRURIZKLFKLVWKHQXPEHURIWKH0HPEHU¶V
\HDUVRIFUHGLWHGVHUYLFHDQGWKHGHQRPLQDWRURIZKLFKLVWHQ
5HGXFWLRQRI%HQHILWV5HGXFWLRQRIEHQHILWVDQGRUFRQWULEXWLRQVWRDOOSODQVZKHUH
UHTXLUHGVKDOOEHDFFRPSOLVKHGE\ILUVWUHGXFLQJWKH0HPEHU¶VEHQHILWXQGHUDQ\GHILQHG
EHQHILWSODQVLQZKLFK0HPEHUSDUWLFLSDWHGVXFKUHGXFWLRQWREHPDGHILUVWZLWKUHVSHFW
WRWKHSODQLQZKLFK0HPEHUPRVWUHFHQWO\DFFUXHGEHQHILWVDQGWKHUHDIWHULQVXFKSULRULW\
DVVKDOOEHGHWHUPLQHGE\WKHERDUGDQGWKHSODQDGPLQLVWUDWRURIVXFKRWKHUSODQVDQG
QH[WE\UHGXFLQJRUDOORFDWLQJH[FHVVIRUIHLWXUHVWRGHILQHGFRQWULEXWLRQSODQVLQZKLFKWKH
0HPEHUSDUWLFLSDWHGVXFKUHGXFWLRQWREHPDGHILUVWZLWKUHVSHFWWRWKHSODQLQZKLFKWKH
0HPEHU PRVW UHFHQWO\ DFFUXHG EHQHILWV DQG WKHUHDIWHU LQ VXFK SULRULW\ DV VKDOO EH
HVWDEOLVKHGE\WKHERDUGDQGWKHSODQDGPLQLVWUDWRUIRUVXFKRWKHUSODQVSURYLGHGKRZHYHU
WKDWQHFHVVDU\UHGXFWLRQVPD\EHPDGHLQDGLIIHUHQWPDQQHUDQGSULRULW\SXUVXDQWWRWKH
DJUHHPHQWRIWKHERDUGDQGWKHSODQDGPLQLVWUDWRURIDOORWKHUSODQVFRYHULQJVXFK0HPEHU
6HUYLFH&UHGLW3XUFKDVH/LPLWV
D (IIHFWLYH IRU SHUPLVVLYH VHUYLFH FUHGLW FRQWULEXWLRQV PDGHLQ OLPLWDWLRQ \HDUV
EHJLQQLQJDIWHU'HFHPEHU LID0HPEHUPDNHVRQHRUPRUHFRQWULEXWLRQVWR
SXUFKDVHSHUPLVVLYHVHUYLFHFUHGLWXQGHUWKHSODQWKHQWKHUHTXLUHPHQWVRIWKLV
$UWLFOHZLOOEHWUHDWHGDVPHWRQO\LI
WKHUHTXLUHPHQWVRI&RGH6HFWLRQ E DUHPHWGHWHUPLQHGE\WUHDWLQJWKH
DFFUXHGEHQHILWGHULYHGIURPDOOVXFKFRQWULEXWLRQVDVDQDQQXDOEHQHILWIRU
SXUSRVHVRI&RGH6HFWLRQ E RU
WKHUHTXLUHPHQWVRI&RGH6HFWLRQ F DUHPHWGHWHUPLQHGE\WUHDWLQJDOO
VXFKFRQWULEXWLRQVDVDQQXDODGGLWLRQVIRUSXUSRVHVRI&RGH6HFWLRQ F
)RUSXUSRVHVRIDSSO\LQJVXESDUDJUDSK D WKHSODQZLOOQRWIDLOWRPHHWWKH
UHGXFHG OLPLW XQGHU &RGH VHFWLRQ E & VROHO\ E\ UHDVRQRI WKLV
VXESDUDJUDSKDQGIRUSXUSRVHVRIDSSO\LQJVXESDUDJUDSK D WKHSODQZLOO
QRWIDLOWRPHHWWKHSHUFHQWDJHOLPLWDWLRQXQGHU6HFWLRQ F % RIWKH
&RGHVROHO\E\UHDVRQRIWKLVVXESDUDJUDSK
E )RUSXUSRVHVRIWKLV6HFWLRQWKHWHUP³SHUPLVVLYHVHUYLFHFUHGLW´PHDQVVHUYLFH
FUHGLW²
UHFRJQL]HGE\WKHSODQIRUSXUSRVHVRIFDOFXODWLQJD0HPEHU¶VEHQHILWXQGHU
WKHSODQ
ZKLFKVXFK0HPEHUKDVQRWUHFHLYHGXQGHUWKHSODQDQG
104
^ `
ZKLFK VXFK 0HPEHU PD\ UHFHLYH RQO\ E\ PDNLQJ D YROXQWDU\ DGGLWLRQDO
FRQWULEXWLRQLQDQDPRXQWGHWHUPLQHGXQGHUWKHSODQZKLFKGRHVQRWH[FHHG
WKHDPRXQWQHFHVVDU\WRIXQGWKHEHQHILWDWWULEXWDEOHWRVXFKVHUYLFHFUHGLW
(IIHFWLYHIRUSHUPLVVLYHVHUYLFHFUHGLWFRQWULEXWLRQVPDGHLQOLPLWDWLRQ\HDUVEHJLQQLQJ
DIWHU'HFHPEHU VXFKWHUPPD\LIRWKHUZLVHSURYLGHGE\WKHSODQLQFOXGHVHUYLFH
FUHGLWIRUSHULRGVIRUZKLFKWKHUHLVQRSHUIRUPDQFHRIVHUYLFHDQGQRWZLWKVWDQGLQJ
VXEVHFWLRQ E PD\LQFOXGHVHUYLFHFUHGLWHGLQRUGHUWRSURYLGHDQLQFUHDVHGEHQHILWIRU
VHUYLFHFUHGLWZKLFKD0HPEHULVUHFHLYLQJXQGHUWKHSODQ
F )RUSXUSRVHVRIDSSO\LQJWKHOLPLWVLQWKLV6HFWLRQRQO\DQGIRUQRRWKHU
SXUSRVH WKH GHILQLWLRQ RI FRPSHQVDWLRQ ZKHUH DSSOLFDEOH ZLOO EH FRPSHQVDWLRQ
DFWXDOO\SDLGRUPDGHDYDLODEOHGXULQJDOLPLWDWLRQ\HDUH[FHSWDVQRWHGEHORZDQG
DVSHUPLWWHGE\7UHDVXU\5HJXODWLRQVORFDWHGLQ&)5 F RUVXFFHVVRU
UHJXODWLRQV8QOHVVDQRWKHUGHILQLWLRQRIFRPSHQVDWLRQWKDWLVSHUPLWWHGE\7UHDVXU\
5HJXODWLRQV6HFWLRQ F RUVXFFHVVRUUHJXODWLRQLVVSHFLILHGE\WKHSODQ
FRPSHQVDWLRQZLOOEHGHILQHGDVZDJHVZLWKLQWKHPHDQLQJRI&RGH6HFWLRQ D
DQGDOORWKHUSD\PHQWVRIFRPSHQVDWLRQWRDPHPEHUE\DHPSOR\HUIRUZKLFKWKH
HPSOR\HULVUHTXLUHGWRIXUQLVKWKHPHPEHUDZULWWHQVWDWHPHQWXQGHU&RGH6HFWLRQV
G D DQGDQGZLOOEHGHWHUPLQHGZLWKRXWUHJDUGWRDQ\UXOHV
XQGHU&RGH6HFWLRQ D WKDWOLPLWWKHUHPXQHUDWLRQLQFOXGHGLQZDJHVEDVHGRQ
WKHQDWXUHRUORFDWLRQRIWKHHPSOR\PHQWRUWKHVHUYLFHVSHUIRUPHG VXFKDVWKH
H[FHSWLRQIRUDJULFXOWXUDOODERULQ&RGH6HFWLRQ D
+RZHYHU IRU OLPLWDWLRQ \HDUV EHJLQQLQJ DIWHU 'HFHPEHU
FRPSHQVDWLRQZLOODOVRLQFOXGHDPRXQWVWKDWZRXOGRWKHUZLVHEHLQFOXGHGLQ
FRPSHQVDWLRQ EXW IRU DQ HOHFWLRQ XQGHU &RGH 6HFWLRQV D H
K % N RU E )RUOLPLWDWLRQ\HDUVEHJLQQLQJDIWHU'HFHPEHU
FRPSHQVDWLRQZLOODOVRLQFOXGHDQ\HOHFWLYHDPRXQWVWKDWDUHQRW
LQFOXGLEOH LQ WKH JURVV LQFRPH RI WKH PHPEHU E\ UHDVRQ RI &RGH6HFWLRQ
I
)RUOLPLWDWLRQ\HDUVEHJLQQLQJRQDQGDIWHU-DQXDU\FRPSHQVDWLRQIRU
WKHOLPLWDWLRQ\HDUZLOODOVRLQFOXGHFRPSHQVDWLRQSDLGE\WKHODWHURIò
PRQWKV DIWHU DQ PHPEHU¶V VHYHUDQFH IURP HPSOR\PHQW RU WKH HQG RI WKH
OLPLWDWLRQ \HDU WKDW LQFOXGHV WKH GDWH RI WKH PHPEHU¶V VHYHUDQFH IURP
HPSOR\PHQWLI
D WKHSD\PHQWLVUHJXODUFRPSHQVDWLRQIRUVHUYLFHVGXULQJWKHPHPEHU¶V
UHJXODUZRUNLQJKRXUVRUFRPSHQVDWLRQIRUVHUYLFHVRXWVLGHWKHPHPEHU¶V
UHJXODU ZRUNLQJ KRXUV VXFK DV RYHUWLPH RU VKLIW GLIIHUHQWLDO
FRPPLVVLRQVERQXVHVRURWKHUVLPLODUSD\PHQWVDQGDEVHQWDVHYHUDQFH
IURPHPSOR\PHQWWKHSD\PHQWVZRXOGKDYHEHHQSDLGWRWKHPHPEHUKDG
WKHPHPEHUFRQWLQXHGLQHPSOR\PHQWZLWKWKHHPSOR\HU RU
E WKHSD\PHQWLVIRUXQXVHGDFFUXHGERQDILGHVLFNYDFDWLRQRURWKHUOHDYH
WKDWWKHPHPEHUZRXOGKDYHEHHQDEOHWRXVHLIHPSOR\PHQWKDGFRQWLQXHG
%DFNSD\ZLWKLQWKHPHDQLQJRI7UHDVXU\5HJXODWLRQV6HFWLRQ F
J VKDOOEHWUHDWHGDVFRPSHQVDWLRQIRUWKHOLPLWDWLRQ\HDUWRZKLFKWKH
105
^ `
EDFNSD\UHODWHVWRWKHH[WHQWWKHEDFNSD\UHSUHVHQWVZDJHVDQGFRPSHQVDWLRQ
WKDWZRXOGRWKHUZLVHEHLQFOXGHGXQGHUWKLVGHILQLWLRQ
G 1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQRIODZWRWKHFRQWUDU\WKH%RDUGPD\PRGLI\D
UHTXHVW E\ D 0HPEHU WR PDNH D FRQWULEXWLRQ WR WKH SODQ LI WKH DPRXQW RI WKH
FRQWULEXWLRQZRXOGH[FHHGWKHOLPLWVSURYLGHGLQ&RGH6HFWLRQE\XVLQJWKH
IROORZLQJPHWKRGV
,IWKHODZUHTXLUHVDOXPSVXPSD\PHQWIRUWKHSXUFKDVHRIVHUYLFHFUHGLWWKH
%RDUGPD\HVWDEOLVKDSHULRGLFSD\PHQWGHGXFWLRQSODQIRUWKH0HPEHUWR
DYRLGDFRQWULEXWLRQLQH[FHVVRIWKHOLPLWVXQGHU&RGH6HFWLRQV F RU
Q
,ISD\PHQWSXUVXDQWWRVXESDUDJUDSK G ZLOOQRWDYRLGDFRQWULEXWLRQLQ
H[FHVVRIWKHOLPLWVLPSRVHGE\&RGH6HFWLRQ F WKH%RDUGPD\HLWKHU
UHGXFHWKH0HPEHU¶VFRQWULEXWLRQWRDQDPRXQWZLWKLQWKHOLPLWVRIWKDWVHFWLRQ
RUUHIXVHWKH0HPEHU¶VFRQWULEXWLRQ
H ,IWKHDQQXDODGGLWLRQVIRUDQ\0HPEHUIRUDSODQ\HDUH[FHHGWKHOLPLWDWLRQXQGHU
&RGH6HFWLRQ F WKHH[FHVVDQQXDODGGLWLRQZLOOEHFRUUHFWHGDVSHUPLWWHGXQGHU
WKH 0HPEHU 3ODQV &RPSOLDQFH 5HVROXWLRQ 6\VWHP RU VLPLODU ,56 FRUUHFWLRQ
SURJUDP
I )RUOLPLWDWLRQ\HDUVEHJLQQLQJRQRUDIWHU-DQXDU\ D0HPEHU¶VFRPSHQVDWLRQ
IRUSXUSRVHVRIWKLVVXEVHFWLRQVKDOOQRWH[FHHGWKHDQQXDOOLPLWXQGHU&RGH6HFWLRQ
D
$GGLWLRQDO /LPLWDWLRQ RQ 3HQVLRQ %HQHILWV 1RWZLWKVWDQGLQJ DQ\WKLQJ KHUHLQ WR WKH
FRQWUDU\
D 7KHQRUPDOUHWLUHPHQWEHQHILWRUSHQVLRQSD\DEOHWRDUHWLUHHZKREHFRPHVD0HPEHU
RIWKH3ODQDQGZKRKDVQRWSUHYLRXVO\SDUWLFLSDWHGLQVXFK3ODQRQRUDIWHU-DQXDU\
VKDOOQRWH[FHHGRQHKXQGUHGSHUFHQW RIDYHUDJHILQDOFRPSHQVDWLRQ
+RZHYHUQRWKLQJFRQWDLQHGLQWKLV$UWLFOHVKDOODSSO\WRVXSSOHPHQWDOUHWLUHPHQW
EHQHILWVRUWRSHQVLRQLQFUHDVHVDWWULEXWDEOHWRFRVWRIOLYLQJLQFUHDVHVRUDGMXVWPHQWV
E 1R0HPEHUVKDOOEHDOORZHGWRUHFHLYHDUHWLUHPHQWEHQHILWRUSHQVLRQZKLFKLVLQ
SDUWRULQZKROHEDVHGXSRQDQ\VHUYLFHZLWKUHVSHFWWRZKLFKWKH0HPEHULVDOUHDG\
UHFHLYLQJRUZLOOUHFHLYHLQWKHIXWXUHDUHWLUHPHQWEHQHILWRUSHQVLRQIURPDGLIIHUHQW
HPSOR\HU¶V UHWLUHPHQW V\VWHP RU SODQ 7KLV UHVWULFWLRQ GRHV QRW DSSO\ WR VRFLDO
VHFXULW\EHQHILWVRUIHGHUDOEHQHILWVXQGHU&KDSWHU7LWOH86&RGH
106