|
Your Savings Program benefits are designed to work together with the Pension Plan and Social Security benefits to provide you with retirement income.
Highlights
| The Savings Program … |
… Lets Your Account Grow Tax-Deferred … Gives You the Opportunity to Invest in Your Future … Provides 24-Hour Access to Account Information |
What happens to your benefits when... |
Your Savings Program Account
At retirement, you were entitled to receive the full value of your Savings Program account. You had the opportunity to receive your savings all at once or over time — or to defer your total account value. (That is, leave your savings in the Savings Program.)
If your Savings Program account has been deferred, your savings will remain invested in the Savings Program funds as you direct.
In any event, Savings Program required minimum distribution payments will begin no later than December of the year in which you reach age 70-1/2.
The Savings Program Information Sources
The Savings Program makes saving easy. It lets you manage your account over the telephone through a voice response unit or by speaking with a customer service representative. By calling the information line, you can:
- check your account balance and investment performance
- transfer between investment funds
and
- request a withdrawal.
When you call the information line, you will need your PIN and a touchtone phone to use the voice response unit. If you do not have a touch-tone phone, call the information line and speak to a customer service representative.
You received your PIN with your activation kit. You may change your PIN to personalize it any time you wish. Your PIN is confidential and should be kept in a safe place. If you lose your PIN, you may call the information line or log on to the Internet site and a copy of the number will be sent to your home. For security reasons, you can never get your PIN over the phone.
Accessing the System
To activate your Internet account, call the toll-free number for the Savings Program. The number is 1-888-I-SAVE-IT (1-888-472-8348). The voice response unit has a menu selection for account activation. You may choose to talk to a customer service representative, and they will help you with the account activation.
To reach the information line In the United States:
|
After you have activated your account, log on to the internet by typing ttp://oakridge.csplans.com, then simply go to the log in screen, press “log in,” enter your social security number and your PIN, and press submit. Every participant in the program will be able to gain access to the program, as long as they have an account balance.
Working With the Program
After you log on, the system greets you and immediately shows the market value of your account as of a particular date. Remember, our program is valued daily, and the amount shown on the screen is the market value as of the close of business of the previous business day. This value is updated once a day, so the value you see in the morning will be the same value for that entire day. The system is updated with current information sometime after midnight.
If you want to see more information about the program or your account, you must click on the Program Name. Some companies have more than one Savings Program with CitiStreet, so the system allows you to select the proper program. We have only one program, so click the Savings Program button to proceed.
Your Investment Options
You can transfer existing balances — in 1% increments — among the investment options up to 12 times a year, and in any event at least once per quarter. Transfers completed before 4:00 p.m. Eastern time will be effective that day, assuming it is a business day and the New York Stock Exchange is open; otherwise, changes will be effective the next business and market trading day. Confirmation of your transaction will be mailed within two business days.
Any investment involves some degree of financial risk. Actual investment results for your Savings Program balance will vary depending on the fund or funds in which it is invested.
Detailed information about each of the funds is provided in the chart on the following pages. This data is provided for informational purposes only. Before making any investment decision, you should also review the fund prospectuses and fact sheets.
Neither the Company, the Savings Program, or the Joint Retirement and Savings Plan Committee makes any representation that the past performance of these funds is a guarantee nor indicative of their future performance. The Joint Retirement and Savings Plan Committee may change the funds at any time. The funds are valued at market daily. The funds are not protected by any federal or state deposit insurance program.
Investment Earnings
Investment earnings include interest, dividends and market gains/losses resulting from your investments in any of the Savings Program’s funds. Returns you may earn on your investments are continually reinvested in the funds you have chosen.
Investment Options Summary
Transaction Processing
The transactions you request through the information line will ordinarily be processed within the times specified in this book of benefits. However, in certain circumstances, you may experience difficulty in making your request, or your transaction may be delayed. Please remember that the information line is no more than a telephone line.
Telephone service can be interrupted from time to time and, further, a high volume of telephone calls can overload the system and prevent calls from being answered. Transactions may also be delayed if State Street Bank and Trust determines that the delay is necessary — for example, if market conditions require a daily volume limit on trades in an asset, there is suspension in trading of an asset or in the event of a major market or systems disruption. You will be informed if a transaction is not completed on the day requested, and the transaction will be completed as soon as administratively possible thereafter, based on the unit prices in effect when the transaction is completed.
Reward vs. Risk
One way to think of the gain or loss potential of an investment is to think of the potential for reward or the level of risk it offers.
Generally, investments with more risk to principal have the potential to yield higher returns over a longer period of time than investments with less risk.
No one can tell you what balance of reward vs. risk is right for you. It is up to you to decide. When making your decision, however, ask yourself the following questions:
When will you need the money in your accounts? |
What are your investment goals?
Are your investments sufficiently diversified? |
Fund Name |
Investment Objectives |
Investment Strategy |
Fund Holdings |
Factors Affecting Performance |
Fund Manager |
Stable Value Fund (Commingled Fund) |
Maximum safety of principal, stable income and liquidity. |
To invest in investment contracts and high quality money market instruments. |
High quality investment contracts issued by insurance companies, banks, or other financial institutions High quality short-term money market instruments to provide additional diversification and liquidity. |
Lower risk of principal; however, higher inflation risk, because its expected rate of return is usually lower than the other options and may not outpace inflation. |
State Street Global Advisors |
Intermediate-Term Investment Grade Bond Fund |
Preservation of capital with attractive total returns. |
To invest in undervalued investment grade securities in the fixed income market, with an average portfolio maturity ranging from 3 to 7 years. |
U.S. Treasury bonds |
Inflation expectations and interest rate changes affect performance. Long-term decisions made by the fund manager and the nature of the fund's investments should be expected to provide higher returns and higher risks as compared to the Stable Value Fund. |
Wells Fargo Montgomery Asset Management |
Long-Term Investment Grade Bond Fund |
Preservation of capital with attractive total returns. |
To invest in undervalued investment grade securities in the fixed income market, with an average portfolio maturity usually greater than 10 years. |
U.S. Treasury bonds |
Inflation expectations and interest rate changes affect performance. Long-term decisions made by the fund manager and the nature of the fund's investments should be expected to provide higher returns and higher risks as compared to an intermediate-term bond portfolio. |
PIMCO |
American Balanced Fund |
Conservation of capital, current income and long-term capital growth. |
To invest in a diversified portfolio of assets including stocks, bonds, and other fixed income securities, responding to market changes by shifting its asset allocation. | Stocks in key sectors of the U.S. economy Small amount of non-U.S. securities High quality corporate and government bonds. |
Subject to stock market risk and volatility. Bond values tend to vary inversely with interest rates. Long- term decisions made by the fund manager and the nature of the fund's investments may provide higher returns and higher risks as compared to a long-term bond portfolio. |
Capital Research and Management Company (CRMC) |
Indexed Equity Fund |
Replication of the Standard & Poor's 500 Index investment performance. |
To fully replicate the Standard & Poor's 500 Index portfolio through passive management, trading only when there is a change to the index. Offers exposure to approximately 70% of the U.S. equity market. |
Primarily large U.S. stocks in identical proportions to the Index. Small amount of money market securities to maintain liquidity. |
As a fund investing primarily in common stocks, the fund is subject to market risk – the possibility that common stock prices will decline over short or even extended periods. |
State Street Bank and Trust Company |
The Investment Company of America |
Long-term growth of capital and income, with an emphasis on future dividends and capital appreciation. |
To invest in "blue-chip" companies with proven track records of rising earnings and dividends. |
Primarily stocks and a small percentage of bonds issued by large, well-known U.S. companies May include non-U.S. securities. |
Stocks are subject to market risk. Bond values tend to vary inversely with interest rates. Long-term decisions made by the fund manager and the nature of the fund's investments may provide higher returns and higher risks as compared to a balanced portfolio. |
Capital Research and Management Company (CRMC) |
Vanguard Windsor Fund |
Long-term capital growth and income, as well as a reasonable level of current income. |
To invest primarily in common stocks that are currently considered out of favor or undervalued a "contrarian" approach, which can result in concentrated positions in several industries and companies. |
U.S. common stocks Some fixed income securities and other equities such as convertible preferred stocks. |
Stocks are subject to market risk. Long-term decisions made by the fund manager and the nature of the fund's investments may provide higher returns (and higher risks) as compared to a balanced portfolio. Due to the contrarian approach, there is the potential that the common stock prices will decline over short or even extended periods. |
Wellington Management Company and Sanford C. Berstein and Company |
The Growth Fund of America |
Long-term capital growth. |
To invest in a wide range of companies that appear to offer superior opportunities for long-term growth. |
Primarily U.S. securities May include foreign securities May invest up to 10% in debt securities rated below investment grade. |
Subject to stock market risk and volatility; there is the potential that the common stock prices will decline over short or even extended periods. |
Capital Research and Management Company (CRMC) |
New Perspective Fund |
Long-term capital growth. |
To invest in large established companies in world markets, focusing on changing global trade patterns and related growth opportunities. |
Stocks of companies in major world markets, including the U.S. |
Subject to global market risks, such as exchange rates, currency fluctuations, and political and social instability. |
Capital Research and Management Company (CRMC) |
Small Cap Value Fund |
Long-term growth of capital |
The fund will invest at least 80% of its assets in securities of small companies which the managers feel are undervalued |
Common stock issued by small capitalization companies |
The securities of small capitalization companies generally involve greater risks than those associated with larger, more established companies, and may be subject to erratic price movements. Securities of such companies may lack sufficient liquidity to enable the fund managers to effect sales at an advantageous time or without a substantial drop in price. |
Goldman Sachs Asset Management |
Small Cap Growth Fund |
Seeks to achieve long-term capital appreciation through a diversified portfolio of equity securities of small-and medium-capitalization companies. |
Under normal market conditions, the fund invests at least 65% of its total assets in equity securities of U.S. companies, such as common and preferred stock. The fund generally invests in small – and medium-sized companies, that is, companies with capitalization of $1.5 billion or less. The fund may retain securities that it already has purchased even if the company outgrows the fund’s capitalization limitations. |
U.S. common and preferred stock issued by small and medium-sized companies. |
In addition to risk factors associated with investing in the stock market in general, small and mid-sized companies trade less frequently and in lower volume than the shares of larger companies. This could result in significantly higher volatility in their share price over short and extended periods of time. Small and mid-sized companies may also have more business risk due to limited product lines and less access to financial capital. |
The Managers Funds, LLC |
International Growth Fund |
Seeks to provide long-term growth of capital by investing in companies based outside the United States. |
Invests in securities of strong, growing companies based chiefly in Europe and the Pacific Basin, ranging from small firms to large corporations. The fund can only own securities of issuers domiciled outside the United States, except a nominal portion that, for liquidity purposes, may be held in U.S. dollars and/or equivalents. |
Stocks of large and medium-sized international companies. |
Subject to global market risks, such as exchange rates, currency fluctuations, and political and social instability. |
Capital Research and Management Company (CRMC) |
Withdrawals from Your Deferred Account
If you choose to defer your total account value, you may make partial withdrawals of your savings
during retirement, within certain plan limits. To request a withdrawal, call the information line.
Program Payouts
When you decide to receive your payout, you have a choice of payout methods. You may elect to receive:
- a single lump-sum payment of your total account value
- a partial payment, provided you have a remaining balance of at least $10,000
- monthly installment payments of your account value over a fixed period of 10, 15, or 20 years (as long as this method meets the IRS minimum distributions requirements), with monthly recalculations based on market value and the remaining payment period
- monthly installment payments over a period equal to your life expectancy or the joint life expectancy of you and your spouse, with monthly recalculations based on market value and the remaining payment period. Life expectancies are recalculated each year
or
- monthly installments using the uniform life expectancy table with monthly recalculations based on market value and the remaining payment period. Life expectancies are recalculated each year.
Once you choose an installment payment method, you may not change your election.
If you die, your beneficiary may receive your Savings Program balance in a lump sum. However, your spousal beneficiary may elect a lump-sum payment or monthly installment payments over a five-year period. Your spousal beneficiary may also choose to defer payment.
If your savings are invested in a Vanguard Windsor Fund, you may elect to receive a an in-kind distribution of these funds to the extent your savings are invested in these funds. Please contact Benefits Management for further requirements on obtaining a distribution from your Vanguard account in this manner. All other funds must be liquidated and paid out in cash.
Electing a Payout Method When you decide to receive your payout, you may make your payout election over the phone by calling the information line. If you choose installment payments, you will receive the applicable forms. |
Naming Your Beneficiary
Your beneficiary is the person you name to receive benefits from the Savings Program if you die with a vested balance remaining in your Savings Program account. Your beneficiary can be anyone you wish. However, if you have been married for at least one year and you wish to name someone other than your spouse, you must have your spouse’s written and notarized consent.
Be sure to keep your beneficiary designation up to date. If you do not make a beneficiary designation and you have been married for at least one year at the time of your death, your spouse will receive the value of your vested Savings Program account. If you are single and do not name a beneficiary, your vested Savings Program account will be paid to your estate.
You may change your beneficiary at any time. Simply call the information line or use the Internet to request a beneficiary form. Your beneficiary election will be effective when the Benefit Plans Office receives your completed form.
Taxation of Withdrawals and Final Payouts
In general, your before-tax contributions, Company matching contributions and investment earnings on all types of contributions are taxable when you receive them. The actual tax treatment will depend on your age at the time of receipt. You can find more information about tax treatment of Savings Program distributions in the “Special Tax Information Notice,” which is included with your quarterly statement and also available by calling the information line.
Before Age 59-1/2
If you receive a payment before you reach age-1/2 and you do not roll it over, then, in addition to the regular income tax, you may have to pay an extra tax equal to 10% of the taxable portion of the payment. The additional 10% tax does not apply to your payment if it is:
- paid to you because you separate from service with your employer during or after the year you reach age 55
or
- paid to you as equal (or almost equal)payments over your life or life expectancy (or your and your beneficiary’s lives or life expectancies).
See IRS form 5329 and the Special Tax Notice included with your savings plan statement for more information on the additional 10% tax. You can avoid the income and 10% tax if you roll the taxable portion of your payment over into an IRA or other eligible retirement plan within the time period permitted by law.
Beneficiaries are never subject to the additional 10% tax, regardless of your age at death.
At Age 59-1/2 or Later
If you make a withdrawal or receive a Savings Program distribution after age 59-1/2, you will not have to pay the 10%. If you were at least age 50 on January 1, 1986, the law generally makes 10-year forward averaging(based on 1986 tax rates) available as an alternative, as well as special capital gains treatment provided you were a participant before 1974.
To be sure you are using your benefits to their full advantage, you should check with a tax advisor regarding the specific requirements for using these and other forms of favorable treatment that may apply to your payout. The Benefit Plans Office cannot give you tax advice.
Rollovers and Withholding
Withdrawals and lump sum distributions of your before-tax contributions and Company matching contributions, as adjusted for investment earnings and losses, can be rolled over to an IRA or other eligible retirement plan. Required minimum distributions to employees who have reached age 70-1/2 or retired from the Company after age 70-1/2, and distributions paid out in installments are not eligible for such a rollover. You may roll over the non-taxable (your after-tax contributions) portion of your distribution to an IRA and certain qualified defined contribution plans.
You can roll over all or a portion of your eligible plan payouts either directly or indirectly to an IRA or other eligible retirement plan. With a direct rollover, State Street Bank and Trust will send you a check payable to the trustee of the eligible IRA or plan you designate. If you elect a direct rollover, no federal tax withholding will apply to your rollover amount. The portion that is not rolled over will be subject to mandatory 20% tax withholding.
If you want to roll over your eligible payout yourself – an indirect rollover – there are some important facts to keep in mind:
- Mandatory 20% tax withholding will apply to the distribution when the payout is made to you.
- Your rollover must be made within 60 days of the day you receive your payout.
- Any portion of the taxable part of your payout not rolled over will be subject to income and penalty taxes (if applicable).
Your Quarterly Statement
If you defer your Savings Program account, after the end of each calendar quarter, you will receive a Savings Program statement that reports your account activity, total fund balances and investment elections. You can use these statements to track the value of your savings under the Savings Program.
You also have access to your account statement any time by visiting http://oakridge.csplans.com. You can create an online statement for any period of time within the last 15 months. After you log in, choose your account under “Select an Option” and click on “My Statement.”
Claiming Benefits
To apply for a Savings Program payout, you should call the information line at 1-888-I-SAVE-IT. Your beneficiaries should contact the Benefit Plans Office.
If you elect a lump-sum payout, you will be mailed the payout generally within two business days. If you elect to receive installment payments, you will receive a form to complete. Installment payments generally will be mailed on the second business day of each month.
If you elect to receive an in-kind distribution rather than cash from your Vanguard Windsor account, your shares will be reregistered in an account in your name individually, generally within two weeks after your request.
Other Important Information
Change of Address
It is important that you notify the Company of any change in your address while you are a participant in the Savings Program so you will be assured of receiving Company communications about the Savings Program. If you are retired, call the information line for a change form.
Voting Your Shares
The investment manager for each fund will decide how to exercise any voting rights applicable to stock held in that particular fund.
Investment Fees and Expenses
The Savings Program investment options have administrative and investment management fees associated with them which, in effect, reduce the investment fund returns. The administrative fees are associated with service performed by the trustee and recordkeeper.
Investment management fees for the mutual funds are described in the fund prospectuses. A summary of the fees is available upon request from the Plan Administrator.
Responsibility for Investment Decisions
You choose how to invest your money in the Savings Program. The Savings Program trustee will follow your investment directions without reviewing your investment decisions.
The Company, the trustee, the Joint Retirement and Savings Plan Committee and the other Savings Program Administrators are not responsible or liable for the investment choices you make or investment losses that are the direct and necessary result of your investment choices. This is because the Savings Program is intended to satisfy the requirements of Section 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) and section 2550.404c-1 of the Code of Federal Regulations. Nothing contained in this document is intended to constitute investment advice.
Confidentiality of Investment Directions
Your investment directions for all Savings Program funds are administered by CitiStreet. State Street Bank and Trust handles all purchases and sales in the name of the Savings Program without identifying individuals, so your transactions remain confidential.
The Joint Retirement and Savings Plan Committee is responsible for monitoring compliance with the procedures that ensure confidentiality. You may contact the Committee:
c/o Manager, Benefits Management
P.O. Box 2009
Oak Ridge, TN 37831-8267
Plan Funding and Expenses
The Savings Program is funded by participants who designate a part of their eligible earnings to be contributed on their behalf and by the Company through Company matching contributions. The assets of the Savings Program are held in a trust fund maintained by the trustee. All Savings Program administrative and investment management fees are paid from the investment funds.
Tax Treatment
The Company intends to operate the Savings Program so that it will qualify under Sections 401(a) and 401(k) of the Internal Revenue Code. Accordingly, your before-tax savings will not be taxed until you withdraw them. The earnings of the trust fund, which holds the Savings Program assets, will not be taxable to you, the trust fund, or to the Company at the time earnings are credited to the trust fund, but will be taxable to you when you receive a distribution.
Call the Information Line or use the Internet for …
|
Administrative Information |