Miscellaneous Information
Nondiscrimination Rules: The Plan is subject to special nondiscrimination rules in the Internal Revenue Code that are intended to ensure that the Plan does not discriminate in favor of Participating Employers' "highly compensated employees." Under these rules, the Company may have to modify the terms of the Plan. In the unlikely event that these special tests affect your Plan benefit, you will be notified by the Plan Administrator.
Top Heavy Rules: The Plan is also subject to special Internal Revenue Service "top-heavy" rules. Each year, the Plan Administrator tests the Plan, together with all other Company-sponsored tax-qualified plans, to make sure that no more than 60% of the benefits under all of these plans are for "key" Employees. If the Plan is top-heavy, then the Company may be required to make minimum annual contributions to the Plan for you in certain situations.
Maximum Annual Benefit: There are certain limitations established by the Internal Revenue Service on the maximum annual benefits payable from the Plan. If your Plan benefit is affected by these limitations, you will be notified when you apply for benefits.
Funding Related Restrictions: If the Plan becomes less than 80% funded, as determined under applicable Internal Revenue Code rules, the Plan's ability to pay lump sum benefits may be restricted. In addition, if the Plan becomes less than 60% funded, additional payment restrictions may apply and, subject to applicable IRS requirements, all Plan Participants will automatically cease to earn any additional Plan benefits.
Your pension benefits under the Plan are insured by the Pension Benefit Guaranty Corporation (the "PBGC"), a federal insurance agency. If the Plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received under their plan, but some people may lose certain benefits.
The PBGC guarantee generally covers: (1) normal and early retirement benefits; (2) disability benefits if you become disabled before the plan terminates; and (3) certain benefits for your survivors.
The PBGC guarantee generally does not cover: (1) benefits greater than the maximum guaranteed amount set by law for the year in which the Plan terminates; (2) some or all of benefit increases and new benefits based on Plan provisions that have been in place for fewer than 5 years at the time the Plan terminates; (3) benefits that are not vested because you have not worked long enough for the Company and its affiliates; (4) benefits for which you have not met all of the requirements at the time the Plan terminates; (5) certain early retirement payments (such as supplemental benefits that stop when you become eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the Plan's normal retirement age; and (6) non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.
Even if certain of your benefits are not guaranteed, you still may receive some of those benefits from the PBGC depending on how much money the Plan has and on how much the PBGC collects from the Participating Employers.
For more information about the PBGC and the benefits it guarantees, ask the Plan Administrator or contact the PBGC's Technical Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C. 20005-4026 or call 202-326-4000 (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at 800-877-8339 and ask to be connected to 202-326-4000. Additional information about the PBGC's pension insurance program is available through the PBGC's website on the Internet.
Your Account may not be transferred, assigned or used as collateral for a loan outside of this Plan except to the extent required by law. Creditors may not attach, garnish or otherwise interfere with your Account balance except in the case of a "qualified domestic relations order" (a "QDRO").
A QDRO is a special order issued by the court in a divorce, child support or similar proceeding. In this situation, your spouse (or former spouse), or someone other than you or your beneficiary, may be entitled to receive a portion or all of your Account balance. The Plan has established special procedures for implementing QDROs. You may obtain a copy of these procedures at no charge by contacting the Plan Administrator.
The Company, in its sole discretion may amend the Plan at any time. Except as permitted by applicable law, in no event will any amendment:
- Authorize or permit any part of the Plan's assets to be used for purposes other than the exclusive benefit of Participants or their beneficiaries;
- Cause any reduction in your accrued benefit; or
- Cause any part of the Plan's assets to revert to a Participating Employer.
The Company has no legal or contractual obligation to continue the Plan. It reserves the right to change or terminate the Plan at any time as circumstances may dictate.
Upon termination or partial termination of the Plan, your Plan benefit will become fully vested to the extent funded. The assets of the Plan will generally be used to pay benefits in the following priority: (1) accrued benefits of Participants who have begun receiving benefits from the Plan three or more years before the termination of the Plan, (2) accrued benefits of Participants who would have begun receiving benefits from the Plan three or more years before the termination of the Plan had they retired at that time, (3) accrued benefits of Participants insured by the PBGC, (4) all other nonforfeitable benefits under the Plan, (5) all other benefits under the Plan, and (6) to the Company (to the extent permitted by law). Special rules limiting the size of a Participant's benefit on Plan termination may also apply to a select group of highly paid employees. If you are a member of this group, you will be contacted by the Plan Administrator. These rules are subject to change depending on PBGC guidance.
The Plan Administrator has the power and discretionary authority to construe the terms of the Plan and to determine all questions that arise under it. Such power and authority include, for example, the administrative discretion necessary to resolve issues with respect to an Employee's eligibility for benefits, Years of Service, and retirement, or to interpret any other term contained in the Plan Document. The Plan Administrator's interpretations and determinations are binding on all Participants, Employees, former Employees, and their beneficiaries and are intended to be permitted the maximum deference afforded by law. Furthermore, benefits will be paid only if the Plan Administrator decides in his or her discretion that the claimant is entitled to them.
Overpayment: In the event of a mistaken payment or an overpayment of a benefit from the Plan, the Plan Administrator may attempt to recoup such overpayment and may also reduce a Participant's future Plan benefit payments to recover an overpayment (plus interest at a rate determined by the Plan Administrator).
Payments to Incompetents and Minors: The Plan Administrator may require proof of legal guardianship prior to making payments to a Participant's, spouse's or minor beneficiary's legal guardian.
No Guaranty of Employment: Participation in the Plan does not guarantee your right to employment with the Company or an affiliate of the Company. Further, nothing set forth in this SPD should be interpreted to give you or your beneficiary any legal or equitable rights against the Company.
Federal law provides rights to certain reemployed veterans that affect their rights under the Plan. If you die during military service, your Beneficiary may be entitled to certain additional benefits as if you had returned to employment prior to your death. Contact the Toshiba America, Inc. Retirement Plans Office at 912-444-0071 for more information.
If you became a Participant in the Plan due to the Company's purchase of the stock or assets of your predecessor employer, you may be entitled to receive service credit and other benefits not described in this SPD. Contact the Toshiba America, Inc. Retirement Plans Office at 912-444-0071 for more information.
Social Security retirement benefits may represent a substantial source of income during your retirement years. Your Social Security benefit is based on your earnings throughout your entire working career. If you are married, you receive the greater of the benefit based on your own earnings under Social Security or on a percentage of your spouse's benefit. Your exact benefit, based on your personal situation, can be determined by the Social Security Administration. Contact Social Security at 800-772-1213, or at the Social Security website at any time to request information.
The Company pays the entire cost of contributions to the Plan. The Company's contributions to the Plan are actuarially determined. Expenses of Plan administration and operation are paid by the Company and from the Plan's assets. Employee contributions to the Plan are neither required nor permitted.
To the extent permitted by law, the Plan Administrator may provide you with statements, forms, notices, or other materials, in electronic format rather than paper format. The Plan Administrator may also allow or require you to make a direction, election, or take another action in electronic format, to the extent permitted by law. Electronic formats may include formats such as email, intranet, internet, or telephone transactions.