Miscellaneous Information
In order to take advantage of many of the Plan's features, including enrollment, distribution, and selection of investment funds, you will need to contact the Plan's voice response system. The voice response system can be reached at 800-922-9945. This system is generally available 24 hours a day, 7 days a week. Customer service representatives are generally available Monday through Friday, from 7:00 A.M. to 10:00 P.M., Eastern Time.
Electronic access can be obtained by contacting the Plan's voice response system and by requesting online access instructions or by using the Plan's interactive web site at rps.troweprice.com. The Plan's web site is generally available 24 hours a day, 7 days a week.
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 refund or forfeit certain contributions to the Plan. In the unlikely event that these special tests affect your Plan benefit, you will be notified by the Plan Administrator.
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 tax-qualified plans sponsored by Affiliated Employers, to make sure that no more than 60% of the benefits under all of these plans are for "key" Employees. In the unlikely event that these requirements affect your Plan benefit, you will be notified by the Plan Administrator.
Benefits Not Insured by the PBGC
Benefits provided by the Plan are not insured or guaranteed by the Pension Benefit Guaranty Corporation (the "PBGC") under Title IV of ERISA because the insurance provisions under ERISA are not applicable to defined contribution, profit sharing plans.
Plan Amendment
The Company, in its sole discretion, may amend the Plan at any time (including amending the rate of employer matching contributions and employer discretionary contributions or eliminating employer matching contributions or employer discretionary contributions entirely). Any amendment changing the vesting schedule cannot reduce the existing vested percentage of your Account balance derived from employer matching contributions or employer discretionary contributions. Also, if you have three or more Years of Service with Affiliated Employers and the vesting schedule is amended then you will be given a choice to have the vested percentage of future employer matching contributions and employer discretionary contributions made to your Account computed under the new or the old vesting schedule. If the Plan's vesting schedule is amended, the Plan Administrator will provide you with the appropriate information to make an informed decision.
Plan Termination
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.
If the Plan is terminated, you will be 100% vested in your Account. Any unallocated amounts (i.e., amounts forfeited by former Participants) will be allocated among the remaining Plan Participants. The Plan Administrator will then facilitate the distribution of your Account balance (minus any administrative or Trustee fees charged against the Plan) as soon as administratively practicable following the termination of the Plan.
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.
Interpretation of the Plan
The Plan Administrator has the power, discretion, and 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 and any documents related to the Plan. 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 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
If the Plan Administrator is served with a court order declaring that a person entitled to benefits under the Plan to be unable for any reason to attend to his/her affairs, the Plan Administrator will comply with such order. The Plan Administrator will not be required to investigate the basis for such order, including whether or not such person is actually unable to attend her affairs.
If a minor is entitled to a payment from the Plan, the payment will not be made until the Plan Administrator receives a court order directing payment to the minor and/or the minor’s guardian, except as otherwise required by IRS guidance. The Plan Administrator will comply with such court order and will not be required to investigate the basis for such order. The Plan Administrator will not be responsible for any consequences resulting from the failure to provide the Plan Administrator with such order within any time period.
No Guaranty of Employment
Participation in the Plan does not guarantee your right to employment with the Affiliated Employer. Further, nothing set forth in this SPD should be interpreted to give you or your beneficiary any legal or equitable rights against the Company.
If you are on a military leave of absence, contributions to the Plan stop for as long as the leave continues. However, federal law provides rights to certain reemployed veterans for service credit and makeup contributions (both yours and those made by the Company) for all or a portion of the period of military service. In addition, if you are a Participant and die while performing "qualified military service," you will be entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) to the extent required by law as if you had resumed employment and then terminated employment on account of death. Please call 714-669-2412 if you are a Canon Medical Systems employee or 847-573-6007 if you are a Canon Medical Research employee 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. Please call 714-669-2412 if you are a Canon Medical Systems employee or 847-573-6007 if you are a Canon Medical Research employee for more information.
Expenses of Plan administration and operation are paid by the Company and from the Plan's assets. Certain fees are imposed on the Plan's investment funds and the Plan. All of these fees affect the amount of retirement savings you will accumulate as you participate in the Plan. In making your investment decisions, you should consider the fees and expenses paid by the Plan's investment options. These fees and expenses are described below.
- Fund-Level Fees: The Plan's investment funds pay fees and incur expenses that may have an impact on your Account. These investment fees, management fees, and other expenses (including the redemption fees described in Investments) may reduce the returns generated by the investment funds in which you invest. Some of the investment funds pay asset-based fees (fees based on the total assets invested in the fund) for investment and administrative services provided to the investment fund. These fees are also used to pay for administrative services provided to the Plan. For more information about the fees paid by various investment funds, please contact the Plan's voice response system at 1-800-922-9945 or log on to the Plan's interactive web site at rps.troweprice.com.
- Participant-Level Fees: The Plan may impose fees on your Account for services provided to you on an individual basis. This includes the additional fee charged to your Account if you elect to have Morningstar Associates, LLC manage all or a portion of your Account as a designated investment manager for the Plan and in accordance with an individualized investment profile developed with you. The annual fee for such service is currently 0.35% for Morningstar Managed Accounts withdrawn on a monthly basis from the Account of electing participants.
- Plan-Level Fees: The Plan may pay fees in connection with administrative and investment services to the extent these costs are not paid directly by the Company (at its sole discretion). The Plan permits the Company to be reimbursed, consistent with legal requirements, for certain administrative expenses it incurs in operating the Plan. These fees are paid by the Plan and can reduce all Participants' Accounts.
The Plan Administrator reserves the right to add or modify the fees imposed on investment funds, individual Participants, or the Plan as a whole at any time. The Plan Administrator further reserves the right to use any revenue sharing payments for Plan expenses or for any other purpose as determined by the Plan Administrator.