Plan Information and Participant Rights
The following information provides important information about your rights as a plan participant and defines terms used in this plan.
Claims Procedure
If you believe that you are eligible to claim benefits as a Participant or Beneficiary under the Plan, your claim should be filed in writing with the Plan Administrator by you (or by your authorized representative). If your claim for benefits is denied, in whole or in part, you will receive a written notice (which may include electronic communications) from the Plan Administrator within 90 days after the date on which your claim was filed. The Plan Administrator can extend this period for an additional 90 days by notifying you of the reasons for the extension and the date when you can expect to receive a decision (but not beyond 180 days after the date on which your claim was filed). The written notice will provide you with:
- The specific reason or reasons for the denial;
- Specific reference to the Plan provisions on which the denial was based;
- A description of any additional material or information necessary to support your claim (along with an explanation of why the additional material or information is necessary); and
- An explanation of steps to take if you wish to submit your claim for review and any applicable time limits, including a statement of your right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.
A claim is considered approved only if the Plan Administrator's approval is communicated to you in writing.
You (or your authorized representative) may request a review of your denied claim by the Plan Administrator. You must make this request for review to the Plan Administrator within 60 days after receipt of notice that your claim has been denied. Also, if you do not receive a notice of denial of your initial claim, you may submit a written request for review to the Plan Administrator within 60 days of when the applicable 90-day time period referenced above ends. As part of your appeal, you will (1) have the opportunity to submit written comments, documents, records, and other information relating to your claim for benefits; and (2) be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relating to your claim for benefits. The review of your claim will take into account all comments, documents, records, and other information you submit relating to your claim, without regard to whether it was submitted or considered in the initial benefit determination. Failure to raise issues or present evidence on review will preclude those issues or evidence from being presented in any subsequent proceeding or judicial review of the claim.
The Plan Administrator shall make his decision on review not later than 60 days after receipt of your request for review, unless special circumstances require an extension of time. If special circumstances apply, the Plan Administrator may extend the applicable time for an additional 60 days. If an extension is required, you will receive a notice prior to the extension that will indicate the circumstances requiring the extension and the date by which a decision is expected on your appeal.
The Plan Administrator will provide you with a written or electronic notification of his determination on review, and, in the case of an adverse determination, shall provide:
- The specific reason or reasons for the adverse determination;
- Reference to the specific Plan provisions on which the benefit determination is based;
- A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the your claim for benefits; and
- A statement of your right to bring an action under Section 502(a) of ERISA.
In reviewing the denial of a benefit claim, the Plan Administrator shall have full authority to interpret and apply in his or her discretion the provisions of the Plan. The decision of the Plan Administrator shall be final and binding upon all individuals making a claim under this claims procedure.
Any claims you may have alleging a violation of or seeking any remedy under any provision of ERISA or any other law should also be filed with the Plan Administrator and will be considered in accordance with the foregoing procedures, including, but not limited to, the specific requirement that a denied claim be pursued through the appeals procedures before attempting to use a remedy outside the Plan's claims procedures. You may not bring an action in a court of law or any other forum until your claim for benefits has been initially denied and subsequently denied on appeal under these procedures.
You may not bring an action in a court of law or any other forum more than one year after the earlier of the date of the notification of a determination on review of a denied claim or the date the notification of the determination on review of a denied claim would have been required to have been issued if you had filed a timely appeal.
Receipt of Communications
Your communications with the Plan, the Plan Administrator, the Company, or the Trustee are treated as received on the date that the communication is actually received by the Plan, Plan Administrator, the Company, or the Trustee, as applicable, not on the day that they are mailed by you.
Statement of ERISA Rights
As a Participant in the Plan you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan Participants shall be entitled to:
Receive information about your plan and benefits
- Examine, without charge, at the Plan Administrator's office and at other specified locations, such as worksites, all documents governing the Plan, including insurance contracts, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.
- Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies.
- Receive a summary of the Plan's annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report.
Prudent actions by plan fiduciaries
In addition to creating rights for Plan Participants, ERISA imposes duties on any person who is responsible for the operation of an employee benefit plan. The person or persons who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and Beneficiaries. No one, including your Participating Employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a retirement benefit or exercising your rights under ERISA.
Enforce your rights
If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the Plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
Assistance with your questions
If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, DC 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
Account
If you participate in the Plan, the Trustee will establish an Account on your behalf for the purpose of recording contributions made on your behalf and any income, expenses, gains or losses thereon. Your Account may also be referred to as your "Account balance". The Plan is funded through contributions you and Affiliated Employers make to Plan Accounts.
Affiliated Employer
Affiliated Employers include the Company, the Participating Employers and all other entities in which Canon USA, Inc. owns a controlling interest (80% or more).
Company
The name, address and business telephone number of the Company is:
Canon Medical Systems USA, Inc.
2441 Michelle Drive
Tustin, CA 92780
714-669-2412
The Company's Employer Identification Number is 68-0178440
Compensation
For purposes of computing contributions under the Plan, Compensation generally means your wages, salaries, and other amounts received for personal services actually rendered in the course of your employment with a Participating Employer to the extent that such amounts are included in your gross income for federal tax purposes. Your Compensation also includes any Employee pre-tax contributions you make under the Plan and any salary reductions you make under the Company's Flexible Benefits Plan or another plan similar to these plans.
Compensation does not include any contributions to a deferred compensation plan that are not taxable in the year in which contributed or distributions from such a plan. Compensation also does not include fringe benefits (cash and non-cash), moving expenses, car allowances, welfare benefits (including short-term disability payments), any severance payments or other compensation paid after an Employee's termination date (with the exception of regular wages and any accrued vacation paid after termination), and other reimbursements or other expense allowances, regardless of whether these amounts are included in your taxable income. Also, for payroll periods ending after September 30, 2019, Company awards, housing pay, referral bonuses, and any tax gross-up amounts on these items are not included in Compensation. Tax laws also limit the amount of Compensation that may be taken into account each Plan Year. The maximum amount for the 2021 calendar year is $290,000 (this dollar amount is subject to adjustment each year).
Computation Period
If you are a Short-Term Employee, the Computation Period is the initial twelve (12) consecutive month period beginning on the date you first complete an Hour of Service. For any period thereafter, the Computation Period will begin on the first day of the Plan Year that includes the first anniversary of the date you first complete an Hour of Service.
In general, you will be credited with a Day of Service for each day on and after the date you are hired by an Affiliated Employer and ending on the date that you terminate employment. However, if you terminate employment for reasons other than your quitting, discharge, death, or retirement, you may be credited, as required by applicable law, with Days of Service for an additional period of time, generally up to one year. Also, if you return to employment within one year after your termination, you will be credited with Days of Service for your period of absence as if it were a period of employment.
Early Retirement Date
The first date on which you have both reached age 55 and completed 5 Years of Service, however, if you were a participant in certain predecessor plans, your Early Retirement Date may be an earlier date. 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 about the qualified default fund that would apply to you.
Employee
Any person who is employed by an Affiliated Employer.
Hour of Service
An Hour of Service means the unit of time credited to an Employee for purposes of determining whether the Employee has completed a Year of Service. For this purpose, Short-Term Employees will be credited with 45 Hours of Service for each week during which the Short-Term Employee performs work for an Affiliated Employer.
Normal Retirement Date
Your 65th birthday; however, if you were a participant in certain predecessor plans, your Normal Retirement Date may be an earlier date. 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.
Participating Employers
The Company and the following Affiliated Employer participate in the Plan:
- Canon Medical Research USA, Inc.
Participant
If you are an eligible Employee who has satisfied the Plan's eligibility requirements and has elected to participate in the Plan, who has been automatically enrolled in the Plan, or has had a discretionary employer contribution credited to your Account, you are a Participant in the Plan. You will continue to be a Participant so long as you have an Account balance under the Plan. An "active Participant" means any Participant who is an Employee of an Affiliated Employer.
Plan
The Plan is the Canon Medical Systems USA, Inc. 401(k) Savings Plan.
Plan Administrator
The Plan Administrator is responsible for the administration of the Plan. The Plan Administrator's duties are specifically identified in the Plan document. The name, address and business telephone number of the Plan Administrator are:
Canon Medical Systems Retirement Committee
Canon Medical Systems USA, Inc.
2441 Michelle Drive
Tustin, CA 92780
714-669-2412
Plan Number
The Plan number is 001.
Plan Year
The Plan Year is the calendar year.
Service of Process
The Plan's agent for service of legal process is:
Corporate Secretary
Canon Medical Systems USA, Inc.
2441 Michelle Drive
Tustin, CA 92780
Service of process may also be made upon the Plan Administrator or Trustee.
Short-Term Employee
An individual classified as a Short-Term Employee on the Participating Employer’s payroll records.
Trust and Trust Agreement
The Plan is administered under a written trust fund arrangement (the "Trust Agreement") between the Trustee and the Company.
Trustee
The Trustee is responsible for holding the Plan assets. The name and address of the Plan's Trustee is:
T. Rowe Price Trust Company
100 East Pratt Street
Baltimore, MD 21202
Year of Service
You will be credited with a Year of Service for each twelve-month period of time during which you are employed as an Employee by an Affiliated Employer after you attain age 18.
In general, you are credited with service commencing on the date you are hired and ending on the date you quit, are discharged, retire, or die. However, the following special rules may apply:
- If you leave employment with the Affiliated Employers for a reason other than your quitting, discharge, retirement, or death (such as a leave of absence during which you are not treated as an Employee), you usually will be credited with an additional Year of Service, but not for a period beyond the date you quit, are discharged, retire, or die.
- If you are reemployed within twelve months of your termination of employment (for example, if you terminate on December 5, 2021, and are reemployed on or before December 4, 2022), you will be credited with Years of Service as if you were employed by an Affiliated Employer during the entire period of your absence from employment.
- If you are a Short-Term Employee, a Year of Service, in general, means the Computation Period during which an Employee is credited with at least 1,000 Hours of Service.
- In addition, Years of Service may be credited for past service with certain predecessor Employers. For more information, 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.
Please review your most recent quarterly statement to determine your Years of Service. If you have additional questions about the calculation of your Years of Service, 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.