RIT
Human Resources

Basic Retirement Plan Summary

Important Information

The information in this document is a summary of the major provisions of this benefit plan, and constitutes the summary plan description as governed by the Employee Retirement Income Security Act of 1974 (ERISA). Benefits under the plan are determined by the terms of the underlying plan document and contracts. In the case of any inconsistency between this document and the plan document or contract, the plan document or contract will govern your rights and benefits. RIT intends to continue the benefit plans indefinitely, but reserves the right to modify or terminate all or any portion of the employee benefits package at any time with or without notice. Such changes automatically will apply to you and your employment relationship at RIT. Participation in this plan is provided to eligible employees and does not constitute a guarantee of employment, requires continued employment and eligibility and is subject to the terms and conditions of the underlying plan document and insurance contracts.

Table of Contents

Introduction

The Rochester Institute of Technology has adopted a 403(b) tax deferred annuity program to help employees save for their retirement. The program consists of both a Basic Plan and a Voluntary Plan. This summary describes the Basic Plan, which is otherwise known as the Rochester Institute of Technology Basic Retirement Plan (the "Plan"). It has been established to help employees provide for their future financial security by making pre-tax contributions from their compensation. In addition, employees who make pre-tax contributions under the Plan will be eligible for matching contributions from the Rochester Institute of Technology (the "University" or "RIT").

This summary plan description ("SPD") is only a summary of your benefits and rights under the Plan as it was amended effective January 1, 2009. It is important that you understand that it cannot cover all of the details of the Plan or how the rules of the Plan apply to every person, and every situation. You can find the specific rules of the Plan in the Plan document, which you may request from the Plan Administrator.

Every effort has been made to accurately describe the Plan. If there is a difference between the information in this SPD and the information in the Plan document, the terms of the Plan document will control.

If in reading this SPD you find you have questions concerning your benefits under the Plan, please contact the Plan Administrator.

Important Information about the Plan

Plan Sponsor: Rochester Institute of Technology
8 Lomb Memorial Drive
Rochester, NY 14623
(585) 475-2424
EIN: 16-0743140
Plan Name: Rochester Institute of Technology Basic Retirement Plan
Plan Number: 001
Participating Employers: Rochester Institute of Technology
RIT Global Delivery Corporation

Where appropriate, "RIT" or "University" shall refer to either the Rochester Institute of Technology or RIT Global Delivery Corporation.
Plan Year: January 1 - December 31
Plan Administrator: Associate Director
Human Resources, Benefits, Health and Wellness
Rochester Institute of Technology
8 Lomb Memorial Drive
Rochester, NY 14623
(585) 475-2424
Agent for Service of Legal Process: Office of Legal Affairs
Rochester Institute of Technology
154 Lomb Memorial Drive
Rochester, New York 14623-5608

Service of legal process may also be made on the Plan Administrator.
Plan Funding and Funding Agents: The Plan is funded with employer and employee contributions. Funding arrangements include annuity contracts and custodial accounts through TIAA-CREF and Fidelity. You can obtain more information about the Plan's investment alternatives by contacting the Fund Sponsors.
Fund Sponsors: Fidelity Investments
400 Puritan Way M2B
Marlborough, MA 01752
800-343-0860

TIAA-CREF
730 Third Avenue
New York, New York 10017-3206
800-842-2252
Type of Plan: 403(b) Tax Deferred Annuity Plan

Eligibility

All faculty and staff can participate in the Plan after fulfilling certain service requirements. However, the following employees are not eligible to participate in the Plan regardless of their date of hire: student employees whose employment is incidental to their educational programs at RIT, adjunct faculty, leased employees, independent contractors (including individuals who are treated as independent contractors even if they are actually determined to be employees), contract workers hired through, or who are employees of, an outside agency, or employees who are subject to a collective bargaining agreement unless the agreement specifically provides for participation in this Plan.

The service requirements to participate in the Plan are different depending on when you were hired:

  1. For Eligible Employees Hired Before January 1, 2006 - If you are an eligible employee who was hired before January 1, 2006, or rehired with an adjusted date of hire before January 1, 2006, you are eligible to participate in the Plan on the first day of the first calendar month coinciding with or immediately after the second anniversary of your date of hire with RIT. For example, if you were hired on January 1, 2003, you would become eligible to participate on January 1, 2005. In addition, if: (a) you were hired before January 1, 2006, or rehired with an adjusted date of hire before January 1, 2006; (b) you have two or more consecutive years of regular full-time service with another qualified educational institution; and (c) you commence employment at RIT within three months of termination at the other institution, then you are eligible to participate upon commencing employment with RIT.
  2. For Eligible Employees Hired On or After January 1, 2006 - If you are an eligible employee who was hired on or after January 1, 2006, or rehired with an adjusted date of hire on or after January 1, 2006, you are eligible to participate on the first day of the first calendar month coinciding with or immediately after the first anniversary of your date of hire with RIT. For example, if you were hired on January 1, 2010, you would become eligible to participate on January 1, 2011. In addition, if: (a) you were hired on or after January 1, 2006 (and your adjusted date of hire is on or after that date); (b) you have one or more consecutive years of full-time service with another qualified educational institution; and (c) you commence employment at RIT within three months of termination at the other institution, then you can participate upon commencing employment with RIT.

If you are rehired after a one-year break in service and you did not previously fulfill the requirements to be eligible for Matching Contributions, you must complete the initial eligibility requirements to receive Matching Contributions.

Your prior service (e.g., as a student employee or adjunct faculty member) may help you satisfy the eligibility service requirements. Please contact the Plan administrator if you believe you have prior service that may help you satisfy the eligibility requirements.

Participation

Participation in the Plan is wholly voluntary. If you wish to contribute (and to receive related Matching Contributions), you must complete the enrollment procedures that are required to begin making contributions. However, in some cases you will be automatically enrolled in the Plan (see below).

Your election to begin making contributions can be made at any time after you become eligible and your contributions will commence as of the first payroll period administratively practicable after your election. The enrollment procedures also provide you with an opportunity to affirmatively decline participation in the Plan.

You can choose to cease contributing at any time by following the procedures for ceasing contributions, in which case your contributions will cease as of the first payroll period administratively practicable after your election. You can also change your contribution amount at any time and the change will be effective for the first payroll period administratively practicable following the Plan's receipt of the change.

All elections to participate, to cease contributions, or change contributions must be made in accordance with the procedures established by the Plan Administrator. Generally, you can change an existing salary reduction election by completing and submitting a new salary reduction agreement and/or following such other procedures established by the Plan Administrator.

Contributions


This Plan permits salary reduction contributions. Salary reduction contributions allow you to make contributions to the Plan from your compensation on a pre-tax basis. Since you will make contributions by reducing your income, you will also be reducing your current tax liability because your contributions are not taxed at the time they are made, but rather are taxed at the time they are taken out (e.g., upon retirement or termination of employment). Social Security and Medicare taxes, however, apply to these contributions when they are made.

Your salary reduction contributions are limited to 2% of compensation if you were hired before January 1, 2006 (or your adjusted date of hire was before that date), or 5% of compensation if you were hired on or after January 1, 2006 (or your adjusted date of hire is on or after that date). However, you can elect to have salary reduction contributions in excess of these limits made to the Rochester Institute of Technology Voluntary Retirement Plan.

For contribution purposes, your "compensation" depends on what type of employee you are:

Regardless of what type of employee you are, compensation also includes any one-time annual merit bonus payment under the RIT compensation plan, salary reduction contributions to this Plan, to the Rochester Institute of Technology Voluntary Retirement Plan, to a qualified transportation plan or to a cafeteria plan. However, compensation never includes shift premiums, overtime, severance pay, adjunct pay for non-faculty members, teaching overload pay for faculty members, any other extra remuneration of whatever nature (except the previously mentioned one-time annual bonus payment), or any amounts in excess of the compensation limit of Internal Revenue Code Section 401(a)(17) (for 2010 this amount is $245,000, and it is adjusted for cost of living changes after 2010). Compensation you earn before you become a participant in the Plan will be ignored in calculating the Matching Contribution.


To receive the University's Matching Contributions, you must contribute at least 2% of compensation through salary reductions. The amount of the Matching Contributions is based on your date of hire as follows:

  1. For Employees Hired Before January 1, 2006 (or whose adjusted date of hire was before that date) - If you contribute 2% of your compensation to the Plan, you will receive an additional University Contribution to the Plan equal to 10% of compensation.
  2. For Employees Hired On or After January 1, 2006 (and whose adjusted date of hire is on or after that date) - Your Matching Contributions to the Plan vary depending on what percentage of compensation you contribute to the Plan:
    Salary Reduction Contribution Matching Contribution Total Contribution
    2% of compensation 4% of compensation 6% of compensation
    3% of compensation 6% of compensation 9% of compensation
    4% of compensation 8% of compensation 12% of compensation
    5% of compensation 9% of compensation 14% of compensation

The University makes its Matching Contribution on a payroll-by-payroll basis based on your contributions and compensation for that payroll period.

NOTE: The Internal Revenue Code and its regulations impose various rules and limitations on contributions that can be made to the Plan. Accordingly, the University's obligation to contribute to the Plan is subject to those rules and limitations.

Employee contributions are normally made pre-tax, but if you cannot make additional pre-tax contributions because you have reached the IRS limit for making pre-tax contributions, your contribution will be made on an after-tax basis.


If you are immediately eligible to participate in the Plan on your date of hire or re-hire, but you do not make a salary reduction election of any kind (neither an election to contribute to the Plan nor an affirmative election to forego making contributions), RIT will automatically withhold 2% of your compensation and contribute that amount on a pre-tax basis to an account for you under the Plan.

Automatic enrollment will begin as of the first day of the month following the first month anniversary of the date you become eligible to participate if you become eligible between the 1st and the 15th of the month. For example, if you become eligible to participate on January 5, automatic contributions commence for payroll periods beginning on or after March 1. However, if you become eligible to participate between the 16th and the 31st of the month, automatic enrollment will begin as of the first day of the month following the second month anniversary of the date of hire. For example, if you become eligible to participate on January 18, automatic contributions commence for payroll periods beginning on or after April 1.


If you become eligible to participate in this Plan after you were automatically enrolled in RIT's Voluntary Retirement Plan and make no election of any kind under this Plan, the automatic contributions to the Voluntary Retirement Plan will cease to the extent that they can be made under this Plan and such contributions will instead be made to this Plan.


If you were hired before January 1, 2008, were eligible to participate in the Plan as of January 1, 2009, and were not making contributions as of January 1, 2009, you will automatically have your compensation reduced on a pre-tax basis by 2%.


If you have been automatically enrolled in the Plan, your contribution percentage will increase by 1% annually on the first payroll period starting on or after October 1st starting in the first calendar year after automatic enrollment begins. If these automatic contribution increases result in your exceeding the limit on elective contribution to this Plan, subsequent contribution increases will be made to the Voluntary Retirement Plan.

For example, assume RIT started withholding 2% of your compensation due to automatic enrollment beginning on March 1, 2008. If you did not elect to contribute a different amount or elect to cease contributions, the 2% contribution would increase to 3% on the first payroll period starting on or after October 1, 2009, to 4% on the first payroll period starting on or after October 1, 2010, to 5% on the first payroll period starting on or after October 1, 2011, to 6% on the first payroll period starting on or after October 1, 2012, etc. The amount of the automatic enrollment contribution over 5% would be contributed to the Rochester Institute of Technology Voluntary Retirement Plan because salary reduction contributions for employees hired after January 1, 2006 cannot exceed 5% for the Basic Retirement Plan.


You will receive a notice setting forth the Plan's automatic enrollment provisions on or about your date of hire (or before automatic enrollment begins if you are a current employee) and each year thereafter that you are subject to automatic enrollment. You can change the automatic contribution percentage or cease making contributions at any time by completing the necessary forms.

Leave of Absence


During a paid leave of absence, you may continue to make contributions to this Plan. If you make contributions during a leave of absence, RIT will continue to make Matching Contributions under the same terms and conditions for active employees who are not on a paid leave of absence, provided that for this purpose the compensation base on which contributions are made shall be the participant's basic compensation paid during the leave of absence. If your leave of absence is due to disability, your salary reduction contributions and RIT's contributions shall continue until the date you start receiving long-term disability benefits. At that time, both salary reduction and Matching Contributions may be made by the disability carrier under the terms of the long-term disability policy.


If you go on qualified military service leave and you pay the Plan for the salary reduction contributions you otherwise could have made when you return to work, RIT may be required to contribute to your account Matching Contributions that would have been made on your behalf had you not been absent due to the leave. Except for special circumstances, your military leave may not exceed five years and you must report to RIT when your military service ends.

In addition, if you die or become disabled while performing qualified military service, your survivors will be entitled to any additional benefits provided under the Plan (other than benefit accruals for the period of qualified military service) that you would have received had your employment resumed and you then terminated employment due to death.

There may be other special rights that apply if you are on military leave so please contact your benefits representative if you have any questions about your military leave rights.

Contribution Limits


In order to comply with restrictions imposed by federal tax laws, the Plan is required to limit the maximum contributions you and RIT can make during any plan year. These limits restrict each participant's "annual additions" to this Plan and to the Voluntary Retirement Plan to the lesser of 100 percent of compensation or $49,000 (this is the limit for 2010; after 2010 this amount will be periodically adjusted by the IRS to reflect cost of living changes). The term "annual additions" includes all contributions by you and RIT to the Plans that may be allocated to your accounts other than certain "catch-up" contributions that may be made to the Voluntary Retirement Plan.


Excluding certain "catch-up" contributions that may be made to the Voluntary Retirement Plan, your own pre-tax contributions to this Plan, the Voluntary Retirement Plan, and all other 403(b) plans, 401(k) plans, simplified employee pension or simple retirement plans, are limited to $16,500 (this is the limit for 2010; after 2010 this amount will be periodically adjusted by the IRS to reflect cost of living changes).


The amount of matching contributions and after-tax contributions made on behalf of highly compensated employees may be limited if the Plan does not pass certain IRS tests.


If during the year you participate in another 403(b) plan or control a business and participate in a defined contribution retirement plan through that business, the amounts contributed on your behalf under the Plan may have to be aggregated with contributions under the other plan(s) when applying the above IRS limits. Generally, you will be deemed to be in control of another business if you own, directly or indirectly, more than 50% of the other business. Please contact the Plan Administrator if these aggregation rules could apply to you so that appropriate actions can be taken to ensure that you do not run afoul of the IRS limits. There can be significant adverse tax consequences if you do not comply with these rules.


If any of the contribution limits are exceeded, the Plan Administrator has the authority to take such corrective action he/she determines appropriate to comply with IRS rules.

Vesting

Vesting refers to the portion of the total assets in your account that you will actually receive upon retirement or termination of employment. Under this Plan, you will always be 100 percent vested in all the amounts in your account. This means that no action by RIT or by you, such as termination of employment before a stated number of years, will cause any portion of your account to be forfeited. Of course, the value of your account will fluctuate depending upon any changes in the value of the funds in which your account may be invested.

Generally, your vested account may not be sold, used as collateral for a loan outside the Plan, given away, or otherwise transferred. In addition, with certain limited exceptions (e.g., an IRS levy), your creditors may not interfere with your account in any way. An exception, however, to this general rule is called a qualified domestic relations order, or QDRO. A QDRO is a decree or order issued by a court that makes you pay child support or alimony, or otherwise allocates a portion of your account, to your spouse, former spouse, child or other dependent. If a QDRO is received by the Plan Administrator, all or a portion of your benefits may be used to satisfy that order. The Plan Administrator will determine if the decree or order issued by the court meets the requirements of a QDRO with respect to your account balances held with Fidelity. TIAA-CREF will determine if the decree or order issued by the court meets the requirements of a QDRO with respect to your account balances held with TIAA-CREF. Participants and beneficiaries can obtain a description of the procedures for QDRO determinations at no charge from the Plan Administrator.

Investments

Investments may be made in funds offered by either TIAA-CREF or Fidelity Investments, Inc. TIAA-CREF offers investments through individual annuity contracts and mutual funds. Fidelity Investments is a mutual fund company whose available investments are mutual funds offered pursuant to custodial account agreements. Each of the Fund Sponsors offers a wide range of investment choices. You can obtain a description of the investments offered by contacting the Plan Administrator.

You will need to complete an application form with TIAA-CREF and/or Fidelity to direct your investments within their organizations. You will then be issued an individual annuity contract or a custodial account agreement whose terms and conditions will govern the investments with the chosen Fund Sponsor and your rights to transfer investments, to receive distributions and so forth.

You may also change the investment vehicle for accumulated contributions in accordance with the terms and conditions applicable to the relevant investment vehicles. You must arrange for any such change directly with the relevant Fund Sponsors. Individual annuity contracts or custodial account agreements may impose restrictions on the transfer of accumulated funds, including prohibitions against any transfer, and any transfers under this Plan shall be subject to these restrictions. If any of the investment vehicles impose a fee on the transfer of funds, any such fee will be deducted from your account.

You are responsible for your investment choices. Therefore, it is important that you carefully select and monitor your investments. You may allocate contributions any way you choose among the investment options available through Fidelity and TIAA-CREF. If you fail to designate how you want your contributions invested, 50% of your contributions will be invested in the TIAA-CREF Lifecycle Fund that is appropriate for your age and assuming you would retire at age 65, and 50% of your contributions will be invested in the Fidelity Freedom Fund that is appropriate for your age and assuming you would retire at age 65.

You have the flexibility to transfer investment amounts among your investment options whenever you wish, except those imposed by specific investment options. The type of transfer you may make is based on the type of fund in which you are investing.

For additional information on TIAA-CREF, please visit www.tiaa-cref.org

For additional information on Fidelity, please visit www.fidelity.com


To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform very well often cause another asset category, or another particular security, to perform poorly. If you invest more than 20% of your retirement savings in any one industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.

In deciding how to invest your retirement savings, you should take into account all of your assets, including any retirement savings outside of the Plan. No single approach is right for everyone because, among other factors, individuals have different financial goals, different time horizons for meeting their goals, and different tolerances for risk. Therefore, you should understand your diversification rights and exercise these rights to affect how your money is invested under the Plan.

It is also important to periodically review your investment portfolio, your investment objectives, and the investment options under the Plan to help ensure that your retirement savings will meet your retirement goals. For more information about individual investing and portfolio diversification, visit the U.S. Department of Labor's website at www.dol.gov/ebsa/investing.html.


You will receive statements quarterly from TIAA-CREF and Fidelity which show the status of your accounts. These statements include the total current value of your account for the report period and current value of your account for each of your investments (including gains and losses). Your account balances under the Plan may be reduced by Plan expenses. If you notice any problems in your investment statements, you should notify the Plan Administrator immediately.

Distribution of Benefits


Generally, you can receive your benefits when you terminate employment or become disabled. Payment of your benefits is also subject to the terms and conditions of the Fund Sponsor(s) in which you have invested.

For Plan purposes, you are considered disabled if you are unable to engage in any substantial gainful activity due to any medically determinable physical or mental impairment that can be expected to result in death or to be of long-continued and indefinite duration. Generally, the Plan will base the determination of whether you are disabled on the decision of the Social Security Administration or the claims administrator of the RIT long-term disability plan.

While the terms of the custodial account agreement or annuity contract that apply to your investments will ultimately govern the form and timing of benefits, you generally may receive benefits in the form of a lump sum, installment payments over a fixed period of time or an annuity (although, not all custodial account agreements or annuity contracts will offer all of these choices).


This Plan is subject to the joint and survivor annuity rules required by federal law. Under these rules, if you are married, your normal form of benefit must be a joint and survivor annuity with your spouse as the surviving annuitant. This form of payment uses your account balance to purchase a monthly benefit for your spouse after your death equal to 50 percent of the amount you were receiving. Your benefit will be paid in this form unless you elect another form of benefit and your spouse consents in writing to your election. Your spouse's consent must acknowledge the effect of the election and be witnessed by a plan representative or notary public. The Plan Administrator can provide you with more information regarding your ability to elect or waive the joint and survivor annuity form of benefit.


If you terminate employment or become disabled you can generally receive the total vested value of your account at any time. However, federal law requires your benefits to commence no later than April 1st of the calendar year after the year when you reach age 70˝ unless you are still working for RIT. If you are still working for RIT when you reach age 70˝, you can delay payment of your benefits until April 1 of the calendar year after the year that you retire.


You can designate a beneficiary who is eligible to receive payment of your vested benefit after your death. You can make this election by contacting your investment company directly. You will need to elect a separate beneficiary designation for each investment company (TIAA-CREF and Fidelity) under the plan. It is important that you keep your beneficiary designation up to date. If you fail to designate a beneficiary, the default election will be 100% to your surviving spouse, if married, otherwise 100% to your estate.

As noted above, if you are married at the time of your death, your spouse will have the right to receive a benefit that is at least equal to 50% of the full value of your entire vested benefit unless you have designated another beneficiary and your spouse has consented to that designation. The consent of your spouse must be in writing, be witnessed by a notary public, and acknowledge the effect of your designation of another beneficiary.


If you die before receiving any benefits under the Plan, distribution of at least 50% of the value of your account will be made to your spouse as an annuity for the life of your spouse, unless you and your spouse elect another payment option available from the Fund Sponsor(s) in which your account is invested. The remaining portion of your account will be paid to your designated beneficiary.

If you are not married and die before receiving any benefits under the Plan, your full account balance will be paid in accordance with your current beneficiary designation. However, your benefits will be paid to your estate if you are not married and (a) you fail to designate a beneficiary, (b) your beneficiary designation is not valid, or (c) your beneficiary dies before you.

Generally, your entire account must be distributed within five years of death if you die before benefits have begun. However, this five-year rule does not apply if payment to your beneficiary begins within one year of your death and is made over your beneficiary's life or over a period that does not exceed your beneficiary's life expectancy. If your beneficiary is your spouse, a special rule permits the distribution to be delayed until the date that you would have become age 70˝. If this special rule applies, your benefits can be paid over the life of your spouse or over a period not exceeding the life expectancy of your spouse.


If you die after you begin receiving benefits due to retirement and your benefit is paid in the form of a joint and 50% survivor annuity with your spouse designated as the survivor annuitant, your surviving spouse will receive a retirement benefit of at least 50% of the retirement benefit payable during the joint lives of you and your spouse. You can waive this post-retirement survivor benefit (i.e., joint and survivor annuity) only during the 180 days before retirement benefit payments commence. You can also revoke the waiver during the same 180-day period before retirement benefit payments commence. However, the waiver cannot be revoked after retirement payments begin.


You cannot receive your benefits while you are employed by RIT. However, your benefits may be distributed immediately to an alternate payee under the terms of a QDRO.


No hardship withdrawals or loans are permitted under this Plan. However, hardship withdrawal and loan features may be available under RIT's Voluntary Retirement Plan, as described in that plan's separate summary.


The following is a summary of the forms of payment available to you under the Plan.

TIAA-CREF RA and SRA FIDELITY
Single Lump-Sum Payment
(Not Available from TIAA Traditional RA, except as noted below*)		 Single Lump-Sum Payment
Periodic Installment Payments
(Not Available from TIAA Traditional RA, except as a Transfer Payout Annuity [described next])		 Periodic Installment Payments
Transfer Payout Annuity (Receive income in 10 substantially equal annual installments) (Available Only from TIAA Traditional RA)
Interest Payment Retirement Option (IPRO) Available Only from TIAA Traditional RA)
Single Life Annuity†
Single Life Annuity with 10, 15, or 20 Year Guaranteed Period†
Two-Life or Survivor Annuity with 10, 15, or 20 Year Guaranteed Period†:
o 2/3 Benefit to Survivor
o Full Benefit to Survivor
o Half Benefit to Survivor

†  Note: Single Life Annuity options guarantee to pay a lifetime income that you cannot outlive regardless of how long you live. Two-Life or Survivor Annuity options pay you and your annuity partner (usually your spouse) a lifetime income. The annuity options with a guaranteed period pay you (and your annuity partner if you elected a Two-Life or Survivor Annuity Option) a lifetime income, but provide payments to a beneficiary if you (and your annuity partner, if applicable) die within the period you selected.

Rollovers

Payments that you receive from the Plan generally are subject to federal income tax at the time of payment. However, there is an exception for an "eligible rollover distribution" that is directly rolled over into an IRA or another eligible retirement plan. A rollover can be accomplished in either of two ways: (1) you can take a distribution and deposit it in an IRA or another eligible retirement plan within 60 days after the distribution; or (2) you can request a direct rollover to an IRA or another eligible retirement plan. If you request a direct rollover and you are married, you and your spouse must consent in writing to waive any available annuity payments.

The Plan must withhold 20% of any eligible rollover distribution for federal income taxes if it is not rolled over in a direct rollover. That means that if you take your distribution in cash and then wish to roll it over, you will need to use your own funds to cover the amount that has been withheld (which will be reported to the IRS and credited against your tax liability). Most payments that you receive from the Plan will be an eligible rollover distribution, except for the portion of any payment that is required by law because you have attained age 70-1/2, part of substantially equal periodic payments paid over 10 or more years, or a returns of excess contributions. The Plan Administrator will provide you with more information regarding rollovers when you terminate employment.

An additional tax equal to 10% of the taxable amount must also be paid if the payment is made before you attain age 59-1/2, you die, or you become totally disabled, and the funds are not rolled over into an IRA or other eligible retirement plan. A few limited exceptions apply to this rule.

The federal income tax aspects of payments from the Plan are complex and subject to change. Furthermore, applicable tax treatment under state and local law may differ. You or your beneficiary should consult your tax advisor regarding the financial impact of any payments that you receive from the Plan.

Claim Procedures


Requests for information or claims concerning eligibility, participation, contributions, or other aspects of the operation of the Plan should be in writing and directed to the Plan Administrator. The Plan Administrator will generally notify you of its decision within 90 days after it receives your claim.

However, if the Plan Administrator determines that special circumstances require an extension of time to decide your claim, the Plan Administrator may obtain an additional 90 days to decide the claim. Before obtaining this extension, the Plan Administrator will notify you, in writing and before the end of the initial 90-day period, of the special circumstances requiring the extension and the date by which the Plan Administrator expects to render a decision.

If your claim is denied in whole or in part, the Plan Administrator will provide you with a written or electronic notice that explains the reason or reasons for the decision, including specific references to Plan provisions upon which the decision is based, a description of any additional material or information that might be helpful to decide the claim (including an explanation of why that information may be necessary), a description of the appeals procedures and applicable filing deadlines and your right to bring an action under Section 502(a) of ERISA.

If you disagree with the decision reached by the Plan Administrator, you may submit a written appeal to the Plan Administrator requesting a review of the decision. Your written appeal must be submitted within 60 days of receiving the Plan Administrator's decision and should clearly state why you disagree with the Plan Administrator's decision. You may submit written comments, documents, records and other information relating to the claim even if such information was not submitted in connection with the initial claim for benefits. Additionally, upon request and free of charge, you may have reasonable access to and copies of all documents, records and other information relevant to the claim.

The Plan Administrator will generally decide your appeal within 60 days after it is received. However, if the Plan Administrator determines that special circumstances require an extension of time to decide the claim, it may obtain an additional 60 days to decide the claim. Before obtaining this extension, the Plan Administrator will notify you, in writing and before the end of the initial 60-day period, of the special circumstances requiring the extension and the date by which it expects to render a decision.

The Plan Administrator will provide you with written or electronic notice of its decision. In the case of an adverse decision, the notice will explain the reason or reasons for the decision, include specific references to Plan provisions upon which the decision is based, and indicate that you are entitled to, upon request and free of charge, reasonable access to and copies of documents, records, and other information relevant to the claim. Additionally, the notice will include a statement regarding your right to bring an action under Section 502(a) of ERISA. Generally, you must exhaust your internal administrative appeal rights before you can bring a legal action against the Plan. The Plan Administrator has full discretionary power to construe and interpret the Plan and its decisions are final and binding on all parties.


Claims and review of claims for benefits under a particular annuity contract or custodial account agreement (including claims relating to the terms, conditions, and interpretations thereof) should be sent to the applicable Fund Sponsor, which will determine the claim under procedures similar to those set forth above except that the Fund Sponsor is responsible for deciding the claim. The Fund Sponsor will have full discretionary authority to construe and interpret the terms of its investment and funding contracts and its decisions are final and binding on all parties.

Legal Rights

As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). ERISA provides that all Plan participants shall be entitled to:



In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people 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 RIT or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.


If your claim for a 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.

The court will decide who should pay the court costs and legal fees. If you are successful, the court may order the person you sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees (for example, if the court finds your claim is frivolous).


If you have any questions about your Plan, you should contact your 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, D.C. 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.

The Pension Benefit Guaranty Corporation does not insure this type of plan.

Additional Information


The Plan is administered by the Plan Administrator. The Plan Administrator has full discretionary power to construe and interpret the Plan and has full responsibility for administering the Plan. This includes the power to determine questions relating to the Plan (including an employee's eligibility to participate in the Plan); to administer and pay benefits; to establish rules for administering the Plan; to delegate administrative responsibilities; and to disburse money from the Plan for administrative, legal, advisory and other costs incurred in administering the Plan. All decisions of the Plan Administrator are final and binding on all parties.

Each Fund Sponsor performs some, but not all, of the recordkeeping services for your Plan. Each Fund Sponsor performs these functions at the direction of the Plan Administrator in accordance with the provisions of the Plan. The Fund Sponsors receive Plan contributions, credit your accounts for those contributions, and pay benefits to you and/or your beneficiaries.


The Plan is purely voluntary on the part of RIT, which reserves the right to amend the plan and/or terminate the Plan and discontinue contributions completely at any time. In the event the Plan is terminated for any reason, the rights of all Participants to their accounts shall be nonforfeitable.


No provision of the Plan is to be considered a contract of employment between you and RIT. The Employer's rights with regard to disciplinary action and termination of any employee, if necessary, are in no manner changed by any provision of the Plan.