RIT
Human Resources

Voluntary Retirement Plan

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

Plan Number: 002
Plan Year: 01/01 - 12/31
Plan Established: 07/01/1938

Introduction

The Rochester Institute of Technology (the "University" or "RIT") 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 Voluntary Plan, which is otherwise known as the Rochester Institute of Technology Voluntary 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.

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 Voluntary Retirement Plan
Plan Number: 002
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 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 employees can participate in the Plan beginning on the first day of the month following their date of hire. 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, leased employees, independent contractors, or contract workers hired through, or who are employees of, an outside agency.

Participation

Participation in the Plan is wholly voluntary. If you wish to contribute, 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. Social Security and Medicare taxes, however, apply to these contributions when they are made. You can also elect to make after-tax contributions to the Plan if permitted by the applicable Fund Sponsor.

Your salary reduction contributions are limited to 80% of compensation, provided that the amount you elect to contribute cannot exceed your remaining compensation after taking into account other deductions (for example, income tax withholding or health insurance premiums).

For contribution purposes, your "compensation" means your W-2 earnings, plus salary reduction contributions to this Plan, to the Rochester Institute of Technology Basic Retirement Plan, to a qualified transportation plan or to a cafeteria plan. However, compensation does not include severance pay, other post-termination of employment pay (although payouts of unused bona fide sick or vacation pay are included), 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).

Employee contributions are normally made pre-tax, but, if permitted by the Fund Sponsor, employee contributions may be made by after-tax contributions.

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.


RIT will automatically withhold 2% of your compensation and contribute that amount on a pre-tax basis to an account for you under this Plan if you:

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 are eligible to participate in the Basic Retirement Plan, RIT will make any automatic salary reduction contributions in excess of the maximum permitted under the Basic Retirement Plan to this Plan if you:


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.

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.


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.


Here are some other special rules that apply to automatic enrollment:

Leave of Absence


During a paid leave of absence, you may continue to make contributions to this Plan. If your leave of absence is due to disability, your salary reduction contributions shall continue until the date you start receiving long-term disability benefits. At that time, salary reduction 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, when you return to work, you may be able to make additional salary reduction contributions for the time you were absent. 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 Basic 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 described below.


Excluding certain "catch-up" contributions described below, your own pre-tax contributions to this Plan, the Basic 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 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.


In some cases, you may be able to make additional catch-up contributions to the Plan. There are two types of catch-up contributions:

  1. Special Catch-Up Contributions. If you have 15 or more years of service with RIT, you may contribute on a salary reduction basis up to an additional $3,000 per calendar year provided that:
    • the total extra contributions for all calendar years cannot exceed $15,000
    • the total of your lifetime elective deferrals cannot exceed $5,000 times your years of service with RIT (e.g., if you have 20 years of service, when your total elective deferrals reach $100,000 ($5,000 x 20), you will not be permitted to make a 403(b) catch-up election)
    Such extra contributions will not be taken into account for purposes of the limit on pre-tax contributions described above, i.e., the $16,500 limit.

  2. Age 50 Catch-Up Contributions - If you will be at least age 50 on the last day of the year and you are contributing the maximum employee contribution allowable, you may make additional, catch-up contributions of up to $5,500 in 2010 (as adjusted after 2010 by the IRS to reflect cost of living changes).

    Age 50 Catch-up contributions are not subject to the annual additions limitations or the pre-tax contribution limitations. For example, in 2010, if you are, or will be, at least age 50, you are eligible to contribute $22,000 in pre-tax contributions ($16,500 basic limit and $5,500 in catch-up contributions).

    In addition, if you are eligible for both the special catch-up election under subsection (a) above and the age 50 catch-up contribution under subsection (b) above, any extra contributions shall first be treated as a special catch-up election under subsection (a) to the extent permitted and then as an age 50 catch-up contribution under subsection (b).

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.

Rollover Contributions

Subject to the rules of the Plan Administrator and the Fund Sponsors, the Plan will accept a direct rollover of an eligible rollover distribution from qualified plans (for example, a 401(k) or pension plan of another employer), other 403(b) plans, governmental 457(b) plans or the portion of an individual retirement account or annuity that is eligible to be rolled over. However, the rollover cannot include after-tax contributions. In addition, the plan will accept eligible rollover distributions that were paid to you within the past 60 days by a qualified plan, another 403(b) plan, and a governmental 457(b) plan.

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 upon reaching age 59 1/2, 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 reach age 59 1/2, 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 1/2 unless you are still working for RIT. If you are still working for RIT when you reach age 70 1/2, 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 1/2. 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 can receive your benefits before terminating employment with RIT if you suffer a disability or reach age 59 1/2. Additionally, your benefits may be distributed immediately to an alternate payee under the terms of a qualified domestic relations order, or QDRO. If eligible, you may also take a loan or hardship withdrawal while you are employed (see below).


If eligible, you can make a hardship withdrawal of your contributions to the plan. However, you cannot withdraw the earnings on your contributions. A "hardship" is an immediate and heavy financial need that you cannot satisfy from other resources. For these purposes, you have an immediate and heavy financial need if you have:

  1. Expenses incurred for medical care or necessary to obtain medical care for you, your spouse, or your dependent (as defined in Internal Revenue Code § 152)
  2. Costs directly related to the purchase of your principal residence (but not mortgage payments)
  3. Tuition or related educational fees for the next 12 months of post-secondary education for you, your spouse, or your dependent (as defined in Internal Revenue Code § 152)
  4. Payments necessary to prevent eviction from or foreclosure on your principal residence
  5. Payment for burial expenses for your deceased parent, spouse, or dependents (as defined in Internal Revenue Code § 152)
  6. Expenses for the repair of damages to your principal residence that would qualify for a casualty deduction under Internal Revenue Code § 165 (determined without regard to whether the amount exceeds 10% of adjusted gross income)
  7. Any similar need pursuant to uniform rules established by the Plan Administrator

If you have one of the above immediate and heavy financial needs, you must provide a written statement to the Plan Administrator specifying your financial need and why you lack other financial resources reasonably available to you to meet the financial need. In addition, you must take all loans available to you under this or any other plan, unless taking the loan itself would cause a financial hardship. If you take a hardship withdrawal, you will not be able to make any contributions to any of RIT's retirement plans for at least six (6) months after the hardship withdrawal.


Currently, loans are only permitted from amounts held in TIAA-CREF accounts. Loans are not available from Fidelity accounts, but you can transfer money from a Fidelity account to a TIAA-CREF account if you want to apply for a loan. In addition to any requirements imposed by TIAA-CREF, Plan loans are subject to the following terms and conditions:

  1. You must pay a reasonable rate of interest and your loan must be adequately secured
  2. If married, you must obtain the notarized consent of your spouse
  3. When added to the outstanding balance of all other loans from this Plan and all of RIT's other plans, your loan cannot exceed the lesser of:
    • $50,000, reduced by the highest outstanding amount of loans during the twelve month period before the loan or the outstanding balance of loans on the date the loan is made
    • 50% of your account balance
  4. You must repay the loan over a period of no more than five (5) years unless the loan is used to acquire a dwelling unit that will be used as your principal residence within a reasonable time after taking the loan
  5. Principal and interest on your loan must be amortized over the loan term and you must make payments at least quarterly

Because your loan must comply with the annuity contract or custodial agreement, there may be other requirements. For example, there may be minimum amounts required for any loan (e.g., $1,000) and there may be restrictions on the number of loans permitted at any given time.


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

TIAA-CREF RA and GSRA/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† 
  • 2/3 Benefit to Survivor
  • Full Benefit to Survivor
  • 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, a hardship distribution, a loan, 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:

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.