Administration > 401(k) Plan
401(k) Plan
Top Heavy Provisions
As required by law, alternate plan provisions go into effect if the plan becomes "top heavy." The plan is top heavy if more than 60% of the account balances relate to key employees. Key employees include Company officers and highly-paid employees. You will be notified if the plan becomes top heavy.
If the Plan Ends
In addition to the provisions for modification, amendment, and termination of the plan as described in "Modification, Amendment, or Termination of the Plans", if the plan is terminated, you will automatically become 100% vested in the value of your 401(k) Plan account if the plan contains an Employer match or Profit-Sharing contribution.
Additional Information
The EBAC has the authority to establish investment fund policies and objectives.
Most expenses of administration, including the expenses and compensation of the 401(k) Plan's Trustee and any counsel employed by the Trustee, are paid by the Company. Brokerage commissions, transfer taxes, and other charges and expenses in connection with the purchase or sale of securities are charged against the trust fund and added to the cost of such securities or deducted from the proceeds thereof, as the case may be.
However, there are certain expenses that may be paid just from your account. These are expenses that are specifically incurred by, or attributable to you. For example, if you are married and get divorced, the plan may incur additional expenses if a court mandates that a portion of your account be paid to your ex-spouse. These additional expenses may be paid directly from your account (and not the accounts of other participants) because they are directly attributable to your benefit under the plan. After you terminate employment with the Company, the plan may charge your account for your pro rata share of the plan's administration expenses, regardless of whether the Company pays some of these expenses on behalf of current employees.
The Company, from time to time, may change the manner in which expenses are allocated and which plan expenses will be paid directly from an individual participant's account rather than from the accounts of all participants.
The 401(k) Plan is a participant-directed individual account plan under ERISA section 404(c), and the 401(k) Plan fiduciaries, including the EBAC, may be relieved of liability for any losses which are the direct and necessary result of investment instructions given by participants.
Although the Trustee is independent, it is simply a "directed trustee." This means that it acts solely on instructions from plan participants and beneficiaries authorized to direct it and does not make discretionary fiduciary decisions about the plan or the investment options and does not monitor the performance of the investment options.