BROOKHAVEN SCIENCE ASSOCIATES

Retirement Plan

These are important details regarding this plan.

ELIGIBILITY

Active Employees
Effective January 1, 2007, any employee who was not already a participant in the plan on December 31, 2006 will become eligible to participate after he or she has either:

  • attained age 21 and completed one year of service, or
     
  • attained age 30 and completed six months of continuous service, and is not a part-time or temporary employee.

The following individuals are not eligible to participate in the plan:

  • any leased employee, as defined by Internal Revenue Code Section 414(n)
     
  • any person holding solely a guest or visitor appointment to Brookhaven
     
  • any person whose terms of employment are governed by a collective bargaining agreement whose retirement benefits are the subject of good faith bargaining, unless the collective bargaining agreement specifies that such individual is eligible to participate in the plan, or
     
  • any person designated by the employer as an independent contractor or who performs services pursuant to a written agreement with a third party

CONTRIBUTIONS

This plan allows only employee contributions.

EMPLOYER MATCHING

Brookhaven Science Associates does not make matching contributions with this plan.

VESTING

Vesting is the process by which a participant earns the right to the value of the contributions in his or her account. Employees who were participants in the plan before January 1, 2007 are 100% vested in their accounts under the plan.

For employees who become participants on or after January 1, 2007, accounts will vest according to your years of service under the following schedule:

Years of Service Percentage Vested
Less than 2 0%
2 but less than 3 25%
3 but less than 4 50%
4 but less than 5 75%
5 or more 100%

INVESTMENTS

Your employer offers you a variety of investment choices from an array of asset classes. You can see a list of the investment choices under this plan on the Investment Choices page.

EXPENSES

Expenses vary from investment to investment. To learn about expenses associated with an investment, see a list of the investment choices under this plan on the Investment Choices page, and read the Fact Sheet or the prospectus for that investment.

DISTRIBUTIONS

Retirement Options
If a participant has terminated employment, he or she may begin receiving retirement benefits. Participants have the benefit options indicated below for the payment of benefits.

Payment of retirement benefits, other than the Cash Withdrawal option, must be made through TIAA-CREF. This means that in order to establish the payment of benefits other than through the Cash Withdrawal option, the participant must transfer accumulations, if any, in Fidelity Investments to TIAA-CREF before benefit payments can begin.

Other than for the purpose of the Cash Withdrawal and Retirement Transition Benefit options indicated below, retirement benefits will be provided in the form of an annuity. An annuity, for the purpose of this plan, is a series of regular payments.

In any case where spousal consent is required to elect a form of benefit, the consent form must be signed before a plan representative or a notary public.

To apply for benefits, contact TIAA-CREF at 800 842-2776, Fidelity Investment Services at 800 343-0860.

Cash Withdrawal

If a participant has terminated employment and is age 55 or older, he or she may request to receive up to 100% of his or her total accumulation in the Retirement Plan through cash withdrawals. Cash withdrawals are permitted from TIAA; however, limitations apply. Based on federal law, married participants who request a cash withdrawal must provide their spouse’s written consent for such withdrawal, unless the distribution is $5000 or less.

Retirement Transition Benefit
When a participant begins the process to establish a retirement annuity, he or she may request that 10% of his or her total accumulation be provided as a single sum payment. This is called a Retirement Transition Benefit. Based on federal law, married participants who request a Retirement Transition Benefit must provide their spouse’s written consent for such benefit.

One-Life Annuity Option
The most basic annuity form is the One-Life Annuity. This is the normal form of benefits for participants who are not married when distributions begin. It pays income to the participant for his or her lifetime, and the income ceases at death. A participant may elect a guaranteed period of either 10, 15, or 20 years to be added to this option, but restrictions may apply.

If the participant dies during the period, the designated beneficiary will continue to receive the full payments until the guaranteed period ends. Based on Federal law, married participants who request a one-life annuity option must provide their spouse’s written consent for such benefit.

Two-Life Annuity Option

A Two-Life Annuity provides an income for life for two people. This is the normal form of benefits for participants who are married when distributions begin. Neither the participant nor his or her designated second annuitant can outlive the income. The amount continuing to the survivor after the participant’s death depends on the option selected.

A participant may elect a guaranteed period of either 10, 15, or 20 years to be added to any of the Two-Life Annuity options indicated below, but restrictions may apply.

When a guaranteed period is added to a Two-Life Annuity, the guarantee provides that the benefit will continue to a designated beneficiary until the end of such period if both the participant and the second annuitant die within the guaranteed period. Based on federal law, married participants who request a Two-Life Annuity option must provide their spouse’s written consent for such benefit, if the designated second annuitant is not the spouse.

  • A Two-Life Annuity with full benefit to survivor means that there is no benefit reduction after the death of either the participant or the second annuitant. If a guaranteed period is added to this option and both the participant and the second annuitant die during the period, the designated beneficiary will continue to receive the full benefit until the guaranteed period ends.
  • A Two-Life Annuity with half benefit to second annuitant means that if the participant dies first, the benefit to the second annuitant will continue at half of the amount it would otherwise be. If the second annuitant dies first, the income to the participant does not change. If a guaranteed period is added to this option and both the participant and the second annuitant die during the period, the designated beneficiary will receive half of the benefit until the guaranteed period ends.
  • A Two-Life Annuity with three-quarters benefit to second annuitant means that if the participant dies first, the benefit to the second annuitant will continue at three-quarters of the amount it would otherwise be. If the second annuitant dies first, the income to the participant does not change. If a guaranteed period is added to this option and both the participant and the second annuitant die during the period, the designated beneficiary will receive three-quarters of the benefit until the guaranteed period ends.
  • A Two-Life Annuity with two-thirds benefit to survivor means that when either the participant or the second annuitant dies, the benefit is reduced to two-thirds of the amount it would otherwise be for the survivor. This is the only option where the benefit of the participant reduces if the second annuitant dies first. If a guaranteed period is added to this option and both the participant and the second annuitant die during the period, the designated beneficiary will receive the two-thirds benefit until the guaranteed period ends.
Fixed Period Annuity Option
For any vested accumulation that a participant has in CREF, he or she may elect the fixed period annuity option that provides retirement benefits over a number of years based on the participant’s election. The number of years available for benefits is between 15 and 30 and depends on the participant’s age. During that period, all of the participant’s accumulation will be returned to him or her.

When the fixed period is over, benefits cease. If a participant dies during the period, the designated beneficiary may elect to continue receiving the remainder of the benefit payments or a lump sum payment. Based on Federal law, married participants who request a fixed period annuity option must provide their spouse’s written consent for such benefit.

Interest Payment Retirement Option (IPRO)
For any vested accumulation that a participant has in TIAA, he or she may elect the IPRO that provides for payments consisting only of current interest on the TIAA accumulation.

The minimum amount that may be designated for an IPRO is $10,000. The accumulation remains unchanged during the period that the IPRO income is provided. This option is available to participants between ages 55 and approximately 69½. If a participant elects this option, it must eventually be converted to an annuity or MDO.

Based on federal law, married participants who request an IPRO option must provide their spouse’s written consent for such benefit.

Minimum Distribution Option
For participants who have terminated employment, have not yet begun receiving retirement benefits, and who are age 70½, Federal laws require that a minimum retirement distribution must begin by April 1 of the year after reaching age 70½. Under this option, payments are set at the minimum level required by law and can continue until (a) the total accumulation has been fully paid out to the participant or if he or she dies before payments are completed, to a designated beneficiary or (b) such time that the participant decides to begin an annuity payment option.

Rollover Distributions
You may also elect to have your account balances directly rolled over to an individual retirement account or another qualified retirement plan, including a Section 403(b) annuity or governmental Section 457 Plan. To receive a rollover distribution, you must be eligible to receive a distribution from the Plan. Therefore, to receive a rollover of a cash withdrawal, you must have terminated employment and reached age 55. However, some types of distributions, such as annuity payments, cannot be rolled over. To initiate a rollover distribution, contact the Trustee where your accounts are invested.

TAXATION

Retirement plan contributions are usually made with before-tax dollars, so federal income taxes are deferred until you begin taking withdrawals later on.

No taxes are due on pretax contributions and earnings made until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment or age 59½ (subject to plan rules). If you withdraw funds before age 59½, they may be subject to an additional 10% early-withdrawal penalty.

In limited instances when you are making contributions to your retirement plan with after-tax dollars, you will not have to pay income tax on your principal. However, when monies are withdrawn, taxes may be applicable to any earnings and interest accrued.

For additional information and guidance, contact your tax advisor.

LOANS

Loans are available from a minimum of $1,000 to a maximum of $50,000 from each employer. How much you can borrow depends on the amount you currently have in the plan and whether you have other outstanding loans. If you have accumulations in other employers' plans, you may be able to transfer or roll them over to this plan to increase your maximum loan amount if this plan accepts rollovers.


1 The availability of certain distributions may depend on the type of contract underlying your plan. Also, if you're married, your right to choose an option may be subject to your spouse's right to survivor benefits. Talk to your benefits office for details.

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