BROOKHAVEN SCIENCE ASSOCIATES

401(K) Plan

These are important details regarding this plan.

ELIGIBILITY

Each employee of Brookhaven Science Associates, LLC who was a participant in the plan on December 31, 2001 remained eligible to participate in this plan on January 1, 2002.

In addition, all full-time employees are eligible to participate in the 401(k) plan on the first day of active employment. Employees who work on a part-time, temporary or irregular basis may participate on the earlier of January 1 or July 1 following completion of 1,000 hours of service during the 12 consecutive calendar month period beginning with the first day of active employment (or each successive anniversary thereof).

An hour of service is each hour for which you are entitled to be paid for the performance of duties, or for which you are entitled to be paid for vacation, holiday, illness, incapacity, layoff, jury duty, military duty or leave of absence. No more than 501 hours of service will be credited for any single continuous period during which you perform no duties, except in the case of certain absences due to military service. Service shall include continuous service, if any, with Associated Universities, Inc., Battelle Memorial Institute, Research Foundation of the State University of New York or the State University of New York at Stony Brook immediately prior to a transfer of employment to Brookhaven Science Associates, LLC.

The following individuals are not eligible to participate in the plan: (1) any leased employee, as defined by Internal Revenue Code Section 414(n); (2) any person holding solely a guest or visitor appointment to Brookhaven; (3) 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 (4) any person designated by the Employer as an independent contractor or who performs services pursuant to a written agreement with a third party.

CONTRIBUTIONS

An employee who is eligible to participate in the 401(k) Plan (including employees who have not yet satisfied the plan’s service requirements for eligibility) may contribute to the plan as a rollover any qualified rollover distribution payable to the employee from any other qualified plan, 403(a) or 403(b) Plan, 457 Plan or Individual Retirement Account.

However, the rollover amount cannot contain any after-tax contributions, even if the employee’s prior plan allowed for after-tax contributions.

EMPLOYER MATCHING

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

VESTING

"Vesting" refers to an employee's right, usually earned over time, to receive some retirement benefits regardless of whether or not they remain with the employer. Your contribution to this account will be 100% vested immediately.

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

WITHDRAWALS
Withdrawals during employment are permitted from this plan if any of the following events occur:

  • The participant wishes to withdraw any rollover contributions that he or she made to the plan;
  • The participant attains age 59½; or
  • The participant incurs a financial hardship.

For a participant to incur a financial hardship, the participant must have an immediate and heavy financial need that meets one of the following hardship criteria:

  • Purchase of the participant’s principal residence
  • Prevention of foreclosure on or eviction from the participant’s principal residence
  • Payment of medical expenses which are not reimbursed through insurance for the participant or his or her spouse or dependents
  • Payment of tuition, related educational expenses, and/or room and board for post-secondary education for the participant or his or her spouse or dependents for the next twelve months
  • Payment of funeral expenses for a member of the participant’s family
  • Expenses for the repair of damage to the participant’s principal residence that would qualify for a casualty deduction under Code Section 165
A withdrawal for hardship reasons is only available if the financial need cannot be reasonably relieved through other sources.

The hardship withdrawal cannot exceed the amount required to satisfy the immediate hardship and may only include the participant’s plan contributions, not income earned. A participant who receives a withdrawal for hardship reasons will be required to discontinue plan contributions for six months. To apply for a hardship withdrawal, participants must contact the Fiscal Officer.

In addition, a withdrawal of rollover contributions may be made at any time. If a participant withdraws rollover contributions before age 59½, Federal early distribution penalties may apply.

Based on Federal law, married participants who request a withdrawal must provide their spouse’s written consent for such benefit.

For information on withdrawals, other than for financial hardship, and the receipt of retirement income see the RETIREMENT OPTIONS section (below).

STATEMENTS
Participants will receive quarterly account statements from each of the investment companies in which they have invested plan contributions. The statements will indicate the amount of accumulations in each of the funds in which the participant has invested.

RETIREMENT OPTIONS
If a participant retires, becomes disabled and receives Long Term Disability Plan benefits for at least 24 months, terminates employment, or attains age 59½, 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 Investment Services 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, or Fidelity Investment Services at 800 343-0860.

Cash Withdrawal

A participant may elect, as a retirement benefit, a cash withdrawal of up to 100% of his or her total accumulation in the 401(k) Plan. Based on federal law, participants who request a cash withdrawal must provide their spouse’s written consent for such withdrawal, unless the withdrawal is $5,000 or less.

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 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.

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.

Fixed Period Annuity Option
For any accumulation that a participant has in TIAA-CREF, he or she may elect the fixed period annuity option which provides retirement benefits over a number of years based on the participant’s election. The number of years available for benefits is between 2 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.

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
When you terminate your employment, 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 initiate a rollover distribution, contact the trustee where your accounts are invested or contact the Benefits Office.

TAXATION

Because you make contributions with pretax dollars, federal income taxes are deferred on supplemental plans until you begin taking withdrawals later on.

No taxes are due on contributions and earnings 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.

For additional information and guidance, contact your tax advisor.

LOANS

Loans are permitted from a participant’s TIAA-CREF accumulation in this Plan. When a participant begins a loan, a portion of his or her accumulation will be set aside as security for the loan but will continue to earn income while the loan is being repaid.

The minimum loan amount available is $1,000. The maximum amount is the least of the following:

  • $50,000 or
  • 45% of the participant’s TIAA-CREF accumulation or
  • 90% of the participant’s TIAA accumulation.
If a participant has Plan accumulations in CREF or Fidelity, he or she may transfer all or part of the accumulation to TIAA to increase the available loan amount.

A participant may have more than one outstanding loan. If a participant applies for a second loan, the amount available may be affected by the outstanding loan.

Loan repayments may be made over a period of one to five years with payments due monthly or quarterly. A ten year repayment option is available if the loan is being used to purchase a principal residence.

Participants who want to pursue a loan must contact TIAA-CREF directly for a loan application and additional information on loan provisions including the interest rate, billing, and default.

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


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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