401(k) Benefit Enhancement Program

Fidelity Investments provides great retirement savings opportunities.

As part of your employer sponsored retirement package, the 401(k) Plan is provided for your convenience in saving for your retirement future. This plan is designed to provide a greater retirement benefit along with your Group Retirement Plan, and Social Security. While contributing to the 401(k) Plan, you are also deferring taxes on your earnings, thus reducing your taxable gross income. Taxes on your contributions are not paid until they are distributed or withdrawn.

The value of your benefit may increase or decrease, as determined by the investment vehicles you select for your account. It is imperative that you become familiar with the investment options available and invest appropriately, as determined by your risk tolerance. The performance of your 401(k) account is not guaranteed. Past performance is not indicative of future performance. Invest wisely.

In addition to your pre-tax contributions to the 401(k) Plan, your employer offers a very valuable match to your account. The amount of your employer match is determined by the amount you contribute. The maximum available employer contribution is five (5) percent.

Contribution opportunities – you may defer from 1 to 100 percent (effective 1 Jan 08) of your covered earnings into the 401(k) Plan.  If you are enrolled in other benefits you should not defer 100% to avoid arrears of your other deduction requirements.  If you defer at least 5 percent and are an active participant in the Group Retirement Plan, your employer match will also be 5 percent!

Vesting – You are automatically 100% vested in your contributions. You are vested in your employer match after three years of participation. If you terminate employment prior to being vested in your employer match, your employer match will be forfeited.

Employer Match - The amount of your employer match is determined by the amount you contribute (up to 5 percent). If you are an active member of the Retirement Plan and the 401(k) Plan you will receive an additional one percent employer contribution to the 401(k) Plan.

*Emploer match is not appicable to Flexible status employees enroled in the Flex Savings Plan

Employee accounts are valued daily, giving participants an opportunity to change their investment selections more frequently than in the past. It is imperative that participants try to restrict the number of changes they make, and to avoid “timing the market” by making frequent changes based on market fluctuations. Changes made to accounts after the close of the New York Stock Exchange will not be effective until the next business day.

Additional Information on your plan:

• Loans available to participants that meet the criteria
• Hardship withdrawals available for specific identified purposes
• Investment deferrals made in 1% increments

How the Roth 401(k) compares with a traditional pretax 401(k)