Chendes et al v. Xerox HR Solutions, LLC

Exhibit 3 - Summary Plan Description: Tax-Efficient Savings Plan for Hourly Employees

Eastern District of Michigan, mied-2:2016-cv-13980

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2:16-cv-13980-RHC-SDD Doc # 18-3 Filed 03/23/17 Pg 1 of 88 Pg ID 244 EXHIBIT 3 2:16-cv-13980-RHC-SDD Doc # 18-3 Filed 03/23/17 Pg 2 of 88 Pg ID 245 Tax-Efficient Savings Plan for Hourly Employees Summary Plan Description July 2014 FRD-G41 07/2014 2:16-cv-13980-RHC-SDD Doc # 18-3 Filed 03/23/17 Pg 3 of 88 Pg ID 246 Table of Contents Tax-Efficient Savings Plan for Hourly Employees Overview..................................... 1 Account Statements...................................................................................................................................................2 Performance History...................................................................................................................................................3 Plan Eligibility and Participation.................................................................................. 4 Eligibility........................................................................................................................................................................4 Participation.................................................................................................................................................................4 Account Access...........................................................................................................................................................5 User ID and Personal Identification Number (PIN)................................................................................................6 Transaction Deadlines...............................................................................................................................................6 Changes in Investment Elections for Future Contributions, Fund Transfers, Loans, and Withdrawals Through myfordbenefits.com or the NESC.............................................................................................................6 Enrolling or Changing Contribution Elections.........................................................................................................6 Naming a Beneficiary.................................................................................................... 7 Incapacitation..............................................................................................................................................................7 Contributions................................................................................................................. 8 Pre-Tax Contributions (Including Pre-Tax Catch-up Contributions)....................................................................8 After-Tax Contributions from Eligible Pay...............................................................................................................9 Contribution Spillover Election..................................................................................................................................9 Eligible Pay for Contribution Deductions...............................................................................................................10 Allocation of Profit Sharing and Discretionary Payments...................................................................................10 Rollover Contributions..............................................................................................................................................11 Company Contributions...........................................................................................................................................12 Contributions Following Qualified Military Service...............................................................................................12 Limitations on Contributions and Eligible Pay......................................................................................................13 i 2:16-cv-13980-RHC-SDD Doc # 18-3 Filed 03/23/17 Pg 4 of 88 Pg ID 247 How Other Benefits Are Affected by Pre-Tax Contributions...............................................................................13 Vesting......................................................................................................................... 14 Investing...................................................................................................................... 15 Investment Elections for Future Contributions......................................................................................................15 Member Responsibility.............................................................................................................................................15 Designated Default Investment Option..................................................................................................................16 Available Investment Options.................................................................................... 17 Voting........................................................................................................................... 18 Ford Stock Fund........................................................................................................................................................18 Mutual Funds and Non-Mutual Funds (Collective Investment Trusts)..............................................................18 Fund Transfers............................................................................................................ 19 Transferring Assets...................................................................................................................................................19 Making a Transfer.....................................................................................................................................................19 Trading Restrictions (or Purchase Blocks)............................................................................................................19 Short-Term Redemption Fees................................................................................................................................20 Transfer Privileges....................................................................................................................................................20 Transfer Privileges Regarding the Ford Stock Fund...........................................................................................20 Independent Fiduciary and Investment Manager for the Ford Stock Fund............ 21 Fees and Expenses..................................................................................................... 23 Plan Administrative and Other Expenses..............................................................................................................23 Investment or Asset-Based Fees...........................................................................................................................23 Company-Specific Funds.........................................................................................................................................24 Summary....................................................................................................................................................................25 Additional Information...............................................................................................................................................25 ii 2:16-cv-13980-RHC-SDD Doc # 18-3 Filed 03/23/17 Pg 5 of 88 Pg ID 248 Plan Loans................................................................................................................... 26 Eligible Assets...........................................................................................................................................................26 Loan Limitations........................................................................................................................................................27 Loan Application........................................................................................................................................................27 Interest Charges........................................................................................................................................................28 Loan Repayment.......................................................................................................................................................28 Loans Initiated Beginning January 1, 2004...........................................................................................................29 Loan Default Process...............................................................................................................................................30 Investment of Loan Repayments............................................................................................................................31 Withdrawals................................................................................................................. 32 After-tax Contributions.............................................................................................................................................32 Pre-tax Contributions................................................................................................................................................32 Hardship Withdrawals..............................................................................................................................................32 Company Contributions...........................................................................................................................................33 How Withdrawals Are Paid......................................................................................................................................33 Non-Active Employees.............................................................................................................................................34 Making a Withdrawal................................................................................................................................................35 Rollovers...................................................................................................................... 36 Direct Rollover...........................................................................................................................................................36 Distributions................................................................................................................ 37 Accounts Valued at $1,000 or Less.......................................................................................................................37 Minimum Required Distributions (MRDs)..............................................................................................................37 Timing of Your MRD.................................................................................................................................................38 Ford Stock Fund Dividends.....................................................................................................................................39 When You Die...........................................................................................................................................................40 3 2:16-cv-13980-RHC-SDD Doc # 18-3 Filed 03/23/17 Pg 6 of 88 Pg ID 249 Special Tax Notice....................................................................................................... 41 Situations and Events Affecting TESPHE Benefits.................................................. 51 Law and Regulation Changes.........................................................................................................................