Touro Infirmary

SummaryPlan Description

of the

Touro Infirmary Retirement Plan

(Cash Balance Plan)

and

Section 403(b) Retirement Plan for Touro Infirmary (TSA Plan)

Touro Retirement Programs

Touro Infirmary ("Touro") provides retirement benefits to its employees through two plans:

  • Touro Infirmary Retirement Plan: This plan is a defined benefit plan and was amended effective January 1, 2002 to provide benefits under a cash balance plan approach (the "Cash Balance Plan"). Your benefit under this plan is referred to as your "Cash Balance Account."
  • Section 403(b) Retirement Plan for Touro Infirmary: This plan is a defined contribution plan and is also known as a tax-sheltered annuity plan ("TSAPlan"). This plan allows you to contribute on a pre-tax basis and receive a matching contribution from Touro. Your benefit under this plan is referred to as your "TSA Account."

These two plans work together to help you establish a source of income for your retirement years. Through these plans, you and Touro set aside money during the time you are working to provide income for you on your retirement. The basic intent of the plans is to help you provide for your future financial security.

The Touro retirement programs are an important source of dependable retirement income. When benefits from these plans are combined with other retirement benefits you may receive and your personal savings, you should have a solid financial base to help you enjoy your retirement years.

Plan Documents

The information in this SPD describes the plans in everyday language and tries to avoid the technical language of the plans’ legal documents. If, in our efforts to make the plans easier to understand, we have omitted or misstated any of the plans’ provisions, the plans’ official legal documents must remain the final authority. If you wish, you may examine the legal documents in Touro’s Human Resources Department.

TABLE OF CONTENTS

PAGE

Touro Infirmary Retirement Plan Cash Balance Account

Cash Balance Plan – Participation

Cash Balance Plan – Annual Credits

Cash Balance Plan – Vesting and Service

Cash Balance Plan – When Payments Begin

Cash Balance Plan – Benefit Payment Options

Cash Balance Plan - Plan Maximum Benefits

Cash Balance Plan - Plan Amendment and Termination

Section 403(b) Retirement Plan for Touro Infirmary Tax-Sheltered

Annuity (TSA) Account

TSA Plan – Participation

TSA Plan – Compensation

TSA Plan – Contributions and Rollovers

TSA Plan – Vesting

TSA Plan – Tax Advantages

TSA Plan – Investments

TSA Plan – When Payments Begin

TSA Plan – Loans

TSA Plan – Benefit Payment Options

TSA Plan - Plan Amendment and Termination

General Information About Both Plans

Assignment of Benefits

Claims Review Procedure

Your ERISA Benefit Rights

General Plan Information

INDEX OF DEFINED TERMS

PAGE

Affiliated Employers……………………………………………………………………………2

Basic Pay Credit . ……………………………………………………………………………..1

Benefit Service………………………………………………………………………………….2

Cash Balance Account…………………………………………………………………………ii

Cash Balance Plan………………………………………………………………………………ii

Compensation…………………………………………………………………………………...2

ERISA…………………………………………………………………………………………. 11

Flex Pool Professional…………………………………………………………………………..1

Hour of Service…………………………………………………………………………………. 1

Participation Service ……………………………………………………………………………1

PBGC……………………………………………………………………………………………8

Plan Administrator………………………………………………………………………………7

Total Account Balance …...... ………………………………………………………………….4

Touro……………………………………………………………………………………………ii

TSA Account…………………………………………………………………………………….ii

TSA Plan……………………………………………………………………………………….ii

Vesting Service…………………………………………………………………………………3

1

TOURO INFIRMARY RETIREMENT PLAN

Cash Balance Plan – Participation

You are eligible to participate in the Cash Balance Plan on the day you complete a year of Participation Service if you are in Covered Employment.

You will have completed a year of "Participation Service" if, at the end of your first twelve consecutive months of employment with Touro, you have been credited with 1,000 Hours of Service. If you have not been credited with 1,000 Hours of Service by the end of your first twelve consecutive months of employment, you will have completed a year of Participation Service at the end of any calendar year beginning after your hire date during which you have 1,000 Hours of Service. If you are a salaried employee, you will be credited with 90 Hours of Service for each bi-weekly pay period you work.

You are credited with an "Hour of Service" for each hour Touro directly or indirectly compensates you either for performing work or for certain reasons other than performing work (such as vacation, holidays, sickness, disability, lay-off, military duty, jury duty, or leave of absence) and for each hour of back pay Touro pays you.

"Covered Employment" means employment with Touro. Covered Employment does not include employment as a "Flex Pool Professional" (i.e., a professional employee who is eligible to provide services to Touro from time to time as Touro requests, but who is not required to provide such services when Touro requests) or as a leased employee.

Cash Balance Plan – Annual Credits

Each year, there are annual additions to your Cash Balance Account in the form of Basic PayCredits, InterestCredits, and Transition Credits. You do not make any contributions to the Cash Balance Plan. Touro pays the entire cost.

You will be eligible to receive Basic Pay Credits for a calendar year if you are employed on the last day of the year and if you are credited with a year of Participation Serviceduring the calendar year.

Basic Pay Credit

Your annual "Basic Pay Credit" is a percentage of your Compensation based on your years of service with Touro as of December 31 of the year for which the credit is made. The chart below shows the Basic Pay Credit schedule:

Your Years of Benefit Service
/ Percentage of Your Pay Credited
to your Cash Balance Account
1 -6 / 3%
7-13 / 4%
14-20 / 5%
21+ / 6%

Your "Compensation" generally is the amount reported on your Form W-2, except it is not reduced by your contributions to the TSA Plan or by amounts deducted from your pay on a pre-tax basis for other benefits. It does not include compensation above the maximum allowed under the Internal Revenue Code ($260,000 for 2014).

The level of your Basic Pay Credits is determined by your "Benefit Service," which is your total period or periods of employment with Touro in Covered Employment or (effective January 1, 2008) with "Affiliated Employers" (currently, Crescent City Physicians, Inc., MetroLab, Touro At Home, and WoldenbergVillage), irrespective of the hours you work. You are credited with periods of less than 12 months during which you were a Touro employee but during which you were not at work (such as because of vacation, holiday, sick leave, or leave of absence).

New Participants

Basic Pay Credits are based only on your Compensation while you are a Cash Balance Plan participant. However, if you become a participant in the middle of a pay period, your Basic Pay Credits are based on your Compensation for the entire pay period in which you become a participant.

Interest Credit

Touro provides an Interest Credit to your Cash Balance Account each year as of December 31. The amount of your annual Interest Credit is based on the five-year U.S. Treasury constant maturity yield as of November of the prior year, but not less than 2.85%.

Transition Credit

A special Transition Credit is applicable to individuals who were participants in the Cash Balance Plan before 2002 and is designed to protect those individuals who may be adversely affected by the change in the plan formula to a cash balance arrangement.

Trust Fund

All money the employercontributes to the Cash Balance Plan is held in a trust fund. The Trustee is responsible for the safekeeping of the trust fund. The trust fund is the funding medium used for the accumulation of assets from which benefits will be distributed.

Cash Balance Plan – Vesting and Service

Vesting means “full ownership” of your benefits under the Cash Balance Plan. You are vested in your account when you have at least 3 years of Vesting Service with Touro. Before 2008, you needed 5 years of Vesting Service to be vested. You become vested earlier than 3 years if either of the following occurs:

  • You reach age 65 (normal retirement age) while participating in the Plan, or
  • The Cash Balance Plan is terminated.

Vesting Service Definition

Your "Vesting Service" is the same as your Benefit Service, except it also includes work for Touro that is not in Covered Employment and it includes service with Affiliated Employers. In addition, you are given credit for the time you were not a Touro employee if you terminate employment and Touro rehires you within 12 months from your termination date. If your employment terminated when you were not working (such as if you were on a leave of absence), you will also receive credit for the time between your termination date and the first anniversary of the date you were first absent from Touro if you return to work for Touro within 12 months of your termination date.

Credit for Military Service

You may receive Vesting Service and Benefit Service credit under the Cash Balance Plan while serving in the military according to the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Information about USERRA rights is available from Touro’s Human Resources Department.

Cash Balance Plan – When Payments Begin

You, or your beneficiary, are eligible to receive your total vested Cash Balance Account balance if you retire, leave employment with Touro, or die while employed by Touro. Your benefit payments will begin on the date you select (subject to the rules below), provided you have completed a valid payment election form. You mayalso choose to delay payments until you reach normal or early retirement age. In the case of a lump sum distribution, payment will be made as soon as administratively possible. “Total Account Balance” means all of Touro’s contributions (based on Basic PayCredits, InterestCredits, and Transition Credits).

Touro recommends you consider your benefit payment options well in advance of your planned retirement date to allow yourself plenty of time to talk to a tax advisor, if you so desire. You may be required to furnish certain information about yourself and/or your family members before you can receive your benefits under the Cash Balance Plan. Please contact Touro Human Resources, at least three months before your planned retirement date, to discuss the options available and the procedures for requesting payment.

Once you have selected a benefit payment option, you must choose the option in writing on a form provided by Touro. Your choice is not valid unless you complete it at least 30 days but not more than 180 days before the date benefits are to begin. If your spouse’s consent is required for the type of benefit payment you request, a notary public or plan representative must witness your spouse’s signature.

Normal Retirement: Your normal retirement date is the first of the month on or after your 65th birthday. At that time, you are eligible to receive your Total Account Balance under the Cash Balance Plan.

Early Retirement: You may retire early any time after you reach age 55 and have at least 5 years of vesting service with Touro. If you choose early retirement, you will receive your Total Account Balance under the Cash Balance Plan.

Late Retirement: If you continue to work for Touro beyond age 65, you continue to earn benefits under the Cash Balance Plan and can choose to delay receipt of your Total Account Balance until your final retirement date. However, by law, you must begin receiving payments by April 1 of the calendar year following the later of:

  • The calendar year in which you reach age 70½, or
  • The calendar year in which you retire.

If you work past age 70½, your benefit may be actuarially increased to comply with IRS regulations.

Employment Termination: If you are vested and leave employment with Touro before you reach normal or early retirement age, you may choose to receive your Total Account Balance in a lump sum (with spousal consent, if you are married) or as a monthly annuity. If you choose to receive your benefit in a lump sum, you may choose a direct rollover to a personal IRA or another qualified retirement plan.

You may leave your Total Account Balance in the Cash Balance Plan until you reach age 65, at which time you must begin receiving your benefits. At that time, you may choose to receive your benefit as a lump sum or monthly annuity payments. In all events, you must begin receiving your benefits April 1 following the year you retire or the year in which you reach age 70½, whichever is later.

If you leave employment with Touro as a vested employee, but you do not choose to begin receiving your benefit, you will continue to earn an annual Interest Credit on your Cash Balance Account.

If you are not vested and you leave employment with Touro before you reach normal or early retirement age, you are not entitled to a benefit from the Cash Balance Plan. You may be able to reclaim your right to a vested benefit if you are reemployed before five consecutive years have elapsed since your last date of termination.

If You Received Benefits and are Rehired: If you begin receiving benefits in the form of an annuity payment under the Cash Balance Plan and Touro rehires you, your benefit payments (if applicable) will stop,but only if the following three conditions are met: (1) you return to Covered Employment, (2) Touro classifies you as being regularly scheduled to work more than 16 hours per week, and (3) during the month you complete 40 or more Hours of Service for Touro or an Affiliate. To account for the payments you already received during your period of non-employment, your account balance will be recalculated by adjusting for the lump sum value of the benefits you already received. Touro will once again make annual Basic Pay and Interest Credits to your account. You will continue to be vested in your benefit.

If you received a lump-sum distribution when you ended your employment and Touro rehires you after been separated from Touro for longer than 5 years (or if it is greater the number of years you were a Touro employee), you will be considered a new participant in the Cash Balance Plan without a previous benefit earned under the Cash Balance Plan.

If You Die While Employed: If you die while you are employed with Touro and you are vested, your surviving spouse (if you are married) receives a death benefit from your Total Account Balance. The monthly payment will be made in the form of a single life annuity equal to 50% of the total benefit you would have been entitled to. Your spouse may choose to begin receiving payments at any time before your Normal Retirement Date (payments will begin on the first day of the month your spouse chooses). If your spouse fails to choose a payment beginning date, or if your death occurs after your Normal Retirement Date, the payments will begin on the first day of the month coincident with or following your death.

Designating a Beneficiary: If you are vested and you die before you begin your payments, a death benefit will only be paid if you have a surviving spouse.

When you choose to begin your benefit payments, you will be required to designate a beneficiary if you choose a form of payment other than a single life annuity, a lump sum distribution, or if you choose a direct rollover. Your beneficiary designation must be made on the forms provided by Touro Human Resources.

Cash Balance Plan – Benefit Payment Options

The Cash Balance Plan allows you maximum portability: you can take your earned benefit with you whenever you leave Touro as a vested employee. Instead of receiving an annuity, you can choose to receive your benefit in a single payment. If you choose to receive your benefit as a lump sum, the full value of your account balance is paid in a single lump-sum payment. If a lump-sum payment is made, you and your spouse will not be entitled to any additional benefits from the Cash Balance Plan. In addition, if your balance is less than $1,000, you will automatically receive your Total Account Balance as a lump-sum payment.

Normal Forms of Payment: If you choose to retire with Touro, there are a number of different ways to receive your benefits, as described below. The normal form of payment will depend on whether you are married or single. Your benefit payments will be made in the normal form unless you choose an optional payment method in writing, which may be changed at any time within 180 days of the date your payments begin. All monthly payment amounts are the actuarial equivalent of your Cash Balance Account.

If you are married and you and your spouse do not choose an optional form of payment, you will receive the joint and 50% survivor annuity with a 5-year certain guarantee. This option provides a monthly benefit for your life, with 50% of this amount continued to your surviving spouse after your death. These payments continue until your spouse dies as well. However, full payments are guaranteed for 60 months. If you die before you receive all of the guaranteed payments, the remaining payments will be made to your spouse or, if your spouse predeceased you, to your beneficiary. If you are living after you received all of the guaranteed payments, you will continue to receive payments for your life. When you die, your spouse will receive monthly payments that are 50% of your original benefit amount for his or her life.