CARC has established a 401(k) retirement plan to help employee supplement their retirement income. Under this plan, CARC makes contributions to a trust fund which will pay a benefit at retirement. The Plan, in detail, is kept in the Personnel Department. A summary plan description is issued to individuals as they begin participation. Included below are some basic concepts of the plan.
Each actual hour for which an employee is entitled to pay is considered an Hour of Service.
For purpose of determining eligibility to participate in the Plan, a Year of Service is a 12-consecutive month period beginning on date of hire during which the employee is credited with at least 1,000 hours of service. The employee must also have attained age 21 at the completion of this service requirement.
For purposes of determining if the employee is entitled to have an employer contribution allocated to their account, a Year of Service is a 12-consecutive month period which is the same as the Plan Year. For the Plan Year during which the employee is credited with at least "0" Hours of Service and, for all other employer contributions, this time period is the Plan Year during which the employee is credited with "0" Hours of Service.
Eligible employees can contribute before tax monies up to the maximum percentage allowable of their compensated earnings. Employee contributions are payroll deducted. CARC contributes an amount up to 50% of the employee's first 6% in contributions. CARC reserves the right stop or modify this "matching" amount at its discretion.
The employee is considered to have completed one (1) Year of Service for purposes of vesting upon the completion of 500 Hours of Service at any time during a Plan Year. A Year of Service is a consecutive 12-month period which is the same as the Plan Year. The vesting schedule is: 20% after two years of this service and 20% each year thereafter with full vesting after six (6) consecutive Years of Service.
The Plan Year is the 12 month period beginning January 1 and ending December 31.
Enrollment dates are January 1 and July 1. When the employee becomes eligible for participation, enrollment is available on the next enrollment date.
The Entry Date will be the date on which the employee enters the Plan. This will be the earlier of the first day of the Plan Year or the first day of the seventh month of the Plan Year coinciding with or following the date on which the eligibility requirements are satisfied.
The Plan provides numerous options for investment purposes. The employee participant has total control over the investment of the contributions as well as the Company's matching funds. The investment designations can be changed at the will of the participant.
For more information contact Hildy at firstname.lastname@example.org or call 337-433-3620 ext.220.