You are eligible to participate in the Reliant Mission 401(k) Retirement Savings Plan which includes an Automatic Contribution Arrangement (ACA).  This notice provides you with information to consider before deciding to take no action or to start continue or change your salary deferral rate.

Eligibility and Entry Requirements

You are eligible to participate in the plan if you:

• Have completed *1 year of service with the company
  *One year will be defined as 12 consecutive months with no breaks other than approved leave of absence, where all like benefits would be continued.

Salary Deferral Contribution Plan Provision

You may elect to defer a percentage of your pay each pay period. Your current taxable income is reduced by the amount you contribute through salary deferral. This lets you reduce your current federal and most state income taxes.

• You may also elect to defer a percentage of your pay each pay period as Roth 401(k) deferrals, which are after-tax contributions.

Automatic Contribution Arrangement

This retirement plan includes an automatic contribution arrangement that applies to new participants as they enter the plan.  If you are a new participant, you will be automatically enrolled in the traditional 401(k) retirement plan, meaning $50.00 of your pre-tax pay will be deducted from paychecks and contributed to the retirement plan on your behalf unless you elect a different salary deferral percentage or change the deferral to an after-tax Roth 401(k) deferral.

The retirement plan also includes an automatic salary deferral increase provision. All 401(k) participants that are auto-enrolled at $50 a month, and who have not made any changes to their auto-enrollment, will see their monthly 401(k) contribution increase by $10 beginning with their January paystub. This $10 increase will occur every January and will remain in effect until either: 

1. The employee logs on to Principal.com and makes a change to their 401(k) election in some way. 
2. The maximum step-up amount of $150 is reached.

 If you are currently eligible for the plan, you will maintain your current salary deferral amount unless you elect a different salary deferral percentage.

• If you do not wish to be automatically enrolled, you may elect not to defer or to defer another percentage.  You can enter into an agreement to change your salary deferral contribution up to the last day of the month prior to the deferral beginning.  (i.e. your enrollment and auto contribution become effective, with the 4/15/20XX paycheck, you may make changes up to 3/31/20XX to affect the April paycheck).  You will need to complete an election online at http://www.principal.com  Employees accessing the http://www.principal.com for the first time will be prompted to create a user id and password through the site.

Once an agreement (affirmative or automatic) is in effect, salary deferrals will be payroll deducted from your future paychecks.  You can terminate your agreement at any time. Please note dates for effecting changes in the previous bullet point.

If you affirmatively elect to make salary deferral contributions or if you are automatically enrolled and you do not provide direction as to how contributions made on your behalf should be directed, then the contributions will be directed to the appropriate Principal LifeTime Hybrid Fund, based on your expected retirement age.

Internal Revenue Service (IRS) regulations or the retirement plan may limit the annual amount of your salary deferral contributions.  Please see below for the annual IRS salary deferral limits.  If you meet a salary deferral contribution limit, you may continue to defer up to the catch-up contribution limit if you are eligible to defer catch-up contributions. 

Salary Deferral Limits

Internal Revenue Service (IRS) regulations or the retirement plan may limit the annual amount of your salary deferral contributions.   If you want to contribute more to your account than would be provided automatically, there are limits on the maximum amount.  The IRS limits are described in Part 2 – Contributions to the Plan – Limits - of the Plan’s Summary Plan Description (SPD) and can also be found on the employer website at principal.com or Annual Contribution Limits 403(b) Plan.