Benefits

LAFAYETTE COLLEGE
DEFINED CONTRIBUTION RETIREMENT PLAN


Summary Plan Description

Easton, Pennsylvania 18042-1768
April 1998

TABLE OF CONTENTS

Part I - Information about the Plan

Part II - Information about Your Plan

Part III - Additional Information

PART I - INFORMATION ABOUT THE PLAN Return to Top
 
What Is The Lafayette College Retirement Plan? Return to Top

The Lafayette College Retirement Plan (the "Plan") is a Defined Contribution ("Money Purchase") Plan. It was established by the Board of Trustees, made effective as of September 1, 1946, and restated and amended as of July 1, 1994. Benefits are provi ded through fixed-dollar annuities issued by the Teachers Insurance and Annuity Association (TIAA). Benefits also are provided through variable annuities offered by TIAA's companion organization, the College Retirement Equities Fund (CREF), and through F idelity Investments.

The Plan operates under Section 403(b) of the Internal Revenue Code whereby employees of tax-exempt organizations can enter into salary reduction agreements with their employers. The Administrator of the Plan is Lafayette College. The Plan year exten ds from January 1 to December 31.

May the Terms Of The Retirement Plan Be Changed? Return to Top

The College reserves the right to modify or discontinue the Plan at any time. The College, by action of its Board, also may delegate any of its power and duties with respect to the Plan or its amendments to one or more officers or other employees of t he College. Any such delegation shall be stated in writing. The College will exercise good faith, apply standards of uniform application, and refrain from arbitrary action.

Who Is Eligible To Participate In The Plan? Return to Top

You are an eligible employee if you are a member of the Faculty, administrative staff, exempt support staff, a supervisor designated exempt under the Fair Labor Standards Act or a support staff employee nonexempt under the Fair Labor Standards Act. If you are an employee who is customarily employed on a part-time, temporary or irregular basis for less than 900 hours a year, you are eligible to participate only if credited with 900 hours or more of service (including paid absence) during any 12-consecu tive calendar month period commencing with your date of employment, or any anniversary date. In this event, you become eligible to participate as of the beginning of the 12-month period during which you were credited with at least 900 hours of service. Y ou are not eligible to participate in the Plan if your employment is incidental to your educational program.

When Do I Begin Participating In The Plan? Return to Top

Category A includes faculty members, administrative staff, exempt support staff, supervisors designated exempt under the Fair Labor Standards Act and certain other employees employed prior to 1971 who elected to participate in the contributory plan t hen in effect. If a member of Category A, you will begin participation in this Plan on the first of the month following employment at the College.

Category B includes all support staff employees nonexempt under the Fair Labor Standards Act. If a member of Category B, you will begin participation in this plan following the completion of a 24 month period which constitutes two years of service at the College without a break in service and the attainment of age 21.

Appropriate enrollment forms must be completed and returned to the College.

The College will notify you when you have completed the requirements necessary to participate in the Plan. All determinations with respect to eligibility and participation will be made by the College based on its records and the official Plan Document which is on file with the Plan Administrator.

May The Waiting Period Be Waived? Return to Top

Yes, if you are an eligible employee who has fully vested and funded benefits under the terms of a retirement plan of a previous institution. In that case, you may begin participation in this Plan on the first of the month following employment at the College.

How Are Years Of Service Counted? Return to Top

You are credited with a year of service for each 12-month period starting with your date of employment (or anniversary date of employment) during which you complete 900 or more hours of service.

Do I Participate During An Approved Leave Of Absence? Return to Top

During a paid leave of absence, the College will continue its Plan Contributions on your behalf provided your Plan Contributions are not discontinued. The Plan Contributions will be based on your salary then being paid by the College.

When Do My Benefits Become Vested (i.e., owned)? Return to Top

You are fully and immediately vested in the benefits arising from contributions made this under this Plan. Such amounts are nonforfeitable.

How Are Plan Contributions Made? Return to Top

When you begin participation in the Plan, contributions will be made automatically to a retirement annuity with TIAA-CREF or a custodial account with Fidelity Investments. The contributions are based on a percentage of your regular salary in accordanc e with the following schedule. If you participate in the Plan for only a part of a year, your allocation will be based on the portion of salary applicable to the period in which you participate. The plan contributions by you are made on a before tax (sal ary reduction) basis.

Plan Contributions as a Percentage of Regular Salary
Category By You By the College
A Less than $15,000 0% 9.5%
Balance 5% 9.5%
B 0% 8.0%

For faculty, regular salary means the salary stated in the academic year contract or appointment letter. For all other employees, regular salary means the basic annual earnings excluding overtime pay, bonuses, and any other forms of supplemental remun eration. In no event will the salary taken into account under the Plan exceed the limits of section 401(a)(17) of the Internal Revenue Code ($160,000 for 1998).

Is There A Limitation on Contributions? Return to Top

Yes. The total amount of contributions made on your behalf for any year will not exceed the limits imposed by sections 402, 403, and 415 of the Internal Revenue Code, as may be adjusted from time to time. The amount of Plan Contributions will also be subject to the limitations of section 401(m) of the Internal Revenue Code, if applicable.

May I Make Extra Payments? Return to Top

The College permits payment of additional periodic premium amounts via a salary reduction agreement under Section 403(b) of the Internal Revenue Code to your own individual tax-deferred annuity or account, thus providing for deferral of taxes on these amounts within the limits of the Internal Revenue Code. Such additional periodic premiums are permitted under the terms of the College's separate tax-deferred annuity plan. There are limits imposed by the Internal Revenue Code on the amount you can cont ribute by salary reduction. In general, this limit is 16 2/3 percent of your salary, not to exceed $9,500 per year (indexed upward to $10,000 for 1998). However, your participation in this Plan and other factors may change your maximum.

What is The Normal Retirement Age Under The Plan? Return to Top

The normal retirement age under the Plan is the last day of the fiscal year on or following your 65th birthday. Annuity income usually begins on that date.

When Does My Retirement Income Begin? Return to Top

Although income usually begins at the normal retirement age, you may begin to receive income at any time, which may be either earlier or later than the normal retirement age. However, if you are employed by the College on the date when benefits under this Plan commence (and that date is before April 1 following the calendar year in which you attain age 70 ½) your employment with the college will terminate unless you are subject to the terms of the college's phased retirement plan.

Retirement benefits must normally begin no later than April 1 of the calendar year following the later of the year in which you attain age 70 ½ or the year in which you retire, although earlier payment may be available to employees who attain age 70 ½ prior to 1999. Failure to begin annuity income by the required beginning date may subject you to a substantial federal tax penalty. Contact your Plan administrator for more information.

If you die before the distribution of benefits has begun, your entire interest must normally be distributed not later than December 31 of the fifth year following your death. Under a special rule, death benefits may be payable over the life or life ex pectancy of a designated beneficiary if the distribution of benefits begins not later than December 31 of the year following your death. If the designated beneficiary is your spouse, the commencement of benefits may be deferred until you would have attai ned age 70 ½ had you continued to live.

The payment of benefits according to the above rules is extremely important. Federal tax law imposes a 50 percent excise tax on the difference between the amount of benefits required by law to be distributed and the amount actually distributed if it i s less than the required minimum amount.

What Options Are Available For Receiving Retirement Income? Return to Top

You may choose from among several types of income options when you retire. If you are married at the time you elect to begin income, your right to choose an income option will be subject to your spouse's right (under federal pension law) to receive be nefits in the form of a survivor annuity, unless this right is waived by you and your spouse. The following annuity distribution options are available:

Rules Applicable to TIAA & CREF

A One-Life (Single Life) Annuity. This option is designed to pay you an income for as long as you live. This option provides a larger monthly income for you than other options, with all payments ceasing at your dea th. This option is also available with a 10, 15, or 20 year guaranteed payment period (but not exceeding your life expectancy at the time you begin annuity income). If you die during the guaranteed period, payments in the same amount that you would have received continue to your beneficiary for the rest of the guaranteed period.

A Survivor Annuity. This option pays you a lifetime income, and if your spouse (or other Second Annuitant) lives longer than you, he or she continues to receive an income for life. The amount continuing to the survi vor depends on which of the following three options you choose:

  • Two-thirds Benefit to Survivor. At the death of either you or your Second Annuitant, the payments are reduced to two-thirds the amount that would have been paid if both had lived, and are continued to the survivor for life.
  • Full Benefit to Survivor. The full income continues as long as either you or your Second Annuitant is living.
  • Half Benefit to Second Annuitant. The full income continues as long as you live, and if your Second Annuitant survives you, he or she receives for life one-half the income you would have received if you had lived. If your Second Annuitant dies f irst, the full income continues to you for life.

These options are also available with a 10, 15, or 20 year guaranteed period, but not exceeding the joint life expectancies of you and your spouse (or other annuity partner). The period may be limited by federal tax law.

A Minimum Distribution Option (MDO). This option is for participants age 70 ½ or older. With the MDO, you will receive the required federal minimum distribution while preserving as much of your accumulation as possible. The minimum distribution will be paid to you annually.

A Single Sum Distribution. If you are at least 55 years old, you may receive a portion or all of your CREF accumulations as a lump-sum cash payment when you terminate employment. TIAA accumulations may be withdra wn only through the Transfer Payout Annuity (TPA), and will be paid to you in substantially equal annual payments over a period of 10 years. Payments made under the TPA contract are subject to the terms of that contract. In addition, the Retirement Tran sition Benefit and IPRO described elsewhere applies.

Rules Applicable to Fidelity

A Single Sum Distribution. This option pays you the entire value of your account in a single sum.

Periodic Installment Payments. This options permits you to direct the payment to you of a specific dollar amount from time to time.

A Single Life Annuity. This option pays you an income for as long as you live, with payments stopping at your death. This option is also available in a form providing periodic payments for your life and then paymen ts continuing to your spouse following your death and in the form of payments over a guaranteed period. No such payments may be made over a period exceeding your life expectancy or the joint life expectancies of you and your spouse.

A 50 Percent Survivor Annuity. This option pays you a lifetime income and, if your spouse survives you, income for his or her life in an amount equal to 50 percent of the amount paid while you were alive. The amoun t paid while you are alive will be less than the amount paid in the form of a single life annuity because payments are expected to be made over two lives. This option may also be payable in a form that pays a survivor benefit greater than 50 percent. Se e your Plan administrator for more information.

Payment under the annuity options will be made from an annuity contract purchased from an insurance company.

What are my spouse's rights under this plan to survivor benefits? Return to Top

Rules Applicable to TIAA and CREF

If you are married and benefits commenced before your death, your surviving spouse will receive death benefits, if any, as provided in accordance with the form of payment in effect at the time of your death.

If you die before annuity income begins, your surviving spouse will receive a benefit that is at least half of the full current value of your annuity accumulation, payable in a single sum or under one of the income options offered by the fund sponsor ( pre-retirement survivor annuity).

If you are married, benefits must be paid to you as described above, unless your written waiver of the benefits and your spouse's written consent to the waiver is filed with the fund sponsor on a form approved by the fund sponsor.

The period during which you may elect to waive the pre-retirement survivor benefit begins on the first day of the plan year in which you attain age 35.The period continues until the earlier of your death or the date you start receiving annuity income. If you die before attaining age 35 - that is, before you have had the option to make a waiver - at least half of the full current value of the annuity accumulation is payable automatically to your surviving spouse in a single sum, or under one of the inco me options offered by the fund sponsor. If you terminate employment before age 35, the period for waiving the pre-retirement survivor benefit begins no later than the date of termination. The waiver also may be revoked during the same period.

Rules Applicable to Fidelity

If you die after benefit payments have begun, death benefits, if any, will be paid in accordance with the form of payment in effect at the time of your death.

If you are married and you die before payments begin, your spouse may elect to receive payments in a single sum or in substantially equal payments over his or her lifetime.

If you are married and your spouse has consented to the designation of another beneficiary, that beneficiary may elect to receive payments in a single sum or in substantially equal payments over his or her lifetime. Such consent by your spouse will no t be valid unless it is in writing, is notarized, and filed with Fidelity. If you are not married, your designated beneficiary may elect to receive payments in a single sum or in substantially equal payments over his or her lifetime.

Rules Applicable to TIAA, CREF and Fidelity

All spousal consents must be in writing and either notarized or witnessed by a plan representative and contain an acknowledgment by your spouse as to the effect of the consent. All such consents shall be irrevocable. A spousal consent is not required i f you can establish to the institution's satisfaction that you have no spouse or that he or she cannot be located. Unless a Qualified Domestic Relations Order (QDRO), as defined in Code Section 414(p), requires otherwise, your spouse's consent shall not b e required if you are legally separated or you have been abandoned (within the meaning of local law) and you have a court order to such effect.

The spousal consent must specifically designate the beneficiary or otherwise expressly permit designation of the beneficiary by you without any further consent by your spouse. If a designated beneficiary dies, unless the express right to designate a ne w one has been consented to, a new consent is necessary.

A consent to an alternative form of benefit must either specify a specific form or expressly permit designation by you without further consent.

A consent is only valid so long as your spouse at the time of your death, or earlier benefit commencement, is the same person as the one who signed the consent.

If a QDRO establishes the rights of another person to your benefits under this Plan, then payments will be made according to that order. A QDRO may preempt the usual requirements that your spouse be considered your primary beneficiary for a portion of the accumulation.

Is There A Retirement Income Option That Allows Me To Receive Income While Preserving My Accumulation? Return to Top

Yes, for TIAA Participants between ages 55 and 69 ½ with a TIAA accumulation of at least $10,000. With the TIAA Interest Payment Retirement Option (IPRO), you can receive monthly payments equal to the interest (guaranteed plus dividends) that would ot herwise be credited to your TIAA annuity. Payments will be made at the end of each month. Your accumulation is not reduced while you are receiving interest payments.

Payments under the IPRO will consist of the contractual interest rate (currently 3 percent), plus dividends as declared by TIAA's Board of Trustees. Dividends are declared each March for a 12-month period and are not guaranteed for the future. If you elect the IPRO, these rates will be used to determine your monthly payment rather than be credited to your annuities.

Interest payments made under the IPRO must continue for at least 12 months. Once you start to receive interest income payments, you must continue receiving them until you begin receiving your accumulation under an annuity income option. Usually, you may delay beginning your annuity income benefits as late as permitted under federal law. When you do begin annuity income from your TIAA accumulation, you may choose any of the lifetime annuity income options available under your TIAA contracts.

If you die while receiving interest payments under the IPRO, your beneficiary will receive the amount of your starting accumulation, plus interest earned but not yet paid. If you die after you have begun to receive your accumulation as an annuity, you r beneficiary will receive the benefits provided under the annuity income option you have selected.

May I Receive A Portion Of My Accumulation In A Lump Sum Under A Life Annuity Option? Return to Top

Yes, if you choose the Retirement Transition Benefit Option. This option lets you receive a one-sum payment of up to 10 percent of your TIAA and CREF accumulations at the time you start to receive your income as an annuity. The one-sum payment cannot exceed 10 percent of each account's accumulation then being converted to annuity payments. This is not available through Fidelity.

What Happens To My TIAA-CREF Annuities If I Terminate Employment Before Retirement? Return to Top

Your Retirement Annuities remain in force, including all benefits purchased by the institution's contributions. You do not forfeit any of the benefits that have already been set aside for you.

If you relocate to one of the many other institutions with a TIAA-CREF funded retirement plan, you may be able to participate in that institution's plan immediately. Even if you do not participate in another institution's retirement plan, or cease con tributions to your annuities for another reason, your accumulations will continue to be credited with the same interest and dividends as they would have been had you continued contributions. Accumulations in the CREF Accounts will continue to participate in the market experience of those Accounts. When you terminate employment, you will continue to have the flexibility to make CREF transfers any time before beginning income, or to start receiving annuity income from the broad range of income options off ered by the Fund sponsors.

Alternatively, under certain circumstances, you may receive your Retirement Annuity accumulation in a single sum through Repurchase. At the time you request to have your Retirement Annuities repurchased, you must have terminated employment. All the f ollowing conditions must also apply at the time you request a Repurchase.

  1. If your oldest TIAA or CREF Retirement Annuity was issued on or after January 1, 1992:
    1. The total accumulation in all your TIAA Retirement Annuities (including contributions to Retirement Annuities under plans of other employers) is $2,000 or less.
    2. You do not have a TIAA Transfer Payout Annuity (TPA) in effect.
    3. The total accumulation attributable to Contributions under this Plan in all TIAA and CREF Retirement Annuities is not more than $4,000.
    • Upon Repurchase, your entire accumulation will be payable by TIAA-CREF to you in a lump sum. This will be in full satisfaction of your rights and your spouse's rights to retirement or survivor benefits.
  2. If your oldest TIAA or CREF Retirement Annuity was issued by December 31, 1991:
    1. The conditions specified in (a) above are met, or
    2. Annuity income has not begun, and all the following conditions are met:
      1. The total value of your TIAA and CREF Retirement Annuities is $2,000 or less, or your oldest TIAA or CREF Retirement Annuity contract is not more than five years old.
      2. You are neither employed by nor moving to an institution having a TIAA-CREF funded retirement plan in which you will be eligible to participate. Employment includes sabbaticals or other leaves of absence.
    • Upon Repurchase, the entire accumulation will be payable by TIAA-CREF to you in a lump sum. This will be in full satisfaction of your rights and your spouse's rights to retirement or survivor benefits.

What If I Die Before Starting To Receive Benefits? Return to Top

If you die before beginning retirement benefits, the full current value of your annuity accumulation is payable as a death benefit. You may choose one or more of the options listed in your annuity contracts for payment of the death benefit, or you may leave the choice to your beneficiary. The payment options include:

  • Income for the lifetime of the beneficiary with payments ceasing at his or her death.
  • Income for the lifetime of the beneficiary, with a minimum period of payments of either 10, 15, or 20 years, as selected.
  • Income for a fixed period of not fewer than two nor more than 30 years, as elected, but not longer than the life expectancy of the beneficiary.
  • A single sum payment. A single sum must be paid if your beneficiary is your estate, a corporation, association or other entity that is not a natural person.
  • A minimum distribution option for beneficiaries age 70 ½ or older. This option pays the required federal minimum distribution each year.
  • The accumulation may be left on deposit for later payment under any of the options for a period not greater than one year.

Federal tax law puts limitations on when and how beneficiaries receive their death benefits. TIAA-CREF or Fidelity will notify your beneficiary of the applicable requirements at the time he or she applies for benefits.

You should review your beneficiary designation periodically to make sure that the person you want to receive the benefits is properly designated. You may change your beneficiary by completing the "Designation of Beneficiary" form available from TIAA-C REF or Fidelity. If you die without having named a beneficiary, your spouse will automatically receive half of your accumulation. Your estate will receive the other half. If there is no spouse, your estate receives the entire accumulation.

 

PART II - INFORMATION ABOUT YOUR PLAN Return to Top
 
What Funding Vehicles Are Available Under The Plan? Return to Top

Contributions may be invested in one or more of the following funding vehicles which are currently available under this Plan:

  1. Teachers Insurance and Annuity Association (TIAA):
    • TIAA Retirement Annuity
  2. College Retirement Equities Fund (CREF):
    • CREF Retirement Annuity
    • Stock Account
      • Money Market Account
      • Bond Market Account
      • Social Choice Account
      • Global Equities Account
      • Growth Account
    • Index Equity Account
  3. Fidelity Investments - Investment options include a group of Fidelity funds. Your Plan Administrator will provide you with the list of these funds. If you contribute any additional premium amounts to your own individual tax deferred account, you may invest in any of Fidelity's funds.

The College's current selection of fund sponsors and funding vehicles is not intended to limit future additions or deletions of fund sponsors and funding vehicles. You will be notified of any additions or deletions.

How Do The Retirement Contracts Work? Return to Top

TIAA: Contributions to a TIAA Retirement Annuity are used to purchase a contractual or guaranteed amount of future retirement benefits for you. Once purchased, the guaranteed benefit of principal plus interest cannot be decreased, but it can be increased by dividends. Once you begin receiving annuity income, your accumulation will provide an income consisting of the contractual, guaranteed amount plus dividends that are declared each year and whi ch are not guaranteed for the future. Dividends may increase or decrease, but changes in dividends are usually gradual.

For a recorded message of the current interest rate for contributions to TIAA, call 1 800 223-1290.

CREF: You have the flexibility to accumulate retirement benefits in any of the CREF variable annuity accounts approved for use under the Plan, as indicated above. Each account has its own investment objective and port folio of securities. Contributions to a CREF account are used to buy Accumulation Units, or shares of participation in an underlying investment portfolio. The value of the Accumulation Units changes each business day. For more information on the CREF A ccounts, you should refer to the CREF prospectus.

For a recorded message of the latest Accumulation Unit Values for the CREF Accounts and the seven-day yield for the CREF Money Market Account, call 1- 800-223-1290. The recording is updated each business day.

Fidelity. Contributions to a Fidelity account are used to buy shares of participation in underlying investment portfolios. The value of the shares changes each business day. There is no guaranteed income associate d with this investment. The growth of your account depends on the investment experience of the portfolios in which you are invested. For more information on Fidelity accounts, you should refer to the prospectus for the portfolio in which you are interes ted in investing or call 1-800-343-0860.

How Do I Allocate my Contributions? Return to Top

You may allocate contributions among the funding vehicles in any whole-number proportion, including full allocation to any funding vehicle

.

TIAA-CREF. You specify the percentage of contributions to be directed to TIAA or the CREF Accounts or both on the "Application for Retirement Annuity Contracts" when you begin participation. You may change your all ocation of future contributions at any time after participation begins by calling the Automated Telephone Service toll free at 1-800-842-2252. The automated service is available between the hours of 8:00 a.m. and 8:00 p.m. Eastern time, Monday through Fr iday. When you receive your Retirement Annuity contracts, you'll also be sent a Personal Identification Number (PIN). The PIN enables you to change your allocation by using the Automated Telephone Service. For more information on allocations, ask for t he TIAA-CREF booklet Guiding Your Retirement Savings.

Fidelity. You may specify the percentage contributions to be allocated to the Fidelity accounts on the "Account Application Form" when you begin participation. You may change your allocation of future contributions at any time by calling 1-800-343-0860.

May I Transfer Accumulations? Return to Top

Accumulations may be transferred among the CREF and Fidelity Accounts. Accumulations in the CREF and Fidelity Accounts also may be transferred to a TIAA annuity. Complete transfers may be made at any time. Partial transfers may be made from a CREF or Fidelity Account to a TIAA annuity, or among CREF or Fidelity Accounts at any time as long as at least $1,000 is transferred each time. Transfers may be made until the date annuity income begins. There is no charge for transferring a ccumulations.

You may complete CREF transfers either by phone or in writing. CREF transfers, as well as premium allocation changes, will be effective as of the close of the New York Stock Exchange (usually 4:00 p.m. Eastern time) on the day the instructions are rec eived by CREF, unless you choose the last day of the current month or any future month. Instructions received after the close of the New York Stock Exchange are effective as of the close of the Stock Exchange on the next business day. The toll-free numb er to reach the Automated Telephone Service is 1-800-842-2252.

Fidelity transfers may be made by calling 1-800-343-0860. Transfers will be effective as of the close of the New York Stock Exchange (usually 4:00 p.m. Eastern time) on the day the instructions are received by Fidelity, unless you choose the last day of the current month or any future month. Instructions received after the close of the New York Stock Exchange are effective as of the close of the Stock Exchange on the next business day.

TIAA accumulations may be transferred to any of the CREF accounts through the Transfer Payout Annuity (TPA). Transfers will be made in substantially equal annual amounts over a period of 10 years. Transfers made under the TPA contract are subject to the terms of that contract. The minimum transfer from TIAA to a CREF account is $10,000 (or the entire accumulation if it totals less than $10,000).

Alternatively, if your total TIAA accumulation is $2,000 or less, you can transfer your entire TIAA accumulation in a single sum to any of the CREF or Fidelity accounts. If you have an existing TIAA TPA contract in force, you will not be eligible to m ake this single sum TIAA to CREF/Fidelity transfer. Instead, you must transfer your TIAA accumulation based on the 10 year TPA.

May I Begin My Retirement Income At Different Times? Return to Top

Yes. Once you decide to receive your benefits as income, you have the flexibility to begin income from different funding vehicles on different dates, subject to any restrictions. You may begin income from each TIAA-CREF annuity or A ccount on more than one date provided that you begin income from at least $10,000 of accumulation from each annuity or Account begun on that date.

May I Receive My Retirement Accumulations Under Different Income Options? Return to Top

Yes, under current administrative practice, you can elect to receive income from your TIAA and CREF annuities and Fidelity account under more than one income option to meet your specific retirement needs. However, with respect to yo ur TIAA and CREF annuities you must begin income from at least $10,000 of accumulation under each option.

What Information Do I Regularly Receive About My Annuities? Return to Top

TIAA and CREF. The annual Annuity Benefits Report that TIAA-CREF sends you shows the total accumulation value at year-end for your Retirement Annuities, which is the amount of death benefits your s pouse or other beneficiary would have received on that date. It also includes an illustration of the annuity income you would receive at retirement under certain stated assumptions as to future premiums, your retirement age, the income option and payment method selected, TIAA dividends, and the investment experience of the CREF Accounts. These factors affect the amount of your retirement income.

TIAA-CREF also sends you a Quarterly Confirmation of Transactions. This report shows the accumulation totals, a summary of transactions made during the period, TIAA interest credited, and the number and value of CREF accumulation units. You also may receive Premium Adjustment Notices. These notices summarize any adjustments made to your annuities and are sent at the time the adjustments are processed.

Once a year, you will receive the TIAA-CREF Annual Report. The Annual Report summarizes the year's activity, including details on TIAA and CREF investments, earnings, and investment performance.

Fidelity. Fidelity sends you a Quarterly Confirmation of Transactions. This report shows your contributions, a summary of transactions made during the period, and interest credited.

Once a year, you will receive the Fidelity Annual Report. The Annual Report summarizes the year's activity, including details on Fidelity investments, as well as the earnings and performance of your investments.

May I Rollover My Accumulations? Return to Top

If you are entitled to receive a distribution from your contract which is an eligible "rollover distribution," you may rollover all or a portion of it either directly or within 60 days after receipt into another retirement plan or int o an IRA. An eligible rollover distribution, in general, is any cash distribution other than an annuity payment, a minimum distribution payment or a payment which is part of a fixed period payment over ten or more years. The distribution will be subject to a 20 percent federal withholding tax unless it is rolled over directly into another retirement plan or into an IRA - this process is called a "direct" rollover.

If you have the distribution paid to you, then the plan must withhold 20 percent even if you intend to roll over the money into another retirement plan or into an IRA within 60 days. To avoid withholding, instruct the fund sponsor to directly roll over the money for you.

 
PART III - ADDITIONAL INFORMATION Return to Top
 
How Is The Plan Administered? Return to Top

Lafayette College, located at Markle Hall, Easton, Pennsylvania 18042, (610) 250-5060, is the Plan Administrator of the Plan. The College has designated the Vice President for Human Resources to act on behalf of the Plan Administrato r. The Plan Administrator is responsible for enrolling participants, forwarding Plan contributions for each participant to the fund sponsors selected, and performing other duties required for operating the Plan.

The Plan Administrator will be the sole judge of the application and interpretation of the Plan, and will have the discretionary authority to construe the provisions of the Plan, to resolve disputed issues of fact, and to make determinations regarding eligibility for benefits. The decisions of the Plan Administrator in all matters relating to the Plan (including, but not limited to, eligibility for benefits, plan interpretations, and disputed issues of fact) will be final and binding on all parties an d generally will not be overturned by a court of law.

How May I Get More Information About The Plan? Return to Top

Requests for information concerning eligibility, participation, contributions, or other aspects of operating the Plan should be in writing and directed to the Office of Human Resources. Requests for information concerning the Plan an d its terms, conditions and interpretations may be directed in writing to: 

                Office of Human Resources
                Lafayette College
                Markle Hall
                Easton, Pennsylvania  18042

What Is The Plan's Claim Procedure? Return to Top

The following rules describe the claims procedure under the Plan:

  • Filing a claim for benefits - A claim or request for plan benefits is filed when the requirements of a reasonable claim-filing procedure have been met. A claim is considered filed when a written or oral communicat ion is made to the Plan Administrator.
  • Processing the claim - The Plan Administrator must process the claim within 90 days after the claim is filed. If an extension of time for processing is required, written notice must be given to you before the end of the initial 90-day period. The extension notice must indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render its final decision. In no event can the extension period exceed a period of 90 days from the end of the initial 90-day period.
  • Denial of claim - If a claim is wholly or partially denied, the Plan Administrator must notify you within 90 days following receipt of the claim (or 180 days in the case of an extension for special circumstances). The notification must state the specific reason or reasons for the denial, specific references to pertinent plan provisions on which the denial is based, a description of any additional material or information necessary to perfect the claim, and appropri ate information about the steps to be taken if you wish to submit the claim for review. If notice of the denial of a claim is not furnished within the 90/180-day period, the claim is considered denied and you must be permitted to proceed to the review sta ge.
  • Review procedure - You or your duly authorized representative has at least 60 days after receipt of a claim denial to appeal the denied claim to an appropriate named fiduciary or individual designated by the fiducia ry and to receive a full and fair review of the claim. As part of the review, you or your representative must be allowed to see all plan documents and other papers that affect the claim and must be allowed to submit issues and comments and argue against the denial in writing. The request for review should include appropriate issues, comments, and reasons why you or your representative believe the claim should not have been denied. The request must set forth all facts and all legal theories supporting t he request. Any facts and theories not raised in the review process will be deemed waived.
  • Decision on review - The Plan must conduct the review and decide the appeal within 60 days after the request for review is made. If special circumstances require an extension of time for processing (such as the nee d to hold a hearing if the plan procedure provides for such a hearing), you must be furnished with written notice of the extension, which can be no later than 120 days after receipt of a request for review. The decision on review must be written in clear and understandable language and must include specific reasons for the decision as well as specific references to the pertinent plan provisions on which the decision is based. For a plan with a committee or board of trustees designated as the appropriate named fiduciary, a decision does not have to be made within the 60-day limit if the committee or board meets at least four times a year (about every 90 days). Instead, it must be made at the first meeting after the request is filed, except that when a r equest is made less than 30 days before a meeting, the decision can wait until the date of the second meeting following the plan's receipt of request for review. If a hearing must be held, the committee can wait to decide until the first meeting after th e hearing. However, it must notify you and explain the delay, which can be no later than the third meeting of the committee or board following the plan's receipt of the request for review. If the decision on review is not made within the time limits spe cified above, the appeal will be considered denied. If the appeal is denied, in whole or in part, you have a right to file suit in a state or federal court.

What Are My Rights Under The Law? Return to Top

As a Participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended (ERISA). ERISA provides that all Plan Participants are entitled to:

  1. Examine, without charge, at the Plan Administrator's office all documents, including insurance contracts, and copies of all documents filed by the Plan with the U.S. Department of Labor, such as annual reports and Plan descriptions.
  2. Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Administrator may make a reasonable charge for the copies.
  3. Receive a summary of the Plan's annual financial report. The Plan Administrator is required by law to furnish you with a summary of the Plan's financial report.
  4. Obtain a statement telling whether you have a right to receive a pension at normal retirement age and if so, what your benefits would be at normal retirement age if you stop working under the Plan now. If you do not have the right to a pension, the statement will tell you how many more years you have to work to get a right to a pension. This statement must be requested in writing and is not required to be given more than once a year. The Plan must provide the statement free of charge.

In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for operating the plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the intere st of you and other Plan Participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your ri ghts under ERISA. If your claim for a pension benefit is denied in whole or in part, you must receive a written explanation of the reason for the denial. You have the right to have the Plan review and reconsider your claim.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file a suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $100 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator. If you have a claim for benefits that is denied or ignore d in whole or in part, you may file suit in a state or federal court.

If the Plan fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay co urt costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees; for example, if it finds your claim is frivolous. If you have an y questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Depart ment of Labor, listed in the telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.

Is The Plan Insured By The Pension Benefit Guaranty Corporation (PBGC)? Return to Top

No. Since the Plan is a defined contribution plan, it is not insured by the PBGC. The PBGC is the government agency that guarantees certain types of benefits under covered plans.

Who Is The Agent For Service Of Legal Process? Return to Top

The agent for service of legal process is: The Vice President for Human Resources, Lafayette College, Markle Hall, Easton, Pennsylvania 18042, (610) 250-5060.

This document was prepared for the employees of Lafayette College. If there is any ambiguity or inconsistency between the terms of the Plan Document, the individual annuity contracts or the certificates and those of this Summary Plan Description, the terms of the annuity contracts or certificates are final, unless they violate ERISA or other applicable tax law.

This document must be accompanied or preceded by a current prospectus. Copies of the prospectus may be obtained by calling TIAA and CREF toll free at 1-800-842-2733 or Fidelity toll free at 1-800-343-0860.

Employer Identification Number: 24-0795686

Plan Number: 001

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