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SUMMARY PLAN DESCRIPTION
CONTINUUM HEALTH PARTNERS, INC.
403(b) PLAN
(Employer Contribution and Salary Reduction Contribution)
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TABLE OF CONTENTS
Page
INTRODUCTION .......................................................................................................................... 1
1. HOW DOES THE PLAN WORK? .................................................................................... 2
2. WHAT ARE THE ELIGIBILITY REQUIREMENTS TO PARTICIPATE IN THE PLAN?...................................................................................................................... 3
3. HOW DO I CONTRIBUTE TO THE PLAN? ................................................................... 4
4. HOW MUCH MAY YOU CONTRIBUTE TO THE PLAN? ........................................... 4
5. WHAT IF I EXCEED THE PERMITTED ELECTIVE DEFERRAL LIMIT? ................. 6
6. MUST I CONTRIBUTE TO THE PLAN? ........................................................................ 7
7. HOW MUCH WILL THE EMPLOYER CONTRIBUTE TO MY ACCOUNT? ....................................................................................................................... 7
8. MAY I MAKE ROLLOVER CONTRIBUTIONS TO THE PLAN? ................................ 8
9. WHAT DOES IT MEAN TO BE VESTED IN MY ACCOUNT? .................................... 8
10. WHAT IS A BREAK IN SERVICE? ................................................................................. 9
11. HOW ARE THE FUNDS IN MY ACCOUNT INVESTED? .......................................... 10
12. ARE THERE INVESTMENT CHARGES? ..................................................................... 11
13. MAY I TRANSFER BETWEEN THE INVESTMENT FUNDS UNDER THE PLAN?...................................................................................................................... 12
14. HOW IS MY RETIREMENT BENEFIT DETERMINED? ............................................ 13
15. WHEN MAY I COMMENCE TO RECEIVE BENEFITS? ............................................ 13
16. IN WHAT FORM WILL I RECEIVE MY BENEFITS? ................................................. 15
17. WHAT OPTIONAL FORMS OF BENEFITS ARE AVAILABLE? .............................. 16
18. WHAT IF I DIE BEFORE COMMENCEMENT OF MY BENEFITS? ......................... 17
19. WHAT IF I DIE AFTER COMMENCEMENT OF MY BENEFITS? ............................ 19
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20. MAY I WITHDRAW ANY AMOUNTS FROM MY ACCOUNT WHILE IAM STILL EMPLOYED? ............................................................................................... 19
21. MAY I BORROW FROM THE PLAN? .......................................................................... 21
22. WHAT ARE THE REQUIREMENTS FOR SPOUSAL CONSENT? ............................ 23
23. DO I STILL RECEIVE SOCIAL SECURITY BENEFITS IF IPARTICIPATE IN THE PLAN? ..................................................................................... 24
24. MAY I ASSIGN MY PLAN BENEFITS? ....................................................................... 25
25. IS THE PLAN AN EMPLOYMENT CONTRACT? ....................................................... 25
26. MAY THE PLAN BE AMENDED OR TERMINATED?............................................... 26
27. ARE BENEFITS UNDER THE PLAN INSURED BY THE PENSIONBENEFIT GUARANTY CORPORATION? .................................................................. 26
28. WHAT FEDERAL INCOME TAXES ARE APPLICABLE TO THE PLAN? .............. 26
29. CLAIMS PROCEDURE ................................................................................................... 26
30. REPRESENTATIVE RESPONSIBLE FOR PROVIDING INVESTMENTINFORMATION............................................................................................................... 30
31. ADDITIONAL INFORMATION ON THE CONTINUUM HEALTHPARTNERS, INC. 403(b) PLAN AS REQUIRED BY THE EMPLOYEERETIREMENT INCOME SECURITY ACT OF 1974 ................................................... 31
32. YOUR RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOMESECURITY ACT OF 1974 .............................................................................................. 32
GLOSSARY................................................................................................................................. 35
EXHIBIT A.................................................................................................................................... 1
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INTRODUCTION
The Continuum Health Partners, Inc. 403(b) Plan (the “Plan”) is maintained to help you
with your retirement by providing you and your Spouse and Beneficiaries with retirement
income to supplement your other retirement savings and benefits from Social Security and to
provide you with a means to save on a pre-tax basis for retirement by permitting you to make
pre-tax Salary Reduction Contributions to the Plan.
This Summary Plan Description (“SPD”) provides you with an explanation of your
benefits under the Plan and the requirements to receive them. The Plan, which was effective as
of January 1, 2005 is the resulting Plan of the merger of the St. Luke’s – Roosevelt Hospital
Center Section 403(b) Tax Sheltered Annuity Plan and the Long Island College Hospital 403(b)
Retirement Plan into the Beth Israel Medical Center Tax Deferred Annuity Retirement Plan. In
connection with the combination of the Continuum hospitals with Mount Sinai Health System,
Inc., Beth Israel assumed sponsorship of the Plan, effective January 1, 2014. The following
pages will summarize the Plan’s provisions in effect as of November 1, 2013 and as amended
thereafter. If your Termination of Employment occurred prior to November 1, 2013, then please
consult the plan document for the Plan in which you participated or the applicable SPD in effect
at that time.
We urge you to read the following material carefully. We believe that you will find this
SPD a valuable tool when you have questions about the Plan. Please keep this SPD handy for
easy reference. If you have any questions, call the Benefits Office at (212) 523-5193. For
definitions of the terms used in this SPD, see the Glossary.
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There are several documents which officially control the provisions of the Plan and spell
out the exact terms of your rights. The primary document is Continuum Health Partners, Inc.
403(b) Plan which will be referred to as the “Plan” in this booklet. In addition, there are
contracts and/or agreements with certain funding agents, including Fidelity Investments
Institutional Services Company, Inc. (“Fidelity”) pursuant to which contributions under the Plan
are invested.
Beth Israel as the Plan Administrator, has appointed a Committee (the “Committee”) to
administer the Plan on its behalf. The Committee will exercise supervisory control over the
Plan’s operation, including determination of the eligibility of employees to receive benefits,
computation of the amount of benefit payments, and authorization for payment of such benefits.
This Summary Plan Description (“SPD”) sets forth the provisions of the Plan in effect as
of January 1, 2005 and thereafter. The primary purpose of this SPD is to provide you with a
non-technical explanation of the most important features of the Plan. However, if there is any
inconsistency between the Plan document and this SPD the provisions of the Plan document will
govern. We urge you to read this SPD carefully so that you will understand the Plan as it applies
to you and your family. We suggest that you keep this SPD handy for easy reference.
1. HOW DOES THE PLAN WORK?
If you are an Employee, you are permitted to contribute, on a voluntary basis, a
percentage of your Compensation pursuant to a Salary Reduction Agreement to the Account
maintained for you by a Funding Agent. In addition, the Employer may contribute on your
behalf to the Plan. You may enroll in the Plan by visiting plan.fidelity.com/CHP or calling
Fidelity at 1-800-343-0860 and completing the necessary salary reduction process.
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Upon your retirement, the benefit you will receive will be based upon the amount in your
Account and the payment option you select.
2. WHAT ARE THE ELIGIBILITY REQUIREMENTS TO PARTICIPATE IN THE PLAN?
All Employees, other than leased employees, are permitted (but not required) to make
Salary Reduction Contributions to the Plan immediately following their initial date of
employment. Independent contractors and agents are not considered employees for this purpose.
During any period that you are classified as either an independent contractor or you
provide services to the Employer through another entity, you will not be eligible to participate in
this Plan (even if you are later retroactively reclassified as an employee during all or any part of
such period pursuant to applicable law or otherwise).
In addition, if you are considered an Eligible Employee, you will also be eligible to
receive Employer Contributions as described in Question 7, commencing with the first of the
month coinciding with or immediately following your completion of one (1) Year of Service. If
you are a member of the Special and Superior Officers Benevolent Association, you will be
eligible to receive Employer Contributions as described in Question 7 commencing with the first
day of the month following your one year anniversary of continuous employment (excluding any
period during which you are on a leave of absence) with St. Luke’s Roosevelt Hospital Center.
If you are an Eligible Employee who was hired between April 30, 2010 and December 31, 2010
and you were employed by St. Vincent’s Catholic Medical Center, Aptium W. New York, Inc. or
Radiology Oncology Medical Practice of St. Vincent’s, PC on April 29, 2010, you became
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eligible to receive Employer Contributions as described in Question 7 after you completed one
Hour of Service.
To participate in the Plan, you must follow the enrollment procedures of the applicable
Funding Agent.
3. HOW DO I CONTRIBUTE TO THE PLAN?
To make contributions to the Plan, you must enter into a Salary Reduction Agreement
with the Employer authorizing the Employer to reduce your Compensation on a pre-tax basis and
specifying the amount of the reduction (referred to as “Salary Reduction Contributions”) to be
contributed on your behalf to the Account maintained for you by a Funding Agent. The Funding
Agent will provide you with the appropriate procedure for entering into a Salary Reduction
Agreement. You may enter into a new Salary Reduction Agreement at any time, to be effective
as of the first day of the following payroll period (in accordance with notice procedures
established by the Employer). Subject to certain legal limitations, Salary Reduction
Contributions are not treated as income for federal income tax purposes until such later time as
you receive them.
4. HOW MUCH MAY YOU CONTRIBUTE TO THE PLAN?
There are several legal limits on the maximum amount that you may contribute to the
Plan. The Code limits the amount you may contribute to the Plan on a pre-tax basis pursuant to a
Salary Reduction Agreement in any calendar year. For 2014, the limit is $17,500 and will be
adjusted by the Secretary of the Treasury for cost of living from time to time. If you also make
other salary deferrals under any other 403(b) or 401(k) plan (whether maintained by the
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Employer or another employer), such amounts will reduce the amount of your permitted Salary
Reduction Contributions under the Plan.
In addition, if you have attained (or will attain) age 50 before the end of the applicable
Plan Year and you are fully contributing to the Plan such that you will reach the maximum
permitted elective deferral to the Plan for the applicable Plan Year, you will be eligible to make a
catch-up contribution beyond the permitted elective deferral limit. For 2014, this additional
amount will be $5,500 and will be adjusted by the Secretary of the Treasury for cost of living
from time to time. Such catch-up contribution will not be taken into account in calculating your
Section 415 Limitation (described below).
If you have completed 15 Years of Service with the Employer, then the permitted annual
contribution amount may be increased by as much as $3,000. The amount that you may
contribute in excess of the permitted elective deferral limit is the least of: (i) $3,000; (ii) $15,000
minus all amounts in excess of the permitted elective deferral limit that were allowed to be
excluded from gross income in prior years due to this provision; or (iii) $5,000 multiplied by
your years of service, minus all prior calendar year elective contributions.
You may not contribute an amount pursuant to a Salary Reduction Agreement that
together with contributions by any employer would exceed the Section 415 Limitation, which is
the lesser of $51,000 (as adjusted) or one hundred percent (100%) of your taxable gross earnings
during the calendar year.
There are special rules for combining limitations if you participate in any other pension
plan of the Employer or any other organization. In addition, in certain instances you may vary
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your measuring year from the calendar year. If you are a participant in another plan or have
varied your measuring year, you should consult with the Plan Administrator and your tax
advisor.
Notwithstanding any provisions of this SPD or the Plan to the contrary, contributions,
benefits and service credit with respect to Qualified Military Service will be provided in
accordance with applicable law.
5. WHAT IF I EXCEED THE PERMITTED ELECTIVE DEFERRAL LIMIT?
If your aggregate Salary Reduction Contributions and other elective deferrals for the
calendar year to the Plan and any other tax-qualified plan, whether maintained by the Employer
or another employer, exceed the permitted elective deferral limit (in most cases, $17,500 for the
year 2014), you can avoid the double taxation of the contributions at both the time of
contribution and the time of withdrawal by, not later than March 1 following the close of the
calendar year, allocating such excess deferrals among the Plan and the other plans under which
the deferrals were made and notifying the Plan and each other plan of the portion allocated to it.
In the event that the Employer receives such notice from you on a timely basis, the Plan
will distribute to you, prior to April 15th, the excess allocated to it plus any income allocable to
such amount. In the event that the Employer does not receive such notice from you on a timely
basis, the Plan will distribute to you, by April 15th, any excess deferrals based only on
contributions to the Plan plus any income allocable thereto, but without regard to other elective
deferrals by you to other plans.
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6. MUST I CONTRIBUTE TO THE PLAN?
You are permitted, but not required, to make Salary Reduction Contributions to the Plan
pursuant to a Salary Reduction Agreement. Depending upon the Funding Agent, the Salary
Reduction Agreement may be completed either on a paper form or on-line via the internet. You
should contact your Funding Agent regarding details on the Salary Reduction Agreement
requirements. If you are not an Eligible Employee as defined in the glossary of this SPD, you
will be eligible to make Salary Reduction Contributions to the Plan, but you will not be eligible
for any Employer contributions.
7. HOW MUCH WILL THE EMPLOYER CONTRIBUTE TO MY ACCOUNT?
If you are an Eligible Employee, the Employer will make certain contributions on your
behalf to the Plan. The definition of Eligible Employee is included in the glossary of this SPD.
If you are an Eligible Employee, the Employer will contribute, on a periodic basis, as an
Employer Contribution to your Account (to be invested with a Funding Agent) the amount set
forth on Exhibit A, provided, however, that you are still employed by the Employer and maintain
an Account under the Plan.
In addition, if you are an Eligible Employee, the Employer will contribute to your
Account, on a periodic basis, an amount equal to your Salary Reduction Contribution for such
period up to 3% of your Compensation (a “Matching Contribution”). In any case, the Employer
will make a Matching Contribution in an additional amount, if any, as of the last day of the
applicable Plan Year, of up to 3% of your Compensation contributed by you during the Plan
Year less any Matching Contributions previously made on your behalf with respect to such Plan
Year.
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Notwithstanding the foregoing, if you receive a distribution as a result of an excess
deferral (as described in Question 5), then the portion of the Matching Contribution made with
regard to such excess deferral (plus earnings) will be forfeited.
The Code limits the amount of Matching Contributions that may be made to the Plan on
behalf of members of the “Highly Compensated Group” of Participants. The law requires that
the average of the amounts contributed for members of the “Highly Compensated Group” cannot
exceed the average of the amounts contributed for Participants not in the “Highly Compensated
Group” by more than a certain amount specified under the Code. You will be notified if you are
affected by this limitation.
8. MAY I MAKE ROLLOVER CONTRIBUTIONS TO THE PLAN?
Subject to certain requirements and applicable law, the Plan permits the acceptance of
Rollover Contributions. A Rollover Contribution generally consists of an amount distributed
from another 403(b) plan, tax-qualified plan, governmental Section 457 plan or an individual
retirement account or annuity (“IRA”). However, the Plan will not accept any rollovers that
consist of after-tax contributions.
9. WHAT DOES IT MEAN TO BE VESTED IN MY ACCOUNT?
Vesting refers to your nonforfeitable right to all or part of the balance of your accounts
under the Plan. You are always fully and immediately vested in all Salary Reduction
Contributions and Rollover Contributions, if any, made under the Plan. If you were hired on or
after November 1, 2013, you will become vested in the Employer Contributions made on your
behalf upon your completion of three Years of Service or, if earlier, upon your death, Disability
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or attainment of age 65. If your were hired prior to November 1, 2013, you will be fully and
immediately vested in the Employer Contributions.
If you terminate employment prior to becoming vested in your Employer Contributions,
your Employer Contributions will be forfeited, and you will not be entitled these Employer
Contributions unless such forfeited amounts are restored. Forfeited Employer Contributions will
be restored if, after your Termination of Employment, you again become employed by an
Employer or associated company (as defined under the Plan) before incurring five consecutive
one-year Breaks in Service.
10. WHAT IS A BREAK IN SERVICE?
A one-year Break in Service occurs if your continuous service with an Employer or
associated company (as defined under the Plan) is broken due to (i) your retirement, (ii) your
Termination of Employment, or (iii) your failure to complete more than 500 Hours of Service
during any Anniversary Year.
If you experience a Break in Service, your prior Years of Service will be reinstated if
you were fully vested prior to the Break in Service or if the number of consecutive one-year
Breaks in Service does not exceed the greater of (i) 5 or (ii) the aggregate number of Years of
Service credited to you before the Break in Service. If you are not a Participant at the time of
your Break in Service, you will have to satisfy the eligibility requirements for participation in the
Plan prior to becoming a Participant.
For purposes of determining whether a one-year Break in Service has occured, Hours of
Service will include hours during which you are on an authorized leave of absence and will
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include up to 501 Hours of Service while you are on a Childrearing Absence. During a
Childrearing Absence such Hours of Service will be credited in an amount equal to the Hours of
Service you would otherwise have been credited with or, if this cannot be determined, eight
Hours of Service for each normal workday of absence. Hours of Service during a Childrearing
Absence will be credited to the Anniversary Year in which the Childrearing Absence begins only
to the extent required to prevent a one-year Breach in Service, and in all other cases will be
credited to the following Anniversary Year.
11. HOW ARE THE FUNDS IN MY ACCOUNT INVESTED?
When you enroll in the Plan (as described in Question 1), you must select the Investment
Fund(s) in which you want your Account and future contributions on your behalf invested. You
may allocate your Account among the various available Investment Funds, provided your
allocations are in whole percentages. You may subsequently change this allocation with regard
to future contributions, subject to rules of the Funding Agent(s) and the Employer. You may
select and change your Investment Funds(s) and allocations by telephoning the Funding Agent at
1-800-343-0860 or logging on to plan.fidelity.com/CHP.
The available Investment Funds from which you may choose to invest may be changed
from time to time. From time to time, the Employer may designate additional investment
alternatives, withdraw investment alternatives or change the designation of investment
alternatives. If any are changed, you will be notified.
The Investment Funds available under the Plan and a description of these Investment
Funds may be found by accessing plan.fidelity.com/CHP. Each Investment Fund is also
described in a prospectus or other materials that you will receive. You are urged to read the
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relevant prospectus or other materials to understand the nature of the fund(s) of interest to you
prior to making any investment selection.
If you fail to follow the proper enrollment procedures, contributions to your Account may
be invested in the Investment Fund that is the qualified default investment alternative designated
for you by the Plan Administrator. The current qualified default investment alternative is the
MFS Lifetime Fund. If any Investment Fund(s) which you have selected are subsequently
eliminated from the Plan and you do not make a new election regarding the Investment Fund(s)
in which you want future contributions to be invested, you will be deemed to have selected the
Investment Fund(s) most similar to those that you previously elected.
You should evaluate the investment alternatives available under the Plan in the
same way you would evaluate any investment to determine whether you are comfortable
with the investment risk and expected rate of return. The Plan is intended to constitute a
plan under Section 404(c) of ERISA and Title 29 of the Code of Federal Regulations
Section 2550.404c-1. Consequently, the fiduciaries of the Plan may be relieved of liability
for any losses which are the direct and necessary result of investment instructions given by
you or your Beneficiaries. You are urged to read the literature describing each Investment
Fund prior to making any investment decision. Remember, you will share in any losses as
well as any gains of the funds you choose.
12. ARE THERE INVESTMENT CHARGES?
Contributions to Investment Funds may be subject to investment management fees,
including, but not limited to, commissions, loads or fees. These fees will vary from time to time
and will be set forth in the applicable prospectus for each Investment Fund.
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13. MAY I TRANSFER BETWEEN THE INVESTMENT FUNDS UNDER THE PLAN?
Subject to the rules of the Funding Agent (as further described in the applicable
prospectuses) and the Employer, you may transfer funds in your Account from one Investment
Fund to another Investment Fund. Such rules may include restricting the availability of transfers
or setting minimum or maximum amounts that may be transferred and when transfers are
permitted. Any transfer may be subject to charges, including, but not limited to market value
adjustments, as established from time to time by the Funding Agent with regard to the applicable
Investment Fund.
If you had and still have amounts invested in Investment Funds which are no longer
available under the Plan, you should contact the Funding Agents directly, for investment and
transfer options and instructions regarding these amounts.
If any Funding Agent or Investment Fund is eliminated from the Plan and you do not
elect to transfer the portion of your Account invested with or in such eliminated Funding Agent
or Investment Fund to another Funding Agent or Investment Fund, if the Plan Administrator
determines it is necessary, the Plan Administrator (to the extent legally permitted) may direct the
transfer of such portion of your Account to another Investment Fund of a type similar to the
Investment Fund being eliminated.
You may make direct transfers of and/or change the allocation of future contributions to
your Account by telephoning the Funding Agent at 1-800-343-0860 or logging on to
plan.fidelity.com/CHP. If you need information regarding any other Funding Agent, please
contact the Plan Administrator.
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14. HOW IS MY RETIREMENT BENEFIT DETERMINED?
The amount of your benefit at retirement will depend upon the value of your Account, the
form of benefit that you elect and the applicable annuity rates then in effect.
15. WHEN MAY I COMMENCE TO RECEIVE BENEFITS?
Normally, your benefits will be available to be paid to you under the terms of the Plan on
or after your retirement, death, Disability or other severance from employment. In addition, you
may receive in-service withdrawals from your Employee Contribution Account after you have
attained age fifty-nine and one-half (59½) (subject to legal restrictions and rules of the Funding
Agent) and from your Employee Contribution Account and Rollover Account if you experience
a Hardship (see Question 20). To commence receiving benefits you must elect to do so during
the period 30 to 90 days prior to the date you wish benefits to commence. At the Funding
Agent’s discretion, you may be permitted to waive the 30 day minimum period (with the consent
of your Spouse, if applicable) and have your benefits commence not less than 7 days after you
receive the written explanation of the terms and conditions of a qualified joint and survivor
annuity.
You are generally required to commence receiving your benefits by the April 1 following
the end of the calendar year in which (i) you reach age seventy and one-half (70½), or (ii) you
retire, whichever is later. Notwithstanding the foregoing, you may elect to commence to receive
benefits at any time after the April 1st following the end of the calendar year in which you reach
age seventy and one-half (70½), even if you are still employed. In addition, to the extent
required by the applicable Funding Agent or law, your benefits may be required to commence by
your 75th birthday even if you are still employed by the Employer.
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Note: If you receive a distribution of your benefits and do not roll over the
distribution to a traditional Individual Retirement Account (“IRA”), Roth IRA or another
eligible retirement plan, you may, in addition to any regular income tax liability, be
required to pay an excise tax equal to 10% of the amount of the distribution unless the
distribution was made:
• on or after you attained age 59½;
• due to your Termination of Employment because of Disability or having retired early after your 55th birthday;
• to your Beneficiary or estate following your death;
• as part of a series of substantially equal periodic installments, payable at least annually, made for your life (or life expectancy) or the joint lives (or life expectancies) of you and your Beneficiary; or
• to reimburse medical expenses that are deductible on your federal income tax return.
Accordingly, we recommend that you consult your tax advisor before electing to receive
any distribution.
In addition to the taxes set forth above, tax law may require that 20% of your distribution
be withheld for taxes unless directly transferred (as opposed to distributed and then “rolled
over”) to a traditional IRA, Roth IRA or other eligible retirement plan. State withholding may
also apply. The Plan Administrator will give you written notice, explaining: (1) your right to a
rollover of all or a portion of your distribution, and (2) the application of the mandatory 20%
withholding tax to portions of the distribution that are not directly rolled over.
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16. IN WHAT FORM WILL I RECEIVE MY BENEFITS?
Your benefits will commence on the first day of the month coinciding with or
immediately following the payment date which you elect by providing notice to the applicable
Funding Agent. In no event may your benefits commence more than 90 days after your election
to receive benefits. Generally, benefits may not commence less than 30 days after you receive
notice of your rights to benefits from the Employer except that if the Funding Agent so permits,
you may elect (with the consent of your Spouse if you are married) to commence receipt of
benefits anytime more than 7 days after you receive notice of your rights to benefits.
If you make an election of an optional form of benefit in writing to the Funding Agent,
you will receive your benefits in the form elected. If you are married, any election of an optional
form of benefit requires the notarized, irrevocable consent of your Spouse.
If you do not make such an election, your benefits will be paid as follows:
If you are not married or, if you are married and have waived the standard form of benefit for married Participants (with the consent of your Spouse, within the 90-day period prior to the first day of the first period for which your benefits are to commence), you will receive your benefits in the form of a life annuity with 10 years certain, providing for monthly payments for your life (with a guarantee that 120 payments will be made).
If you are married and have not waived the standard form of benefit for married Participants, you will receive a joint and 50% survivor annuity with 10 years certain providing for an actuarially reduced monthly benefit for your life and, if you die, your Spouse (at the time benefits commence) will receive a monthly benefit, for his or her life, equal to 50% of the amount of the benefit you were receiving. Payments will cease at the later of the death of you or your Spouse (with a guarantee that 120 payments will be made).
If your account balance does not exceed $5,000, then a lump sum distribution of your
account balance will be made to you as soon as administratively practicable following your
Termination of Employment. You may, however, elect to roll over the distribution to another
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eligible retirement plan, including an individual retirement account (“IRA”). At the time of your
Termination of Employment, the Plan Administrator will provide you with further information
regarding your distribution rights. If the amount of the distribution will be more than $1,000 and
you do not make an affirmative election to either receive your lump sum distribution or to roll
over the distribution, then your distribution will be rolled over to an IRA. The Plan
Administrator has entered into an Agreement with Fidelity, pursuant to which the rollover IRAs
established by Fidelity with respect to these distributions will be invested in the Fidelity Cash
Reserves Fund. The Plan Administrator has determined that the Cash Reserves Fund is a type of
investment designed to preserve principal and provide a reasonable rate of return and liquidity.
Fidelity will not charge an establishment fee or an annual fee with respect to a rollover IRA. A
$50 termination fee will be charged by Fidelity when you liquidate your rollover IRA. You may
transfer your rollover IRA, at any time and without cost, to any other IRA you choose. For
further information regarding the Plan’s automatic rollover provisions, the IRA provider, and the
fees and expenses associated with the IRA you may contact: Fidelity Investments Tax Exempt
Services Company, P.O. Box 770002, Cincinnati, Ohio 45277-0090, telephone (800) 343-0860.
17. WHAT OPTIONAL FORMS OF BENEFITS ARE AVAILABLE?
Subject to the compliance with legal limitations and, if you are married, the consent of
your Spouse, you may elect any of the forms of benefits made available by a Funding Agent by
timely filing the appropriate election form (during the period 30 to 90 days prior to the date you
wish benefits to commence, or, at the Funding Agent’s discretion, you may be permitted to
waive the 30 day minimum period (with the consent of your Spouse, if applicable) and have your
benefits commence not less than 7 days after you receive the written explanation of the terms and
conditions of a qualified joint and survivor annuity). If you are eligible to receive a joint and
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survivor annuity, you may elect to receive payment of your benefits in the form of a Qualified
Optional Survivor Annuity (a “QOSA”). A QOSA is the actuarial equivalent benefit payable to
you based on the value of your Account balance, which will be payable to you during your
lifetime after the commencement of your benefits with 75% of such benefit continued to your
Spouse for the duration of your Spouse’s lifetime after your death. In no event will payments be
made after the death of both you and your Spouse.
If you have an Account balance in any Investment Fund and you wish to receive an
optional form of benefit not permitted by the Funding Agent, amounts in your Account must first
be transferred, if permitted, to a Funding Agent which offers the applicable optional form of
benefit.
18. WHAT IF I DIE BEFORE COMMENCEMENT OF MY BENEFITS?
If you die before benefits commence, your Beneficiary(ies) will receive the full value of
your benefits under the Plan, subject to your designation and to the legal rights of your Spouse.
If you are not married at the time of your death (or you are married, and you had, with
the valid written consent of your Spouse, designated another Beneficiary for part or all of your
benefits) and you die prior to commencing to receive any benefits under the Plan, your benefits
under the Plan may be distributed to your Beneficiary(ies) in a lump sum or in an optional form
of benefit he or she selects.
If you are legally married at the time of your death and you die prior to receiving any
benefits under the Plan, an amount equal to 50% of your benefits under the Plan will be
distributed to your Spouse, in the form of an annuity, or if your Spouse elects, in the form of a
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lump sum payment or an optional form of benefit in accordance with the rules of the applicable
Funding Agent. Your Spouse also may, subject to legal requirements and Funding Agent rules,
elect to leave his or her share of the benefit amount with the Funding Agent, and later elect a
form of benefit payment. The remaining portion of your benefits will be paid to your designated
Beneficiary(ies) or, if you did not designate a Beneficiary, all benefits will be paid to your
Spouse. Such remaining portion may be distributed in an optional form of benefit selected by
the Beneficiary or, if elected, may be left with the Funding Agent and distributed at a later time.
Notwithstanding the foregoing, if you had, with the valid written consent of your Spouse,
designated a Beneficiary other than your Spouse for more than 50% of your benefits, your
Spouse will receive such lesser amount, if any, as is designated to him or her and the balance of
your Account will be distributed to that Beneficiary in accordance with the terms of the
immediately following paragraph. Any designation of a Beneficiary other than your Spouse
made prior to the Plan Year in which your 35th birthday occurs will be null and void as of the
beginning of such Plan Year, except if such election is made after you have terminated
employment.
If you die while performing Qualified Military Service, you will be treated under the Plan
as if you died while employed by the Employer.
Payments will be made as soon as administratively feasible following the date of your
death in accordance with the election made by the Beneficiary.
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19. WHAT IF I DIE AFTER COMMENCEMENT OF MY BENEFITS?
If you die after commencing to receive benefits, your surviving Spouse or Beneficiary
will receive such benefits, if any, as are provided under the form of benefit you were receiving at
your death.
20. MAY I WITHDRAW ANY AMOUNTS FROM MY ACCOUNT WHILE I AM STILL EMPLOYED?
Subject to the limitations existing at law, and the rules of the Funding Agent, you may
receive in-service withdrawals from your Employee Contribution Account after you have
attained age fifty-nine and one half (59½). In addition, subject to legal limitations and the rules
of the Funding Agent, you may make withdrawals from your Employee Contribution Account
(excluding earnings thereon) and Rollover Account if you experience a “Hardship”, as defined
below.
Hardship distributions shall be approved only if you have an “immediate and heavy
financial need” as defined below and the distribution is necessary to satisfy the financial need.
Hardship distributions will first be made from your Rollover Account to the extent permitted
under the Plan and under the rules of the applicable Funding Agent. In addition, withdrawal of
amounts from your Accounts may be subject to restrictions in accordance with the Plan and rules
of the applicable Funding Agent. If you are married, your Spouse must consent in writing to a
Hardship withdrawal.
The following are deemed to be immediate and heavy financial needs of the Participant:
(a) uninsured medical expenses incurred by you, your Spouse or dependents or necessary for those persons to obtain medical care;
(b) purchase (excluding mortgage payments) of your principal residence;
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(c) payment of tuition and related educational fees and room and board expenses for up to the next twelve months of post-secondary education for you, your Spouse, your children or dependents;
(d) the payment of amounts necessary to prevent your eviction from your principal residence or the foreclosure on the mortgage of your principal residence;
(e) payment of burial or funeral expenses for your deceased parent, Spouse, children or dependants;
(f) payment of expenses for the repair of damage to your principal residence that qualifies for the casualty deduction under Code Section 165; or
(g) such other circumstances as may be promulgated by the Internal Revenue Service.
Hardship distributions will be deemed to be necessary to satisfy your immediate and
heavy financial need if all of the following are satisfied:
(a) the withdrawal does not exceed the amount of your immediate and heavy financial need (which may include reasonably anticipated federal, state or local income taxes resulting from the distribution); and
(b) you have obtained all distributions, other than hardship distributions, and all non-taxable loans currently available under the Plan and any other deferred compensation plan maintained by the Employer.
In the event that you make a Hardship withdrawal, then you will be suspended from
making any elective contributions to any other qualified or nonqualified plan maintained by the
Employer, other than health and welfare benefit plans, for six (6) months following the Hardship
withdrawal.
All hardship withdrawals are subject to the rules, procedures, forms and notice
requirements, all as established by Beth Israel or on its behalf. If you are married, the written,
notarized, irrevocable consent of your Spouse to such withdrawal will be required.
Amounts withdrawn on account of Hardship may not be “rolled over” to a traditional
IRA, Roth IRA or other eligible retirement plan. Further, such amounts will not be subject to the
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20% withholding tax law generally requires on distributions not directly transferred to a
traditional IRA, Roth or other eligible retirement plan. Such amounts, may, however, be subject
to a 10% excise tax on early distributions.
You should consult your tax advisor prior to making any withdrawals as there are possible
tax consequences.
21. MAY I BORROW FROM THE PLAN?
Upon application to the Funding Agent, subject to the rules of the Funding Agent and the
terms of the applicable contract and your Spouse’s consent if you are married, the Funding Agent
will make a loan to you under the contract. The minimum amount of any loan is $1,000.
All such loans must:
(i) be adequately secured;
(ii) bear interest at a rate determined by the Funding Agent;
(iii) be subject to such charges as imposed by the Funding Agent, in accordance with its contract with the Employer;
(iv) have a definite level amortization repayment schedule (to be at least once per quarter) not to exceed 5 years (not to exceed a longer duration established by the applicable Funding Agent, in the case of a loan used to acquire any dwelling unit which within a reasonable period of time is to be used as your principal residence); and
(v) be subject to the rules of the Funding Agent.
The aggregate loans to you cannot, when combined with outstanding loan balances from
the Plan and certain other tax-qualified plans or Section 403(b) plans, exceed the least of:
(i) $50,000, less the excess (if any) of (A) the highest amount of loans outstanding to you within the 12 month period ending on the day prior to the date the loan is made over (B) the outstanding balance of loans outstanding on the date the loan is made;
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(ii) fifty percent (50%) of the value of your Account under the Plan; or
(iii) such amount as permitted by the Funding Agent.
As security for a loan you will be required to pledge an amount as required by the
Funding Agent provided that the pledged amount: (i) may not exceed 50% of the value of your
Account at the time of the loan, and (ii) is invested in Investment Funds in accordance with
Funding Agent rules.
Loans must be repaid by you on a level basis, not less frequently than quarterly. Subject
to any limitations imposed by applicable state insurance departments, in the event that you do not
repay your loan or the interest thereon in accordance with the schedules prescribed or any
permitted grace periods, the Funding Agent will deduct the total amount of your outstanding loan
and/or any interest and other charges due and owing, from any amount payable or distributable
from the portion of your Account securing the loan, or such lesser amount as stipulated by the
applicable state insurance department. Even if such deduction can not then legally be made, you
will have a deemed distribution (i.e., a defaulted loan will be treated as income to you) for tax
purposes and an offset as soon as legally permitted. Until such offset can legally be made, the
loan will remain outstanding to the extent required by law. Loan repayments will be suspended
during Qualified Military Service in accordance with Code Section 414(u)(4).
If you are married as of the date a Plan loan is to be made to you, the loan will require
your Spouse’s written, notarized, irrevocable consent. The consent must be given during the 90
day period prior to the date of the loan, and must consent to the potential reduction of your
benefits in the event of your non-payment of the loan. Your Spouse’s consent is also required
for any renegotiation, extension, renewal or other revision of any Plan loan to you.
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If you retire, die or otherwise incur a Termination of Employment before your loan is
repaid in full and you wish to receive a distribution, the amount of the loan (with interest) will be
deducted from your Account before benefit payments will be paid to you or your Beneficiary.
A loan may be prepaid in full or in part without penalty only with the advance consent of
the applicable Funding Agent, unless otherwise required by law.
The rules of the applicable Funding Agent may restrict the availability of amounts in your
Employer Contribution Account for loan withdrawals. (Please consult the Plan Administrator
for details).
The Employer and applicable Funding Agent are entitled to establish additional rules in
connection with loans in accordance with applicable law.
22. WHAT ARE THE REQUIREMENTS FOR SPOUSAL CONSENT?
All consents by a Spouse 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 if you can establish to
the Employer’s satisfaction that you have no Spouse or that he or she cannot be located. Unless
a Qualified Domestic Relations Order, as defined in Section 414(p) of the Code (described in
Question 24), requires otherwise, a Spouse’s consent shall not be 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 consent must specifically designate the Beneficiary or otherwise expressly permit
designation of the Beneficiary by you without any further consent by the Spouse. If a designated
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Beneficiary dies, unless the express right to designate a new 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, benefit
commencement, or loan, as the case may be, is the same person as the one who signed the
consent. With regard to loans, the spousal consent necessary is that of your Spouse at the time of
the loan and the Spouse must consent to both the loan and the potential reduction of benefits in
the event the loan is not timely repaid. Any renegotiation, extension, renewal or other revision
of a loan to a Participant requires a new consent.
Consent of a Spouse to an alternative benefit form or loan must be made within 90 days
prior to the date of the distribution, first payment or loan.
Even where such consent is not expressly required, the Employer reserves the right to
require the consent of your Spouse to any election or revocation of election made under the Plan.
23. DO I STILL RECEIVE SOCIAL SECURITY BENEFITS IF I PARTICIPATE IN THE PLAN?
Yes. The benefits you receive under the Plan are in addition to any benefits you may
receive from Social Security. Social Security benefits are, of course, paid by the federal
government and are dependent upon your career earnings and employment, as well as the
provisions of the Social Security Act which are in effect at the time you are eligible to receive
Social Security benefits.
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24. MAY I ASSIGN MY PLAN BENEFITS?
Generally, no. The Plan does not permit you to assign your benefits in the Plan. In
addition, pursuant to the terms of the Plan, no lien may be created on any funds, securities or
other property held under the Plan and your creditors may not attach, garnish or otherwise
interfere with your Account balance. One exception to this rule is a payment made pursuant to a
Qualified Domestic Relations Order (“QDRO”). A QDRO is a court order or decree that
compels the Plan Administrator to pay or allocate a portion of your Account to your Spouse,
former Spouse, child or other dependent. If a QDRO is received by the Plan Administrator, all
or a portion of your Account balance may be used to satisfy the obligation. You or your
beneficiaries may obtain, without charge, a copy of the QDRO procedures from the Plan
Administrator. A second exception involves circumstances under which your benefits under the
Plan are offset by an amount for which you are liable to the Plan as a result of your conviction of
a crime regarding the Plan, a civil judgment or a settlement agreement between you and the U.S.
Department of Labor or Pension Benefit Guaranty Corporation.
25. IS THE PLAN AN EMPLOYMENT CONTRACT?
No. Neither the establishment of the Plan, any provision under the Plan, nor your
participation in the Plan guarantees your continued employment or entitles you to the right to
continue employment with the Employer or affects your employment status with the Employer.
If your employment terminates for any reason, the Plan will not provide you with any benefit
except as specifically provided in the Plan.
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26. MAY THE PLAN BE AMENDED OR TERMINATED?
It is Beth Israel’s intention that the Plan will continue indefinitely, however, the Board of
Trustees reserves the right to amend or terminate the Plan. You may obtain information
concerning the Board of Trustees from the Plan Administrator. If Beth Israel does terminate the
Plan, you will still be entitled to your full Account balance.
27. ARE BENEFITS UNDER THE PLAN INSURED BY THE PENSION BENEFIT GUARANTY CORPORATION?
No. Benefits under this type of Plan are not insured by the Pension Benefit Guaranty
Corporation (the “PBGC”), which is a federal agency that insures certain pension plan benefits
upon plan termination, because the benefits you receive under this type of plan are based upon
the vested amount in your Account.
28. WHAT FEDERAL INCOME TAXES ARE APPLICABLE TO THE PLAN?
Under current federal income tax law, your pension benefits are not taxable while they
accumulate in the Plan. As discussed above, in certain instances, upon distribution of your
pension benefits, federal (and possibly state and local) income taxes will be withheld from your
pension benefits unless you make a direct rollover to an IRA, another Section 403(b) plan, a tax-
qualified plan or to a governmental Section 457 plan. In addition, federal income taxes are
automatically withheld if your mailing address is outside the United States and in certain other
instances. You may also elect voluntary withholding. There are certain tax penalties if you
withdraw your retirement benefits early. Regardless of whether you elect to have federal income
taxes withheld or it is done automatically, you will still be responsible for payment of such taxes.
29. CLAIMS PROCEDURE
Initial Claims
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Any claim you have with respect to eligibility, participation, contributions, benefits or
other aspects of the operation of the Plan should be made in writing to Beth Israel. Beth Israel
will provide you or your Beneficiary with the necessary forms and make all determinations as to
the right of any person to a disputed benefit.
You will be notified of the acceptance or denial of your claim for benefits within 90 days
from the date Beth Israel receives your claim. In some cases, your request may take more time
to review and an additional processing period of up to 90 days may be required. If that happens,
you will be notified in writing. The written notice of extension will indicate the special
circumstances requiring the extension of time and the date by which Beth Israel expects to make
a determination with respect to the claim.
If your claim is wholly or partially denied, or any other adverse benefit determination is
made with respect to your claim, the Vice President of Human Resources will furnish you with a
written notice of this denial. This written notice will be provided to you within a reasonable
period of time (generally 90 days, or, if the claim involves a determination of Disability, 45
days) after the receipt of your claim by Beth Israel. The written notice will contain the following
information: (i) the specific reason or reasons for the denial; (ii) specific reference to those Plan
provisions on which the denial is based; (iii) a description of any additional information or
material necessary to correct your claim and an explanation of why such material or information
is necessary; and (iv) a description of the Plan’s review procedures and the applicable time
limits, as well as a statement of your right to bring a civil action under Section 502(a) of ERISA
following an adverse benefit determination on review.
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If a notice of the denial of a claim is not furnished to you in accordance with the above
within a reasonable period of time, your claim will be deemed denied. You will then be
permitted to proceed to the review state described in the following paragraphs.
Appeals
If your claim has been denied, or any other adverse benefit determination is made with
respect to your claim, and you wish to submit your claim for review, you must file your claim for
review, in writing, with the Committee. You must file the claim for review no later than 60 days
after you have received written notification of the denial of your claim for benefits (or, if none
was provided, no later than 60 days after the deemed denial of your claim). In connection with
the request for review, you (or your duly authorized representative) may submit to the
Committee written comments, documents, records, and other information relating to the claim.
In addition, you will be provided, upon written request and free of charge, with reasonable access
to (and copies of) all documents, records and other information relevant to the claim. The review
by the Committee will take into account all comments, documents, records and other information
you submit relating to the claim.
The Committee will make a final written decision on a claim review, in most cases,
within 60 days (or, if the claim involves a determination of Disability, 45 days) after receiving
your written claim for review. In some cases, your claim may take more time to review, and an
additional processing period of up to 60 days may be required. If that happens, you will be
notified in writing. The written notice of extension will indicate the special circumstances
requiring the extension of time and the date by which the Committee expects to make a
determination with respect to the claim. If the extension is required due to your failure to submit
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information necessary to decide the claim, the period for making the determination will be tolled
from the date on which the extension notice is sent to you until the earlier of (i) the date on
which you respond to the Plan’s request for information, or (ii) expiration of the 45-day period
commencing on the date you are notified that you must provide the requested additional
information.
The Committee’s decision on your claim for review will be communicated to you in
writing. If an adverse benefit determination is made, this notice will include (i) the specific
reason(s) for the adverse benefit determination, with reference to the specific Plan provisions on
which the determination is based; (ii) a statement that you are entitled to receive, upon request
and free of charge, reasonable access to (and copies of) all documents, records and other
information relevant to the claim; and (iii) a statement of your right to bring a civil action under
Section 502(a) of ERISA. Claims and review of claims pertaining to benefits under the
Contracts should be sent to the Committee but will be determined by the Funding Agent under its
own procedures. Before you file a civil action under Section 502(a) of ERISA in federal court,
you must have filed a claim and appeal with the Committee, as described herein, and your claim
for benefits and subsequent appeal must have been denied in whole or in part. All
interpretations, determinations and decisions of the Vice President of Human Resources and the
Committee with respect to any claim or any other matter relating to the Plan will be made in their
sole discretion based on the Plan documents and will be deemed final, conclusive and binding.
In the event of a scrivener’s error that renders a Plan term inconsistent with Beth Israel’s intent,
Beth Israel’s intent controls
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30. REPRESENTATIVE RESPONSIBLE FOR PROVIDING INVESTMENT INFORMATION
The Plan Administrator has been designated to provide the information required under
ERISA Section 404(c) and, upon request, the following information is available to Plan
Participants:
• a description of the annual operating expenses of each investment alternative which reduce the rate of return of such investment alternative, and the amount of any such expenses expressed as a percentage of average net assets of the investment alternative;
• copies of prospectuses, financial statements and reports, and any other relevant materials relating to the investment alternatives available under the Plan to the extent such information is provided to the Plan;
• a list of the assets comprising the portfolio of each investment alternative, the value of each such asset (or the proportion of the investment alternative which it comprises), and, with respect to each investment alternative which is a fixed rate investment contract issued by a bank, savings and loan institution or an insurance company, the name of the issuer of the contract, the term of the contract and the rate of return of the contract;
• information with regard to the value of shares or units of the investment alternatives, as well as the past and current investment performances of each alternative, determined, net of expenses, on a reasonable and consistent basis; and
• information with regard to the value of shares or units of the investment alternatives held in your Account.
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31. ADDITIONAL INFORMATION ON THE CONTINUUM HEALTH PARTNERS, INC. 403(b) PLAN AS REQUIRED BY THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
Name of Plan Continuum Health Partners, Inc. 403(b) Plan
Plan Number 001
Type of Plan A defined contribution plan which is designed to comply with Code Section 403(b), in which, benefits are based on employee contributions pursuant to Salary Reduction Agreements and employer contributions made to individual accounts and the earnings thereon.
Plan Year January 1 to December 31
Type of Funding Custodial Accounts and Insurance Contracts
Name and Address of the Funding Agents
Metropolitan Life Insurance Company One Madison Avenue New York, NY 10010
Fidelity Investments Institutional Services Company, Inc. 82 Devonshire Street Boston, Massachusetts 02109
Teachers Insurance and Annuity Association (“TIAA”) College Retirement Equities Fund (“CREF”) 730 Third Avenue New York, NY 10017
The Names and Addresses of the Employers Whose Employees Are Covered by the Plan
Beth Israel Medical Center 16th Street at First Avenue New York, NY 10003
St. Luke’s Roosevelt Hospital Center 555 West 57th Street New York, NY 10019
Plan Administrator Beth Israel Medical Center 555 West 57th Street, 19th Floor New York, NY 10003 Telephone (212) 523-5193
Agent for Service of Legal Process
Office of the General Counsel Mount Sinai Health System, Inc. One Gustave L. Levy Place Box 1099 New York, New York 10029
Employer Identification Number of Beth Israel.
13-5564934
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32. YOUR RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
As a Participant in the Plan, you are entitled to certain rights and protection under the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”). ERISA provides
that all Plan Participants shall be entitled to:
Receive Information About Your Plan and Benefits
• Examine, without charge, at the Plan Administrator’s office and at other specified locations, all documents governing the Plan, including insurance policies, collective bargaining agreements and a copy of the latest annual report filed by the Plan with the U.S. Department of Labor, and available at the Public Disclosure Room of the Employee Benefits Security Administration.
• Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies.
• Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report.
• Obtain a statement telling you whether you have a right to receive a pension at normal retirement age (age 65), 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 a 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 every 12 months. The Plan must provide the statement free of charge.
Prudent Actions by Plan Fiduciaries
In addition to creating rights for Plan Participants, ERISA imposes duties upon the people
who are responsible for the operation of the employee benefit plan. The people who operate
your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of
you and other Plan Participants and Beneficiaries. No one, including your employer, your union,
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or any other person may fire you or otherwise discriminate against you in any way to prevent
you from obtaining a pension or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a pension benefit is denied or ignored, in whole or in part, you must
have a right to know why this was done, to obtain documents relating to the decision without
charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if
you request a copy of Plan documents or the latest annual report from the Plan and do not receive
them within 30 days, you may file 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 $110 a day until you receive
the materials, unless the materials were not sent because of reasons beyond the control of the
Plan Administrator.
If you have a claim for benefits which is denied or ignored, in whole or in part, you may
file suit in a state or federal court. In addition, if you disagree with the Plan’s decision or lack
thereof concerning the qualified status of a domestic relations order, you may file suit in federal
court. If it should happen that 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 court 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.
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Assistance With Your Questions
If you have any questions about your Plan, you should contact the Plan Administrator. If
you have any question about this statement or about your rights under ERISA, you should
contact the nearest office of the Employee Benefits Security Administration, U.S. Department of
Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution
Avenue, N.W., Washington, D.C., 20210. You may also obtain certain publications about your
rights and responsibilities under ERISA by calling the publications hotline of the Employee
Benefits Security Administration.
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GLOSSARY
“Account” – means the sum of your accounts maintained by the Funding Agents to
record your interest in the Plan, including the Employee Contribution Account, the Employer
Contribution Account and the Rollover Account.
“Anniversary Year” – means the twelve (12) consecutive month period beginning with
the date an Employee first completes and Hour of Service for an Employer or associated
company (as defined under the Plan), or any anniversary thereof.
“Beneficiary” – means any person eligible to receive any death benefits payable upon
your death. If you do not designate a Beneficiary, your Spouse will be your Beneficiary or, if
you have no Spouse at the time of your death, your estate will be your Beneficiary.
Notwithstanding the foregoing, if the Contract with the Funding Agent specifically provides for a
different default Beneficiary that satisfies the requirements of ERISA, such different default
Beneficiary shall be deemed the Beneficiary if you fail to make a designation.
“Beth Israel” – means Beth Israel Medical Center.
“Board” – means the Board of Trustees of Beth Israel.
“Code” – means the Internal Revenue Code of 1986, as amended from time to time.
“Committee” – means the committee comprised of those individuals with the following
titles from time to time: (i) Executive Vice President, Business & Finance of Mount Sinai Health
System, Inc. (ii) Senior Vice President, Human Resources of Mount Sinai Health System, Inc.
(iii) Director of Compensation and Benefits Planning of The Mount Sinai Medical Center and
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(iv) Senior Vice President & Chief Financial Officer of the Icahn School of Medicine at Mount
Sinai; and/or such other persons or individuals with other titles as the Compensation, Employee
Benefits and Employee Relations Committee of the Board may determine from time to time.
“Compensation” – means your Form W-2, Box 1 earnings excluding bonuses, incentive
compensation and Faculty Practice Plan (“FPP”) earnings.
If you are a physician or other clinician for whom Fringe Benefit Compensation is
established (as your base compensation for fringe benefit purposes), your Compensation means
your Fringe Benefit Compensation, provided that your Compensation for this purpose may not
exceed your wages as defined in Section 3401(a) of the Code.
Your Compensation for any Plan Year may not exceed Two Hundred and Fifty-Five
Thousand Dollars ($255,000), as adjusted by the Secretary of Treasury for cost of living
increases in accordance with Section 401(a)(17) of the Code. Compensation will not include
deferred compensation and contributions to, or payments from or any employee benefit plans.
Notwithstanding the foregoing, for purposes of your Salary Reduction Agreement,
Compensation means your Form W-2, Box 1 earnings without exclusions.
In all cases, Compensation will be determined prior to any reduction pursuant to any
salary reduction agreement with the Employer with regard to any Section 403(b) Plan or under
Code Section 125 or pursuant to a qualified transportation benefit arrangement under Code
Section 132(f). Compensation will also include salary or overtime payments made to you after
your termination of employment for services rendered during regular working hours and for
unused accrued bona fide vacation, provided that you could have used such vacation days if your
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employment had continued; and provided further, that any such payments are made by the later
of (a) two and one-half (2½) months after your termination of employment or (b) the end of the
limitation year in which your termination of employment occurs. However, Compensation will
not include separation pay or any severance pay during the severance period that you do not
continue as an Employee on payroll with active employment obligations. In all cases,
Compensation will not include any payments made during a period of absence from work
because of illness or accident except amounts paid directly by the Employer.
“Contracts” – means the contracts or agreements issued by the Funding Agent to Beth
Israel to fund benefits under the Plan.
“Disability” – means a condition satisfying the requirements of Code Section 72(m)(7).
“Eligible Employee” – means any Employee of an Employer other than: (a) any
Employee of the Employer classified as a per-diem Employee or Temp Pool Employee; (b) any
Employee, other than a St. Luke’s-Roosevelt Hospital Center Employee who is a member of the
Special and Superior Officers Benevolent Association, whose employment is governed by the
terms of a collective bargaining agreement between Employee representatives (within the
meaning of Code Section 7701(a)(46)) and the Employer, which agreement does not provide for
participation in the Plan; (c) any Employee who is classified as a Housestaff Employee; or (d)
any Employee who is eligible to receive Employer contributions under St. Luke’s Roosevelt
Hospital Center Section 403(b) Tax Sheltered Annuity Plan for Selected Officers of Columbia
University.
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An individual classified by the Employer at the time services are provided as either an
independent contractor or an individual who is not classified as an Employee due to an Employer
treating any services provided by him as being provided by another entity, which is providing
such individual’s services to the Employer, shall not be eligible to participate in this Plan during
the period the individual is so initially classified even if such individual is later retroactively
reclassified as an employee during all or any part of such period pursuant to applicable law or
otherwise.
“Employee” – means any person employed by the Employer, other than (i) a “leased
employee” within the meaning of Code Section 414(n), or (ii) a non-resident alien who receives
no earned income which constitutes income from sources within the United States.
“Employee Contribution Account” – means your subaccount with respect to
contributions made by the Employer on your behalf pursuant to a Salary Reduction Agreement.
“Employer” – means Beth Israel and any Member Company.
“Employer Contribution” – means a contribution made by the Employer to your
Employer Contribution Account in accordance with the Plan and as described in Question 7.
“Employer Contribution Account” – means your subaccount with respect to
contributions made by the Employer on behalf of such Participant in accordance with the Plan.
“ERISA” – means the Employee Retirement Income Security Act of 1974, as amended
from time to time.
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“Funding Agent” – means TIAA-CREF, MetLife, Fidelity and any insurance company
or regulated investment company (through a custodian) with which the Employer enters into
Contracts or from which the Employer purchases Contracts on behalf of Participants under the
Plan.
“Highly Compensated Group” – Any employee is part of this group if such employee
(1) owns at any time during the current or preceding Plan Year more than 5% of the outstanding
stock of the Employer or stock possessing more than 5% of the total combined voting power of
all stock of the Employer, or (2) received compensation from the Employer and affiliates in
excess of $115,000 (as adjusted by the Secretary of the Treasury), in the preceding Plan Year,
and was among the top 20% of Employees when ranked on the basis of compensation (as defined
in Section 415(c)(3) of the Code) during such Plan Year.
“Hour of Service” – means each hour for which you are or will be directly or indirectly
compensated by an Employer or an affiliate for performance of your work duties including
overtime (but only actual hours worked irrespective of premium pay). Hours of Service also
includes hours for which you are or will be directly or indirectly compensated by the Employer
or any affiliate for reasons other than for the performance of duties, including, but not limited to,
sick days, disability, vacation, holidays, jury duty, layoff, military duty or leave of absence, but
not in excess of 501 hours for any continuous period of non-working time for which you are
compensated; and not including any time for which you are compensated pursuant to a plan
required by applicable workers compensation, unemployment compensation or disability laws;
for these nonworking times your normal number of daily working hours will be used.
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“Investment Funds” – means the investment alternatives approved by the Committee for
investment of Plan assets.
“Member Company” – means any entity that is or hereafter becomes an associated
company (as defined in the Plan) and assumes the obligations of the Plan and Contract by vote of
its board of trustees and with the consent of the Board of Trustees. If the Plan is only adopted by
a Member Company with regard to certain divisions, only those divisions shall be deemed a
Member Company and the other divisions of such Member Company shall not be deemed to be a
Member Company hereunder.
The Beth Israel Medical Center (inclusive of the Robert Mapplethorpe Residential
Treatment Facility, Beth Israel Ambulatory Care Services Corp., Beth Israel Brooklyn (formerly
the Kings Highway Division of Beth Israel Medical Center), and BICCC West, LLC), and the St.
Luke’s-Roosevelt Hospital Center (inclusive of SLR Management Services, Inc.) are Member
Companies.
“Participant” – means any individual who at the time of any determination hereunder is
participating in the Plan in accordance with the provisions of the Plan. You will cease to be a
Participant at such time as you no longer have any interest in your Account under the Plan.
“Plan” – means the Continuum Health Partners, Inc. 403(b) Plan, effective as of January
1, 2005.
“Plan Administrator” – means Beth Israel.
“Qualified Military Service” – means “qualified military service” within the meaning of
Section 414(u)(5) of the Code.
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“Rollover Account” – means your subaccount with respect to Rollover Contributions
made to the Plan on your behalf.
“Rollover Contributions” – means your benefits from any other 403(b) plan, tax-
qualified plan, governmental Section 457 plan or an individual retirement account or annuity
(“IRA”) that are rolled over into the Plan, pursuant to the terms of the Plan and applicable rules
of the Funding Agent.
“Salary Reduction Agreement” – means a written agreement between you and the
Employer under which the Employer agrees to make certain contributions on your behalf toward
the purchase of an annuity for you under a Contract and you agree that your salary will be
reduced by the amount of the contribution.
“Salary Reduction Contributions” – means contributions made on your behalf by the
Employer on a pre-tax basis by withholding amounts from your paycheck pursuant to a Salary
Reduction Agreement.
“Spouse” – means your legal Spouse as defined under applicable federal law.
Accordingly, the terms “married” or “marriage” as used herein shall refer to a marriage to a
Spouse, as defined under applicable federal law.
“Termination of Employment” – means your separation from employment for any
reason, including retirement, death, disability, resignation or dismissal. This does not include an
authorized leave of absence or layoff, unless you do not return to work when you are required to
do so, and, for distribution purposes, certain corporate transactions which may result in your
employment with another entity.
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In the event the Employer or an associated company sells or otherwise disposes of some
or all of its assets and, in connection with, or as a result of, such sale you become employed by
the acquiror of such assets, you will be deemed to have incurred a Termination of Employment
for purposes of being entitled to benefits under the Plan, unless and until the Employer makes
arrangements for a direct transfer of your Account.
“Year of Service” – for purposes of eligibility means an Anniversary Year during which
you complete at least 1,000 Hours of Service, unless you did not complete at least 1,000 Hours
of Service during your first Anniversary Year, in which case a Year of Service will be a Plan
Year in which you complete at least 1,000 Hours of Service. For purposes of vesting, a Year of
Service means a Plan Year during which you complete at least 1,000 Hours of Service.
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EXHIBIT A
BETH ISRAEL MEDICAL CENTER ELIGIBLE EMPLOYEE CATEGORIES
Contribution Level as a Percentage of Compensation
Assistant Director or above or a physician who is a member of the Faculty Practice Plan (FPP)
5.4%
Chief Physician’s Assistant, Senior Nurse Practitioner, Nurse Practitioner or Midwife
5%
Non-union Employee below Assistant Director level, Physical Therapist who is a member of the American Physical Therapy Association (APTA) or a physician who is not a member of the FPP
3%
ST. LUKE’S – ROOSEVELT HOSPITAL CENTER ELIGIBLE EMPLOYEE CATEGORIES
Contribution Level as a Percentage of Compensation
President, Executive Vice President, Senior Vice President, Vice President, or a physician who is a member of the FPP
5.4%
Assistant Director or above but below the Vice President level, a physician who is not a member of the FPP or a dentist
4%
Non-union Employee below Assistant Director level, Physical Therapist who is a member of the APTA or a member of the International Union of Operating Engineers (Local 30) who previously opted to remain in the St. Luke’s-Roosevelt Hospital Center Employees’ Pension Plan
3%
Member of the Special and Superior Officers Benevolent Association (“SSOBA”) who is scheduled to work at least 37.5 hours per week. Contribution is prorated if scheduled to work at least 18.75 hours per week but less than 37.5 hours per week
$2,000 each Plan Year
All Participants in the St. Luke’s-Roosevelt Hospital Center Employees’ Pension Plan actively employed on May 12, 2007 with 20 or more Years of Service as of May 12, 2007 are entitled to receive an additional 2% contribution above the stated percentage of compensation contribution levels.
A-2
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* * *
This booklet is intended to provide you with an easy-to-understand summary of the Plan. While every effort has been made to make this description as complete and accurate as possible, the booklet, of necessity, cannot contain a full restatement of the terms and provisions of the Plan. If any conflict should arise between the summary in this booklet and the Plan, or if any point is not covered in this booklet or is only partially covered, the terms of the Plan will govern in all cases.
* * *
PRIOR TO MAKING ANY WITHDRAWAL OR TAKING ANY OTHER ACTION WITH REGARD TO THE
PLAN, WE WOULD ADVISE THAT YOU CONSULT WITH YOUR TAX ADVISOR. ANY STATEMENT AS
TO THE TAX EFFECT OF ANY DECISIONS IN THIS BOOKLET IS BASED ON THE EMPLOYER’S
UNDERSTANDING OF THE LAW AS OF THE DATE THIS BOOKLET WAS PREPARED AND,
ACCORDINGLY, IS SUBJECT TO THE ACTUAL INTERPRETATION OF THE LAW BY THE IRS AND THE
COURT, STATUTORY CHANGES AND REGULATORY CHANGES.
* * *
