National Collegiate Athletic Association
NCAA Supplemental TSA Plan
Summary Plan Description
Second Draft
Prepared
by
Mercer
Investment Consulting
March
2004
National Collegiate Athletic Association
NCAA Supplemental TSA Plan
Summary Plan Description
Second Draft
Prepared
by
Mercer
Investment Consulting
March
2004
Table of Contents
Introduction....................................................................................................................................... 1
Participation...................................................................................................................................... 1
Who is eligible............................................................................................................................... 1
When you can participate.............................................................................................................. 1
If you are reemployed.................................................................................................................... 1
Your beneficiary designations......................................................................................................... 1
Employer Contributions..................................................................................................................... 2
Employer contributions.................................................................................................................. 2
Limits on employer contributions.................................................................................................... 2
Contributions for military leave....................................................................................................... 2
Your Individual Account and Investments........................................................................................... 3
When and how your account is valued........................................................................................... 3
Investments................................................................................................................................... 3
A word about taxes....................................................................................................................... 4
Retirement, Disability, Death & Termination....................................................................................... 4
Normal retirement......................................................................................................................... 4
Disability....................................................................................................................................... 4
Death............................................................................................................................................ 4
Termination................................................................................................................................... 4
When and How Your Account is Paid............................................................................................... 5
Time of payment............................................................................................................................ 5
Form of payment........................................................................................................................... 5
Eligible rollover distributions........................................................................................................... 5
A word about taxes....................................................................................................................... 5
Withdrawals, Loans and Transfers..................................................................................................... 6
Hardship withdrawals.................................................................................................................... 6
Loans............................................................................................................................................ 6
Transfers and Rollovers................................................................................................................. 6
Claims Procedures............................................................................................................................ 6
Plan Amendment and Termination...................................................................................................... 7
Your ERISA Rights........................................................................................................................... 7
Receive information about your Plan and benefits........................................................................... 8
Prudent actions by Plan fiduciaries................................................................................................. 8
Enforce Your Rights...................................................................................................................... 8
Assistance with your questions....................................................................................................... 9
Administrative Information................................................................................................................. 9
Formal name and type of Plan........................................................................................................ 9
Plan Number and Employer Identification Number......................................................................... 9
Plan Year...................................................................................................................................... 9
Plan Sponsor and Contributing Employer....................................................................................... 9
Committee.................................................................................................................................... 9
Agent for Service of Legal Process................................................................................................ 9
Custodian.................................................................................................................................... 10
Funding....................................................................................................................................... 10
Employment rights not implied...................................................................................................... 10
Future of the Plan........................................................................................................................ 10
Protection for your account.......................................................................................................... 10
Introduction
The NCAA Supplemental TSA Plan (the "Plan") is an
executive supplemental retirement plan designed to comply with the requirements
of the maximum disparity safe harbor under IRS Notice 89-23. The Plan is financed entirely by employer
contributions.
The
National Collegiate Athletic Association is referred to as the "NCAA"
in this Summary Plan Description.
The Administrator of this Plan is the NCAA.
This summary will help you understand more about the Plan. It describes when your participation will start, how contributions are made, how your account can grow and when and how your account is paid to you. Take a few minutes to read this summary.
Participation
The NCAA Supplemental TSA Plan ("Plan") is open to
any employee of the National Collegiate Athletic Association ("NCAA")
who is listed in a schedule maintained by the Employer.
You are eligible to participate on the later of your
employment commencement date or the date you meet the eligibility conditions
set out above.
If you are a participant, you will remain a participant as
long as you remain an employee, and/or are entitled to future benefits under
the terms of the Plan.
If you participated in the Plan when you were previously
employed by NCAA and you are later reemployed, you will immediately become
eligible for participation on your reemployment date.
When you begin participation in the Plan, you must designate
your beneficiary(ies). Your beneficiary is the person
(or persons) to whom benefits will be paid from the Plan in the event of your
death.
You may change your beneficiary designation as often as you
like by completing new beneficiary-designation forms.
If you are married your beneficiary will be assumed to be
your spouse. If you wish to
designate a beneficiary who is not your spouse, then your spouse must give
written consent for such designation to become effective. Consent will be limited to a
benefit for a specific alternate beneficiary.
If you fail to name a beneficiary, Plan benefits will be paid according to the following order of priority — to your:
Ø surviving spouse;
Ø surviving children, in equal shares;
Ø
estate.
Employer Contributions
The NCAA will help increase your retirement security by
contributing to your account from time to time. The Committee shall determine
whether an employer contribution shall be made.
You
receive an employer contribution if you meet the Plan eligibility requirements
(see "Participation" above).
Your
share of the employer contribution is based on your pay on the last day of the plan year. For purposes of the
Plan, your pay is the total pay you
receive from NCAA during the plan year (January 1 to December 31), plus the
amounts you defer into a tax sheltered annuity program, a cash or deferred
arrangement under 403(b), a 401(k) plan, a qualified transportation fringe
benefit or a cafeteria plan. Your pay does not include overtime, bonuses, severance pay, and reimbursements or
other expense allowance, fringe benefits (cash and non cash), moving expenses,
deferred compensation and welfare benefits. If you become eligible for an employer contribution
during the plan year, any pay earned before your eligibility date will not be counted
when determining your share of the employer contribution. In addition, the law
requires that the Plan not consider
pay above $205,000 (for 2004) when calculating your share of the employer contribution.
This level may be adjusted in the future due to inflation.
Please note that this contribution from the NCAA is discretionary. That means the NCAA will
decide, year to year, whether or not to make an employer contribution,
depending on its financial performance that year.
The IRS has imposed limits on the amount of employer contributions which you may receive in a year. These limits have been established to make sure that benefits under this Plan do not favor certain employees or groups of employees. You will be notified by the Committee if these limits will affect you.
If you return to work after military service with
reemployment rights protected by the Uniformed Services Employment and
Reemployment Rights Act (USERRA), you may receive employer
contributions, as described above,
allocated as though you were employed during the USERRA leave. Contributions
for a USERRA leave will be allocated to your account without interim adjustment
for earnings.
Employer contributions will
be subject to any applicable limitations with respect to the year to which the
employer contributions relate.
Re-employment after military
service is a pre-condition of eligibility for USERRA protections. If you don't
return to work after military leave, either because you choose not to or
because you're
not eligible for USERRA's rehire protection, you will
not qualify for make-up elective contributions or matching
contributions for the military leave.
When you first enter the Plan, an individual account will be
set up in your name under the Plan's custodial fund.
The total value of your individual account is determined and
adjusted each business day to reflect:
Ø
the employer contributions credited to your
account since the last date it was valued;
Ø
your share of investment gains or losses during
the period.
Each quarter, you will receive a statement itemizing the
activity in your account during the quarter, and showing the current value of
your account.
You will have the right to direct the investment of the
employer contributions made to your account during the plan year. The investment of all employer
contributions shall be limited to one or more mutual funds chosen by the
NCAA. Please refer to the
As a participant in the Plan, you may choose the investment
fund (or funds) in which to invest your account. Your investment decisions
cover two aspects of your account:
Ø
the account balance, and
Ø
current contributions.
The election you make for one does not have to be the same as the election you make for the other.
In both cases, you may direct your savings in increments of
1 percent. To make your investment elections, you must notify
The money you accumulate in your account (including contributions
and investment income) is tax-free as long as it stays in the Plan.
You are always fully vested in your account and the
investment earnings on your account.
This means you are entitled to the full value of your individual account
under the Plan any time you leave NCAA — for retirement, disability or a
termination of employment. The amount payable is the balance in your individual
account as of the last valuation date plus any additional amounts contributed
to your account and less any amounts withdrawn from your account since that
date.
Your normal retirement age is age 65. Your normal retirement date is the first day of the month on or following your 65th birthday.
You will be considered disabled
if you are unable to engage in any substantially gainful activity by reason of
any medically determinable physical or mental impairment which can be expected
to result in death or to be of long continued and indefinite duration. You may retire from employment on the
first day of any month following a determination by the Committee that you are
totally and permanently disabled.
Upon disability retirement, your benefit will be held until you reach your normal retirement date. However, at any time after disability retirement, you may elect to have your account balance distributed to you by making a written election to the Committee.
If your death occurs before your account has been paid out to you, all amounts credited to your account will be distributed as a lump sum to your beneficiary, within 5 years. If your death occurs after your benefit has been paid to you, then no further benefit is payable.
You may take the full value of your individual account under the Plan at your termination of employment from NCAA. This payment will be made as soon as reasonably possible after your employment ends. However, you have the option of electing to postpone your distribution until your normal retirement date. The funds in your individual account would remain in the Plan and would continue to share in the investment gains and/or losses of the fund.
This payment will be made as soon as reasonably possible after an application for payment is made. If your account balance is over $5,000 at the time of termination, you have the option of taking an immediate distribution at termination or electing to postpone your distribution until your normal retirement date. The funds in your individual account would remain in the Plan and would continue to share in the investment gains and/or losses of the fund. If your account balance is $5,000 or less at the time of termination, you will receive a lump sum payment as soon as possible after termination.
Distributions from the Plan are legally required to begin no later than the April 1 following the later of the calendar year in which you reach age 70½ or actually retire.
The total amount due from your account will be paid to you (or to your beneficiary) as a single lump sum cash distribution. You will have no further benefits from the Plan and no payments will be due to your beneficiary after your death.
Any participant, spouse or former spouse, under a qualified
domestic relations order, that is entitled to receive an "eligible"
distribution may elect to have it paid directly to another eligible 403(b) plan,
a qualified 401(a) plan, an individual retirement account, or an eligible
governmental 457(b) plan. Under an
eligible rollover distribution, payments from the Plan are rolled over directly
to an individual retirement account, retirement annuity or other eligible
qualified retirement plan. Plan members should contact the Committee for more
information about rollover options.
The Plan's custodian is required to withhold 20 percent federal income tax on certain types of payments from the Plan unless the participant (or the participant's surviving spouse or former spouse under a qualified domestic relations order) elects a direct rollover. It is a good idea to check with a tax expert about federal and state tax liability before receiving any distribution from the Plan.
You may have to pay a tax penalty on any money you receive
from the Plan before you reach age 59½, unless:
Ø
You are totally and permanently disabled; or
Ø
the distribution is due to death; or
Ø you terminated employment on or after your 55th birthday; or
Ø
you elect an eligible rollover distribution.
Under current law, the
federal tax penalty is ten percent (10%) of the taxable amount of the
distribution.