American Banks Of Florida, Inc.
401(K) Plan And Trust
Summary Plan Description
June 1994
Other than the Overview displayed below, the text
presented in this web page is directly from the Plan Document
distributed by American Bank, which describes the major
provisions of the 401(k) Plan and Trust. It has been edited only
insofar as necessary for it to be viewed on this website.
401(k) Overview
The 401(k) Plan provides employees an opportunity to build funds
for retirement or certain other long-term savings needs by
contributing to a tax-deferred savings plan.. Full-time employees
are eligible to participate after 1 year of service and at least
age 21. Employees may save a portion of their pay, through
payroll deduction, on a pre-tax basis, and have it invested in a
choice of investment accounts. For each dollar an employee
contributes (up to 5% of pay), American Bank will contribute
$.75. The employee contribution, the company contribution, nor
the earnings in the fund are taxable to a participant until
he/she takes the money out.
You always have 100% ownership in all funds you contribute to
your account, and you become vested (gain ownership) of the
company matching amount according to the following schedule:
Years of Service……Vesting Schedule Percentage
Less than 3…………………………O %
More than
3……………………..100 %
Table Of Contents
Introduction To Your Plan
General Information About Your Plan
General Plan Information
Employer Information
Plan Administrator Information
Plan Trustee Information
Service of Legal Process
Participation in Your Plan
Eligibility Requirements
Participation Requirements
Contributions To Your Plan
Employer Contributions to the Plan
Participant Salary Reduction Election
Your Share of Employer Contributions
Compensation
Forfeitures
Transfers From Qualified Plans (Rollovers)
Directed Investments
Benefits Under Your Plan
Distribution of Benefits Upon Normal Retirement
Distribution of Benefits Upon Early Retirement
Distribution of Benefits Upon Late Retirement
Distribution of Benefits Upon Death
Distribution of Benefits Upon Disability
Distribution of Benefits Upon Termination of Employment
Vesting in Your Plan
Benefit Payment Options
Hardship Distribution of Benefits
Treatment of Distributions From Your Plan
Domestic Relations Order
Pension Benefit Guaranty Corporation
Year Of Service Rules
Year of Service and Hour of Service
1Year Break in Service
Your Plan's "Top Heavy Rules"
Explanation Of "Top Heavy Rules"
Claims By Participants And Beneficiaries
The Claims Review Procedure
Statement Of ERISA Rights
Explanation Of Your ERISA Rights
Amendment And Termination Of Your Plan
Amendment
Termination
American Banks Of Florida, Inc.
401(K) Plan And Trust
Summary Plan Description
Introduction
To Your Plan
American Banks of Florida, Inc. has amended your Profit
Sharing Plan as of January 1, 1994. American Banks of Florida.
Inc. continues to recognize the efforts you have made to its
success. This amended Profit Sharing Plan is for the exclusive
benefit of eligible employees and their beneficiaries.
Your Plan is a "salary reduction plan." It is also
called a "401(k) plan." Under this type of plan, you
may choose to reduce your
compensation and have these amounts contributed to this Plan on
your behalf.
The purpose of this Plan is to reward eligible employees for
long and loyal service by providing them with retirement
benefits.
Between now and your retirement, your Employer intends to make
contributions for you and other eligible employees. When you
retire, you will be eligible to receive the value of the amounts
which have accumulated in your account.
Your Employer has the right to submit this Plan to the
Internal Revenue Service for approval. The Internal Revenue
Service will issue a "determination letter" to your Employer approving this Plan
as a 'qualified" retirement plan, if this Plan meets
specific legal requirements.
This Summary Plan Description is a brief description of your
Plan and your rights, obligations. and benefits under that Plan.
Some of the statements made in this Summary Plan Description are
dependent upon this Plan being "qualified" under the
provisions of the Internal Revenue Code. This Summary Plan
Description is not meant to interpret, extend, or change the
provisions of your Plan in any way. The provisions of your Plan
may only be determined accurately by reading the actual Plan
document.
A copy of your Plan is on file at your Employer's office and
may be read by you, your beneficiaries, or your legal
representatives at any reasonable time. If you have any questions
regarding either your Plan or this Summary Plan Description, you
should ask your Plan's Administrator. In the event of any
discrepancy between this Summary Plan Description and the actual
provisions of the Plan, the Plan will govern.
General Information About Your Plan
There is certain general information which you may need to
know about your Plan. This information has been summarized for
you in this section.
General Plan Information
American Banks of Florida, Inc. 401(k) Plan and Trust is the
name of your Plan.
Your Employer has assigned Plan Number 005 to your Plan.
The amended and restated provisions of your Plan become
effective on January 1, 1994.
Your Plan's records are maintained on a twelvemonth period
of time. This is known as the Plan Year. The Plan Year begins on
January 1st and ends on December 31st.
Certain valuations and distributions are made on the
Anniversary Date of your Plan. This date is December 31st.
The contributions made to your Plan will be held and invested
by the Trustee of your Plan.
Your Plan and Trust will be governed by the laws of the State
of Florida.
Employer Information
Your Employer's name, address and identification number are:
American Banks of Florida. Inc.
2031 Hendricks Avenue
Jacksonville, Florida 32207
591480139
Your Plan allows other employers to adopt its provisions. You
or your beneficiaries may examine or obtain a complete list of
employers, if any, who have adopted your Plan by making a written
request to the Administrator.
Plan Administrator Information
The name. address and business telephone number of your Plan's
Administrator are:
American Banks of Florida. Inc.
2031 Hendricks Avenue
Jacksonville, Florida 32207
(904) 3968100
Your Plan's Administrator keeps the records for the Plan and
is responsible for the administration of the Plan. The
Administrator discretionary authority to construe the terms of
the Plan and make determinations on questions which may affect
your eligibility for benefits. Your Plan's Administrator will
also answer any questions you may have about your Plan.
Plan Trustee Information
The name of your Plan's Trustee is:
American National Bank of Florida. Inc.
The principal place of business of your Plan's Trustee is:
2031 Hendricks Avenue
Jacksonville, Florida 32207
Your Plan's Trustee has been designated to hold and invest
Plan assets for the benefit of you and other Plan participants.
The trust fund established by the Plan's Trustee will be the
funding medium used for the accumulation of assets from which
benefits will be distributed.
Service of Legal Process
The name and address of your Plan's agent for service of legal process are:
American Banks of Florida. Inc.
2031 Hendricks Avenue
Jacksonville, Florida 32207
Service of legal process may also be made upon the Trustee or
Administrator
Participation In Your Plan
Before you become a member or a "participant" in the
Plan, there are certain eligibility and participation rules which
you must meet. These rules are explained in this section.
Eligibility Requirements
You will be eligible to participate in the Plan if you have
completed one (1) Year of Service and have attained age 21. You
should review the Article in this Summary entitled "YEAR OF
SERVICE RULES" for a further explanation of these
eligibility requirements.
Participation Requirements
Once you have satisfied your Plan's eligibility requirements,
your next step will be to actually become a member or a
"participant" in the Plan. You will become a
participant on a specified day of the Plan Year. This day is
called the Effective Date of Participation. You will become a
participant on the earlier of the first day of the Plan Year or
the first day of the seventh month of the Plan Year coinciding
with or next following the date you satisfy your Plan's
eligibility requirements.
Contributions To Your Plan
Employer Contributions to the Plan
Each year, your Employer will contribute to your Plan the following amounts:
(a) The total amount of the salary reduction you elected to defer. (See the Section in this Article entitled "Participant Salary Reduction Election.")
(b) A matching contribution equal to 60% of the amount of the
salary reduction you elected to defer plus a discretionary
percentage of the amount of the salary reduction you elected to
defer, which percentage will be determined each year by the
Employer.
In applying this matching percentage, however, only salary
reductions up to 5% of your compensation will be considered.
You must complete a Year of Service to share in the matching contribution.
(c) On behalf of each participant. a special discretionary contribution equal to a percentage of your compensation, which percentage will be determined each year by the Employer.
You must complete a Year of Service to share in this special contribution.
(d) A discretionary amount in addition to the special
contribution, which amount will be determined each year by your
Employer.
You must complete a Year of Service to share in this contribution.
In determining your eligibility to share in contributions for
the year, there are special rules which apply if your
employment terminates due to your Retirement (Early, Normal or
Late), Total and Permanent Disability or death.
In such cases, you will be eligible to share in the contributions made by your Employer in accordance with the following:
If the reason your employment terminated is due to your
Retirement (Early, Normal or Late), Total and Permanent
Disability or death, then you will be eligible to share in the
contribution for the year without regard to whether you satisfied
the requirements explained above.
Participant Salary Reduction Election
As a participant. you may elect to defer a percentage of your
compensation each year instead of receiving that amount in cash.
However, your total deferrals in any taxable year may not exceed
a dollar limit which is set by law. The limit for 1994 is $9,240.
This limit will be increased in future years for cost of living
changes. The Administrator will notify you of the maximum
percentage you may defer.
The amount you elect to defer will be deducted from your pay in accordance with a procedure established by your Employer and Administrator. The procedure will require that you enter into a written salary reduction agreement after you satisfy the Plan's eligibility requirements. You will be permitted to modify your election during the Plan Year. You are also permitted to revoke your election any time during the Plan Year.
The amount you elect to defer, and any earnings on that amount, will not be subject to income tax until it is actually distributed to you. This money will, however. be subject to Social Security taxes at all times.
You should also be aware that the annual dollar limit is an
aggregate limit which applies to all deferrals you may make under
this plan or other cash or deferred arrangements (including
taxsheltered 403(b) annuity contracts, simplified employee
pensions or other 401(k) plans in which you may be
participating). Generally, if your total. deferral under all cash
or deferred arrangements for a calendar year exceed the annual
dollar limit, the excess must be included in your income for the
year. For this reason, it is desirable to request in writing that
these excess deferrals be resumed to you. If you fail to request
such a return, you may be taxed a second time when the excess
deferral is ultimately distributed from the Plan.
You must decide which plan or arrangement you would like to
have return the excess. If you decide that the excess should be
distributed from this Plan, you should communicate this in
writing to the Administrator no later than the March 1st
following the close of the calendar year in which such excess
deferrals were made. If the entire dollar limit is exceeded in
this Plan or any other plan maintained by the Employer, you will
be deemed to have notified the Administrator of the excess. The
Administrator will then return the excess deferral and any
earnings to you by April 15th.
In the event you receive a hardship distribution from your
deferrals to this Plan or any other plan maintained by your
Employer, you will not be allowed to make additional salary
reductions for a period of twelve ( 12) months after you receive
the distribution. Furthermore, the dollar limitation set by law
with respect to your taxable year following the year in which you
received the distribution, will be reduced by your salary
reductions, if any, for the taxable year of the distribution.
You will always be 100% vested in the
amount you deferred. This means that you will always be entitled
to all of the deferred amount. This money will, however, be
affected by any investment gains or losses. If the Trustee
invested this money and there was a gain, the balance in your
account would increase. Of course, if there was a loss, the
balance in your account would decrease. Your interest in this
account cannot be forfeited for any reason.
Distributions from your deferred account are not permitted before age 59 1/2 EXCEPT in the event of:
(a) death;
(b) disability;
(c) termination of employment; or
(d) reasons of proven financial hardship (See the Section in
the Article entitled "Hardship Distribution of
Benefits").
In addition, if you are a highly compensated employee
(generally owners, officers or individuals receiving wages in
excess of certain amounts established by law), a distribution
from your deferred account of certain excess contributions may be
required to comply with the law. The Administrator will notify
you when a distribution is required.
Your Share of Employer Contributions
Your Employer will allocate the amount you elect to defer to
an account maintained by the Trustee on your behalf. If you are
eligible, your Employer will also allocate the matching
contribution and the special contribution made to the Plan on
your behalf. (See the Section in this Article entitled
"Employer Contributions to the Plan.")
Your Employer's discretionary contribution will be
"allocated" or divided among participants eligible to
share in the contribution for the Plan Year. Your share of the
contribution will depend upon how much compensation you received
during the year and the compensation received by other eligible
participants.
Your share of your Employer s discretionary contribution is determined by the following fraction:
(Employer's Discretionary Contribution) multiplied by (Your
Compensation) divided by (Total Compensation of All Participants
Eligible to Share)
For example: Suppose the Employer's discretionary contribution
for the Plan Year is $20,000. Employee A's compensation for the
Plan Year is $25,000. The total compensation of all participants
eligible to share, including Employee A, is $250,000. Employee
A's share will be:
$20,000 times $25,000 divided by $250,000 = $2,000
In addition to the Employers contributions made to your
account, your account will be credited annually with a share of
the investment earnings or losses of the trust fund.
You should also be aware that the law imposes certain limits
on how much money may be allocated to your account for a year.
These limits are extremely complex but generally no more than the
lesser of $30,000 or 25% of your compensation may be allocated to
you (excluding earnings or losses) in any year. The Administrator
will inform you if these limits have affected you.
Compensation
For the purposes of your Plan. compensation has a special meaning Compensation is defined as your total compensation during a Plan Year that is subject to income tax and is reflected on your W2 Form, but
including your salary reduction contributions to any plan or arrangement maintained by your Employer.
For the first year of your participation in the Plan, your
compensation will be recognized for benefit purposes for the
entire Plan Year.
For Plan Years beginning in 1994, the Plan, by law,
cannot recognize compensation in excess of $150,000. This amount
will be adjusted in future years for cost of living increases. It
will also be applied to certain highly compensated employees and
their family members as if they were a single participant. If you
or a member of your family may be affected by this rule, ask your
Administrator for further details. For any short Plan Year, the
adjusted $150,000 limit will be prorated based upon the number of
full months in the short Plan Year.
Forfeitures
Forfeitures are created when participants terminate employment
before becoming entitled to their full benefits under the Plan.
Your account may grow from the forfeitures of other participants.
Forfeitures will be "allocated" or divided among
participants eligible to share for a Plan Year.
Transfers From Qualified Plans (Rollovers)
At the discretion of the Administrator. you may be permitted
to deposit into your Plan distributions you have received from
other plans. Such a deposit is called a "rollover" and
may result in tar< savings to you. You should consult
qualified counsel to determine if a rollover is in your best
interest.
Your rollover will be placed in a separate account called a "participant's rollover account." The Administrator may establish rules for investment.
You will always be 100% vested in your "rollover
account." This means that you will always be entitled to all
of your rollover contributions. Rollover contributions will be
affected by any investment gains or losses. If the Trustee
invested this money and there was a gain, the balance in your
account would increase. Of course, if there were a loss from an
investment, the balance in your account would decrease.
Directed Investments
The Administrator may establish rules for investment of your
account balance. If the Administrator approves, you may direct
the Trustee as to the investment of your account balance.
Benefits Under Your Plan
Distribution of Benefits Upon Normal Retirement Age.
Your Normal Retirement Date is the first day of the month nearest your Normal Retirement Age.
You will attain your Normal Retirement Age when you reach your 65th birthday.
At your Normal Retirement Age, you will be entitled to 100% of
your account balance. Payment of your benefits will, at
your election, begin as soon as practicable following your Normal
Retirement Date.
Distribution of Benefits Upon Early Retirement
Your Early Retirement Date is the first day of the month
following the date you have attained age 55 and completed 3 Years
of Service with your Employer. You will have completed a Year of
Service if you are credited with 1000 Hours of Service during a
Plan Year, even if you were not employed on the first or last day
of the Plan Year. You may elect to retire when you reach your
Early Retirement Date.
On your Early Retirement Date, you will be entitled to 100% of
your account balance. Payment of your Early Retirement benefits
will begin as soon as practicable following your Early Retirement
Date if you choose to retire on such date.
Distribution of Benefits Upon Late Retirement
You may remain employed past your Plan's Normal Retirement
Date and retire instead on your Late Retirement Date. Your Late
Retirement Dare is the first day of the month coinciding with or
next following the date you choose to retire. after first having
reached your Normal Retirement Date. On your Late Retirement
Date. you will be entitled to 100% of your Account. Actual
benefit payments will begin as soon as practicable following your
Late Retirement Date.
Distribution of Benefits Upon Death
Your beneficiary will be entitled to 100% of your account balance upon your death.
The Administrator may elect to purchase life insurance on your behalf with a portion of' your Employers contribution. Any life insurance purchased shall be used to provide a death benefit for your beneficiaries.
If a life insurance policy is purchased on your behalf with a portion of your Employers contribution made to your account. your account will be reduced by the amount of the premiums and credited with any policy dividends.
If you are married at the time of your death. your spouse will
be the beneficiary of the death benefit. unless you otherwise
elect in writing on a form to be furnished to you by the
Administrator. If you wish to designate a beneficiary other than
your spouse. However. Your spouse must irrevocably consent to
waive any right to the death benefit. Your spouse's
consent must be in writing be witnessed by a notary or a plan
representative and acknowledge the specific nonspouse
beneficiary.
If no valid waiver is in effect, the death benefit payable to
your spouse will be in the form of a survivor annuity, that is,
periodic payments over the life of your spouse. Your spouse may
direct that payments begin within a reasonable period of time
after your death. The size of the monthly payments will depend on
the value of your account at the time of your death. The death
benefit may be distributed in an alternative method, such as a
single lump sum or in installments, provided your spouse consents
in writing to an alternative form.
Generally. the period during which you your spouse may waive
this survivor annuity begins as of the first day of the Plan Year
in which you reach age 35 and ends when you die. The
Administrator must provide you with a detailed explanation of the
survivor annuity. This explanation must be given to you during
the period of time beginning on the first day of the Plan Year in
which you will reach age 32 and ending on the first day of the
Plan Year in which you reach age 35.
It is, therefore, important that you inform the Administrator
when you turn age 32 so that you may receive this information.
If, however,
(a) outlined above, your spouse has validly waived any right to the death benefit in the manner
(b) your spouse cannot be located; or
(c) you are not married at the time of your death,
then your death benefit will be paid to the beneficiary of your own choosing in installments or as a single lump sum, as you or your beneficiary may elect. You may designate the beneficiary on a form to be supplied to you by the Administrator. If you change your designation, your spouse must again consent to the change.
Under a special rule, you and your spouse may waive the
survivor annuity form of payment any time before you turn age 35.
However, any waiver will become invalid at the beginning of the
Plan Year in which you turn age 35, and you and your spouse will
be required to make another waiver.
Regardless of the method of distribution selected, your entire
death benefit must generally be paid to your beneficiaries within
five years after your death (the "5year rule").
However, if your designated beneficiary is a person (instead of
your estate or most trusts), then you or your beneficiary may
elect to have minimum distributions begin within one year or your
death and it may be paid over the designated benefciary's life
expectancy (the "Iyear rule"). If your spouse is the
beneficiary, then under the " 1year rule." the start
of payments may be delayed until the year in which you
would have attained age 70 1/2. The election to have death
benefits distributed under the " Iyear rule" instead
of the "5year rule" must be made no later than the
time at which minimum distributions must commence under the
" Iyear rule" (or, in the case of a surviving spouse,
the "5year rule," if earlier).
Since your spouse has certain rights in the death benefit, you
should immediately report any change in your marital status to
the Administrator.
Distribution of Upon Disability
Under your Plan, disability is defined as a physical or mental condition resulting from bodily injury. disease, or mental disorder which renders you incapable of continuing your usual and customary employment with your Employer. Your disability will be determined by a licensed physician chosen by the Administrator.
If you become disabled while a participant, you will be
entitled to 100% of your account balance. Payment of your
disability benefits will be made to you as if you had retired.
(See the Section in this Article entitled "Benefit Payment
Options.")
Distribution of Benefits Upon Termination of Employment
Your Plan is designed to encourage you to stay with your
Employer until retirement. Payment of your account balance under
your Plan is only available upon your death. disability or
retirement.
If your employment terminates for reasons other than those
listed above. you will be entitled to receive only your
"vested percentage" of your account balance and the
remainder of your account will be forfeited. Only contributions
made by your Employer are subject to forfeiture. (See the Section
in this Article entitled "Vesting in Your Plan.")
If you so elect. the Administrator will direct the Trustee to
distribute your vested benefit to you before the date it would normally be distributed ( upon your
death. disability or retirement If your vested benefit under the
Plan at the time of any prior distribution exceeded $53,500 or
currently exceeds $53,500, you (and your spouse, if you are
married) must give written consent before the distribution may be
made. Also. if you want the distribution to be in a form other
than an annuity payment. you and your spouse must first waive the
annuity form of payment. Amounts of $3,500 or less will be
distributed without the need for consent. (See the Section in
this Article entitled "Benefit Payment Options" for a
further explanation of how benefits are paid from the Plan.)
Vesting in Your Plan
Your vested percentage" in your account is determined
under the following schedule and is based on vesting Years of
Service. You will always, however, be 100%
vested upon your Early or Normal Retirement Age. (See the
Section in this Article entitled "Distribution of Benefits
Upon Normal Retirement.")
Years of Service……Vesting Schedule Percentage
Less than 3…………………………O %
More than
3……………………..100 %
Regardless of this vesting schedule, you are always 100%
vested in your salary reduction amounts contributed to the Plan.
Additionally, you are 100% vested in your Employer's special contributions made to the Plan.
Your vested percentage will not be less than your vested
percentage under the Plan before this amendment and restatement.
Years of Service prior to the time you reached age 18 will not be counted for vesting purposes.
Your vested benefit will normally be distributed to you or
your beneficiary upon your death, disability or retirement. If
you terminate employment before any of these events, however,
your unpaid vested benefit may be segregated in a special
account.
Benefit Payment Options
There are various methods by which benefits may be distributed
to you from your Plan. The method depends on your marital status.
as well as the elections you and your spouse make. All methods of
distribution, however. have equivalent values. The rules under
this Section apply to all distributions you will receive from the
Plan, whether by reason of retirement. termination, or any other
event which may result in a distribution of benefits.
If you are married on the date your benefits are to begin, you
will automatically receive a joint and 50% survivor annuity,
unless you otherwise elect. This means that if you die and are
survived by a spouse, your spouse will receive a monthly benefit
for the remainder of his life equal to 50% of the benefit you
were receiving at the time of your death. You may elect a joint
and 75% or 100%
survivor annuity instead of the standard joint and 50% survivor
annuity. It should be noted that a joint and survivor annuity may
provide a lower monthly benefit than other forms of payment. You
should consult qualified tax counsel before making such election.
If you are not married on the date your benefits are to begin,
you will automatically receive a life annuity, which means you
will receive payments for as long as you live.
You may, however, elect to waive these forms of payment,
subject to the following rules.
When you are about to receive any distribution, the
Administrator will explain the joint and survivor annuity or the
life annuity to you in greater detail. You will be given the
option of waiving the joint and survivor annuity or the life
annuity form of payment during the 90 day period before the
annuity is to begin. If you are married, your spouse must
irrevocably consent in writing to the waiver in the presence of a
notary or a plan representative. You may revoke any waiver. The
Administrator will provide you with forms to make these
elections. Since your spouse participates in these elections, you
must immediately inform the Administrator of any change in your
marital status.
If you and your spouse elect not to take a joint and survivor
annuity, or if you are not married when your benefits are
scheduled to begin and have elected not to take a life annuity,
you may elect an alternative form or' payment. This payment may
be made in one of the following methods:
(a) a single lumpsum payment in cash;
(b) the purchase of a different form of annuity:
(c) equal installments over a period of not more than your assumed life expectancy (or your and your beneficiary's assumed life expectancies) determined at the time of distribution.
Regardless of the form of payment you receive, its value to you will be the same value as each alternative form of payment.
Generally whenever a distribution is to be made to you on or as of an anniversary date. It may be made on such date or as soon thereafter as is practicable. However. Useless you elect in writing to
Defer the receipt of benefits. No distribution may begin later than the 60th day after the close of the plan year in which the latest of the following events occurs:
Plan:
(a) the date on which you reach the age of 65 or your Normal Retirement Age;
(b) the 10th anniversary of the year in which you became a participant in the
(c) the date you terminated employment with your Employer.
Regardless of whether you elect to delay the receipt of
benefits, there are other rules which generally require minimum
payments to begin no later
than the April 1st following the year in which you reach age 70
1/2 You should see the Administrator if you feel you may be
affected by this rule.
Hardship Distribution of Benefits
The Administrator may direct the Trustee to distribute up to 100% of your account balance attributable to your salary reduction election in the even: of immediate and heavy financial need. This hardship distribution is not in addition to your other benefits and will therefore reduce the value of the benefits you will receive at normal retirement.
Withdrawal will be authorized only if the distribution is to
be used for one of the following purposes:
(a) The payment of expenses for medical care (described in Section 213(d) of the Internal Revenue Code) previously incurred by you or your dependent or necessary for you or your dependent to obtain medical care;
(b) The costs directly related to the purchase of your principal residence (excluding mortgage payments);
(c) The payment of tuition and related educational fees for the next twelve ( 12) months of postsecondary education for yourself, your spouse or dependent;
(d) The payment necessary to prevent your eviction from your
principal residence or foreclosure on the mortgage of your
principal residence.
A distribution will be made from your account, but only if you certify and agree that all of the following conditions are satisfied:
(a) The distribution is not in excess of the amount of your immediate and heavy financial need. The amount of your immediate and heavy financial need may include any amounts necessary to pay any federal, state' or local income taxes or penalties reasonably anticipated to result from the distribution;
(b) You have obtained all distributions, other than hardship distributions, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by your Employer;
(c) That your elective contributions and employee contributions will be suspended for at least twelve ( 12) months after your receipt of the hardship distribution; and
(d) That you will not make elective contributions for your
taxable year immediately following the taxable year of the
hardship distribution, except to the extent permitted by the
Plan.
In addition to these rules, there are restrictions placed on
hardship distributions which are made from certain accounts.
These accounts are generally the accounts which receive your
salary reduction contributions and other Employer contributions
which are used to satisfy special rules that apply to 401(k)
plans. Any hardship distribution from these accounts will be
limited, as of the date of distribution, to the balance of such
accounts as of the end of the last Plan Year ending before July
1, 1989, plus your total salary reduction contributions after
such date, reduced by the amount of any previous distributions
made to you from these accounts. Ask your Administrator if you
need further details.
If you wish to receive a hardship distribution from the Plan
in a single payment from your account, you (and your spouse, if
you are married) must first waive the annuity form of payment.
(See the Section in this Article entitled "Benefit
Payment Options" for a further explanation of how benefits
are paid from the Plan.)
Treatment or Distributions From Your Plan
Whenever you receive a distribution from your Plan, it will
normally be subject to income taxes. You may. however, reduce or
defer entirely, the tax due on your distribution through use of
one of the following methods:
(a) The rollover of all or a portion of the distribution to an
Individual Retirement Account (IRA) or another qualified employer
plan. This will result in no tax being due until you begin
withdrawing funds from the IRA or other qualified employer plan.
The rollover of the distribution. however, MUST be made within
strict time frames (normally, within 60 days after you receive
your distribution). Under certain circumstances all or a portion
of a distribution may not qualify for this rollover treatment. In
addition, most distributions will be subject to mandatory federal income tax withholding
at a rate of 20% This will reduce the amount you actually
receive. For this reason. if you wish to rollover all or a
portion of your distribution amount, the direct transfer option
described in paragraph (b) below would be the better choice.
(b) You may request for most distributions that a direct
transfer of all or a portion of your distribution amount be made
to either an Individual Retirement Account (IRA) or another
qualified employer plan willing to accept the transfer. A direct
transfer will result in no tax being due until you withdraw funds
from the IRA or other qualified employer plan. Like the rollover.
under certain circumstances all or a portion of the amount to be
distributed may not qualify for this direct transfer. If you
elect to actually receive the distribution rather than request a
direct transfer, then in most cases 20%
of the distribution amount will be withheld for
federal income tax purposes. If you decide to directly transfer
all or a portion of your distribution amount. you (and your
spouse. if you are married) must first waive the annuity form of
payment. (See the Section in this Article entitled "Benefit
Payment Options" for a further explanation of this waiver
requirement.)
(c) The election of favorable income tax treatment under
"10year forward averaging," "5year forward
averaging" or, if you qualify, "capital gains"
method of taxation.
Whenever you receive a distribution. The administrator will
deliver to you a more detailed explanation of these options
however. The rules which determine whether you qualify for
favorable tax treatment are very complex. You should consult with
qualified tax counsel before making a choice.
Domestic Relations Order
As a general rule, your interest in your account, including
your "vested interest," may not be alienated. This
means that your interest may not be sold, used as collateral for
a loan, given away or otherwise transferred. In addition, your
creditors may not attach, garnish or otherwise interfere with
your account.
There is an exception, however, to this general rule. The
Administrator may be required by law to recognize obligations you
incur as a result of court ordered child support or alimony
payments. The Administrator must honor a "qualified domestic
relations order." A "qualified domestic relations
order" is defined as a decree or order issued by a court
that obligates you to pay child support or alimony, or otherwise
allocates a portion of your assets in the Plan to your spouse,
former spouse, child or other dependent. If a qualified domestic
relations order is received by the Administrator, all or a
portion of your benefits may be used to satisfy the obligation.
The Administrator will determine the validity of any domestic
relations order received.
Pension Benefit Guaranty Corporation
Benefits provided by your Plan are NOT insured by the Pension
Benefit Guaranty Corporation (PBGC) under Title IV of the
Employee Retirement Income Security Act of 1974 because the
insurance provisions under ERISA are not applicable to your Plan.
Year Of Service Rules
Year of Service and Hour of Service
The term "Year of Service" is used throughout this
Summary Plan Description and throughout your Plan. A Year of
Service for eligibility purposes is defined as follows:
You will have completed a Year of Service if, at the end of
your first twelve consecutive months of employment with your
Employer, you have been credited with 1000 Hours of Service.
If you have not been credited with 1000 Hours of Service by
the end of your first twelve consecutive months of employment.
you will have completed a Year of Service at the end of any
following Plan Year during which you were credited with 1000
Hours of Service.
You will have completed a Year of Service for vesting purposes
if you are credited with 1000 Hours of Service during a Plan
Year. even if you were not employed on the first or last day of
the Plan Year.
You will have completed a Year of Service for purposes of
sharing in Employer contributions if you are credited with 1000
Hours of Service during a Plan Year.
Also, for the purposes of the Plan. your Years of Service with
American National Bank of Florida will be recognized.
For purposes of determining whether you have completed a Year
of Service where the computation period is based upon a short
Plan Year, your Administrator will notify you of the number of
the Hours of Service that are required and the method of
calculating a Year of Service.
An "Hour of Service" has a special meaning for Plan
purposes. You will be credited with an Hour of Service for:
(a) each hour for which you are directly or indirectly compensated by your Employer for the performance of duties during the Plan Year;
You will not be credited for the same Hours of Service both
under (a, or (b), as the case may be, and under (c).
1Year Break in Service
A 1Year Break in Service is a computation period during which you have not completed more than 500 Hours of Service with your Employer.
A 1Year Break in Service does NOT occur, however, in the computation period in which you enter or leave the Plan for reasons of:
(a) an authorized leave of absence:
(b) certain maternity or paternity absences.
The Administrator will be required to credit you with Hours of
Service for a maternity or paternity absence. These are absences
taken on account of pregnancy, birth. or adoption of your child.
No more than 501 Hours of Service shall be credited for this
purpose and these Hours of Service shall be credited solely to
avoid your incurring a 1Year Break in Service. The
Administrator may require you to furnish proof that your absence
qualifies as a maternity or paternity absence.
Your Plan's "Top Heavy Rules"
Explanation of "Top Heavy Rules"
A 401(k) Profit Sharing Plan that primarily benefits "key employees" is called a "top heavy plan." Key employees are certain owners or officers of your Employer. A Plan is a "top heavy plan" w hen more than 60% of the contributions or benefits have been allocated to key employees.
Each year, the Administrator is responsible for determining
whether your Plan is a "top heavy plan."
If your Plan becomes top heavy in any Plan Year, then nonkey and key employees will be entitled to certain "top heavy minimum benefits," and other special rules will apply. Among these top heavy rules are the following:
(a) Your Employer may be required to make a contribution equal to 3% of your compensation to your account;
(b) If you are a participant in more than one Plan, you may
not be entitled to minimum benefits under both Plans.
Claims By Participants And Beneficiaries
Benefits will be paid to participants and their beneficiaries
without the necessity of formal claims. You or your
beneficiaries, however, may make a request for any Plan benefits
to which you may be entitled. Any such request must be made in
writing, and it should be made to the Administrator. (See the
Article in this Summary entitled "General Information About
Your Plan.")
Your request for Plan benefits shall be considered a claim for
Plan benefits, and it will be subject to a full and fair review.
If your claim is wholly or partially denied, the Administrator
will furnish you with a written notice of this denial. This
written notice must be provided to you within a reasonable period
of time (generally 90 days) after the receipt of your claim by
the Administrator. The written notice must contain the following
information:
(a) the specific reason or reasons for the denial;
(b) specific reference to those Plan provisions on which the denial is based;
(c) 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
(d) appropriate information as to the steps to be taken if you
or your beneficiary wishes to submit your claim for review.
If 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 stage described in the following
paragraphs.
If your claim has been denied, and you wish to submit your
claim for review, you must follow the Claims Review Procedure.
The Claims Review Procedure
(a) Upon the denial of your claim for benefits, you may file your claim for review, in writing, with the Administrator.
(b) you must file the clam for review no later than 60 days after you have received written no l ification of the denial of your claim for benefits s. Or if no written denial of your claim was provided, no later than 60 days after the deemed denial of your claim.
(c) You may review all pertinent documents relating to the denial of your claim and submit any issues and comments' in writing, to the Administrator
(d) Your claim for review must be given a full and fair review. If your claim is denied. the Administrator must provide you with written notice of this denial within 60 days after the Administrator's receipt of your written claim for review. There may be times when this 60 day period may be extended. This extension may only be made, however, where there are special circumstances
which are communicated to you in writing within the 60 day period. If there is an extension, a decision shall be made as soon as possible, but not later than 120 days after receipt by the Administrator of your claims for review.
(e) The Administrator's decision on your claim for review will be communicated to you in writing and will include specific references to the pertinent Plan provisions on which the decision was based.
(f) If the Administrator's decision on review is not furnished to you within the time limitations described above, your claim will be deemed denied on review.
(g) If benefits are provided or administered by an insurance
company, insurance service. or other similar organization which
is subject to regulation under the insurance laws. the claims
procedure relating to these
benefits may provide for review. If so, that company, service. or
organization will be the entity to which claims are addressed. If
you have any questions regarding the proper person or entity to
address claims, you should ask the Administrator.
Statement Of Erisa Rights
Explanation of Your ERISA Rights
As a participant in this Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, also called ERISA. ERISA provides that all Plan participants are entitled to:
(a) examine, without charge, all Plan documents, including:
- insurance contracts:
- collective bargaining agreements; and
- copies of all documents filed by the Plan with the U.S.
Department of Labor, such as derailed annual reports and Plan
descriptions.
This examination may take place at the Administrator's office
and at other specified employment locations of the Employer. (See
the Article in this Summary entitled "General Information
About Your Plan");
(b) obtain copies of all Plan documents and other Plan
information upon written request to the Plan Administrator. The
Administrator may make a reasonable charge for the copies;
(c) receive a summary of the Plan's annual financial report.
The Administrator is required by law to furnish each participant
with a copy of this summary annual report;
(d) obtain a statement telling you whether you have a right to
receive a retirement benefit at Normal Retirement Age and, if so,
what your benefits would be at Normal Retirement Age if you stop
working under the Plan now. If you do not have a right to a
retirement benefit. the statement will tell you how many years
you have to work to get a right to a retirement benefit. This
statement must be requested in writing and is not required to be
given more than once a year. The Plan must provide the statement
free of charge.
In addition to creating rights for Plan participants, ERISA
imposes duties upon the people who are responsible for the
operation of the 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 or any other
person, may fire you or otherwise discriminate against you in any
way to prevent you from obtaining a pension benefit or exercising
your rights under ERISA.
If your claim for a retirement benefit is denied in whole or
in part, you must receive a written explanation of the reason for
the denial. You have the right to have the Administrator review
and reconsider your claim. (See the Article in this Summary
entitled "Claims By Participants And
Beneficiaries.")
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and pay you up to $100.00 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator.
If you have a claim for benefits which is denied or ignored,
in whole or in part, you may file suit in a state or
federal court.
If the Plan's 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 if,
for example, it finds your claim is frivolous.
If you have any questions about this statement, or about your
rights under ERISA, you should contact the nearest Area Office of
the U.S. LaborManagement Services Administration, Department of
Labor.
Amendment And Termination Of Your Plan
Amendments
Your Employer has the right to amend your Plan at any time. Any such amendment shall be adopted by formal action of the Employer's board of directors and executed by an officer authorized to act on behalf of the Employer. In no event, however, will any amendment:
(a) authorize or permit any part of the Plan assets to be used for purposes other than the exclusive benefit of participants or their beneficiaries; or
(b) cause any reduction in the amount credited to your
account.
Termination
Your Employer has the right to terminate the Plan at any time.
Upon termination, all amounts credited to your accounts will
become 100% vested. A complete discontinuance of contributions by
your Employer will constitute a termination.