The CNA 401(k) Plus Plan - cache.hacontent.com

1 the cna 401 (k) plus plan Summary plan Description Effective January 1, 2019 the cna 401 (k) plus plan Important Note: This document is the Summary plan Description (SPD) of the cna 401 (k) plus plan (formerly known as the CNA Savings and Capital Accumulation plan ) under the Employee retirement Income Security Act of 1974 (ERISA). It generally describes the benefits provided under the plan . It does not attempt to cover every detail concerning the plan . The terms of the plan are contained in the applicable plan document. In the event that a provision in this SPD conflicts with the terms and provisions of the official plan document, the terms of the plan document will govern. You may obtain a copy of the plan document by writing to the plan Administrator at CNA, 151 N. Franklin Street 18th floor, Chicago, IL 60606.

2 The plan Administrator may make a reasonable charge for the copies. Nothing in this SPD is intended to be interpreted as a promise or guarantee of future or continued employment or as stating provisions and terms of employment. Continental Casualty Company (the Company ) and its employees recognize their mutual right to end their employment relationship at any time and acknowledge that such relationship is one of employment at will. Except with respect to employment at will, the Company reserves the right to change (including, but not limited to, the right to amend, suspend, or terminate) its personnel policies, procedures, and benefits, including this plan . It also reserves the right to make exceptions to its Human Resources policies and procedures, at its discretion, at any time without notice. The policies and benefits described in this SPD may vary by affiliate, employee groups, or business segments, as well as from location to location.

3 No representative of the Company has authority to make any agreement contrary to the provisions of any CNA employee benefit plan . Other important information about the plan is included in the Benefits at CNA chapter entitled General Information. If you have access to the CNA intranet, you may print this SPD directly by logging on to the Your Benefits Resources link on Inside CNA > Human Resources > Benefits and Wellness > General Benefits (or ). You may request a paper copy at no charge by contacting the plan Administrator. See Statement of ERISA Rights on page 42. Contents Topic Page Introduction .. 1 Your 401(k) plus plan , at a Glance .. 2 CNA 401(k) plus plan 2 3 Eligibility 3 How to Enroll 3 Naming a Beneficiary 4 If You Are Rehired 5 If You Transfer to an Affiliate of the Company or Loews 6 Situations That May Affect Your Account 6 Your Employee Contributions 7 Before-Tax Contributions 8 Roth Contributions 9 Catch-Up Contributions 9 After-Tax Contributions 10 Contribution Limits 10 Making Up Contributions After Military Service 11 How to Stop, Start, or Change Contributions 11 Rollover Contributions 12 Company Contributions 12 Basic Contributions 12 Company Matching Contributions 12 Performance Contributions 14 Company Contributions after Military Service 14 Vesting.

4 16 Vesting Service 16 Other Vesting Features 17 Reinstating Your Vesting Service 17 Forfeitures 17 Your Investment Options ..18 Investment Fund Pricing Information 19 Making Your Investment Choices 19 Changing Your Investment Allocation 20 What Is Investment Risk? 20 Alight Financial Advisors 20 Borrowing From Your Accounts ..22 How Much You Can Borrow 22 Loan Repayments 22 Loan Default/Deemed Distribution 23 Applying for a Loan 24 Withdrawals from Your Account 25 After-Tax/Rollover Contributions In-Service Non-Hardship Withdrawal 27 Age 59 Withdrawals In-Service Age 59 Withdrawal 27 Company Matching Contributions 28 Before-Tax and Roth 401(k) Contributions Hardship Withdrawal 28 Before-Tax and Roth 401(k) Contributions Active Military Duty 29 Tax Considerations 29 Requesting a Withdrawal 30 How a Withdrawal Reduces Future Growth 30 Distribution of Your Account 30 How Distributions Are Taxed 31 Rollovers 32 Age 70 Distributions 32 Special Rules for Former Participants in the CNA Surety 401(k) Additional Important Information.

5 36 plan Name, Type, and Number 36 plan Trustee 36 plan Administrator 36 plan Sponsor and Employers 36 Agent for Service of Legal Process 36 How the plan Is Funded 37 Right of Recovery 37 plan Records 37 plan Fees 37 plan Amendment and Termination 37 Nondiscrimination Rules 38 Top-Heavy Rules 38 The Pension Benefit Guaranty Corporation 39 Assigning Your Benefits 39 Effect on Other Company Plans 39 Requesting a Review of a Denied Claim ..40 Statement of ERISA Rights ..42 Receive Information About Your plan and Benefits 42 Prudent Actions by plan Fiduciaries 42 Enforce Your Rights 42 Assistance with Your Questions 43 Appendix A - Summary of Investment Fund Options Appendix B - 401(k) plus plan Transfer Restrictions Introduction No matter how far off retirement is for you, it s important to start thinking about it now.

6 When you re thinking about retirement , consider these facts: Living 25 or 30 years after retirement is no longer unusual. What a dollar buys today will probably be reduced in 10, 20, or 50 years due to inflation. Health care costs continue to rise, and the future of government programs that contribute to the support of senior citizens is uncertain. As a rule of thumb, financial experts say you will need an annual income equal to about 60% to 80% of your pre- retirement annual income. The Treasury estimates that Social Security may provide only about 20% of a retiree s annual income. Therefore, to have the financial independence to enjoy your retirement to the fullest, you will need to supplement your retirement income through personal savings. For most people, tax-deferred plans like the cna 401 (k) plus plan ( 401(k) plus plan or the plan ), may be the best way to accumulate personal savings.

7 The 401(k) plus plan is sponsored by Continental Casualty Company for the benefit of its eligible employees. The plan is designed to make saving for your future easy and convenient. You choose how much to contribute and how to invest your money among the plan s investment funds. Although the plan is designed for long-term savings, loans and limited withdrawal options are available. Best of all, when you save through the plan , the Company contributes extra money to your account. The time to begin planning your financial future is now. Although it is never too late to start saving, the earlier you begin, the longer your money has to grow and that means a greater opportunity for future income. 1 Your 401(k) plus plan , at a Glance Here is a quick look at all the ways that the plan makes it easier to save for your future!

8 CNA 401(k) plus plan Basic Contributions Employee Contributions Company Matching Contributions Performance Contributions Company contributes 3% of Total Pay each pay period (5% when you are age 45 or older) whether or not you are contributing to the plan . You may contribute from 1% to 50% of Base Pay on a before-tax, Roth 401(k), or after- tax basis. Company matches $ on every dollar you save each pay period, up to 6% of Base Pay. 1 Company contributes 0% 2% of Total Pay to your account annually, whether or not you are contributing to the plan . Not dependent upon the Company s financial performance. Contributions made on a before-tax basis reduce your current taxes. Additional match of $0 to $ annually, based on the Company s business performance. 1 Based on the Company s business performance. Contributions vest at the rate of 20% for each year of service.

9 Employees over age 50 by the end of the year may also make catch-up contributions any time during the year. Contributions vest at the rate of 20% for each year of service. Contributions vest at the rate of 20% for each year of service. For purposes of the 401(k) plus plan : Base Pay for employee contributions and Company Matching contributions includes regular base salary, overtime, any paid sales incentives, and tax-deferred contributions made to the plan . It also includes other before-tax contributions such as health, spending account, and transit account contributions. It does not include any bonuses, commissions, other forms of incentive compensation, short term disability pay, purchased paid-time off (PTO Buy), any lump-sum payments of unused paid time off (PTO) days, or severance payments, and after April 1, 2013, all payments made pursuant to the Supplemental Unemployment Benefit plan .

10 Total Pay for the Company s Basic and Performance contributions includes the same items listed above for employee and Company Matching contributions plus eligible annual or other short-term incentive and performance bonuses (but not long term incentive or equity grants). 1 During your first year of employment, you receive 50% of any match. 2 Participation All full-time employees are automatically enrolled in the plan following 31 days of eligibility. (Part-time employees may be eligible to enroll after one year of service, if they have worked 1,000 hours in that year.) Eligibility You are eligible to participate in the 401(k) plus plan if you are: A full-time employee of the Company. A part-time employee of the Company (including interns, temporary employees or other employees hired for a specified period of time) on the first day of the first pay cycle after completing 12 months of service if you have worked 1,000 hours within those 12 months.