middlesex retirement savings and investment 403(b) plan ......if you do not want to participate in...

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Middlesex Health System

Middlesex Retirement Savings and

Investment Plan

Summary Plan Description

Amended and Restated Effective January 1, 2020

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Table of Contents

ELIGIBILITY ........................................................................................................................ 2

ENROLLMENT .................................................................................................................... 2

Choosing Investment Funds ................................................................................................. 3

Naming a Beneficiary ........................................................................................................... 3

Key Definitions ..................................................................................................................... 4

CORE CONTRIBUTIONS .................................................................................................... 5

Example 1 – Core Contribution ............................................................................................ 7

Example 2 – Core Contribution ............................................................................................ 7

Becoming Vested in the Core Contribution ........................................................................... 8

If You Are Rehired ................................................................................................................ 8

VOLUNTARY CONTRIBUTIONS ........................................................................................ 8

Pre-tax Contribution Limits ................................................................................................... 9

Changing Your Contribution Rate ....................................................................................... 10

Rollover Contributions ........................................................................................................ 10

Becoming Vested in Your Voluntary Contributions ............................................................. 10

MATCHING CONTRIBUTIONS ......................................................................................... 10

Example 1 – Matching Contribution .................................................................................... 11

Example 2 – Matching Contribution .................................................................................... 11

Becoming Vested in the Matching Contribution .................................................................. 12

INVESTMENT OPTIONS ................................................................................................... 12

Middlesex Health System ii

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Investment Management Fees ........................................................................................... 13

Changing Investments........................................................................................................ 13

LOANS AND WITHDRAWALS WHILE EMPLOYED ......................................................... 14

Loans ................................................................................................................................. 14

Withdrawals While Actively Employed ................................................................................ 16

PAYMENT OPTIONS WHEN YOU LEAVE OR RETIRE ................................................... 19

Rollovers ............................................................................................................................ 20

Minimum Distributions ........................................................................................................ 20

Taxes on Your Payment ..................................................................................................... 21

IF YOU BECOME DISABLED ........................................................................................... 21

IF YOU DIE ........................................................................................................................ 22

HOW YOU MAY LOSE BENEFITS .................................................................................... 23

LEAVES OF ABSENCE .................................................................................................... 23

Continuation of Participation While on Approved Leaves of Absence ................................. 24

Continuation of Participation for Employees in the Uniformed Services (USERRA) ............ 24

Continuation of Participation While on a Family and Medical Leave (FMLA) ...................... 25

YOUR RIGHT TO APPEAL ............................................................................................... 25

Time Frame for Claim Determinations ................................................................................ 25

If You Receive an Adverse Benefit Determination .............................................................. 26

Procedures for Appealing an Adverse Benefit Determination ............................................. 26

YOUR RIGHTS UNDER ERISA ......................................................................................... 28

Receive Information About Your Plan and Benefits ............................................................ 28

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Prudent Actions by Plan Fiduciaries ................................................................................... 29

Enforce Your Rights ........................................................................................................... 29

Assistance With Your Questions ........................................................................................ 30

PLAN ADMINISTRATION ................................................................................................. 30

Plan Name ......................................................................................................................... 31

Plan Sponsor and Administrator ......................................................................................... 31

Type of Administration........................................................................................................ 31

Agent for Service of Legal Process .................................................................................... 31

Annuity Contract and Custodial Account Vendors .............................................................. 31

Identification Numbers........................................................................................................ 32

Plan Year ........................................................................................................................... 32

Plan Type and Funding ...................................................................................................... 32

Collective Bargaining Agreements ..................................................................................... 32

Plan Expenses ................................................................................................................... 32

Plan Document .................................................................................................................. 33

The Hospital’s Right to Amend or Terminate the Plan ........................................................ 33

Pension Benefit Guaranty Corporation ............................................................................... 33

Limitation on Assignment ................................................................................................... 34

Qualified Domestic Relations Order ................................................................................... 34

Plan Interpretation .............................................................................................................. 34

Receiving Advice ................................................................................................................ 35

Your Employment ............................................................................................................... 35

MIDDLESEX HEALTH SYSTEMS VISITING NURSE ASSOCIATION……...………………35

Middlesex Health System 1

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Middlesex Health System, Inc. (the “Hospital”) established the Middlesex Retirement

Savings and Investment Plan (the “Plan”) effective January 1, 2009. There are two

participating employers under the Plan: Middlesex Health System, Inc. and MHS Primary

Care, Inc. (“MHPC”). Under the Plan, your participating employer (that is, the Hospital or

MHPC, as applicable) contributes to your retirement income and you have flexibility and

control over your retirement benefits. Once you become eligible to participate in the Plan, a

“retirement account” is established for you under the Plan that can grow with:

An automatic core contribution from the Hospital or MHPC, as applicable, as long as

you meet the eligibility requirements;

Your own contributions to the Plan;

An automatic matching contribution from the Hospital or MHPC, as applicable, when

you contribute to the Plan; and

Investment earnings – on your own contributions as well as the Hospital’s or MHPC’s, as

applicable, core and matching contributions – based on your investment elections.

This booklet summarizes the main provisions of the Middlesex Retirement Savings and Investment Plan, effective January 1, 2020, and serves as the summary plan description (SPD) for these benefits. It describes the benefits as they apply to eligible employees. The Guide to Investment Fees for the Middlesex Retirement Savings and Investment Plan is incorporated to this booklet by reference and is considered part of this SPD for disclosure purposes. Middlesex Health Visiting Nurses Association Employees (VNA) may have provisions in the Plan that will differ from Middlesex Health System Employees. These differences are notated with an asterisk (*). The VNA plan provisions are identified on page 34 of this SPD. Please read this SPD, the Guide, and any investment information provided by Voya Financial carefully before making your contribution and investment decisions. If you have any questions about your benefits, please contact Human Resources. Note that this SPD is only a summary. Complete details of the Plan are contained in the legal Plan document. If there is any difference between the information in this SPD and in the legal Plan document, the Plan document will govern.


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ELIGIBILITY*

All active employees, including per diem employees of the Hospital and MHPC (excluding

One MacDonough Place and Homecare Department bargaining unit employees) are eligible

to participate in the Plan. You may begin making voluntary contributions to the Plan – and

receive matching contributions from the Hospital or MHPC, as applicable – on the first of

the month following 30 days of employment.

You become eligible for the Hospital’s or MHPC’s core contribution on the anniversary of

your date of hire. Once eligible, annual eligibility will be based upon whether you earn at

least 1,000 hours of service in a calendar year. (See the “Core Contributions” section for

more information.)

ENROLLMENT*

To encourage all employees to save for the future, you will be automatically enrolled at a

contribution rate equal to 4% of your eligible pay when you are first eligible to participate in

the Plan. This rate ensures that you receive the maximum matching contribution from the

Hospital or MHPC (see below). You can increase, decrease or suspend your contributions to

the Plan at any time, by logging onto your Infor Employee Space account and choosing Life

Events under the Benefits menu.

If you do NOT want to participate in the Plan, you must log into your Infor Employee Space

account within 30 days of your hire date to indicate that you want to contribute 0% and opt-

out. If you further decide that you would like to have salary deferrals made under the Plan’s

automatic contribution program refunded to you from the Plan, you can do so by:

Returning to Human Resources a completed Automatic Contribution Arrangement

(Automatic Enrollment) Permissible Withdrawal form.

Stopping your contributions by logging into your Infor Employee Space account and

choosing Life Events under the Benefits menu and indicate that you want to contribute

0%. The completed forms must be received by Human Resources within 60 days of the

first payroll date that included automatic deferrals. Your election will go into effect no


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later than the last day of the payroll period that begins after the contribution was

requested to be stopped and all salary deferrals made from your paycheck up through

processing will be refunded to you (accounting for any gain/loss experience on those

deferrals) from the Plan. In addition, you will forfeit any associated Hospital or MHPC

matching contributions made to your Plan account. The refunded deferrals will be subject

to tax reporting for the calendar year in which they are refunded.

Choosing Investment Funds

You will be automatically enrolled with Voya Financial on the first of the month following

30 days of employment. If you do not make an investment selection at this time, your

contributions will be placed in a Vanguard Target Date Retirement Fund based on your date

of birth. You may change this default investment at any time by logging into your Voya

Account at www.VoyaRetirementPlans.com or by contacting the Voya Resource Center at

800-584-6001.

Naming a Beneficiary

You should also name a beneficiary for your retirement account under the Plan. Your

beneficiary is the person who will receive your account if you die before receiving payment.

To elect a beneficiary, you must log into your Voya Account at

www.VoyaRetirementPlans.com or by contacting the Voya Resource Center at 800-584-

6001. You may change your beneficiary at any time by contacting Voya.

If you are married and you want to name someone other than your spouse as your

beneficiary, you must obtain your spouse’s written consent in compliance with Plan rules.

Please note that if you are unmarried, name a beneficiary and subsequently marry, your prior

designation is invalid and your spouse will be your beneficiary, unless you obtain proper

spousal consent to a different beneficiary. The most recent, properly executed beneficiary

designation form on file with the Plan Administrator when you die will govern the

disposition of your benefits. If there is no valid beneficiary form on file with the Plan

Administrator when you die, your spouse (if you are married) or your estate (if you are

single) will automatically become your beneficiary.


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Key Definitions

The terms below are used throughout this SPD and have specific meanings under the Plan.

Account balance is the current value of the retirement income (your contributions, the

Hospital’s and MHPC’s contributions and investment returns) you have accumulated under

the Plan.

Core contribution is the contribution that the Hospital or MHPC, as applicable, makes to

your Plan account each year based on your age and years of service. You must meet the

initial and annual eligibility requirements to receive a core contribution.

Covered pay is used to determine your core contribution and means your regular base salary

or wages, differential military pay, performance bonuses, accrued vacation, paid time off

(PTO) and holiday time, plus any pre-tax contributions you make to the Plan or any other

benefit program at the Hospital or MHPC. For purposes of determining the core contribution,

the following amounts are NOT included in covered pay: all other amounts of salary or

wages that are paid as premiums for holiday, shift, overtime or weekends, charge pay,

employment bonuses, premiums paid for working consecutive weekends and other premiums

that are not part of your base salary or wages. Federal limits will apply to the pay that can be

considered covered pay.

Eligible pay is used to determine the voluntary contributions you can make and the

matching contributions you will receive from the Hospital or MHPC, as applicable. For these

purposes, eligible pay means all cash compensation for services to the Hospital or MHPC, as

applicable, including salary, wages, fees, commissions, differential military pay,

performances bonuses and overtime pay, plus any pre-tax contributions you make to the Plan

or any other benefit program at the Hospital or MHPC. Eligible pay only includes applicable

pay (described above) which is actually paid (or payable, but for an applicable pre-tax

election) to you during plan years prior to your severance from employment, and shall NOT

include any amounts deferred, or received from, a nonqualified deferred compensation

arrangement. Federal limits will apply to the pay that can be considered eligible pay.


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Hours of service mean the hours you are paid or entitled to payment from the Hospital or

MHPC for duties performed. Hours also include time due to vacation, holiday, illness,

incapacity, layoff, jury duty, military duty or leave of absence even though no duties are

performed (limited to no more than 501 hours for any single continuous period during which

no duties are performed). Note that hours attributable to a particular calendar year are

determined beginning with the bi-weekly payroll period that begins immediately prior to the

calendar year and ending with the bi-weekly payroll that ends immediately prior to the last

day of that calendar year. Hours are important for determining your annual eligibility for a

core contribution, the amount of this contribution, and your vesting status for the core

contribution. Donated time is excluded.

Matching contribution is the contribution that the Hospital or MHPC, as applicable, makes

to your account based on your own contributions to the Plan.

Vesting means that you have a right to your benefit when you retire or terminate your

employment with the Hospital or MHPC. You are always vested in your own contributions

to the Plan. Vesting for the core contribution and the matching contributions is based on your

service with the Hospital and MHPC and is defined in the “Core Contributions” and

“Matching Contributions” sections.

Years of employment are used to determine your vesting status for the matching

contribution.

Years of service are used to determine the amount of your core contribution and your

vesting status for the core contribution.

CORE CONTRIBUTIONS*

You are eligible to receive an automatic core contribution from the Hospital or MHPC, as

applicable, each plan year if you:

Have completed one year of service for eligibility; and

Work at least 1,000 hours during that plan year; and


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Are actively employed on December 31 of that plan year.

One year of service for eligibility purposes means that you are employed on the anniversary

of your date of hire. That is, if you became an employee on June 1st, you would have one

year of service for eligibility purposes on the following June 1st.

It is important to note that you may have worked 1,000 hours during your first 12 months of

employment, but you also must both be employed on the anniversary of your date of hire and

be credited with 1,000 hours of service during the plan year containing your one-year

anniversary in order to receive a core contribution for that first plan year.

For example, if you were hired on June 1, 2020 and remain employed through December 31,

2020 and are further credited with 1, 000 hours of service during 2020, you will have met the

initial eligibility requirement, the annual 1,000 hour requirement for 2020, as well as the end

of year employment requirement for 2020. In this case, your eligible pay commencing with

initial eligibility, from June 1, 2020 through year end, would be used to calculate your 2020

core contribution.

You do not need to be making voluntary contributions to the Plan to be eligible to receive the

core contribution. If you retire, experience a severance from employment while on disability,

or die during the plan year, you are still eligible for the core contribution for that plan year,

regardless of the year-end employment requirement and your actual hours.

The Hospital or MHPC, as applicable, determines your core contribution based on your age

plus your years of service. Beginning January 1, 2010, hours of service are determined by the

definition above. However, any years of credited service you earned before 2010 under the

Middlesex Health System Pension Plan count in the determination of years of service for the

core contribution.


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Your core contribution equals a percentage of your covered pay, as shown in the chart

below.

THE CORE CONTRIBUTION PROVIDED BY THE HOSPITAL OR MHPC, AS APPLICABLE

If Your Age + Service on December 31 Equals

Your Core Contribution Will Equal This % of Your Covered Pay

Less than 40 2.0%

40 – 49 3.0%

50 – 59 4.0%

60 – 69 5.0%

70 or more 6.0%

As you can see, as you get closer to retirement, the core contribution increases.

Your core contribution from the Hospital or MHPC, as applicable, is determined as of

December 31. For example, your 2020 core contribution will be determined according to

your age and years of service on December 31, 2020.

Example 1 – Core Contribution

So, if you are age 35 and have one year of service with the Hospital or MHPC, your core

contribution would equal 2% of your covered pay. If your covered pay equals $40,000, the

Hospital’s or MHPC’s core contribution, as applicable, equals $800 for that plan year.

$40,000 x .02 = $800

Example 2 – Core Contribution

If you are age 40 and have five years of service with the Hospital or MHPC, your core

contribution equals 3% of your covered pay. If your covered pay equals $60,000, the

Hospital’s or MHPC’s core contribution, as applicable, equals $1,800 for that plan year.

$60,000 x .03 = $1,800


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Becoming Vested in the Core Contribution*

You become 100% vested in the core contributions after three years of service. Being vested

means that you have a right to receive the value of these contributions whenever you

terminate your employment or retire. For vesting purposes, you must earn at least 1,000

hours of service during a plan year to earn a year of service. You also earn vesting service

for any years of credited service you earned before 2010 under the Middlesex Health System

Pension Plan.

You would also become 100% vested in the value of your core contributions if you reach age

65, die while actively employed, or if your employment terminates while on disability,

regardless of your years of service.

If You Are Rehired

If your employment with the Hospital or MHPC terminates and you are later re-employed by

the Hospital or MHPC, all prior service used for calculating the core contribution will be lost

if you return to employment more than one year following termination.

If you leave the Hospital or MHPC before earning three years of vesting service and return to

employment after being absent for five or more years, the vesting service you accumulated

prior to termination of employment will be forfeited for the purposes of the core

contributions. You will also forfeit the value of any non-vested core contributions you had

received while previously employed.

VOLUNTARY CONTRIBUTIONS

You may elect to make your own voluntary contributions to the Plan. You are eligible to

begin making voluntary contributions to the Plan as of the first payroll period following your

date of hire.

When you make voluntary pre-tax contributions, these contributions are deducted from your

pay before income taxes are withheld, so you do not pay current federal or state income taxes

on your contributions. As a result, you save on taxes while you save for your future.


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Pre-tax Contribution Limits

You may save up to 100% of your available eligible pay, up to the IRS limits on pre-tax

contributions. For 2020, the Internal Revenue Code limit on voluntary pre-tax contributions

is $19,500. If you will be at least age 50 by December 31, you may make an additional

catch-up contribution ($6,500 for 2020). If you have at least 15 years of service (regardless

of your age), you may be eligible to make additional catch-up contributions. These limits

may be updated in the future. Please see Human Resources or your financial advisor for the

latest limits.

Your pre-tax contributions are subject to an annual limit as described above. This limit

applies to all pre-tax or “tax-deferred” contributions you make to the Plan and to a similar

plan of any other employer in the same calendar year. The Hospital or MHPC will monitor

your pre-tax contributions to the Plan so that you will not exceed the limit. However, if you

contribute to the plan of any other employer, it is your responsibility to monitor compliance

with this limitation.

If you exceed the limit due to participation in the plan of another employer, you may elect to

have your excess pre-tax contributions returned to you from the Plan. To do so, you must

provide a written request to the Plan Administrator by no later than March 1 following the

end of the year in which the excess contributions were made. Your written request must state

the reason for the return of contributions and the refund amount you are requesting. Upon the

Plan Administrator’s approval of your request, the excess contributions will be returned to

you.

Any excess contributions are taxed in the year of contribution, while associated earnings are

taxed in the year of distribution. If not distributed to you before April 15 following the year

in which they were contributed, excess contributions will be taxed twice – once in the year of

contribution and again in the year of distribution.

Please note that only federal and most state and local income taxes on pre-tax contributions

are deferred. Your pre-tax contributions to the Plan are subject to Social Security and

Medicare taxes paid by you and the Hospital or MHPC.


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Changing Your Contribution Rate

You can increase, decrease or suspend contributions to the Plan by logging onto your Infor

Employee Space account and choosing Life Events under the Benefits menu.

Rollover Contributions

If you participated in a qualified retirement plan through another employer, you may roll that

money into the Plan at any time. Rollover contributions are not matched by the Hospital or

MHPC, and are not subject to contribution limits. In addition, rollover contributions can be

invested in any of the current investment options and will continue to grow tax deferred. The

distribution you receive from your prior plan and roll over in the Plan will not be subject to

the federal 10% additional income tax which may apply to early distributions from your prior

plan.

The Plan cannot accept rollover contributions in stock or property. Eligible distributions

from any eligible retirement plan including an individual retirement account described in

section 408(a) of the Internal Revenue Code, an individual retirement annuity described in

section 408(b) of the Code, a qualified trust described in section 401(a) of the Code, an

annuity plan described in section 403(a) or 403(b) of the Code, or an eligible governmental

plan described in section 457(b) of the Code will be accepted as rollover contributions to the

Plan.

To receive more information about or to make a rollover contribution, contact Voya.

Becoming Vested in Your Voluntary Contributions

You are always vested in your own contributions to the Plan. The value of these

contributions is yours, regardless of when you terminate your employment with the Hospital

or MHPC.

MATCHING CONTRIBUTIONS*

Under the Plan, the Hospital or MHPC, as applicable, will contribute a 50% match on the

first 4% of eligible pay you save through voluntary contributions.


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THE MATCHING CONTRIBUTION PROVIDED BY THE HOSPITAL OR MHPC, AS APPLICABLE

If You Save This % of Your Eligible Pay

Your Matching Contribution Will Equal This % of Your Eligible Pay

1% 0.5%

2% 1.0%

3% 1.5%

4% or more 2.0%

Example 1 – Matching Contribution

So, if we assume that your eligible pay is $40,000 and that you contribute 4% of your

eligible pay to the Plan during the plan year, your annual contributions would equal $1,600

and the Hospital or MHPC, as applicable, would contribute another $800. In this example, a

total of $2,400 would go into your account for the plan year:

$40,000 x .04 = $1,600 $40,000 x .02 = + 800

$2,400 This is in addition to the core contribution you may receive from the Hospital or MHPC, as

applicable.

Example 2 – Matching Contribution

If we assume that your eligible pay is $60,000 and that you contribute 4% of your eligible

pay and receive the 2% Hospital or MHPC matching contributions, as applicable, your

annual contributions would equal $2,400 and the Hospital or MHPC, as applicable, would

contribute another $1,200.

Here, a total of $3,600 would go into your account for the plan year:

$60,000 x .04 = $2,400 $60,000 x .02 = +1,200

$3,600 This is in addition to the core contribution you may receive from the Hospital or MHPC, as

applicable.


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Becoming Vested in the Matching Contribution*

You become vested in the matching contributions gradually over three years. For the

matching contribution, you earn a year of employment on the anniversary of your hire date,

provided you have been employed by the Hospital or MHPC during that year (and regardless

of the hours you work).

You become 33% vested after one year of employment, 66% vested after two years of

employment and 100% vested after three years of employment. You also earn vesting service

for any years of credited service you earned before 2010 under the Middlesex Health System

Pension Plan.

You would become 100% vested in the value of the matching contributions if you reach age

65, die while you are actively employed, or if your employment terminates while on

disability, regardless of your years of employment.

Income Tax Credit

Tax legislation allows certain individuals to receive an income tax credit (called the “saver’s

credit”) of up to $1,000 ($2,000 if filing jointly) for contributing to tax-deferred retirement

plans such as the Plan. These credits are limited to individuals whose adjusted gross income

(AGI) for 2020 is less than or equal to the following amounts:

$65,000 for couples filing income taxes jointly

$48,750 for individuals who file as head of household, or

$32,500 for single taxpayers.

For more information, please contact your personal financial or tax advisor.

INVESTMENT OPTIONS

You decide how to invest your retirement account – including the core contributions, any

voluntary contributions you make and the matching contributions you receive. The

investment provider, Voya Financial, has several investment options from which to choose

and you may change your investment elections at any time as your personal or financial


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situation changes. The investment elections you make for your own contributions will also

apply to the matching and core contributions.

All investments carry risk – some more than others. You need to understand the potential

risks and rewards associated with each fund before investing. The investment earnings that

are credited to your account will depend on fund performance. Therefore, it is very important

to review the information available to you and to make investment decisions that are

appropriate for your own personal and financial situation. You are also encouraged to consult

with a financial advisor before making your investment decisions.

Voya offers a Registered Representative to assist you with your retirement goals and

objectives. They are on-site at the Hospital and MHPC weekly to assist you. In addition, the

Voya Resource Center can assist you with Plan-related questions at 1-800-584-6001,

Monday –Friday 8 a.m. to 9 p.m. ET. The Automated Voice Response system is available

24/7.

Investment Management Fees

Please refer to the materials provided by Voya detailing the fees that it charges.

Changing Investments You may change the investment of your existing account balance or the investment of your

future voluntary contributions and the Hospital’s or MHPC’s future core and matching

contributions at any time. To change your investment elections, please contact Voya.


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LOANS AND WITHDRAWALS WHILE EMPLOYED

The Plan will allow you to take loans and withdrawals from your retirement account,

according to specific rules.

Loans

You may take a loan from your retirement account at any time. However, only the value of

your own voluntary contributions and any rollover contributions are available for a loan.

When you take a loan, you pay back the amount of the loan with interest to your own

account. Your repayments – including principal and interest – are credited back to your

account according to your current investment election. By borrowing from your account, you

do not have to pay ordinary income taxes or penalty taxes on the amount you borrow as long

as you continue to make loan repayments. So, the amount you borrowed goes back into your

account and will again be available for your retirement years. The interest rate of your loan

will be determined by Voya. You can continue to make contributions to the Plan while you

are repaying your loan.

For further information or to apply for a loan, please contact Voya.

The Plan is intended to meet the requirements of Section 404(c) of the Employee

Retirement Income Security Act of 1974 (ERISA), as amended, and Title 29 of the Code

of Federal Regulations Section 2550.404c-1. A plan may be considered a Section 404(c)

plan if it complies with rules regarding provision of adequate investment options and

information on those options. It must also provide participants and beneficiaries with

information on any fees that they may be charged by investment vendors or the plan. With

a Section 404(c) plan, the participants and beneficiaries of the plan bear responsibility for

their investment decisions. The people responsible for administering the plan and

managing the investments, the “plan’s fiduciaries,” may be relieved of liability for any

losses resulting from investment decisions made by participants and beneficiaries.


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Loan Rules The maximum loan you may take from the Plan is the lesser of:

$50,000 reduced by the greater of 1) the outstanding balance of any loan you have from

the Plan on the date you are taking the loan, or 2) the highest outstanding balance on

loans from the Plan during the one-year period ending on the day before the date the loan

is approved; or

50% of the value of your voluntary contribution and rollover contribution (if applicable)

accounts on the day before your loan is approved.

Voya may charge a loan set up/initiation fee when you take a loan. If you have invested

your voluntary contributions in more than one investment fund, the loan will be taken out

proportionately from among each of the funds in which your voluntary contributions are

invested.

Loan approval will be administered by Voya.

Repaying Your Loan A repayment schedule will be established when the loan is made. Here are some important

things you should know about loan repayments:

Generally, the repayment period is five or fewer years.

The maximum repayment period can be up to 10 years if you are using the loan to

purchase your principal residence. (You must provide documentation of your principal

residence purchase to qualify for the longer repayment period.)

Regardless of the type of loan, you can prepay the entire outstanding balance at any time.

The Plan allows for one outstanding General Purpose loan and one outstanding

Residential loan at any time from the Plan. If you repay the outstanding balance on your

existing loan, you may again be eligible to take another loan.


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If you default on a loan, you cannot take out an additional loan until the defaulted loan is

repaid.

Terminated Employees are allowed to take a loan from the Plan.

Loan payments are repaid directly to Voya, both the principal and the interest will be

invested in the Plan based on your investment elections for future contributions in effect at

the time of repayment. If you are not making contributions to the Plan when repayments are

made, loan repayments will be invested according to the most recent investment election for

future contributions you have on record. Loan repayment arrangements can change if you

become disabled or take a leave of absence. For information on what happens to your loan

repayments if you take a leave of absence of any kind or become disabled, please contact

Human Resources.

Defaulting on Your Loan If you miss a loan repayment, immediate repayment of the entire amount outstanding on the

loan may be required. Otherwise, the loan may be considered to be in default. The default of

a loan note is considered to be a distribution of the unpaid balance of the loan and you will

be subject to taxes and any associated penalties. The outstanding loan balance plus accrued

interest (the “defaulted amount”) will be reported to the IRS for the year the default

occurred. Interest will continue to accrue but will not be reported to the IRS until the loan is

repaid or offset with a distribution.

Withdrawals While Actively Employed

You may take withdrawals from your retirement account while actively employed as long as

you meet the following requirements:

If you have made a rollover contribution to the Plan, you may withdraw the value of

your rollover contributions at any time and for any reason. A rollover contribution is a

distribution from a prior employer’s plan that you elect to transfer into the Plan.


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Once you are at least age 59½, you may withdraw from your vested retirement account

for any reason. (This includes the vested value of the core and matching contributions

that the Hospital or MHPC, as applicable, has made to the Plan on your behalf and your

own voluntary contributions.)

Before age 59½, withdrawals of your own voluntary contributions are permitted in the

case of “financial hardship” as defined by the IRS. The Hospital’s or MHPC’s core and

matching contributions and investment earnings on your voluntary contributions account

are not available for a hardship withdrawal.

Financial hardships currently include:

― Unreimbursed medical expenses for you, your spouse, dependents, or primary

beneficiary under the Plan;

Costs directly related to the purchase of your principal residence (excluding mortgage

payments);

Payment of tuition, related educational fees, and room and board expenses, for up to

the next 12 months of post-secondary education for you, your spouse, children,

dependents or your primary beneficiary under the Plan;

Payments necessary to prevent eviction from, or foreclosure of the mortgage on,

your principal residence;

Payments for burial or funeral expenses for your deceased parents, spouse, children,

dependents or primary beneficiary under the Plan;

Expenses for the repair of damage to your principal residence that would qualify for

the casualty loss deduction under Section 165 of the federal Internal Revenue Code

(but regardless of whether the loss exceeds 10% of your adjusted gross income and

whether the loss is attributable to a federally-declared disaster); and

Payments to cover expenses and losses (including loss of income) you incur on

account of a disaster declared by the Federal Emergency Management Agency


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(FEMA) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act,

Public Law 100-707, provided that your principal residence or principal place of

employment at the time of the disaster was located in an area designated by FEMA

for individual assistance with respect to the disaster.

The hardship withdrawal form and the evidence of the financial need must be sent to Voya

for review and approval. The amount of the hardship withdrawal may not exceed the

amount of the immediate and heavy financial need.

For more information about withdrawals or to apply for a withdrawal while actively

employed, contact Voya.

Taxes on Withdrawals You will pay federal and state income taxes on the amount of your withdrawal. A federal

10% additional income tax may also apply to the withdrawal amount if you receive it before

age 59½.

Hardship Withdrawals: Generally, hardship withdrawals are considered taxable income

and are subject to ordinary income taxes for the year in which you receive them. If you are

younger than age 59½, you will owe an additional federal 10% additional income tax on the

tax-deferred amounts withdrawn, unless the money is used to pay certain unreimbursed

medical expenses. Hardship withdrawals may not be rolled over. When you take a hardship

withdrawal, you are responsible for paying all taxes on the amount you receive when you file

your federal, state and local income tax returns for that year. You may elect to have an

additional amount withheld from your distribution to help pay this tax liability.

Qualified Reservist Distributions: If you complete 30 days of qualified military service

under the Uniformed Services Employment and Reemployment Rights Act of 1994

(USERRA), you may be entitled to take a distribution of your voluntary contributions before

age 59½ without the federal 10% early withdrawal additional income tax during your period

of active duty. A six-month suspension from making elective contribution applies following

the withdrawal.


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An individual who receives a qualified reservist distribution may, at any time during the two-

year period beginning on the day after the end of the active duty period, make one or more

contributions to an IRA in an aggregate amount not to exceed the amount of such

distribution without regard to the dollar limitations that otherwise apply. However, you do

not receive a pre-tax deduction for these re-contributions.

Other Withdrawals Before Age 59½: Any portion of your Plan withdrawal that has not

been taxed will be considered taxable income to you in the year in which you receive the

payment. In most cases, these withdrawals will be subject to 20% federal income tax

withholding unless they are rolled over into a traditional IRA or eligible employer plan and,

in most cases, are subject to a federal 10% additional income tax if received before age 59½.

Withdrawals After Age 59½: After age 59½, you may withdraw money from your vested

account for any reason. The minimum partial withdrawal amount is $200. Withdrawals will

be considered taxable income to you in the year in which you receive the payment.

For further information about withdrawals while you are employed, please contact Voya.

PAYMENT OPTIONS WHEN YOU LEAVE OR RETIRE

Under the Plan, you decide when and how to receive the value of your retirement account.

When you terminate your employment or retire, you may receive payment from the Plan or

defer payment to any later date (subject to the minimum distribution rules). You may elect to

receive your vested retirement account balance as a:

Single lump sum; or

Partial lump sum.

If you receive a partial lump sum, your remaining balance will credited with investment

returns according to your elections until you receive payment.

If you elect a lump sum payment, you may also make a rollover to an Individual Retirement

Account or another employer’s eligible retirement plan. (See the “Rollovers” section below.)


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If your account balance is over $1,000, you may choose to defer payment from the Plan up to

the date you must begin receiving minimum distributions. (See the “Minimum Distributions”

section below.) If you defer payment, your account will continue to be credited with

investment earnings or losses based on the funds in which your account is invested.

Rollovers

When your employment terminates, you may defer federal income taxes (and any federal

10% additional income tax) on a taxable distribution to the extent that the distribution is

eligible for rollover and you do in fact roll it over into a traditional IRA or eligible employer

plan. If you make a direct rollover into a traditional IRA or eligible employer plan, you will

not pay federal income taxes until you withdraw the money from the traditional IRA or

eligible employer plan.

You may be able to roll over all or a part of your under the Plan account to a Roth IRA if you

meet the income restrictions in effect at the time, if any. A rollover to a Roth IRA will not

defer taxes on the amount of the rollover. However, when you take a distribution from the

Roth IRA, the earnings on the amount rolled over from the Plan will not be taxed provided

you are at least 59½ and the Roth IRA account is at least five years old. Note that it is your

responsibility to determine if you are eligible to make a rollover to a Roth IRA.

Lump sum distributions after your death to your spouse, to an alternate payee under a

Qualified Domestic Relations Order (QDRO), and to a non-spouse beneficiary are also

eligible for rollover, provided certain conditions are satisfied.

More information on rollovers will be provided at the time your Plan account becomes

payable.

Minimum Distributions Under current law, if you are no longer an active employee, you must begin to receive

payment of your Plan account balance no later than April 1 following the year in which you

reach age 70½ (age 72, if you reach age 70½ after December 31, 2019, for minimum


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distributions required to be made after December 31, 2019). If this “minimum distribution”

provision applies to you, you will be notified. You cannot roll over a minimum distribution.

Taxes on Your Payment

You will pay taxes when you receive payment from your retirement account under the Plan.

When you receive a lump sum payment, IRS rules require your investment vendor to

automatically withhold 20% of the amount you would receive so that it can be applied

toward your federal tax liability for that year. You can avoid the 20% withholding by having

the money directly transferred or rolled over to an Individual Retirement Account (IRA) or

another employer’s eligible retirement plan. In addition, you may be subject to a federal 10%

additional income tax if you are receiving payment before age 59½. State taxes may also be

withheld from your distribution.

Other IRS rules may affect the way you pay taxes. More information about your payment

options and the taxes that apply will be provided when you decide to receive payment from

the Plan. Be sure to consult with your tax advisor on all distribution decisions. You are

responsible for complying with applicable federal, state and local tax laws and regulations

when you receive a distribution from the Plan.

IF YOU BECOME DISABLED

If your employment terminates while on disability (as determined by the Social Security

Administration), you will become 100% vested in the value of your account balance under

the Plan, regardless of your actual years of service and you will be eligible to receive

payment in any of the forms described in the “Payment Options When You Leave or Retire”

section.


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IF YOU DIE

If you die while you are actively employed by the Hospital or MHPC, your account under

the Plan will be 100% vested, regardless of your actual years of service.

If you die before you have received any payment from the Plan, your vested account balance

may be paid to your beneficiary in one lump sum payment. Your beneficiary must apply to

the Plan to receive the payment and must receive a lump sum distribution within five years

of your death. For more information on naming a beneficiary, see the “Naming a

Beneficiary” section.

If you are married and your benefit is greater than $1,000, your spouse (unless you have

named another beneficiary with your spouse’s signed written consent, witnessed by a notary

public or a representative of the Plan) may elect to defer payment from the Plan, subject to

deadlines imposed by the Plan and applicable law.

If you die before January 1, 2020 and your spouse is your beneficiary, payment must begin

before the December 31 of the calendar year in which you would have reached age 70½. If

your spouse is not your beneficiary, payment must be made within the calendar year after

your death.

If you die on or after January 1, 2020, payment of your entire vested account under the Plan

generally must be made to your beneficiary by the end of the tenth (10th) calendar year after

the year of your death. This 10-year rules does not apply, however, if your beneficiary is an

“eligible designated beneficiary” (that is, your surviving spouse, child who has not reached

majority age, or a designated beneficiary who is disabled, chronically ill or not more than 10

years younger than you). If any eligible designated beneficiary dies before receiving your

entire vested account under the Plan, however, the remainder must be distributed within 10

years after the eligible designated beneficiary’s death.

If you die while performing military service as defined in USERRA, you will be treated as

being employed on your date of death for purposes of determining eligibility for any death

benefits provided under the Plan.


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HOW YOU MAY LOSE BENEFITS

Certain circumstances may reduce or eliminate the benefits you would otherwise receive

from the Plan. For example:

If you are not fully vested when you leave the Hospital or MHPC, you will not be

entitled to the full value of the Hospital’s or MHPC’s contributions made on your behalf.

This is called a forfeiture.

The amount paid out from the Plan may be less than you anticipated, depending on the

market value of your account in each investment fund at the time your account is paid

out.

Your account under the Plan cannot be used as collateral or to satisfy any debts or

liabilities except if a court order, known as a Qualified Domestic Relations Order

(QDRO), concerning child support, alimony or marital property rights so decrees. Under

a QDRO, money in your Plan account may be payable to someone other than you or your

designated beneficiary.

Federal law requires that participation in the Plan at all pay levels be nondiscriminatory.

Nondiscrimination tests are required by law to ensure a fair mix of contributions from

employees at all income levels. If you are considered to be “highly compensated”

according to IRS guidelines, and there is an imbalance in Plan benefits during the plan

year, your contributions may have to be reduced. If you are affected, you will be notified.

In addition, if the Plan does not pass required nondiscrimination tests, all or a portion of

the contributions made on behalf of highly compensated employees may be reduced.

LEAVES OF ABSENCE

You may be able to continue your participation under the Plan during leaves of absence

under certain circumstances.


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Continuation of Participation While on Approved Leaves of Absence

If you take an approved paid leave of absence, you may continue to make tax-deferred

contributions to the Plan as if you were an active employee. You also may take loans and

withdrawals but you cannot receive a final distribution of your Plan accounts.

If you take an approved unpaid leave of absence, you will not be able to make contributions

to the Plan and you will not receive any core or matching contributions during that time. You

may take loans and withdrawals but you cannot receive a final distribution of your Plan

accounts.

If you take a long-term disability leave, you will not be able to make contributions to the

Plan and you will not be eligible to receive core or matching contributions during that time.

You may not take loans and withdrawals, but you may be eligible to receive a final

distribution of your Plan accounts as if you had terminated employment.

Continuation of Participation for Employees in the Uniformed Services (USERRA)

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)

guarantees certain rights to eligible employees who enter military service. The terms

“Uniformed Services” or “Military Service” mean the Armed Forces (i.e., Army, Navy, Air

Force, Marine Corp, Coast Guard), the reserve components of the Armed Services, the Army

National Guard and the Air National Guard when engaged in active duty for training,

inactive duty training, or full-time National Guard duty, the commissioned corps of the

Public Health Service, and any other category of persons designated by the President in time

of war or national emergency.

Upon reinstatement, eligible employees may be entitled to the seniority, rights and benefits

associated with the position held at the time employment was interrupted, plus additional

seniority, rights and benefits that would have been attained if employment had not been

interrupted. These rights include service credit under the Plan for the period of leave and the

right to make up any contributions that would have been made to the Plan during the leave.


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In addition, you will receive applicable matching contributions from the Hospital or MHPC

on your make-up contributions.

If you think you may be eligible for these special rights under USERRA, please contact

Human Resources.

Continuation of Participation While on a Family and Medical Leave (FMLA)

Under the federal Family and Medical Leave Act (FMLA), if you meet eligible service

requirements, you are entitled to take up to 16 weeks of leave for certain family and medical

situations. In general, your FMLA leave is treated like any other paid or unpaid leave under

the Plan. If your FMLA leave is paid, your leave will be treated like other paid leaves; if

your FMLA leave is unpaid, it will be treated like other unpaid leaves. Periods of FMLA

absences will not be counted toward a break in service.

YOUR RIGHT TO APPEAL If you have any questions about the Plan or if you wish to make a claim for benefits, you

should contact the Plan Administrator. If you feel you have a right to a benefit under the Plan

that you have not received, you or your authorized representative may file a claim for the

benefit with the Plan Administrator.

Time Frame for Claim Determinations

If you receive an adverse benefit determination (i.e., any denial, reduction or termination of a

benefit, or a failure to provide or make a payment), the Plan Administrator will notify you of

the adverse determination within a reasonable period of time, but not later than 90 days after

receiving the claim. This 90-day period may be extended for up to an additional 90 days, if

the Plan Administrator both determines that special circumstances require an extension of

time for processing the claim, and notifies you, before the initial 90-day period expires, of

the special circumstances requiring the extension of time and the date by which the Plan

expects to render a determination.


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If You Receive an Adverse Benefit Determination

The Plan Administrator will provide you with a notification of any adverse benefit

determination, which will set forth:

The specific reason(s) for the adverse benefit determination;

References to the specific Plan provisions on which the adverse benefit determination is

based;

A description of any additional material or information necessary for you to perfect the

claim and an explanation of why that material or information is necessary;

A description of the Plan’s appeal procedures and time limits applicable to these

procedures, including a statement of your right to bring a civil action under Section

502(a) of ERISA after an adverse determination on appeal.

Procedures for Appealing an Adverse Benefit Determination You or your authorized representative has 60 days following the receipt of a notification of

an adverse benefit determination within which to appeal the determination.

You have the right to:

Submit written comments, documents, records and other information relating to the claim

for benefits.

Request, free of charge, reasonable access to and copies of all documents, records and

other information relevant to your claim for benefits. For this purpose, a document,

record or other information is treated as “relevant” to your claim if it:

Was relied upon in making the benefit determination;

Was submitted, considered or generated in the course of making the benefit

determination, regardless of whether such document, record or other information was

relied upon in making the benefit determination; or


10534336v2

Demonstrates compliance with the administrative processes and safeguards required

in making the benefit determination.

A review that takes into account all comments, documents, records and other information

submitted by you related to the claim, regardless of whether the information was

submitted or considered in the initial benefit determination.

The Plan Administrator will notify you of the Plan’s benefit determination on review within

a reasonable period of time, but not later than 60 days after receipt of your request for review

by the Plan. This 60-day period may be extended for up to an additional 60 days, if the Plan

Administrator both determines that special circumstances require an extension of time for

processing the claim, and notifies you, before the initial 60-day period expires, of the special

circumstances requiring the extension of time and the date by which the Plan expects to

render a determination on review.

In the event an extension is necessary due to your failure to submit necessary information,

the Plan’s time frame for making a benefit determination on review is stopped from the date

the Plan Administrator sends you an extension notification until the date you respond to the

request for additional information.

The Plan Administrator’s notice of an adverse benefit determination on appeal will contain

all of the following information:

The specific reason(s) for the adverse benefit determination;

References to the specific Plan provisions on which the adverse benefit determination is

based;

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 your

claim;

A statement describing any voluntary appeal procedures offered by the Plan and your

right to obtain the information about such procedures; and


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A statement of your right to bring a civil action under Section 502(a) ERISA after the

adverse benefit determination on appeal, including a description of any contractual

limitations period that applies to your right to bring such an action and the date on which

such contractual limitations period expires.

NOTE: You must use and exhaust this Plan’s administrative claims and appeals procedures

before bringing suit in either state or federal court. Similarly, failure to follow the Plan’s

prescribed procedures in a timely manner will also cause you to lose your right to sue

regarding an adverse benefit determination.

YOUR RIGHTS UNDER ERISA

As a participant in the Middlesex Retirement Savings and Investment Plan, you are entitled

to certain rights and protections under the Employee Retirement Income Security Act of

1974 (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, such as worksites and union halls, all documents governing the Plan including

insurance contracts and collective bargaining agreements, and a copy of the latest annual

report (Form 5500 Series) 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, copies of the latest annual report (Form 5500 Series) and updated summary

plan description. The 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.


10534336v2

Obtain a statement telling you whether you have a right to receive a retirement benefit at

normal retirement age (age 65) and if so, what your retirement benefits would be at

normal retirement age if you stop working now. If you do not have a right to a retirement

benefit, the statement will tell you how many more years you have to work to get a right

to a retirement benefit. This statement must be provided at least quarterly to a participant

or beneficiary having the right to direct the investment of Plan assets. This statement may

also 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, 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.

Enforce Your Rights

If your claim for a pension benefit is denied or ignored, in whole or in part, you have the

right to know why this was done, to obtain copies of 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 administrator.

If you have a claim for benefits that is denied or ignored, in whole or in part, you may file a

suit in a state or federal court, but only after you have exhausted the Plan’s claims and


10534336v2

appeals procedures, as described in the "Your Right to Appeal" section. 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 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.

Assistance With Your Questions

If you have any questions about your Plan, you should contact the Plan Administrator. If you

have any questions about this statement or about your rights under ERISA or if you need

assistance in obtaining documents from the Plan Administrator, 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, DC 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 at 1-

866-444-EBSA, logging on to www.dol.gov or contacting the EBSA field office nearest you.

PLAN ADMINISTRATION

This information about the administration of the Plan is provided in compliance with the

Employee Retirement Income Security Act (ERISA) of 1974, as amended. While you should

not need these details on a regular basis, the information may be useful if you have specific

questions about the Plan.


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Plan Name

The official name of the Plan is the Middlesex Retirement Savings and Investment Plan.

Plan Sponsor and Administrator

The name and address of the Plan sponsor and Plan Administrator are:

Middlesex Health System, Inc. 28 Crescent Street Middletown, CT 06457 Phone: 860-358-6380

Type of Administration

The administration of the plan will be under the supervision of the plan administrator.

Third Party Administrator

All distributions, withdrawals, loans and transfer activity should be approved by Voya.

Voya Financial One Orange Way Windsor, CT 06095

Agent for Service of Legal Process

The name and address of the designated agent for service of legal process are:

Donna Stroneski Vice President, Human Resources Middlesex Health System, Inc. 28 Crescent Street Middletown, CT 06457

Legal process also can be served on the Plan Administrator or annuity contract holders.

Annuity Contract and Custodial Account Vendor

The annuity contracts for the Plan are held with:

Voya Financial One Orange Way Windsor, CT 06095


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Identification Numbers

The Employer Identification Number (EIN) assigned by the Internal Revenue Service to

Middlesex Health System, Inc. is 22-2676137. The plan number for the Plan is 010.

Plan Year

The plan year for the Plan is January 1 through December 31.

Plan Type and Funding

The Plan is considered a defined contribution 403(b) plan.

The Plan is funded by core contributions made by the Hospital and MHPC, employee

contributions based on the employee’s election, and matching contributions made by the

Hospital and MHPC based on the amount the employee contributes. Contributions are held

in a trust fund and are separate from organization assets.

Collective Bargaining Agreements

The portion of the Plan maintained for active members of the bargaining unit representing

Visiting Nurse Association members is maintained pursuant to a collective bargaining

agreement. (See the “Middlesex Health System Visiting Nurse Association” section, below.)

A copy of such collective bargaining agreement may be obtained by Plan participants and

beneficiaries upon written request to the Plan Administrator, and is available for examination

by participants and beneficiaries as required by U.S. Department of Labor Regulations

Sections 2520.104b-1 and 2520.104b-30.

Plan Expenses

To the extent permitted by ERISA, the costs of administering the Plan (e.g., recordkeeping

and trustee fees) are normally paid from the assets of the Plan unless the Hospital or MHPC

pays them.

However, certain Plan expenses are charged directly to your Plan account. Contact Voya for

information on Plan expenses charged to your Plan account. Keep in mind that Voya may

charge your Plan account fees on set up, distributions, hardships, recordkeeping and general


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advisory and custodial fees. Please contact Voya to review the fees as well as the materials

they provide to you.

Plan Document

This SPD is intended to help you understand the main features of the Plan. It should not be

considered as a substitute for the Plan document, which governs the operation of the Plan.

The Plan document sets forth all of the details and provisions concerning the Plan and is

subject to amendment. If any questions arise that are not covered in this SPD or if this SPD

appears to conflict with the official Plan document, the text of the official Plan document

will determine how questions will be resolved. To request a copy of the Plan document,

please contact Human Resources.

The Hospital’s Right to Amend or Terminate the Plan

Middlesex Health System, Inc. reserves the right to amend, modify, suspend or terminate the

Plan, in whole or in part, by action of Middlesex Health System, Inc.’s Board of Directors or

similar governing body. Plan amendment, modification, suspension or termination may be

made for any reason, and at any time, and may, in certain circumstances, result in the

reduction or elimination of benefits or other features of the Plan to the extent permitted by

law. Regardless of any changes made to the Plan, you will always be entitled to the current

value of your vested account, to the extent required by law.

If the Plan is completely or partially terminated, affected participants will become fully

vested in the benefits they have accrued to that point. In the event of a complete Plan

termination, benefits will be distributed as soon as practicable in accordance with Plan

provisions and as permitted by law.

Pension Benefit Guaranty Corporation Benefits provided under the Plan are not insured by the Pension Benefit Guaranty

Corporation (PBGC) under Title IV of ERISA because the insurance provisions are not

applicable to this type of Plan.


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Limitation on Assignment

Your rights and benefits under the Plan cannot be assigned, sold, transferred or pledged by

you or reached by your creditors or anyone else except under limited circumstances.

However, the law does permit the assignment of all or a portion of your interest in the Plan

to your spouse, former spouse, child or other dependent as part of a Qualified Domestic

Relations Order (QDRO).

Qualified Domestic Relations Order

A Qualified Domestic Relations Order (QDRO) is a legal judgment, decree or order that

recognizes the rights of an alternate payee under the Middlesex Retirement Savings and

Investment Plan with respect to a child’s or other dependent’s support, alimony or marital

property rights. The Plan is legally required to recognize a QDRO.

If you become legally separated or divorced, a portion or all of your benefit under the Plan

may be assigned to someone else to satisfy a legal obligation you may have to a spouse,

former spouse, child or other dependent.

There are specific requirements the court order must meet to be recognized by the Plan

Administrator and specific procedures regarding the amount and timing of payments.

Participants and beneficiaries may obtain, without charge, a copy of the procedures

governing QDRO determinations from the Plan Administrator by contacting Human

Resources at 860-358-6380.

Plan Interpretation

The administration of the Plan will be under the supervision of the Plan Administrator. To

the fullest extent permitted by law, the Plan Administrator will have the exclusive discretion

to determine all matters relating to the Plan, including but not limited to eligibility, coverage

and benefit determinations under the Plan. The Plan Administrator will also have the

exclusive discretion to determine all matters relating to interpretation and operation of the

Plan. The Plan Administrator may delegate any of its duties and responsibilities to one or

more persons or entities. Such delegation of authority must be in writing and must identify


10534336v2

the delegate and the scope of the delegated responsibilities. Decisions by the Plan

Administrator, or any authorized delegate, will be conclusive and legally binding on all

parties.

Receiving Advice

The Hospital or MHPC cannot advise you regarding tax, investment or legal considerations

relating to the Plan. Therefore, if you have questions regarding benefit planning, you should

seek advice from a personal advisor.

Your Employment

This SPD provides information about the Plan and how it works. This SPD does not

constitute an implied or express contract or guarantee of employment. Similarly, your

eligibility or your right to benefits under the Plan should not be interpreted as an implied or

express contract or guarantee of employment. The Hospital’s and MHPC’s employment

decisions are made without regard to benefits to which you are entitled upon employment.

MIDDLESEX HEALTH SYSTEM VISITING NURSE ASSOCIATION

ELIGIBILITY*

All active employees that are members of the bargaining unit representing Visiting Nurse

Association and previously grandfathered non-union staff are eligible to participate in the

Middlesex Retirement Savings and Investment Plan under the VNA program. You may

begin making voluntary contributions to the Plan on your date of hire.

You become eligible for the Employer Matching Contribution and the Hospital’s core

contribution (non-elective contribution) on the anniversary of your date of hire. Once

eligible, annual eligibility will be based upon whether you earn at least 1,000 hours of


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service in a calendar year. (See the “Core Contributions” and “Employer Matching

Contribution” section below for more information.)

ENROLLMENT*

To encourage all employees to save for the future, you will be automatically default enrolled

when you are first eligible to participate in the Plan. In order to begin contributions into the

plan, you must elect a deferral rate. You can increase, decrease or suspend contributions to

the Plan by logging onto your Infor Employee Space account and choosing Life Events

under the Benefits menu.

CORE CONTRIBUTIONS (NON-ELECTIVE CONTRIBUTIONS) *

You are eligible to receive an automatic core contribution from the Hospital each plan year if

you:

Have completed one year of service for eligibility; and

Work at least 1,000 hours during that plan year; and

Are actively employed on December 31 of that plan year; and

Are age 21 or older.

One year of service for eligibility purposes means that you are employed on the anniversary

of your date of hire. That is, if you became an employee on June 1st, you would have one

year of service for eligibility purposes on the following June 1st.

It is important to note that you may have worked 1,000 hours during your first 12 months of

employment, but you also must both be employed on the anniversary of your date of hire and

be credited with 1,000 hours of service during the plan year containing your one-year

anniversary in order to receive a core contribution for that first plan year.

For example, if you were hired on June 1, 2020 and remain employed through December 31,

2020, and are further credited with 1,000 hours of service during 2020, you will have met the

initial eligibility requirement, the annual 1,000 hour requirement for 2020, as well as the end


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of year employment requirement for 2020. In this case, your eligible pay commencing with

initial eligibility, from June 1, 2020 through year end, would be used to calculate your 2020

core contribution.

You do not need to be making voluntary contributions to the Plan to be eligible to receive the

core contribution. If you retire, experience a severance form employment while on disability,

or die during the plan year, you are still eligible for the core contribution for that plan year,

regardless of the year-end employment requirement and your actual hours.

If you were hired prior to 1/1/99, the core contribution is a uniform percentage of no more

than 4% of your Compensation. If you were hired after 1/1/99, the core contribution is a

pro-rata portion of the contribution equal to the ratio of your Compensation to the

Compensation of all eligible Participants, unless they are excluded from sharing in the

Employer’s Non-Elective Contributions.

Example of Pro-Rata Portion: You are one of 5 Participants in the Plan and your

compensation is $20,000. Your Employer’s total payroll is $100,000, and the total

discretionary contribution is $15,000. The ratio of your Compensation ($20,000) to that of

all participants ($100,000) is 1/5th. Therefore, the 1/5th or $3,000 of the discretionary

contribution will be allocated to your account.

Your core contribution from the Hospital is determined as of December 31. Your 2020 core

contribution will be based on your annual compensation as of December 31, 2020.

EMPLOYER MATCHING CONTRIBUTIONS*

If your hire date is after 1/1/99, under the Plan, the Hospital will add a 100% match on the

first 4% of eligible pay you save through voluntary contributions. If your hire date is prior to

1/1/99, under the Plan, the Hospital will add a 50% match on the first 4% of eligible pay you

save through voluntary contributions. This matching contribution goes into your account as

of each bi-weekly payroll period just like your own voluntary contributions.


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Becoming Vested in the Core Contribution (Non-Elective Contribution) and the Matching Contribution*

You become vested in the matching and non-elective core contributions gradually over five

years. For the matching and non-elective core contributions, you earn a year of employment

on the anniversary of your hire date, provided you have been employed by the Hospital

during that year (and regardless of the hours you work).

You become 20% vested after two years of employment, 50% vested after three years of

employment, 75% after four years of employment and 100% vested after five years of

employment.

You would become 100% vested in the value of the matching and non-elective core

contributions if you reach age 65 or die while you are actively employed, or if your

employment terminates while on disability, regardless of your years of employment.

middlesex retirement savings and investment 403(b) plan ......if you do not want to participate in...

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