the metropolitan museum of art - fidelity investments · 2097/51959-001 current/40407852v5 updated...

2097/51959-001 current/40407852v5

The Metropolitan Museum of Art

Summary Plan Description

401(a) Special Retirement Plan for

Select Non-Union Employees

Additional Retirement

Contributions (ARCs)

The information contained herein has been provided by The Metropolitan Museum of Art and is solely the responsibility of The Metropolitan Museum of Art.

2097/51959-001 current/40407852v5

Table of Contents

INTRODUCTION TO THE SPECIAL RETIREMENT PLAN ........................................................................ 1

Our Commitment to Helping You Save for Retirement ............................................................................. 1

Guiding Principles Behind ARCs .................................................................................................................. 1

About This Booklet: It’s Your Summary Plan Description (SPD) ............................................................ 2

ELIGIBILITY, PARTICIPATION AND VESTING............................................................................................ 3

Eligibility ........................................................................................................................................................... 3

Vesting ............................................................................................................................................................. 3

Participation ..................................................................................................................................................... 3

HOW THE SPECIAL RETIREMENT PLAN WORKS ..................................................................................... 4

How Your Benefit Is Calculated .................................................................................................................... 4

The Formula ............................................................................................................................................... 4

Some Examples ......................................................................................................................................... 5

When ARCs will be Made.............................................................................................................................. 5

Designating a Beneficiary.............................................................................................................................. 6

Important Information about IRS Limits ....................................................................................................... 6

Loans ................................................................................................................................................................ 6

How Your ARCs Are Invested ...................................................................................................................... 7

Obtaining Information about the Investment Funds .................................................................................. 7

Changing Your Investment Elections ...................................................................................................... 8

Your Account Balance ............................................................................................................................... 9

A Note About Administration Fees ............................................................................................................... 9

WHEN YOUR ACCOUNT IS PAID TO YOU ............................................................................................... 10

How Your Account Is Paid to You .............................................................................................................. 10

Required Distributions ............................................................................................................................. 10

Tax Consequences of Distributions ........................................................................................................... 11

Rollovers at the Time of Distribution .......................................................................................................... 11

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WHAT HAPPENS IF: UNDERSTANDING SOME SPECIAL RULES ...................................................... 12

What Happens If …You are Terminated ................................................................................................... 12

What Happens If …You Are Re-Hired ....................................................................................................... 12

What Happens If …You Go On Leave ...................................................................................................... 12

What Happens If …You Die ........................................................................................................................ 12

What Happens If …You Become Disabled ............................................................................................... 13

IMPORTANT TERMS ....................................................................................................................................... 14

ADMINISTRATION INFORMATION .............................................................................................................. 16

Plan Name and Number .............................................................................................................................. 16

Employer ........................................................................................................................................................ 16

Employer Identification Number ................................................................................................................. 16

Type of Plan .................................................................................................................................................. 16

Plan Administrator ........................................................................................................................................ 16

How Benefits are Funded ............................................................................................................................ 16

Plan Year ....................................................................................................................................................... 17

Legal Process ............................................................................................................................................... 17

Plan Interpretation ........................................................................................................................................ 18

Benefit Insurance .......................................................................................................................................... 18

Non-Assignment of Benefits ....................................................................................................................... 18

Qualified Domestic Relations Order (QDRO) ...................................................................................... 18

Future of the Plan ......................................................................................................................................... 19

If the Plan Becomes “Top Heavy” .............................................................................................................. 19

Continuation of Participation for Employees in the Uniformed Services (USERRA) .......................... 19

PROCESS FOR SUBMITTING A CLAIM ..................................................................................................... 20

Claims Procedure ......................................................................................................................................... 20

Initial Claim ............................................................................................................................................... 20

If a Claim Is Wholly or Partially Denied ................................................................................................ 21

Claim Denial Review ............................................................................................................................... 21

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HOW YOU MAY LOSE BENEFITS ............................................................................................................... 24

YOUR RIGHTS UNDER ERISA ..................................................................................................................... 25

Receive Information About Your Plan and Benefits ................................................................................ 25

Prudent Actions by Plan Fiduciaries .......................................................................................................... 25

Enforce Your Rights ..................................................................................................................................... 26

Assistance with Your Questions ................................................................................................................. 26

APPENDIX A – INVESTMENT OPTIONS .................................................................................................... 28

Tier 1 – Target Date Retirement Funds ................................................................................................ 28

Tier 2 – Index Funds ................................................................................................................................ 28

Tier 3 – Actively Managed Funds .......................................................................................................... 29

401(a) Special Retirement Plan for Select Non-Union Employees (the “Special Retirement Plan”) SPD 4

2097/51959-001 current/40407852v5 Updated for January 1, 2014

INTRODUCTION TO THE SPECIAL RETIREMENT PLAN

Our Commitment to Helping You Save for Retirement

The Metropolitan Museum of Art (the “Museum”) is committed to providing all of its

employees with a “best-in-class” retirement program built on a philosophy of shared

responsibility. This means that the Museum will provide benefits to help you build a

foundation for retirement savings, and provide supporting communications, tools and

resources to help you reach your personal financial goals.

The Metropolitan Museum of Art 401(a) Special Retirement Plan for Select Non-Union

Employees (the “Plan”, “401(a) Plan” or “Special Retirement Plan”) is a discretionary

profit sharing plan, and under the Plan the Museum intends to provide additional

retirement benefits for certain staff members who may be close to retirement, do not

have sufficient time to take advantage of the Museum’s recently enhanced Retirement

Program and are not eligible to participate in the Museum’s legacy “Wholeness Plan.” To

provide this retirement assistance, the Museum has contributed Additional Retirement

Contributions (ARCs) under the Plan to eligible staff members for a five-year period

following the effective date of the Plan (the “Initial Period”). After the Initial Period, the

Museum may make contributions to the Plan, in its sole discretion.

Guiding Principles Behind ARCs

The ARC program was developed using a clearly identified set of guiding principles to

ensure that the benefits provided are balanced and appropriate given the key goals of

the Museum’s overall Retirement Program: to provide a program that is highly-

competitive among our peers and supports the retirement needs of our staff.

ARCs are designed to:

Reward past service with the Museum.

Treat those with similar age and service histories at the Museum in a

consistent manner.

Help provide a reasonable level of replacement income at retirement.

Be a “point in time” adjustment and made based on a formula over a temporary

period of time (five years).



About This Booklet: It’s Your Summary Plan Description (SPD)

This booklet serves as the Summary Plan Description (SPD) for the Special Retirement

Plan. It describes the benefits as they apply to eligible employees effective January 1,

2014.

We encourage you to read this booklet carefully and share it with your family members.

While it is not intended to provide all of the details of the Plan, this booklet is intended to

help you understand how the Plan works and answer the questions most frequently

asked about benefits under the Plan. You can find complete details about the Plan in the

official Plan document. If there is any difference between the information in this booklet

and in the official Plan document, the Plan document will govern.

In this booklet, we have tried to describe the Plan in everyday language, but some terms

have specific meanings. For your convenience, we have summarized some of these

special terms in the section of this booklet titled “Important Terms”. These terms are

capitalized throughout the booklet.

If you have any questions about your benefits or if you have difficulty understanding any

part of this booklet, please contact The Metropolitan Museum of Art Benefits Office in the

Human Resources Department.


Human Resources Department

1000 Fifth Avenue

New York, New York 10028-0198

212-650-2285

This document is intended to help you understand the main features of the Special Retirement Plan. It should not

be considered as a substitute for the Plan document, which governs the operation of the Special Retirement

Plan. That document sets forth all of the details and provisions concerning the Special Retirement Plan and is

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

to conflict with the legal Plan document, the text of the legal Plan document will determine how questions will be

resolved. To request a copy of the Plan document, please contact the Benefits Office in the Human Resources

Department.



ELIGIBILITY, PARTICIPATION AND VESTING

Eligibility

In general, your eligibility for an ARC under the Special Retirement Plan is based on a

few factors including your Age, Service and Base Salary as of May 31, 2008. If you are a

participant in the Museum’s legacy Wholeness Plan, you are not eligible for ARCs.

Eligibility is also based on your annual Base Salary for each year that the Plan is in

effect. Here’s how it works:

You are eligible to participate in the Plan if you are a non-union, full-time or

part-time employee and were eligible for participation under the Museum’s

Basic Plan as of May 31, 2008, but are not eligible for participation under the

Museum’s Wholeness Plan and you are designated as eligible by the Museum

based on your annual base salary. In addition, your Age plus your years of

Service with the Museum must be equal to or more than 55 (with limited

exceptions).

Vesting

The Museum pays the full cost of the Plan and you are 100% vested in your ARCs at all

times. This means that once ARCs are made by the Museum to your Plan account, those

ARCs are non-forfeitable⎯ even if you leave the Museum.

Participation

To participate in the Special Retirement Plan, you must have been actively employed by

the Museum on January 1, 2008. If you are eligible to participate in the Plan, you

automatically became a participant on January 1, 2008. Eligible participants have been

determined, identified and notified of eligibility. A full listing of eligible participants is

available in the official Plan document.



HOW THE SPECIAL RETIREMENT PLAN WORKS

How Your Benefit Is Calculated

Your annual ARC, during the Initial Period, was equal to a percentage of your Base

Salary and was based on your Age plus Service as outlined in the table below.

For salaried employees, your Base Salary is determined based on your annual

rate of pay as of May 31, 2008.

For hourly employees, your Base Salary is determined by your rate of pay on

an hourly basis as of May 31, 2008, multiplied by the number of hours for

which you were paid in 2007 (not to exceed 1,820).

The Formula

Your Age Plus Service as of

May 31, 2008

Annual Additional Retirement

Contribution (ARC)

Less than 55 $0

55 – 59 8% x Base Salary






85 or more 30% x Base Salary

Note: All ARCs are discretionary on behalf of the Museum and contingent on your

continued employment with the Museum. You will only be credited with an ARC for a

year if you are employed by the Museum on the last day of the Plan Year and have been

credited with at least 200 Hours of Service during that year. During the Initial Period, if

you died or became Disabled during a Plan Year, you were still eligible to receive the

ARC for that year (but not for future years). If a contribution has been made by mistake

on your behalf, the contribution must be returned to the Museum within one year. In

addition, in order to satisfy nondiscrimination testing, it may be necessary to remove



certain highly compensated employees from eligibility for contributions under the Plan.

Some Examples

Salaried Employees: Let’s assume a staff member is a full time employee earning a

Base Salary of $80,000 per year as of May 31, 2008. He is 62 years old and has been

working at the Museum for 18 years.

His Age plus Service equals 80 and this means he would have received an ARC of

$20,000 each year during the Initial Period (as long as he remains actively employed

and continues to meet eligibility requirements) (25% x $80,000 = $20,000).

Hourly Employees: Let’s assume a staff member is a part-time employee earning $25

per hour as of May 31, 2008. She is 52 years old and has been working with the

Museum for 18 years. In 2007, she worked 1,000 hours. Her annual rate of pay is

$45,500 ($25 x $1,820); however she only worked 1,000 hours in 2007, so for ARC

calculation purposes her Base Salary is $25,000. ($45,500 x 1,000 / 1,820.)

Her age plus years of service equals 70. This means she would have received an ARC

each year during the Initial Period in the amount of $4,500 (as long as she remains

actively employed and continues to meet eligibility requirements) (18% x $25,000).

When ARCs will be Made

Shortly after the end of each Plan Year (typically in January), the Museum will make

contributions, if any, to your Special Retirement Plan account for the Plan Year. No

employee contributions or rollovers to your Plan account are permitted under the Special

Retirement Plan.

During the Initial Period, if you became Disabled or died during the Plan Year, your Plan

account would have been credited with the applicable year’s ARC, if any, but you would

not be eligible for any further ARCs.

If you leave the Museum for any other reason (e.g., retirement, resignation or dismissal),

your employment is considered terminated and you will not be eligible to receive an ARC

for the year in which you terminate or in any future year, unless you are later reemployed

by the Museum.



Designating a Beneficiary

Your Beneficiary is the person who will receive your benefit if you die before receiving

benefits from the Plan. Although it is not mandatory to elect a Beneficiary, we encourage

you to name one using the Fidelity online beneficiary designation tool at the Fidelity website

at www.plan.fidelity.com/metmuseum or by calling Fidelity at 1-800-343-0860. If you die

and there is no valid Beneficiary designation on file with Fidelity, your spouse (if you are

married) or your estate (if you are not married) will automatically become your Beneficiary.

Note that if you are married and want to name someone other than your spouse as your

Beneficiary, you must obtain written consent from your spouse to do so. It’s also important to

understand 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 designate a different Beneficiary.

Important Information about IRS Limits

The Special Retirement Plan is a tax-qualified plan. This means that it is subject to

certain rules and benefit limits set forth by the Internal Revenue Service (IRS). Annual

ARCs cannot exceed the lesser of:

100 percent (100%) of your Compensation*, or

$52,000 for 2014 (this may be adjusted annually by the IRS for cost-of living

increases)

ARC contributions are dependent on your continued employment with the Museum and

your continued eligibility to participate in this type of plan under applicable

nondiscrimination regulations and the IRS limits, as further described in the section of

this booklet titled “Eligibility”.

*For 2014 the maximum amount of total Compensation recognized for contributions is $260,000.

Loans

No loans or in-service distributions may be taken from the Plan at any time.



How Your ARCs Are Invested

You choose how to allocate the ARCs to your account under the Plan among the

different investment options available to you by the Museum through Fidelity

Investments®. The Museum provides a three-tier investment structure that provides you

with the opportunity to mix your allocations among various options to best meet your

individual goals. You may also designate a certain percentage of your account to be

invested in different options. Please note that if you do not make an active allocation

election, your ARC account will automatically be invested in the Vanguard Target Date

Retirement Fund that corresponds closest to the year in which you turn age 65.1

For a complete list of the investment options under the Plan, please refer to Appendix A

of this booklet.

Obtaining Information about the Investment Funds

You will receive information on each of the investment funds directly from Fidelity at

the time of your enrollment. This information will include:

A general description of each of the investment funds,

The investment objectives of each investment fund,

The risk and return characteristics of each investment fund,

The type and level of diversification of assets of each investment fund,

A copy of the prospectus if you are a first time investor to the fund,

The identity of any ERISA investment managers, and

A description of any transaction fees or expenses charge for investment

purchases or sales.

You can also request the following information from Fidelity:

1 This is the Qualified Default Investment Alternative (QDIA) selected by the Museum.



A description of the annual operating expenses of each investment fund

(including management, administrative and transaction costs that reduce the

value of the investment fund) and the aggregate amount of these expenses

(expressed as a percentage of average net assets),

Copies of any prospectuses, financial statements and reports and any other

materials relating to each investment fund (to the extent such information is

provided to the Plan),

A report of each investment fund’s latest available values of the shares or units

(and past and current investment performance), and

The value of the shares or units of each investment in which you or your

Beneficiary is invested.

We encourage you to carefully read the investment fund descriptions and the fund’s

prospectus before investing. You should evaluate the investment options available

under the Plan in the same way you would evaluate any investment to determine

whether you are comfortable with the investment risk and expected rate of return. The

Plan is intended to constitute a plan under the Employee Retirement Income Security

Act of 1974, as amended (“ERISA”) Section 404(c) and Title 29 of the Code of Federal

Regulations Section 2550.404c-1. Consequently, the fiduciaries of the Plan may be

relieved of liability for any losses which are the direct and necessary result of investment

instructions given by you or your Beneficiaries. You are urged to read the literature

describing each investment fund prior to making any investment decision. Remember,

you will share in any losses as well as any gains of the funds you choose.

For specific information about the Fidelity investment fund options, contact a Fidelity

customer service representative toll-free at 1-800-343-0860, Monday through Friday

(excluding New York Stock Exchange holidays) between 8 a.m. and midnight, Eastern

Time. Or, you can visit Fidelity’s website at www.plan.fidelity.com/metmuseum.

Changing Your Investment Elections

You may change the investment of your existing account balance at any time either

online at www.plan.fidelity.com/metmuseum or by contacting Fidelity at 1-800-343-



0860. You may also change the manner in which future contributions to your account are

allocated among your different investment options.

If there is a change in any of the investment funds available to you, the Museum has the

right to direct the transfer of your account to a fund that is most similar to the one you

had previously elected.

Your Account Balance

Your account balance is updated daily and can be accessed by contacting Fidelity at 1-

800-343-0860. Representatives are available Monday through Friday (excluding New

York Stock Exchange holidays), between 8 a.m. and midnight, Eastern Time. Or, you

can visit Fidelity’s website at www.plan.fidelity.com/metmuseum.

A Note About Administration Fees

All administrative expenses of the Plan shall be paid by the Museum, except that any loan,

withdrawal, contribution, benefit, taxes applicable to a contribution or other charges by

Fidelity under the Plan’s contract with Fidelity shall be paid out of the assets held by Fidelity

under the Plan’s contract with Fidelity and charged to the applicable accounts, unless the

Museum otherwise elects to pay such amounts.

Some fees and expenses attributable to the management and investment of the Plan’s

investment funds are charged (pro rata) against each of the respective investment funds.

However, certain expenses are charged directly to your account, for example, those associated

with early redemption fees, etc. For a description of these fees, refer to the “Fee Disclosure

Chart” that was provided to you when you enrolled, and which is available at

www.plan.fidelity.com/metmuseum.

Complete information about fees and expenses is available from Fidelity. In addition, information

about investment management fees is included in the prospectus describing each investment

fund, which is available online at www.plan.fidelity.com/metmuseum or by calling Fidelity at

1-800-343-0860.



WHEN YOUR ACCOUNT IS PAID TO YOU

You are eligible to receive your benefit under the Special Retirement Plan when you stop

working at the Museum, become Disabled or die.

You may begin to collect your benefit under the Special Retirement Plan (unless you

elect otherwise) not later than the 60th day after the end of the Plan Year in which the

latest of the following events occurs:

You reach age 62

The 10th anniversary of your participation in the Special Retirement Plan

You stop working at the Museum

How Your Account Is Paid to You

When you are eligible to receive your benefit under the Special Retirement Plan, you can

elect to:

Roll over your benefit into an eligible retirement plan (such as an IRA, a Roth

IRA or a qualified plan),

Receive a lump-sum payment (meaning all at one time) payable to you in the

amount equal to the total value of your account, or

Defer receiving your benefit until a later date.

You will receive your payout as soon as administratively feasible based on the payment

date you elect (certain timing requirements apply).

Required Distributions

The law requires that payment of your Special Retirement Plan account begins by the

later of:

April 1 of the calendar year after the calendar year in which you reach 70½, or

Your retirement from the Museum.



If you are actively at work when you reach age 70 ½, you are not required to take this

mandatory distribution; but, you may elect to do so. However, under current laws, if you are

no longer actively at work, you must begin to receive payment of your benefit no later

than April 1 following the year in which you reach age 70½. You cannot roll over a

minimum distribution to any other account. See the section of this booklet titled “What

Happens If: Understanding Some Special Rules” for information about your payments if

you are terminated, die or become Disabled.

Tax Consequences of Distributions

If you receive the value of your Special Retirement Plan benefit as a lump-sum payment,

federal income taxes are required to be withheld equal to 20% of the taxable portion of

your payment, unless you roll over your distribution directly into an IRA, an eligible

employer plan or other eligible plan. If it is not rolled over, your distribution may be

subject to a 10% early payment penalty tax in addition to regular income tax unless:

You are at least age 55 at the time you leave the Museum,

You are at least age 59½ at the time payment is made to you, or

If another exception applies.

For more information on the additional 10% tax, please see IRS Form 5329. You are

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

regulations when you receive the distribution. You will receive more information about

the applicable tax rules when you request a distribution from the Plan.

Rollovers at the Time of Distribution

You may defer federal income taxes (and the 10% penalty tax described above) on any

single sum taxable distribution to the extent that the distribution is eligible for rollover and

you do in fact roll it over into an IRA or another eligible plan. If you make a direct rollover

into a traditional IRA or other eligible plan, you will not pay federal income taxes until you

withdraw the money from the traditional IRA or other eligible plan.

The tax information contained in this SPD is intended only as a general summary of the

federal income tax consequences of participation in the Special Retirement Plan and is

not a complete summary of such consequences. You are urged to consult with your

own tax advisor with respect to your specific tax situation.



WHAT HAPPENS IF:

UNDERSTANDING SOME SPECIAL RULES

What Happens If …You are Terminated

If your employment with the Museum is terminated, your account will be maintained

under the Plan and will continue to share in the gains and losses of its investment funds

⎯ until you elect to have your benefit distributed in accordance with the provisions

described in the section of this booklet titled “How Your Account is Paid to You”, or, if

earlier, until your benefit is required to be distributed as described above. You will not be

eligible for any further Plan contributions once you are terminated (unless you died or

became Disabled during the Initial Period, in which case you or your Beneficiary would

have received the ARC, if any, for the current Plan Year in which you died or became

Disabled).

Your employment with the Museum is considered terminated if you lose your

employment status with the Museum due to, but not limited to, retirement, death,

disability, resignation or dismissal with or without cause.

What Happens If …You Are Re-Hired

If your employment with the Museum ends and you are later re-employed by the

Museum, you will immediately become a participant in the Plan upon the completion of

an Hour of Service following your re-employment.

What Happens If …You Go On Leave

If you go on an authorized leave of absence, you are not considered terminated unless

you fail to return to the Museum in the appropriate timeframe. See the section of this

booklet titled “Continuation of Participation for Employees in the Uniformed Services

(USERRA)” for more information about your benefits while on military leave.

What Happens If …You Die

If you die before you receive your benefit from the Special Retirement Plan, the value of



your account balance will be distributed to your beneficiary in a lump-sum payment, as

soon as administratively feasible following your death (remember, during the Initial

Period, you or your Beneficiary was eligible to receive the ARC for the Plan Year in

which you died only, which payment, if any, would have been made at the time ARC

contributions were made to the Plan).

What Happens If …You Become Disabled

If you become “Disabled” while you are actively employed by the Museum, you will be

eligible to receive payment in any of the forms described in the section of this booklet

titled “How Your Account is Paid to You”. (Remember, during the Initial Period, you or

your beneficiary was eligible to receive the ARC for the Plan Year in which you became

Disabled only, which payment, if any, would have been made at the time ARC

contributions were made to the Plan). “Disabled” under the Plan means that you are

unable to engage in any substantial gainful activity by reason of any medically

determinable physical or mental impairment that can be expected to result in death or to

be of long-continued and indefinite duration, as certified by a physician acceptable to the

Plan Administrative Committee.



IMPORTANT TERMS

Term What It Means

Additional Retirement

Contribution (ARC)

The amount the Museum may contribute to your Plan account

each year.

Age Your age on your last birthday as of May 31, 2008.

Base Salary For salaried employees, your rate of pay on an annual basis

as of May 31, 2008. For hourly employees, your rate of pay on

an hourly basis as of May 31, 2008, multiplied by the number

of hours for which you were paid in 2007 (not to exceed 1,820

hours).

Basic Plan The Metropolitan Museum of Art 403(b) Retirement Plan for

Non-Union Employees.

Beneficiary The person you choose to receive your Plan benefit if you die

while participating in the Plan.

Compensation Generally, the total cash amount paid to you by the Museum

during the Special Retirement Plan Year including overtime,

bonuses, “greeter pay” and commissions as reflected on your

W-2 for the given Plan Year. Compensation also includes

payouts for vacation days/annual leave under certain

circumstances. Compensation does not include deferred

compensation, severance payments, disability payments from

a third party, government amounts, foreign living allowances,

housing allowances, imputed income or contributions by the

Museum to this or any other plan. For 2014, compensation

recognized under the Plan cannot exceed $260,000 per year

without certain tax implications. This limit is reviewed and

may be adjusted annually by the IRS.

Disabled “Disabled” under the Plan means that you are unable to

engage in any substantial gainful activity by reason of

any medically determinable physical or mental

impairment that can be expected to result in death or to

be of long-continued and indefinite duration, as certified

by a physician acceptable to the Plan Administrative

Committee.

Hours of Service The hours for which you are or will be directly or indirectly

compensated by the Museum including overtime (but only



actual hours worked) and hours for which a back pay award is

made. It also includes paid hours for sick days, disability,

vacation/annual leave, holidays, jury duty, layoff, military duty

and leave of absence, up to five hundred and one (501) hours

in a continuous nonworking period.

Initial Period The five-year period following the effective date of the Plan.

The Initial Period ran from January 1, 2008 through

December 31, 2012.

Plan Year January 1 − December 31

Service The completed years in non-union service at the Museum

prior to June 1, 2008, reduced by any periods of severance.

Wholeness Plan This term applies to a special retirement plan in which most

salaried, non-union employees with at least 10 years of

service as of June 30, 1987 were eligible to participate.



ADMINISTRATION INFORMATION

Plan Name and Number

This Summary Plan Description describes the provisions of the Special Retirement Plan.

The full name of the Plan is The Metropolitan Museum of Art 401(a) Special Retirement

Plan for Select Non-Union Employees. The Plan number, which distinguishes the

Special Retirement Plan from the other Museum plans, is 007.

Employer


1000 Fifth Avenue

New York, NY 10028

Employer Identification Number

The employer identification number of the Museum assigned by the IRS is 13-1624086.

Type of Plan

The Plan is a Code Section 401(a) plan which provides for employer elective

contributions.

Plan Administrator


1000 Fifth Avenue

New York, NY 10028

212-650-2285

Benefits under the Plan will be paid only if the Plan Administrator (or its delegate)

decides in its discretion that the applicant is entitled to benefits. The Plan Administrative

Committee, members of which are selected by the Board of Trustees, is responsible for

administering and interpreting the Plan on behalf of the Museum.



How Benefits are Funded

ARCs to the Special Retirement Plan are maintained in a Trust Fund managed by the

Trustee under the terms of a trust agreement. Funds are held exclusively for the benefit

of participants of the Special Retirement Plan and their Beneficiaries. All benefit

payments will be made from the Trust Fund.

The name and address of the Special Retirement Plan’s Trustee is:

Fidelity Management Trust Company

82 Devonshire Street Boston, Massachusetts 02109

Plan Year

The Plan Year for the Special Retirement Plan is January 1 through December 31.

Legal Process

The Plan will be governed and construed in accordance with the laws of the State of

New York, except as such laws may be superseded by ERISA, the Internal Revenue

Code or other applicable federal law.

Any legal process related to the Special Retirement Plan should be directed to:

Office of the Senior Vice President, Secretary and General Counsel


1000 Fifth Avenue

New York, New York 10028

You may also serve legal process upon the Plan Trustee or Plan Administrator.

Receiving Financial Advice

If you have questions about financial planning with respect to your benefits under the

Special Retirement Plan, you should seek advice from a personal advisor. The Museum

cannot advise you regarding tax, investment or legal considerations relating to the Special

Retirement Plan.



Plan Interpretation

To the fullest extent permitted by law, the Museum will have the exclusive discretion to

determine all matters, including factual matters, relating to eligibility, coverage and

benefits under the Plan. The Museum will also have the exclusive discretion to

determine all matters, including factual matters, relating to interpretation and operation of

the Plan. Decisions by the Museum will be conclusive and binding.

Benefit Insurance

Benefits under this type of Plan are not insured by the Pension Benefit Guaranty

Corporation (a federal agency that insures certain pension plan benefits upon plan

termination), because the benefits you receive under this type of plan are based upon

the vested amount in your account.

Non-Assignment of Benefits

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 former spouse or children as part of a Qualified Domestic

Relations Order.

Qualified Domestic Relations Order (QDRO)

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

recognizes the rights of an alternate payee under the Special Retirement Plan with

respect to a child’s or other person’s support, alimony or marital property rights. The

Museum is legally required to recognize a QDRO. If you become legally separated or

divorced, a portion or all of your benefit under the Special Retirement Plan may be

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

spouse, child or other person.

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

the Museum. There are also specific procedures regarding the amount and timing of

payments. Participants and Beneficiaries may obtain, without charge, a copy of the



procedures governing QDRO determinations under the Plan from the Plan Administrator

by contacting the Benefits Office in the Human Resources Department.

Future of the Plan

It is the Museum’s intent that the Special Retirement Plan will continue indefinitely,

although it is anticipated that ARCs will only be made during the Initial Period. However,

the Museum reserves the right to amend, modify, suspend or terminate the Plan, in

whole or in part, in accordance with the Plan provisions. 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 allowed by law. You are always 100% vested in your Plan

account and any termination of the Plan will not affect your vested status.

If the Plan Becomes “Top Heavy”

Under a complicated set of IRS rules set out in the Plan document, the Plan may

become “top heavy.” A top heavy plan is one where more than 60% of the contributions

or benefits have been allocated to certain employees. The Museum is responsible for

determining whether the Plan is a top heavy plan each year. In the event that the Plan

becomes top heavy in any year, you may be entitled to certain minimum benefits and

special rules will apply. If the Plan becomes top heavy, the Museum will advise you of

your rights under the top heavy rules. See the Plan documents for more information.

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 Corps, 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 of employment with the Museum following military service, you are



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. Such leave will not

constitute a break in service.

PROCESS FOR SUBMITTING A CLAIM

If you have any questions about the Special Retirement Plan or if you wish to make a

claim for benefits, you should contact the Plan Administrative Committee. If you feel you

have a right to a benefit under the Plan that you have not received, you may file an

appeal of the claim for the benefit determination with the Plan Administrative Committee

as provided below.

Claims Procedure

Initial Claim

Any claim that is made with respect to eligibility, participation, contributions, benefits or

other aspects of the operation of the Plan are to be made in writing to a person

designated by the Museum for such purposes (the “Designated Person”). As of the date

of this booklet, the Designated Person is the Plan Administrative Committee. The

Designated Person will provide you with the necessary forms and make all

determinations as to the right of any person to a disputed benefit. If you are denied

benefits under the Plan, you will be notified in writing of the denial of the claim within

ninety (90) days after the Designated Person receives the claim, provided that in the

event of special circumstances such period may be extended.

With respect to any claim, the ninety (90) day period may be extended for a period of up

to ninety (90) days (for a total of one hundred eighty (180) days). If the initial ninety (90)

day period is extended, the Designated Person will notify you in writing within ninety (90)

days of receipt of the claim. The written notice of extension will indicate the special

circumstances requiring the extension of time and provide the date by which the

Museum expects to make a determination with respect to the claim. If the extension is

required due to your failure to submit information necessary to decide the claim, the

period for making the determination will be tolled from the date on which the extension

notice is sent to you on the earlier of the following: the date on which you respond to the



Designated Person’s request for information, or expiration of the forty-five (45) day

period commencing on the date that you are notified that the requested additional

information must be provided. If notice of the denial of a claim is not furnished within the

required time period described, the claim shall be deemed denied as of the last day of

such period.



If a Claim Is Wholly or Partially Denied

If your claim is wholly or partially denied, you will be notified of the following:

The specific reason or reasons for the denial,

Specific reference to pertinent Plan provisions upon which the denial is based,

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

complete the claim request and an explanation of why such material or

information is necessary,

Appropriate information as to the steps to be taken and the applicable time

limits if you want to submit the adverse determination for review, and

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

following an adverse determination on review.

Claim Denial Review

If a claim has been wholly or partially denied, you may submit the claim for review by the

Plan Administrative Committee. Any request for review of a claim must be made in

writing to the Museum no later than sixty (60) days after you receive notification of denial

or, if no notification was provided, the date the claim is deemed denied. At this point, you

may:

Be provided with reasonable access to, and copies of, relevant documents,

records, and other information relevant to your claim; and

Submit written comments, documents, records, and other information relating

to the claim. The review of the claim determination shall take into account all

comments, documents, records, and other information submitted by you

relating to the claim, without regard to whether such information was submitted

or considered in the initial claim determination.

The decision of the Plan Administrative Committee upon review will be made within sixty

(60) days after receipt of your request for review, unless special circumstances

(including, without limitation, the need to hold a hearing) require an extension. If the sixty

(60) day period is extended, the Museum will, within sixty (60) days of receipt of the

claim for review, notify you in writing. The written notice of extension should indicate the

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



Museum expects to make a determination with respect to the claim upon review. If the

extension is required due to your failure to submit information necessary to decide the

claim, the period for making the determination will be tolled from the date on which the

extension notice is sent to you until the earlier of the date on which you respond to the

Museum’s request for information, or expiration of the forty-five (45) day period

commencing on the date that you are notified that the requested additional information

must be provided.

If notice of the decision upon review is not furnished within the required time period

described, the claim on review shall be deemed denied as of the last day of such period.

The Plan Administrative Committee, in its sole discretion, may hold a hearing regarding

the claim and request that you attend. If a hearing is held, you will be entitled to be

represented by counsel.

The Plan Administrative Committee’s decision upon review of your claim will be

communicated to you in writing. If the claim upon review is denied, the notice to you will

provide:

The specific reason or reasons for the decision, with references to the specific

Plan provisions on which the 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 the claim; and

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

A document, record or other information is considered “relevant” to a claim for this

purpose if it was relied upon in making the benefit determination, was submitted,

considered, or generated in the course of making the benefit determination, without

regard to whether such document, record or other information was relied upon in making

the benefit determination, or demonstrates compliance with the administrative process

and safeguards required by law when making the benefit determination.

All interpretations, determinations and decisions of the Designated Person and the

Museum with respect to any claim, including without limitation the appeal of any claim, or

any matter relating to the Plan, will be made by the Designated Person and the Museum,

in their sole discretion, based on the Plan and comments, documents, records, and other



information presented to it, and shall be final, conclusive and binding.

The claims procedures set forth in this section are intended to comply with United States

Department of Labor Regulation § 2560.503-1 and should be construed in accordance

with such regulation. In no event shall these procedures be interpreted as expanding the

rights of Claimants beyond what is required by United States Department of Labor

Regulation § 2560.503-1.



HOW YOU MAY LOSE BENEFITS

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

from the Plan. For example:

You will not be permitted to participate in the Plan if you do not meet the

eligibility requirements for participation, your eligible compensation ends, you

reach any Plan or legal limits or you die.

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 cannot be used as collateral or to satisfy any debts or

liabilities, except if a qualified domestic relations order (“QDRO”) so decrees.

Then, money in your Plan account may be payable to someone other than

you or your designated beneficiary.



YOUR RIGHTS UNDER ERISA

As a participant in the Special Retirement 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 Museum’s Human Resources Department and

at other specified locations, such as work sites, all documents governing the

Plan including 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 Museum, copies of documents governing

the operation of the Plan, including copies of the latest annual report (Form

5500 Series). The Museum may make a reasonable charge for the copies.

Receive a summary of the Plan’s annual financial report. The Museum is

required by law to furnish each participant with a copy of this summary annual

report.

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

your normal retirement age (age 62) and if so, what your benefits would be at

normal retirement age under the Plan if you stop working now. If you do not

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

have to work to get a right to a benefit. This statement must be requested in

writing and is not required to be given more than once every 12 months. The

Plan must provide the statement free of charge.

Prudent Actions by Plan Fiduciaries

In addition to creating rights for Plan participants, ERISA imposes duties upon the

people who are responsible for the operation of the employee benefit plan. The people

who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently



and in the interest of you and other Plan participants and beneficiaries. No one, including

your employer or any other person, may fire you or otherwise discriminate against you in

any way to prevent you from obtaining a benefit or exercising your rights under ERISA.

Enforce Your Rights

If your claim for a 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

Museum 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 appeals procedures as described in the “Process for Submitting a Claim” section of

this booklet. 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 a

Federal court but only after you have exhausted the Plan’s claims and appeals

procedures as applicable to such determination.

If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are

discriminated against for asserting your rights, you may seek assistance from the U.S.

Department of Labor, or you may file suit in a Federal court. The court will decide who

should pay court costs and legal fees. If you are successful, the court may order the

person you have sued to pay these costs and fees. If you lose, the court may order you

to pay these costs and fees, for example, if the court 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.



APPENDIX A – INVESTMENT OPTIONS

Tier 1 – Target Date Retirement Funds

Target Date Retirement Funds are one-decision funds designed for investors who don’t

necessarily have the time or knowledge to create and maintain a retirement portfolio, or

the interest in doing so. Each Target Date Retirement Fund invests in broadly diversified

Vanguard funds — most of which are index-based — and is a complete portfolio in itself.

When you pick a Target Date Retirement Fund, you have one less thing to worry about,

because the asset allocation in your retirement portfolio will contain the diversification

and risk mix appropriate for your age. Currently, Fidelity offers the following 12 Vanguard

Target Date Retirement Funds:

Vanguard Target Retirement Income Fund Investor Shares

Vanguard Target Retirement 2010 Fund Investor Shares











Tier 2 – Index Funds

Index funds are mutual funds that are intended to match the performance of a market

benchmark at a low cost. For those who want to assume a greater involvement in the



management of their own investments, these options provide the flexibility to build your

own strategy to meet your needs. Fund options include:

Vanguard 500 Index Fund Signal Class

Vanguard Developed Markets Index Fund Admiral Shares

Vanguard Emerging Markets Stock Index Fund Signal Shares

Vanguard Extended Market Index Fund Signal Shares

Vanguard Short-Term Bond Index Fund Signal Shares

Vanguard Intermediate-Term Government Bond Index Fund Signal Shares

Vanguard Total Bond Market Index Fund Signal Shares

Tier 3 – Actively Managed Funds

Actively managed funds seek to outperform the market (although they can also

underperform the market). They typically have higher fees than index funds because

they are actively managed by a portfolio manager who is buying and selling securities to

meet the fund’s investment objectives. You may want to consider these options if you

are comfortable diversifying your investments on your own. Fund options include:

Fidelity® Strategic Real Return Fund*

GMO Benchmark-Free Allocation Series Fund Class R6

LKCM Small Capital Equity Fund Class Institutional

MFS Institutional International Equity Fund

Vanguard Prime Money Market Fund Investor Class

Vanguard Wellington Fund Admiral Shares

Vanguard Windsor II Fund Admiral Shares

*Short-term Redemption Fee of 0.75% for shares held less than 60 days.

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