Important Information - Plan Update as of 10/1/20

On November 16, 2020, important changes will occur relating to the Seattle Pacific University Defined Contribution Retirement (the “Plan”). The purpose of this notice is to explain this change to you.

Current Contribution Rate and Accrual Requirements

The Plan currently provides that an Active Participant in the Plan is entitled to a contribution of 9% of Compensation plus 5.7% of Compensation in excess of 100% of the Social Security Wage Base. Most eligible employees are Active Participants throughout the year and contributions are made on a monthly basis. Employees classified as Short Hour employees working less than 0.5 FTE and Temporary Employees must earn 1000 Hours of Service during the Plan Year to become Active and begin receiving contributions.

Summary of Changes

Effective November 16, 2020, the Plan will be amended to suspend all accruals for Active Participants until such time as contributions are reinstituted, which may be made at a different rate than currently provided under the plan. That means that after November 15, 2020, no Active Participant will earn any further benefit accruals under the Plan until such time as contributions are reinstated as noted above. Benefits accrued for Compensation earned through November 15, 2020 will not be reduced by this amendment and participants will continue to earn vesting credit if not fully vested.

In addition, the Plan will be amended to suspend accruals for any employees who are not Active Participants as of November 16, 2020. That means that if you are an employee required to earn 1000 Hours of Service during the Plan Year to begin receiving a contribution, and you have not earned 1000 Hours of Service by November 16, 2020, you will not be an Active Participant for 2020 and will not accrue a benefit under the Plan. Your Hours of Service will continue to be counted towards Active status for when contributions are reinstituted.

Questions

Please contact Gary Womelsduff, Director of Human Resources Matt Alvis, Retirement Plan Administrator at 206-281-2678 2676 or womelg@spu malvis@spu.edu if you have questions about this change.

Investment Options

The University has an agreement with Transamerica Retirement Solutions (Transamerica) whereby Transamerica receives, invests, and reports on the funds sent to them on behalf of eligible employees. Employees have several investment options within the SPU monitored core lineup of funds available at Transamerica. The Office of Human Resources will provide information about these options but the participating employee directs all investment choices with Transamerica.

Eligibility

If you are employed by the University, you will be eligible to participate in the Plan at the time described below, unless you are an adjunct faculty member, a student enrolled at the University or a Leased Employee. Adjunct faculty, students and Leased Employees are not eligible to participate in the Plan.

If you are an eligible employee, you will begin participating in the Plan on the Entry Date immediately following the date on which you complete one Year of Service, provided you are at least age 21 as of that date, and you have completed 1,000 hours of service during your initial 12 months as an employee. Entry Dates are July 1, October 1, January 1 and April 1.

Vesting

Termination of Employment

Upon your termination of employment for any reason, other than death, you will be entitled to receive your vested Account balances.