Benefits Handbook

Loan repayments will continue to be taken from your paycheck while you are on vacation/paid leave of absence.

While you are on an unpaid leave of absence, you have to make loan repayments. You can continue to make loan repayments by:

If you do not make monthly loan repayments as scheduled or repay the entire loan upon going on unpaid leave of absence, and you do not make up the payments, then the Internal Revenue Service requires that a default be declared no later than the last business day of the calendar quarter following the calendar quarter in which your first missed payment was due. In such case, your outstanding loan balance will be deemed a distribution, your Vested account balance will be reduced by the amount of the outstanding loan as soon as permitted under the tax laws, and you will owe Federal income taxes on the unpaid balance of your loan (including interest) plus an additional 10% Federal early withdrawal tax if you are under age 59-1/2 and no IRS exception applies to you.

In addition, following a deemed distribution, the outstanding loan balance will continue to be taken into account when determining the number of loans you have outstanding and the amount available for a new loan. This can restrict your ability to take another loan in the future.

While you are on a military leave of absence, you can continue to make loan repayments by:

Alternatively, you can suspend payments for the duration of your leave. If you suspend payments, interest continues to accrue during the leave. A maximum interest rate cap imposed under Federal law could apply if you are on a military leave of absence.

While you are on long term disability, you have to make loan repayments if you retain a Plan balance. You can make monthly loan repayments by certified check, money order or via direct debit from a checking or savings account.

If you don't make monthly loan payments as scheduled or repay the entire loan upon qualifying for long term disability, and you do not make up the payments, then the Internal Revenue Service requires that a default be declared no later than the last business day of the calendar quarter following the calendar quarter in which your first missed payment was due. In such case, your outstanding loan balance will be a deemed distribution, your vested account balance will be reduced by the amount of the outstanding loan as soon as permitted under the tax laws, and you will owe Federal income taxes on the unpaid balance of your loan (including interest) plus an additional 10% Federal early withdrawal tax if you are under age 59-1/2 and no IRS exception applies to you. There is a disability exception which may apply. You may want to consult with a tax professional.

In addition, following a deemed distribution, the outstanding loan balance will continue to be taken into account when determining the number of loans you have outstanding and the amount available for a new loan. This can restrict your ability to take another loan in the future.

If you terminate employment with the Company and all affiliated employers, including by Retirement, you are eligible for a final distribution or you may elect to leave your balance in the Plan.

If you terminate employment with an outstanding loan balance, any outstanding loan balance that is not repaid will be in Default. You may voluntarily pay off the entire unpaid principal balance of the loan, and all interest owing thereon, either: (i) in the form of a lump sum payment upon your termination of employment in a single certified check or money order or (ii) in periodic payments, via Automated Clearing House (ACH), with such periodic payments to be made in accordance with the current loan repayment schedule and completed no later than the original due date of the loan. Alternative (ii) is available only if you leave your entire account balance in the Plan during the repayment period. The Internal Revenue Service requires that a default be declared no later than the last business day of the calendar quarter following the calendar quarter in which your first missed payment was due. If you do not repay your loan(s), the outstanding loan balance, plus accrued interest, may be treated as a taxable distribution from your account reducing your vested account balance by the outstanding loan amount with the outstanding loan amount (plus accrued interest) being subject to income tax including an additional 10% Federal early withdrawal tax if you are under age 59-1/2 unless an Internal Revenue Service exception applies to you.

If you request a final lump sum cash distribution of your account, Federal tax will be withheld based on the unpaid balance of your loan, plus accrued interest, unless you repay the loan prior to the distribution or direct a full direct rollover distribution.

If you would like to pay off your outstanding loan, call HR Services at +1 866 374 2662 for the pay off amount.

If you die with an outstanding loan balance, your beneficiary(ies) may repay your outstanding loan, plus accrued interest, by either: (i) repaying the loan balance (plus accrued interest) in full; or (ii) requesting to continue periodic payments using an electronic payment method, Automated Clearing House (ACH) in accordance with your current loan repayment schedule completing no later than the original due date of the loan. Alternative (ii) is available only if your beneficiary(ies) leave your entire death benefit balance in the Plan during the repayment period. The Internal Revenue Service requires that a default be declared no later than the last business day of the calendar quarter following the calendar quarter in which the first missed payment was due. If you do not fully repay the loan(s), If a loan is not timely repaid, the outstanding loan balance, plus accrued interest, will reduce your account balance by the outstanding loan amount with the outstanding loan amount (plus accrued interest) being subject to income tax. Please note that if your beneficiary(ies) choose not to repay your loan upon your death, any taxable loan distribution will be reported as income to you. If your beneficiary(ies) choose to make periodic payments and fail to make those payments, the taxable loan distribution will be reported as taxable income to your beneficiary(ies).