cedars -sinai your choice retirement...quarter after finishing 1 year of eligible service, as long...

CEDARS-SINAI YOUR CHOICE RETIREMENT

Summary Plan Description Defined Benefit Retirement Plan (DB Plan)

Defined Contribution Retirement Plan (DC Plan)

July 1, 2012

BENEFIT RESOURCES

FOR INFORMATION ABOUT… CONTACT…

• DB Plan CSHS DB Plan Retirement Service Center

Phone: Web:

866-296-5034 Cedars-SinaiHealthSystem.MercerHRS.com

• DC Plan Wells Fargo Retirement Plan Services

Phone: Web:

800-728-3123 WellsFargo.com/RetirementPlan

• 403(b) Plan ING Financial Partners

Phone: Web: Email:

310-423-0974 (CSMC campus office) 800-584-6001 (Voice response) INGretirementplans.com [email protected]

• Enrollment questions

• How to switch plans

Cedars-Sinai HR/Employee Benefits Department

Phone: Email:

310-248-9944 [email protected]

• Beneficiary designation forms

• General benefit questions

MBC Service Center

Phone: Email:

888-302-3941 [email protected]

• Where to request US-issued marriage and birth records

CDC Vital Statistics

Web: CDC.gov/nchs/w2w

• Government-provided retirement benefits

Social Security

Phone: Web: Estimates:

800-772-1213 SocialSecurity.gov SocialSecurity.gov/estimator

• Government-provided medical benefits for retirees

Medicare

Phone: Web:

800-633-4227 Medicare.gov

https://p32web.mercerhrs.com/cedars/

https://www.wellsfargo.com/retirementplan/

https://www.ingretirementplans.com/index.shtml

mailto:[email protected]



http://www.cdc.gov/nchs/w2w.htm

http://socialsecurity.gov/

http://socialsecurity.gov/estimator/

http://www.medicare.gov/default.aspx

TABLE OF CONTENTSCEDARS-SINAI RETIREMENT BENEFITS ......................... 1 WHAT’S INSIDE ........................................................... 1 YOUR CHOICE ............................................................ 2

Your Choice Retirement Program ...................................... 2 Eligibility Requirement .................................................... 2 Service Requirement ....................................................... 2 When Is Your Choice Period? .......................................... 2 Becoming Eligible Because of a Status Change ............... 3 Changing Plans ................................................................ 3

Comparing The Plans ......................................................... 4 DEFINED BENEFIT RETIREMENT PLAN (DB PLAN) ......... 6

How the DB Plan Works ..................................................... 6 Eligibility Requirements ..................................................... 6 Starting Participation and Enrollment ................................ 6

How Eligible Service Is Counted ...................................... 6 DB Plan Benefit Formula .................................................... 7

Benefits Are Calculated Quarterly .................................. 7 Benefit Statements ......................................................... 7

Vesting ............................................................................... 8 Breaks in Service ................................................................ 8 When You Can Start DB Plan Payments ............................. 9

Normal Retirement Date................................................. 9 Early Retirement ............................................................. 9 If You Are Working at Cedars-Sinai After 65 ................... 9

Your DB Plan Benefit Upon Leaving Cedars-Sinai ............. 10 Keeping Tabs on Your Benefit ....................................... 10

Applying for Benefits ........................................................ 11 Where to Apply ............................................................. 11 Documentation Required.............................................. 11 Payment Options .......................................................... 11 Your Spouse’s Right to Your Retirement Benefits ......... 11

Survivor Benefits If You Die Before Payments Start ......... 12 Survivor Benefits Paid to a Beneficiary ......................... 12 Surviving Spouse Annuity .............................................. 12 When Surviving Spouse Payments Start ....................... 13 Small Benefit Payout ..................................................... 13 When No Beneficiary Is Designated .............................. 13

DEFINED CONTRIBUTION RETIREMENT PLAN (DC PLAN) ....................................................................... 14

How the DC Plan Works ................................................... 14 Eligibility Requirements ................................................... 14 Starting Participation And Enrollment ............................. 14

How Eligible Service Is Counted .................................... 14 How Your DC Plan Account Grows ................................... 15

Quarterly Basic Contributions ....................................... 15 Forfeiture Contributions ............................................... 16 Discretionary Contributions .......................................... 16 Rollover Contributions .................................................. 16 Previous Types of Contributions ................................... 16 Limits on Employer Contributions................................. 17 Benefit Statements ....................................................... 17 DC Plan Account Investment Management .................. 17

Vesting ............................................................................. 17 Breaks in Service .............................................................. 18 When You Take Your DC Plan Account ............................ 19 Your DC Plan Benefit Upon Leaving Cedars-Sinai ............ 19

DC Plan Benefits Are Portable ...................................... 19 Keeping Tabs on Your Benefit ...................................... 19

Applying For Benefits ...................................................... 19 Where to Apply ............................................................ 19 Your Distribution Options ............................................. 19 Rollovers ....................................................................... 20

Survivor Benefits If You Die Before Your Account Is Distributed ....................................................................... 20

Payment Options .......................................................... 20 When the Benefit Will Be Paid ..................................... 20 When No Beneficiary Is Designated ............................. 20

BENEFIT CLAIMS AND APPEALS ................................. 21 Benefit Application and Appeal Procedures .................... 21

Timeframe for Initial Decision ...................................... 21 How to File an Appeal .................................................. 22 Decision on Appeal ....................................................... 22 Time Limits on Legal Actions Against the Plans ............ 23

TAXES ON BENEFITS ................................................. 23 Lump-Sum Distributions and Mandatory Withholding 23 Rollovers ....................................................................... 24 Other Types of Distributions ........................................ 24 10% Additional Early Withdrawal Penalty Tax ............. 24

LEGAL AND ERISA INFORMATION ............................. 25 Administrative Information ............................................. 25 Plan Sponsor .................................................................... 25 Participating Employers ................................................... 25 Effective Date .................................................................. 25 Named Fiduciaries ........................................................... 25 Plan Administrator........................................................... 26 Agent for Legal Service .................................................... 26 How the Plans Are Administered ..................................... 26 Discretionary Authority ................................................... 26 Amendment and Termination of the Plans ..................... 27 Distribution of Assets upon Plan Termination ................. 27 Plan Funding and Trustee ................................................ 27

DB Plan ......................................................................... 27 DC Plan ......................................................................... 27

Financial Records of the Plans ......................................... 27 Loss Or Reduction Of Benefits ......................................... 27 Assignment of Benefits And QDROs ................................ 27 Military Leave Rights ....................................................... 28 Top Heavy Provisions....................................................... 28 Mergers, Consolidations or Transfers.............................. 28 Pension Benefit Guaranty Corporation ........................... 29 Your ERISA Rights ............................................................ 30

D B P L A N A N D D C P L A N S U M M A R Y P L A N D E S C R I P T I O N Cedars-Sinai Retirement Benefits 7/1/12 Page 1

CEDARS-SINAI RETIREMENT BENEFITS Statistics show that most people live, on average, about 20 years after retiring at 65; some people will live longer. That means while you are working, it’s wise to save enough to cover expenses for at least 20 years of retirement ...if not more!

Cedars-Sinai helps support your retirement by offering several ways to help you accumulate retirement income:

• Your Choice Retirement Program – Unlike most employers, Cedars-Sinai gives employees a choice between 2 retirement plans – either:

− A traditional pension plan (the DB Plan), or

− An account balance-type savings plan (the DC Plan).

The quarter after you meet eligibility requirements (for most employees, the quarter after your first anniversary) you can participate in one of the plans – and you choose which one.

No matter which you choose, Cedars-Sinai pays for this program, not you.

• 403(b) Plan – Cedars-Sinai sponsors the 403(b) Plan to give you the opportunity for tax-deferred savings and investment. You can start saving in the 403(b) Plan anytime; there is no waiting period. Once you become a participant in either the DB Plan or DC Plan, you also become eligible to receive a matching contribution to your 403(b) Plan account from Cedars-Sinai. Keep in mind you must contribute to the 403(b) Plan to receive a Cedars-Sinai match.

In addition, the government-sponsored Social Security program is designed to provide about a third of your retirement income and Medicare helps pay for medical care starting at age 65.

• Social Security – Most years, 6.2% of your pay (to the annual IRS-set compensation limit*) goes to Social Security; Cedars-Sinai contributes the same amount. Because of the recent legislation, during 2011 employee contributions to Social Security are reduced: 4.2% (to the annual IRS-set compensation limit*) of your pay goes to Social Security and Cedars-Sinai continues to pay 6.2%. * $106,800 in 2011 and $110,000 in 2012.

• Medicare – 1.45% of your pay goes to Medicare and Cedars-Sinai makes an equal matching contribution.

WHAT’S INSIDE

This document describes benefits provided under the Defined Benefit Retirement Plan (DB Plan) and the Defined Contribution Retirement Plan (DC Plan), and serves as the Summary Plan Description for both plans. (There is a separate summary for the 403(b) Plan.)

This Summary Plan Description covers:

• Choosing a plan

• Eligibility and enrolling

• DB Plan benefits

• DC Plan benefits

• Claims and appeals

• Taxes on benefits

• Legal information and your rights.

D B P L A N A N D D C P L A N S U M M A R Y P L A N D E S C R I P T I O N Your Choice 7/1/12 Page 2

YOUR CHOICE

YOUR CHOICE RETIREMENT PROGRAM

Cedars-Sinai is one of the few employers in the United States that lets you choose your retirement plan – either the:

• DB Plan – a traditional pension plan

• DC Plan – an account-based plan.

You have the opportunity to choose which plan you want the quarter after finishing 1 year of eligible service, as long as you aren’t in a non-eligible job status (see the next column). You have a 45-day choice period to elect a plan.

Shortly before your choice period, a Your Choice Retirement Program packet is mailed to your home address. The choice packet contains a personalized statement estimating what you might earn from the DB Plan or DC Plan and other sources of retirement income (403(b) Plan and Social Security), a booklet comparing DB Plan to DC Plan benefits/features and an election form.

To help you choose, you have access to an online modeling program where you can change the assumptions, such as retirement ages or investment earnings, and see how it would affect your benefits.

You have 45 days to elect a plan. At the end of this choice period, you are then enrolled in the plan you selected, retroactive to the first day of the quarter you became eligible.

Eligibility Requirement

All Cedars-Sinai employees are eligible to participate, except: Leased or contract employees, physicians-in-training, per diem employees hired after June 30, 1989, “non-benefited employees” and certain executives, faculty members and chairs who participate in the grandfathered executive retirement plan.

Service Requirement

Eligible employees start participating the quarter after 1 year of eligible service: which is a 1-year period during which you are paid for at least 1,000 hours. The first 1,000-hour period is counted from your hire date to your 1-year anniversary. After that, the hours are counted on a calendar year basis (Jan. 1 to Dec. 31), starting with the calendar year in which your anniversary date falls. Paid hours include hours you are paid or entitled to be paid, such as paid time off (vacation, holiday and sick leave). If you are not paid or entitled to be paid for at least 1,000 hours in a year, you will not become a plan participant or be eligible for DB Plan or DC Plan benefits.

If you do not make a choice between the DB Plan and DC Plan by the end of your choice period, you are automatically enrolled in the DC Plan.

When Is Your Choice Period? For employees hired into an eligible status who are regularly scheduled to work more than 20 hours a week, the choice period and participation timeframes usually follow schedule 1, below.

If you have been in a non-eligible status (such as per diem, “non-benefited”) and later become eligible, the timeframes are described on the next page.

Choice Period Example Marcy is a full-time Management Assistant with a hire date of May 18, 2011. She is paid for at least 1,000 hours during her first year of employment ending May 18, 2012. She becomes eligible the first day of the next quarter – July 1, 2012. Marcy receives a choice packet in late June, her choice period is July 1– Aug. 15, 2012 and benefit contributions (DC Plan) or accruals (DB Plan) to the plan of her choice start retroactively to July 1, 2012.

1 – CHOICE PERIOD AND PARTICIPATION TIMEFRAMES

If your first year anniversary* is between:

You become eligible:

Your choice period is:

Contributions/accruals to the plan of your choice start:

Jan. 1 – Mar. 31 April 1 April 1 – May 15 April 1

April 1 – June 30 July 1 July 1 – Aug. 15 July 1

July 1 – Sept. 30 Oct. 1 Oct. 1 – Nov. 15 Oct. 1

Oct. 1 – Dec. 31 Jan. 1 Jan. 1 – Feb. 15 Jan. 1

*and you meet the eligibility and service requirements, as described above.


Becoming Eligible Because of a Status Change

If you become eligible because of job status change, usually your choice period follows schedule 2 (below) because you become eligible after the cut-off date for preparing the statements and choice packets for the upcoming quarter, and your choice period is delayed a quarter. So that you don’t lose that quarter’s retirement benefit, Cedars-Sinai makes a default DC Plan contribution for your first quarter of

eligibility. The following quarter you receive a choice packet, choose a plan and future contributions are made to the plan of your choice. Please note: accruals do not transfer between the DC Plan and DB Plan; if you select the DB Plan, Cedars-Sinai’s default DC Plan contribution for your first quarter eligibility stays in your DC Plan account and you’ll have a benefit in both plans.

Eligibility (and Choice Period) Upon Status Change Example Here’s the sequence of dates, hours worked and events leading to an example employee becoming eligible after a status change.

Feb. 9, 2009 Sarah is hired in a per diem status as a Clinical Nurse.

Feb. 9, 2009 – Feb. 9, 2010 During Sarah’s first year, she’s paid for 915 hours. Sarah’s hours and job status are reviewed, but because she’s not in an eligible status and she doesn’t have at least 1,000 paid hours by her first anniversary, she’s not eligible.

Jan. 1 – Dec. 31, 2010 Sarah has 1,842 paid hours.

Jan. 1, 2011 Sarah’s hours and job status are reviewed and although she meets the 1,000-paid-hours requirement, she’s not eligible because of her per diem status.

Mar. 28, 2012 Sarah’s status/job code changes to a non-per diem job status.

April 1, 2012 Sarah’s eligibility date.

April 1 – June 30, 2012 Sarah receives a default DC Plan contribution for the period.

Late June 2012 Sarah’s choice packet is mailed.

July 1 – Aug. 15, 2012 Sarah’s choice period.

July 1, 2012 Contributions/accruals to Sarah’s plan of choice start (retroactively to July 1).

2 - CHOICE PERIOD AND PARTICIPATION TIMEFRAMES AFTER STATUS CHANGE

If your status change* occurs between:

You become eligible on:

You receive a default DC Plan contribution for:

Your choice period is:

Contributions/accruals to the plan of your choice start:

Jan. 1 – Mar. 31 April 1 April 1 – June 30 July 1 – Aug. 15 July 1

April 1 – June 30 July 1 July 1 – Sept. 30 Oct. 1 – Nov. 15 Oct. 1

July 1 – Sept. 30 Oct. 1 Oct. 1 – Dec. 31 Jan. 1 – Feb. 15 Jan. 1

Oct. 1 – Dec. 31 Jan. 1 Jan. 1 – Mar. 31 April 1 – May 15 April 1

* and you meet the eligibility and service requirements, as described on page 2.

Changing Plans

Once you begin participation in either the DB Plan or DC Plan, you may change plans ONCE while employed at Cedars-Sinai. To do so, contact Suzanne Schwartz (by calling 310-248-9944 or emailing [email protected]) for a change form. Return the completed form to the Cedars-Sinai HR/Employee Benefits Department (50N Suite 350).

Keep in mind that benefits do not transfer between the DB Plan and DC Plan. If you switch plans, you’ll have benefits in both plans.



COMPARING THE PLANS

PLAN FEATURE

YOUR CHOICE

DB PLAN DC PLAN

Type of Benefit

• Monthly pension payment • Account balance

How the Plan Works

When you retire, the DB Plan pays you a monthly benefit for your lifetime. The amount is based on:

• The sum of your pay while participating in the DB Plan.

• Your age when you start receiving monthly benefits.

• Type of monthly payment you choose (for instance, payments for your lifetime only or also for the life of your spouse if you die first).

• Your benefit is your account balance when you take it from the plan. Usually it’s paid in 1 lump-sum payment.

• Once you receive the money from the plan, it’s up to you to invest it and make it last through retirement.

How Your Benefit Grows

• Each quarter that you participate in the DB Plan, the pay you earn during the quarter is added to the benefit formula, and your monthly payment amount grows larger.

• Each quarter that you participate in the DC Plan, Cedars-Sinai makes a contribution to your DC Plan account (as long as you are employed on the last day of the quarter).

• The amount of this contribution is based on your pay and years of eligible service.

• Money in the DC Plan account is invested by the plan and your account balance can grow (or possibly decrease) based on investment returns.

Who Contributes • Cedars-Sinai only • Cedars-Sinai only

Vesting When the benefit is yours to keep

Years of Eligible Service % Vested Years of Eligible Service % Vested

Less than 2 2 3 4

5 or more

0% 0% 0% 0%

100%

Less than 2 2 3 4

5 or more

0% 25% 50% 75%

100%

You also become vested upon reaching age 65 while an active employee or leaving Cedars-Sinai employment because of total and permanent disability or death.

Investment Returns • Not applicable (because your benefit is based on a fixed formula rather than account contributions and investment returns).

• Your account balance will reflect investment earnings and losses.

• Assets are invested by the plan – you do not direct the investment of money in your account.


PLAN FEATURE

YOUR CHOICE

DB PLAN DC PLAN

When Benefits Can Be Paid

• Pension payments normally start at 65, but if you’ve left Cedars-Sinai, you may be able to start payments earlier (see Early Retirement).

• If you leave Cedars-Sinai before retirement, benefits are not portable and cannot be rolled over into an IRA or another eligible plan (unless the lump-sum value is less than $5,000).

• If employed at Cedars-Sinai at 65, you can start pension payments while still working; before 65, you must leave Cedars-Sinai to start payments.

• Benefits are portable; when you leave Cedars-Sinai, you can take your vested account balance with you (subject to income taxes and possibly 10% early withdrawal penalty tax if under 59½).

• If employed at Cedars-Sinai at 65, you can take your money from the plan while still working; before 65, you must leave Cedars-Sinai to take your vested account with you.

Early Retirement • You can start your monthly pension payments early – anytime between 55 and 65 if you have left Cedars-Sinai and you have at least 10 years of eligible service.

• If you start payments before 65, the amount is reduced because of the likelihood it will be paid over a longer period; the earlier you retire, the greater the reduction.

• Not applicable. Your account balance is not reduced if you take it before retirement. (But it may be subject to penalty taxes if you take it before age 59½.)

Statements • You receive quarterly statements from Wells Fargo.

If You Switch Plans • You can switch between the DB Plan and DC Plan ONCE during your Cedars-Sinai employment.

• If you switch plans, all new DB Plan accruals or DC Plan contributions go into your new plan choice. Previously earned benefits do not transfer to the new plan; benefits under the 2 plans are kept separate and remain subject to applicable separate plan rules.

• Vesting service is counted for both plans’ benefits. When you switch plans, you continue to earn a year of vesting service for each calendar year you are paid for 1,000 or more hours under both your new plan and your old plan.

Notes for Long-Service Employees

• If you were hired before 1991 and participated in the DB Plan, you have a DB Plan accrued benefit no matter which plan you chose in 2003.

• If you were hired before 2003 and participated in the DC Plan, you have a DC Plan account balance no matter which plan you chose in 2003.

• Matching contributions before 2003 were made to the DC Plan (not the 403(b) Plan).

D B P L A N A N D D C P L A N S U M M A R Y P L A N D E S C R I P T I O N Defined Benefit Retirement Plan (DB Plan) 7/1/12 Page 6

DEFINED BENEFIT RETIREMENT PLAN (DB PLAN)

HOW THE DB PLAN WORKS The DB Plan provides monthly pension payments starting when you retire and lasting for your lifetime. The monthly payment amount – also called an accrued benefit – is based on a formula and your eligible pay while a DB Plan participant. The payment amount is adjusted if you retire and start payments before or after age 65 or if you choose a payment type that could continue the payments to another person after your death.

This type of plan is called a “defined benefit plan” because the monthly benefit is based on a set formula defined by the plan, rather than on contributions to an account and any investment gains or losses, so your benefit is unaffected by stock market ups and downs.

ELIGIBILITY REQUIREMENTS All Cedars-Sinai employees are eligible to participate, except:

• Employees who are actively participating in the DC Plan

• Leased or contract employees

• Physicians-in-training

• Per diem employees hired after June 30, 1989

• “Non-benefited employees”

• Certain executives, faculty members and chairs who participate in the grandfathered executive retirement plan.

STARTING PARTICIPATION AND ENROLLMENT The quarter after you finish 1 year of eligible service (defined below), you have the opportunity to choose either to participate in the DB Plan or the DC Plan. If you select the DB Plan, you become a participant retroactively to the first day of that quarter, as explained in Your Choice on page 2.

If you leave Cedars-Sinai after becoming a DB Plan participant and later return to Cedars-Sinai employment, you’ll start participating in the DB Plan and new accruals start upon your return.

How Eligible Service Is Counted

Eligible service is used to determine:

• When you can start participating in the DB Plan or DC Plan

• DB Plan vesting (when the benefit is yours to keep).

Once you begin participating in the DB Plan, you continue to earn benefits under this plan even if you have less than 1,000 paid hours in a year. However, if you are paid for less than 1,000 hours in a calendar year, you do not earn a year of eligible service for vesting purposes (see Vesting on page 8).

Eligible service includes:

• 1 year of eligible service – A 1-year period in which you are paid for at least 1,000 hours. The first 1,000-hour period is counted from your hire date to your 1-year anniversary. After that, the hours are counted on a calendar year basis (Jan. 1 to Dec. 31), starting with the calendar year in which your anniversary date falls. Paid hours include hours you are paid or entitled to be paid, such as paid time off (vacation, holiday and sick leave). If you are not paid or entitled to be paid for at least 1,000 hours in a year, you will not become a plan participant or be eligible for DB Plan benefits.

• Service with an organization that became part of Cedars-Sinai – For eligibility and vesting purposes, employees receive eligible service credit for paid hours from Comprehensive Cancer Centers, Inc., Aptium Health Care, Inc. or Aptium Oncology, Inc. on Sept. 30, 2009, for years of service prior to Oct. 1, 2009.


DB PLAN BENEFIT FORMULA The DB Plan provides monthly pension payments starting when you retire and lasting for your lifetime. The DB Plan uses the following formula to calculate your monthly payment amount (also called an accrued benefit).

Monthly payments =

Sum of the pay* you receive while you participate in the DB Plan

after July 1, 2003

Multiplied by 1.7%

Divided by 12 (months)

Plus any benefit earned while participating in the DB Plan before Jan. 1, 1991.

This formula assumes payments start at age 65 and are paid as a single life annuity (that is, for your lifetime only).

If you start payments before or after 65, or if you choose a payment type other than a single life annuity, your monthly payment is adjusted accordingly, as explained in When You Can Start DB Plan Payments (on page 9) and Payment Options on page 11.

*Pay Defined – To calculate your accrued benefit, the DB Plan uses your total wages (as reportable on your W-2 form) plus any pretax contributions you make – for instance, pretax healthcare premiums, 403(b) Plan contributions or transportation benefits – up to IRS limits ($245,000 in 2011 and $250,000 in 2012; adjusted periodically for inflation). Effective Jan. 1, 2009, pay also includes differential wage payments for qualified military service (see Military Leave Rights on page 28). Unlike the DC Plan, you do not have to be a DB Plan participant on the last day of the quarter for the plan to use the pay you earned earlier in the quarter in the benefit formula.

DB Plan benefits were temporarily frozen on Dec. 31, 1990. No pay earned on or after Jan. 1, 1991 and on or before June 30, 2003 is considered in determining DB Plan benefits.

Example: Calculating a DB Plan Benefit

Asha became a DB Plan participant on Oct. 1, 2009 and was paid $52,500 from Oct. 1, 2009 through Sept. 30, 2010. The monthly payment she earned for that year would be calculated this way:

$52,500 x 1.7% = $892.50 $892.50 ÷ 12 (months) = $74.38 per month.

The next year Asha earns $54,075 from Oct. 1, 2010 through Sept. 30, 2011. The monthly retirement benefit she earns for that year would be calculated this way: $54,075 x 1.7% = $919.28 $919.28 ÷ 12 (months) = $76.61 per month.

So far, she has earned a DB Plan benefit of: $150.99 per month ($74.38 + $76.61).

Benefits Are Calculated Quarterly

For simplicity, the previous example shows annual benefit growth; in fact, benefits are credited quarterly and grow each quarter you are eligible and participate in the DB Plan. You do not have to be an active employee on the last day of the quarter for the pay you earned during your last quarter to be used in the DB Plan formula.

Benefit Statements

Each quarter you are a DB Plan participant, you receive a benefit statement showing pay added to the benefit formula since the previous quarter and your DB Plan accrued benefit (the monthly benefit payment you would receive starting at age 65 if paid as a single life annuity). After the quarter ends, the DB Plan uses the pay you’ve earned during the quarter to calculate your accrued benefit. Usually statements are processed the quarter after that; consequently, statements are usually sent 4 to 6 months after the quarter ends.


VESTING Being eligible and participating in the plan don’t necessarily mean you’ll receive a benefit – you also must be vested. Vesting is the process of gaining ownership of the benefit over time. If you leave Cedars-Sinai before you’re 100% vested, you are not entitled to a benefit from the DB Plan.

You become vested in your DB Plan benefits according to the following schedule. (Each year you have 1,000 or more paid hours, you earn 1 year of eligible service.)

DB PLAN VESTING SCHEDULE

YEARS OF ELIGIBLE SERVICE

PERCENT VESTED

1 0%

2 0%

3 0%

4 0%

5 or more 100%

You also automatically become 100% vested if you’re still working for Cedars-Sinai at age 65, or if your Cedars-Sinai employment ends because you die or become disabled.

Disabled means you are not able to engage in any substantial gainful activity due to physical or mental impairment, the disability is expected to be long term and last indefinitely or result in death, and you qualify for benefits under the Cedars-Sinai Long Term Disability Insurance plan.

BREAKS IN SERVICE A break in service is important if you leave Cedars-Sinai employment and return, but were not vested when you left.

If you leave Cedars-Sinai before being 100% vested in your DB Plan benefit, you may forfeit the DB Plan benefit. Break in service rules determine whether your previous service is counted for calculating your vesting and your DB Plan benefit:

• If you were 0% vested when your Cedars-Sinai employment ended, and you have 5 (or more) consecutive 1-year breaks in service, the eligible service you earned is permanently lost. If you are rehired by a Cedars-Sinai employer, you do not receive credit for your previous eligible service.

• If you were 0% vested when your Cedars-Sinai employment ended, but you have fewer than 5 consecutive 1-year breaks in service, the eligible service you earned before your break counts for vesting service, and pay while previously a DB Plan participant will be used to calculate your DB Plan benefit when you rejoin the plan.

• If you were vested when you left, and later you’re rehired by a Cedars-Sinai employer, you continue to be 100% vested in the benefits you earn after rehire.

If you have any questions about how a break in service may apply to you, contact the CSHS DB Plan Retirement Service Center.

BREAK IN SERVICE SUMMARY TABLE

If you left C-S with this percentage vested and had this many consecutive

1-year breaks in service

Are years of eligible service and pay from C-S previous employment counted?

(for vesting and pay as a DB Plan participant used to calculate DB Plan benefit)

What happens to the unvested accrued benefit forfeited

when you left?

0% vested 5 (or more) consecutive 1-year breaks in service

No Lost

0% vested Fewer than 5 consecutive 1-year breaks in service

Yes Restored

100% vested Any number of consecutive

1-year breaks in service Yes N/A


WHEN YOU CAN START DB PLAN PAYMENTS

Normal Retirement Date

If you are vested, you would normally start receiving your benefits from the DB Plan on the first day of the month on or after your 65th birthday. This is called your “normal retirement date.” You can start receiving your retirement benefits even if you’re still employed at Cedars-Sinai. If you leave Cedars-Sinai with a vested DB Plan benefit before age 65, you must start payments by your 65th birthday.

Early Retirement

If you’ve left Cedars-Sinai, you can start receiving benefits any time after age 55, as long as you have 10 or more years of eligible service with Cedars-Sinai. (If you were a participant before July 1, 2003, you must have 5 or more years of eligible service.) When you start receiving benefit payments before age 65, your benefits stretch out over a longer period, so your monthly payment decreases by 6⅔% per year from ages 60-65 and 3⅓% from ages 55-60, as shown below. The earlier you retire, the lower your monthly benefit payment.

EARLY RETIREMENT BENEFIT REDUCTION SCHEDULE

IF PAYMENTS START AT THIS AGE

YOU RECEIVE THIS PERCENT OF AGE 65

PAYMENT

64 93.33%

63 86.67%

62 80.00%

61 73.33%

60 66.67%

59 63.33%

58 60.00%

57 56.67%

56 53.33%

55 50.00%

Example: Early Retirement Benefit Reduction

If Anna’s monthly benefit was $1,000 and she chose to retire at age 55, her early retirement benefit would be: $1,000 x 0.50, or $500 a month.

If You Are Working at Cedars-Sinai After 65

If you participate in the DB Plan and continue working at Cedars-Sinai after age 65, you may start receiving monthly payments from this plan once you turn 65 (your normal retirement date), even if you’re still working. You can also delay receiving payments until age 70½. If you:

• Continue to work past age 65 and start receiving your monthly benefit – The monthly amount equals the value of the benefit you have earned to the date the benefit starts. Benefit updates are recalculated each quarter to take into account the additional pay you’ve earned as a DB Plan participant.

• Continue to work past age 65 and do not start receiving your monthly benefit, your DB Plan benefit continues to grow as before and also is adjusted for the value of payments you did not receive.

• Retire and later return to work at Cedars-Sinai, your monthly benefit payments do not stop.


YOUR DB PLAN BENEFIT UPON LEAVING CEDARS-SINAIDB Plan benefits do not grow after you leave Cedars-Sinai. Once your Cedars-Sinai employment ends, you receive a letter from the CSHS DB Plan Retirement Service Center showing the benefit you’ve earned under this plan through your last day of employment. You also receive a last quarterly benefit statement to save for your records. If you’re vested in the DB Plan benefit when you leave Cedars-Sinai, you have the right to receive a DB Plan benefit; otherwise you forfeit any accrued benefit.

Upon leaving Cedars-Sinai, the CSHS DB Plan Retirement Service Center calculates the lump-sum value of your benefit (that is, the estimates of all monthly payments an average person is likely to receive during retirement if paid as a single amount, taking into account the time value of money).

• If the lump-sum value of your vested DB Plan benefit is $5,000 or more, your money stays in the DB Plan until retirement.

• If the lump-sum value of your vested DB Plan benefit is between $1,000 and $5,000, you can have the lump sum paid out to you or leave it in the DB Plan. (If the lump-sum value becomes more than $5,000 at a later date, you won’t be permitted to take a lump-sum payment.) A few months after leaving, the CSHS DB Plan Retirement Service Center contacts you about rolling over this money so you can continue to save for retirement.

• If the lump-sum value of your vested DB Plan benefit is less than $1,000, you do not have the option to leave the money in the DB Plan. A few months after leaving, the CSHS DB Plan Retirement Service Center contacts you about rolling over this money so you can continue to save for retirement. If you don’t request a rollover by the deadline, they send you a check for the lump-sum value of your benefit, less 20% withholding for federal income tax. Keep in mind if you are under age 59½, in most cases you will owe income taxes and a 10% early withdrawal penalty tax.

Keeping Tabs on Your Benefit

• You can get information about your DB Plan benefit from the CSHS DB Plan Retirement Service Center website: Cedars-SinaiHealthSystem.MercerHRS.com.

• Keep your current address on file with the CSHS DB Plan Retirement Service Center so you continue to receive an Annual Funding Notice each year. (The Annual Funding Notice is a report on the financial status and other important information about the DB Plan.)



APPLYING FOR BENEFITS Apply for your DB Plan benefit about 2 months before you want payments to begin. When you apply, the CSHS DB Plan Retirement Service Center sends you estimated monthly payment amounts based on your planned benefit start date. Because of IRS rules, DB Plan application materials can be created no more than 90 days before the date payments start. If you don’t return the fully completed forms in a timely manner, or if the CSHS DB Plan Retirement Service Center has to return the forms to you because they are incomplete, they may have to recreate the materials and you may have to start the process again.

Where to Apply

Contact the CSHS DB Plan Retirement Service Center for an application:

Phone: 866-296-5034

Web: Cedars-SinaiHealthSystem.MercerHRS.com

Documentation Required

A certified copy of your birth certificate or other proof of age must be submitted with your application. If you’re married or designating someone to receive a continuing benefit, you need a certified copy of their birth certificate or other proof of age, too. This could take several months, so start early. If you don’t have a birth certificate, the CSHS DB Plan Retirement Service Center will take a valid driver’s license or passport.

Sources for birth and marriage records include:

• Department of Health or Department of Vital Statistics in state or country of birth

• National Center for Health Statistics website listing where to write for US birth and marriage records: CDC.gov/nchs/w2w

• Vitalcheck.com (online service)

Payment Options

The DB Plan pays a monthly benefit starting when you retire and lasting for your lifetime with a variety of options that continue payments to the person you designate:

• Single Life Annuity – Monthly payments for your lifetime. When you die, payments stop; no payments are made to a survivor or beneficiary.

• Single Life Annuity with 60 or 120 Months Guaranteed – Monthly payments for your lifetime. If you die after payments start but before 60 or 120 payments have been made, the remainder of the 60 or 120 payments is made to the person you designate.

• Joint and 50%, 75% or 100% Survivor Annuity – Monthly payments for your lifetime. If you die before the person you designate, 50%, 75% or 100% of the payment continues to that person.

Using the DB Plan benefit formula, your benefit is calculated as a single life annuity. When selecting a payment option that continues the benefit to another person, or if you start payments before 65, it’s likely the benefit will be paid over a longer period and consequently, the monthly amount decreases. The longer the expected payment period, the smaller the monthly payment amount will be.

You can contact the CSHS DB Plan Retirement Service Center for estimated benefit amounts under the different payment options.

Your Spouse’s Right to Your Retirement Benefits

Your (opposite-sex) spouse has a legally-protected right to be the person you designate to receive payments under a 50% joint and survivor annuity. If you are married, you cannot select a different person to be your joint annuitant or a payment type other than a 50%, 75% or 100% joint and survivor annuity without your spouse waiving his or her right to the benefit. Your spouse must consent to your election by signing the waiver on the DB Plan benefit application, with the signature witnessed by a notary.


http://cdc.gov/nchs/w2w/

http://www.vitalchek.com/


SURVIVOR BENEFITS IF YOU DIE BEFORE PAYMENTS START If you have a DB Plan benefit and you die before payments start, your beneficiary is eligible to receive a benefit from the DB Plan if (you need 1 from each box):

You are married to an opposite-sex spouse

OR Have 1 hour of eligible service after

July 1, 2003

AND

You die while an active employee (even if you were not vested)

OR You are vested (even if you had left

Cedars-Sinai employment)

Opposite-sex spouses are eligible for a surviving spouse annuity (described below). In all other situations, a survivor benefit is paid to the person you named as beneficiary.

Survivor Benefits Paid to a Beneficiary

Your beneficiary receives a lump-sum payment equal to the value of a surviving spouse annuity, assuming your beneficiary is the same age as you (described below). If you have more than 1 beneficiary it will be split equally, unless you designated certain percentages to each beneficiary named. The payment is made as soon as possible after your death.

Surviving Spouse Annuity

Your (opposite-sex) surviving spouse receives a preretirement survivor annuity. (A monthly benefit payment for life (an annuity) equal to 50% of the monthly payment amount you would have received if you retired on your date of death and elected a joint and 50% survivor annuity.) If you die before reaching age 65, the survivor annuity is further reduced by the early retirement percentage.

The plan also uses the following assumptions to determine the retirement date for surviving spouse annuities:

WHEN PRE-RETIREMENT SURVIVOR ANNUITIES ARE PAID

If on the date of your death you…

And you were… Your surviving spouse’s annuity would be calculated as if…

Were actively employed Not yet eligible for early retirement

Your employment ended on the date of your death, and you lived until the date you would become eligible for early retirement (without earning any additional benefits), then died the next day.

Already eligible for early retirement

You had retired on the date of your death.

Had left Cedars-Sinai employment

Not yet eligible for early retirement

You lived until the date you would become eligible for early retirement (without earning any additional benefits), then died the next day.


You had retired on the date of your death.

Were on USERRA leave Not yet eligible for early retirement

You returned to Cedars-Sinai within the time limit required by law, you lived until the date you would become eligible for early retirement (without earning any additional benefits), then died the next day.


You returned to Cedars-Sinai within the time limit required by law, then died the next day.


When Surviving Spouse Payments Start

Monthly annuity payments to your surviving spouse begin on the first day of the month on or after the later of:

• The earliest date you would have been eligible to receive benefits from the DB Plan had you survived or

• The date of your death.

This means, in general terms, if you were under age 55 with 10 years of service at death, your spouse could start receiving payments on your early retirement date. If you were older than 55, your surviving spouse could start receiving benefits right away.

Your surviving spouse has the option to delay the start of the monthly payments until the date you would have reached normal retirement age (generally 65). The effect of waiting until 65 is that the monthly payment would be larger because of the likelihood the total benefit is spread over fewer payments.

Small Benefit Payout

When your Cedars-Sinai employment ends (for any reason, including death), the CSHS DB Plan Retirement Service Center calculates the lump-sum value of your benefit; that is, generally they estimate the total of all monthly payments an average person is likely to receive during retirement if paid as a single amount, taking into account the time value of money. If the lump-sum value of your vested DB Plan benefit is $5,000 or more, it must be paid as an annuity (monthly payments for life); otherwise, if:

• $1,000 or less, it is automatically paid to your spouse in 1 lump sum

• Over $1,000 and less than $5,000, your spouse can choose to receive either 1 lump sum or an annuity.

To continue saving for retirement, defer income taxes and avoid penalty taxes, your spouse can roll over the small benefit payouts to an IRA or an employer’s retirement plan (if permitted by that plan).

When No Beneficiary Is Designated

If you do not have a valid DB Plan beneficiary form on file with the Cedars-Sinai HR/Employee Benefits Department when you die, survivor benefits (if any) are paid in the following order:

• Your (opposite-sex) surviving spouse

• Your descendants per stirpes (each branch of the family is to receive an equal share)

• Your executor or administrator, or

• Your next of kin as provided by the laws of the state in which you die as a resident.

You can update your beneficiary(ies) anytime.* Call the MBC Service Center or the CSHS DB Plan Retirement Service Center for a new Beneficiary Designation form. Return the completed form to the Cedars-Sinai HR/Employee Benefits Department.

* Your (opposite-sex) spouse has a legally-protected right to be your retirement plan beneficiary. Your spouse must consent to your designation of another person by signing the waiver on the beneficiary form, with the signature witnessed by a notary.

D B P L A N A N D D C P L A N S U M M A R Y P L A N D E S C R I P T I O N Defined Contribution Retirement Plan (DC Plan) 7/1/12 Page 14

DEFINED CONTRIBUTION RETIREMENT PLAN (DC PLAN)

HOW THE DC PLAN WORKS A defined contribution plan is like a savings account, where your account grows with contributions from Cedars-Sinai and investment returns. If you are a DC Plan participant on the last day of the calendar quarter, Cedars-Sinai makes a contribution for the quarter to your DC Plan account. The amount is based on your years of eligible service and pay during the quarter. This plan is called a “defined contribution plan” because the amount that Cedars-Sinai contributes to your account is defined.

The contributions are invested by the DC Plan. Each business day that the trustee (Wells Fargo) and the New York Stock Exchange are open for business, your account receives applicable investment gains and losses.

DC Plan benefits are portable. When you leave Cedars-Sinai, you can take your vested account balance with you.

ELIGIBILITY REQUIREMENTS All Cedars-Sinai employees are eligible to participate, except:

• Employees who are actively participating in the DB Plan

• Leased or contract employees

• Physicians-in-training

• Per diem employees hired after June 30, 1989

• “Non-benefited employees”

• Certain executives, faculty members and chairs who participate in the grandfathered executive retirement plan.

STARTING PARTICIPATION AND ENROLLMENT The quarter after you finish 1 year of eligible service, you have the opportunity to choose either to participate in the DB Plan or the DC Plan. If you select the DC Plan (or if you don’t make an election), you become a DC Plan participant retroactively to the first day of that quarter, as explained in Your Choice on page 2.

If you leave Cedars-Sinai after becoming a DC Plan participant (or eligible to participate) and later return to Cedars-Sinai employment, you start participating in the DC Plan immediately upon rehire.

How Eligible Service Is Counted

Eligible service is used to determine:

• When you can start participating in the DB Plan or the DC Plan

• DC Plan vesting (when the benefit is yours to keep)

• The DC Plan contribution rate.

Eligible service includes:

• 1 year of eligible service – A 1-year period in which you are paid for at least 1,000 hours. The first 1,000-hour period is counted from your hire date to your 1-year anniversary. After that, the hours are counted on a calendar year basis (Jan. 1 to Dec. 31), starting with the year in which your anniversary date falls. Paid hours include hours you are paid or entitled to be paid, such as paid time off (vacation, holiday and sick leave).

• If you are not paid or entitled to be paid for at least 1,000 hours in a year, you will not become a plan participant or receive a year of eligible service for vesting purposes.


• Service with an organization that became part of Cedars-Sinai – For eligibility and vesting purposes, employees receive eligible service credit for paid hours from these organizations:

− For employees of the Medical Group of Beverly Hills, Inc. on Dec. 31, 1993, years of service prior to Jan. 1, 1994

− For employees of Greater Valley Management Services Organization, Inc. on June 30, 1997, years of service prior to July 1, 1997

− For employees of the Medical Group for Cardiology/Internal Medicine on Nov. 30, 1997, years of service prior to Dec. 1, 1997

− For employees of The Cedars-Sinai Laboratory Services Limited Partnership on Sept. 23, 2000, years of service prior to Sept. 24, 2000

− For employees of Comprehensive Cancer Centers, Inc., Aptium Health Care, Inc. or Aptium Oncology, Inc. on Sept. 30, 2009, years of service prior to Oct. 1, 2009.

Once you begin participating in the DC Plan, you continue to receive employer contributions under the DC Plan even if you have less than 1,000 paid hours in a year. However, if you are paid for less than 1,000 hours in a calendar year, you don’t earn a year of eligible service for vesting purposes (see Vesting on page 17) and your DC Plan contribution rate percentage doesn’t grow.

HOW YOUR DC PLAN ACCOUNT GROWS Your DC Plan benefit is your vested DC Plan account balance when you take it from the plan. DC Plan accounts grow from Cedars-Sinai’s contributions and investment earnings. The Quarterly Basic Contribution is the primary contribution Cedars-Sinai makes to DC Plan accounts. Your account also can grow with several other types of contributions, as described below.

Quarterly Basic Contributions Each quarter, Cedars-Sinai makes a contribution to your DC Plan account equal to your quarterly pay* multiplied by your contribution rate.

DC PLAN CONTRIBUTION SCHEDULE


DC PLAN CONTRIBUTION RATE

1 - 4 3.0% of pay*

5 - 9 4.0% of pay

10 - 14 5.5% of pay

15 - 19 8.0% of pay

20 or more 11.0% of pay

You receive the contribution if you are a DC Plan participant and an active employee on the last day of the quarter, or if you die, retire or become disabled during the quarter.

*Pay Defined – To calculate Cedars-Sinai’s DC Plan contribution, the DC Plan uses your total wages (as reportable on your W-2 form) plus any pretax contributions you make – for instance, pretax healthcare premiums, 403(b) Plan contributions or transportation benefits – up to IRS limits ($245,000 in 2011 and $250,000 in 2012; adjusted periodically for inflation). Effective Jan. 1, 2009, pay also includes differential wage payments for qualified military service (see Military Leave Rights on page 28).


Example: Quarterly Basic Contribution Maria has 9 years of eligible service and earns $40,000 per year. To calculate how much Cedars-Sinai contributes to Maria’s DC Plan account each quarter:

• Use the contribution rate that corresponds to her years of eligible service in the chart on the previous page (9 years of eligible service = 4%)

• Use Maria’s quarterly pay ($10,000)

• Multiply Maria’s quarterly pay times her contribution rate

YEAR 1

Quarter 1 $10,000 x 4% = $400

Quarter 2 $10,000 x 4% = $400

Quarter 3 $10,000 x 4% = $400

Quarter 4 $10,000 x 4% = $400

Annually $40,000 x 4% = $1,600

The next Jan. 1 (Quarter 1), Maria’s pay changes to $41,600 per year ($10,400 per quarter), and the next July 1 (Quarter 3) her 10th anniversary at Cedars-Sinai passes. Starting July 1 multiply her quarterly pay by the contribution rate for an employee with 10 years of eligible service (5.5%):

YEAR 2

Quarter 1 $10,400 x 4% = $416

Quarter 2 $10,400 x 4% = $416

Quarter 3 $10,400 x 5.5% = $572

Quarter 4 $10,400 x 5.5% = $572

Annually $41,600 x 5.5% = $1,976

Forfeiture Contributions

If you leave Cedars-Sinai before being 100% vested in your DC Plan benefit, you forfeit the unvested portion of your account balance and that money stays in the plan. At the end of each year, the forfeitures are reallocated to the accounts of DC Plan participants employed at Cedars-Sinai as of Dec. 31; participants who retire, become disabled or die during the year are not eligible for forfeiture contributions.

Discretionary Contributions

Cedars-Sinai can make discretionary contributions to the DC Plan for employees of certain divisions, facilities or operating units. If Cedars-Sinai makes a discretionary contribution, it is applied the same way as the quarterly basic contribution.

Rollover Contributions

A rollover account is made up of any rollover contributions and earnings (or losses) on that money.

Moving money from a previous employer’s tax-favored retirement plan to another tax-favored plan or account is called a “rollover.” If you are eligible to receive a lump-sum distribution from a previous employer, you can roll over that money to the DC Plan, and continue to defer taxes on that account.

The DC Plan will accept rollovers from the following types of plans: 401(a) retirement plans, individual retirement arrangements (IRAs) subject to certain requirements, individual retirement annuities and annuity plans.

You can roll over your money as soon as you are hired; you don’t have to wait until you enroll in the DC Plan. If you are interested, you can get more information and a Rollover Form from Wells Fargo, the plan trustee.

Phone: 800-728-3123

Web: WellsFargo.com/RetirementPlan

Previous Types of Contributions

These contributions are no longer made to DC Plan accounts. Long-service employees may see the following types of contributions on their statements:

• Matching Account Contributions – Matching contributions are now made to 403(b) Plan accounts. See the 403(b) Plan summary for more information about matching contributions. Before Jan. 1, 2003, Cedars-Sinai made matching contributions to the DC Plan (shown on statements in the match account contribution). If you left Cedars-Sinai before Jan. 1, 2002, your match account was subject to vesting according to the vesting schedule in place when you left. If employed at Cedars-Sinai between Jan. 1, 2002 and Jan. 1, 2003, your DC Plan matching contribution account is 100% vested.

• Supplemental Contributions – Between 2003 and 2008, Cedars-Sinai made supplemental contributions to the DC Plan for some long-service employees.



Limits on Employer Contributions

The IRS limits the amount of money an employer can contribute to your account each year. The annual limit is the lesser of $49,000 (during 2011 and $50,000 in 2012) or 100% of your pay for that year. The limit is indexed for inflation and could increase in the future.

In addition, the IRS limits the amount of pay that can be used to calculate tax-favored retirement plan contributions. For 2011, any pay over $245,000 ($250,000 in 2012) is not included. The limit is indexed for inflation and could change in the future.

Benefit Statements

You receive a benefit statement for each quarter you are a DC Plan participant. Contributions are made in the quarter after the quarter in which they are earned. For example, if you are a DC Plan participant on the last day of the first quarter (March 31), the contribution is made to your account by June 30. Usually statements are processed the following quarter. Consequently, statements are usually sent 4 to 5 months after the quarter ends.

You can print a copy of several prior statements whenever you want from the Wells Fargo website or call their automated voice response system to order a previous statement at 800-728-3123.

DC Plan Account Investment Management

Your account balance may increase or decrease depending on investment performance.

You do not direct the investment of your DC Plan account. Cedars-Sinai makes DC Plan contributions to a trust fund. As required by the DC Plan investment policy, the plan invests DC Plan trust fund assets in a mix of stocks, bonds and cash.

DC Plan accounts are valued, every business day that the trustee (Wells Fargo) and New York Stock Exchange are open for business, by determining the fair market value of each unit/share making up the trust fund. The value of each unit/share is calculated by dividing the value of total net assets in the trust fund by the total number of units/shares for all participants that day. Your account is adjusted based on the total units/shares in your account that day.

VESTING Just because you’re eligible and participating in the plan doesn’t necessarily mean you’ll receive a benefit – you also must be vested. Vesting is the process of gaining ownership of the benefit over time. If you leave Cedars-Sinai before you’re 100% vested, you can take only the vested portion of the account with you.

You become vested in Cedars-Sinai’s contributions (and investment earnings on that money) according to the following schedule. (Each year you have 1,000 or more paid hours, you earn 1 year of eligible service.)

DC PLAN VESTING SCHEDULE


PERCENT VESTED

Less than 2 0%

2 25%

3 50%

4 75%

5 or more 100%

You also automatically become 100% vested in your DC Plan account if you’re still working for Cedars-Sinai at age 65, or if your Cedars-Sinai employment ends because you die or you become disabled.

You can see the vesting status of your account on your quarterly statement (from Wells Fargo) or online at WellsFargo.com/RetirementPlan.

Disabled means you are not able to engage in any substantial gainful activity due to physical or mental impairment, the disability is expected to be long-term and last indefinitely or result in death, and you qualify for benefits under the Cedars-Sinai Long Term Disability Insurance plan.




BREAKS IN SERVICE A break in service is important if you leave Cedars-Sinai employment and return, but were not 100% vested when you left. The break in service rules determine whether your previous service is counted when calculating your quarterly basic contributions and vesting.

• If you were 0% vested when your Cedars-Sinai employment ended, and you have 5 (or more) consecutive 1-year breaks in service, the eligible service you earned is permanently lost. If you are rehired by Cedars-Sinai, you do not receive credit for your previous eligible service for vesting or determining your DC Plan contribution rate. Any unvested contributions that were forfeited when you left are lost.

• If you were 0% vested when your Cedars-Sinai employment ended, but you have fewer than 5 consecutive 1-year breaks in service, the eligible service you earned during your previous employment counts for vesting and determining your DC Plan contribution rate. Your unvested employer contributions are restored upon re-employment.

• If you were partially vested (25% - 75%) when your Cedars-Sinai employment ended and you had any number of consecutive 1-year breaks in service, the eligible service you earned during your previous employment counts toward vesting and determining your DC Plan contribution rate. Furthermore, the unvested contributions you forfeited when you left are restored as long as your vested account balance wasn’t fully distributed to you or rolled over. If it was, you can have the unvested portion restored if you repay it within 5 years of the date your break in service started; otherwise, the unvested portion of your benefit is not restored.

• If you were 100% vested when your Cedars-Sinai employment ended, you continue to be 100% vested in all employer contributions made after you are rehired, and your previous years of eligible service are used in determining your DC Plan contribution rate.

BREAK IN SERVICE SUMMARY TABLE

If you left C-S with this percentage vested and had this many consecutive

1-year breaks in service

Are years of eligible service from C-S previous employment counted?

(for vesting and determining DC Plan contribution percentage rate)

What happens to the unvested contributions that were forfeited

when you left?

0% vested 5 (or more) consecutive 1-year breaks in service

No Lost

0% vested Fewer than 5 consecutive 1-year breaks in service

Yes Restored

25% to 75% vested Any number of consecutive

1-year breaks in service Yes

Restored – If account not fully distributed or rolled over

Lost – If account fully distributed or rolled over; unvested contributions restored only if distribution repaid

within 5 years of the date the break in service started

100% vested Any number of consecutive

1-year breaks in service Yes N/A


WHEN YOU TAKE YOUR DC PLAN ACCOUNT You can receive your vested account balance:

• After leaving Cedars-Sinai employment – You may have your DC Plan vested account balance paid out (called a distribution) when your employment with all Cedars-Sinai employers ends, including when your employment ends because of disability or death. If you die, your DC Plan account is paid to your beneficiary.

• Working at Cedars-Sinai and reaching age 65 – If you continue working at Cedars-Sinai when you reach 65, you may withdraw all or some of your DC Plan account balance.

The DC Plan does not allow hardship withdrawals or loans.

YOUR DC PLAN BENEFIT UPON LEAVING CEDARS-SINAI Your eligibility for DC Plan contributions ends on your last day of employment. You must be employed on the last day of the quarter to receive a DC Plan contribution for the quarter – unless you retire, die or become disabled (in which case you do receive that last quarterly contribution). If you are less than 100% vested in your DC Plan account, you forfeit the part of the account that is not vested, unless you are 65 or older, die or leave Cedars-Sinai because you become disabled (in which case your account becomes 100% vested).

DC Plan Benefits Are Portable

Your DC Plan benefit is portable – you can take it with you when you leave Cedars-Sinai. About a month after your employment ends, Wells Fargo sends a distribution packet to your last address on record:

• If your vested account balance is more than $1,000, you can leave your account balance in the DC Plan and continue receiving investment earnings (or losses) and quarterly statements. Your money stays in the DC Plan until you decide to apply to have it paid out to you, but no later than the maximum distribution age:

− If you leave before age 65, you must take your money by age 65

− If you leave after age 65, you must take it by age 70½.

• If your vested account balance is $1,000 or less, you cannot leave the money in the DC Plan. You can request a rollover or distribution, but if you don’t do anything by the deadline in the distribution packet, Wells Fargo will send you a check equal to your total vested account balance (on the payout date), less 20% withholding for federal income tax.

Keeping Tabs on Your Benefit

If you leave your vested account balance in the DC Plan, be sure to keep your current address on file with Cedars-Sinai and Wells Fargo so you can continue to receive quarterly statements. When you’re ready to have your DC Plan account distributed to you, contact Wells Fargo.

APPLYING FOR BENEFITS

Where to Apply

Contact Well Fargo

Phone: 800-728-3123

Web: WellsFargo.com/RetirementPlan

You may be able to do a paperless distribution or you can request a distribution packet. If requesting a packet, return the forms to Wells Fargo. When Wells Fargo processes your distribution, if you are under age 65 they verify your Cedars-Sinai employment has ended before transferring or paying out your account balance.

Your Distribution Options

All benefits from the DC Plan are paid as a single lump sum, valued as of the date of distribution, which you can have:

• Rolled over to your Cedars-Sinai 403(b) Plan account or to an Individual Retirement Arrangement (IRA)

• Rolled over to your new employer’s retirement plan (if permitted by your new employer)

• Paid directly to you, less 20% withholding for federal income tax; if you are under age 59½, in most cases you will owe income taxes and a 10% early withdrawal penalty tax on this money.



Rollovers

By rolling over your account balance (that is, transferring it directly from this plan to another tax-deferred retirement plan or IRA*), you can continue to save for retirement and defer taxes on this money. For more information, see Taxes on Benefits, page 23.

* Unless you roll over to a Roth IRA, in which case the rollover amount is taxable income the year of the rollover.

SURVIVOR BENEFITS IF YOU DIE BEFORE YOUR ACCOUNT IS DISTRIBUTED If you die as an active employee or before your DC Plan account is distributed to you, it is payable to the beneficiary you have on file with the Cedars-Sinai HR/Employee Benefits Department.

Payment Options

All benefits from the DC Plan are paid as a single lump sum, valued as of the date of distribution. A beneficiary who is your (opposite-sex) spouse may have your account balance:

• Rolled over to a IRA or qualified retirement plan that will accept it, such as an employer’s retirement plan

• Paid directly, subject to ordinary income taxes.

Any other beneficiary (who is not your opposite-sex spouse) may have your account balance:

• Rolled over by a direct trustee-to-trustee transfer to an inherited IRA (an inherited IRA is established specifically for non-spouse beneficiary rollovers). A non-spouse beneficiary may not roll over a lump-sum death benefit that has been paid directly to the individual or to another type of IRA or retirement plan.

• Paid directly, subject to ordinary income taxes. Effective Jan. 1, 2010, distributions to a non-spouse beneficiary paid in a lump sum are subject to a mandatory federal 20% withholding requirement.

When the Benefit Will Be Paid

If you designated a specific date for a benefit to be paid to your beneficiary, payment will be made as soon as possible after that date; otherwise, it will be paid as soon as possible after your beneficiary requests a payment. Your beneficiary may defer payment and leave the money in your account, but no longer than described below.

Your (opposite-sex) spouse who is your beneficiary may leave your account balance in the DC Plan until whichever is later:

• Dec. 31 of the year of your death

• Dec. 31 of the year you would have been age 70½.

Your beneficiary who is not your (opposite-sex) spouse may leave your account balance in the DC Plan until Dec. 31 of the 5th anniversary of your death.

When No Beneficiary Is Designated

If you do not have a valid DC Plan beneficiary form on file with the Cedars-Sinai HR/Employee Benefits Department when you die (or if the person(s) you named are no longer living), your DC Plan account is paid in the following order:

• Your (opposite-sex) spouse

• Your estate. The trustee will need to know the name of the estate, the estate tax ID number and the name and address of the estate administrator. Then the trustee can transfer the money to the estate account and contact the estate administrator with distribution options and instructions.

You can update your beneficiary(ies) anytime.* Call the MBC Service Center or Wells Fargo for a new Beneficiary Designation form. Return the completed form to the Cedars-Sinai HR/Employee Benefits Department.

* Your (opposite-sex) spouse has a legally-protected right to be your retirement plan beneficiary. Your spouse must consent to your designation of another person by signing the waiver on the beneficiary form, with the signature witnessed by a notary.

D B P L A N A N D D C P L A N S U M M A R Y P L A N D E S C R I P T I O N Benefit Claims and Appeals 07/01/12 Page 21

BENEFIT CLAIMS AND APPEALS

BENEFIT APPLICATION AND APPEAL PROCEDURES To apply for benefits, you must contact the administrator, as listed in the table below, using the form or procedure they provide. See DB Plan or DC Plan portions of this summary for details about when benefits will be paid, how they will be paid, etc.

TO APPLY FOR… CONTACT…

DB Plan Benefits

CSHS DB Plan Retirement Service Center

Phone: Web: Address:

866-296-5034 Cedars-SinaiHealthSystem.MercerHRS.com PO Box 517036 Dallas, TX 75251

DC Plan Benefits

Wells Fargo Retirement Plan Services

Phone: Web: Address:

800-728-3123 WellsFargo.com/RetirementPlan 2700 Snelling Ave. North, Suite 300 Roseville, MN 55113

In most situations, benefit payment is a straightforward administrative process. Cedars-Sinai (as plan administrator) has delegated responsibility for approving or denying (initial) benefit applications to the administrators listed above.

If you apply for benefits and are notified that you’re not eligible, or if you are paid, but you believe the payment is incorrect, that is considered a denied benefit. If your benefit is denied in whole or in part, the administrator must explain the reason in writing. You can appeal the decision by following the procedures in this section.

Timeframe for Initial Decision

When you apply for benefits, the administrator must process your application or deny your request for benefits within the following maximum timeframes (it usually doesn’t take that long). If an issue is holding up your application, the timeframe may be extended, as follows:

Reason for Applying Disability – You’re eligible to receive benefits under Cedars-Sinai’s Long Term Disability Insurance Plan and your employment has ended

Any other reason – If you’re applying for benefits for all other reasons

DB Plan 45 days (+ 30-day extension, if necessary) 90 days (+ 90-day extension, if necessary)

DC Plan 45 days (+ 30-day extension, if necessary) 60 days

If extra time is necessary, you will be notified of the reason and the date you can expect a decision. You’ll receive this notice within the first 45-, 60- or 90-day period, whichever the case may be.



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If your application for benefits is denied in whole or in part, the denial notice will include:

• Specific reason(s) for the denial and references to plan provisions on which it is based

• A description of any additional materials or information necessary for you to complete your application and an explanation of why the materials or information is necessary

• A statement that you will be provided, upon request, reasonable access to and free-of-charge copies of all documents, records and other information relevant to your claim

• An explanation of the steps you must take should you disagree with the denial and wish to have your benefit application reviewed again (including the time limits for filing an appeal) and a statement of your right to bring an action under the Employee Retirement Income Security Act of 1974 (ERISA) Section 502(a).

How to File an Appeal Decision on Appeal

If you do not agree with the administrator’s decision about your plan benefit, you may request that the plan administrator review your application. Send your request to:

Plan Administrator c/o HR/Employee Benefits Department Cedars-Sinai Medical Center 8700 Beverly Blvd. 50N Suite 350 Los Angeles, CA 90048

After you receive the written notice of benefit denial, you have the following maximum timeframes to send your written request for review by the Retirement Plan Committee:

DB Plan: 60 days

DC Plan: 1 year

Your written request for review must include:

• A request for the plan administrator to review your application for benefits

• A summary of all the reasons you believe the benefits should be paid, including any documents, records or other information relevant to your claim

• Any issues or comments that you think are pertinent to your claims.

The plan administrator will review your application fairly and fully, and will decide on your claim within 60 days (45 days if your claim is disability related). If the plan administrator needs additional time to decide, it will notify you about the reasons it needs the extension and the date it expects to make a decision. It will be no longer than an additional 60 days (or 45 days for a disability-related claim).

If the plan administrator denies your claim, it will send you a written notice stating:

• Specific reason(s) for the denial and references to plan provisions on which it is based

• A statement that you will be provided, upon request, reasonable access to and free-of-charge copies of all documents, records and other information relevant to your claim

• A statement regarding your rights to bring an action under ERISA Section 502(a).

The following additional rules apply to a disability claim appeal:

• The review will not give any deference to the initial claim decision. It will be conducted by a plan fiduciary who did not decide the initial claim and who is not a subordinate of the person who decided the initial claim

• If the initial claim denial was based in whole or in part on a medical judgment, the plan administrator will consult a healthcare professional with appropriate training and experience. The healthcare professional must be someone who was not consulted in connection with the initial claim decision, and who is not a subordinate of any healthcare professional who was consulted on the initial claim

• You will be notified of any medical or vocational experts who were consulted in connection with the initial claim decision.

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The decision on a disability claim will also include this information:

• If an internal rule, guideline, protocol or other similar criterion was relied on in deciding the claim, the notice will either provide the criterion or state that you may obtain a copy of the criterion free of charge on request

• If the denial was based on a medical necessity, experimental treatment or similar exclusion, the notice will either explain the scientific or clinical judgment or inform you that such an explanation will be provided free of charge on request

• A statement regarding voluntary alternative dispute resolution options.

Any further review, judicial or otherwise, will be based on the record before the plan administrator and will be limited to whether the plan administrator acted arbitrarily or capriciously in the exercise of its discretion.

Time Limits on Legal Actions Against the Plans

You or your beneficiary may not take legal action against any of the plans more than 1 year after you receive the review decision by the plan administrator.

The plan administrator has full discretionary power and authority to interpret the plan documents and rules, to determine questions of eligibility, vesting and entitlements and to make findings of fact about all claims for benefits. To the extent permitted by law, the decision of the plan administrator will be final and binding on all parties, except to the extent that a court of competent jurisdiction finds an abuse of discretion.

TAXES ON BENEFITS

In most situations, money in a DB Plan or a DC Plan is exempt from taxation – until you take the money from the plan(s). When you receive payment from the DB Plan or the DC Plan, the payment is taxable at your normal federal income (and state) tax rate. In addition, if you are under age 59½ and receive a distribution, you may owe an additional 10% early withdrawal penalty tax.

This section highlights only the main points about federal taxes on plan payments or distributions in effect when this summary was published. When you apply for your benefit, you’ll receive a special Tax Notice Regarding Plan Payments with more information.

Remember that state income tax laws are not the same as federal income tax laws, so you should check the tax laws of your state. Cedars-Sinai (and its employees) cannot give you income tax advice. You should obtain professional tax advice before arranging to receive a plan payment.

Lump-Sum Distributions and Mandatory Withholding

When you receive a lump-sum distribution, federal law requires the plan to withhold 20% of the distribution and submit it to the IRS, to cover your federal income tax liability. The 20% deducted from your payment is only withholding – the tax you actually owe could be either greater than or less than the 20% withheld. If you live in a state that has an income tax, the plan may withhold an additional amount to cover the state income tax.

This 20% federal withholding is mandatory, unless you transfer your payment (called a rollover) to another eligible retirement plan that accepts rollovers, including:

• Another employer-sponsored qualified plan

• IRA

• 403(b) plan

• Government 457(b) plan, or

• Roth IRA.

Non-spouse beneficiaries may roll over a distribution only to an inherited IRA.

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Rollovers

By rolling over your payment, you can continue to defer income taxes*, avoid paying the 10% early withdrawal penalty tax and keep saving and investing for retirement. There are generally 2 ways to roll over your benefit:

• Direct Rollover – You may directly roll over all or any portion of your distribution that is an eligible rollover distribution (generally a distribution that’s not a periodic payment or a required distribution from the plan). In a direct rollover, the eligible rollover distribution is paid directly from the plan to an IRA or to another employer’s qualified plan that accepts rollovers. If you choose a direct rollover, you are not taxed* on the distribution until you withdraw it from the IRA or the employer plan.

• 60-Day Rollover – If you have an eligible rollover distribution paid directly to you, you can still decide to roll over all or a portion of it to an IRA or to another employer’s qualified plan that accepts rollovers, but you must make the rollover within 60 days after you receive the distribution. The portion of your distribution that is rolled over will not be taxed until you withdraw it from the IRA or the employer plan.

You can roll over up to 100% of an eligible rollover distribution, including an amount equal to the 20% withholding discussed below. If you choose to roll over 100%, you must use money from another source to replace the 20% that was withheld from your eligible rollover distribution.

* If you roll over your distribution to a Roth IRA, the rollover amount is taxable income the year of the rollover.

Other Types of Distributions

If you receive another type of distribution (such as an annuity, installment payment or minimum distribution payment) you will receive the option of whether to have estimated federal (and state) taxes withheld.

10% Additional Early Withdrawal Penalty Tax

Your benefit payment will be subject to an additional 10% tax unless 1 or more of the following situations applies to your distribution:

• You roll over your account balance, as described above

• You are 59½ or older at the time of the payout

• You retire and leave Cedars-Sinai on or after your 55th birthday

• Your benefit is paid in substantially equal periodic payments over your lifetime, beginning after you leave Cedars-Sinai

• You left Cedars-Sinai because of your disability

• It’s paid to your beneficiary because of your death

• It was used to pay for deductible medical expenses (medical expenses are generally deductible if they exceed 7.5% of your adjusted gross income)

• The distribution is made to an alternate payee under a QDRO (Qualified Domestic Relations Order) related to a divorce settlement

• It was paid directly to the government for an IRS levy.

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LEGAL AND ERISA INFORMATION Under the Employee Retirement Income Security Act of 1974, as amended (ERISA), you are entitled to certain information about your benefits. This section includes:

• A summary of your rights under ERISA

• Other information required by ERISA

• Additional legal information that affects your benefits and your rights to benefits.

ADMINISTRATIVE INFORMATION

PLAN NAME TYPE OF PLAN TRUSTEE PLAN YEAR PLAN ID NUMBER

Cedars-Sinai Health System Defined Benefit Retirement Plan (DB Plan)

Effective date: 7/1/1957

Defined Benefit Retirement Plan

U.S. Bank. 530 B Street, Suite 222 San Diego, CA 92101

1/1 to 12/31 001

Cedars-Sinai Health System Defined Contribution Retirement Plan (DC Plan)

Effective date: 1/1/2000

Defined Contribution Retirement Plan

Wells Fargo Retirement Plan Services 2700 Snelling Ave North, Suite 300 Roseville, MN 55113

1/1 to12/31 002

PLAN SPONSOR The plans are sponsored by:

Cedars-Sinai Medical Center 8700 Beverly Blvd. Los Angeles, CA 90048 310-423-5306

Cedars-Sinai Medical Center files required plan information with the Internal Revenue Service and the Department of Labor. If you write to either agency, specify the Employer Identification Number and Plan Identification Number:

• Employer Identification Number – 95-1644600

• Plan Identification Number – DB Plan (001) or DC Plan (002).

PARTICIPATING EMPLOYERS The following Cedars-Sinai-affiliated organization also sponsors or participates in these plans:

Cedars-Sinai Medical Care Foundation 200 N. Robertson Blvd., Suite 107 Beverly Hills, CA 90211

EFFECTIVE DATE This summary plan description is effective Jan. 1, 2011. If you were employed before Jan. 1, 2011, the summary plan description in effect at the time your employment ended describes your benefits. Minor updates were made to this SPD on July 1, 2012 to reflect address changes, style, etc.; none of the changes affect plan benefits.

NAMED FIDUCIARIES Cedars-Sinai Medical Center is the named fiduciary of all Cedars-Sinai Health System benefit plans, with the authority to control and manage plan operation and administration.

The Cedars-Sinai’s HR/Employee Benefits Department handles administrative tasks on a day-to-day basis with the assistance of the CSHS DB Plan Retirement Service Center (DB Plan), Wells Fargo (DC Plan) and the MBC Service Center (general benefit questions). No employee in these departments or organizations is a fiduciary with regard to the plan.


PLAN ADMINISTRATOR Cedars-Sinai Medical Center (also referred to as Cedars-Sinai in this section) is the plan administrator of all Cedars-Sinai Health System benefit plans within the meaning of ERISA Section 3(16)(A). You may contact the plan administrator at this address:

Plan Administrator c/o HR/Employee Benefits Department Cedars-Sinai Medical Center 8700 Beverly Blvd., 50N Suite 350 Los Angeles, CA 90048

310-423-5306

Legal process may be served on the plan administrator.

AGENT FOR LEGAL SERVICE If you wish to take legal action against the plans, you may have legal process served on:

Cedars-Sinai Medical Center Attention: HR/Employee Benefits Department Cedars-Sinai Medical Center 8700 Beverly Blvd., 50N Suite 350 Los Angeles, CA 90048

HOW THE PLANS ARE ADMINISTERED Cedars-Sinai has the exclusive authority to control and manage plan operation and administration. Cedars-Sinai may designate others to carry out any duty or power that would otherwise be a responsibility of Cedars-Sinai under the plans. Cedars-Sinai may retain actuaries, accountants, consultants, third-party administration service providers, legal counsel or other specialists, as it may deem appropriate and necessary for administration. Cedars-Sinai also has such further authority to allocate or delegate its responsibilities.

Cedars-Sinai has the exclusive power, right and authority, in its discretion, to:

• Determine whether you are eligible to be covered in any Cedars-Sinai-sponsored plan or determine if you or your beneficiary is eligible for a benefit

• Interpret the plans and any other writings that affect the establishment or operation of these plans, both as to legal importance and as to the application of the provisions of any such documents to the facts of a particular claim for benefits

• Decide all matters arising under each plan, including the right to remedy possible ambiguities, inconsistencies or omissions

• Make factual findings and decide conclusively all questions regarding any claim for benefits under the plans.

All determinations by Cedars-Sinai with respect to any matter relating to these plans and benefit programs are conclusive and binding on all persons.

DISCRETIONARY AUTHORITY In exercising discretionary powers under these plans, Cedars-Sinai, the plan administrator, and any designees (which include any administrator, recordkeeper or trustee as claims fiduciary) have the broadest discretion permissible under ERISA and any other applicable laws to interpret unclear statements, and their decisions constitute final review of your claim. Benefits under these plans are paid only if the plan administrator decides, in its discretion, that you are entitled to benefits or claims payment.


AMENDMENT AND TERMINATION OF THE PLANS Cedars-Sinai has the exclusive power, right and authority, in its discretion, to amend and/or terminate the DB Plan or the DC Plan in any and all respects at any time for any reason.

DISTRIBUTION OF ASSETS UPON PLAN TERMINATION If the DB Plan and/or the DC Plan is terminated or partially terminated, all affected plan participants become fully vested as of the termination date, regardless of their length of service at plan termination. DC Plan accounts would be paid out. DB Plan assets would be allocated for plan administration and participant benefits. Arrangements for DB Plan benefits would be made through continuation of the Trust, purchase of life annuities payable to each participant, lump-sum payments to participants, or a combination of methods.

PLAN FUNDING AND TRUSTEE

DB Plan

Cedars-Sinai Health System employers currently pay the entire cost of the DB Plan but reserve the right to change the funding in the future. All contributions to the DB Plan are held in the Cedars-Sinai Medical Center Trust with U.S. Bank as the trustee. The funds received by the trustee are used exclusively for the benefit of you and your beneficiaries and are invested according to the DB Plan investment policy. The trustee is responsible for account payments and is required, by law, to act in good faith for the best interest of you and your beneficiaries.

DC Plan

Cedars-Sinai Health System employers currently pay the entire cost of the DC Plan, but reserve the right to change funding in the future. All contributions to the DC Plan are held in the Cedars-Sinai Medical Center Trust with Wells Fargo as the trustee. The funds received by the trustee are used exclusively for the benefit of you and your beneficiaries and are invested according to the DC Plan investment policy. The trustee is responsible for benefit payments and is required, by law, to act in good faith for the best interest of you and your beneficiaries.

FINANCIAL RECORDS OF THE PLANS Cedars-Sinai Medical Center keeps financial records for the year on a plan year basis, Jan. 1 to Dec. 31, for the DB Plan and the DC Plan. The financial records are kept in the Cedars-Sinai HR/Employee Benefits Department.

LOSS OR REDUCTION OF BENEFITS These situations could cause your benefit to be lost or reduced:

• If pay or contributions exceed IRS limits, Cedars-Sinai’s contributions may be limited.

• If your Cedars-Sinai employment ends before you are 100% vested in the DB Plan or the DC Plan, you forfeit the nonvested portion.

• Under the DC Plan, your accounts share in the investment gains and losses of money in the trust fund.

• The IRS limits benefits that can be paid out of the DB Plan. For more information about these limits, contact the Cedars-Sinai HR/Employee Benefits Department.

• If you are the subject of a Qualified Domestic Relations Order (QDRO), all or a portion of your benefit from any of the retirement plans could be assigned to another, as described under Assignment of Benefits and QDROs below.

• The DC Plan and DB Plan are tax-qualified benefits, meaning that by observing certain rules, Cedars-Sinai and participants receive tax savings and tax deferral. Should the plans lose their tax-qualified status, you, in turn, could lose some or all of the tax-deferred benefits.

ASSIGNMENT OF BENEFITS AND QDROS Generally, your retirement plan benefits cannot be assigned to another. They cannot be sold or used as collateral for a loan and, in most cases, your creditors cannot attach, garnish or otherwise interfere with your benefits under the plans.

However, the retirement plans may be legally required to recognize obligations you are liable for as a result of a Qualified Domestic Relations Order (QDRO) and some or all of your benefit could be assigned to another person, such as a former spouse or a dependent. The plan administrator will determine the validity of any QDRO it receives.

Contact Cedars-Sinai’s HR/Employee Benefits Department at 310-423-5306 for a free copy of the QDRO procedures.


MILITARY LEAVE RIGHTS Federal law gives you certain rights if you leave Cedars-Sinai to serve in any of the United States uniformed services, for active duty or training. To qualify for these rights, you must give Cedars-Sinai advance written or verbal notice of your upcoming leave for military service and you must report back to work within a specified time following the end of your military service, depending upon the length of your military service. If you satisfy USERRA requirements, when you return to Cedars-Sinai employment you may be able to receive DC Plan contributions and/or DB Plan accruals from Cedars-Sinai for that period.

When you return to Cedars-Sinai employment, your benefits will be reinstated as though you were never gone. Generally, a maximum of 5 years of military service will receive this treatment, unless service is extended due to a national emergency.

Effective on or after Jan. 1, 2007, if you die or become disabled while performing qualified military service, your beneficiary will be entitled to the same benefits under the DC Plan or DB Plan (as applicable) that they would have been entitled to had you returned to employment within the period required by law and then died or become disabled.

Effective on or after Jan. 1, 2009, any differential military wage payments received from a Cedars-Sinai employer will be treated as pay for the purposes of employer contributions (DC Plan) or calculation of pay for benefit accrual (DB Plan). Contact your Human Resources Representative if you need more information about USERRA.

TOP HEAVY PROVISIONS Federal regulations ensure that contributions made to (and benefits paid from) the DB Plan or DC Plan do not favor a select group of employees, known as “key employees.” If more than 60% of a plan’s benefits are to be paid to key employees, the plan is considered “top heavy.” Although it is not expected that the plans will ever be top heavy, if they do become top heavy, your vesting in the DC Plan or the DB Plan may be accelerated and you may be entitled to certain minimum benefits.

MERGERS, CONSOLIDATIONS OR TRANSFERS If the retirement plans are ever merged or consolidated or plan assets are ever transferred to another plan, your benefits are protected. Your benefits under the new plan, if that plan were to terminate immediately after the change, would be at least as much as the amount you would be entitled to receive if the old plan had terminated immediately before the merger, consolidation or transfer.


PENSION BENEFIT GUARANTY CORPORATION

A federal agency called the Pension Benefit Guaranty Corporation (PBGC) insures defined benefit retirement plans. That means if the DB Plan ends without enough money to pay all benefits, the PBGC will step in to pay DB Plan benefits (up to certain limits). Defined contribution plans are not insured by the PBGC. Unlike DB Plan benefits, DC Plan benefits are not dependent on future payments from Cedars-Sinai. You receive DC Plan contributions up front; the money is then put in the trust fund. In the very unlikely event that Cedars-Sinai goes bankrupt, DC Plan participants would still have access to their DC Plan accounts.

Most people receive all of the pension benefits they would have received under their DB Plan, but some people may lose certain benefits.

The PBGC guarantee generally covers:

• Normal and early retirement benefits

• Disability benefits if disability occurs before the plan terminates

• Certain benefits for survivors.

The PBGC guarantee generally does not cover:

• Benefits greater than the maximum guaranteed amount set by law for the year in which the DB Plan terminates

• Some or all benefit increases and new benefits based on DB Plan provisions that have been in place for fewer than 5 years at the time the plan terminates

• Benefits that are not vested because you have not worked long enough for the organization

• Benefits for which you have not met all requirements at the time the DB Plan terminates

• Certain early retirement payments (such as supplemental benefits that stop when you become eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the plan’s normal retirement age.

Even if some of your pension benefits are not guaranteed, you still may receive some of those benefits from the PBGC depending on how much money your plan has and how much the PBGC collects from employers.

For more information about the PBGC and the benefits it guarantees, ask your plan administrator or contact:

PBGC Technical Assistance Division 1200 K St. NW, Suite 930 Washington, DC 20005

Phone: 800-400-7242 202-326-4000

TTY/TDD users: 800-877-8339 (ask to be connected to 800-400-7242)

Web: pbgc.gov.

http://www.pbgc.gov/


YOUR ERISA RIGHTS

As a participant, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974. ERISA provides that all plan participants are 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 US 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, and 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.

• Obtain a statement telling you whether you have a right to receive a pension at normal retirement age and if so, what your benefits would be at normal retirement age if you stop working under the DB Plan now. (The DC Plan does not have a normal retirement age. You are eligible to receive your vested account balance when you leave Cedars-Sinai employment.) If you do not have a right to a pension, the statement will tell you how many more years you have to work to get a right to a benefit (become vested). 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 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 benefit is denied or ignored, in whole or in part, you have a 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 suit in a state or federal court after exhausting the plans’ claims and appeal procedures. 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 US 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 it finds your claim is frivolous.


Assistance With Your Questions

If you have any questions about your retirement benefits, ask the appropriate person or organization listed under Benefit Resources at the beginning of this document.

If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from Cedars-Sinai, contact the nearest office of the Employee Benefits Security Administration, US Department of Labor, listed in your telephone directory or:

Division of Technical Assistance and Inquiries Employee Benefits Security Administration Department of Labor 200 Constitution Ave. NW Washington, DC 20210

If you are in Los Angeles, the regional office is:

Employee Benefits Security Administration Los Angeles Regional Office 1055 East Colorado Blvd., Suite 200 Pasadena, CA 91106 Phone: 626-229-1000 Fax: 626-229-1098

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 866-444-EBSA (3272).

This Summary Plan Description summarizes your retirement benefits under the DB Plan and DC Plan. The official plan documents provide more complete details of the Cedars-Sinai retirement plans. If there is any conflict between the statements in this booklet and the plan documents, the terms of the plan documents will govern all rights and obligations of participants, beneficiaries, plan fiduciaries and the organization. The plan administrator has sole discretion to interpret and apply the terms and conditions of the plans described in this booklet. These interpretations and decisions on all matters arising under the plans are final and binding on all parties. Cedars-Sinai reserves the right to amend (or even terminate) these benefits, for any reason, at any time, without prior consent by employees, former employees, their dependents or beneficiaries. Neither this booklet nor any of the organization’s policies or benefit programs should be considered a contract for purposes of employment or payment of compensation or benefits.

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