reading health system pension plan summary plan …
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READING HEALTH SYSTEM PENSION PLAN
SUMMARY PLAN DESCRIPTION
Effective October 1, 2017
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READING HEALTH SYSTEM PENSION PLAN SUMMARY PLAN DESCRIPTION
TABLE OF CONTENTS
Topic Page
INTRODUCTION ........................................................................................................................................ 1 THE PLAN AT A GLANCE ......................................................................................................................... 2
What type of plan is this? .................................................................................................................................................. 2 Who is eligible to participate in the Plan? ......................................................................................................................... 2 Who pays for the Plan? ...................................................................................................................................................... 2 How are benefits determined? ........................................................................................................................................... 2 When do benefits vest? ...................................................................................................................................................... 2 What is the plan’s Normal Retirement Date? .................................................................................................................... 2 Can I retire early and still receive a pension? .................................................................................................................... 2 How are benefits paid? ...................................................................................................................................................... 2 What happens if I die before my pension begins? ............................................................................................................. 2
TERMS YOU SHOULD KNOW ................................................................................................................. 3 Active Participant .............................................................................................................................................................. 3 Administrator ..................................................................................................................................................................... 3 Annuity Starting Date ........................................................................................................................................................ 3 Average Monthly Compensation ....................................................................................................................................... 3 Benefit Accrual Service ..................................................................................................................................................... 3 Break in Service ................................................................................................................................................................. 4 Compensation .................................................................................................................................................................... 4 Hour of Service .................................................................................................................................................................. 4 Normal Retirement Age/Date ............................................................................................................................................ 4 Participant .......................................................................................................................................................................... 4 Plan Administrator ............................................................................................................................................................. 4 Plan Year ........................................................................................................................................................................... 4 Social Security Covered Compensation ............................................................................................................................. 4 Year of Service .................................................................................................................................................................. 5
ELIGIBILITY AND PARTICIPATION ........................................................................................................ 5 Eligibility ........................................................................................................................................................................... 5 Participation ....................................................................................................................................................................... 5 Breaks in Service ............................................................................................................................................................... 5 Reemployment After Becoming a Participant ................................................................................................................... 6 Termination of Participation .............................................................................................................................................. 6 Your Cost ........................................................................................................................................................................... 6
YEARS OF SERVICE FOR VESTING AND BENEFIT ACCRUAL ......................................................... 6 Years of Service for Vesting .............................................................................................................................................. 6 Benefit Accrual Service ..................................................................................................................................................... 6
SERVICE BREAKS AND LEAVES OF ABSENCE ................................................................................... 7 Break in Service ................................................................................................................................................................. 7 Leaving Employment After Becoming a Participant ......................................................................................................... 7 Qualified Military Leave ................................................................................................................................................... 8 Qualified Family and Medical Leave (FMLA) .................................................................................................................. 8
ELIGIBILITY FOR BENEFITS ................................................................................................................... 8 HOW YOUR BENEFIT IS CALCULATED ................................................................................................ 9
Normal Retirement Benefit ................................................................................................................................................ 9 Accrued Benefit ................................................................................................................................................................. 9 Early Retirement Benefit ................................................................................................................................................. 10 Deferred Vested Retirement Benefit ................................................................................................................................ 10 Late Retirement Benefit ................................................................................................................................................... 10
WHEN BENEFITS ARE PAID .................................................................................................................. 10 Normal Retirement Benefit .............................................................................................................................................. 10 Early Retirement Benefit ................................................................................................................................................. 10 Late Retirement Benefit ................................................................................................................................................... 10 Deferred Vested Retirement Benefit ................................................................................................................................ 11 Returning to Work After Retirement ............................................................................................................................... 11
HOW BENEFITS ARE PAID ..................................................................................................................... 11 Normal Forms of Payment ............................................................................................................................................... 11 Optional Forms of Payment ............................................................................................................................................. 12 Small Benefit Lump Sums ............................................................................................................................................... 12 Optional Lump Sum Cash-Outs ....................................................................................................................................... 13 Restrictions Based on Plan Funding ................................................................................................................................ 13
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DEATH BENEFITS .................................................................................................................................... 13 Death Before Retirement ................................................................................................................................................. 13 Death After Your Normal Retirement Date But Prior to Termination of Employment ................................................... 13 Death After Payments Begin ........................................................................................................................................... 13
TRANSFER TO AN AFFILIATE OF READING ...................................................................................... 14 Vested Active Participant Transfers ................................................................................................................................ 14 Non-Vested Active Participant Transfers (on or before December 31, 2008) ................................................................. 14 Non-Vested Active Participant Transfers (after December 31, 2008) ............................................................................. 14 Non-Active Participant Transfers .................................................................................................................................... 14
CLAIMS FOR PENSION BENEFITS ....................................................................................................... 14 Claim Forms .................................................................................................................................................................... 14 Appealing a Denied Claim ............................................................................................................................................... 15 ERISA RIGHTS STATEMENT ...................................................................................................................................... 15
OTHER IMPORTANT INFORMATION ................................................................................................... 16 Right to Amend or Terminate the Plan ............................................................................................................................ 16 Disposition of Assets Following Termination ................................................................................................................. 16 Loss or Reduction of Benefits.......................................................................................................................................... 17 Assignment of Benefits .................................................................................................................................................... 17 Federal Limitations .......................................................................................................................................................... 17 Top-Heavy Rules ............................................................................................................................................................. 17 Rollovers .......................................................................................................................................................................... 17 Pension Benefit Guaranty Corporation (PBGC) .............................................................................................................. 17
ADMINISTRATIVE INFORMATION ...................................................................................................... 18
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1
READING HEALTH SYSTEM PENSION PLAN
SUMMARY PLAN DESCRIPTION
INTRODUCTION
Tower Health, formerly Reading Health System (“Reading”), is pleased to provide this Summary Plan
Description (SPD) of the Reading Health System Pension Plan (the “Plan”). This SPD is a summary of the main
features of the Plan. It presents a summary only and doesn’t contain all of the details of every aspect of the Plan.
It is not an official plan document. The actual terms of the Plan are contained in the plan document, which is
available from the Plan Administrator. The official plan text and trust agreement govern the operation of the Plan
and payment of all benefits. In the event of any ambiguity in or omission from this SPD, or any conflict between
this SPD and the official plan text and trust agreement, the official plan text and trust agreement govern. Any
references to Reading herein include Tower Health, unless otherwise indicated.
The Plan was originally established on December 1, 1947, but it has been amended and restated several times
since then. The Plan is now frozen, which means that no employees can earn additional benefits under the Plan.
The Plan was frozen for all employees effective July 1, 2016, but it was frozen for new hires in 2013. You will
find more information about the Plan freeze inside.
This SPD describes the major provisions of the Plan in effect as of July 1, 2017.
Neither the plan documents nor this SPD constitute an implied or expressed contract of employment between you
and Reading.
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2
THE PLAN AT A GLANCE
Plan Provisions Highlights See Page
What type of plan is this? This is a “defined benefit pension plan.” Participants in a defined
benefit pension plan earn a monthly benefit, payable for life after
retirement, based on earnings and length of service. 9
Who is eligible to participate in
the Plan?
No employees can earn additional benefits under the Plan.
Participation in the Plan was closed to new hires in 2013. 5
Who pays for the Plan? Tower Health pays the cost of the Plan. 6
How are benefits determined? Your benefit at Normal Retirement Date is determined under one of
two formulas depending on whether you became a participant in the
Plan before July 1, 1977 or after June 30, 1977. Under each
formula, your benefit is determined by multiplying a percentage of
your Average Monthly Compensation by your Years of Benefit
Accrual Service. Compensation and service after June 30, 2016 do
not count toward your benefit under the Plan.
9
When do benefits vest? Vesting refers to ownership of your benefit. If you leave Reading
before you’re vested, you won’t be eligible for a benefit. You’re
vested after you complete five Years of Service with Reading. 6
What is the Plan’s Normal
Retirement Date?
Normal Retirement Date is the first day of the month that coincides
with or next follows your 65th birthday if you became a participant
before July 1, 2009. If you became a participant on or after July 1,
2009, your Normal Retirement Date is the first day of the month that
coincides with or next follows the later of your 65th birthday or the
5th anniversary of your commencement of participation in the Plan.
10
Can I retire early and still
receive a pension?
There are two ways you can retire early and receive a pension
benefit.
You can retire as early as age 55 if you have at least 15 Years of
Benefit Accrual Service; or
You can retire as early as age 62 if you have at least 10 Years of
Benefit Accrual Service.
10
How are benefits paid? When you retire, you may choose to receive your benefits in the
form of a monthly Life Annuity or, if you’re married, as a 100%
Joint and Survivor Annuity. Alternate forms of payment are also
available.
11
What happens if I die before my
pension begins?
If you’re vested and die before benefits begin, your surviving spouse
or (if you die in service after reaching Normal Retirement Age) your
beneficiary may be entitled to a death benefit. 13
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3
TERMS YOU SHOULD KNOW
There are several words and phrases that have a specific meaning when used to describe the Plan. Here is an
explanation of some of those terms to help you better understand your benefits.
Term Definition
Active Participant An Active Participant is an eligible employee of Reading or another participating employer
in the Plan. You became an Active Participant once you met the conditions for participating
in the Plan (see “Participation” on page 5). However, no participants can earn additional
benefits after the Plan was frozen.
Administrator A person, or more than one person, appointed by Tower Health to administer the Plan. This
person(s) is responsible for carrying out the provisions of the Plan and has the exclusive
authority to interpret and construe the Plan. The interpretation and construction by the
Administrator of any Plan provision and its exercise of any discretion granted under the Plan
is final and binding.
Annuity Starting Date The first day for which a benefit is paid to you from the Plan.
Average Monthly
Compensation
The average of your monthly Compensation during the 60 consecutive months before your
retirement or termination which produces the highest monthly average. If the length of your
employment is less than 60 months, your Average Monthly Compensation will be based on
all your months of employment. A Participant cannot earn additional Average Monthly
Compensation after June 30, 2016.
Average Monthly Compensation is one of the factors used to determine your benefit under
the Plan. If you are credited with less than 2,080 Hours of Service in a Plan Year, your
compensation for that year is annualized to compute Average Monthly Compensation (but
not for any other purpose).
Benefit Accrual
Service
Benefit Accrual Service is one of the factors used to determine your benefit under the Plan.
Actual Years of Benefit Accrual Service:
For each Plan Year during which you’re credited with 2,080 Hours of Service, you
receive one Year of Benefit Accrual Service.
For each Plan Year during which you’re credited with at least 1,000 but less than 2,080
Hours of Service, you receive a pro-rated Year of Benefit Accrual Service equal to your
Hours of Service divided by 2,080.
For the Plan Years which include your hire date or termination date, you receive a pro-
rated Year of Benefit Accrual Service even if you have less than 1,000 Hours of Service.
If you were employed by Reading before July 1, 1976, your Benefit Accrual Service for
Plan Years before July 1, 1976 will be determined according the provisions of the Plan
then in effect.
Only Hours of Service with Reading or an affiliate that participated in the Plan are counted
for this purpose. No additional Actual Years of Benefit Accrual Service will be credited on
or after July 1, 2016, except as required by law for purposes of determining the Participant’s
eligibility for an Early Retirement Benefit.
Projected Years of Benefit Accrual Service are the additional Years of Benefit Accrual
Service (if any) that you would complete between the earlier of the date of the calculation
and July 1, 2016 and your Normal Retirement Date if you remained an Eligible Employee
until Normal Retirement Age and are credited with the same number of Hours of Service in
each future Plan Year as during the last Plan Year in which you were employed for 12
months.
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4
Break in Service A Plan Year in which you didn’t complete more than 500 Hours of Service. It’s not
considered a Break in Service if you’re absent from work because of: a) military leave, or b)
pregnancy, childbirth, adoption, or care of your child immediately after birth or adoption.
If you’re on a leave of absence under b) above, you’ll receive enough Hours of Service to
prevent you from incurring a one-year Break in Service. These will be credited to the year
your absence starts (if you have less than 501 Hours of Service that year) or to the following
year (if you’ve completed 501 Hours of Service in the year your absence starts).
Compensation To determine your Average Monthly Compensation (frozen as of June 30, 2016), the Plan
generally counts the total compensation paid to you by Reading for a calendar year,
including regular salary and wages, commissions, and tips but excluding overtime pay,
bonuses, Hospital contributions to the Plan, and non-taxable fringe benefits. Compensation
also includes any contributions under cash-or-deferred arrangements, cafeteria plans or other
plans that aren’t includible in gross income by reason of Code Sections 125, 132(f) or
402(e)(3). The IRS limits the annual amount the Plan can count as Compensation, and this
limit may change from year to year.
Hour of Service An Hour of Service means each hour for which you’re paid or entitled to be paid by Reading
or one of its affiliates:
for the performance of your duties;
for reasons other than performance of duties, such as paid vacation, holiday, sickness,
military duty, or leave of absence (to a maximum of 501 hours for each continuous
period); and
for which back pay has been awarded or agreed to.
No hours will be granted for payments made under plans maintained solely to comply with
workers’ compensation, unemployment compensation, or disability insurance laws, or to
reimburse you for medical expenses.
Normal Retirement
Age/Date
If you became a Participant prior to July 1, 2009, your Normal Retirement Age is your 65th
birthday.
If you became a Participant on or after July 1, 2009, your Normal Retirement Age is the later
of your 65th birthday or the 5th anniversary of your becoming a Participant.
Your Normal Retirement Date is the first day of the month on or after your Normal
Retirement Age.
Participant You became a Participant in the Plan if you met the eligibility conditions. (See
“Participation” on page 5.) You remain a Participant until you die or your benefits have
been either completely distributed or forfeited. You earn benefits, however, only while you
are an Active Participant. Active participation in the Plan was frozen June 30, 2016.
Plan Administrator Tower Health
Plan Year July 1 – June 30
Social Security
Covered
Compensation
The average of the “Social Security taxable wage bases” in effect for each calendar year
during the 35-year period ending with the year in which you reach your Social Security
retirement age.
The Social Security taxable wage base is the level of your compensation subject to Social
Security taxes for any given year.
This term is used in determining your benefit under the Plan if you began participating after
June 30, 1977. Any increase in Social Security Covered Compensation after the earlier of
your termination of employment or June 30, 2016 is disregarded in determining your Normal
Retirement Benefit.
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5
Year of Service For vesting purposes, you receive a Year of Service for each Plan Year in which you’re
credited with at least 1,000 Hours of Service with Reading or its affiliates.
For eligibility purposes, you receive a Year of Service if you’re credited with at least 1,000
Hours of Service as of your first anniversary date of employment, or for any Plan Year that
begins on or after your date of hire.
ELIGIBILITY AND PARTICIPATION
Eligibility
You were an Eligible Employee if you were employed by Reading or an affiliate that participates in the Plan,
unless you were in one of the following categories:
covered under a collective bargaining agreement or represented by a collective bargaining agent;
a leased employee;
employed by Reading solely as a director;
employed by The Reading Hospital Medical Group (TRHMG), unless you became a Participant during your
prior employment with Reading; or
a consultant or independent contractor, or an employee whose employment agreement provides that you do
not participate.
Participation
As an Eligible Employee, you automatically became a Participant on the first day of the first Plan Year (July 1 –
June 30) in which you were credited with a Year of Service, (or in which the first anniversary of your date of
employment occurred, if you completed one Year of Service during your first anniversary year), if you were at
least 21 years old by the end of that Plan Year. If you completed one Year of Service before you were 21 years
old, you became a Participant at the beginning of the Plan Year of your 21st birthday.
For eligibility purposes, you received a Year of Service if you’re credited with at least 1,000 Hours of Service as
of your first anniversary date of employment. If you didn’t complete 1,000 hours within your first anniversary
year, we looked at Plan Years beginning with the Plan Year starting on or after your date of hire.
An Hour of Service means each hour for which you’re paid or entitled to be paid by Reading or one of its
affiliates:
for the performance of your duties;
for reasons other than performance of duties, such as paid vacation, holiday, sickness, military duty, or leave
of absence (to a maximum of 501 hours for each continuous period); or
for which back pay has been awarded or agreed to.
No hours will be granted for payments made under plans maintained solely to comply with workers’
compensation, unemployment compensation, or disability insurance laws, or to reimburse you for medical
expenses.
Breaks in Service
For Plan purposes, you incur a Break in Service in any Plan Year you are not credited with more than 500 Hours
of Service. However, you receive credit for a maximum of 501 Hours of Service if you’re away from work on an
authorized leave of absence, as described in the box below.
Participation in the Plan was closed on April 1, 2013 for employees who became Eligible Employees as a
result of a corporate transaction or acquisition, on July 1, 2013 for all Eligible Employees who were hired on
or after July 1, 2013, and on January 1, 2014 for all other Eligible Employees.
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6
Break in Service
A Break in Service is a Plan Year in which you don’t complete 501 hours of service. Before
we determine if you incurred a Break in Service, you’ll be credited with up to 501 hours of
service for any period of absence from work because of your pregnancy, the birth of your
child, the placement of a child in your home for the purpose of adoption, or the care of your
child following birth or placement for adoption.
Reemployment After Becoming a Participant If you become a Participant, leave Reading, and then return to work, the effect on your prior credited service
depends on whether you were vested when you left and the length of your break. (See “Service Breaks and
Leaves of Absence” on page 7.)
No Participant who leaves Reading and then returns to work following a one-year Break in Service ending on or
after July 1, 2013, or who receives a lump sum distribution or direct rollover of his or her entire Accrued Benefit
on or after that date, shall again become an Active Participant in the Plan. If you left Reading on or after July 1,
2013, but returned to work prior to July 1, 2016, and prior to incurring a one-year Break in Service or receiving a
lump sum distribution or direct rollover of your entire Accrued Benefit, you would have been eligible to return to
active participation. However, no Participant who incurred a one-year Break in Service and returned to work on
or after April 1, 2013 as a result of a corporate transaction or acquisition by Reading is eligible to become an
Active Participant.
Termination of Participation
Once you become a Participant in the Plan, you will remain a Participant until all of your benefits are either paid
to you or are lost because you leave Reading without having become vested and have a five-year Break in
Service. (See “Leaving Employment After Becoming a Participant” on page 7.) While you are a Participant, you
have the right to receive information about your benefits and to file claims for benefits when you become eligible
to receive them. You earn additional benefits under the Plan, however, only while you are working actively for
Reading or for an affiliate that has adopted the Plan. Remember, the Plan was frozen for all employees effective
July 1, 2016, so no Participants accrue additional benefits on or after that date.
Your Cost
Tower Health and its affiliates pay the cost of the Plan. Participants aren’t required or permitted to contribute to
the Plan. Contributions are determined by the Plan’s actuary and are contributed to the Trust Fund for the Plan.
YEARS OF SERVICE FOR VESTING AND BENEFIT ACCRUAL
Years of Service for Vesting
For vesting purposes, you receive a “Year of Service for Vesting” for each Plan Year in which you’re credited
with at least 1,000 Hours of Service (see page 5) with Reading or one of its affiliates. You may receive credit for
up to one Year of Service for vesting purposes with respect to service with Vascular Specialists if you became an
Eligible Employee as a result of Reading’s acquisition of Vascular Specialists. You may receive credit for Years
of Service for vesting purposes with respect to service with Berks Hematology Oncology Associates, Ltd.
(BHOA) if you became an Eligible Employee as a result of Reading’s acquisition of BHOA. To be “vested”
means you have a nonforfeitable right to a benefit under the Plan, even if you terminate employment with
Reading. Once you’re vested, you can’t lose your retirement benefit.
Your benefit is “vested” when you complete five Years of Service or, if earlier, on your 65th birthday. If you
became a Participant on or after July 1, 2009, your benefit is vested when you complete five Years of Service or,
if earlier, on the later of your 65th birthday or the fifth anniversary of when you became a Participant.
You can continue to earn service for vesting purposes even after the benefit freeze date.
Benefit Accrual Service
Your Years of Benefit Accrual Service and your Projected Years of Benefit Accrual Service are among the factors
used to determine the amount of your benefit.
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7
Actual Years of Benefit Accrual Service:
For each Plan Year during which you’re credited with 2,080 or more Hours of Service, you receive one Year
of Benefit Accrual Service.
For each Plan Year during which you’re credited with at least 1,000 but less than 2,080 Hours of Service,
you receive a pro-rated Year of Benefit Accrual Service equal to your Hours of Service divided by 2,080.
For the Plan Years in which you are hired and the Plan Year in which you terminate employment, you receive
a pro-rated Year of Benefit Accrual Service even if you have less than 1,000 Hours of Service.
If you were employed by Reading before July 1, 1976, your Benefit Accrual Service for Plan Years before
that date will be determined according the provisions of the Plan then in effect.
Projected Years of Benefit Accrual Service are the additional Years of Benefit Accrual Service (if any) that
you would complete between the earlier of the date of the calculation and July 1, 2016 and your Normal
Retirement Date if you remain an Eligible Employee until Normal Retirement Age and are credited with
the same number of Hours of Service in each future Plan Year as during the last Plan Year in which you
were employed for 12 months.
SERVICE BREAKS AND LEAVES OF ABSENCE If you leave Reading and later return, your prior accumulated Years of Service and Benefit Accrual Service may
be restored when you return. Whether or not you lose any service depends on whether you’re vested when you
leave Reading and whether you incur a Break in Service.
Break in Service
A Break in Service is a Plan Year in which you don’t have more than 500 Hours of Service. Before we determine
if you incurred a Break in Service, you’ll be credited with up to 501 Hours of Service for any period of absence
from work because of your pregnancy, the birth of your child, the placement of a child in your home for the
purpose of adoption, the care of your child following birth or placement for adoption, or your absence on leave
under the Family and Medical Leave Act of 1993. These Hours are credited to help you avoid a Break in Service
in the Plan Year in which you are on leave. They are counted for a Plan Year only if they are necessary to prevent
a Break in Service. The 501 Hour limit applies to all Hours counted for this purpose during a particular period of
leave.
Leaving Employment After Becoming a Participant
If you leave Reading and then return before incurring a Break in Service, you’ll continue to participate in the Plan
as if you had never left. This means you’ll keep all the Years of Service and Benefit Accrual Service you earned
before the day you left.
If you return to Reading after you’ve incurred a Break in Service, the effect on prior credited service depends on
whether you were vested when you left and the length of your break, as follows:
If you’re vested when you leave Reading, you won’t lose any service. Your prior Years of Service and
Actual Benefit Accrual Service will be restored, provided you complete at least one more Year of Service
after you’re reemployed, but you won’t earn any service during the break.
If you’re not vested when you leave Reading and your Break in Service lasts five years or longer, you’ll
lose the Years of Service and Benefit Accrual Service you accrued before your break and you won’t earn any
service during the break. When you return, you will be treated as a new employee for all Plan purposes and
must again meet the conditions for becoming a Participant.
Only Hours of Service with Reading or an affiliate that participates in the Plan are covered for this
purpose. A Participant shall not earn additional Actual Years of Benefit Accrual Service on or after
July 1, 2016, except as required by law for purposes of determining the Participant’s eligibility for an
Early Retirement Benefit.
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8
If you’re not vested when you leave Reading and your Break in Service lasts less than five years, your
Years of Service and Benefit Accrual Service will be restored after you return to Reading and complete at
least one more Year of Service, but you won’t earn any service during the break.
No Participant who leaves Reading and then returns to work following a one-year Break in Service ending on or
after July 1, 2013, or who receives a lump sum distribution or direct rollover of his or her entire Accrued Benefit
on or after that date, shall again become an Active Participant in the Plan. If you left Reading on or after July 1,
2013, but returned to work prior to July 1, 2016, and prior to incurring a one-year Break in Service or receiving a
lump sum distribution or direct rollover of your entire Accrued Benefit, you would have been eligible to return to
active participation. However, no Participant who incurred a one-year Break in Service and returned to work on
or after April 1, 2013 as a result of a corporate transaction or acquisition by Reading is eligible to become an
Active Participant.
Qualified Military Leave
Prior to the Plan freeze, you could continue to earn Benefit Accrual Service and Years of Service for Vesting if
you were on a leave of absence due to service in the US Armed Forces. You must return to active work after
you’re discharged and meet certain legal requirements to receive credit. Generally, you won’t incur a Break in
Service for any period of qualified military leave.
Qualified Family and Medical Leave (FMLA)
Generally, you won’t continue to earn Benefit Accrual Service and Years of Service for Vesting if you’re on an
unpaid qualified family and medical leave. However, up to 501 Hours of Service during which you’re on a period
of unpaid qualified family and medical leave will be counted to help you avoid a Break in Service.
ELIGIBILITY FOR BENEFITS
Normal Retirement
You can receive a full pension benefit when you reach Normal Retirement Age –
your 65th birthday if you became a participant before July 1, 2009. If you become
a participant on or after July 1, 2009, your Normal Retirement Age is the later of
your 65th birthday or the 5th anniversary of your commencement in the Plan.
Early Retirement
You can retire early with a reduced pension when you reach age 55 with at least
15 Actual Years of Benefit Accrual Service, or when you reach age 62 with at
least 10 Actual Years of Benefit Accrual Service. You can continue to earn
service for purposes of determining your eligibility for Early Retirement even
after the benefit freeze date.
Deferred Vested Retirement
If you have at least five Years of Service for Vesting, and do not qualify for a
Normal Retirement Benefit or Early Retirement Benefit when you terminate
employment, you can start receiving benefits when you reach Normal Retirement
Age. Or you can start receiving a reduced pension at or after age 55 (if you had
at least 15 Years of Benefit Accrual Service) or age 62 (if you had at least 10
Years of Benefit Accrual Service).
Late Retirement
If you continue working for Reading after your Normal Retirement Date and
defer payment of your benefits, your Late Retirement pension will be calculated
like a Normal Retirement benefit, based on your Benefit Accrual Service to your
actual retirement date (or June 30, 2016, if earlier). You may elect to start
receiving your pension after your Normal Retirement Date but before you
actually retire.
Spousal Benefits (only to a surviving spouse)
If you’re vested and die before your Annuity Starting Date, your surviving spouse
is entitled to a death benefit.
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9
HOW YOUR BENEFIT IS CALCULATED
Normal Retirement Benefit
There are two different formulas for calculating your Normal Retirement Benefit, depending on the date your Plan
participation began.
If you became a participant in the Plan after June 30, 1977, your benefit will be the sum of (A), (B) and (C) below:
(A) 1.1% of your Average Monthly Compensation multiplied by the sum of your Years of Benefit Accrual Service and
Projected Years of Benefit Accrual Service (not more than 35);
(B) 0.6% of your Average Monthly Compensation in excess of your Social Security Covered Compensation multiplied by the sum of your Years of Benefit Accrual Service and Projected Years of Benefit Accrual Service (not more than 35); and
(C) 1.7% of your Average Monthly Compensation multiplied by the sum of your Years of Benefit Accrual Service and
Projected Years of Benefit Accrual Service (over 35).
If you became a participant in the Plan before July 1, 1977, your benefit will be the sum of (A), (B) and (C) below:
(A) 1.4% of your Average Monthly Compensation multiplied by the sum of your Years of Benefit Accrual Service and
your Projected Years of Benefit Accrual Service (not more than 35);
(B) 0.6% of your Average Monthly Compensation in excess of $750 multiplied by the sum of your Years of Benefit Accrual Service and Projected Years of Benefit Accrual Service (not more than 35); and
(C) 2.0% of your Average Monthly Compensation multiplied by the sum of your Years of Benefit Accrual Service and
Projected Years of Benefit Accrual Service (over 35).
The benefit produced by either of the above two formulas cannot be less than your Accrued Benefit (as defined
below) as of June 30, 1992, as determined under the Plan formula in effect before July 1, 1989.
Note:
If you earn an Hour of Service on or after July 1, 2003, your normal retirement benefit won’t be less than
a minimum annual Retirement Benefit of $300 payable in the form of a Life Annuity (or $25 a month).
If you earn an Hour of Service on or after June 30, 2006, your normal retirement benefit won’t be less
than a minimum annual Retirement Benefit of $1,200 payable in the form of a Life Annuity (or $100 a
month).
You will not earn additional benefits under the Plan on or after July 1, 2016.
The IRS limits the annual amount of benefit that can be provided by the Plan. Reading will notify you if you’re
affected by this limit when your benefit is determined.
Accrued Benefit
As of any date before your Normal Retirement Date, your “Accrued Benefit” is your Normal Retirement Benefit,
calculated under formula (A) or (B) above, multiplied by a fraction (not to exceed 1):
Your Actual Years of Benefit Accrual Service
The sum of your Actual Years of Benefit Accrual Service + Your Projected Years of Benefit Accrual Service
On and after your Normal Retirement Date, your Accrued Benefit and your Normal Retirement Benefit are the
same amount. You will not earn additional Accrued Benefits on or after July 1, 2016.
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Early Retirement Benefit
Your Early Retirement Benefit is your Accrued Benefit at your Early Retirement Date (see page 9), reduced by
1/15th for each of the first 5 years, and by 1/30th for each of the next 5 years, by which your Annuity Starting Date
precedes your Normal Retirement Date. Payments are reduced because they are expected to be made over a
longer period of time.
Deferred Vested Retirement Benefit
You’re entitled to a Deferred Vested Retirement Benefit if you have at least five Years of Service for Vesting.
Your Deferred Vested Retirement Benefit is your Accrued Benefit at the date that you terminated employment
with Reading and its affiliates, payable at your Normal Retirement Date.
Late Retirement Benefit
If you continue working after your Normal Retirement Date and wait to begin your benefits, your Late Retirement
Benefit will be calculated in the same way as a Normal Retirement Benefit, based on your Benefit Accrual
Service up to the date you actually retire (or June 30, 2016, if earlier). You’ll receive the greater of this
calculation or the actuarially equivalent value of your Normal Retirement Benefit earned through your Normal
Retirement Date. You will also receive an upward adjustment if you start receiving benefits after age 70½.
WHEN BENEFITS ARE PAID
You must file a claim with the Plan Administrator in order to begin receiving payments under the Plan. (See
“Claims for Pension Benefits” on page 14.)
Normal Retirement Benefit
If you became a Participant before July 1, 2009, you will be eligible for a Normal Retirement Benefit when you
retire on or after your Normal Retirement Date. If you became a Participant prior to July 1, 2009, your Normal
Retirement Age is your 65th birthday. If you became a Participant on or after July 1, 2009, your Normal
Retirement Age is the later of your 65th birthday or the 5th anniversary of your becoming a Participant. Your
Normal Retirement Date is the first day of the month on or after your Normal Retirement Age. Benefits always
begin as of the first day of a month.
Early Retirement Benefit
You may receive an Early Retirement Benefit as early as
Age 55, if you have 15 Actual Years of Benefit Accrual Service, or
Age 62, if you have 10 Actual Years of Benefit Accrual Service.
Your Early Retirement Benefit payments will begin on your “Early Retirement Date” (the first day of the month
that coincides with or next follows the date you terminate employment after becoming eligible for an Early
Retirement Benefit) or on any later first day of a month that you elect. You may not elect to start receiving
benefits later than your Normal Retirement Date if you are not an Active Participant.
Late Retirement Benefit
If you continue working past your Normal Retirement Date, you may elect to begin receiving your Late
Retirement Benefit as of the first day of any month on or after your Normal Retirement Date, but not later that the
first day of month coinciding with or next following your termination of employment.
If you begin receiving benefits before terminating employment, you may earn additional benefits based on your
continued service and compensation. Your Accrued Benefit will be recalculated at the beginning of each Plan
Year, but your additional accruals during the preceding year will be reduced (but not below zero) by the
actuarially equivalent value of the distributions you received during that Plan Year.
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Effective after July 1, 2013, if you elect or have previously elected to commence a Late Retirement Benefit before
your termination of employment, any further benefits that may accrue under the Plan on or after the later of
July 1, 2013 or your benefit commencement date will be determined as of the first date of the month following
your termination of employment.
Deferred Vested Retirement Benefit
If you leave Reading (now Tower Health) and its affiliates for any reason (other than death) before you’re eligible
to receive your Early or Normal Retirement Benefit and you have at least five Years of Service for Vesting, you’ll
be entitled to a Deferred Vested Retirement Benefit. The benefit is payable when you reach age 65 (or earlier, if
you become eligible for Early Retirement). Payment of this benefit will normally begin on your Normal
Retirement Date. You may elect an earlier starting date in these circumstances.
If you have at least 15 Actual Years of Benefit Accrual Service when you leave, you may elect to begin
receiving your benefit as of the first day of any month on or after your 55th birthday but no later than your
Normal Retirement Date.
If you have at least 10, but less than 15, Actual Years of Benefit Accrual Service when you leave, you may
elect to begin receiving your benefit as of the first day of any month on or after your 62nd birthday but no later
than your Normal Retirement Date.
If you begin receiving benefits before your Normal Retirement Date, the amount of each payment will be reduced
in the same manner as for Early Retirement Benefits, to take in account the fact that you’ll be receiving benefits
over a longer period than if they started at your Normal Retirement Date.
Note that if the lump sum present value of your vested benefit doesn’t exceed $5,000, that amount will be paid to
you in a Lump Sum as soon as administratively possible following your retirement or termination.
Returning to Work After Retirement
If you’re receiving pension payments and you return to work at Reading (now Tower Health) before your Normal
Retirement Date and become an active Plan Participant again, your benefits will be suspended (stopped). All of
your Benefit Accrual Service will be restored and, when you retire or terminate employment again, your benefit
will be calculated to take into account any new Benefit Accrual Service. However, the benefit will be reduced to
reflect any payments you previously received before your Normal Retirement Date. Participation in the Plan
upon reemployment is limited as described above. (See “Leaving Employment After Becoming a Participant” on
page 7.)
HOW BENEFITS ARE PAID
Your Plan benefit will be paid in the normal form when you retire, unless you choose an optional form of
payment. A number of optional forms of payment are available to you with the appropriate consent, so you can
select the form of payment that best meets your needs.
Normal Forms of Payment
The normal form of payment depends on your marital status at the time you retire.
Life Annuity. If you’re single when you retire, you’ll receive a monthly payment for as long as you live.
When you die, all benefit payments will stop.
100% Joint and Survivor Annuity. If you’re married when you retire, you’ll receive a reduced monthly
payment for the rest of your lifetime whether or not your spouse survives you. (The reduction depends on
your age and your spouse’s age.) If you die before your spouse, 100% of your monthly benefit will be paid to
your spouse each month for the rest of his or her life. The monthly income you receive is less than the single
Life Annuity because payments are expected to be made over two lifetimes, rather than just one. If you’re
40641645v.6
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married and wish to elect a different form of payment, your spouse must give written consent of your election,
witnessed by a plan official or a notary public.
Optional Forms of Payment
If the normal form doesn’t meet your needs, you can choose one of the following optional forms of payment by
notifying the Human Resources Department, in writing, during the 90-day period before your Annuity Starting
Date. The Human Resources Department will send you information about how to make your election. (See
“Claims for Pension Benefits” on page 14.)
Life Annuity. If you’re married, you may elect to receive a monthly payment for as long as you live. When
you die, all benefit payments will stop. (The Life Annuity is the normal form of payment for single
participants and an optional form for married participants.)
50% and 75% Joint and Survivor Options. If you’re married, you may elect a joint and survivor option
that provides your surviving spouse with a monthly benefit after you die equal to either 50% or 75% of the
monthly benefit payable during your lifetime. With either of these forms of payment, you’ll receive a larger
monthly payment for the rest of your lifetime than with the 100% Joint and Survivor Option but a smaller
monthly payment than with the Life Annuity Option. The monthly income you receive before your death is
more than the monthly income you would receive under the 100% Joint and Survivor Annuity because
payments to be made after your death are smaller under either of these options.
If you elect a joint and survivor annuity and your beneficiary dies before you do, but after payments begin,
you’ll continue to receive your reduced monthly payment for the rest of your life. However, if your
beneficiary dies before payments begin, your joint and survivor election will be null and void and you will
have the right to elect a different form of benefit.
Certain and Life Annuity. This option provides a reduced monthly payment for your lifetime, but
guarantees payments for at least 10 years (120 months). If you die before receiving the guaranteed number of
payments, your designated beneficiary will receive your monthly payment for the balance of the guaranteed
period.
If your beneficiary dies before you start to receive benefits, your election is automatically cancelled and you’ll
need to designate a new beneficiary or select a different option. If your beneficiary dies before you but after
you start receiving benefits, you may name a new beneficiary, but you can’t elect another form of benefit. If
both you and your beneficiary die before the guaranteed number of payments have been made, the balance of
the payments will be made to one of the following determined by the Plan Administrator in accordance with
the following order of priority:
• Your surviving spouse
• Your surviving children, in equal parts
• Your estate
Small Benefit Lump Sums
If you were vested before you terminated employment and the present value of your pension benefit is $5,000 or
less, the Plan will automatically pay the benefit to you in the form of a lump sum as soon as administratively
possible following your completion of the cash-out election form. You may receive the payment directly or roll it
over into an IRA or an eligible employer plan.
If the present value of your pension is more than $1,000 but not more than $5,000 and you don’t complete an
election for a cash-out, direct rollover, or combination of the two, the distribution will be rolled over into an IRA
established by the Plan Administrator. If the present value is less than $1,000 and you don’t complete an election
form, the payment will be made directly to you, minus applicable federal and state withholding taxes.
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Optional Lump Sum Cash-Outs
If you retired or terminated employment on or after July 1, 2008 and the actuarially equivalent value of your
pension is more than $5,000 but not more than $10,000, you may elect to receive the value of the benefit as a
lump sum in lieu of a monthly retirement benefit. This payment will constitute a complete discharge of the Plan’s
liability with regard to your pension entitlement, and no further payments will be due or payable to you from the
Plan.
Restrictions Based on Plan Funding
Tax rules limit the ability of the Plan to pay lump sums if the Plan’s funding levels are below certain limits.
These limits currently do not apply to the Plan, and the Plan Administrator will provide you with a notice if these
limits do apply in the future.
DEATH BENEFITS
Death Before Retirement
If you are legally married, have at least five Years of Service for Vesting, and die before your Annuity Starting
Date, your surviving spouse is entitled to a death benefit calculated as follows:
If you qualified for Early Retirement at the time of your death, your spouse’s benefit will be the survivor
annuity that would have been payable if you had died immediately after your Annuity Starting Date and had
elected the Joint and 100% Survivor Option. Your spouse may elect to begin receiving it as of the first day of
any month up to the month in which you would have reached age 70½. The amount of the monthly payment
will be actuarially adjusted to reflect your spouse’s life expectancy when it begins.
If you didn’t qualify for Early Retirement at the time of your death, your surviving spouse will be eligible for
a death benefit on what would have been your Normal Retirement Date. This benefit will be the survivor
annuity that would have been payable if you had survived until your Normal Retirement Date without being
credited with any additional Benefit Accrual Service, had elected the Joint and 100% Survivor Option and had
died immediately thereafter. Your spouse may elect to begin receiving it as the first day of any month no
earlier than your Normal Retirement Date and no later than the month in which you would have reached age
70½. The amount of the monthly payment will be actuarially adjusted to reflect your spouse’s life expectancy
when it begins.
If the present value of the death benefit is $5,000 or less, the Plan will automatically pay it to your spouse in a
lump sum as soon as administratively possible after your death. Otherwise, the death benefit will be paid to your
spouse, at his or her election, in the form of a monthly annuity, or if the value of the death benefit is $10,000 or
less, as a lump sum distribution.
Death After Your Normal Retirement Date But Prior to Termination of Employment
If you are unmarried and you die on or after your Normal Retirement Date but prior to commencing a benefit
under the Plan, a death benefit will be paid to your beneficiary equal to the installments that would remain
payable if you had elected to commence benefits coincident with your Normal Retirement Date and you began
receiving benefits in the form of a Certain and Life Annuity. If the present value of the death benefit is $5,000 or
less, the Plan will automatically pay it to your beneficiary in a lump sum as soon as administratively possible after
your death. Otherwise, the death benefit will be paid to your beneficiary, at his or her election, in the form of a
monthly annuity, or if the value of the death benefit is $10,000 or less, as a lump sum distribution.
If you die while performing qualified military service, your beneficiary shall be entitled to any additional benefits
(other than benefit accruals relating to the period of qualified military service) provided under the Plan,
determined as if you had resumed and terminated employment on account of death.
Death After Payments Begin
If you die after your benefits have started, any death benefits will be paid according to the option you selected.
40641645v.6
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TRANSFER TO AN AFFILIATE OF READING
There are special provisions for Active Participants who transfer to an affiliate that hasn’t adopted the Plan.
These provisions apply to:
An Active Participant’s Years of Service for Vesting;
Years of Benefit Accrual Service;
The calculation of an Active Participant’s Average Monthly Compensation; and
Service used to determine Early Retirement eligibility.
Vested Active Participant Transfers
If you’re vested at the time you transfer to an affiliate, you’ll continue to accrue benefits under this Plan as an
Active Participant and aren’t eligible for any plan provided by the affiliate.
Non-Vested Active Participant Transfers (on or before December 31, 2008)
If you’re not vested at the time you transfer to the affiliate and you transferred on or before December 31, 2008,
you’ll be an Active Participant under this Plan through the earlier of your date of termination or December 31,
2008. Then, starting January 1, 2009, you’ll be eligible for any plan provided by the affiliate.
Years of Service for Vesting: You’ll continue to accrue Years of Service for Vesting while you’re still
employed by the affiliate.
Years of Benefit Accrual Service: You’ll stop accruing Benefit Accrual Service as of the earlier of your date
of termination or December 31, 2008.
Average Monthly Compensation: Compensation paid by the affiliate while you’re still employed there will
be included for calculating your Average Monthly Compensation (but not after the Plan freeze date of June 30,
2016).
Early Retirement Eligibility: Your Years of Service for Vesting will be used to determine if you’re eligible
for Early Retirement.
Non-Vested Active Participant Transfers (after December 31, 2008)
If you’re not vested at the time you transfer to an affiliate and you transferred after December 31, 2008, you’ll be
a participant under this Plan until your date of transfer. After that, you’ll be eligible for any plan provided by the
affiliate.
Years of Service for Vesting: You’ll continue to accrue Years of Service for Vesting while you’re still
employed by the affiliate.
Years of Benefit Accrual Service: You’ll stop accruing Benefit Accrual Service as of your date of transfer.
Average Monthly Compensation: Compensation paid by the affiliate while you’re still employed there will
be included for calculating your Average Monthly Compensation (but not after the Plan freeze date of June 30,
2016).
Early Retirement Eligibility: Your Years of Service for Vesting will be used to determine if you’re eligible
for Early Retirement.
Non-Active Participant Transfers
If you’re not an active participant at the time you transfer to an affiliate, you won’t have a benefit under this Plan,
but you’ll be eligible for any plan provided by the affiliate.
CLAIMS FOR PENSION BENEFITS
Claim Forms
At least 30 days, but not more than 90 days, before your first benefit payment, you’ll receive a “Retirement
Benefit Election Form” along with a notice describing the different payment options and the effect each option
will have on your retirement benefit amount. The notice will also describe the time limits within which you may
make a choice or change it.
40641645v.6
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After you receive this information, you may make a choice, or change it, at any time before your payments begin
(subject to your spouse’s written consent, if you’re married). Your (or your beneficiary’s) Retirement Benefit
Election Form should be sent to the Plan Administrator at the address listed in the “Administrative Information”
section on page 19. Once your payments have begun, you may not change your form of payment.
Appealing a Denied Claim
If all or part of your claim is denied, you’ll receive a written explanation or a written notice of extension within 90
days after the claim is filed. This explanation will include the reason for the denial, with specific reference to the
Plan provisions on which the denial is based. You’ll also receive an explanation of the process to appeal the
denial. If you don’t get a response to your claim within the proper time period, you may consider your claim
denied and file an appeal.
You or your authorized representative may file an appeal by writing to the Plan Administrator at the address listed
in the “Administrative Information” section on page 19. Your written request for either a review of the denied
claim or a written notice of extension must be made within 60 days after you receive notice of the denial. If you
fail to request a review within the 60-day period, the denial of the claim will be assumed to be correct. You
and/or your authorized representative have the right to examine all documents that are relevant to your claim.
You may also furnish written statements to support your appeal.
The final decision on appeal must be made within 60 days after your request for an appeal is received. If more
time is needed for a final decision, this review period may be extended for another 60 days. If an extension is
necessary, you’ll receive written notice within the first 60 days explaining the reasons for the delay.
If your claim is denied on appeal, the reasons for the denial must be explained to you in writing. If your claim is
denied and you wish to institute legal proceedings challenging the determination, you must institute those
proceedings within 180 days after you receive the denial. If you don’t get an answer to your appeal within the
proper time period, you may consider your appeal denied.
ERISA RIGHTS STATEMENT
Federal law and regulations concerning your rights under the Plan require the following statement:
As a participant in the Reading Health System Pension Plan, you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Regulations under ERISA
provide that all Plan participants shall be entitled to:
Receive information about Your Plan Benefits
Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as work
sites, all documents governing the Plan, including insurance contracts, and a copy of the latest annual report
(Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure
Room of the Employee Benefits Security Administration.
Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the
Plan, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The
Plan 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 benefit at your Normal Retirement Date
and, if so, what your benefits would be at Normal Retirement Date if you stop working under the Plan now.
If you don’t have a right to a benefit, the statement will tell you how many more years you have to work to
40641645v.6
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get a right to a benefit. This statement must be requested in writing and isn’t required to be given more than
once every twelve (12) months. The Plan must provide the statement free of charge.
Prudent Actions by Plan Fiduciaries
In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for
the operation of the 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 Tower Health
or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining
a benefit or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a benefit is denied or ignored, in whole or in part, you have 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 don’t 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 Plan 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. 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’re discriminated against for asserting your rights, you may seek assistance from the U.S.
Department of Labor, or you may file suit in a Federal court.
The court will decide who should pay court costs and legal fees. If you’re successful, the court may order the
person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees,
for example, if it finds your claim is frivolous.
Assistance with Your Questions
If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions
about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the
Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S.
Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under
ERISA by calling the publications hotline of the Employee Benefits Security Administration.
OTHER IMPORTANT INFORMATION
Right to Amend or Terminate the Plan
Tower Health intends to continue the Plan indefinitely, but reserves the right to amend or terminate the Plan, in
whole or in part, at any time, for any reason. However, the Plan can’t be changed in a way that would reduce the
value of the benefit you’ve already earned. If Tower Health terminates the Plan for any reason, all participants
become fully vested in their benefit accrued to the date of their termination, to the extent the benefits are then
funded. The assets in the Trust Fund will be distributed in a specific order to participants and beneficiaries until
the assets are used up.
Disposition of Assets Following Termination
The Plan establishes a special priority for the payment of benefits of different groups of participants upon Plan
termination. Benefits are provided in the following order:
40641645v.6
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For participants who retired or could have retired and received an immediate benefit three or more years
before the termination.
For participants whose benefits are guaranteed by the Pension Benefit Guaranty Corporation (see page 18).
For participants who have a vested right to their benefits due to their completion of the required number of
Years of Service.
For all other participants.
Loss or Reduction of Benefits
Your benefits may be lost or reduced in the following circumstances:
Your employment terminates for any reason before you have a vested interest in your benefit.
You (or your beneficiary) don’t provide the Plan with your most recent address and you or your beneficiary
can’t be located at the time benefits are scheduled to commence.
You fail to make proper application for benefits or fail to provide necessary information.
You die before beginning to receive benefits and aren’t eligible for death benefits.
Benefits are suspended due to periods of reemployment after benefits have started (see page 11).
The trust fund created to provide benefits is underfunded and the benefits aren’t otherwise covered by
insurance offered by and purchased from the Pension Benefit Guaranty Corporation (PBGC), a Federal
agency. In addition, under certain provisions of the ERISA, the PBGC can “recapture” certain benefit
payments that have been made under a plan if the plan is terminated or becomes insolvent.
Benefits may be reduced or lost due to limitations under the Internal Revenue Code; the imposition of
income, penalty, and excise taxes or a tax lien; the application of a domestic relations order; or a judgment or
settlement agreement that requires you to make payments to the Plan.
Assignment of Benefits
Ordinarily, your pension can’t be assigned, which means that it can be paid only to you or your designated
beneficiary. However, if you become a party to a divorce, or you become liable for support or alimony payments,
a court may issue a “qualified domestic relations order (QDRO)” that legally requires the Plan to pay all or a
portion of your benefits to an “alternate payee” (e.g. your spouse, ex-spouse, children, or other dependent). You
may obtain a copy, free of charge, of the Plan’s procedures relating to qualified domestic relations orders from the
Administrative Committee.
Federal Limitations
Under Federal law, there are certain limitations on the amount of pension benefits that you may receive from the
Plan. These limits generally apply only to a small number of the most highly compensated employees and you’ll
be notified if you’re affected.
Top-Heavy Rules
A top-heavy plan is one in which the value of the accrued benefits of certain key employees is more than 60% of
the value of the accrued benefits of all participants in the Plan. Key employees are generally owners, officers, or
shareholders of a business. The Plan is currently not a top-heavy plan, but a determination of top-heavy status is
made every year. Under special rules provided by Federal law, a top-heavy plan generally provides a minimum
benefit and more rapid vesting of benefits.
Rollovers
You may elect to have any portion of an eligible rollover distribution paid directly to an Individual Retirement
Account (IRA), a Roth IRA or another qualified plan. An eligible rollover distribution is generally the taxable
portion of any lump-sum distribution, or any distribution that is one of a series of annual installments over a
period of less than 10 years, made to you under the Plan.
Pension Benefit Guaranty Corporation (PBGC)
If the Plan terminates and Plan assets are insufficient to pay all benefits, certain benefits under the Plan are
insured by the PBGC. Generally, the PBGC guarantees most vested normal retirement benefits, early retirement
benefits, and certain disability and survivors’ pensions.
40641645v.6
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The PBGC guarantee generally doesn’t cover:
Benefits greater than the maximum guaranteed amount set by law for the year in which the plan terminates;
Some or all of benefit increases and new benefits based on plan provisions that have been in place for fewer
than five years at the time the plan terminates;
Benefits that aren’t vested because you haven’t worked long enough for the company;
Benefits for which you haven’t met all of the requirements at the time the 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; and
Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and
severance pay.
Even if a certain portion of your benefits is not guaranteed, you still may receive some of those benefits from the
PBGC depending on how much money your plan has and on how much the PBGC collects from employers.
For more information about the PBGC and the benefits it guarantees, ask the Plan Administrator or contact
PBGC’s Technical Assistance Division:
Pension Benefit Guaranty Corporation
1200 K Street NW, Suite 930
Washington, DC 20005-4026
(202) 326-4000 (not a toll-free number)
TTY/TDD users may call the Federal relay service toll-free at (800) 377-8339 and ask to be connected to (202)
326-4000. Additional information about the PBGC’s pension insurance program is available through the PBGC’s
website at www.pbgc.gov.
Examining the Plan Documents
You may examine copies of the Plan’s legal documents at the office of the Plan Administrator. If you would like
a copy of a document, you may send a written request to the Plan Administrator. You may be charged a
reasonable copying charge for these documents.
Payment of Expenses
Plan expenses shall be paid from the Trust Fund to the extent not paid by Reading (now Tower Health).
Incapacity
If the Plan Administrator determines that you (or your beneficiary) are incapable of receiving your pension
benefit, payment will be made to the guardian, legal representative, or person or institution who has custody of
you or your beneficiary.
ADMINISTRATIVE INFORMATION
Plan Name
Reading Health System Pension Plan
Note: The Plan was formerly known as The Reading Hospital and Medical Center Pension Plan.
Employer Identification Number of the Plan Sponsor
23-1352204
Plan Number 001
40641645v.6
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Plan Sponsor
Tower Health
Sixth and Spruce Streets
West Reading, PA 19611
Note: Tower Health was formerly known as the Reading Health System, and Reading Health System was
formerly known as The Reading Hospital and Medical Center.
Plan Administrator
A Committee consisting of individuals appointed by Tower Health administers the Plan. The Personnel
Committee has full responsibility and discretion to interpret and administer the terms and provisions of the Plan.
The Personnel Committee’s address and phone number are:
Personnel Committee
Tower Health
P.O. Box 16052
Reading, PA 19612
(610) 988-8250
Trustee
M&T Bank
50 North 5th Street
Reading, PA 19601
Plan Year
A Plan Year is the 12-month period used to maintain the Plan’s fiscal records. The Plan Year is July 1 through
June 30.
Plan Funding Reading (now Tower Health) makes all contributions to the Plan, which are held and invested in a trust fund
maintained by the Plan’s Trustee. The amount contributed by Reading is determined by the Plan’s actuary, an
independent expert who determines how much money must be put into the fund.
Employees aren’t required or permitted to make any contributions to the Plan. The assets of the Plan are used
only for the purpose of paying benefits to Plan participants and beneficiaries, and paying proper administrative
expenses.
Named Fiduciary The Named Fiduciary has general authority over the administration and operation of the Plan. The Fiduciary
Committee of Tower Health is the Named Fiduciary.
Agent for Service of Legal Process
If you feel you must take legal action for any reason regarding your benefits, legal action can be served on the
Plan Sponsor. Service of legal process may also be made upon the Plan Administrator or the Plan Trustee.