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The CNA 401K Plan

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The CNA 401K Plan The CNA 401k Plan Summary Plan Description Effective January 1, 2020 The CNA 401k Plan Important Note: This document is the Summary Plan Description (SPD) of the CNA 401k Plan (formerly known as the CNA Savings and Capital Accumulation Plan and the CNA 401(k) Plus Plan) under the Employee Retirement Income Security Act of 1974 (ERISA). It generally describes the benefits provided under the Plan. It does not attempt to cover every detail concerning the Plan. The terms of the Plan are contained in the applicable Plan document. In the event that a provision in this SPD conflicts with the terms and provisions of the official Plan document, the terms of the Plan document will govern. You may obtain a copy of the Plan document by writing to the Plan Administrator at CNA, 151 N. Franklin Street – 18th floor, Chicago, IL 60606. The Plan Administrator may make a reasonable charge for the copies. Nothing in this SPD is intended to be interpreted as a promise or guarantee of future or continued employment or as stating provisions and terms of employment. Continental Casualty Company (the “Company”) and its employees recognize their mutual right to end their employment relationship at any time and acknowledge that such relationship is one of employment at will. Except with respect to employment at will, the Company reserves the right to change (including, but not limited to, the right to amend, suspend, or terminate) its personnel policies, procedures, and benefits, including this Plan. It also reserves the right to make exceptions to its Human Resources policies and procedures, at its discretion, at any time without notice. The policies and benefits described in this SPD may vary by affiliate, employee groups, or business segments, as well as from location to location. No representative of the Company has authority to make any agreement contrary to the provisions of any CNA employee benefit plan. Other important information about the Plan is included in the Benefits at CNA chapter entitled “General Information.” If you have access to the CNA intranet, you may print this SPD directly by logging on to the Your Benefits Resources link on Inside CNA > Human Resources > Benefits and Wellness > General Benefits (or www.mybenefitsdirectory.com/cna). You may request a paper copy at no charge by contacting the Plan Administrator. See “Statement of ERISA Rights” on page 42. Table of Contents Introduction ............................................................................................................................................. 1 Your 401k Plan, at a Glance ...................................................................................................................... 2 CNA 401k Plan 2 Participation ............................................................................................................................................ 3 Eligibility 3 How to Enroll 3 Naming a Beneficiary 4 If You Are Rehired 5 If You Transfer to an Affiliate of the Company or Loews 6 Situations That May Affect Your Account 7 Your Employee Contributions 8 Before-Tax Contributions 9 Roth Contributions 9 Catch-Up Contributions 10 After-Tax Contributions 10 Contribution Limits 10 Making Up Contributions After Military Service 11 How to Stop, Start, or Change Contributions 12 Rollover Contributions 12 Company Contributions 14 Basic Contributions 14 Company Match Contributions 14 Company Contributions after Military Service 14 Vesting ................................................................................................................................................... 15 Vesting Service 15 Other Vesting Features 16 Reinstating Your Vesting Service 16 Forfeitures 17 Your Investment Options ....................................................................................................................... 18 Investment Fund Pricing Information 19 Making Your Investment Choices 19 Changing Your Investment Allocation 20 What Is Investment Risk? 20 Alight Financial Advisors 21 Borrowing From Your Accounts ............................................................................................................. 22 How Much You Can Borrow 22 Loan Repayments 23 Loan Default/Deemed Distribution 23 Applying for a Loan 24 Withdrawals from Your Account 25 After-Tax/Rollover Contributions—“In-Service Non-Hardship Withdrawal” 28 Age 59½ Withdrawals—“In-Service Age 59½ Withdrawal” 29 Company Match Contributions 29 Before-Tax and Roth 401k Contributions—“Hardship Withdrawal” 29 Before-Tax and Roth 401k Contributions—“Active Military Duty” 30 Tax Considerations 30 Requesting a Withdrawal 31 How a Withdrawal Reduces Future Growth 31 In Plan Roth Conversion 31 Distribution of Your Account 32 How Distributions Are Taxed 34 Rollovers 34 Required Minimum Distributions 36 Special Rules for Former Participants in the CNA Surety 401k Plan ........................................................ 37 Additional Important Information ......................................................................................................... 40 Plan Name, Type, and Number 40 Plan Trustee 40 Plan Administrator 40 Plan Sponsor and Employers 40 Agent for Service of Legal Process 41 How the Plan Is Funded 41 Right of Recovery 41 Plan Records 41 Plan Fees 41 Plan Amendment and Termination 42 Nondiscrimination Rules 42 Top-Heavy Rules 43 The Pension Benefit Guaranty Corporation 43 Assigning Your Benefits 43 Effect on Other Company Plans 43 Requesting a Review of a Denied Claim ................................................................................................. 44 Statement of ERISA Rights ..................................................................................................................... 46 Receive Information About Your Plan and Benefits 46 Prudent Actions by Plan Fiduciaries 46 Enforce Your Rights 46 Assistance with Your Questions 47 Appendix A: CNA 401k Plan Investment Fund Options (Effective January 1, 2020) .................................. 1 Appendix B: CNA 401k Plan Investment Transfer Restrictions ................................................................. 6 Introduction No matter how far off retirement is for you, it’s important to start thinking about it now. When you’re thinking about retirement, consider these facts: • Living 25 or 30 years after retirement is no longer unusual. • What a dollar buys today will probably be reduced in 10, 20, or 50 years due to inflation. • Health care costs continue to rise, and the future of government programs that contribute to the support of senior citizens is uncertain. • As a rule of thumb, financial experts say you will need an annual income equal to about 60% to 80% of your pre-retirement annual income. • The U.S. Treasury estimates that Social Security may provide only about 20% of a retiree’s annual income. Therefore, to have the financial independence to enjoy your retirement to the fullest, you will need to supplement your retirement income through personal savings. For most people, tax-deferred plans like the CNA 401k Plan (“401k Plan” or the “Plan”), may be the best way to accumulate personal savings. The 401k Plan is sponsored by Continental Casualty Company for the benefit of its eligible employees. The Plan is designed to make saving for your future easy and convenient. You choose how much to contribute and how to invest your money among the Plan’s investment funds. Although the Plan is designed for long-term savings, loans and limited withdrawal options are available. Best of all, when you save through the Plan, the Company contributes extra money to your account. The time to begin planning your financial future is now. Although it is never too late to start saving, the earlier you begin, the longer your money has to grow—and that means a greater opportunity for future income. (CNA 401k Plan Summary Plan Description – eff. 1/1/2020) Your 401k Plan, at a Glance Here is a quick look at all the ways that the Plan makes it easier to save for your future! CNA 401k Plan Basic Contributions Employee Contributions Company Match Contributions Company contributes 5% of You may contribute from 1% to Company matches $1.00 on Total Pay each pay period 50% of Base Pay on a before-tax, every dollar you save each pay (whether or not you are Roth 401k, or period, up to 6% of Base Pay. contributing to after- tax basis. the Plan). Contributions vest at the rate Contributions made on a before- Contributions vest at the rate of 20% for each year of service. tax basis reduce your current of 20% for each year of service. taxes. Not dependent upon the Employees who attain age 50 by Company’s financial the end of the year may also performance. make “catch-up” contributions any time during the year. For purposes of the 401k Plan: • “Base Pay” for employee contributions and Company Match contributions includes regular base salary, overtime, any paid sales incentives, and tax-deferred contributions made to the Plan. It also includes other before-tax contributions such as health, spending account, and transit account contributions. It does not include any bonuses, commissions, other forms of incentive compensation, miscellaneous pay, overseas allowances, short term disability pay, worker’s compensation benefits, benefits received under an insurance program, purchased paid-time off (PTO Buy), any lump-sum payments of unused paid time off (PTO) days, severance or separation payments, and after April 1, 2013, all payments made pursuant to the Supplemental Unemployment Benefit Plan. • “Total
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