Page 42 - Brady Corporation 2021 Annual Benefits Connecticut
P. 42
BRADY MATCHED 401(k) PLAN
AUTOMATIC ENROLLMENT NOTICE
INTO A SAFE HARBOR 401(k) PLAN
DATE: Updated - Effective February 1, 2018
TO: All Eligible Employees of Brady Corporation
FROM: Plan Administrator
RE: Automatic Enrollment in the Brady Matched 401(k) Plan
To promote the ability to adequately save for retirement, we have designed our Plan to make saving as convenient
as possible for all our Employees. This notice is to advise you of our Plan’s provisions regarding automatic
deferral rates which will not change as they are currently structured and your rights and obligations under the Plan.
When you become eligible to participate in the Plan after meeting the Plan’s age and service requirements, a fixed
amount is automatically taken from your pay unless you elect otherwise. This is known as an “Automatic
Contribution Arrangement.” At your time of hire, you received a notice that explains this feature. You also received
information about your rights to alter those amounts including how and when you may amend the amount of
automatic deferral. This election is effective for your first pay period and all subsequent pay periods, unless you
elected otherwise at the time you were hired by accessing the Fidelity Service Center website
netbenefits.com or calling a Fidelity Representative at 1-800-835-5095 and making a deferral change. Such
change must have been made before you received Compensation for the first pay period after you
become eligible to defer. Any election you file after that tim e will be effective as soon as administratively feasible.
This Automatic Contribution Arrangement is effective as of January 1, 2014 and applies to employees:
• Who are eligible to make Elective Deferrals, but who have not affirmatively elected to make contributions
to the Plan or to not contribute to the Plan.
The Automatic Deferral Amount is 5% of Compensation and designated as pre-tax Elective Deferral; however, for
employees hired on or after January 1, 2014, the Automatic Deferral Amount was designated as Roth Elective
Deferral. This deferral amount (5%) will automatically increase for all Employees who are eligible for automatic
enrollment unless they elect not to have automatic increases apply. Unless you elect otherwise within the time
period communicated by the Employer, your Elective Deferrals will automatically increase to:
• 6% of Compensation for the Plan Year beginning after the Plan Year containing the anniversary
of your participation in the Plan. In Year 3, the rate of Elective Deferrals shall increase to 7% of
Compensation. In Year 4, the rate of Elective Deferrals shall increase to 8% of Compensation. In
Year 5, the rate of Elective Deferrals shall Increase to 9% of Compensation. In year 6, the rate of
Elective Deferrals shall Increase to 10%.
• These automatic increases will occur on the first day of each Plan Year.
This Automatic Contribution Arrangement qualifies as a Qualified Automatic Contribution Arrangement (QACA).
Within a reasonable period prior to the beginning of each Plan Year, you will receive a notice explaining your rights
and obligations under the arrangement. This notice will explain your rights under the arrangement to elect not to
have Elective Deferrals made on your behalf or to elect to have contributions made in a different amount and how
contributions made under the automatic contribution arrangement will be invested in the absence of any investment
election by you. You will be provided with a reasonable period of time after receipt of this notice and before the first
Elective Deferral is made to make the election with respect to contributions and investments.
You are permitted to make a “permissible withdrawal” of equal to the amount of Elective Deferrals made with
respect to the first payroll period to which the eligible contribution arrangement applies to you and any succeeding
payroll period beginning before the effective date of the election (and is adjusted for earnings or losses attributable
to those contributions). The amount withdrawn is included in your gross income in the year of the distribution and is
not subject to the 10% premature distribution penalty. Any Employer Matching Contribution associated with the
return of these Elective Deferrals is either forfeited or subject to other treatment prescribed by the Internal Revenue
Service (“IRS”). A “permissible withdrawal” is any withdrawal from an EACA that is made pursuant to your election
42
QB\50221701.1
AUTOMATIC ENROLLMENT NOTICE
INTO A SAFE HARBOR 401(k) PLAN
DATE: Updated - Effective February 1, 2018
TO: All Eligible Employees of Brady Corporation
FROM: Plan Administrator
RE: Automatic Enrollment in the Brady Matched 401(k) Plan
To promote the ability to adequately save for retirement, we have designed our Plan to make saving as convenient
as possible for all our Employees. This notice is to advise you of our Plan’s provisions regarding automatic
deferral rates which will not change as they are currently structured and your rights and obligations under the Plan.
When you become eligible to participate in the Plan after meeting the Plan’s age and service requirements, a fixed
amount is automatically taken from your pay unless you elect otherwise. This is known as an “Automatic
Contribution Arrangement.” At your time of hire, you received a notice that explains this feature. You also received
information about your rights to alter those amounts including how and when you may amend the amount of
automatic deferral. This election is effective for your first pay period and all subsequent pay periods, unless you
elected otherwise at the time you were hired by accessing the Fidelity Service Center website
netbenefits.com or calling a Fidelity Representative at 1-800-835-5095 and making a deferral change. Such
change must have been made before you received Compensation for the first pay period after you
become eligible to defer. Any election you file after that tim e will be effective as soon as administratively feasible.
This Automatic Contribution Arrangement is effective as of January 1, 2014 and applies to employees:
• Who are eligible to make Elective Deferrals, but who have not affirmatively elected to make contributions
to the Plan or to not contribute to the Plan.
The Automatic Deferral Amount is 5% of Compensation and designated as pre-tax Elective Deferral; however, for
employees hired on or after January 1, 2014, the Automatic Deferral Amount was designated as Roth Elective
Deferral. This deferral amount (5%) will automatically increase for all Employees who are eligible for automatic
enrollment unless they elect not to have automatic increases apply. Unless you elect otherwise within the time
period communicated by the Employer, your Elective Deferrals will automatically increase to:
• 6% of Compensation for the Plan Year beginning after the Plan Year containing the anniversary
of your participation in the Plan. In Year 3, the rate of Elective Deferrals shall increase to 7% of
Compensation. In Year 4, the rate of Elective Deferrals shall increase to 8% of Compensation. In
Year 5, the rate of Elective Deferrals shall Increase to 9% of Compensation. In year 6, the rate of
Elective Deferrals shall Increase to 10%.
• These automatic increases will occur on the first day of each Plan Year.
This Automatic Contribution Arrangement qualifies as a Qualified Automatic Contribution Arrangement (QACA).
Within a reasonable period prior to the beginning of each Plan Year, you will receive a notice explaining your rights
and obligations under the arrangement. This notice will explain your rights under the arrangement to elect not to
have Elective Deferrals made on your behalf or to elect to have contributions made in a different amount and how
contributions made under the automatic contribution arrangement will be invested in the absence of any investment
election by you. You will be provided with a reasonable period of time after receipt of this notice and before the first
Elective Deferral is made to make the election with respect to contributions and investments.
You are permitted to make a “permissible withdrawal” of equal to the amount of Elective Deferrals made with
respect to the first payroll period to which the eligible contribution arrangement applies to you and any succeeding
payroll period beginning before the effective date of the election (and is adjusted for earnings or losses attributable
to those contributions). The amount withdrawn is included in your gross income in the year of the distribution and is
not subject to the 10% premature distribution penalty. Any Employer Matching Contribution associated with the
return of these Elective Deferrals is either forfeited or subject to other treatment prescribed by the Internal Revenue
Service (“IRS”). A “permissible withdrawal” is any withdrawal from an EACA that is made pursuant to your election
42
QB\50221701.1
