401(k) Savings Plan
PLAN HIGHLIGHTS The Young & Rubicam Brands 401(k) Savings Plan (“Plan’) is designed to offer you an avenue to better prepare, save and invest for your future. ELIGIBILITY / ENROLLMENT You are immediately eligible to participate in the plan if you are a regular full-time or part-time employee, working at least 20 hours per week. The plan is administered by Vanguard. You can begin participating in the plan by calling a Vanguard representative at 1-800-523-1188 to enroll. YOUR PLAN CONTRIBUTIONS As a plan participant, you may make plan contributions on a pre-tax and/or after-tax basis through convenient payroll deductions. Pre-tax contributions can help reduce your current taxes. Your contributions plus their earnings remain untaxed until you begin withdrawing funds from the plan. Generally, you may contribute up to 50% of your base salary on a pre-tax basis, subject to certain limits set by the Internal Revenue Service (IRS). If you are “highly compensated,” as defined by the IRS, the percentage of your salary you may contribute to the Plan is further limited. COMPANY CONTRIBUTIONS One of the biggest advantages of the plan is the company matching contributions. Young & Rubicam Brands currently matches your contributions dollar for dollar, up to 5% to a maximum of $8,000. These matching contributions are made annually provided you are employed on December 31st of the year for which a match is due. You become eligible for matching contributions once you reach your one year anniversary with a Y&R company. From this point forward your contributions are matched. Employees who terminate prior to December 31st are not eligible for that year’s matching contribution. Matching contributions will be made in cash, and invested according to your investment elections on file for your payroll contributions. The Company reserves the right to amend, suspend or terminate its matching contribution component at any time, without notice. AGE 50 CATCH-UP PROVISION Employees who are age 50 on or before 12/31 of this year can contribute additional pre-tax money beyond the IRS maximum annual pre-tax limit. Year Catch-Up Contribution $5,000 IRS Maximum Pre-Tax Contribution $15,500 IRS Pre-Tax Maximum With Catch-Up Contribution $20,500 Annual Compensation Limit $225,000
2008
Please note: employees must contribute up to the IRS or plan maximums to be eligible for the additional Catch-up contribution. To this end, the percentage employees can contribute to the plan on a pre-tax basis is 50% and is subject to the IRS limit (different limits may apply to Highly Compensated Employees).
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VESTING You are always 100% vested (i.e., you have full ownership of) your contributions that you made to the Plan. If you were hired after January 1, 2003, you become 100% vested in the matching contributions and related earnings after three years of employment with Young & Rubicam Brands or another WPP Company. Prior to that time you remain 0% vested in matching contributions. You decide how your contributions are invested, choosing one or more of the available investment options. Your investment elections are made in whole percentages. Information about available investment options including prospectuses, current prices, annualized total returns and various Fund objectives, may be obtained by calling 1-800-523-1188 or by visiting the Vanguard website at www.vanguard.com ROLLOVERS INTO THE YOUNG & RUBICAM BRANDS PLAN FROM A PREVIOUS EMPLOYER You can transfer money into your Young & Rubicam Brands 401(k) from qualified savings plans of other non WPP employers. This transaction is called a “rollover.” You may request a rollover at any time. To roll over money into the Plan, return a completed Qualified Rollover Form with your rollover check, distribution statement, and qualified plan letter as indicated on the Deposit Form. Please contact Vanguard’s Participant Service Associate 1-800-523-1188 to request a Qualified Rollover Form. 401(k) LOANS While it may be best to leave your 401(k) assets intact for your future, you can take a loan from the Plan should the need arise. You can take up to 60 months to repay a general purpose loan and 120 months to repay a home purchase loan for your primary residence. The interest you pay (currently based on a rate of Prime + 1%) is added to your account balance. Subject to special rules, the amount of your loan cannot exceed the lesser of $50,000 (subject to reduction if you have previously borrowed under the Plan) or 50% of your account balance. Please be advised, that taking loans from the Plan could decrease the overall earning power of your Plan assets. Also, if you take a loan, you will be charged a loan processing fee of $40 which will be deducted from your loan proceeds and an annual $25.00 loan maintenance fee which will be deducted from your account balance. IN-SERVICE WITHDRAWALS Under the Plan, you are limited to two in-service withdrawals per calendar year of your after-tax contributions. Any in-service withdrawal of your pre-tax dollars prior to age 59½ are subject to IRS limitations and will result in a suspension from the Plan for six months. Furthermore, you will be subject to a 10% penalty for withdrawals prior to age 59½. Your pre-tax contributions, plus the investment earnings on both your pre-tax and after-tax savings are taxable when you receive your in-service withdrawal or distribution. PLAN DISTRIBUTIONS You may receive the full value of your Plan account in a lump sum if you leave the Company. In the event of your death, your beneficiary will receive payment of the unpaid balance of your account. If your account balance is under $5,000, your balance will be automatically rollover over to a Vanguard Individual Retirement Account (IRA), if you do not make an election within 30 days from the end of the month in which you terminate. If your account balance is $5,000 or more, you can elect to defer it to a later date. Distributions are required to begin at age 70½. Contact a Participant Service Associate at 1-800-523-1188 to request a termination packet.
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BENEFICIARY DESIGNATION If you are married, your sole beneficiary under the Young & Rubicam Brands 401(k) is your spouse. To name a beneficiary other than your spouse, you must provide written, notarized spousal consent. To change your beneficiary under the Plan, you must complete and submit a Designation of Beneficiary Form. You can contact a Participant Service Associate at 1-800-523-1188 to request Designation of Beneficiary Form or print a form from the Forms Library section on www.yrbenefits.com CHANGES TO YOUR 401(k) ACCOUNT Since one of the features of the Plan is daily valuation, you can make changes to your account on a daily basis by calling 1-800-523-1188 and speaking with a Participant Service Associate or accessing the automated VOICE Network or the Participant On-line (POL) Internet service. You can initiate fund transfers, change your savings rate or change the investment direction for new contributions. When transferring from one investment option to another or changing the investment direction for new contributions, the transaction will be effective the day you call, if you make your request before 4:00 p.m. If you request the transaction after 4:00 p.m., it will be effective the next business day. When enrolling in the Plan or changing your savings rate, the change will take effect on the next pay period that is administratively possible, depending on when you call and when payroll is processed. THE 401(k) PLAN SERVICE CENTER This center was established exclusively to serve your investment needs. Participant Service Associates are available to answer your questions Monday through Friday, 8:30 a.m. to 9:00 p.m. eastern time, on all business days when the New York Stock Exchange is open. Through the automated telephone VOICE Network, you can obtain access to your account balances virtually 24 hours a day. To make an automated transaction or to speak with a Participant Service Associate, just call 1-800-523-1188. You should have your Social Security Number and Personal Identification Number (PIN) handy to gain access to your account. Calls made from rotary telephones will be transferred to Associates automatically. Spanish Speaking Associates: 1-800-828-4487 (Monday through Friday 8:30 a.m. to 9 p.m. (EST) International Calls: 1-610-669-1000. You can call collect to speak with a Participant Service Associate, Monday through Friday 8:30 a.m. to 9 p.m. (EST). Telecommunications Device for the Deaf (TDD): 1-800-523-8004 Monday through Friday, 8:30 a.m. to 9 p.m. (EST)
Young & Rubicam Brands Flexible Benefits: This brochure is not a complete description of the 401(k)/Savings Plan offered by Young & Rubicam Brands. This is only a summary and is not a substitute for the official Plan documents. The provisions of the official Plan documents and of applicable law will govern in the event of any inconsistency between those provisions and the provisions of this brochure. For a more detailed summary of certain important information and your Statement of ERISA Rights under the 401(k)/Savings Plans, you should contact the Corporate Benefits Department. The Company, acting through its Board of Directors of Young & Rubicam Brands, retains the right to amend, suspend or terminate any or all of the Plans described in this brochure at any time for any reason, without notice. Further, the Company reserves full discretion in interpreting eligibility and qualifications under any of its Plans. Enrollment in this Plan is not a guarantee of employment between the employee and the Company. 8/2007 Page 3 of 3