Retirement Savings Plan 401(k)
Congratulations We are pleased to extend to you an important opportunity to participate in the MPS Group 401(k) Retirement Savings Plan. The Plan is an important part of your benefits and can play an extremely important role in helping you build your savings and work toward a financially secure future. Remember, you may need your savings to last 20 or 30 years – or even longer – after you draw your last paycheck. The Plan offers a number of attractive features that can help you build your retirement savings, including: • • • Automatic savings – you make contributions to your Plan account every time you get paid through automatic payroll contributions. It’s the easiest way to save. Company contributions – for every dollar that you contribute to the Plan, MPS Group may contribute an additional percentage. Reduced taxes – by making contributions to the traditional 401(k) before your paycheck is taxed, you lower the amount on which your paycheck is taxed. You also have the option to make contributions to the Roth 401(k) after your paycheck is taxed, which is advantageous if you anticipate your tax rate will be higher when you take a distribution. Future savings growth – earnings on the money you earn may compound tax-deferred (traditional 401(k)) or tax-free (Roth 401(k)). For the traditional 401(k), taxes on all contributions and earnings are due only upon withdrawal; for the Roth 401(k), taxes are due on company contributions only upon withdrawal (if you take a “qualified distribution”, any earnings are distributed on a tax free basis).
•
Getting Started There are no secrets to saving and investing for the future. The most important thing is to have a Plan, and then take the first step. So, take a few minutes to acquaint your self with the Plan – and then take that first step by enrolling today. Eligibility You are eligible to enroll in the MPS Group, Inc. 401(k) Plan on the 1st day of the month following three consecutive months of service and a minimum of 375 hours worked. Enrollment To enroll or make changes simply: • Log onto Merrill Lynch Benefits OnLine at www.benefits.ml.com • Or call (800) 228-4015 and speak with a Merrill Lynch representative By logging on or calling Merrill Lynch you can obtain information that will help you: • Understand how the Plan works and how it is a valuable savings and investment tool • Learn about the investment options offered through the Plan • Estimate how your savings might grow when you participate in the Plan
401k Enrollment Guide
January 2007
Employee Contributions You can authorize an amount up to 100% of your eligible compensation (as described in the Plan), to be deducted from your paychecks on a pre-tax traditional 401(k) or post-tax Roth 401(k) basis, up to the IRS maximum dollar amount. The maximum employee contribution is $15,500 for 2007. The IRS maximum will increase in $500 increments for inflation. (In order to receive the maximum company matching contribution, you must contribute at least 5% of your compensation during the plan year.) Catch-Up Contributions If you are age 50 or older during the calendar year and make the maximum allowable pre-tax or post-tax contribution to your Plan, you are entitled to make an additional “catch-up contribution” to help make up for having contributed less earlier in your career. The maximum catch-up contribution is $5,000 for 2007. If you are currently contributing to the Plan and want to increase your contribution, access Benefits OnLine at www.benefits.ml.com. Company Matching Contributions MPS Group will match up to 50% of the first 5% of all participants’ eligible compensation deferred within a match year. Participants must meet the following criteria to be eligible to receive a company matching contribution. • • • Employee contributions made to 401(k) plan within the match year Active employee as of December 31st of the match year Consultants with at least 40 billable hours in December of the match year
Vesting Your right to your account balance is called vesting. Company matching contributions will vest 25% annually for participants with less than 4 years of service. Matching contributions are 100% vested for participants with more than 4 year of service with the Company. Employee contributions are always 100% vested. Years of Service Less than 1 1 2 3 4 Vesting Percentage 0% 25% 50% 75% 100%
Rollovers into the Plan Rollovers from another qualified plan or of contributions from a 403(b) tax-deferred arrangement may be accepted by the Plan. Savers Tax Credit If you make contributions to this retirement plan, you may be eligible to receive a tax credit of up to 50% on the first $2,000 you contribute to the Plan. This “saver’s tax credit” can directly reduce the amount of federal income tax you pay each year. The amount of the credit depends on several factors, including the amount you contribute to the Plan, your adjusted gross income for the year, and your tax filing status. However, if you qualify, this credit is allowed in addition to the other tax benefits you may receive by contributing to the Plan. For more information or to see if you qualify for this tax-saving feature, consult a tax advisor.
401k Enrollment Guide January 2007
Investment Options The Plan contains 15 individual investment options, including stable value, bond and stock funds, collective trusts, as well as MPS Group common stock. You can simplify this process by allocating all or part of your contributions to one of three GoalManager portfolio models. These are built using funds from your investment menu and range from relatively low-risk Conservative model, to the Aggressive model, which may be more appropriate for those who are more comfortable with risk. The chart below lists the individual investments available through the Plan, along with their ticker symbols (which can be used to track their performance in print and online publications), and the investment styles followed by the fund managers. Investment Menu
Fund Name
Calvert Income Fund Davis New York Venture Fund Federated Kaufmann Fund John Hancock US Global Leaders Merrill Lynch Equity Index Trust Tier Merrill Lynch Mid Cap Value Fund Merrill Lynch Retirement Preservation Trust Merrill Lynch Small Cap Value Fund, Inc Merrill Lynch U.S. Government Fund Pioneer Oakridge Oakmark Equity and Income Fund Seligman Communications & Information Fund Alliance Bernstein International Value Fund VanKampen Growth and Income Fund MPS Group Inc Stock
Investment Category
Corporate Debt Large-Cap Value Mid-Cap Growth Large Growth Index Mid Cap Value Stable Value Small Cap Value High Current Yield Small Cap Balanced Science & Technology International Multi-Cap Value
Objective
Income Growth Growth Growth Growth and Income Growth and Income Capital Preservation Growth Income Growth Growth and Income Growth Growth Growth and Income
Ticker Symbol
CFICX NYVTX KAUAX USGLX N/A MARFX N/A MASPX MAFSX ORIGX OARBX SLMCX ABIAX ACGIX MPS
Goal Manager Model Fund Name
Stable Value Investment Option Merrill Lynch Retirement Preservation Trust Fixed Income/Bond Calvert Income Fund Merrill Lynch U.S. Government Fund Equity/Stock Federated Kaufmann Fund John Hancock US Global Leaders Merrill Lynch Mid Cap Value Fund Merrill Lynch Small Cap Value Fund, Inc Pioneer Oakridge Small Cap Growth Alliance Bernstein International Value Fund Van Kampen Growth & Income Fund 5% 7% 4% 4% 4% 12% 6% 3% 2% 16% 16% 6% 20% 8% 5% 4% 28% 24% 25% 28% 16% 14% 5% 27% 11%
Conservative
Moderate
Aggressive
401k Enrollment Guide
January 2007
Loans You will be permitted to borrow against your Plan account balance, subject to certain maximum/minimum limitations. The maximum amount you may borrow is the lesser of (1) $50,000 minus your highest outstanding loan balance from the Plan during the past year or, (2) 50% of your account balance, minus any outstanding loan balance you may have. You may have one loan outstanding at any time. A non-refundable loan application fee (currently $40) will apply to each loan you take. You can repay each loan over a five-year period in substantially equal installments according to the applicable repayment schedule. You can repay a loan over a period of 15 years if it is for the purchase of your principal residence. Withdrawals While the Plan is intended to serve you principally as a retirement savings mechanism, you can withdraw funds prior to your separation from service if you experience an extreme financial hardship. A financial hardship, as defined by the government, can include: • • • • Buying a house Paying for a child’s college education Paying certain medical expenses Preventing eviction from a foreclosure on your home
Distributions You may receive a distribution of your account balance following your separation from service due to: • • • Retirement Death Termination of employment
You may also receive a distribution upon your total and permanent disability. With certain exceptions, a distribution can be directly rolled over from the Plan to an IRA or another employer’s plan that accepts rollovers, which can provide continued deferral of taxes. Managing Your Account You will receive a personalized account statement every quarter. The statement shows your account balance as well as any contributions and investment gains or losses credited to your account during the reporting period. For your convenience, account statements and confirmations are now available online in place of receiving hardcopy mailings. Log on to Benefits OnLine today at www.benefits.ml.com to choose online delivery. You will receive an e-mail notification each quarter when your statement and/or confirmation is available online.
There may be tax consequences, including a 10% tax penalty, if you make a withdrawal prior to reaching age 59 ½. Such a withdrawal would also require you to stop making contributions to the Plan for a period of at least six months following receipt of the hardship withdrawal.
This material is only a general outline of the Plan. You are encouraged to read the Summary Plan Description to obtain more detailed information regarding the Plan’s operation. This document provides you information you need to make educated decisions about joining the Plan and maintaining a Plan account. If a provision described in this outline differs from the applicable provision of the Plan documents, the Plan documents prevail.
401k Enrollment Guide
January 2007