Capital Accumulation Plan (CAP)
| Years of Service | Company Contribution (% of Eligible Earnings) |
|---|---|
| Less than 10 | 3% |
| 10 but less than 20 | 4% |
| 20 but less than 30 | 5% |
| 30 or more | 6% |
For help with investment and contribution decisions, take advantage the Edelman Financial Engines CAP tool by going to www.NetBenefits.com (Navigate to Edelman Financial Engines (EFE) > Select Your Plan > CAP Tool).
Key Features
- Contributions. Each payroll period, the company puts money in your CAP account. In general, you don’t contribute to this plan. However, you may roll over savings from another eligible employer plan.
- Vesting. Once you complete three years of service (counting from your date of hire), you become vested in your CAP account, which means it’ll be yours to keep, even after your employment ends.
- Flexibility. You may change your investment elections at any time.
- Portability. When you leave the company, you can take your account balance with you or leave it in the plan (if your CAP account is worth more than $1,000).
Making Investment Decisions
As with the 401(k) Savings Plan, you’ll need to choose how you invest your account. The CAP offers the same investment options as the 401(k) Savings Plan.
To help achieve long-term financial security, you should carefully consider the benefits of a well-balanced and diversified investment portfolio. No single approach works for everyone, so seek financial help if you need support making investment allocation decisions.
When and How Benefits Are Paid
Depending on the value of your CAP account when your employment ends, you may be able to leave your balance in your account, take it as a total or partial lump sum or receive it in automatic monthly or annual cash installments. If the value of your account is:
- More than $1,000, you may request an immediate distribution or choose to leave your funds in the plan until a later date. However, you must begin to receive payment by April 1 following the year you turn or leave FMP, whichever is later. If you leave your balance in the plan, your account will continue to receive investment earnings and you can continue to manage your account investments.
- $1,000 or less, it will be distributed to you automatically as soon as possible after you leave.
If you elect monthly or annual cash installments, you may cancel or change that election at any time and then elect a total or partial lump sum. You may apply for a distribution or a withdrawal by contacting Fidelity.
Note: While you are still working for the company, you may make a one-time election to withdraw all or part of your CAP account if you are 59½ or older.
A Word About Taxes
Payments from the CAP are taxable as ordinary income at the time you receive them. In addition, if you receive a lump‑sum distribution and you’re younger than 59½, an additional 10% tax penalty may apply. If you wish to defer paying taxes on a lump‑sum payment, you can roll over (transfer) the distribution to an IRA or another eligible retirement plan. You cannot roll over required minimum distributions.
Don’t Forget!
Elect your beneficiary(ies) using this form so that your benefits are paid out according to your wishes in the event of your death.
Did you know?
“The most fundamental decision of investing is the allocation of your assets: How much should you own in stocks? How much should you own in bonds? How much should you own in cash reserve?”
Jack Bogle, Founder of Vanguard
Funding Your Retirement Quiz
Map out your retirement income. Take this quick, confidential quiz to test your knowledge on retirement funding and how you’re doing building yours.