BE CONNECTED TO YOUR FUTURE. The Hearst Corporation Employee Savings Plan SUMMARY PLAN DESCRIPTION

Transcription

1 BE CONNECTED TO YOUR FUTURE The Hearst Corporation Employee Savings Plan SUMMARY PLAN DESCRIPTION

2 Contents THE HEARST CORPORATION EMPLOYEE SAVINGS PLAN...1 LIFE EVENTS AND THE SAVINGS PLAN...1 WHO IS ELIGIBLE...3 WHEN PARTICIPATION BEGINS...3 EMPLOYEE CONTRIBUTIONS (BEFORE-TAX OR AFTER-TAX)...3 ELIGIBILITY FOR MATCHING CONTRIBUTIONS...3 ELIGIBILITY FOR AUTOMATIC COMPANY CONTRIBUTIONS...3 HOW TO ENROLL...3 CONTRIBUTIONS TO THE PLAN...4 BEFORE-TAX CONTRIBUTIONS...4 AFTER-TAX CONTRIBUTIONS...5 AGE 50+ CATCH-UP CONTRIBUTIONS...5 CHANGING YOUR CONTRIBUTIONS...5 COMPANY MATCHING CONTRIBUTIONS...5 AUTOMATIC COMPANY CONTRIBUTIONS...6 ROLLOVER CONTRIBUTIONS...6 CONTRIBUTIONS FOLLOWING MILITARY LEAVE OF ABSENCE...7 LIMITATIONS...7 YOUR INVESTMENT CHOICES...7 INVESTMENT INFORMATION...8 CHANGING YOUR INVESTMENTS...8 KEEPING TRACK OF YOUR ACCOUNT...8 WHEN YOU ARE VESTED...9 YOUR CONTRIBUTIONS...9 COMPANY CONTRIBUTIONS...9 ACCESS TO YOUR ACCOUNT WHILE YOU ARE WORKING...10 WITHDRAWALS...10 LOANS...12 DISTRIBUTION OF YOUR ACCOUNT...13 RETIREMENT...14 DISABILITY...14 TERMINATION OF EMPLOYMENT...14 DEATH...14 REQUIRED DISTRIBUTION FROM THE PLAN...15 PAYING TAXES ON YOUR DISTRIBUTION...15 BENEFICIARY...15 FEDERAL INCOME TAX WITHHOLDING...16 The Hearst Corporation Employee Savings Plan SPD (8/12) i

3 DIRECT ROLLOVER OF A DISTRIBUTION...16 STATE AND LOCAL INCOME TAXES...16 BREAK IN SERVICE/REEMPLOYMENT...16 SPECIAL PLAN PROVISIONS...17 OTHER IMPORTANT INFORMATION...20 APPLYING FOR PAYMENT...21 IF YOUR APPLICATION IS DENIED...21 AMENDMENTS TO THE PLAN...22 IF THE PLAN TERMINATES...22 PROTECTION OF YOUR BENEFITS...22 QUALIFIED DOMESTIC RELATIONS ORDERS...22 TOP-HEAVY RULES...23 REPORTS ON THE PLAN...23 NO GUARANTEE OF EMPLOYMENT...23 ADMINISTRATIVE INFORMATION...23 STATEMENT OF RIGHTS UNDER ERISA...24 The Hearst Corporation Employee Savings Plan SPD (8/12) ii

4 The Hearst Corporation Employee Savings Plan Most of us look forward to our retirement, and by preparing now, you will help provide for a financially secure retirement. Hearst Corporation (the Company ) has designed The Hearst Corporation Employee Savings Plan (the Savings Plan or the Plan ) to help you save for your future. Under this Plan, you can contribute, through payroll deductions, a percentage of your salary on a beforetax basis and/or an after-tax basis. By saving on a before-tax basis, you are saving with money that is taxdeferred. To add to your savings, the Company will make a contribution to your account based on the amount you contribute. You may choose from a range of investment options. Each of these options has a different level of risk, and together the options cover a broad spectrum of investment objectives, thereby giving you an opportunity to have control over your investments. Most importantly, your before-tax contributions, the Company contributions, and your investment earnings are not taxed until you withdraw them from the Plan. Under the terms of the Plan, both your contributions and the Company s contributions are held in accordance with a trust agreement between Hearst Corporation and T. Rowe Price Trust Company (T. Rowe Price). This booklet describes The Hearst Corporation Employee Savings Plan as of April 1, 2012, and generally applies to eligible employees who are actively employed on or after that date. If you have any questions concerning your benefits under The Hearst Corporation Employee Savings Plan, please do not hesitate to contact the Employee Benefits Department at This booklet is intended to provide you with easy-to-understand explanations of certain features of The Hearst Corporation Employee Savings Plan. It does not include the complete details of the Plan. These are contained in the official Plan document, which legally governs the administration of the Plan. Every effort has been made to ensure the accuracy of the information contained in this booklet. However, if there is a conflict or difference between what is written here and the Plan document, the Plan document will always rule. Hearst Corporation intends to continue the Savings Plan; however, Hearst necessarily reserves the right to amend, change, modify, or terminate the Plan at any time and for any reason. This booklet is not an offer or contract of continued employment with the Company or any of its subsidiaries or affiliates. Life Events and the Savings Plan The Hearst Corporation Employee Savings Plan is a partnership between you and the Company one that begins as soon as you enroll and continues until you have received your total account balance. During that time, the features of the Savings Plan continue to meet your changing needs. The following chart provides a brief description of the effect of certain life events on the Plan. Please read this booklet for more detailed information about your benefits. The Hearst Corporation Employee Savings Plan SPD (8/12) 1

5 Event Plan Highlight When you join Hearst If you are a salaried employee or an hourly employee who is expected to work at least 1,000 hours in your first year of Company employment, you are eligible to enroll in the Plan at any time on or after your first day of work. If you are a part-time hourly employee who is expected to work less than 1,000 hours in your first year of Company employment, you will be eligible to contribute to the Plan after completing one year of service. (See When Participation Begins on page 3). When you complete one year of service If you contribute to the Plan, the Company will begin making matching contributions as soon If you get married If you are divorced If you are sick or injured and cannot work as you complete one year of service. If you are a part-time hourly employee who is expected to work less than 1,000 hours in your first year of Company employment, you will be eligible to contribute to the Plan and receive matching contributions after completing one year of service. If you join the Company on or after January 1, 2011, you may also be eligible for an automatic Company contribution, depending on the unit you work for. Your spouse automatically becomes your beneficiary and will receive any vested account balance remaining in the Plan when you die. You can designate another beneficiary with your spouse s written consent. Your spouse is no longer your automatic beneficiary. If you are permanently disabled, you can take a distribution from your account or leave the money in the Plan until you reach age 70½. The 10% penalty tax for withdrawals before age 59½ will not apply. If you leave Hearst before you retire You can take a distribution of your vested account balance or, if your account balance is more than $1,000, leave the money in the Plan until you reach age 70½. If you take your distribution before you reach age 59½, you may have to pay a 10% penalty tax, unless you make a direct rollover. If you retire You can take a distribution of your vested account balance. If you retire at age 55 or later, the 10% penalty tax will not apply. If you die Your beneficiary will receive your full account balance. The 10% penalty tax will not apply to the distribution. The Hearst Corporation Employee Savings Plan SPD (8/12) 2

6 Who Is Eligible You are eligible to participate in the Plan if you are an eligible employee of Hearst Corporation or its designated subsidiaries and affiliated companies. You are not eligible if you are: An employee covered by another defined contribution plan that provides a benefit for the same period of service as this Plan An employee covered by a collective bargaining agreement A leased employee An employee not on a United States payroll Effective January 1, 2010, the Hearst-Argyle Television, Inc. Employee Savings Plan ( HTV Savings Plan ) was merged into the Plan. All employees who were eligible to participate in the HTV Savings Plan immediately before the merger are eligible to participate in the Plan on the merger date. When Participation Begins Employee Contributions (Before-Tax or After-Tax) If you are a salaried employee or an hourly employee who is expected to work at least 1,000 hours in the 12-month period beginning on your date of hire, you may enroll in the Plan at any time on or after your first day of work as an eligible employee. You can participate as soon as administratively possible, following your date of hire. If you are an hourly employee who is expected to work less than 1,000 hours in the 12-month period beginning on your hire date, you are eligible to enroll in the Plan after you have been employed for one year, provided you complete at least 1,000 hours of service during that 12-month period. Otherwise, you may enroll at any time after the first calendar year in which you complete at least 1,000 hours of service. You can participate as soon as administratively possible following the date you complete a year of service. Eligibility for Matching Contributions If you contribute to the Plan, the Company will begin making matching contributions after you complete one year of service. A year of service means the completion of at least 1,000 hours of service during the 12 months immediately following your date of hire, or during any subsequent calendar year. For salaried employees, hours of service are credited on an equivalent basis, and you will be credited with 190 hours of service each month in which you work at least one hour of service. Eligibility for Automatic Company Contributions If you work for a unit whose employees participate in The Hearst Corporation Retirement Plan and you are not eligible to participate in that plan because you became an active employee or returned to active employment after December 31, 2010, the Company will make an automatic contribution on your behalf after you complete one year of service and you reach age 21. You must be an active employee on the last day of the calendar year to receive this contribution. You do not need to make any contributions to receive this Company contribution. How to Enroll T. Rowe Price (the Plan recordkeeper) will mail a personal identification number (PIN) and a Savings Plan Enrollment Kit to your home. Reviewing the information in the Enrollment Kit will help you decide: How much you want to contribute How to choose your investments The Hearst Corporation Employee Savings Plan SPD (8/12) 3

7 To enroll, you can either: Enroll online at the T. Rowe Price myretirementplan website that you can access at rps.troweprice.com Call the T. Rowe Price Plan Account Line at on business days between 7 a.m. and 10 p.m., Eastern Time To complete your enrollment, it is important to fill in the Designation of Beneficiary Form and return it to the Employee Benefits Department. You must complete the Designation of Beneficiary Form for any automatic Company contributions you may be eligible to receive, even if you decide not to contribute to the Plan. If you are married, your spouse, as defined by federal law, is automatically your beneficiary, unless you designate someone else with your spouse s written, notarized consent (please see Beneficiary on page 15, for more information). Your contributions begin as soon as administratively possible following your enrollment. Contributions to the Plan You may contribute to the Plan 2% to 40% of your compensation (as defined below) on a before-tax basis, and/or 2% to 40% on an after-tax basis. Your total contribution cannot exceed 40% of your compensation, and your contribution rate(s) must be a whole percentage. Your contributions will continue until you make a change or discontinue contributions. There is no need to enroll each year. Your compensation, as defined in the Plan, includes your salary or wages, commissions, overtime, and regular bonuses that are paid to you, including before-tax deductions used to pay for any benefits sponsored by Hearst, but excluding any other compensation of any nature paid by the Company. Federal tax law limits the annual compensation on which you may make contributions. See Limitations on page 7 for more information. Before-Tax Contributions Before-tax contributions are deducted from your compensation before federal and, in most cases, state and local income taxes are withheld. Since the amount you contribute to the Plan on a before-tax basis will not appear on your W-2 form as taxable income, you do not pay income tax on your before-tax contributions until you withdraw them from the Plan. The amount you can contribute to this Plan in before-tax dollars each calendar year is limited under federal tax law. The amount is indexed to the cost of living, and generally increases each year. (For 2012, the federally-imposed limit is $17,000.) This limit is reduced if you contribute to any other qualified salary deferral plan. This limit does not apply to after-tax contributions. If you do participate in another plan and have questions about this limit, please contact the Employee Benefits Department at Effect on Social Security Benefits. Your before-tax contributions are included in your compensation for determining your Social Security taxes and benefits. Effect on Other Benefits. When you make before-tax contributions to the Plan, your compensation is adjusted for federal income tax purposes. However, when determining pay-related benefits offered by Hearst Corporation, such as life insurance, salary continuation, and retirement (if applicable), your full compensation is taken into account (i.e., before reduction for any before-tax contributions). The Hearst Corporation Employee Savings Plan SPD (8/12) 4

8 After-Tax Contributions When you make after-tax contributions, you contribute money that has already been taxed. The percentage you elect to contribute is included in your gross (unreduced) compensation and then deducted from your net pay. When you withdraw your account balance, any portion of the amount you receive that represents after-tax contributions will be nontaxable. However, investment earnings on your after-tax contributions grow on a tax-deferred basis until you withdraw these earnings, at which time these earnings will be taxed. Changing Your Contributions You may increase, decrease, or stop your before-tax and/or after-tax contributions at any time during the year. You can make any of these changes by contacting T. Rowe Price either: Online at myretirementplan (rps.troweprice.com) By calling the Plan Account Line at Your changes will be made as soon as administratively possible. Age 50+ Catch-up Contributions The Plan s catch-up contribution feature gives you an additional opportunity to increase your Plan savings as you near retirement. You are eligible to make before-tax catch-up contributions during any calendar year in which: You will be age 50 or older by the end of the calendar year, and Your contributions to the Plan will reach either the Plan s maximum percentage limit (40%) or the IRS before-tax limit ($17,000 for 2012) or will exceed the amounts allowed under the fairness test. See Limitations on page 7 for more information. The catch-up contribution limit for 2012 is $5,500. Catch-up contributions will be made throughout the year, along with your regular contributions. If at the end of the calendar year your regular contributions do not reach the Plan or IRS maximums, your catchup contributions will be treated as before-tax contributions. Company matching contributions will not be made on catch-up contributions; however, catch-up contributions that are recharacterized as regular before-tax contributions are eligible for Company matching contributions. If you want to make catch-up contributions, please contact the T. Rowe Price Plan Account Line at on business days between 7 a.m. and 10 p.m., Eastern Time, or the T. Rowe Price myretirementplan website at rps.troweprice.com. Your catch-up contributions will continue each year that you are eligible, unless you make a change or discontinue contributions. Company Matching Contributions After you have completed one year of service, the Company will match a percentage of your contributions to the Plan. In general, Company matching contributions will be made whether you save on a before-tax or an after-tax basis and will be made each pay period, along with your contributions. However, if you work for icrossing or Proxicom Inc., contributions will be made on a quarterly basis and only if management elects to make the Company matching contribution, based on business results or other appropriate criteria. The amount of the Company match will depend on whether or not you are eligible to participate in The Hearst Corporation Retirement Plan, which was closed to employees hired (or rehired) after The Hearst Corporation Employee Savings Plan SPD (8/12) 5

9 December 31, If you are not eligible for The Hearst Corporation Retirement Plan (you became an active employee on or after January 1, 2011, you were rehired after 2010, or you work for a unit that does not participate in that plan), then you will be entitled to receive an enhanced Company matching contribution. 25% match (up to 1.5% of compensation): If you are eligible for The Hearst Corporation Retirement Plan, the Company will make a contribution to your account of 25% of the total elected amount you contribute to the Plan, up to a maximum match of 1.5% of your compensation, as defined by the Plan. For example, if you contribute 4% of your compensation, Hearst will contribute 1%. If you contribute 8% of your compensation, Hearst will contribute 1.5%, which is the maximum matching contribution. 50% match (up to 3% of compensation): If you are not eligible for The Hearst Corporation Retirement Plan, the Company will make a contribution to the Savings Plan on your behalf equal to 50% of the total elected amount you contribute to the Plan, up to a maximum match of 3% of your compensation, as defined by the Plan. For example, if you contribute 4% of your compensation, Hearst will contribute 2%. If you contribute 10% of your compensation, Hearst will contribute 3%, which is the maximum matching contribution. In some cases, you might contribute the maximum allowable before-tax contributions for a Plan year before receiving the maximum Company matching contributions based on your total contributions (both before taxes and after taxes) for the year. If this happens, the Company will continue to make contributions for the rest of the year up to the maximum matching contribution, based on your contributions as long as you remain an Employee and your earnings are less than the maximum amount that may be taken into account for the year (see Limitations on page 7). Special Rules If You Work for icrossing, Proxicom, Inc. or Red Aril: The Company may make a quarterly contribution to your account of 25% of the total elected amount you contribute to the Plan, up to a maximum match of 1.5% of your compensation, as defined by the Plan. For example, if you contribute 4% of your compensation, the Company will contribute 1%. If you contribute 8% of your compensation, the Company will contribute 1.5%, which is the maximum matching contribution. This contribution is discretionary, and the Company will decide each quarter whether to make the contribution. Please contact the Employee Benefits Department if you have any questions about Company matching contributions. Automatic Company Contributions If you are eligible for the automatic Company contribution (see Eligibility for Automatic Company Contributions on page 3), Hearst will make an annual contribution on your behalf equal to 2% of your annual compensation (pro rated for a partial year of eligibility), as defined by the Plan. Hearst will make this contribution regardless of whether you contribute to the Plan or not. You will receive the contribution if you are an active employee as of December 31 (the last day of the Plan year), or if during the year you retired at age 55 or older, became disabled, or died. Please contact the Employee Benefits Department if you have any questions about the automatic Company contribution. Rollover Contributions The Plan provides that you may (under certain specific rules) elect to make a direct rollover to the Plan of distributions of at least $200 from other IRS-qualified plans. Rollovers can also be made within 60 days of a distribution made directly to you. You may roll over qualified distributions at any time, regardless of The Hearst Corporation Employee Savings Plan SPD (8/12) 6

10 whether or not you are actively contributing to the Savings Plan. For more information, please contact the Employee Benefits Department at Contributions Following Military Leave of Absence If your employment with the Company (or an affiliate) is interrupted by a period of military service that lasts less than five years, and you return to service in accordance with the Uniformed Services Employment and Reemployment Rights Act of 1994 ( Military Leave of Absence ), you will have the right to make restorative contributions. These contributions may be equal to the amount of before-tax contributions (including catch-up contributions, if applicable) that you could have made for the period of your Military Leave of Absence (based on your eligible pay immediately prior to such leave). The Company will make matching contributions with respect to your restorative contributions as if you had remained actively employed. You are required to notify the Company at the commencement of your Military Leave of Absence or as soon as possible thereafter. Limitations Federal tax law limits the annual compensation on which you may make contributions, your annual before-tax contributions, and the total annual contributions to your account. You may make contributions on your compensation up to the federal legal compensation limit for each Plan year. The compensation limit is adjusted periodically. When your earnings for a Plan year equal or exceed that year s legal compensation limit, you may not make any additional contributions for that Plan year, and no further Company contributions will be made to your account. For 2012, the compensation limit is $250,000. Please contact the Employee Benefits Department at for the limit applied to each year. Federal law also limits the amount that can be deposited in your Plan account in the form of before-tax, after-tax, Company matching contributions, and automatic Company contributions (if applicable) combined. For 2012, this amount is $50,000. This amount may be adjusted periodically. You will be notified if you are affected. Because of the favorable tax treatment offered by this Plan, the Internal Revenue Service (IRS) requires the Plan to pass a fairness test as described in the Internal Revenue Code. This test is designed to ensure a fair level of contributions by employees at various income levels. To satisfy this test, contribution percentages and the Company matching contributions may have to be adjusted or refunded for some highly compensated employees. You will be notified if this will affect you. Your Investment Choices The Plan offers you a wide choice of investment options for your account no matter what your individual retirement plan and investment strategy. To learn about your investment choices: Access the T. Rowe Price myretirementplan website at rps.troweprice.com Call the T. Rowe Price Plan Account Line at on business days between 7 a.m. and 10 p.m., Eastern Time You may: Invest in one of the T. Rowe Price Retirement Funds Build your own portfolio from one or more of the individual investment funds If you choose to build your own portfolio, the contributions in your account may be invested among the various investment funds in 1% increments. You have investment flexibility through the ability to allocate your savings among one or more funds. The Hearst Corporation Employee Savings Plan SPD (8/12) 7

11 The Savings Plan is intended to meet the requirements of section 404(c) under the Employee Retirement Income Security Act of 1974 (ERISA). Under ERISA section 404(c), the fiduciaries of the Savings Plan may be relieved of liability for any losses that are the direct result of investment instructions given by you. To that end, it is important that you thoroughly read the information about the investment options provided by T. Rowe Price and available on the T. Rowe Price website. Investment Information Your investment decisions will apply uniformly to your before-tax contributions, after-tax contributions, Company matching contributions, and any automatic Company contribution. Interest and dividends are automatically reinvested for you. You will pay no taxes on your investment earnings until you withdraw them from the Plan. You will receive a quarterly statement that shows the activity and the investment balance of the funds you choose. You can also review your account activity at any time: Online at myretirementplan (rps.troweprice.com) By calling the T. Rowe Price Plan Account Line at In addition, T. Rowe Price s plan account representatives are available to answer questions you may have about your investment decisions. These telephone representatives are registered with the Financial Industry Regulatory Authority and have been trained in matters relating to retirement plans and the T. Rowe Price investment funds. While the representatives cannot give specific investment advice, they can provide you with information concerning your account balance, general market conditions, and investment alternatives. To reach a representative, simply call You can call between 7 a.m. and 10 p.m., Eastern Time, on any business day. Changing Your Investments You may change your investment strategy for both your current account balance and for future contributions at any time by contacting T. Rowe Price: Online at myretirementplan (rps.troweprice.com) By calling the T. Rowe Price Plan Account Line To complete the transaction, you need your personal identification number (PIN). To reach a T. Rowe Price representative, call between 7 a.m. and 10 p.m., Eastern Time, on any business day. Changes take effect on the day you call or on the following business day if you call after 4 p.m., Eastern Time. You will receive a written confirmation from T. Rowe Price of any change made to your account. It is important to review each confirmation letter for accuracy. Investment exchanges affect your existing account balance. You can move previously contributed amounts from one fund to another. There may be exceptions to some investment changes. You can learn more about any exceptions online at myretirementplan (rps.troweprice.com) or by calling a T. Rowe Price telephone representative at Investment election changes only affect your future contributions. Keeping Track of Your Account You have 24-hour online access to your account through myretirementplan at rps.troweprice.com, as well as 24-hour toll-free access through the T. Rowe Price Plan Account Line. When you enroll, you will receive a personal identification number (PIN) from T. Rowe Price that will allow you to: Get your account balance The Hearst Corporation Employee Savings Plan SPD (8/12) 8

12 Change your contribution amount Change how your existing account balance is invested Change how your future contributions are invested Apply for a loan Request information about your investment options Any automatic Company contributions you may receive will be kept in an account separate from your contributions and the Company matching contributions. You will be able to track of this account through myretirementplan. If you have any questions, you may call T. Rowe Price at on any business day, between 7 a.m. and 10 p.m., Eastern Time. When You Are Vested Vesting is your right as a member of the Plan to the full value of your account. To be 100% vested means that you have total ownership of your account. Your Contributions Your contributions and the earnings on them are always 100% vested. Company Contributions The contributions made by Hearst Corporation (Company matching contributions and any automatic Company contributions) to your account, and the earnings on these contributions, will become 100% vested after you have completed three calendar years of service with at least 1,000 hours of service in each year. For salaried employees, hours of service are credited on an equivalent basis. If you are a salaried employee, you will be credited with 190 hours of service each month in which you work at least one hour of service. Service with the Company before the effective date of the Plan at your unit may count toward vesting. Different rules will apply to account balances from plans that were merged into this Plan. Vesting service for employees of the following units will include service before the unit s acquisition date: Employees of Metrix4Media, LLC who became eligible to participate in this Plan as of May 1, 2010 Employees of Hearst CT Post, LLC, Hearst SoCo Newspapers, LLC, and Community Newspapers Group-Connecticut, LLC who became eligible to participate in this Plan as of August 7, 2008 Employees of White Directory Division, White Directory Holdings Carolinas, and White Directory Holdings Pennsylvania who became eligible to participate in this Plan as of January 1, 2008 Employees of Veretech LLC and Veretech, Inc. who became eligible to participate in this Plan as of April 1, 2007 Employees of Technologue Holdings, Inc. who became eligible to participate in this Plan as of April 1, 2007 Employees of Prime Time, LLP who became eligible to participate in this Plan as of November 30, 2006 Employees of Zynx Health, Inc. who became eligible to participate in this Plan as of March 13, 2004 Employees of American Publishers, Inc., who became eligible to participate in this Plan as of January 1, 2004 Employees of Primedia, Inc., who became eligible to participate in the Plan as of June 1, 2003 Employees of Veranda Publications, Inc., who became eligible to participate in this Plan as of May 31, 2002 Employees of Capital Region Newspaper Group who were employed prior to June 30, 1999, and who became eligible to participate in this Plan as of October 1, 2000 The Hearst Corporation Employee Savings Plan SPD (8/12) 9

13 Employees of the Chronicle Publishing Company, Inc. or the San Francisco Newspaper Agency, Inc., who were employees as of July 27, 2000 Employees of icrossing or Proxicom Inc., who were employees as of July 1, 2010 Special Vesting Employees of the following units became 100% vested in their account balances, regardless of their years of service, as described below: Comag Marketing Group ( CMG ) employees whose employment terminated due to the sale of CMG in RealAge, Inc. employees whose employment terminated due to the sale of RealAge in Access to Your Account While You Are Working The main objective of the Savings Plan is to assist you in building additional security for your retirement years, but you may make a withdrawal or borrow from your account to assist you in meeting certain current financial needs. Please note that you cannot withdraw or borrow any automatic Company contributions or the associated earnings on these contributions. Withdrawals There are four types of withdrawals. Please note that different withdrawal rules may apply to account balances from plans that were merged into this Plan. See Special Plan Provisions on page 17. Regular After-Tax Withdrawal Once each 12-month period, you may withdraw all or any portion of your after-tax contributions that have been in the Plan for at least two years (including any investment earnings), for any reason. The minimum withdrawal is $500. For tax purposes, each withdrawal from your after-tax contributions is deemed to be part contributions and part earnings. If you make a regular after-tax withdrawal, all your contributions (before-tax and after-tax) will be suspended until the first day of the second calendar quarter after your withdrawal. Please contact the Employee Benefits Department to request withdrawal paperwork. You may wish to consult your tax adviser before requesting a withdrawal or making a rollover decision. Special After-Tax Withdrawal If you have a financial hardship as defined by the IRS, you may make a special after-tax withdrawal from your after-tax contributions, including contributions that have been in the Plan for less than two years and any investment earnings on them. You can make a special after-tax withdrawal at any time during the year, with no yearly limit on the number of withdrawals you can make. There is no minimum for a special after-tax withdrawal and no suspension of your future contributions. To be eligible as a special after-tax withdrawal, the withdrawal must be necessary to meet an immediate and heavy financial need. The events that will be deemed to cause an immediate and heavy financial need are: Unreimbursed medical expenses Purchase of a principal residence Tuition, room and board, and related educational fees for the next 12 months of post-secondary education for you, your spouse, or dependents Prevention of eviction or mortgage foreclosure on your principal residence Burial or funeral expenses for your deceased parent, spouse, children, or dependents Expenses relating to repairs of damage to your principal residence that would qualify for the IRS casualty deduction The Hearst Corporation Employee Savings Plan SPD (8/12) 10

14 Special after-tax withdrawal requests will be reviewed by the Administrative Committee to verify that the hardship meets IRS and Plan requirements. If your request is approved, you may withdraw from your account only the funds necessary to meet the financial need, including any taxes that may be due on your special after-tax withdrawal. For tax purposes, each withdrawal from your after-tax contributions is deemed to be part contributions and part earnings. Hardship Withdrawal If you have a financial hardship as described in Special After-Tax Withdrawal above, and your financial need cannot be satisfied from other resources, you may make a hardship withdrawal of your before-tax contributions (excluding any investment earnings) and vested Company matching contributions (including any investment earnings). The amount you withdraw cannot exceed the amount of your immediate and heavy financial need, and you must have already obtained all other distributions and nontaxable loans available from all plans sponsored by the Company. There is no minimum withdrawal amount for hardship withdrawals. Hardship withdrawal requests will be reviewed by the Administrative Committee to verify that the hardship meets IRS and Plan requirements. If your request is approved, you may withdraw from your account only the funds necessary to meet the financial need, including any taxes that may be due on your hardship withdrawal. All your contributions (before-tax and after-tax) must be suspended for six months after the hardship withdrawal. The amount of a hardship withdrawal may not exceed the sum of your accumulated before-tax contributions (excluding investment earnings), after-tax contributions (including any investment earnings), plus the vested portion of your Company matching contributions (including any investment earnings). Rollover Account Withdrawals Once each 12-month period, you may withdraw all or any portion of your rollover account (including any investment earnings), for any reason. Please contact the Employee Benefits Department to request withdrawal paperwork. You may wish to consult your tax adviser before requesting a withdrawal or making a rollover decision. Summary of Withdrawal Provisions The following chart summarizes the withdrawal rules covering your Savings Plan accounts. Type of Withdrawal Available Funds Withdrawal Requirements Regular In-Service After-Tax Withdrawal Special After-Tax Withdrawal After-tax contributions that have been in the Plan at least two years, including any investment earnings After-tax contributions, including any investment earnings None Must meet IRS definition of a financial hardship Restrictions One withdrawal per calendar year. Minimum withdrawal amount is $500. All future contributions suspended until the first day of the second calendar quarter after the withdrawal. None The Hearst Corporation Employee Savings Plan SPD (8/12) 11

15 Type of Withdrawal Available Funds Withdrawal Requirements Hardship Withdrawal Rollover Account Withdrawals Before-tax contributions (excluding any investment earnings) and vested Company matching contributions (including any investment earnings) Any portion of your rollover account, including earnings Must meet IRS definition of a financial hardship None Restrictions All future contributions suspended for six months following hardship withdrawal One withdrawal every twelve months Paying Taxes on Your Withdrawal Upon receiving a withdrawal, you will be responsible for paying ordinary income tax on any taxable amounts you withdraw. The only money that will not be taxed upon withdrawal is that portion deemed attributable under IRS rules to after-tax contributions. These contributions were already taxed before they went into your account. However, each withdrawal from your after-tax contributions is deemed part contributions and part earnings. Before-tax contributions, Company matching contributions, and investment earnings are taxable upon withdrawal. If you are under age 59½, the taxable portion of your withdrawal will generally be subject to a nondeductible 10% excise tax in addition to ordinary income tax. Current regulations require that the Plan withhold 10% of any taxable amounts of a hardship withdrawal or required minimum distribution for federal taxes, unless you elect otherwise. Loans As a Plan member, you may borrow from your account balance after participating in the Plan (including any prior plan) for one year. You may apply for a loan at any time during the year. You may take a loan as many times as you wish, but under no circumstances can more than one loan be outstanding at any given time. You may borrow up to 50% of your vested account balance. However, the amount of the loan may not exceed the lesser of: $50,000 reduced by the highest outstanding loan balance from the Plan during the year preceding the date of the new loan, or One-half of your vested interest in the Plan The minimum loan amount is $500, and the maximum repayment period will generally be five years, with a minimum monthly payment of $20. If you are taking a loan to purchase a home that will be your principal residence, you may choose a repayment period of up to fifteen years. The Plan may require reasonable evidence of the purchase of the home, such as a signed real estate contract, prior to granting a loan with a repayment period exceeding five years. The interest rate on loans secured from the Plan will be based on the federal funds rate set by the US Federal Reserve on January 1, April 1, July 1, and October 1, plus 2%. Although the interest rate will be reviewed for quarterly adjustments, the rate in effect at the time a loan is secured will remain in effect during the repayment period of your loan. The interest that you pay on your loan will be credited to your Savings Plan account. The interest that you pay is not deductible on your income tax return. The Hearst Corporation Employee Savings Plan SPD (8/12) 12

16 After you have taken out a loan, you may continue to contribute to the Plan, and the Company will continue to make matching contributions, up to the maximum allowed under the terms of the Plan. Any questions regarding the loan provisions of the Plan should be directed to the Employee Benefits Department at or T. Rowe Price at Please note that different loan rules may apply to account balances from plans that were merged into this Plan. Applying for a Loan If you want to apply for a loan, you can call T. Rowe Price at to speak with a representative between 7 a.m. and 10 p.m., Eastern Time, on any business day. You may also apply online through myretirementplan at rps.troweprice.com, if you have set up online access to your account. You will learn how much you can borrow and your applicable interest rate, and you will then be able to set up a payment schedule that works for you. In most cases, the loan check and promissory note will be mailed to your home address within 48 hours of your applying for the loan. Your endorsement of the loan check will indicate that you accept the loan terms. Repaying a Loan Repayment of your loan must be made through substantially level payroll deductions. (During an authorized leave of absence, if you receive no compensation from the Company, you must make monthly payments by check.) However, you can repay the entire outstanding balance of the loan by certified check, cashier s check, personal check, or money order at any time. These are the steps: Call T. Rowe Price at to learn your loan balance Make the certified check, cashier s check, personal check, or money order for the loan balance amount payable to T. Rowe Price be sure to include your name and Social Security number on the check or money order to be sure your account is properly credited Mail the check or money order to: By Mail T. Rowe Price Retirement Plan Services Special Attn.: Loan Dept. P.O. Box Baltimore, MD By Overnight/Express Mail T. Rowe Price Retirement Plan Services Mail Code: Painters Mill Road Owings Mills, MD If you prefer, you can also pay off your outstanding loan balance online. To access this service, log on to myretirementplan at rps.troweprice.com. Select Transactions under My Account. Click on the Take a Loan link, select Loan Payoff and follow the instructions. If you terminate employment, your loan balance must be paid off in full within 90 days of your date of termination. To do this you can either repay the entire balance by check or money order (as described above) or have any remaining balance automatically applied against your account, which will be deemed a distribution and subject to taxation. Distribution of Your Account You may take a distribution from your Plan account when you retire, if you become permanently disabled (as defined under the Social Security Act), or if you terminate employment. Your beneficiary will receive your account balance if you die before receiving a full distribution. Before 2012, all distributions from the Plan were made in the form of a single lump-sum payment. On and after January 1, 2012, you may elect to receive your distribution in any of the following forms of payment: The Hearst Corporation Employee Savings Plan SPD (8/12) 13

17 a single lump sum payment; one or more partial lump sum payments, with the remainder of your account balance deferred until you make a later distribution election; one or more partial lump sum payments, plus installment payments with respect to any remaining portion of your account balance; or monthly, quarterly, semi-annual or annual installments over a period of months or years as you may elect. If you are receiving installment payments you may elect, at any time, to receive a lump sum payment of your remaining account balance. Installment payments must be made over a period no longer than the longest time period allowed under IRS regulations. The maximum period is based on your age when distributions commence and the age of your designated beneficiary. You will be notified of the limits applicable to you and your beneficiary at the time you elect to commence benefits. For more information, contact the Employee Benefits Department. If you previously participated in a plan that was merged into this Plan, any form of payment other than those described above that was previously available under such merged plan will be available, on and after the merger date, only to those employees who began receiving distributions in such optional form before the effective date of the plan merger. Retirement When you retire on or after your normal retirement date (the first day of the month coinciding with, or next following, your 65 th birthday), you may receive your account balance in any of the methods described above. Disability If you become permanently disabled (as defined under the Social Security Act) while you are an active employee, you will become 100% vested in your account, regardless of your years of service. You may request a withdrawal at any time. Termination of Employment If you terminate your employment with the Company and all other companies that are members of the Hearst controlled group of companies, you may receive a distribution of your contributions, including any investment earnings, and the vested portion of all Company contributions plus the related investment earnings. If your vested account balance (including any rollover contributions you have made to the Plan) is over $1,000 at the time of your termination, you may elect to defer your distribution. Your money will remain in the Plan where it will continue to share in the earnings and/or losses of the particular fund(s) in which you have invested your money. However, distributions must begin by April 1 following the year in which you reach age 70½. See Required Distribution from the Plan on page 15 for more information. Death If you should die while you are an active employee, your beneficiary will receive your total account balance as a lump sum payment. All Company matching contributions and any automatic Company contributions will be 100% vested, regardless of your years of vesting service at the time of your death. If your beneficiary is not your spouse, your account balance must be distributed no later than the last day of the fifth Plan year after your death. If your beneficiary is your surviving spouse, he or she may defer receipt of the distribution until the date you would have attained age 70½. If you should die after receiving one or more partial lump sums or installment payments, your Beneficiary will receive the remaining balance of your account in a single lump sum payment as soon as practicable after your death. The Hearst Corporation Employee Savings Plan SPD (8/12) 14

18 Required Distribution from the Plan Federal tax law requires that minimum required distributions be made to certain active employees. This section explains when you must begin receiving distributions from your Plan account. If you are at least age and are an active employee as of December 31 of the current year, you may defer distribution until you actually retire from the Company (unless you are a 5% owner of the Company). However, you may elect to receive a full or partial distribution of your account balance at any time before you leave the Company. Each calendar year that you are still employed by the Company, you will have the opportunity to elect to receive a full or partial lump-sum distribution. If you do not elect to receive a distribution, payment of your account balance will automatically be deferred until you leave the Company (unless you are a 5% owner). Consult with your tax adviser regarding the tax implications of receiving or deferring distributions while you continue to participate in the Plan. If you are a 5% owner, you may not defer distributions; annual required distributions will begin no later than the April 1 following the year in which you reach age 70½. While you are receiving in-service distributions, you may continue making contributions to your Plan account, and Company matching contributions and any automatic Company contributions will continue to be made. Minimum required distribution payments to 5% owners are made as a series of annual installments payable over your life expectancy, unless you choose to receive a single payment of your vested account balance. These payments will be taken proportionally from your before-tax, after-tax, and Company matching contributions and any automatic Company contributions, as well as from each of your investment funds. Whether or not you are a 5% owner, if you continue working past age 70½, you must elect to begin receiving distributions by April 1 of the year after the year in which you retire. Paying Taxes on Your Distribution Upon receiving a distribution, you or your beneficiary will be responsible for paying ordinary income tax on the taxable portion of your account. The only part that will not be taxed is the after-tax contributions. These contributions were already taxed before they went into your account. Before-tax contributions, Company matching contributions, any automatic Company contributions, and all investment earnings are taxable upon distribution. If a distribution is made before age 59½ for any reason other than your death, disability, or retirement on or after age 55, the taxable portion of this distribution will be subject to a nondeductible 10% excise tax in addition to ordinary income tax. Upon receiving a distribution, you or your beneficiary will be responsible for paying ordinary income tax on the taxable portion of your account. Beneficiary When you enroll in the Plan or are eligible for automatic Company contributions, you will be asked to designate a beneficiary. If you are married, your spouse as defined by federal law is automatically your beneficiary. If you want to name someone other than your spouse, your spouse must agree to the designation you select and have his or her signature notarized on the applicable form. If you are unmarried, you may name anyone as your beneficiary. If your marital status changes, your previous beneficiary designation may no longer be valid. The Hearst Corporation Employee Savings Plan SPD (8/12) 15

19 Federal Income Tax Withholding Current regulations require that the Plan withhold for federal taxes 20% of the taxable amount of any distribution (other than a hardship withdrawal or a required minimum distribution) that is not rolled over. Current regulations require that the Plan withhold 10% of any taxable amounts of a hardship withdrawal or a required minimum distribution for federal taxes, unless you elect otherwise. Direct Rollover of a Distribution If you receive a distribution of your account balance (other than a hardship withdrawal or a required minimum distribution), you can avoid mandatory withholding (and the 10% excise tax, if applicable) and continue deferring federal income tax on any taxable money by making a direct rollover to an IRA (including a Roth IRA as described in Section 408A of the Code) or another eligible retirement plan, including a 403(b) tax-sheltered annuity or a governmental 457(b) plan. If the distribution is paid directly to you, you can still roll over all or part of it, but you must complete the rollover within 60 days. You may make up from your own funds the 20% that was withheld at the time of your distribution. If you roll over less than the total amount of your lump-sum distribution, the remaining amount will be taxed as ordinary income for the year in which it was paid. No portion of a hardship withdrawal or a required minimum distribution may be rolled over; however, mandatory 20% federal withholding does not apply to these distributions. Instead, the Plan is required to withhold 10% of each distribution for federal income tax, unless you elect otherwise. Any taxable amount you roll over into a Roth IRA will be includible in your taxable income at the time it is paid from the Plan; however, mandatory withholding does not apply. If certain conditions are met, withdrawals from a Roth IRA, unlike a regular IRA, may be made tax-free. In order to make a direct rollover, you must specify the eligible retirement plan or IRA to which you would like to have the money transferred. The Plan will make the check payable to such plan or IRA and send it to you for delivery to the appropriate trustee. If your surviving spouse or beneficiary receives a lump-sum distribution after your death, he or she also can take advantage of a direct rollover to defer income taxes. However, a beneficiary other than a spouse may only elect a rollover to an IRA or a Roth IRA. Tax laws are complicated and change often. You may wish to consult a tax adviser to discuss how these rules apply to your individual situation. Should you (or your surviving spouse or other beneficiary) become eligible to receive a lump-sum distribution from the Plan, more detailed information will be provided at the time. State and Local Income Taxes State and local income tax laws regarding Plan distributions vary by location. Please consult a tax adviser or your state or local tax agency for more information. Break in Service/Reemployment A break in service occurs in any calendar year in which you are credited with fewer than 500 hours of service. If you terminate employment with the Company after you are vested, and you are later rehired, you will be vested in all Company matching contributions and any automatic Company contributions made after reemployment. The Hearst Corporation Employee Savings Plan SPD (8/12) 16

20 If you terminate employment with the Company before you are vested, you forfeit your rights to any Company matching contributions and any automatic Company contributions and the earnings on them. If you are rehired before you have five consecutive breaks in service, your Company matching contributions and any automatic Company contributions will be reinstated. Reinstated amounts will include the amounts previously forfeited, plus any investment gains and losses for the period of your break in service as if the account had been invested in a specified investment option chosen by the Administrative Committee. You will still need a total of three calendar years of service (with 1,000 hours each) in order to be vested in the reinstated account. If you are rehired after you have five consecutive breaks in service, your rights to the Company matching contributions and any automatic Company contributions made before your break in service will not be reinstated. Whether you are reemployed before or after five consecutive breaks in service, your years of service prior to your break in service will count toward your vesting of the benefits you earn after the break in service. You will not have a break in service and you will continue to earn vesting service during any period of disability or approved leave of absence (including a Family or Medical Leave of Absence or Military Leave of Absence), as long as you return to work at the end of the leave of absence or period of disability. To prevent a break in service, you will be credited with up to 501 hours of service during any year in which you are absent from work because of: Pregnancy Childbirth The placement of an adopted child in your home The care of a child after birth or placement in your home These 501 hours of service will be credited in the year in which the break in service begins. If fewer than 501 hours are needed to prevent a break in service, the remaining hours will be credited to the next year. Special Plan Provisions In some cases, you may become a participant in the Plan because you participated in a savings plan that was merged into this Plan, or your account balance under the Plan may include amounts accumulated under a savings plan of your previous employer. This section provides information if this applies to you. The Edwardsville Intelligencer Defined Contribution Plan, Huron Daily Tribune Defined Contribution Plan, and the Midland Publishing Company, Inc. Profit Sharing Plan were merged into this Plan as of January 1, All monies transferred are available for hardship withdrawals, but not loans. In addition, all monies transferred are subject to any protected rights, including spousal consent and vesting schedules, available under the appropriate plan. The William Morrow & Company, Inc. Employees Profit Sharing Plan and Trust was merged into this Plan as of January 1, All monies transferred will be subject to any protected rights, including spousal consent and vesting schedule, available under that plan. Transferred monies are available for hardship withdrawals, but not loans. The Houston Chronicle Publishing Company Thrift and Salary Deferral Plan was merged into this Plan as of January 1, All monies transferred are subject to any protected rights, including spousal consent and vesting schedules, available under that plan. The Hearst Corporation Employee Savings Plan SPD (8/12) 17