CBS & YOU PREPARE. DECIDE. ACT.

Transcription

1 YOUR HR/BENEFITS PROGRAM PREPARE. DECIDE. ACT. YOUR HR PORTAL Dear YOUR CBS CBS Employee: 401(K) PLAN Congratulations, you re now eligible to participate in the CBS 401(k) Plan. As you ll see, your CBS 401(k) Plan is designed with you in mind. Everyone has unique retirement planning goals, and you can tailor your portfolio to invest YOUR for CBS those PENSION goals. That BENEFITS means picking your own investments from a lineup of 10 individual funds, or selecting a target date retirement portfolio, and then managing your account when and how you want. But you don t have to go it alone. We have partnered with Mercer, a leading provider of benefit services, to provide CBS YOUR employees CBS RETIREMENT with support PROGRAM through the CBS & YOU Benefits Center. Just call if you need help enrolling or have a question. The quickest way to start contributing to the CBS 401(k) Plan is to visit the CBS & YOU Portal at Day or night, you can log on and get started. Learn how to enroll and get the most out of your CBS 401(k) Plan by A HEALTHY PARTNERSHIP reviewing the enclosed materials. CBS CORPORATION ORIENTATION KIT CBS & YOU We hope you take advantage of this great opportunity to invest money for your retirement. Sincerely, Anthony G. Ambrosio Chief Human Resources Officer /14

2 YOUR HR/BENEFITS PROGRAM PREPARE. DECIDE. ACT. YOUR HR PORTAL CBS 401(k) Plan YOUR CBS 401(K) PLAN This fact sheet is designed to provide a high-level overview of the CBS 401(k) Plan. For more information, please refer to the CBS 401(k) Plan s Summary Plan Description (SPD), which is located on the CBS & YOU Portal. YOUR CBS PENSION BENEFITS Eligibility If you are a regular full-time employee on the Company s payroll and are age 21 or older, you are immediately eligible to enroll in the CBS 401(k) Plan. If you are a part-time employee on the Company s payroll and are age 21 or YOUR older, CBS you must RETIREMENT complete 1,000 PROGRAM hours of service within your first 12 months of employment, or within one calendar year, in order to be eligible to participate. Part-time employees will be notified if they are eligible. Please note that there are certain categories of individuals providing services who do not meet the eligibility requirements to participate in the CBS 401(k) Plan. A HEALTHY PARTNERSHIP Enrollment There are two ways to enroll active or automatic. CBS & YOU Active enrollment CBS CORPORATION strongly encourages ORIENTATION KIT you to take an active role in your retirement planning by selecting the contribution rate and investment options that are right for you. Automatic enrollment Because CBS understands how important it is to prepare for retirement, we offer automatic enrollment to make it easier for you to get started. If you do not actively enroll or opt out within 60 days of becoming eligible, you will be automatically enrolled in the CBS 401(k) Plan, and 5% of your eligible before-tax pay will be invested in the BlackRock LifePath Fund with a maturity date that most closely aligns with the year in which you will reach age 65 (your target year). If you want to change your contribution rate and investment elections or prefer not to participate in the CBS 401(k) Plan, simply log on to the CBS & YOU Portal at or call The target date investment is designed for investors expecting to retire around the year indicated in the BlackRock LifePath Fund name. The asset allocation strategy generally becomes increasingly conservative as the BlackRock LifePath Fund approaches its target date and beyond. Investment risks change over time as the underlying investment asset allocation changes. The investment is subject to the volatility of the financial markets, including equity and fixed-income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked and foreign securities. Principal invested is not guaranteed at any time, including at or after the target dates.

3 Account access You have two convenient ways to enroll and manage your account. Online: Log on to the CBS & YOU Portal by visiting To access the CBS & YOU Portal for the first time, you will need to enter your Social Security number, the month and day of your birth (MMDD) and your last name. You can then establish a username and password of your choice. By phone: Call the CBS & YOU Benefits Center at For personal assistance, call between 9:00 a.m. and 7:00 p.m. Eastern Time, any business day, to speak with a CBS & YOU Customer Service Representative. Follow the prompts to enter information confirming your identity. For certain transactions, you will be prompted to establish a personal identification number (PIN). Employee contributions The total of your before-tax, Roth 401(k) and traditional after-tax contributions cannot exceed 50% of your annual eligible compensation. For CBS 401(k) Plan purposes, eligible compensation includes base pay or benefits base pay, overtime, commissions and for eligible participants incentive plan payments, to a maximum of $260,000 or the IRS maximum allowable limit per year. Before-tax contributions If you are an eligible employee, you can contribute between 1% and 50% of your eligible annual compensation to the CBS 401(k) Plan on a before-tax basis, subject to the IRS annual contribution limit. The IRS annual contribution limit for 2014 is $17,500. If you have made 401(k) contributions to another employer s plan during the calendar year, those contributions count toward the IRS annual limit. Roth 401(k) after-tax contributions If you are an eligible employee, you can contribute between 1% and 50% of your eligible compensation to the CBS 401(k) Plan on a Roth 401(k) after-tax basis (any matching contributions will be made on a before-tax basis), subject to the IRS annual contribution limit. The IRS annual contribution limit for 2014 is $17,500. Traditional after-tax contributions If you are an eligible employee, you can contribute between 1% and 15% of your eligible compensation to the CBS 401(k) Plan on a traditional after-tax basis. Traditional after-tax contributions are not eligible for the Company match. Additional catch-up contributions for employees age 50 and older If you are age 50 or older, or will be during the calendar year, you can contribute an additional 1% to 75% of your eligible compensation on a before-tax and/or Roth 401(k) basis above the limits on contributions imposed by law or the CBS 401(k) Plan. These additional contributions, or catch-up contributions, are subject to a separate annual limit. The annual catch-up contribution limit for 2014 is $5,500. Catch-up contributions are not eligible for the Company match. Rollover contributions put your money to work where you work The CBS 401(k) Plan accepts rollovers of before-tax and/or Roth 401(k) distributions from other qualified plans and after-tax distributions from other employers retirement plans. Roth 401(k) distributions must be from designated Roth 401(k) accounts and not from Roth IRAs. This includes rollovers from 401(k) plans, 403(b) plans, government 457 plans and CBS Qualified Pension Plans. Conduit and traditional IRA rollovers are also permitted. You may want to consult a tax advisor to evaluate any special tax considerations that may apply if you initiate a rollover.

4 Company contributions Company matching contributions The Company match is calculated using a performance-based match formula. The amount of the Company match is determined each January by the Compensation Committee of the CBS Corporation Board of Directors, based on the Company s financial performance in the prior year. Currently, the Company match is $0.70 of every $1.00 you invest, up to the first 5% of your eligible compensation that you contribute to the CBS 401(k) Plan on a before-tax and/or Roth 401(k) basis. This means the Company will contribute an additional 3.5% to your account if you contribute at least 5% of your eligible compensation. Company matching contributions are invested in the CBS Class B Company Stock Fund.* You may transfer the Company match from the CBS Class B Company Stock Fund to any of the other investment options available in the CBS 401(k) Plan at any time. If you are covered by a collective bargaining agreement, the agreement determines whether you will receive a Company match and, if so, the amount to be contributed. * Because the CBS Class B Company Stock Fund concentrates its investment in a single stock, it involves more risk than a fund that invests in a broadly diversified portfolio. True-up contributions With the true-up feature, you can contribute less than the amount required to receive the full Company matching contribution in some pay periods, and more in others, and at the end of the plan year you ll receive a true-up contribution that ensures you receive the full Company matching contribution amount for the year provided you contribute an average of at least 5% of your eligible pay. You must be employed and eligible for Company matching contributions on the last day of the applicable plan year to be eligible to receive the true-up contribution. This feature is not applicable if you are eligible to participate in the CBS Excess 401(k) Plan. Vesting Vesting indicates what percentage of your account will be yours if you leave the Company. You are always 100% vested in the value of your before-tax, Roth 401(k) and traditional after-tax contributions; any rollover contributions; and any earnings on those contributions, subject to investment gains or losses. The vesting schedule for Company matching contributions and any earnings on those contributions is based on your years of service. Years of service Percent vested 1 20% 2 40% 3 60% 4 80% 5 or more 100% You are also 100% vested upon reaching age 65, or in the event of your permanent disability or death. Investment options The CBS 401(k) Plan offers you several ways to invest. You can choose a ready-mixed portfolio that offers you a one-step approach to creating a diversified investment portfolio. This option may be right for you if you prefer the ease and convenience of a professionally diversified and managed fund. Or you can choose to mix your own portfolio by selecting from the individual investment options available in the CBS 401(k) Plan. This choice may be right for you if you prefer the freedom to create your own combination of investments and actively manage your own portfolio. A self-directed brokerage option is available should you desire more investment diversity when tailoring a portfolio to your individual investment needs. The brokerage option allows you to invest a portion of your account in a variety of investments available outside the CBS 401(k) Plan s fund lineup, including stocks, bonds and mutual funds, and may be appropriate if you have a moderate to high comfort level with investing and are willing to spend more time managing your portfolio on an ongoing basis.

5 Professional investment advice Should you need assistance in making investment decisions, you can access professional investment help from Financial Engines. There are two services available to you. Online Advice is an online service where you can obtain guidance if you re actively managing your account on your own. You can access investment software tools that will assist you in managing your retirement assets and provide specific information about the funds available to you. This service is available to you at no cost. Professional Management provides you with individual investment advice for your retirement account. Financial Engines creates a personalized investment strategy for you, then manages your account on an ongoing basis to help you stay on track with your investment objectives. The fee is a small percentage of your account balance per year; the amount depends on your CBS 401(k) Plan account balance. Advisory services, including Online Advice and Professional Management, are provided by Financial Engines Advisors LLC, an independent, federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Financial Engines does not sell investments or receive commissions for the funds it recommends. Financial Engines does not guarantee future results. The information in this footnote has been provided by Financial Engines. Financial Engines Inc. is not affiliated with Mercer, LLC. Mercer, LLC does not provide investment advice and is not responsible for the descriptions of Online Advice or Professional Management products that are offered by Financial Engines Advisors LLC. CBS Corporation does not guarantee Financial Engines performance of its advisory services as described above and in related documentation. Loans While your CBS 401(k) Plan account is intended for retirement, loans are permitted for active employees. You can apply for a loan of up to the lesser of $50,000 or 50% of the total value of your vested account balance minus your highest outstanding loan balance from the previous 12 months. In addition, note that: Only one loan can be outstanding at any time. The minimum loan amount is $500. Loans must be taken in increments of $50. The repayment period may be up to five years for a general purpose loan or up to 25 years for a primary residence loan. You can pay off your loan in full at any time. You can make partial payments of your loan at any time; however, your loan will not be reamortized. The interest rate for new loans is the prime rate as published in The Wall Street Journal on the first business day of the month, plus 1%. There is a $50 loan initiation fee that will be deducted from your account balance. Withdrawals The following in-service withdrawals are available from the CBS 401(k) Plan. Please note that only two withdrawals are permitted per calendar year. General withdrawal (after-tax, rollover, employer match contributions). Age 59½ withdrawal (available only to participants who are at least 59½ years old; funds are withdrawn with the following priority: after-tax, rollover, employer match, before-tax, Roth 401(k)). Roth 401(k) general withdrawal (Roth 401(k) rollover). Roth 401(k) age 59½ withdrawal (available only to participants who are at least 59½ years old; funds are withdrawn with the following priority: Roth 401(k) matched, Roth 401(k) unmatched).

6 Account distribution Your vested CBS 401(k) Plan balance, minus any outstanding loan balances, will be available and/or payable to you or your beneficiary upon retirement, termination of employment or death. If the vested value of your CBS 401(k) Plan account is greater than $1,000, you may defer distribution of your balance until April 1 following the year in which you reach age 70½ or until you terminate your employment with or retire from CBS, whichever is later. Distributions may be paid in a single lump sum, but you also have the option to receive partial distributions and/or a series of installment payments. You may also maintain your account if the balance is greater than $1,000. If you have terminated your employment and your account balance is under $1,000, your balance will be distributed to you in a lump sum as soon as administratively possible, unless you have already rolled over your balance to an IRA or a new employer s plan. Before investing, carefully consider the investment options or funds investment objectives, risks, charges and expenses. Call or log on to for an offering statement or prospectus and, if available, a summary prospectus containing this and other information. Read them carefully. Investing involves risk, including risk of loss. While every effort has been made to ensure the accuracy of the information in this material, in the case of a discrepancy, the official Plan document will govern /14