Your Thrift Plan Handbook... THRIFT PLAN. Thrift Plan for Retirees Table of Contents. Keys to having made the most of your savings:

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1 Preset Mixes Table Your Thrift Plan Handbook... Keys to having made the most of your savings: THRIFT PLAN Be sure to choose a payment option To make the most of your benefits, meet with a Deseret Mutual financial planner Manage your investments your remaining balance continues to generate earnings and losses Your Thrift Plan Handbook... Deseret Mutual s Thrift Plan is a traditional defined contribution plan that has helped you prepare for your retirement. You have an account in which you contributed a percentage of your eligible income for retirement. And your employer matched a percentage of your contributions. The Thrift Plan is designed to work hand in hand with other programs like employer-sponsored retirement programs, Social Security benefits, and your personal savings. This section of your Benefits Handbook outlines the major provisions of Deseret Mutual s Thrift Plan for retirees as of January 1, This document also serves as your summary plan description, or SPD. Plan Features Plan Features The Thrift Plan can be critical in your retirement. It allowed you to save money, take advantage of matching employer contributions, and enjoy tax advantages. Plus, you re always 100% vested in the value of your account (both the contributions and earnings from you and your employer). In other words, you own the value of the funds in your account. Here s a brief summary of the Thrift Plan. Then more specific information follows: You control how your contributions and your employer s matching contributions are invested, choosing from Deseret Mutual s preset mixes or from among the mutual funds offered in the plan (see Investment Funds on page 4). You may withdraw funds from your Thrift Plan account, based on plan guidelines (see Thrift Plan Withdrawals on page 9). You determine how to receive payments (see Payment Options After Employment Ends on page 13). Your Your Account Account Thrift Plan for Retirees When you enrolled in the Thrift Plan, Deseret Mutual set up an account in your name. Your account reflects: your contributions to all of the Thrift Plan savings options and their investment earnings and/or losses employer-matching contributions and their investment earnings and/or losses the breakdown of balances in the fund(s) you have chosen any transactions you have made such as contributions, loans, and withdrawals We update the value of your funds each business day with the current day s closing values. ACCOUNT INFORMATION 2015 PAGE 1 Deseret Mutual provides information on your Thrift Plan account in the following ways: access information on your account through Deseret Mutual s website. After you have logged in, select the Retirement tab call Deseret Mutual and talk to a Savings Services representative for account information PRESET MIXES To make it easier for you, the Thrift Plan offers five preset investment / income mixes. These mixes are built from the plan s individual mutual funds. The preset mixes are designed to match your individual risk tolerance and your general investment horizon, which is the time your money is expected to be invested before it is needed as income during retirement. Be aware that your investment time horizon usually extends far beyond the end of your employment; it extends through all your retirement years. See the Preset Mixes table on page 6. If you have a longer investment time horizon, investments such as stocks can have long-term gains that outweigh short-term dips in value. But as your investment time horizon becomes shorter, more conservative investments may be appropriate. Naturally, some mutual funds outperform others. These funds then make up a larger percentage of your total account than originally invested. For your convenience, the preset mixes are rebalanced set to the original investment mix at the end of each quarter (see Rebalancing on page 7). Rebalancing brings your account back to the original percentages so your account stays diversified and balanced. Investment professionals select and monitor these preset mixes. But this doesn t guarantee future performance. Thrift Plan for Retirees Preset Mixes Asset Classes of Mutual Funds Current Income Short Term of the Preset Mixes (0 to 15 years) (0 to 4 years) Money Market 10% use the detailed, quarterly statement showing the value of your account and your personalized rate of return. We send it out within 30 days of the end of each calendar quarter Please check your statements carefully. Statements are considered correct if you don t notify Deseret Mutual of errors within 60 days of mailing. Intermediate Term (5 to 11 years) Short-term Bond 15% 15% 10% Withdrawal Limitations and Ramifications Different withdrawals have different restrictions. Federal law requires us to take money for the withdrawal in a certain order. Withdrawals depend on when the money was contributed, what savings option was used, and whether you or your employer contributed the money. Taxes and possible tax penalties apply to the taxable portion of all withdrawals (see Tax Considerations on page 11). Spousal Spousal Consent Consent Your spouse is defined as the person who is your legal husband or wife. If you re married, your spouse must provide written, notarized consent if you: request a direct rollover of any amount (see Lump Sums and Direct Rollovers on page 12) choose a primary beneficiary(ies) other than, or in addition to, your spouse, including a trust (see Beneficiaries on page 4) withdraw (see Thrift Plan Withdrawals on this page) change withdrawal amounts before the form is processed. A new Spousal Consent form may be required and you may need to provide your written, notarized consent to authorize the change. roll money into your Thrift Plan account from another qualified plan Your spouse s signature must be notarized by a notary public or witnessed by an authorized Deseret Mutual representative, not your employer. Photo identification is required. The notary s signature and your spouse s signature must have the same date. You re responsible for any cost incurred for this service. The completed Spousal Consent form is only valid for 180 days before the date of the first payment, other payments, or other financial transaction. An additional waiver may be required. Limitations may apply to the Annual Payment Option. If you re separated from your spouse, you still need a completed Spousal Consent form. And you may be required to provide additional consent. Employment Status Status Changes Changes RE-EMPLOYMENT Long Term (12+ years) Intermediate-term Bond 15% 20% 15% 12% Inflation-protected Bond 10% 10% 5% 3% ROLLOVERS INTO YOUR THRIFT PLAN ACCOUNT High-yield Bond 40% 15% 10% 5% Stock Only (12+ years) High-yield Stock 20% 5% 8% 12% 15% If you have savings in previous employer-sponsored plans, you may be eligible to roll over your account balances into your Thrift Plan account. This rollover provision is subject to IRS guidelines. Before you begin to roll over your account balances, contact Deseret Mutual for information. Deseret Mutual may accept before-tax and after-tax rollovers from the following: 401(a) plans 401(k) plans 403(b) plans Large-company Index Stock 11% 19% 25% 32% Mid-company Value Stock 3% 5% 7% 8% Mid-company Growth Stock 3% 7% 10% 12% Small-company Value Stock 3% 3% 4% Small-company Growth Stock 3% 3% 4% International Value Stock 3% 6% 8% 10% International Growth Stock 5% 9% 12% 15% 457 governmental plans Cash Balance plans Keoghs Profit Sharing and Money Purchase Rollover or conduit IRAs Roth 401(k) plans 100% 100% 100% 100% 100% Thrift Plan for Retirees Tax Considerations When you and your employer put money into your Thrift Plan account, and your account earned income, you selected how to save that money. Now your account will be taxed on how you saved. Please see the following table: 401(k) Roth 401(k) 401(a) Before tax After tax After tax Taxes paid Taxes paid Employee before before Contributions contribution contribution Tax free Employee Contribution Earnings Employer Match Employer Match Earnings Before you make decisions about receiving money from your Thrift Plan account, you may want to consult a qualified tax advisor. Deseret Mutual representatives aren t tax advisors. The following tax considerations are intended as summaries. Federal tax laws are complex and subject to change. To help explain tax considerations, the federal government has issued a Special Tax Notice, which includes more information. Please note: To avoid being taxed on a withdrawal that can be rolled over, you must roll over your payment within 60 days of receiving your payment. If you re going to roll over your payment, request a direct rollover to avoid tax complications. To avoid some of the tax consequences, see Lump Sums and Direct Rollovers on page 12. FEDERAL INCOME TAX 20% WITHHOLDING REQUIREMENT your scheduled non-annuity payments will last less than 10 If you return to work for a participating employer, you re eligible years. If your payments last 10 years or more, you may to participate in the Thrift Plan immediately if you re in an choose the percentage, including 0%, to be withheld included class of employment and have worked 1,000 hours, or are regularly scheduled to work 1,000 or more. you take a withdrawal 2015 PAGE 6 INVESTMENT EDUCATION AND RISK Each person s financial situation and objectives vary. Deseret Mutual can help you to understand some basic principles of saving and investing. Deseret Mutual Financial Planners: Your employers, through Deseret Mutual, provide financial planners who offer workshops and individual consultations at no charge to you. These planners are available to offer general objective financial information to help you plan for your future. They can help you to clarify goals, gather information, analyze your situation, develop solutions, and take action. But they don t provide specific investment advice. Investment Ownership: Each mutual fund carries its own objective and degree of risk. We cannot ensure that the investment objective of any mutual fund is achieved. Please be aware that neither Deseret Mutual, our financial planners, the fund managers, nor your employer can guarantee the value of the contributions and/or fund earnings in any of the mutual funds. You must make all personal decisions about your Thrift Plan account, including how your money is invested in your account, within the available funds. The taxable portion of a Thrift Plan withdrawal may be subject to a mandatory 20% withholding, which in the end may be less or more than your actual tax rate, for federal income tax if: you don t choose to have Deseret Mutual transfer your funds directly into another qualified plan or IRA 2015 PAGE 4 Thrift Plan for Retirees Table of Contents Plan Features Your Account Account Information Rollovers into Your Thrift Plan Account Beneficiaries Investment Funds Mutual Funds Preset Mixes Investment Education and Risk Changing Your Investment Direction Current Balance Transfers Rebalancing Thrift Plan Withdrawals Spousal Consent Employment Status Changes Tax Considerations Retirement After Employment Ends Lump Sums and Direct Rollovers Payment Options After Employment Ends Payment Options After Your Death Divorce and QDROs Payments to Beneficiary(ies) Planning Tools Fiduciary Duties Participant s Rights Plan Administration Fees Assignment Plan Information Notification of Discretionary Authority / Appeals Notification of Benefit Changes TABLE OF CONTENTS

2 Your Thrift Plan Handbook... Deseret Mutual s Thrift Plan is a traditional defined contribution plan that has helped you prepare for your retirement. You have an account in which you contributed a percentage of your eligible income for retirement. And your employer matched a percentage of your contributions. The Thrift Plan is designed to work hand in hand with other programs like employer-sponsored retirement programs, Social Security benefits, and your personal savings. This section of your Benefits Handbook outlines the major provisions of Deseret Mutual s Thrift Plan for retirees as of January 1, This document also serves as your summary plan description, or SPD. Thrift Plan for Retirees Plan Plan Features Features The Thrift Plan can be critical in your retirement. It allowed you to save money, take advantage of matching employer contributions, and enjoy tax advantages. Plus, you re always 100% vested in the value of your account (both the contributions and earnings from you and your employer). In other words, you own the value of the funds in your account. Here s a brief summary of the Thrift Plan. Then more specific information follows: You control how your contributions and your employer s matching contributions are invested, choosing from Deseret Mutual s preset mixes or from among the mutual funds offered in the plan (see Investment Funds on page 2). You may withdraw funds from your Thrift Plan account, based on plan guidelines (see Thrift Plan Withdrawals on page 5). You determine how to receive payments (see Payment Options After Employment Ends on page 8). Your Your Account When you enrolled in the Thrift Plan, Deseret Mutual set up an account in your name. Your account reflects: your contributions to all of the Thrift Plan savings options and their investment earnings and/or losses employer-matching contributions and their investment earnings and/or losses the breakdown of balances in the fund(s) you have chosen any transactions you have made such as contributions, loans, and withdrawals We update the value of your funds each business day with the current day s closing values. ACCOuNT INFORmATION Deseret Mutual provides information on your Thrift Plan account in the following ways: access information on your account through Deseret Mutual s website. After you have logged in, select the Retirement tab call Deseret Mutual and talk to a Savings Services representative for account information use the detailed, quarterly statement showing the value of your account and your personalized rate of return. We send it out within 30 days of the end of each calendar quarter Please check your statements carefully. Statements are considered correct if you don t notify Deseret Mutual of errors within 60 days of mailing. ROLLOvERS INTO YOuR THRIFT PLAN ACCOuNT If you have savings in previous employer-sponsored plans, you may be eligible to roll over your account balances into your Thrift Plan account. This rollover provision is subject to IRS guidelines. Before you begin to roll over your account balances, contact Deseret Mutual for information. Deseret Mutual may accept before-tax and after-tax rollovers from the following: 401(a) plans 401(k) plans 403(b) plans 457 governmental plans Cash Balance plans Keoghs Profit Sharing and Money Purchase Rollover or conduit IRAs Roth 401(k) plans 2015 PAGE 1

3 SEP (Simplified Employee Pension) IRAs SIMPLE (Savings Incentive Match Plan for Employees) 401(k) plans SIMPLE IRAs Target Benefit plans Trusteed Money Purchase plans Trusteed Profit Sharing plans Please be aware, when any money is deposited into your Thrift Plan account, it becomes subject to the Thrift Plan rules. For more information about rollovers, see Tax Considerations on page 6. Beneficiaries Choose a primary and an alternate beneficiary(ies) for your Thrift Plan account so when you die, your Thrift Plan account balance is paid according to your wishes. You re responsible to submit valid and up-to-date primary and alternate beneficiary(ies) designations. Please regularly verify that your designations are current. For your beneficiary(ies), you can name: your current spouse any other person or persons a trust (some limitations apply) entities such as charitable organizations You cannot name your employer or an affiliate of your employer as your beneficiary(ies). But if you re considering a trust (even as run by your employer), we encourage you to consult an attorney for information about your options. If you designated multiple beneficiaries and a primary beneficiary dies before you do and you don t designate a new beneficiary, the benefit payment for the predeceased primary beneficiary is equally distributed among the remaining living primary beneficiary(ies). The same applies to predeceased alternate beneficiary(ies) if no primary beneficiaries exist. You can name or change your beneficiary(ies) by going to Deseret Mutual s website. Or you can complete and submit Deseret Mutual s Beneficiary Form. married PARTICIPANTS Married participants must meet additional requirements. If you choose to name a primary beneficiary(ies) other than or in addition to your spouse, including a trust, we need your spouse s written, notarized consent (for more information, see Spousal Consent on page 6). You and your spouse must sign the Waiver Election form. For your information, if you had a balance in your Thrift Plan account when you reached age 35, you and your spouse had signed a Waiver Election form, you selected a different beneficiary(ies), and you want the waiver contents to be in force, then law required you to resubmit the Waiver Election form. If you re married and you don t have a beneficiary, the default beneficiary is your spouse. TRuSTS If you name a trust as your primary beneficiary, Deseret Mutual needs a completed copy of the trust document at your death. If you change your trust, check to make sure your beneficiary(ies) designations for your account are still valid. Investment Funds In the Thrift Plan, you have several investment options from which to choose. Each has a different investment objective, and each offers a different level of potential investment return and risk. Therefore, individual funds can be expected to perform differently during the same economic conditions. So you can reduce your overall risk by putting your money in a variety of investments. This is called diversification. The Thrift Plan offers two approaches to investing: choose one of Deseret Mutual s preset mixes build your own investment model by choosing from among the individual mutual funds mutual FuNdS Deseret Mutual has chosen mutual funds to provide investment opportunities in all the significant segments of the stock and bond markets. You invest your Thrift Plan contributions among a selection of these mutual funds. A mutual fund is a fund with a predetermined investment objective operated by an investment company that allows a group of investors to pool their money together. The general categories, or asset classes, of mutual funds available in the Thrift Plan are shown in the table on page 3, along with information about each fund s objectives, primary investments, potential rewards, and risk factors (Deseret Mutual reviews the asset classes and investment options, so they re subject to change). You must invest 100% of your account balance among the funds in whole percentages PAGE 2

4 Thrift Plan Table Categories Objectives Primary Investments Potential Rewards Risk Factors money market * Provide current income consistent with the preservation of capital and liquidity. Provide a stable share price. Short term U.S. government, agency, and corporate obligations with an average maturity of 90 days or less Capital preservation and low returns from very short-term money market securities Very low risk. Any risk is primarily because of lower income from falling interest rates. Short-term Bond Provide a higher rate of return than the Money Market Fund, with only modest changes in the value of the principal Investment grade bonds of major corporations with a maturity of between 1 and 3 years Principal preservation and fairly low returns from short-term debt securities Moderate fluctuation in value of investments. Fairly low risk. Any risk is primarily because of lower income. Intermediate-term Bond Provide total return with consistent preservation of capital and prudent investment management U.S government securities, corporate bonds, mortgage or asset-backed securities. Many use derivative instruments for hedging purpose or as part of its investment strategy. The average maturity is 3 to 10 years. Moderate returns over time based on interest payments, sales of debt securities, and changes in bond values Moderate risk because of changes in interest rates (bond values and interest rates generally move in opposite directions) Inflation-protected Bond Index High-yield Bond Provide a long-term rate of return that outpaces inflation Provide a higher yield, and higher long-term rate of return than investment grade bonds by investing in bonds issued by lower rated entities Provide a high level of long-term returns, with a significant portion of the return coming from dividends distributions Treasury Inflation Protected Securities with an average maturity between 7 and 20 years A diversified portfolio of high-yield bonds, debt securities, and other similar instruments issued by various U.S., non-u.s., public, or private sector entities A concentrated portfolio of Master Limited Partnerships invested in energy and energy-infrastructure stocks Equities included in the Standard & Poors 500 Stock Index. The index includes stocks from most of the larger corporations in the United States. Stocks in mid-sized companies that trade at a substantial discount to the manager s estimated value of the company Protection against inflation Higher income returns, and potentially higher long-term rates of return, than other fixed-income type investments Moderate risk because of changes in interest rates and inflation. In an environment where inflation is decreasing, the fund will typically underperform U.S. Treasuries of similar maturity. Moderately high risk. Lower-rated bonds tend to be significantly more volatile than investment-grade bonds, and have a greater degree of default risk High-yield Stock High dividend distribution with some capital appreciation Moderately high risk. While the investments do have a higher dividend return than most stock market sectors, the underlying securities market values do fluctuate over time Large-company Stock Index Match the investment performance of the Standard & Poors 500 Stock Index Moderate to high returns over time based on changes in stock values and stock dividends Moderately high risk because of changes in the market value of stock in the fund mid-company value Stock Provide capital appreciation from sound, mid-sized companies whose stock is believed to be undervalued Capital appreciation and fairly high returns over time based on changes in stock values and stock dividends Capital appreciation and fairly high returns over time based on changes in stock values Moderately high risk because of changes in the market value of stocks in the fund mid-company Growth Stock Small-company value Stock Provides capital appreciation from mid-sized companies that are believed to grow their earnings rapidly Provide capital appreciation from stocks of smaller companies believed to be undervalued Stocks of mid-sized companies that are growing very rapidly Stocks of small companies whose stock price to asset value per share is low when compared to other small companies Capital appreciation and high returns over time based on changes in stock values Higher risk because of changes in market value of stocks in the fund High risk because of changes in market value of stocks in the fund Small-company Growth Stock Provide capital appreciation from small companies believed to have rapid growth potential Stock of small companies that have the ability to grow their earnings rapidly Capital appreciation and high returns over time based on changes in stock values High risk because of changes in market value of stocks in the fund International value Stock Provide capital appreciation from stocks of companies based outside the United States that are believed to be undervalued Stocks in large and mid-sized companies based outside the United States. At least 80% of the fund is invested in developed countries. Capital appreciation and high returns over time based on changes in stock values High risk because of changes in market value of stocks in the fund and changes in the value of foreign currencies and political changes International Growth Stock Provide capital appreciation from stocks of companies based outside of the United States that are believed to have potential for rapid growth Stock of large and mid-sized companies based outside the United States that have the potential to grow their earnings rapidly Capital appreciation and high returns over time based on changes in stock values High risk because of changes in market value of stocks in the fund and changes in the value of foreign currencies and political changes * Please be aware that the money market fund is neither insured nor guaranteed by the FDIC or any other government agency. Although this fund seeks to preserve the net asset value of $1.00 per share, it s possible to lose money by investing in this type of fund. Note: The investment options include expenses for investment management and administration, and may impose fees or restrictions. For more information about investment objectives, risks, expenses, fees, and so on, please see the funds prospectus. All investors should consider investment objectives, risks, charges, and expenses carefully before investing. So read the Fee & Investment notice and prospectus carefully before you invest. (You may contact Deseret Mutual to get a copy of these documents.) 2015 PAGE 3

5 Preset Mixes Table Preset mixes Asset Classes of mutual Funds of the Preset mixes Current Income (0 to 15 years) Short Term (0 to 4 years) Intermediate Term (5 to 11 years) Long Term (12+ years) Stock Only (12+ years) Money Market 10% Short-term Bond 15% 15% 10% Intermediate-term Bond 15% 20% 15% 12% Inflation-protected Bond 10% 10% 5% 3% High-yield Bond 40% 15% 10% 5% High-yield Stock 20% 5% 8% 12% 15% Large-company Index Stock 11% 19% 25% 32% Mid-company Value Stock 3% 5% 7% 8% Mid-company Growth Stock 3% 7% 10% 12% Small-company Value Stock 3% 3% 4% Small-company Growth Stock 3% 3% 4% International Value Stock 3% 6% 8% 10% International Growth Stock 5% 9% 12% 15% 100% 100% 100% 100% 100% PRESET mixes To make it easier for you, the Thrift Plan offers five preset investment / income mixes. These mixes are built from the plan s individual mutual funds. The preset mixes are designed to match your individual risk tolerance and your general investment horizon, which is the time your money is expected to be invested before it is needed as income during retirement. Be aware that your investment time horizon usually extends far beyond the end of your employment; it extends through all your retirement years. See the Preset Mixes table above. If you have a longer investment time horizon, investments such as stocks can have long-term gains that outweigh short-term dips in value. But as your investment time horizon becomes shorter, more conservative investments may be appropriate. Naturally, some mutual funds outperform others. These funds then make up a larger percentage of your total account than originally invested. For your convenience, the preset mixes are rebalanced set to the original investment mix at the end of each quarter (see Rebalancing on page 5). Rebalancing brings your account back to the original percentages so your account stays diversified and balanced. Investment professionals select and monitor these preset mixes. But this doesn t guarantee future performance. INvESTmENT EduCATION ANd RISK Each person s financial situation and objectives vary. Deseret Mutual can help you to understand some basic principles of saving and investing. deseret mutual Financial Planners: Your employers, through Deseret Mutual, provide financial planners who offer workshops and individual consultations at no charge to you. These planners are available to offer general objective financial information to help you plan for your future. They can help you to clarify goals, gather information, analyze your situation, develop solutions, and take action. But they don t provide specific investment advice. Investment Ownership: Each mutual fund carries its own objective and degree of risk. We cannot ensure that the investment objective of any mutual fund is achieved. Please be aware that neither Deseret Mutual, our financial planners, the fund managers, nor your employer can guarantee the value of the contributions and/or fund earnings in any of the mutual funds. You must make all personal decisions about your Thrift Plan account, including how your money is invested in your account, within the available funds PAGE 4

6 Changing Your Your Investment direction Even while you re receiving benefit payments from your Thrift Plan (referred to being in payment status ), there may be times when you want to change the funds in which your Thrift Plan account balance is currently invested. To change your investment direction, go to Deseret Mutual s website and select the Retirement tab. Or call Deseret Mutual s Savings Services. All transactions occur at the close of business of the New York Stock Exchange, which is usually 2 p.m., Mountain Time. All mutual funds are valued as of the end of the trading day. Changes confirmed before 2 p.m. are effective that business day. Changes confirmed after 2 p.m., Mountain Time, or on weekends or holidays, are effective the next business day. Please be advised that circumstances beyond our control at Deseret Mutual can occur at any time and could delay your change request. Deseret Mutual cannot be responsible for these delays. CuRRENT BALANCE TRANSFERS Current balance transfers affect existing Thrift Plan account balances. Current balance transfers are in whole percentages. Current balance transfers apply to your total account balance (employee contributions, employer-matching contributions, and earnings) in all Deseret Mutual savings plans. You can choose to: select one of the preset mixes do a current balance transfer for your entire account balance among any or all of the individual mutual funds In keeping with Deseret Mutual s action to prevent improper trading, we have a 15-day restriction on mutual fund trades. In other words, only one trade is permitted every 15 calendar days after the effective date of trade. That s because qualified plans like the Thrift Plan aren t intended to be used as short-term trading vehicles. When you request a current balance transfer, the money in your existing funds is valued at the closing net asset value (NAV) for that business day. When the current balance transfer occurs, your money is moved into the new fund(s) at the current asset value of the new fund(s). The 15-day restriction begins the day after your current balance transfer is valued. Fund managers may impose their own restrictions. See the respective fund prospectus for more information. REBALANCING Because of fluctuations in fund performance and to maintain your investment diversification, it is important to rebalance and bring your account back to the original future fund election percentages, or investment model, you selected. If you re currently investing in a preset mix, rebalancing automatically occurs every 90 days at the end of every quarter. If you have built your own investment model, you can request to automatically rebalance your account to your own mix on a quarterly basis. With your own investment mix, rebalancing isn t required but it is a good idea. You can rebalance your account based on your future fund elections only. Each time you request a current balance transfer, you must choose whether or not to automatically rebalance. If you request a current balance transfer and have an existing rebalancing option, your fund will automatically rebalance every 90 days (or at the end of the respective quarter) unless you cancel the rebalance option. You can discontinue your rebalance election on your own investment model at any time. If you re no longer employed and therefore no longer contributing to your Thrift Plan account, rebalancing continues to be based on the last investment allocation you designated. Thrift Plan Withdrawals The Thrift Plan is designed to help ensure your financial security after you retire. In some circumstances, withdrawals are available based on plan guidelines. GENERAL WITHdRAWAL PROvISIONS Withdrawal Requirements If you re married, your spouse must consent to your withdrawal in writing (see Spousal Consent on page 6). There is a minimum 90-day waiting period between withdrawals. This may be waived if you re closing your account PAGE 5

7 Withdrawal Limitations and Ramifications Different withdrawals have different restrictions. Federal law requires us to take money for the withdrawal in a certain order. Withdrawals depend on when the money was contributed, what savings option was used, and whether you or your employer contributed the money. Taxes and possible tax penalties apply to the taxable portion of all withdrawals (see Tax Considerations on this page). Tax Considerations When you and your employer put money into your Thrift Plan account, and your account earned income, you selected how to save that money. Now your account will be taxed on how you saved. Please see the following table: 401(k) Before tax Roth 401(k) After tax 401(a) After tax Spousal Spousal Consent Consent Employee Contributions Taxes paid before contribution Taxes paid before contribution Your spouse is defined as the person who is your legal husband or wife. If you re married, your spouse must provide written, notarized consent if you: request a direct rollover of any amount (see Lump Sums and Direct Rollovers on page 7) choose a primary beneficiary(ies) other than, or in addition to, your spouse, including a trust (see Beneficiaries on page 2) withdraw (see Thrift Plan Withdrawals on page 5) change withdrawal amounts before the form is processed. A new Spousal Consent form may be required and you may need to provide your written, notarized consent to authorize the change. roll money into your Thrift Plan account from another qualified plan Your spouse s signature must be notarized by a notary public or witnessed by an authorized Deseret Mutual representative, not your employer. Photo identification is required. The notary s signature and your spouse s signature must have the same date. You re responsible for any cost incurred for this service. The completed Spousal Consent form is only valid for 180 days before the date of the first payment, other payments, or other financial transaction. An additional waiver may be required. Limitations may apply to the Annual Payment Option. If you re separated from your spouse, you still need a completed Spousal Consent form. And you may be required to provide additional consent. Employment Status Status Changes RE-EmPLOYmENT If you return to work for a participating employer, you re eligible to participate in the Thrift Plan immediately if you re in an included class of employment and have worked 1,000 hours, or are regularly scheduled to work 1,000 or more. Employee Contribution Earnings Employer match Employer match Earnings Before you make decisions about receiving money from your Thrift Plan account, you may want to consult a qualified tax advisor. Deseret Mutual representatives aren t tax advisors. The following tax considerations are intended as summaries. Federal tax laws are complex and subject to change. To help explain tax considerations, the federal government has issued a Special Tax Notice, which includes more information. Please note: To avoid being taxed on a withdrawal that can be rolled over, you must roll over your payment within 60 days of receiving your payment. If you re going to roll over your payment, request a direct rollover to avoid tax complications. To avoid some of the tax consequences, see Lump Sums and Direct Rollovers on page 7. FEdERAL INCOmE TAx 20% WITHHOLdING REquIREmENT The taxable portion of a Thrift Plan withdrawal may be subject to a mandatory 20% withholding, which in the end may be less or more than your actual tax rate, for federal income tax if: you don t choose to have Deseret Mutual transfer your funds directly into another qualified plan or IRA your scheduled non-annuity payments will last less than 10 years. If your payments last 10 years or more, you may choose the percentage, including 0%, to be withheld you take a withdrawal Tax free 2015 PAGE 6

8 Your withdrawal may not be subject to the mandatory 20% withholding if you take a hardship withdrawal or required minimum distribution. These aren t eligible to be rolled into IRAs or other qualified plans so although they are taxable, they aren t subject to the mandatory withholding. Again, you may want to contact your tax advisor about the tax consequences of your hardship withdrawal. Unless requested, Deseret Mutual doesn t withhold 20% from hardship withdrawals and required minimum distributions. The 20% withheld is credited toward your federal tax for the taxable calendar year, which is determined by the date of your payment. We mail a tax statement and information to you by January 31 of the following year indicating the taxable amount and the taxes withheld, if any. (Or your tax statement may be sent to you at the time the withdrawal form is processed.) Note: The 20% federal tax withholding may also apply when you receive some of the payment options. State taxes may be withheld. Withheld taxes will reduce the amount you receive. So if you want to receive a specific dollar amount, you ll need to increase the requested amount to cover the withheld taxes. We can help you calculate the payment you need to request. STATE INCOmE TAx You may choose whether or not you want state taxes withheld, unless you live in a state with mandatory withholding. TAxES ON death BENEFITS If your Thrift Plan account balance is paid to your beneficiary(ies), including your trust, your beneficiary(ies) is responsible for paying all taxes when the money is. ESTATE TAxES Payments may be subject to estate taxes. This is true regardless of where the payment goes. LumP Sum PAYmENTS ANd INCOmE AvERAGING Income averaging may be available one time to participants born before January 2, If you receive your entire Thrift Plan account balance in one calendar year, you may qualify for income averaging. The rules are complex, so seek the advice of a qualified tax advisor before you decide how to receive your account balance. OTHER TAxES Other taxes, such as territorial taxes required by other countries, may be applicable. Retirement After Employment Ends You can leave the balance in your rift Plan account until you reach your required beginning date (see Required Minimum Distribution below). Or you can choose to withdraw a portion of your account balance without proving financial hardship, based on plan guidelines. en at your required beginning date, you must choose a payment option. Between age 55 and your required beginning date, you may select a payment option either an annuity or another payment option (see Payment Options After Employment Ends beginning on page 8). An additional 10% tax may be necessary if you re between ages 55 and REquIREd minimum distribution A required minimum distribution is a payment to you from your rift Plan account balance that s required by federal law. It must be paid to you by your required beginning date, which is the later of: April 1 of the year following the calendar year in which you reach age April 1 of the year following the calendar year in which you end employment with all participating employers When you reach your required beginning date, you must select a permanent payment option or close your account. e required minimum distribution isn t eligible for rollover. Otherwise, the automatic payment option will go into effect and you won t be able to change to another option in the future. Lump Sums and direct Rollovers Anytime after you end employment, you can receive your entire Thrift Plan account balance as a lump sum payment. And you can make a direct rollover from your Thrift Plan account to another qualified plan or IRA. Rollover Options The 401(k) before-tax contributions, plan earnings, and employer-matching contributions may qualify to be rolled into an IRA or another qualified employer plan PAGE 7

9 The Roth 401(k) after-tax money can only be rolled to a Roth IRA or another Roth 401(k). You can roll your 401(a) after-tax contributions to a qualified employer plan. Please note, some plans aren t required to accept these after-tax contributions. You can request your after-tax contributions to be sent directly to you. What may Be Limited or Excluded Installment payments (monthly payment options) aren t eligible to be rolled over. Rollovers may be limited by federal regulations. You may not be able to roll the money back into your Thrift Plan account after you roll it out. When you roll your money to another plan, it becomes subject to the rules of the other plan. Before you make a decision, understand the rules, fee structures, and tax penalties of the other plan. Please check carefully before rolling over your money. Payment Options Options After After Employment Ends Ends You may receive your Thrift Plan account balance in one of several ways. AuTOmATIC PAYmENT OPTIONS (default) If you have ended employment and you don t choose a permanent payment option or close your account by your required beginning date, Deseret Mutual will set up one of the automatic payment options described below: Single, your account balance is used to purchase a Life Annuity Married, your account balance is paid as a QJSA (see Annuity Payment Options No Term Certain on page 10) After the automatic payment option begins, you cannot change it to another payment option. So it is extremely important to choose a payment option by your required beginning date. monthly FLExIBLE INSTALLmENT PAYmENT OPTION This option provides monthly payments for an identified number of years. You re eligible to choose this option if your Thrift Plan account balance is at least $5,000. You can specify the number of whole years for which you want to receive payments, from two years to the maximum allowed by law. The maximum number of years you can receive payments is limited by IRS regulations according to life expectancies. It depends on you and your beneficiary(ies) s ages. Deseret Mutual can calculate the maximum number of years for each situation. If you re required to receive a minimum payment (a required minimum distribution), you may receive an extra payment at the end of the year to meet that requirement. At any time you can change the time period over which you have chosen to receive payments, if you make the request in writing and receive approval from Deseret Mutual. You can make partial withdrawals as often as every 90 days or close your account at any time, based on plan guidelines. While you re receiving monthly payments, your remaining balance generates investment earnings or losses, even though you re no longer making contributions to your account. You can transfer your account balance among the various mutual funds according to the plan guidelines (see Changing Your Investment Direction on page 5). Payments are taken proportionately from all investment funds in your account. FIxEd dollar INSTALLmENT PAYmENT OPTION This option provides fixed-dollar monthly payments. You re eligible to choose this option if your Thrift Plan account balance is at least $5,000. You may change to another payment option, based on plan guidelines. For example, at age 70½ if you are no longer working for a participating employer, you may change to the Annual Payment Option. You can select a payment of only what you need, $100 being the minimum. If you re required to receive a minimum payment (a required minimum distribution), you may receive an extra payment at the end of the year to meet that requirement. You may change the dollar amount once per calendar year. You can make partial withdrawals as often as once every 90 days or you can close your account at any time, based on plan guidelines. While you re receiving monthly payments, your remaining balance generates investment earnings or losses, even though you re no longer making contributions to your account PAGE 8

10 You can transfer your account balance among the various mutual funds according to the plan guidelines (see Changing Your Investment Direction on page 5). Payments are taken proportionately from all investment funds in your account. ANNuAL PAYmENT OPTION The Annual Payment Option is the required minimum distribution amount. You re eligible to choose the Annual Payment Option if you have done the following: ended employment reached your required beginning date have at least $5,000 in your Thrift Plan account You must submit your application at least two months before you want the payments to begin. You and your spouse, if applicable, must sign the Annual Payment Option form. The annual payment is paid in December of each calendar year. This option allows you to keep the funds in your Thrift Plan account fully invested during the calendar year. With this option, you can make additional partial withdrawals every 90 days or close your account at any time, based on plan guidelines. Withdrawals don t reduce the amount you will receive from the Annual Payment Option in December. Payments are taken proportionately from all investment funds in your account. ANNuITY PAYmENT OPTIONS An annuity pays equal monthly payments for the time specified in the annuity payment option you choose. Annuity payment guidelines are as follows: If your Thrift Plan account balance is at least $5,000, you can close your account to purchase an annuity. A combination of payment options may be available. But if you re older than 70, IRS regulations may limit the payment options available to you. You can change your annuity payment option by written request before you receive your first payment. After you receive your first payment, you cannot make any annuity payment option changes. The joint and survivor annuity payment options are for married participants. They provide payments to your joint annuitant when you die. Your joint annuitant is your spouse at the time you purchase your annuity. You cannot change your joint annuitant, even if you later divorce, become widowed, or remarry. You can change your beneficiary(ies) after you start receiving payments. Be aware that fees are associated with the annuity payment options. ANNuITY PAYmENT OPTIONS TERm-CERTAIN Some of the annuity payment options include a term-certain period. Term certain is a guaranteed period of time the benefit payments will be made, even if you die. The term-certain period starts when benefit payments begin (the annuity start date) and ends at the end of the guarantee, or term-certain, period. Joint & Survivor 100% Annuity (10-year Term Certain) This payment option provides equal monthly payments for as long as you live. If you die before your joint annuitant, your joint annuitant receives 100% of the monthly payment amount, or the same monthly payment amount you were receiving as a couple, until your joint annuitant s death. If both you and your joint annuitant die before 10 years from your annuity start date, the payments continue to your designated beneficiary(ies) for the remainder of the 10 years. Joint & Survivor 75% Annuity (10-year Term Certain) This payment option provides equal monthly payments for as long as you live. If you die before your joint annuitant, your joint annuitant receives 75% of the monthly payment amount you were receiving until your joint annuitant s death. If both you and your joint annuitant die before 10 years from your annuity start date, reduced payments continue to your designated beneficiary(ies) for the remainder of the 10 years. Joint & Survivor 50% Annuity (10-year Term Certain) This payment option provides equal monthly payments for as long as you live. If you die before your joint annuitant, your joint annuitant receives 50% of the monthly payment amount you were receiving until your joint annuitant s death. If both you and your joint annuitant die before 10 years from your annuity start date, reduced payments continue to your designated beneficiary(ies) for the remainder of the 10 years. Special Joint & Survivor Two-thirds Annuity (10-year Term Certain) This payment option provides a monthly payment that is reduced to two-thirds at the time either you or your joint annuitant dies. This reduced payment continues for the remainder of the survivor s life PAGE 9

11 If both you and your joint annuitant die before 10 years from your annuity start date, reduced payments continue to your designated beneficiary(ies) for the remainder of the 10 years. Unlike the joint and survivor annuity payment options, the QOSA doesn t have a 10-year term certain. The payments stop when both you and your joint annuitant die. 10-year Term Certain & Life Annuity This payment option provides a life annuity with equal monthly payments for as long as you live. If you die before 10 years from your annuity start date, payments continue to your designated beneficiary(ies) for the remainder of the 10 years. Term Certain Annuity Options You can choose to receive your benefit in monthly payments for 2 1 2, 5, 7 1 2, 10, 15, or 20 years. If you die before the end of the selected period from your annuity start date, payments continue to your designated beneficiary(ies) for the remainder of that period. Based on your age, the term certain annuity payment options may be limited because of your life expectancy as prescribed by law. SPOuSAL PROTECTION AT RETIREmENT qjsa Federal law protects your spouse s rights to your Thrift Plan benefit. If you re married, Deseret Mutual offers you several payment options. Your Thrift Plan benefit will be paid as a QJSA unless you and your spouse waive that right. Your spouse is required to give written, notarized consent to your waiver. Waiver Election If you re approaching your required beginning date and want a payment option other than the post-required beginning date default option, or QJSA, you and your spouse must complete the QJSA Waiver and Spousal Consent form (see Spousal Consent on page 6). You and your spouse must sign these forms within 180 days before the date payments begin. ANNuITY PAYmENT OPTIONS NO TERm CERTAIN These annuity payment options don t include a term-certain period. Life Annuity The Life Annuity provides equal monthly payments for as long as you live. Payments don t continue after your death. If you and your spouse waive the QJSA, you may receive your benefit in any other form the plan provides. Benefit amounts and eligibility requirements for other payment options differ. Your spouse cannot revoke consent. But if you change your mind and you want the QJSA or the QOSA, you may revoke your waiver any time before you receive your first payment. After payments begin, you cannot revoke your waiver. qjsa No Term Certain This payment option provides equal monthly payments for as long as you live. If you die before your joint annuitant, it provides a 50% survivor annuity for the remainder of your joint annuitant s life. Unlike the joint and survivor annuity payment options, the QJSA doesn t have a 10-year term certain. The payments stop when both you and your joint annuitant die. qosa No Term Certain This payment option provides equal monthly payments for as long as you live. If you die before your joint annuitant, it provides a 75% survivor annuity for the remainder of your joint annuitant s life. RELATIvE value OF ANNuITY PAYmENT OPTIONS The amount we expect all of your payments to add up to over your life expectancy is called the relative value. It is based on the value of your Thrift Plan account, the age when your payments begin, and the interest rates in effect at the time the annuity is purchased. The example on page 11 can help you better understand the relative value of your payment options. In the example, the account balance is $65,000, the age when payments begin is 65, and the joint annuitant s age is 72. Please note that interest rates change month to month, but are locked in when an annuity is purchased PAGE 10

12 Annuity Options RELATIvE values Interest Rates* Participant monthly Payments Joint Annuitant Term Certain Beneficiary Joint & Survivor 100% (10-year Term Certain) 4.70% $ 315 $ 315 $ 315 Joint & Survivor 75% (10-year Term Certain) 4.70% $ 325 $ 244 $ 244 Joint & Survivor 50% (10-year Term Certain) 4.70% $ 336 $ 168 $ 168 Special Joint & Survivor Two-thirds (10-year Term Certain) 4.70% $ 343 $ 229 $ 229 QJSA No Term Certain 4.70% $ 336 $ 168 QOSA No Term Certain 4.70% $ 325 $ 244 Life Annuity 4.49% $ year Term Certain & Life Annuity 4.49% $ 346 $ year Term Certain 1.99% $2,182 $2,182 5-year Term Certain 3.00% $1,144 $1, year Term Certain 3.55% $ 805 $ year Term Certain 3.93% $ 640 $ year Term Certain 4.33% $ 478 $ year Term Certain 4.43% $ 396 $ 396 * The interest rates are for illustration purposes only and don t reflect current interest rates. Please contact Deseret Mutual for more information. Payment Payment Options Options After After Your Your death death If you die and you re receiving a payment, the guidelines of that payment option will be followed. If you die before your required beginning date and before choosing a payment option, your Thrift Plan account will be paid as follows: If you re single, your account balance will be paid to your beneficiary(ies). But if you don t designate any beneficiary(ies) before your death, 100% your account balance will be paid to your estate. If you re married, your account balance will be paid to the beneficiary(ies) you designated with your spouse s valid consent. But if you don t designate any beneficiary(ies), with your spouse s valid consent, 100% of your account balance will be paid to your surviving spouse. If the account balance is payable to your estate, in some cases the estate may be small enough that an affidavit of small estate can be submitted. The court will either recognize the personal representative you named in your will or appoint a personal representative. This person must file the necessary paperwork with Deseret Mutual and we release your funds to the personal representative on behalf of your estate. SPOuSAL PROTECTION The law protects your spouse s rights if you die before your required beginning date and before choosing a payment option. The Thrift Plan pays an automatic benefit to your spouse if you meet the following requirements: You re legally married when you die You die before your required beginning date and before payments begin Your spouse is still alive You haven t selected a payment option or designated a beneficiary(ies) Your beneficiary(ies) designation isn t valid such as you name someone other than your spouse without your spouse s written, notarized consent The plan provides that your spouse is the automatic beneficiary of 100% of your account balance at the time of your death. For example, if your account balance is $80,000 when you die and the beneficiary(ies) you have named is: 2015 PAGE 11

13 your spouse, then your spouse receives the entire $80,000 no one, then your spouse receives the entire $80,000 your sibling with your spouse s written, notarized consent, then your sibling receives the entire $80,000 Waiver Election Federal law allows you to waive this spousal protection if both you and your spouse agree to name a primary beneficiary(ies) other than, or in addition to, your spouse. This waiver is required even if you name a trust as your primary beneficiary. You may change or revoke the election as often as you wish, but your spouse must consent to a change. Also, if your marital status changes, you must complete a new beneficiary form and get your new spouse s consent. The waiver election is valid only for the spouse consenting to the waiver. divorce divorce and and qdros qdros Deseret Mutual pays the benefit according to the provisions of a Qualified Domestic Relations Order (QDRO). divorce If you divorce after beginning employment with a participating employer, you must provide Deseret Mutual with the following documentation: A copy of the divorce decree. This includes the clerk s or judge s stamp and signature certifying the decree s completeness and authenticity. If the document is missing pages or information, it isn t court certified. Copies of any settlements, agreements, exhibits, or attachments that are part of the divorce decree. ORdERS A Domestic Relations Order (DRO) includes any judgment, decree, or order made according to state domestic relations laws pertaining to child support, alimony, or marital property rights awarded to an alternate payee (such as a spouse, former spouse, child, or another dependent). Deseret Mutual pays benefits to an alternate payee according to the provisions of a QDRO. A QDRO is a DRO that has been qualified by Deseret Mutual and that creates an alternate payee s right to receive all or a portion of the payable retirement benefit. A QDRO can t provide a benefit that isn t available from the plan. PROCEduRES Federal law requires Deseret Mutual to follow established procedures to determine when a DRO is a QDRO and how benefits are distributed. Before submitting a QDRO to a judge, you may send us a draft to determine if it meets the terms of our plan. This saves time and helps lower your court costs for repeated filings. Please note Deseret Mutual must receive a court-certified QDRO that meets all of the plan requirements before we can divide your benefit. Your QDRO must specify a dollar amount or a percentage of your current Thrift Plan account balance to be put into an account for your alternate payee. (Deseret Mutual employees won t perform the calculations needed to determine the specific dollar amount or specific percentage of the current balance.) If you have a pending divorce and are an active participant ready to begin receiving your savings plan benefit, then Deseret Mutual won t be able to process your benefit until the alternate payee s rights are determined. If you and your spouse have separated and have started any legal action, Deseret Mutual is required to freeze your account. Until the divorce is finalized, we cannot approve requests for loans, withdrawals, or changes to your beneficiaries. The administrative cost to set up a QDRO will be paid from your account. The cost ranges from $100 to $500. Payments to Beneficiary(ies) After your death, Deseret Mutual transfers your Thrift Plan account balance into a new account established for your beneficiary(ies). Your beneficiary(ies) can withdraw some or all of the funds in the new account, based on plan guidelines, without needing to prove financial hardship. Your beneficiary(ies) is responsible for paying all taxes due after making withdrawals from the account. If you select a payment option and you die after payments begin, the payment option you selected determines the method of payment to your beneficiary(ies) or joint annuitant. Plan guidelines apply. If you die before receiving payments, payments are made based on your current beneficiary(ies) designation: If your beneficiary is your spouse, your spouse may: take a lump sum payment set up monthly payments if your Thrift Plan account balance is at least $5,000 and your spouse is at least age 55. Your surviving spouse can choose a monthly 2015 PAGE 12

14 annuity payment option, the Monthly Flexible Installment Payment Option, or the Fixed Dollar Installment Payment Option any time before your required beginning date. But your surviving spouse cannot choose a joint and survivor annuity payment option, even if your spouse remarries leave the account open until your required beginning date. Your surviving spouse may make withdrawals and current balance transfers, based on plan guidelines. Your surviving spouse may also be eligible for the Annual Payment Option make a direct rollover from your Thrift Plan account into an IRA or other qualified plan. The 20% mandatory tax withholding rules won t apply (the withholding rules apply to withdrawals) If you are single or if your beneficiary(ies) is someone other than your spouse, your beneficiary(ies) may: take a lump sum payment set up monthly payments if your Thrift Plan account balance is at least $5,000 and the beneficiary(ies) is at least age 55. Your beneficiary(ies) may choose a monthly annuity payment option, the Monthly Flexible Installment Payment Option, or the Fixed Dollar Installment Payment Option for up to five years. Federal guidelines apply. The payments must begin by December 31 of the year following your death leave the account open until December 31 of the fifth year following your death. Until that time, your non-spouse beneficiary(ies) can still make withdrawals and current balance transfers, based on plan guidelines. At the end of the fifth year, your beneficiary(ies) must close the account directly roll over to an IRA or an inherited IRA. The 20% mandatory tax withholding rules won t apply. But other federal guidelines apply, so contact a tax advisor If your beneficiary is a trust, or if your account defaults to your estate, your trustee or executor may choose: a lump sum payment a monthly annuity payment option (subject to federal limits or plan guidelines), the Monthly Flexible Installment Payment Option, or the Fixed Dollar Installment Payment Option for up to five years if you were 55 or older at the time of your death and your Thrift Plan account balance is at least $5,000. The payments must begin by December 31 of the year following your death to leave the account open until December 31 of the fifth year following your death. Until that time, your trustee or executor can make withdrawals and current balance transfers, based on plan guidelines. At the end of the fifth year, your trustee or executor must close the account and take the remaining account balance a direct rollover to an IRA or an inherited IRA in the case of a trust. But an estate cannot make a direct rollover. The 20% mandatory tax withholding rules won t apply. But other federal guidelines apply so contact a tax advisor Planning Tools Deseret Mutual provides a number of tools to help you with your investing and retirement planning, such as financial planners and online tools. To see your personalized information, visit You ll need your Deseret Mutual ID number. After you log in, select the Retirement tab. You can access a wealth of personal and benefit information and financial calculators from this Retirement page. Your employer, through Deseret Mutual, offers financial planners who provide workshops and consultations at no charge to you. These planners are available to offer general objective financial counsel to help you plan for your future. They can help you to clarify goals, gather information, analyze your situation, develop solutions, and take action. But our financial planners don t provide specific tax or investment advice. Contact our financial planning group at finplanning@dmba.com, in the Salt Lake City area, or toll free , ext Fiduciary duties The Thrift Plan qualifies under Section 401(k) of the Internal Revenue Code for before-tax and Roth after-tax contributions and it qualifies under Section 401(a) for after-tax contributions. It complies with the Employee Retirement Income Security Act (ERISA) and 404(c), permitting you to make independent investment decisions about the assets in your account, within the available funds. Pursuant to section 404(c) of ERISA, the Thrift Plan provides for individual accounts and permits you, as a participant, or your beneficiary(ies) to make independent investment decisions about the investment of the assets in your account within the available funds. The Thrift Plan is governed by Section 404(c) of ERISA and in accordance with its plan document. It is for the exclusive purpose of providing benefits to participants at reasonable administrative expenses PAGE 13

15 Deseret Mutual and its employees are required to use the care, skill, prudence, and diligence required under the circumstances in administering the Thrift Plan. Best efforts are used to select and monitor appropriate investments and investment managers and to take all other action necessary to fulfill our fiduciary duties as prescribed by ERISA. You (not the Thrift Plan, Deseret Mutual including financial planners nor any of the participating employers) are solely responsible for investment returns that are the direct and necessary result of your decisions regarding the investment of the assets in your Thrift Plan account. Participant s Rights Rights As a participant in the Plan, you are entitled to certain rights and protections under ERISA. RIGHT TO INFORmATION ERISA provides that as a Thrift Plan participant, you re entitled to: a) Examine, without charge, at Deseret Mutual s office and other specified locations, all Plan documents, including insurance contracts and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefits Administration. b) Obtain copies of all plan documents and other plan information upon written request to Deseret Mutual. Deseret Mutual may impose a reasonable charge for the copies. c) Receive a summary of the plan s annual financial report. Deseret Mutual is required to furnish each participant with a copy of this summary annual report. d) Obtain a statement telling you the total amount you have in your Thrift Plan account and the amount you would have a right to receive if you stop working under the plan now. If you do not have a present right to any amount in your Thrift Plan account, the statement will tell you how many more years you have to work to get a non-forfeitable right in your account. This statement must be requested in writing and is not required to be given more than once a year. Deseret Mutual must provide the statement free of charge. PRudENT ACTIONS BY PLAN FIduCIARIES In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the plan. The people who operate the Thrift Plan, called fiduciaries, have a duty to do so prudently and in the interest of you and other participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a Thrift Plan benefit or exercising your rights under ERISA. ENFORCING YOuR RIGHTS If your claim for a Thrift Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without a charge, and to appeal any denial, all within certain time schedules. You may also file suit in a state or federal court. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Deseret Mutual and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require Deseret Mutual to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of Deseret Mutual. In addition, if you disagree with the plan s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that Deseret Mutual fiduciaries misuse the Thrift Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay court costs and legal fees. If you re successful, the court may order the person you have sued to pay these legal fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. HELP WITH YOuR questions If you have any questions about the Thrift Plan, you should contact Deseret Mutual. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from Deseret Mutual, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfare Benefits Administration. YOuR RESPONSIBILITIES You re responsible for providing Deseret Mutual with information that is to the best of your knowledge both truthful and accurate. If you willfully and knowingly provide untruthful or inaccurate information, benefits will be determined according to the true facts, and disciplinary action may be taken PAGE 14

16 Plan Plan Administration Fees Fees Each participant s Thrift Plan account is charged a quarterly account fee to help cover expenses such as customer service, plan communications, quarterly statements, and other recordkeeping services. Empower Retirement (formerly Great-West Financial), our Thrift Plan recordkeeper, will deduct a basic annual fee of $20 a calendar year from every plan account ($5 deducted per quarter per plan). The fee amount may be adjusted periodically based on the actual costs incurred. Investment Fees For additional information about fees charged on specific funds, see the specific fund prospectus. Transaction-based Fees Transaction-based fees are fees for optional services offered to you by the Thrift Plan. Transaction-based fees are charged directly to your account if you take advantage of these optional services. The following is a list of the optional services and the charges for each. Return of Excess Contributions / Deferrals: For processing and the calculation of earnings or losses, there is a $25 fee per check. Please note: This fee schedule is subject to change. Assignment Your rights as a participant of the Thrift Plan may not be assigned. This means funds in your account may not be used as collateral for loans or assigned to creditors, except as pursuant to a QDRO Plan Plan Information Plan Name: Plan Sponsor: Plan Administrator: Deseret Mutual Thrift Plan Deseret Mutual Benefit Administrators 150 Social Hall Avenue, Suite 170 Salt Lake City, Utah Deseret Mutual Benefit Administrators 150 Social Hall Avenue, Suite 170 Salt Lake City, Utah Agent for Legal Process: Scott Eastmond, General Counsel 150 Social Hall Avenue, Suite 170 Salt Lake City, Utah Employer ID Number Plan Number: 003 Type of Plan: Defined contribution profit-sharing plan with a cash or deferred arrangement Type of Administration: Benefits provided by the plan are NOT insured by the Pension Benefit Guaranty Corporation (PBGC) under Title IV of the Employee Retirement Income Security Act (ERISA) because the insurance provisions under ERISA are not applicable to this type of plan Plan Year: The plan s records are maintained on a 12-month period of time from January 1 to December 31. This is known as the plan year Participating Employers: Please see the General Information section of your Benefits Handbook for more information Notification of discretionary Authority / Appeals Deseret Mutual has full discretionary authority to interpret the Thrift Plan and to determine eligibility. Deseret Mutual also has the sole right to interpret plan terms. All Deseret Mutual decisions relating to plan terms or eligibility are binding and conclusive. If you have questions concerning this authority, how this plan is managed, or you wish to appeal a benefit decision, you may contact our plan administrator: Scott Eastmond, General Counsel Deseret Mutual Benefit Administrators 150 Social Hall Avenue, Suite 170 Salt Lake City, Utah or Notification of of Benefit Changes The Thrift Plan is administered according to federal regulations. Deseret Mutual reserves the right to amend or terminate the plan at any time. If benefits change, we ll notify you as required by law. Plan Features Your Account Account Information Rollovers into Your Thrift Plan Account Beneficiaries Investment Funds Mutual Funds Preset Mixes Investment Education and Risk Changing Your Investment Direction Current Balance Transfers Rebalancing Thrift Plan Withdrawals Spousal Consent Employment Status Changes Tax Considerations Retirement After Employment Ends Lump Sums and Direct Rollovers Payment Options After Employment Ends Payment Options After Your Death Divorce and QDROs Payments to Beneficiary(ies) Planning Tools Fiduciary Duties Participant s Rights Plan Administration Fees Assignment Plan Information Notification of Discretionary Authority / Appeals Notification of Benefit Changes 2015 PAGE 15