Your Guide to Enrollment

Transcription

1 Your Guide to Enrollment

2 Dear Cablevision Employee: This guide will provide information to help you maximize the retirement benefits program Cablevision provides to its employees. Retirement is one of the most important stages of life. Cablevision offers you a comprehensive program to prepare you for retirement. Cablevision s program is just one of the pieces you will need to create a strategy to make sure you have the income you will need in retirement. Your strategy for retirement income may also include Social Security benefits and your personal savings. Cablevision will help with both a savings plan to which you can contribute and a company-funded pension plan. The savings plan is called the Cablevision 401(k) Savings Plan (the 401(k) Plan ), while the pension plan is named the Cablevision Cash Balance Pension Plan (the Pension Plan ). Together, these two plans constitute Your Retirement benefits program. Fidelity provides recordkeeping services for the Retirement benefits program. Here s some good news: As an employee who is eligible for participation in the 401(k) Plan, you can enroll immediately. It s simple to get started. You make contributions to the 401(k) Plan through automatic payroll deductions, and then choose among the Plan s investment options for your contributions. Or you can enroll in the Professional Management program to have your investments chosen for you by Financial Engines an independent, registered investment advisor engaged by Cablevision to offer services to our 401(k) Plan participants. Details on how to enroll and automatic enrollment in the 401(k) Plan are included on pages 2 and 3. There are also some details inside about the Pension Plan. In general, you will become eligible to participate in the Pension Plan after you complete one year of service with the company. You will be notified once you become eligible. We invite you to enroll in the 401(k) Plan today it is a convenient way to save for retirement. You will benefit from: Matching contributions. Cablevision helps you accumulate retirement savings through employer matching contributions. Convenient auto enrollment. Cablevision encourages you to save for your future. If you are a regular, full-time employee, hired or rehired on or after January 1, 2010, you will be automatically enrolled in the 401(k) Plan at a 6% pre-tax contribution rate beginning with the first pay period 45 days after your date of hire. Investment options. You have the flexibility to select from a broad range of low-cost, high-quality investment options. Professional management of your account. If you choose to enroll in Professional Management, or if you are enrolled automatically in Professional Management through automatic enrollment in the 401(k) Plan, Financial Engines will work with Fidelity to handle all the transactions to put an investment strategy into action and will continue to manage your account over time to help keep you on track. If you have questions about Your Retirement benefits program, call the Cablevision Service Center at Fidelity at You may also log on to

3 Inside 2 Enroll in the 401(k) Plan Information on setting up your password and how to enroll in the Plan 3 Automatic Enrollment in the 401(k) Plan Instructions and information for regular, full-time employees to be automatically enrolled in the Plan 4 About the 401(k) Plan Information about your contributions, company matching contributions, rollovers, loans, and withdrawals 7 401(k) Plan Fees Information about 401(k) Plan fees 8 401(k) Plan Fee Credits Information about 401(k) Plan fee credits 9 Financial Engines Consider delegating the investment management of your 401(k) Plan account to professionals 11 About the Pension Plan Information about eligibility, credits, and access 12 Investing Basics Before you select your funds, know the basics 15 About the 401(k) Plan Investment Options Information about the broad selection of funds to choose from 1

4 EnrO ll I n the 401(k) PlA n Fidelity NetBenefits at Cablevision Service Center at Fidelity To enroll in the 401(k) Plan and gain access to your account, visit Fidelity NetBenefits at If this is the first time you are visiting NetBenefits, you must create a password. Click Register Now and follow the step-by-step instructions to create your password. At you ll be guided through the enrollment process. You will need to select how much of your pay to contribute to the 401(k) Plan and choose the funds in which you want to invest. Log In New User? Register Now If you have an account on Fidelity.com, use the same username and password. Need Help Logging In? Username Having trouble with your username or password? Frequently Asked Questions Remember Me Security Notice Password Log In Log in to NetBenefits Worldwide FMR LLC. All rights reserved. Covered, in part, by U.S. patent number 5,991,878 Investment and workplace savings plan products and services offered directly to investors and plan sponsors: Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street Smithfield, RI Investment and workplace savings plan products and services distributed through investment professionals: Fidelity Investments Institutional Services Company, Inc., 100 Salem Street, Smithfield, RI NetBenefits Technical Help Terms of Use Privacy The Fidelity Customer Protection Guarantee Security Screenshot is for illustrative purposes only. Alternatively, you may call the Cablevision Service Center at Fidelity at and follow the prompts to create your password and enroll in the 401(k) Plan. Please note: If you are currently a Fidelity customer, either through a personal account or a prior workplace savings plan, you can use your existing password. If you forgot your password, click Having trouble with your user name or password? If you are a regular, full-time employee and you do not enroll in the 401(k) Plan within 45 days of your hire date, you will be automatically enrolled in the 401(k) Plan. See page 3 for more details. 2

5 AutOMAt IC EnrO llment I n the 401(k) PlA n Instructions and information for regular, full-time employees to automatically enroll in the Plan. Automatic Enrollment: Regular, Full-time Employees Cablevision encourages you to save for your future. To help you with this, if you are a regular, full-time employee, hired or rehired on or after January 1, 2010, you will be automatically enrolled in the 401(k) Plan at a 6% pre-tax contribution rate beginning with the first pay period 45 days after your hire date, unless you enroll in the 401(k) Plan sooner. If you are a part-time or temporary employee (or a regular, full-time employee who wishes to enroll sooner than 45 days after your date of hire), please follow the directions on the previous page to enroll in the 401(k) Plan. At any time after you enroll, you may increase your pre-tax contribution percentage up to 50% of your eligible pay, subject to annual IRS limits. You may also decrease your contribution rate at any time. To adjust your contribution percentage, visit or call the Cablevision Service Center at Fidelity at If you are automatically enrolled in the 401(k) Plan, you will also be automatically enrolled in the Financial Engines Professional Management program. Financial Engines is an independent, registered investment advisor engaged by Cablevision to offer services to Cablevision 401(k) Plan participants. With the Professional Management program, a team of professionals using proprietary tools analyzes the investments available in the Cablevision 401(k) Plan and selects a personalized mix designed to be appropriate for you. this program is available at no cost to Cablevision employees. For more information on the services of Financial Engines, see page 9. If you are a regular, full-time employee, hired or rehired on or after January 1, 2010, and do not wish to be enrolled in the 401(k) Plan, you must access or call the Cablevision Service Center at Fidelity at within 45 days of your hire (or rehire) date to decline enrollment. In order to decline enrollment, you must set your contribution rate to 0%. If you do not opt out of the 401(k) Plan, you will be enrolled automatically. Payroll contributions made to the 401(k) Plan will not be refunded to employees who do not opt out within 45 days of their hire date or who choose to opt out at a later date. 3

6 A BOut the 401(k) PlA n The 401(k) Plan can help you establish and maintain a steady, convenient retirement savings plan. It gives you a tax break now (if you elect to make pre-tax contributions) and allows your entire account to grow on a tax-deferred basis. It helps your pre-tax savings grow through company matching contributions. the 401(k) Plan is partly funded by Cablevision but largely controlled by you. It s a defined contribution plan, meaning it s defined by the contributions you and the company make to it. You decide whether to enroll and you contribute at any rate you want within the Plan guidelines and government limits. The Plan offers a lot of flexibility. You can change or stop your contributions at any time. You choose the investments from the investment fund lineup as you see fit. You can change your investment choices at any time. You also decide whether to delegate investment management to Financial Engines. Financial Engines provides personalized advice and 401(k) Plan account management. Available online, on paper, and by phone, advice and account management from Financial Engines is accessible to all and unique to each 401(k) Plan participant s goals and financial circumstances. See page 9 for more detailed information on the valuable services provided by Financial Engines. Under certain circumstances, you may be able to borrow or withdraw funds from your account. As a result, you have broad access to, and control over, your 401(k) Plan account, including requesting an account statement at any time. Your Contributions Types of Contributions Pre-tax Contributions Your pre-tax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period. It could mean more money in your take-home pay versus saving money in a taxable account. roth After-tax Contributions A Roth contribution to your 401(k) Plan account allows you to make after-tax contributions and take any associated earnings completely tax free at retirement as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five years after your first Roth contribution to the 401(k) Plan and after you have attained age 59½ years, become disabled, or die. For more information, please log on to NetBenefits at and select Create a Retirement Strategy under the Accounts tab. Under Learning on the left side of the page, you will see a tab called About 401(k)s. Select that tab and click Roth 401(k). regular After-tax Contributions In addition to Roth after-tax contributions, you may make regular after-tax contributions to the 401(k) Plan. Unlike Roth after-tax contributions, any associated earnings on regular after-tax contributions are not tax free at retirement. 4

7 Contribution Limits Through automatic payroll deductions you may contribute up to 50% of your eligible pay in pretax contributions, Roth after-tax contributions, or a combination of pre-tax and Roth after-tax contributions, up to the annual IRS dollar limits. You may contribute up to 10% of your eligible pay in regular after-tax contributions. The combined total of up to 50% in pre-tax and/or Roth after-tax contributions plus up to 10% in regular after-tax contributions cannot exceed 60% of your eligible pay. If you are considered a highly compensated employee, you may contribute up to 25% of your eligible pay in pre-tax contributions, Roth aftertax contributions, or a combination of pre-tax and Roth after-tax contributions, up to the annual IRS dollar limits. You may contribute up to 10% of your eligible pay in regular after-tax contributions. The combined total of up to 25% in pre-tax and/or Roth after-tax contributions plus up to 10% in regular after-tax contributions cannot exceed 35% of your eligible pay. Catch-Up Contributions Eligible employees who are or will be 50 years of age or older during the calendar year may make additional catch-up pre-tax and/or Roth contributions during that year, up to IRS limits. Changing Contributions You may start, stop, or change your contributions at any time by visiting or by calling the Cablevision Service Center at Fidelity at Annual Increase Program The Annual Increase Program allows you to increase your 401(k) Plan savings contributions automatically each year. You select the amount and date for your annual increase, and the rest is automatic. Each year on the designated date, your contributions will increase by the amount you elected. You may enroll, change your elections, or withdraw from the program at any time by visiting or by calling the Cablevision Service Center at Fidelity at Company Matching Contributions Cablevision will contribute on your behalf 50% of the first 6% of eligible pay you contribute to the 401(k) Plan each payroll period in pre-tax and/or Roth 401(k) contributions. Please note: Only the first 6% of contributions are matched, regardless of whether your contributions are pretax, Roth after-tax, or a combination of pre-tax and Roth after-tax. Regular after-tax contributions are not eligible for company matching contributions. Eligible Pay Your eligible pay under the 401(k) Plan includes your basic earnings and, if applicable, paid commissions, overtime, shift differential, pay for unused sick or personal time (for certain employees), and standby pay. Eligible pay under the Plan does not include bonuses, fringe benefits, and other pay that is not received on a regular basis, or pay that is not part of your primary compensation structure. Investment Options Cablevision offers a broad selection of low-cost, high-quality investment options across a carefully balanced mix of asset classes and fund types. The resulting fund lineup includes 11 funds to choose from for your 401(k) Plan account. See the section About the 401(k) Plan Investment Options for more information. Vesting Vesting refers to the portion of your 401(k) Plan account balance to which you are entitled under the Plan rules. You are always immediately 100% vested in your own contributions and will become 100% vested in all company contributions as well as any related earnings after you complete three years of service. Service is measured from your date of hire. You earn a year of service for each 12-month period of employment with the company and all its affiliates. You also become 100% vested in your Plan account if while employed you reach age 65, die, or become totally and permanently disabled. 5

8 Beneficiary Designation It s important for your account to have an accurate beneficiary designation at all times. You may manage your 401(k) Plan beneficiaries online. To designate or change your 401(k) Plan beneficiaries online, visit After you have logged on, click the Your Profile tab at the top of the page. If you prefer to use a paper form, call the Cablevision Service Center at Fidelity at Rolling Money into Your 401(k) Plan Account If you have assets in another qualified retirement plan pre-tax, Roth 401(k), or after-tax you may roll these assets into your 401(k) Plan account if it is within the 401(k) Plan s provisions. To roll assets into your account, call the Cablevision Service Center at Fidelity at and request an Incoming Rollover Form. You may also print the form from at any time. After you log in to click More News on the right-hand side under Company News. Investment Changes You may move your money among the 401(k) Plan s investment options, or change how your future contributions are invested virtually any time, by logging in to or by calling the Cablevision Service Center at Fidelity at If you prefer, you may delegate investment management to Financial Engines by enrolling in the Professional Management program. Loan repayments (plus interest) to your plan account are automatically deducted from your pay through after-tax payroll deductions. You may have up to two loans at one time a loan for any purpose as well as a loan for the purchase of your primary place of residence. Alternatively, you may have up to two general purpose loans at one time. The repayment period for a general purpose loan may range from one year to five years, and you may choose the loan repayment period that suits you. The repayment period for a home purchase loan may extend up to 10 years. Again, you may choose the loan repayment period that suits you. Please call or check NetBenefits to see how much you have available to you in your account. For additional loan policies and conditions, or to initiate a loan virtually any time, visit Fidelity NetBenefits at or call the Cablevision Service Center at Fidelity at Withdrawals and Distributions Withdrawals from the 401(k) Plan are generally permitted when you terminate your employment, retire, reach age 59½, or if you become permanently disabled or have severe financial hardship as defined by the 401(k) Plan. Keep in mind that withdrawals are subject to income taxes and possibly to early withdrawal penalties. While you are employed with the company, you may withdraw up to 100% of your Rollover Contribution Account and 100% of your After-tax Contribution Account. For more information on withdrawals, visit or call the Cablevision Service Center at Fidelity at Loans Although your 401(k) Plan account is intended for the future, you may borrow from your account for any reason and repay yourself through automatic payroll deductions. You may generally borrow up to 50% of your vested account balance, up to $50,000. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. The minimum loan amount is $1,000. 6

9 401(k) PlA n FEEs This section provides important information about fees associated with the administration of your 401(k) Plan and the associated investment options. For the Pension Plan, Cablevision pays all investment management and plan administration fees. there are three types of 401(k) Plan fees: 1. Fund Management Fees: These fees go to the firms that manage the investment options and are incorporated into the net asset value (NAV) of each fund in the 401(k) Plan. This category is often the largest component of 401(k) Plan costs, and includes the investment management fee and other related operating costs of the funds in the 401(k) Plan. Although you pay these fees, they are not explicitly deducted directly from your 401(k) Plan account. Instead, they are typically paid by the fund and result in a reduction in the fund s investment return. These fees are expressed as an expense ratio, which is the percentage of a fund s net assets for a given period of time. The expense ratio does not include brokerage costs and various other transaction costs that may also contribute to a fund s total expenses, unless noted in the specific fund descriptions. In the section About the 401(k) Plan Investment Options, you will notice that the expense ratio for each fund in the 401(k) Plan is listed at the top of each description. The expense ratio varies depending on the fund s investment objective and style. For example, international funds often have higher expense ratios than domestic funds due to the additional costs of investing globally. Conversely, index funds typically have lower expense ratios than actively managed funds because an index fund invests to simply mirror a particular index s performance, whereas an actively managed fund invests to attempt to exceed an index s performance. In addition to the fund management fee, one of the funds in the fund lineup carries a short-term trading fee (see page 20 for more information). Please remember that fees are subject to change. If you have any questions about fees, call the Cablevision Service Center at Fidelity at Plan Administration Fees: These fees are charged for administration of the 401(k) Plan. While Cablevision absorbs a substantial portion of the cost associated with 401(k) Plan administration, participants also contribute to the cost of Plan administration. These fees are fixed, meaning that they will not increase as your account balance grows. The fixed per participant administration fee for active employees is $10 per calendar quarter, and the fee for former employees is $11.75 per calendar quarter. This fee will be automatically deducted from each 401(k) Plan participant s account. 3. transaction Fees: This category includes charges for 401(k) Plan features you might use that are not included in the 401(k) Plan administration fees. These expenses are based on the execution of a particular service, transaction, or event. For example, if you take a loan, a transaction fee will apply. 401(k) Plan loans: Each participant who requests a loan will pay a $50 loan processing fee. This fee will be automatically deducted from the participant s 401(k) Plan account at the time the loan is processed; it does not reduce the amount of the loan. Please keep in mind that any fees charged by Financial Engines are in addition to the fees listed above. For more information on Financial Engines fees, refer to the section on page 9, Financial Engines. 7

10 401(k ) Pl A n FEE Cr EDIts This section provides important information about fee credits associated with the administration of your 401(k) Plan and the associated investment options. Fee Credit Cablevision has negotiated a fee credit from Fidelity. Credit will be allocated to participants in the Plan who invest a portion of their Plan contributions in mutual funds for which Fidelity receives revenue to offset administrative costs. Any credit allocated to your Plan account will appear on your quarterly benefits statement, and will be invested in the fund to which this fee credit relates. Although fees and credits may be important factors in choosing investment options, it is important to ensure that you take into account several other considerations, such as time horizon, risk tolerance, and financial situation, when determining your investment approach and choosing the right investment mix. For more information regarding investment options and asset allocation, visit Fidelity NetBenefits at or call Fidelity Investments at To see a list of funds that provide revenue credit and the credit rate, please visit Fidelity NetBenefits at Once logged in and on the Cablevision home page, click CABLEVISION 401K SAVINGS PLAN and then click Plan Information and Documents and then click Participant Revenue Credit. Please remember that the credit rates are subject to change. Credits may be viewed in the Transaction History section of your Plan account. They will be listed on the date posted as REVENUE CREDIT. Credits will be posted after the end of each quarter. If you have any questions or need more information, please call the Cablevision Service Center at Fidelity at

11 F I n A n CIAl EnGIn E s Financial Engines provides two programs to 401(k) Plan participants to assist you in investing your 401(k) Plan account among the investment options in the Plan. For more information, you may reach Financial Engines by calling Professional Management With the Professional Management program, a team of professionals using proprietary tools analyzes the investments available in the 401(k) Plan and selects a personalized mix designed to be appropriate for you. Financial Engines works with Fidelity to handle all the transactions to put an investment strategy into action for you and continues to manage your 401(k) Plan account over time to help keep you on track. The Financial Engines Professional Management program is the 401(k) Plan s investment default. This means that if you do not make an investment election for your 401(k) Plan account, Financial Engines will automatically manage your 401(k) Plan account and select investments on your behalf. When first enrolled in the plan, if you do not make an investment election for your 401(k) Plan account, any contributions will be invested in the FFTW Income Plus Fund. If you remain in the FFTW Income Plus Fund after two or three payroll periods, you will be automatically defaulted into the Professional Management program managed by Financial Engines. Active, eligible employees pay no fee for this program. Cablevision pays the fee. For former employees, there is a program fee as shown in the chart below. Online Advice If you prefer to actively manage your 401(k) Plan account, Online Advice may be right for you. This easy-to-use Web site offers objective, professional advice to help you refine your investment strategy. Log on to for a personalized forecast showing how much your investments may be worth when you retire, and see a step-by-step action plan with specific investment recommendations. You can also fine-tune your strategy by exploring different contributions, risk levels, and retirement goals. To get started, log on to Fidelity NetBenefits at and click Tools & Resources then select Get Personalized Help from Financial Engines. PrOFEssIOnAl MAnAGEMEnt FEE schedule FOrMEr EMPlOyEEs 401(k) PlAn ACCOunt BAlAnCE AnnuAl PrOGrAM FEE Up to the first $5,000 0 basis points (0.00%) The next $95, basis points (0.45%) The next $150, basis points (0.35%) In excess of $250, basis points (0.20%) The program fee will be automatically deducted from the 401(k) Plan account of former employees every quarter. This amount will be based on the number of days the account was managed during the quarter and will be noted on the quarterly plan participant statement. For more information about these Financial Engines programs, please call any business day between 8:30 a.m. and 8:00 p.m. Eastern time. 9

12 PlEAs E r EAD thi s IMPOrtA nt I n FOr MAt IOn ABOut FI n A n CIAl EnGIn E s Cablevision is not responsible for the advice provided by Financial Engines or for the investment performance of the funds. Advisory services, including Professional Management and Online Advice, are provided only by Financial Engines Advisors L.L.C., a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Financial Engines is a registered trademark of Financial Engines, Inc. Used with permission. All rights reserved. Financial Engines is not affiliated with Fidelity Investments or its affiliates. Financial Engines does not guarantee future results. Advisory services may include a fee. For specific fee information please refer to the applicable terms and conditions. Financial Engines is a registered trademark of Financial Engines, Inc. Used with permission. All rights reserved. Financial Engines is not affiliated with Fidelity Investments or its affiliates. The information on page 9 has been provided by Financial Engines. Financial Engines Important Information Forecasts, projected outcomes, or other information generated regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. In addition, results may vary each time a forecast is generated for you. Investment Choices: Your range of investment choices has been designated by you or your employer, the Plan or its representatives, and not by Financial Engines. Investment Analysis Methods: Portfolio forecast estimates are not guarantees of future results, but only reasonable estimates based upon information about you and your retirement accounts and forward-looking models of the economy and securities markets that utilize data such as historical returns, historical correlations, expected growth rates, and calculated risk premiums. Because past performance is not an accurate predictor of the future, and reliance on historical and current data necessarily involves inherent limitations, you must understand that the estimates are only a tool to be used in evaluating your retirement portfolio. Forecast amounts are in today s dollars, which means that they have been adjusted for inflation. Forecasts are created by generating thousands of hypothetical future economic scenarios to evaluate how an investment portfolio might perform under a variety of circumstances, including changing interest rates, inflation, and market conditions. In general, portfolio allocations are designed to optimize the opportunity for potential future value relative to the applicable risk level. The estimated value of your investments assumes participation in the 401(k) Plan until retirement at your current contribution rate, and it also includes any additional investments you may have told us about. Forecast amounts reflect the planned adjustments to your risk level as you get closer to retirement. CPY

13 A BOut the P E nsion PlA n Your future financial security could be compared to a three-legged stool. One leg is your personal savings, including your savings in the 401(k) Plan. The second leg is Social Security. The third leg is your employer s pension plan. The company s pension plan is the Cash Balance Pension Plan. The Pension Plan is entirely funded and controlled by Cablevision. It s a defined benefit plan meaning it s defined by the benefit you receive when you leave Cablevision. The company automatically enrolls participants based on the Plan guidelines. Your account is credited with annual company Pay Credits, based on pay and age during the time you are an eligible employee, as well as with monthly interest credits while your account is in the Plan. The benefit is payable after your employment with the company ends, or upon your retirement from Cablevision. The company sets money aside to pay the promised benefits, invests those funds, and bears the risk of unfavorable investment returns. Eligibility Eligible employees begin participation on the first day of the month on or after completion of one year of service. You do not need to take any action in order to participate in the Pension Plan. you will receive a notice once you become eligible. Annual Pay Credit As of the end of each year in which an employee is eligible to participate and completes at least 800 hours of service (including hours of service before becoming eligible to participate in the Pension Plan), the company will credit an account in the Pension Plan with a Pay Credit. your AGE As OF DEC 31 Less than 35 years 3% % % % % % 60+ 9% PErCEntAGE OF ElIGIBlE PAy Monthly Interest Credit In addition to the annual Pay Credit allocated to your account, the company will credit your account balance each month with interest. The interest credit is based on the average (rounded to the nearest 100th of 1%) of the daily yields on 30-year Treasury securities as determined and published by the Internal Revenue Service for the months of September, October, and November of the previous year. Vesting Vesting refers to the portion of your Pension Plan account balance to which you are entitled under the Pension Plan rules. You are considered 100% vested after you have completed three years of service. Vesting is a guarantee that you will receive the benefits that you have earned, regardless of whether you are still working for the company at the time of retirement. Vesting credit is gained by service with the company in accordance with the vesting schedule. Once you are vested in a benefit, you own that benefit, and it can never be taken away. In legal terms, you are said to have a nonforfeitable right to your benefit. Accessing Your Pension Plan Account After you have become eligible for the Pension Plan and have begun receiving pay credits, you may access your account, view your accrued benefit, and model various retirement dates by visiting Your vested Pension Plan account is not available until you leave the company or reach normal retirement age. The company sets money aside to pay the promised benefits, invests those funds, and bears the risk of unfavorable investment returns. 11

14 I n VEstI n G BA s ICs To build your portfolio which simply means selecting investment options in your 401(k) Plan account you should have an investment strategy. Ideally, an investment strategy maximizes your investment return, subject to your personal risk tolerance. There are some important concepts to understand when selecting the combination of funds for your 401(k) Plan account. If you need any help, please call the Cablevision Service Center at Fidelity at Time Horizon Time is a powerful ally of any investor. Not only will investments generally increase over time through the power of compounding, but time can also help smooth out the inevitable ups and downs of the financial markets. Your investment strategy will depend heavily on just how much time you have until you ll need your money. Risk Tolerance With investing comes risk. There is the chance that you might lose money on your investments (this is called investment risk ). But you have to balance this risk with inflation risk, which is the chance that your investments will not earn you enough to keep pace with the rising cost of living. Asset allocation and diversification help balance these risks, but keep in mind that neither diversification nor asset allocation ensures a profit or guarantees against a loss. Asset Allocation Asset allocation is simply the process of distributing your 401(k) Plan account balance among three different kinds of asset classes. This process strives to optimize the risk and reward tradeoff based on your specific situation and goals. Asset classes are three general types of investments: short-term investments (or stable value), bonds, and stocks. The 401(k) Plan offers options within all three asset classes. Your strategy for selecting your combination of funds will help guide just how much of your money is invested in each asset class. stable value investments are concerned primarily with stability. They generally buy investment contracts issued by major insurance companies, banks, and other approved financial institutions and short-term investments to provide for liquidity needs. An investment contract operates like an unsecured loan. Units of these investments are not backed by the investment manager or the plan sponsor, and are not insured by the FDIC. Stable value funds may also invest in fixed-income mutual funds that purchase bonds. Stable value funds strive to maintain a $1 share price, which means that they seek to avoid losses, but there is no assurance that they will be able to do so. They typically have higher returns than money market funds. The stable value fund in the 401(k) Plan is the FFtW Income Plus Fund. For more information on this fund, see About the 401(k) Plan Investment Options. Bond investments sometimes called fixedincome investments purchase bonds of different types, maturities, and quality. These funds typically have higher returns than money market and stable value funds, but have higher volatility, and they typically have lower returns than equity funds, with comparably less volatility. The bond fund in the 401(k) Plan is the PIMCO total return Fund Institutional Class. For more information on this fund, see About the 401(k) Plan Investment Options. 12

15 stock investments sometimes called equity investments invest mostly in the stocks of different types of companies: foreign, domestic, or both. These funds typically have higher returns over the long term than bond funds, but tend to have higher volatility. The stock or equity investments in the 401(k) Plan are varied. The domestic equity investment funds, which invest in U.S.-based companies, include: Vanguard Institutional Index Fund Institutional Plus shares Victory Diversified stock Collective Fund Vanguard Mid-Cap Index Fund Institutional Plus shares hartford MidCap hls Fund Class IA Vanguard small-cap Index Fund Institutional shares target small Capitalization Value Portfolio Class t Cablevision stock Fund* The International/Global stock investment funds include: spartan International Index Fund Fidelity Advantage Institutional Class MFs Institutional International Equity Fund Diversification Diversification is designed to help reduce your overall risk by owning several types of funds with different objectives. There are several ways to diversify your investments: Diversification Passive vs. Active You ll notice on page 15 that the Domestic Equity and International/Global categories are segmented into Passive and Active. What does this mean? Each equity fund in the 401(k) Plan is a collection of company stocks. The fund manager selects the combination of stocks based on the fund s objective. In order to evaluate the performance of a fund, it is often compared to a benchmark or index. There are many different indexes depending on the type of fund. For example, the s&p 500 Index, created by the Standard & Poor s Company, is a collection of 500 stocks that are considered to be widely held. The S&P 500 Index is weighted by market value, and its performance is thought to be representative of the stock market as a whole. A fund s performance may be compared with that of the S&P 500 Index to evaluate its performance. Passive funds commonly known as index funds do not seek to beat or exceed their benchmark, but, rather, to match the benchmark s performance. Because the investment decisions made by the fund manager for each fund are automatic to mirror its particular index these funds are designed to provide a broad selection of investments at relatively low cost. The cost is illustrated in the expense ratio; for more information on expense ratios, see the section 401(k) Plan Fees. These funds may also require less research by you. You can expect that the performance of an index fund will generally follow the performance of its particular index. Although you may not need to research how stocks and bonds are chosen, you should always be aware of the level of risk you are taking. Active funds commonly known as actively managed funds seek to beat or exceed their benchmarks. Unlike the index funds, the managers of these funds do not make automatic decisions to mirror an index. These fund managers often have broad flexibility to actively seek out investments that they believe will exceed the performance of a particular index. As a result, these funds are called actively managed. Because managing the fund often involves a great deal of research and the transactions within the fund are often more frequent, expenses tend to be higher than those of passive funds. *Participant investment elections to this fund may not exceed 10%. Although you may exchange out of the fund, exchanges into the fund are disallowed. Individuals who are not employed by Cablevision Systems Corporation or one of its subsidiaries are not permitted to make contributions to the Cablevision Stock Fund. 13

16 Diversification Large vs. Mid vs. Small Similar to the way a fund s manager may invest passive vs. active the fund manager may invest in small, mid-size, or large companies. What does this mean? The size of a company is an important type of investment style. As you review the funds in the 401(k) Plan, you ll notice they are categorized by cap size. Market capitalization or cap size represents the aggregate value of a company or stock. It is obtained by multiplying the number of shares outstanding by their current price per share. Different sized companies have varying risks and performance potential. Generally, the smaller a company, the more investment risk it may carry. large cap generally refers to companies that have more than $10 billion total market capitalization. Mid cap generally refers to companies that have from $2 billion to $10 billion total market capitalization. small cap generally refers to companies that have less than $2 billion total market capitalization. Given the broad selection of 401(k) Plan investment options, you should be able to construct a well-diversified portfolio. Although diversification does not guarantee against loss, selecting many different types of investments may reduce the overall risk for your 401(k) Plan account. Keep in mind that you may participate in the Online Advice program, where Financial Engines will provide online, personalized investment advice. If you prefer, you may enroll in Professional Management, where Financial Engines will manage the investment of your account among all the funds available in the 401(k) Plan. Call Financial Engines at for more information. 14

17 ABOut the 401(k) Pl A n I n VEstMEnt OPt IOns The funds in your 401(k) Plan cover a broad spectrum of investments. Listed below are all the funds available to you. If you would like a prospectus for any of the mutual funds, call the Cablevision Service Center at Fidelity at You ll notice the funds in the Domestic Equity and International/Global categories have two categories that include the descriptions Passive and Active. This is an important distinction in how the fund invests its assets and the relative fees associated with managing the fund. See the Investing Basics section for more information. Investment options to the left have potentially more inflation risk and less investment risk Investment options to the right have potentially less inflation risk and more investment risk stable VAluE FFTW Income Plus Fund BOnD PIMCO Total Return Fund Institutional Class DOMEstIC EQuIty large BlEnD PAssIVE Vanguard Institutional Index Fund Institutional Plus Shares large BlEnD ACtIVE Victory Diversified Stock Collective Fund MID BlEnD PAssIVE Vanguard Mid-Cap Index Fund Institutional Plus Shares MID GrOWth BlEnD ACtIVE Hartford MidCap HLS Fund Class IA small BlEnD PAssIVE Vanguard Small-Cap Index Fund Institutional Shares small BlEnD ACtIVE Target Small Capitalization Value Portfolio Class T IntErnAtIOnAl/ GlOBAl PAssIVE Spartan International Index Fund Fidelity Advantage Institutional Class ACtIVE MFS Institutional International Equity Fund COMPAny stock Cablevision Stock Fund With the exception of the Domestic Equity category, this spectrum is based on Fidelity s analysis of the characteristics of the general investment categories and not on the actual investment options and their holdings, which can change frequently. Investment options in the Domestic Equity category are based on the options Morningstar categories as of 7/30/13. Morningstar categories are based on a fund s style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not represent the investment options objectives and do not predict the investment options future styles. The plan sponsor and its investment consultant, not Morningstar, have made the distinction if the fund is either passive or active. Investment options are listed in relative risk order within each investment category. Risk associated with the investment options can vary significantly within each particular investment category, and the relative risk of categories may change under certain economic conditions. For a more complete discussion of risk associated with the mutual fund options, please read the prospectuses before making your investment decision. The spectrum does not represent actual or implied performance. 15

18 Fund Descriptions The funds are listed in relative risk order similar to the previous page. If you would like more information on any of the funds in the 401(k) Plan, call the Cablevision Service Center at Fidelity at Stable Value FFtW Income Plus Fund ticker: N/A Expense ratio: 0.15% as of 5/10/2013 Objective: Seeks to preserve your principal investment, while earning interest income. The fund will try to maintain a stable $1 unit price. However, the fund cannot guarantee this stable unit price and its yield will fluctuate as often as daily. strategy: The fund invests in investment contracts issued by insurance companies and other financial institutions and in fixed income securities as further described below. A portion of the fund is invested in a money market fund to provide daily liquidity. Investment contracts provide for the payment of a specified rate of interest to the fund and for the payment of principal when the contract matures. Some investment contracts are structured solely as a general debt obligation of the issuer. Other investment contracts ( wrap contracts ) are purchased in conjunction with an investment by the fund in fixed income securities, which may include United States Treasury bonds, Government agencies, corporate bonds, mortgage-backed securities, assetbacked securities and managed bond funds. There is no immediate recognition of investment gains and losses on the fixed income securities. Instead, the gain or loss is recognized over time by adjusting the interest rate credited to the fund under the wrap contract. All investment contracts and fixed income securities purchased for the fund must satisfy the credit quality standards of FFTW. The investment contract and fixed income security commitments are backed solely by the financial resources of the issuer. The portfolio strives to maintain a $1 unit price, but cannot guarantee that it will be able to do so, and its yield will fluctuate. risk: The Contracts and securities purchased for the fund are backed solely by the financial resources of the issuers of such Contracts and securities. An investment in the fund is not insured or guaranteed by the manager(s), the plan sponsor, the trustee, the FDIC, or any other government agency. The Contracts purchased by the fund permit the fund to account for the fixed income securities at book value (principal plus interest accrued to date). Through the use of book value accounting, there is no immediate recognition of investment gains and losses on the fund s securities. Instead, gains and losses are recognized over time by periodically adjusting the interest rate credited to the fund under the Contracts. However, while the fund seeks to preserve your principal investment, it is possible to lose money by investing in this fund. The Contracts provide for the payment of certain withdrawals and exchanges at book value during the terms of the Contracts. In order to maintain the Contract issuers promise to pay such withdrawals and exchanges at book value, the Contracts subject the fund and its participants to certain restrictions. For example, withdrawals prompted by certain events (e.g., layoffs, early retirement windows, spin-offs, sale of a division, facility closings, plan terminations, partial plan terminations, changes in laws or regulations) may be paid at the market value of the fund s securities, which may be less than your book value balance. Certain investment options offered by your plan (e.g., money market funds, short term bond funds, certain asset allocation/ lifecycle funds and brokerage window) may be deemed by the Contract issuers to compete with this fund. The terms of the Contracts prohibit you from making a direct exchange from this fund to such competing funds. Instead, you must first exchange to a non-competing fund for 90 days. While these requirements may seem restrictive, they are imposed by the Contract issuers as a condition for the issuer s promise to pay certain withdrawals and exchanges at book value. short-term redemption Fee note: None Who may want to invest: Someone who seeks a slightly higher yield over the long term than is offered by money market funds, but who is willing to accept slightly more investment risk. Someone who is interested in balancing an aggressive portfolio with an investment that seeks to provide stability of price. The investment option is a stable value fund (collective investment trust). BNP Paribas Investment Partners Trust Company is the Trustee of the Fund, and Fischer Francis Trees & Watts Inc. is the investment adviser, an affiliate of the Trustee. This description is only intended to provide a brief overview of the fund. This investment option is not a mutual fund. Expense ratios and other terms are subject to change. For up-to-date fund information, visit 16

19 Bond PIMCO total return Fund Institutional Class ticker: PTTRX Expense ratio: 0.46% as of 5/10/2013 Objective: The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. strategy: The fund normally invests at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment-grade debt securities, but may invest up to 10% of its total assets in high yield securities ( junk bonds ) rated B or higher by Moody s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. risk: In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. short-term redemption Fee note: None Who may want to invest: Someone who is seeking potential returns primarily in the form of interest dividends rather than through an increase in share price. Someone who is seeking to diversify an equity portfolio with a more conservative investment option. A mutual fund registered under PIMCO Funds, and managed by Pacific Investment Management Co LLC. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Large Cap Blend Passive Vanguard Institutional Index Fund Institutional Plus shares ticker: VIIIX Expense ratio: 0.02% as of 5/10/2013 Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. strategy: The fund employs an indexing investment approach designed to track the performance of the Standard & Poor s 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. risk: Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. short-term redemption Fee note: None Who may want to invest: Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth- and value-style investments and who is willing to accept the volatility associated with investing in the stock market. A mutual fund registered under Vanguard Institutional Index Funds, and managed by Vanguard Group, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. The S&P 500 Index is a registered service mark of The McGraw-Hill Companies, Inc., and has been licensed for use by Fidelity Distributors Corporation and its affiliates. It is an unmanaged index of the common stock prices of 500 widely held U.S. stocks that includes the reinvestment of dividends. Expense ratios and other terms are subject to change. For up-to-date fund information, visit 17

20 Large Cap Blend Active Victory Diversified stock Collective Fund ticker: N/A Expense ratio: 0.50% as of 5/10/2013 Objective: Seeks to provide long-term growth. strategy: Primarily invests in a diversified portfolio of common stocks and securities convertible into common stocks. The fund will primarily invest in the equity securities of large publicly held companies, including investments in a broad cross section of economic and industry sectors. Unit price and return will vary. risk: Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. short-term redemption Fee note: None Who may want to invest: Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth- and value-style investments and who is willing to accept the volatility associated with investing in the stock market. The investment option is a collective investment trust. It is managed by Victory. This description is only intended to provide a brief overview of the fund. This investment option is not a mutual fund. As of August 1, 2013, this fund changed its name from EB Diversified Stock Fund. Mid Cap Blend Passive Vanguard Mid-Cap Index Fund Institutional Plus shares ticker: VMCPX Expense ratio: 0.08% as of 5/10/2013 Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of mid-capitalization stocks. strategy: The fund employs an indexing investment approach designed to track the performance of the CRSP US Mid Cap Index, a broadly diversified index of stocks of mid-size U.S. companies. The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. risk: Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. short-term redemption Fee note: None Who may want to invest: Someone who is seeking the potential for longterm share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth- and value-style investments and who is willing to accept the generally greater volatility of investments in smaller companies. A mutual fund registered under Vanguard Index Funds, and managed by Vanguard Group, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. The CRSP US Mid Cap Index targets inclusion of the U.S. companies that fall between the top 70% 85% of investable market capitalization. Expense ratios and other terms are subject to change. For up-to-date fund information, visit 18