Stark Bank Group Enrollment Booklet

ARTICLE IV DISABILITY BENEFITS

How is disability defined?

Under the Plan, disability is defined as a physical or mental condition resulting from bodily injury, disease, or mental disorder which renders you incapable of continuing your usual and customary employment with us. Your disability will be determined by a licensed physician chosen by the Administrator.

What happens if I become disabled?

If you become disabled while a participant, you will be entitled to 100% of your account balance. Payment of your disability benefits will be made to you as if you had retired. However, if the value of your vested benefit does not exceed $5,000, then a distribution will be made to you as soon as administratively feasible on or after the Anniversary Date coinciding with or next following your termination of employment.

ARTICLE V FORM OF BENEFIT PAYMENT

How will my benefits be paid?

If your vested benefit under the Plan does not exceed $5,000, then your benefit must be distributed to you in a single lump-sum payment. If your vested benefit under the Plan exceeds $5,000 you may elect, subject to the following paragraph, to receive a distribution under one of the following methods:

 a single lump-sum payment in cash.

 installments in cash over a period of not more than your assumed life expectancy (or the assumed life expectancies of you and your beneficiary).

Notwithstanding the above, unless you elect in writing a longer period, Company Stock will be distributed to you in cash in substantially equal installments over a period not longer than five years. A special rule may spread the distribution of the Company Stock in the account of participants with large account balances over an even longer period of time.

May I delay the receipt of benefits?

Yes, you may delay the receipt of benefits unless a distribution is required to be made, as explained earlier, because your vested benefit under the Plan does not exceed $5,000. However, if you elect to delay the receipt of benefits, there are rules which require that certain minimum distributions be made from the Plan. If you are a 5% owner, distributions are required to begin not later than the April 1st following the end of the year in which you reach age 70 1/2. If you are not a 5% owner, distributions are required to begin not later than the later of the April 1st following the end of the year in which you reach age 70 1/2 or retire. You should see the Administrator if you feel you may be affected by these rules.

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