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McLarens Defined Contribution 401(k) Retirement Plan
Overview
McLarens Defined contribution 401(k) Plan has been adopted to provide you with the opportunity
to save for retirement on a tax-advantaged basis. As a participant in the 401(k) plan, you may elect
to contribute a portion of your compensation to the plan on a pre-tax or an after tax ROTH basis.
Eligibility
New Hires are eligible for participation in the 401(k) and applicable company matching funds on
the first day of the bi-weekly pay period following completion of 30 days employment, provided
they are at least eighteen (18) years of age, and are employees scheduled to work at least 20 hours
per week for longer than six months.
Automatic Enrollment and
Automatic Increase
New Hires are automatically enrolled at a deferral rate of 3%, unless they elect a different rate by
completing the on-line 401(k) enrollment through the T Rowe Price website:
no later than 30 days after their employment start date. A person may
enroll at a higher rate than 3%, and may also elect a zero percent contribution rate in order to
waive the automatic enrollment. If you are automatically enrolled at 3% or you enroll for an
amount less than 6%, each January 1 your contribution rate will automatically increase by 1% until
your contribution rate reaches 6%. You may opt out of auto increase or enroll for a different
percent or for a different effective date on the T. Rowe Price website.
Employee deferral rate changes
Following the New Hire enrollment period, effective September 1, 2016 you may make changes in
your deferral rate at any time and they will be effective the first day of the next feasible pay period
following your entry of the change on the T Rowe Price website.
Employee Contribution Limits
Currently you may contribute up to 75% of your base earnings up to the maximum contribution
allowed by the IRS. The 2016 IRS maximum is $18,000, unless you are over age 50 and eligible for an
additional catch-up contribution of $6,000 for a total of $24,000. The limit in the McLarens plan will
automatically be updated each time the IRS changes the maximum amounts. If you are classified as a
highly compensated employee, you may have additional limits or may receive a partial refund after
year end testing is performed.
Company Match
McLarens provides a discretionary match and for 2016/2017 will match 50% of your contribution up
to 6% of your base earnings, which provides up to a maximum company match of 3% of your base
earnings. The company match is calculated and credited to your account on a bi-weekly pay period
basis. The company match is a discretionary match and the formula for the match and timing of
payment are subject to change at the Company's discretion.
Vesting Schedule
There is currently a graduated vesting schedule on the company match with 50% vesting after
completion of 2 years of service, 75% vesting after completion of 3 years of service, and 100% vesting
after completion of 4 years of service. You are always 100% vested in your contributions and any
funds you rollover to the plan from a previous employer’s plan.
Loans
A participant is permitted to take a loan from their 401(k) account and repay themselves. The
maximum amount that can be borrowed is 50% of the vested account balance up to a maximum of
$50,000. The interest rate is established periodically and generally is 2 percentage points above the
Prime rate. As of August 2016 that rate was 5.50%. A maximum of two (2) loans are permitted to be
outstanding at the same time. Repayment terms vary based on the purpose of the loan. A general
purpose loan has a maximum maturity period of five (5) years, and if used for the purchase of a
principal residence, the maximum maturity period is fifteen (15) years.
Record Keeper & Investment Options
The record keeper for the McLarens 401(k) plan as of September 1, 2016 is T. Rowe Price and they
provide the investment choices available to you. Once you register for the T. Rowe Price website,
and set up your account, you will be able to enroll in the 401(k), select your contribution rate, and
make investment elections. If you do not make an investment election on the T. Rowe Price website,
the Qualified Default Investment Account as designated by the Company will be applied. As of
September 2016, the Company has designated the appropriate T. Rowe Price Target Date Fund
closest to the assumed retirement age of 65 based on your birthdate.
Enrollment process
You enroll by registering on the T. Rowe Price website or calling 1-800-922-
9945 between 7 am and 10 pm Eastern time. The McLarens 401(k) plan number is 106030.
Contact McLarens’ Human Resources at with questions.