401(k) plan overview and account access · plan information investment options account access...

401(k) Plan Overview and Account Access Retirement Planning Workshop

Plan Information

Investment Options

Account Access Resources

Website Overview

CDK 401(k) Plan Overview and Account Access

• Division of ADP, Inc.

• Providing retirement plan solutions since1989

• Approximately 1.3 million retirement plan participants1

• Over $52.5 Billion in “assets under administration” 1

• 44,000 Retirement Plan Clients

• ADP, Top-ranked company in Financial Data Services in

FORTUNE® magazine’s The World’s Most Admired Companies2

CDK 401(k) Plan Highlights

About ADP Retirement Services

1. Source: Automatic Data Processing Inc, 2014 Annual Report.

2. Source: FORTUNE® Magazine’s Most Admired Companies 2014.

• Contribution types: Traditional (Pre-tax) & Roth (after-tax)

• Your Contribution: 1% - 50% of your eligible compensation

up to the annual IRS Limit.

• Employer contribution: 70% of the first 6% of your salary

deferrals after 6 months of service*

• Vesting: Employee contribution accounts fully vested.

Employer contribution account fully vested after 3 years of

service**

• Loans: Offered by the plan

• Withdrawals: Age 59.5, and Hardship

• Rollovers: Contact the Rollover Team at 877-401-5725


Plan Information

* While credited to your account each pay period, you must be employed on December 31st to fully earn the match.

** Your contributions and any amounts you rolled into the plan, adjusted for gains and losses, are 100% yours.

Save more with catch-up contributions

Plan for what’s ahead

* Subject to plan maximums.

$18,000

IRS annual maximum contribution

$6,000

Catch-Up for those age 50+

$24,000

Total you can contribute to your account in 2015*

+


Investment Options

Investment Options

ADP Retirement Services | 7

Low Risk/

Low Potential Return

Stable Value

Fixed Income

Large-Cap Stock

Mid-Cap Stock

Small-Cap Stock

Global/ International

Stock

R E

T U

R N

R I S K

This graph illustrates the types of investments available in your plan classified by their Morningstar category according to their potential return and investment risk. It is not intended to be, nor should it be construed as, investment advice or a recommendation with respect to any particular investment.

CDK & ADP

Stock

Investment Options


• CDK & ADP Stock Funds

• Company Stock Funds - Carried over from

old ADP Plan

• No new money can be contributed to the

company stock funds

• Unitized price is valued daily and is specific

to these stock funds

• Any dividend paid is added to the unitized share

price of the stock fund


Quarterly account statement

• Account balance

• Investment performance

information

• Personal rate of return

• Transactional information



*Registered representatives of ADP Broker-Dealer, Inc., an affiliate of ADP, LLC, One ADP Blvd., Roseland, NJ. Member FINRA.

• Website

• 888.822.9238

• Service Representatives*

• Quarterly account statement


Website Overview

Website Overview

Account access via the CDK associate

web portal or at www.portal.adp.com

• Log on with your

user ID and password

• First-time users must

register their email address

• Passcode is :

DSHR-register

• Frequently asked questions


http://www.portal.adp.com/



Education and Planning resources

• Retirement planning article library

• Interactive charts

• Retirement Savings Tool

• Calculators › 401(k) calculator – effect on your paycheck

› Retirement planner – how much you need to save

› Asset allocation profiler – how to allocate your account

› Choosing a withdrawal rate calculator – how long your savings will last

› Roth 401(k) calculator – decide which type of contributions are right for you


Website Overview

Website overview

Account at a glance page


Retirement Savings Tool

Easy access from the home

page by clicking on

“Retirement Calculator”

Website Overview

The Retirement Savings Tool (RST) is provided for educational purposes only. Income projections and other information generated by the RST are hypothetical in

nature, do not reflect actual investments or investment results and are not guarantees of future results. Plan participants should not rely on RST as the primary

basis for their investment, financial, or tax planning decisions. Plan participants should consult with their tax advisor or investment professional. ADP cannot

guarantee or assure a plan participant’s ability to meet any of their goals or that any hypothetical results actually will occur. The RST simply uses participant

information and the assumptions selected to provide a rough assessment of the likelihood that their hypothetical results may be achieved.


Get fund information

• Fund summaries

• Market timing information

• Rates of return

• Prospectuses

Website Overview


Website Overview


Transactions

• Change your contribution rate

• Change how your future contributions are invested

• Change how your current balance is invested

• Elect plan features

Website Overview

Change your contribution rate and investment elections


Website Overview

Change how your current balance is invested


Website Overview

Moving your existing balances


Website Overview

Elect Save Smart®


Elect GuidedSavingsSM services from GuidedChoiceTM

• Get help with deciding how much to save

• Have your investments selected for you based on your personal

situation

• Get a retirement strategy that considers other factors, like your

spouse’s savings or outside investments

• Election can be made under the Investments tab by clicking

Investment Help by Guided Savings


Website Overview

GuidedSavingsSM is a service mark of GuidedChoiceTM Asset Management, Inc. Neither ADP, LLC, nor any of its affiliates is an affiliate of, nor do any of

them endorse the services or products of, GuidedChoiceTM Asset Management, Inc.

Other web capabilities

• Manage your profile

• Designate or change your beneficiaries

• Update your personal information

• Elect electronic delivery

• Get your quarterly newsletter


Website Overview


99-3760-0315

ADP, LLC and its affiliates do not offer investment, tax or legal advice

and nothing contained in this communication is intended to be, nor should be construed as, investment advice or a recommendation

for a particular investment option. Questions about how laws,

regulations and guidance apply to a specific plan should be directed

to your plan administrator or legal, tax or financial advisor.

Investments in mutual funds and commingled funds (also known

as collective trusts) involve risk. Some investment products have more

risk than others. For complete information about a particular fund

or to obtain a fund prospectus (or information statement, in the case

of commingled funds), go to www.portal.adp.com. You should

carefully

consider an investment option’s objectives, risks, charges and

expenses before investing. The prospectus (or information statement,

as applicable) contains this and other important information about

the investment option and investment company. Please read the prospectus/information statement carefully before you invest.

http://www.mykplan.com/






ADP

Pension Plan

o How The Plan Works

o How The Spin Affected Your Pension

o Age and Service Criteria

o Balances Less Than $5,000

o Transfer Your ADP Pension to a Qualified Retirement

Plan

ADP Pension Plan - Overview

How ADP’s Pension Plan Works - Two Components -

Accumulated prior to 1990

o Defined benefit pension plan

o Payable as a lifetime monthly installment

at retirement

o Not eligible for lump sum payment

o Not eligible for rollover to another plan

Accrued from 1990 to Spin Date

o Cash Balance Plan

o Payable as a lump sum or a lifetime

monthly annuity upon retirement

o If eligible for lump sum, can take as

cash* or roll over to a qualified

retirement plan (e.g., CDK, IRA, another

plan)

o Must qualify for retirement as follows in

order to initiate payment or distribution if

benefit amount is $5,000 or greater:

• Age 65 regardless of years of

service, or

• Age 55 with at least 5 years of service

* If paid to you it’s taxable income

ADP Pension Plan

o All associates hired on or before July 1, 2013 earned a

benefit in the ADP Pension Plan up through the spin date.

o All associates who transitioned to CDK are considered

100% vested in their benefit.

o Benefits from the Plan are generally paid at retirement, with

the exception of benefit amounts that are less than $5,000.

o The timing of when you can receive your benefit from the

Plan is determined by your age and the amount of your

benefit.

ADP Pension Plan

How The Spin Affected Your Pension

Options Based on Age and Service for

Benefit Amounts Greater than $5,000

Age 55 with less than 5 years of

service o Participants with less than 5 years of

service will not be able to collect their

benefit until age 65.

o Balances left in the Plan will continue

to earn interest based on the 10-year

Treasury Rate (currently 3.25%).

Age 55 with more than 5 years of

service

o Participants have the option of

leaving their benefit in the Plan but

will be required to collect no later

than age 65, or

o You have the option of taking the

benefit in

I. Cash (as taxable income)

II. Rolling it over to another

qualified plan

o Balances left in the Plan will

continue to earn interest based

on the 10-year Treasury Rate

(currently 3.25%)

ADP Pension Plan

Age 65 regardless of years of service

o Participants in this age group are currently

eligible to receive their benefit from the

Plan

o If you are age 65 or over, you are required

to commence your benefit immediately

and will be contacted 3 months before

your 65th birthday

o Benefit amounts that are less than $5,000 must be paid at this time.

o Participants were sent a letter and a Lump Sum Payment Application.

o The lump sum can be rolled over to the CDK 401(k) plan, an IRA, or another tax

qualified plan. Amounts paid directly to you are considered taxable income.

o If your completed application is not returned within 90 days from the date of the

letter: If your balance is $1,000 or less, you will automatically be sent a check with taxes

withheld.

If your balance is more than $1,000, the funds will automatically be moved to an IRA

with The Bancorp Bank.

ADP Pension Plan

Balances Less Than $5,000

Before taking any action you may want to check with a

Financial Advisor to determine which option is best for you

If you meet the criteria to transfer your ADP Pension to another qualified

retirement plan and you decide to transfer it to the CDK 401(k) Plan:

o Contact ADP Benefits Hotline at 800.735.0350

o Press 2 for pension plan

o Request a distribution

ADP Pension Plan

Transferring Your ADP Pension to the

CDK 401(k) Plan

o Obtain a CDK 401(k) Rollover Form by contacting the 401(k)

Service Center at 888.822.9238

o Rollover checks must be made payable to Reliance Trust

Company FBO (participant’s name)

o Complete Rollover Form: Acknowledgement, Rollover Investment

Direction and Signature

o Mail completed form and check as stated on the form

Once your Rollover Form is complete, the Rollover check made payable to

Reliance Trust Company, must accompany the form for the stated dollar

amount.

ADP Pension Plan

Transferring Your ADP Pension to the

CDK 401(k) Plan

o The easiest way for you to get answers about your pension benefit is by

email… [email protected]

o Your questions will be answered in a timely manner, in writing, so that you

will have documentation for your records.

o Phone requests can be made to 800.735.0350.

o Because of high call volumes, voicemails will be answered within two

business days.

o If you have relocated since the spin-off, please send your new address to

email address shown above.

ADP Pension Plan

Contacting ADP

mailto:[email protected]

Website access to your ADP Pension information will be

available by the fall of 2015. You will be contacted by mail

shortly before the website becomes available with more

details

Participants will be able to request pension estimates, model

retirement scenarios, and initiate the retirement process

online

ADP Pension Plan

Coming Soon

Questions & Answers

What type of contributions can I make to the CDK 401(k) Plan? The CDK 401(k) Plan allows for before-tax and Roth after-tax contributions. What is a before-tax contribution? Before-tax contributions are deducted from your paycheck before taxes are determined on your income. Before tax contributions are permitted to grow tax deferred until they are withdrawn, at which time your before-tax contributions and earnings on these contributions are taxed at your ordinary income tax return. What is a Roth after-tax contribution? Roth after-tax contributions are deducted from your paycheck after taxes are withheld from your pay. Since you give up the immediate tax benefits offered under the before-tax contribution option, you can eventually withdraw your Roth contributions and earnings on these contributions tax-free.

Q&A

Q&A

Can I invest in the pre-tax and Roth after-tax contributions at the same time? Yes, you can invest in both the pre-tax and Roth after-tax contributions at the same time. Are there any limitations on the amount I can contribute to the CDK 401(k) Plan? Yes. The Plan will allow you to contribute up to 50% of your pay each pay period. If you are considered a Highly Compensated Employee (HCE) as defined by the Internal Revenue Code, you will be able to contribute up to 12% of your pay each pay period. The IRS also places limits on the amount you can contribute to a 401(k) plan each year. For 2015, the limit for regular contributions is $18,000. Those eligible to make catch-up contributions (age 50 or over) can save an additional $6,000.

Q&A

Q&A

Does CDK match my 401(k) contribution? Yes. CDK matches your contributions beginning the first of the month coincident with or next following the 6 month anniversary of an Employee’s hire date. Your ADP service will be honored for match eligibility purposes. What is the CDK Company Matching contribution? The CDK Company Matching contribution is $.70 for every dollar you contribute, up to 6% of your pay (after 6 months of participation). Where can I call to obtain more information about the CDK 401(k) Plan? More information about CDK’s 401(k) Plan is available through the CDK Retirement Plan Service Center at 1-888-822-9238.

Q&A

Q&A

Can you please explain how the vesting for the CDK 401(k) Plan works? Yes. The Company’s Matching Contributions and their earnings fully “vest” over a three year period of service with the Company. After three years of service, Matching Employer Contributions are 100% vested. Your service with ADP will be honored for vesting purposes. Does the Plan provide flexibility to invest in a number of different investment funds? Yes. The Plan gives you the flexibility to invest in a number of different investment funds. Each investment fund has a specific investment objective, level of risk, and potential return. You have the choice to change the amount you contribute and adjust how your contributions are invested at any time.

Q&A

Q&A

How do I access my personal account? You can access your personal account via the CDK Associate Portal by clicking on ADP, then on “401k Information” under Recommended Links. If you are not logged into the CDK Portal (i.e. logging in from home), you can access your personal account by visiting www.portal.adp.com . Log in using your User ID and Password. The 401(k) Plan web site allows you to: - Check your current account balance and contribution rate - Check and/or change your current investment election - Information on loans, withdrawals and distributions - Enroll for the first time or make changes to your account - Receive general Plan information, including investment fund performance - Change your password and security questions/answers for online access

Q&A

Q&A


At what age can I begin taking money out of the CDK 401(k) Plan without a penalty? You can begin taking money out of the CDK 401(k) Plan without paying the 10% federal penalty tax at age 59 ½. However, your distribution will be considered taxable income. What is a Required Minimum Distribution (RMD) and when do I have to begin withdrawing my funds? Your RMD is the minimum amount you must withdraw from your account each year. The IRS generally requires you to start taking withdrawals from your retirement plan account when you reach age 70 ½. Can I add funds to the ADP and CDK Stock Funds? No, you can no longer add funds to the ADP and CDK Stock Funds. Once you remove money from those funds they cannot be reinvested into the stock funds.

Q&A

Q&A

401(k) plan overview and account access · plan information investment options account access...

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