john hancock pension plan january 1, 2019...your pension benefits— summary plan description john...

Your Pension Benefits—

Summary Plan Description

John Hancock Pension Plan

January 1, 2019

Proprietary & Confidential

Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON).

Table of Contents 1

Table of Contents

Introduction 3

Your Pension Benefits 3 For More Information 3

Section 1. Participation and Vesting 4

Eligibility to Participate 4 When Participation Begins 4 Participating Employers 4

Participant Groups 5

Section 2. How Your Benefit Grows 9

Benefit Formulas 9

Unified Cash Balance Formula 11 John Hancock USA Cash Balance Formula 15 Your Benefit 17

Final Average Pay Formula 19

Section 3. Receiving Your Benefit 28

When You Can Receive Your Benefit 28

How to Receive Your Benefit 28 Automatic Payment of Benefits Valued at $1,000 or Less 28 Form of Payment 28 If You Work Past Age 70½ 33 Electing to Receive Your Benefit 33 If You Return to Work After Your Vested Benefit Has Been Paid 33 Receiving Your Benefit if You Become Disabled 34 If You Die Before Your Benefit Commences and Had Earned a Cash Balance Benefit 34 If You Die Before Your Benefit Commences and Had Not Earned a Cash Balance Benefit 35 If You Die After Your Benefit Commences 35

Section 4. Payment and Tax Information 36

Receiving Annuity Payments 36 Taxes and Withholding 37 Payments Eligible for Rollovers 38 Qualified Domestic Relations Order (QDRO) 39

Section 5. Administrative Information 40

Plan Identification 40

Table of Contents 2

Plan Year 40 Plan Trustee 40

Service of Legal Process 40 Funding Information and Source of Contributions 41 Plan Sponsor and Administrator 41

Benefit Review Process 42 Situations Affecting Your Benefits 43 Changes to the Pension Plan 44

Benefit Payments if the Plan Ends—Order in Which Benefits Are Paid 44 Pension Benefit Guaranty Corporation 45 Your Legal Rights Under the Plan 46 Receiving Information About Your Plan and Benefits 46 Prudent Actions by Plan Fiduciaries 46 Enforcing Your Rights 47 Assistance With Your Questions 47

Introduction 3

Introduction

Your Pension Benefits

The John Hancock Pension Plan (the “plan”) is designed to provide participants with a source of income

for retirement. The plan supplements other sources of retirement income that may be available to participants, including Social Security, 401(k) plan benefits, and personal savings and investments. Under

the current terms of the plan, benefits are funded solely by Manufacturers Investment Corporation. The

plan’s assets are held in a trust to provide benefits to participants, and benefits are insured by the Pension

Benefit Guaranty Corporation (PBGC), a federal insurance agency.

This summary plan description (SPD) describes the terms of the plan effective January 1, 2019. This SPD

is based on the official plan documents but is not, nor is it intended to be, the official plan document. Every effort has been made to ensure the accuracy of the information contained in this SPD. In the

unlikely event that there is a discrepancy between the SPD and the official plan document, the official

plan document will rule. To request a copy of the official plan document, contact John Hancock U.S.

HR Contact Centre at 1-877-455-2055.

This SPD is available online through the John Hancock benefit website, www.ybr.com/jhancock, or you

can call 1-866-YBR-4YOU (1-866-927-4968) to receive a printed copy. If you have access to the website,

you may use the site to view the SPD or print pages from the SPD. If there are any discrepancies between the information on the website and your printed copy, the website version will rule.

Foreign Language Notice

This summary plan description (SPD) details in English your plan rights and benefit provisions. If you

have difficulty understanding any details described here, contact the plan administrator:

John Hancock Life Insurance Company (U.S.A.) HR Shared Services, B-03-02 P.O. Box 111 Boston, MA 02117 1-877-455-2055 Office hours are Monday through Friday, 9:00 a.m. to 4:00 p.m. Eastern time.

For More Information

For more information about the pension plan and your benefits, please visit the Your Benefits

Resources™ website at www.ybr.com/jhancock. The website provides information on the amount of your

accrued pension benefit and also allows you to model how your benefit might grow in the future.

Your Benefits Resources is a trademark of Hewitt Associates LLC.

http://www.ybr.com/jhancock


Participation and Vesting 4

Section 1. Participation and Vesting

Eligibility to Participate

You’re eligible to participate in the plan if you’re:

ƒ An employee or clerk of a participating employer who works at least 20 hours per week,

ƒ A sales supervisor, or agent, of a participating employer, or

ƒ A managing partner of a participating General Agency.

To be eligible, you must be on the U.S. payroll of your participating employer.

Co-op students, leased employees and contract employees paid on an hourly basis are not eligible for the plan. Employees covered by a collective bargaining agreement are also not eligible unless their collective

bargaining agreement specifically provides for their participation in the plan.

If you’re eligible to participate, your participation will be automatic. You do not need to enroll.

When Participation Begins

If you’re eligible for the plan, you begin participating on your date of hire or when you first complete an hour of service. However, if you’re a John Hancock USA employee, your participation began on the

earlier of January 1, 2008, or the first of the month following the month in which you completed one year

of service. Prior to January 1, 2008, John Hancock USA employees are considered to have completed

one year of service at the end of their first 12 months of employment if they have worked at least

1,000 hours at that time or at the end of any subsequent calendar year in which they work at least 1,000 hours.

Participating Employers

Participating employers include the following organizations and their affiliated companies:

ƒ John Hancock Life Insurance Company (U.S.A.)

ƒ Any General Agency that joins the plan with the permission of Manufacturers Investment Corporation.

When the terms “employed” or “employment” are used, they refer to being employed by any of the participating employers. When reference is made to ending or terminating employment, it means

terminating employment with all participating employers. You’re considered an “active participant” or

“actively participating” when you’re participating in the plan and actively employed by a participating

employer.


Participant Groups

In this SPD, the following terms are used to refer to different groups and subgroups of participants. These

different groups and subgroups may have different benefits as a result of their having participated in different prior pension plans.

Group Definition Subgroups

John Hancock USA Participants

Employees w ho participated in the John Hancock Life

Insurance Company (U.S.A.)

Cash Balance Plan prior to

January 1, 2007, or w ho

w ere hired by John Hancock Life Insurance Company

(U.S.A.) during 2007 and

began participating in the

pension plan prior to

January 1, 2008

Grandfathered John Hancock USA Participants are those John Hancock USA Participants w ho:

ƒ Participated in the Manulife Financial U.S. Cash Balance

Plan on July 1, 1998,

ƒ Had attained age 45 and completed f ive years of vesting

service under the terms of that plan on July 1, 1998, and

ƒ Terminated employment at age 50 or older and after

completing at least ten years of vesting service

John Hancock

Financial

Network

Participants

Associates w ho participated

in the Signator Cash

Balance Pension Plan prior

to January 1, 2007, or w ere

hired by a participating

General Agency in 2007

Grandfathered John Hancock Financial Network

Participants1

are those John Hancock Financial Netw ork Participants w ho meet the follow ing criteria:

If not a Transition Employee2

Were Signator Cash Balance Pension Plan Participants on

July 1, 2000, and on that date:

ƒ Were age 45 to 49 and had completed at least ten years of

service,

ƒ Were age 50 to 54 and had completed enough services so

that their age plus service w as at least 60 years,

ƒ Were age 55 to 59 and had completed at least f ive years of

service, or

ƒ Were age 60 or older

If a Transition Employee2

Were Signator Cash Balance Pension Plan Participants (but not

Whole-Time Writing Agents) on January 1, 2001, and on that

date:


service,

ƒ Were age 50 to 54 and had completed enough service so



service, or


1 If a Grandfathered John Hancock Financial Network Participant or a Grandfathered John Hancock Financial Services Participant leaves a participating employer and is later rehired by a participating employer, that participant will not be considered grandfathered once rehired.

2 Transition Employees include those who were:

ƒ Development Managing Partners (formerly known as Development General Agents or Development Managing Directors) on

December 31, 2000, and eligible for the plan on January 1, 2001

ƒ Sales Supervisors, Agents or Clerks on December 31, 2000, eligible for the Signator Cash Balance Pension Plan on January 1,

2001, and employed by John Hancock Life Insurance Company in a Managerial Agency as of April 23, 2000


Group Definition Subgroups

Were Signator Cash Balance Pension Plan Participants and

Whole-Time Writing Agents on January 1, 2001, and on that

date:

John Hancock Financial

Services

Participants

Employees w ho participated

in the John Hancock

Financial Services Pension Plan prior to January 1,

2007, or w ere hired by

John Hancock Financial

Services or one of its

subsidiaries in 2007


service,




service, or


Grandfathered John Hancock Financial Services Participants

3 are those John Hancock Financial Services

Participants w ho w ere plan participants on January 1, 2002,

and on that date:


service,




service, or


Vesting

To receive a benefit from the plan, you must be vested. Vesting rules vary depending on whether you

were employed by a participating employer on or after January 1, 2008, or your employment ended prior

to January 1, 2008.

If you were employed by a participating employer on or after January 1, 2008:

ƒ You become vested once you complete three years of vesting service.

ƒ Any vesting service completed before January 1, 2008, counts toward this requirement.

If your employment ended prior to January 1, 2008. In this case, one of the following rules applies:

ƒ Participants without cash balance benefits became vested after completing five years of vesting

service.

ƒ John Hancock USA Participants became vested after completing three years of vesting service.

ƒ All other participants who left a participating employer prior to January 1, 2008, became vested in

one-third of their benefit after completing three years of vesting service, in two-thirds of their benefit after completing four years of service and in their entire benefit after completing five years of service.

3 If a Grandfathered John Hancock Financial Network Participant or a Grandfathered John Hancock Financial Services Participant

leaves a participating employer and is later rehired by a participating employer, that participant will not be considered grandfathered

once rehired.


You also become vested if, after January 1, 2008, and while you’re an eligible participant actively

employed by a participating employer, you:

ƒ Attain age 65,

ƒ Become disabled (see “Definition of Disability” on page 8), or

ƒ Die.

Vesting Service

If you were employed by a participating employer on or after January 1, 2008, your vesting service equals the number of years and months during which you were eligible for the plan, starting with your date of hire

and ending on your severance-from-service date. If your employment ended before January 1, 2008, you

earned one year of vesting service for each consecutive 12-month period in which you worked at least

1,000 hours, starting on your date of hire.

Severance-From-Service Date

Your severance-from-service date is the earliest of the following:

ƒ The date your employment ends for any reason, including termination of employment, retirement or

death

ƒ The first anniversary of the date on which your unpaid absence begins if you have an unpaid absence

of one year or more

ƒ The date on which you cease to qualify for disability if you become disabled and do not return to work

within one month after your disability ends

ƒ At age 65 if you attain age 65 while you qualify for disability

If you’re absent from work for more than one year because of your pregnancy, the birth of your child, the

placement of a child with you for adoption, or the care of such a child immediately following birth or placement for adoption, the first year of your absence will count toward your vesting service, but the

remainder of your absence will not count.


If You Separate From Service With an Unvested Benefit and Are Later

Rehired

If you separate from service with an unvested benefit and are later rehired by a participating employer,

your vesting service and unvested benefit will be treated as follows:

Time Between Your Severance-From-Service and

Re-Employment Dates

Treatment of Your Vesting Service

Treatment of Your Unvested Benefit

Less than one year Your prior vesting service will be restored and your period of absence will be counted toward your vesting service.

Your unvested benefit will be restored.

More than one year but less than five years

Your prior vesting service will be restored, and you’ll begin earning additional vesting service starting with your re-employment date. Your period of absence will not be included in your vesting service.

Your unvested benefit will be restored.

Five years or more Your prior vesting service will be restored, and you’ll begin earning additional vesting service starting with your re-employment date. Your period of absence will not be included in your vesting service.

Your unvested benefit will be forfeited.

Definition of Disability

For the purposes of the pension plan, you’re considered disabled if you’re physically or mentally unable to perform the duties of your occupation because of illness or injury and qualify for long-term disability

benefits under either the John Hancock Employee Welfare Plan or the Signator Managing Directors’

Association Group Insurance Plan. If you’re not eligible to participate in one of these disability plans, you

may still be considered disabled if a participating employer finds that you would have qualified for

long-term disability benefits under the terms of these disability plans had you been eligible or, in the case of John Hancock USA Participants who were disabled prior to January 1, 2008, if you would have met the

Social Security requirements for disability.

How Your Benef it Grows 9

Section 2. How Your Benefit Grows

Benefit Formulas

On January 1, 2008, John Hancock completed the process of consolidating all its pension plans for U.S.

employees and associates into a single plan with a single benefit formula, referred to in this SPD as the “Unified Cash Balance Formula.” Some participants, however, continued to earn benefits under other

formulas because of their participation in prior variants of the pension plan. The following table

summarizes which formulas apply to which participants:

Participant Grou p Benefit Form ul a

John Hancock USA Participants These participants earn benefits under two formulas:

ƒ Benefits earned prior to January 1, 2008, are

determined by the John Hancock USA Cash Balance Formula (see page 15).

ƒ Benefits earned on or after January 1, 2008,

are determined by the Unified Cash Balance Formula (see page 11).

Grandfathered John Hancock Financial Network

Participants

For benefits earned through December 31, 2011, these participants will have their benefit calculated under two formulas, the Final Average Pay Formula and the Unified Cash Balance Formula, and will receive whichever of the two benefits is larger.

Grandfathered John Hancock Financial Services

Participants

Benefits earned after 2011 are earned under the

Unified Cash Balance Formula.

John Hancock Financial Network Participants who:

ƒ Were not Transition Employees and whose

employment ended prior to July 1, 2000

ƒ Were Transition Employees and whose

employment ended prior to January 1, 2001

John Hancock Financial Services Participants who left a participating employer prior to January 1,

2002

These participants earn benefits under the Final Average Pay Formula only and have no cash balance account.

All other participants, including:

ƒ All participants who began participating in the

plan on or after January 1, 2007, except John Hancock USA Participants

ƒ John Hancock Financial Network Participants

and John Hancock Financial Services Participants who are not grandfathered but are eligible for a cash balance benefit

These participants earn benefits only under the Unified Cash Balance Formula (see page 11).

The different benefit formulas are described starting on page 11.


Eligible Compensation

For the purpose of determining benefits under the plan, your eligible compensation includes any of the following that you receive from a participating employer while employed by the participating employer and

participating in the plan:

ƒ Your base salary, except for salary deferred through a nonqualified deferred compensation plan

ƒ Bonuses paid from a participating employer’s formal incentive plan (sales and non-sales)

ƒ Payments under certain incentive compensation plans (such as draws and guarantees)

ƒ Short-term disability benefits at full pay

ƒ Clerical salary

ƒ Management Compensation Sales Supervisor salary

ƒ Management Compensation Sales Supervisor incentive

ƒ Development Managing Partner salary

ƒ Service fees

ƒ Quality performance bonus

ƒ Vacation bonus paid to grandfathered transition Whole-Time Writing Agents who meet the production requirements

ƒ NIA commissions on sales of John Hancock products

ƒ Step earnings

ƒ Levelized commissions on sales of John Hancock products

ƒ Commission on John Hancock products, except for those deferred through a deferred compensation

plan

ƒ Overrides (including first year and renewal overrides) paid in connection with John Hancock products

sold by an agency and earned by Managing Partners who are not Development Managing Partners

For participants who own either 100% of the stock in a General Agency or a partnership interest in a

General Agency, the average overrides included as eligible compensation shall be the average overrides

paid to the incorporated General Agency or, if the General Agency is a partnership, an amount equal to

the overrides paid to the General Agency as specified in the partnership agreement.

For John Hancock USA Participants only, overtime pay is included in eligible compensation for calculating

benefits earned prior to 2008.

Eligible compensation does not include the following:

ƒ Overtime pay (except as noted above for benefits earned prior to 2008 by John Hancock USA

Participants)

ƒ Severance

ƒ Commissions paid to clerks


ƒ Deferred compensation or deferred commissions (or any interest on deferred compensation or

commissions)

ƒ Long-term disability benefits

ƒ Accrued vacation pay paid in a lump sum upon termination

ƒ Commission or overrides on casualty or mutual fund products

ƒ Discretionary awards or incentive payments that are not specifically included in pension-eligible

compensation under the terms of the document governing the award or incentive payment

ƒ Any other type of pay not specifically listed as eligible compensation

Maximum Eligible Compensation

Eligible compensation for any year will not exceed the compensation limit imposed by Internal Revenue

Code Section 401(a) (17) in that year. This limit is referred to in this document as the IRS compensation

limit. This limit is $280,000 in 2019 and is adjusted annually.

Maximum Benefit

The maximum benefit provided by the plan will not exceed the limit on pension benefits imposed by

Internal Revenue Code Section 415(b) for the year in which the participant’s benefit commences. This

limit is $225,000 for a single life annuity commencing at age 65 in 2019 and is adjusted periodically.

Normal Retirement Date

To determine your benefits, your normal retirement date is defined as the first day of the month in which

you reach age 65. You may be able to receive your benefit at other times, however. See “Section 3.

Receiving Your Benefit” beginning on page 28 for details.

Unified Cash Balance Formula

Under the Unified Cash Balance Formula, the value of your pension benefit is expressed as an account balance. Your cash balance account may grow in up to four ways:

ƒ Opening balance—If eligible, your account may be credited with an opening balance.

ƒ Pay credits—While you’re employed by a participating employer and earning benefits under the

Unified Cash Balance Formula, your account will grow with quarterly pay credits.

ƒ Transition pay credits—If you were a John Hancock USA Participant with at least ten years of

service on January 1, 2008, you’ll also receive quarterly transition pay credits while you’re employed by a participating employer between January 1, 2008, and December 31, 2011.

ƒ Interest credits—Your balance will grow with daily interest credits until you receive your benefit.


These four types of credits are described in more detail below.

Opening Balance

The following table lists the participants eligible to receive opening balances and describes how those

balances are determined.

Group Amount of Opening Balance

John Hancock Financial Network Participants (excluding Transition Employees) who were actively participating in the plan on July 1, 2000

Your opening balance equaled the present value of your accrued General Agency Pension Plan benefit as of June 30, 2000. The present value was calculated using standard actuarial assumptions about life expectancy (from the 1983 Group Annuity Mortality Table) and an annual interest rate of

6.26% (the average annual yield of the 30-year U.S. Treasury bond as of October 1999). If you were not grandfathered, your opening balance was increased by assuming in the present value calculation that your age 65 accrued benefit would be available without reduction at age 62.

John Hancock Financial Network Participants who are Transition Employees and were actively participating in the plan on January 1, 2001

Your opening balance equaled the present value of your accrued Signator Pension Plan benefit as of December 31, 2000. The present value was calculated using standard actuarial assumptions about life expectancy (from the 1983 Group Annuity Mortality Table) and an annual interest rate

of 5.83% (the average annual yield of the 30-year U.S. Treasury bond as of September 2000). If you were not grandfathered, your opening balance was increased by assuming in the present value calculation that your age 65 accrued benefit would be available without reduction at age 62.

John Hancock Financial Services Participants who were actively participating in the plan on January 1, 2002

Your opening balance equaled the present value of your accrued John Hancock Pension Plan benefit as of December 31, 2001. The present value was calculated using standard actuarial assumptions about life expectancy (from the 1983 Group Annuity Mortality Table) and an annual interest rate of 5.48% (the average annual yield of the 30-year U.S. Treasury bond as of September 2001). If you were not grandfathered, your opening balance was increased by assuming in the present value calculation that your age 65 accrued benefit would be available without reduction at age 62.

Participants who left John Hancock after earning a final average pay benefit and were rehired by a participating employer on or after January 1, 2008, but before having

commenced their benefit

Your opening balance equals the present value, effective as of the day you return to work, of the vested John Hancock pension benefit that you had accrued at the time you left John Hancock.


Group Amount of Opening Balance

Participants who left John Hancock with a partially unvested benefit and were rehired by a participating employer:

ƒ After having commenced the

vested portion of their benefits, but

ƒ Before the unvested portion of

their benefits had been forfeited

Your opening balance equals the present value, as of the day you return to work, of the unvested portion of the John Hancock pension benefit that you had accrued at the time you left

John Hancock.

Pay Credits

While you’re employed by a participating employer and eligible to earn benefits under the unified cash

balance formula, your account will receive quarterly pay credits equal to:

ƒ 4% of your eligible compensation at or below the Social Security taxable wage base, reported during

the quarter

ƒ 8% of your eligible compensation above the Social Security taxable wage base reported during the

quarter

Pay credits are allocated to your account on the last business day of each calendar quarter. Your account

does not receive pay credits for periods in which you’re not employed by a participating employer.

The Social Security taxable wage base is the maximum amount of an individual’s income subject to Social Security taxes. The Social Security taxable wage base changes annually and is $132,900 in 2019.

If you’re considered disabled under the terms of the plan, you’ll continue to receive pay credits until the

earliest of the following:

ƒ Your normal retirement date

ƒ Your benefit commencement date

ƒ Your death

ƒ The date on which you cease to be disabled if you do not return to work within one month of that date

Your pay credits while you’re disabled will be based on your “benefit base rate” as of January 1 prior to

your disability date. Your benefit base rate is set each January 1 and equals your base salary as of the

preceding September 1, plus eligible bonuses paid from a participating employer’s formal incentive plan during the 12-month period ending on that September 1. If you’re a sales employee (a P-Grade

employee), your benefit base rate also includes the two-year average of your formal sales incentive

bonuses, guarantees and draws.


Transition Pay Credits

If you were a John Hancock USA Participant who, on January 1, 2008, had completed at least ten years

of plan service, you were eligible to receive transition pay credits in addition to your pay credits. Transition pay credits were credited to your account on the last business day of each calendar quarter from

January 1, 2008, through December 31, 2011, as long as you continued to be employed by a participating

employer. Transition pay credits ceased after December 31, 2011, or when your employment ended, if

earlier.

The amount of your transition pay credits varied with your service as of January 1, 2008, as shown below.

(Note: Your transition credit is fixed based on your service as of this date and does not change with

further service.)

Your Years of Service as of January 1, 2008

Your Transition Pay Credit as a Percentage of Your

Quarterly Eligible Compensation

Less than 10 None

10 2.0%

11 2.2%

12 2.4%

13 2.6%

14 2.8%

15 3.0%

16 3.2%

17 3.4%

18 3.6%

19 3.8%

20 or more 4.0%

Interest Credits

Your account balance receives interest credits daily. The interest crediting rate is determined by calculating the average yield for a set time period on 10-Year U.S. Treasury Constant Maturities. Prior to January 1, 2017, the interest crediting rate was determined by calculating the average yield on the aforementioned maturities in effect for the 12-month period ending on September 30 of the preceding the calendar year. After January 1, 2017, the interest crediting rate will be determined by calculating the

average yield on these same maturities in effect for the 2-month period ending on September 30 of the preceding the calendar year. This annual interest rate is converted to a daily rate, which is then multiplied by your account balance each day to determine the amount of the daily interest credit. You will receive interest credits until your benefit commences, even during periods in which you’re not employed by a participating employer. The interest crediting rate for 2019 is 2.95%, an increase from 2.21% in 2018.


Your Benefit

The value of your cash balance account on your benefit commencement date is the sum of the following:

ƒ Any opening balance that was credited to your account

ƒ Any pay credits received

ƒ Any transition pay credits received

ƒ Any interest credits received

Your benefit is the single life annuity that has an actuarial value equal to the amount of your cash balance

account on your benefit commencement date. To convert your cash balance to a single life annuity, the following standard actuarial factors are used:

ƒ Your age when you begin receiving payments

ƒ The applicable mortality table as defined in Internal Revenue Code Section 417(e)(3)

ƒ The applicable interest rate as defined in Internal Revenue Code Section 417(e)(3) in effect for September of the prior calendar year

Forms of payment other than a single life annuity are available—see “Section 3. Receiving Your Benefit” on page 28 for information.

John Hancock USA Cash Balance Formula

If you’re a John Hancock USA Participant, your total benefit will equal the sum of:

ƒ Your benefits accrued from July 1, 1998 (or the date on which you began participating in the plan, if

later) through January 1, 2008, plus interest accrued thereafter and calculated under the John Hancock USA Cash Balance Formula, plus

ƒ Your benefits accrued on or after January 1, 2008, and calculated under the Unified Cash Balance Formula.

The remainder of this section describes the John Hancock USA Cash Balance Formula. For information

on the Unified Cash Balance Formula, see the description beginning on page 11.

How Your Benefit Grows

Under the John Hancock USA Cash Balance Formula, the value of your pension benefit is expressed as

an account balance. Your John Hancock USA Cash Balance Account may grow in up to three ways:

ƒ Opening balance—If eligible, your account may have been credited with an opening balance.

ƒ Pay credits—While you were employed by a participating employer and earning benefits under the

John Hancock USA Cash Balance Formula, your account received pay credits.

ƒ Interest credits—Your account balance grows with interest credits until you receive your benefit.


The opening balance and credits are described in more detail below.

Opening Balance

If on July 1, 1998, you were a John Hancock USA Participant and were actively employed by a

participating employer, any unpaid benefits that you had accrued under your prior Manulife-sponsored

pension plan were converted into an opening balance for your John Hancock USA Cash Balance

Account.

Pay Credits

While you were a John Hancock USA Participant from January 1, 1998, through December 31, 2007, and eligible to earn benefits under the John Hancock USA Cash Balance Formula, your account received pay

credits 4 that varied with your service as shown below:

Completed Years of Service as of December 31 of the Calendar Year for Which

the Credit Was Made

Amount of Your Pay Credit as a Percentage of Your Eligible

Compensation

Less than 6 4%

At least 6 but less than 11 5%



21 or more 11%

These pay credits were allocated to your account on the last day of each calendar year. Your account did

not receive pay credits during periods in which you were not employed by a participating employer or

were not eligible to earn benefits under the John Hancock USA Cash Balance Formula. During the first

year in which you participated in the plan, your pay credits were based only on the eligible pay that you

earned after becoming a participant in the plan.

During any periods in which you were considered disabled under the terms of the plan and were earning

benefits under the John Hancock USA Cash Balance Formula, your pay credits were based on the

greater of your eligible pay for the calendar year prior to the year in which your disability began and your

eligible pay rate on the effective date of your long-term disability leave of absence.

4 Pay credits were called “contri b uti o n credits” under some prior versions of the plan.


Interest Credits

Prior to January 1, 2017, the minimum interest crediting rate of the John Hancock USA Cash Balance was 5.25%, which was compounded semi-annually. After January 1, 2017, the minimum interest

crediting rate of the John Hancock USA Cash Balance was changed to 5.00%, which is compounded

daily. Interest credits apply until the benefit is commenced, even during periods in which you’re not

employed by a participating employer.

Prior to January 1, 2017, the interest crediting rate was determined by calculating the average yield on the aforementioned maturities in effect for the 12-month period ending on November 30 of the preceding the calendar year. After January 1, 2017, the interest crediting rate will be determined by

calculating the average yield on these same maturities in effect for the 2-month period ending on September 30 of the preceding the calendar year.

Your Benefit

Your John Hancock USA Cash Balance Account on your benefit commencement date is the sum of the

following:

ƒ Any opening balance that was credited to your John Hancock USA Cash Balance Account

ƒ Any pay credits received through December 31, 2007

ƒ Any interest credits received through your benefit commencement date

Your single life annuity benefit earned under the John Hancock USA Cash Balance Formula will be

determined from your John Hancock USA Cash Balance account as follows:

1. The amount of your cash balance account will be projected to your normal retirement date using the

interest crediting rate in effect for the year in which your benefit is to be paid. If you’ve already

reached your normal retirement date, your current cash balance account will be used without any additional projected value.

2. The resulting cash balance amount will then be converted to a single life annuity payable at the later

of your normal retirement date or the current date. This conversion will be done using standard

actuarial factors, including the following:

– The Applicable Mortality Table as defined in Internal Revenue Code Section 417(e)(3)

– The Applicable Interest Rate as defined in Internal Revenue Code Section 417(e)(3) in effect for September of the prior calendar year

3. If you have not yet reached your normal retirement date (and are not a Grandfathered John Hancock

USA Participant), the resulting single life annuity will be reduced to a single life annuity payable on your benefit commencement date using standard actuarial factors.


In general, your benefit is equal in value to the single life annuity calculated as described above.

However, the value of your benefit payable as a lump-sum or a term-certain payment will generally be

equal to the balance of your John Hancock USA Cash Balance Account. If, when your benefit commences, the minimum interest crediting rate is in effect, the lump sum will not be less than the

actuarial value of the single life annuity benefit determined above using standard actuarial factors.

If you earned benefits on or after January 1, 2008, under the Unified Cash Balance Formula, the value of

those benefits will be added to the value of your John Hancock USA cash balance benefit to determine

the total value of your pension benefit. Various forms of payment are available for this total pension

benefit—see “Section 3. Receiving Your Benefit” beginning on page 28 for information.

Grandfathered John Hancock USA Participants Who Choose an Annuity

Payment

If you’re a Grandfathered John Hancock USA Participant, you choose an annuity payment for your

benefit, and you commence your benefit before age 65, the portion of your benefit accrued prior to

December 31, 2011, will be reduced using the following pre-1998 reduction factors under the Manulife

Financial United States Salaried Employees Pension Plan:

If your age plus years of vesting service at termination total less than 92, the special reduction factors will

be:

ƒ 3% per year for the first five years that your payment start date precedes age 65, and

ƒ 4% per year for the next ten years.

If your age plus years of vesting service at termination total 92 or more, the special reduction factors will

be:

ƒ No reduction for benefits commenced at age 62 or older,

ƒ 3% per year for the first two years that your payment start date precedes age 62,

ƒ 4% per year for the next three years, and

ƒ 8% per year for the next seven years.

If your benefit under the standard actuarial reduction factors would be greater than under these special

reduction factors, you’ll receive the greater of the two benefits.


Final Average Pay Formula

If you’re a Grandfathered John Hancock Financial Network Participant or a Grandfathered John Hancock

Financial Services Participant, your benefits accrued through December 31, 2011, will be calculated under the following two formulas:

ƒ The Unified Cash Balance Formula

ƒ The Final Average Pay Formula

Your benefit accrued through December 31, 2011 (or through your benefit commencement date, if earlier) will be the larger of the two benefits calculated under these two formulas. If you work past December 31,

2011, and continue to be benefit-eligible, on or after January 1, 2012, you’ll receive a new cash balance account with a zero beginning balance which will grow with pay and interest credits as described under

the Unified Cash Balance Formula on page 11. Your total accrued benefit on or after January 1, 2012, will be the sum of your accrued benefit through December 31, 2011, and the cash balance account that

accrues on or after January 1, 2012.

If you’re in any of the following groups, your benefit will be calculated under the Final Average Pay Formula only:

ƒ John Hancock Financial Network Participants who are not Transition Employees and whose

employment ended prior to July 1, 2000

ƒ John Hancock Financial Network Participants who are Transition Employees and whose employment

ended prior to January 1, 2001

ƒ John Hancock Financial Services Participants whose employment ended prior to January 1, 2002

The remainder of this section describes how benefits are calculated under the Final Average Pay

Formula. For information on the Unified Cash Balance Formula, refer to the description beginning on

page 11.


Pension Formulas

The Final Average Pay Formula determines the annual amount of your pension benefit if you choose to receive it at age 65 in the form of a single life annuity. There are several versions of the Final Average

Pay Formula that apply to different groups of employees:

Group Final Average Pay Formula

John Hancock Financial Network Participants

Grandfathered John Hancock Financial Network Participants who are Transition Employees but were not Whole-Time Writing Agents on December 31, 2000

A. Your pension service up to 30 years × 1.43% × your final average pay up to the covered compensation amount

Plus

B. Your pension service up to 30 years × 1.80% ×

your final average pay in excess of the covered compensation amount

Plus

C. Your pension service in excess of 30 years ×

1.00% × the sum of A and B above

Grandfathered John Hancock Financial Netw ork

Participants w ho are Transition Employees and w ere

Whole-Time Writing Agents on December 31, 2000


Plus

B. Your pension service up to 35 years × 1.80% × your final average pay in excess of the covered compensation amount

Plus


1.00% × the sum of A and B above Grandfathered John Hancock Financial Netw ork

Participants w ho are not Transition Employees

John Hancock Financial Netw ork Participants w ho are

eligible only for f inal average pay benefits

A. Your pension service up to 30 years × 1.43% ×

your final average pay up to the covered compensation amount

Plus



Plus



Plus

D. 1.25% × your annual compensation received prior to July 1, 1974, for which your required contributions remained in the plan


Group Final Average Pay Formula

John Hancock Financial Services Participants

Grandfathered John Hancock Financial Services

Participants

John Hancock Financial Services Participants who are eligible only for final average pay benefits (excluding Marketing Representatives)


Plus



Plus



John Hancock Financial Services Participants who are eligible only for final average pay benefits and were Marketing Representatives

A. Your pension service up to 35 years × 1.43% ×

your final average pay up to the covered compensation amount

Plus

B. Your pension service up to 35 years × 1.80% × your final average pay in excess of the covered compensation amount

Plus



Pension Service

Your pension service under the Final Average Pay Formula equals the number of years and completed

months during which you were eligible for the plan, starting with your date of hire and ending on your

severance-from-service date or December 31, 2011, if earlier. If you were hired during the first three days

of a month, you receive credit for the full month. Pension service includes paid time that you were away

from work for an approved leave of absence, including vacation, holiday, illness, incapacity (including

disability after January 1, 2008), layoff, jury duty or military service. It does not include time for which you were paid only for the purpose of complying with applicable workers’ compensation, unemployment

compensation or disability insurance laws.

5 Your base date is defined as follows:

ƒ

ƒ

If your employment ends during the first six months of any calendar year, your base date will be the January 1 nine years prior

to the year in which your employment ends, or December 31, 2011, if earlier.

If your employment ends during the last six months of any calendar year, your base date will be the January 1 eight years prior

to the year in which your employment ends, or December 31, 2011, if earlier


Final Average Pay

Your final average pay is calculated differently depending on your participant group:

Participant Group Final Average Pay


Signator Managing Directors who participated in

the retirement program for Formula General Agents and were grandfathered on January 1, 2001, or whose employment ended prior to January 1, 2001

The annual average of your total eligible compensation during the five anniversary years in which your eligible compensation was highest during the final eight anniversary years of your employment with a participating employer (An anniversary year is defined as any 12-month period ending on the same month and day as the month and day of your severance-from-service date).

Grandfathered John Hancock Financial Network Participants who are Transition Employees but were not Whole-Time Writing Agents on December 31, 2000

Greater of:

ƒ The annual average of your total eligible

compensation for the 60 months preceding your last day of active employment or December 31, 2011, if earlier, with a participating employer

ƒ Your annual average total compensation for

the five consecutive calendar years in which your eligible compensation was highest during the final ten calendar years of your employment or December 31, 2011, if earlier, with a participating employer

Grandfathered John Hancock Financial Network Participants who are Transition Employees and were Whole-Time Writing Agents on December 31, 2000

The annual average of your total eligible compensation beginning on your base date5 and ending on the date you retire or otherwise stop working as a Transition Whole-Time Writing Agent and not including the two years in which your eligible compensation was lowest

6 Your base date is defined as follows:

ƒ

ƒ

If your employment ends during the first six months of any calendar year, your base date will be the January 1 nine years prior

to the year in which your employment ends, or December 31, 2011, if earlier.

If your employment ends during the last six months of any calendar year, your base date will be the January 1 eight years prior

to the year in which your employment ends, or December 31, 2011, if earlier


Participant Group Final Average Pay

Grandfathered John Hancock Financial Network Participants who are not Transition Employees

John Hancock Financial Network Participants who are eligible only for final average pay benefits

Greater of:




the five consecutive calendar years in which your eligible compensation was highest during the final 15 calendar years of your employment or December 31, 2011, if earlier, with a

participating employer



Participants who are eligible only for final average pay benefits (excluding Marketing Representatives)

Greater of:




the three consecutive calendar years in which your eligible compensation was highest during the final ten years of your employment or December 31, 2011, if earlier, with a participating employer

Note: This definition applies only if you were actively employed by a participating employer on February 1, 2001. If your employment ended before

then, please refer to your prior plan document.


The annual average of your total eligible

compensation beginning on your base date6 and ending on the date you retire or otherwise stop working as a Transition Whole-Time Writing Agent and not including the two years in which your eligible compensation was lowest


Covered Compensation

Covered compensation is the average of the annual Social Security taxable wage base over the 35-year period ending in the year you reach your Social Security retirement age. By law, your Social Security

retirement age is determined by your year of birth, as shown below:

Year of Birth Social Security Retirement Age

1937 and earlier 65

1938–1942 65 plus two months for each year after 1937

1943–1954 66

1955–1959 66 plus two months for each year after 1954

1960 and later 67

The Internal Revenue Service (IRS) publishes a table each year that lists the covered compensation that

applies to an individual based on the individual’s year of birth. In developing the table, the IRS calculates

the covered compensation amount for individuals in each birth year using actual wage bases for all past

years and the most recent taxable wage base for all future years. Because the taxable wage base tends

to increase each year, the covered compensation amount for each birth year tends to increase each year as well. To determine your pension benefit, the IRS covered compensation table in effect at the time your

employment ends, or December 31, 2011, if earlier, is used.

Benefit Reductions

The Final Average Pay Formula determines the annual amount of your pension benefit if you choose to receive it at age 65 in the form of a single life annuity. If you receive your benefit earlier than age 65, your

benefit may be reduced. Depending on your age and service when you separate from service and when

you commence your benefit, however, you may be able to receive an unreduced benefit before age 65.

The table below summarizes the requirements to receive an unreduced benefit:

Requirements for an Unreduced Benefit Prior to Age 65

Group

Required Age and Service

When You Separate From Service

Required Age and Service

When Your Benefit Commences


Signator Managing Directors who participated in the retirement program for Formula General Agents and were grandfathered on January 1, 2001, or whose employment ended prior to January 1, 2001

When you separate from service, you must be at least age 55, have completed at least ten years of service, and your age and service must add up to at least 70 years

When your benefit commences, you must be at least age 60, and your age and service must add up to at least 85 (or would have added up to at least 85 if you had continued to be employed)



Required Age and Service When You Separate From

Required Age and Service When Your Benefit

Group Service Commences

Grandfathered John Hancock Financial Network Participants who are Transition Employees but were not Whole-Time Writing Agents on December 31,

2000

When you separate from service:

ƒ You must be at least age 55,

have completed at least ten years of service, and your age and service must add up to at least 70 years; or

ƒ You must be at least age 50

and have completed at least 15 years of service

When your benefit commences:


be within ten years of your Social Security normal retirement age and have at least 25 years of service (or would have had at least 25 years of service if you had continued to be employed); or

ƒ You must be at least age 60, and your age and service must add up to at least 85 (or would have added up to at least 85 if you had continued

to be employed)

Grandfathered John Hancock Financial Network Participants who are Transition Employees and were Whole-Time Writing Agents on December 31, 2000

When you separate from service, you must be at least age 55, have completed at least ten years of service, and your age and service, must add up to

When your benefit commences, you must be at least age 60, and your age and service must add up to at least 85 (or would have

added up to at least 85 if you had at least 70 years continued to be employed)

John Hancock Financial Network Participants who are not Transition Employees

John Hancock Financial Network

Participants who are eligible only

No unreduced benefit available until age 65

for final average pay benefits



Required Age and Service When You Separate From

Required Age and Service When Your Benefit

Group Service Commences



John Hancock Financial Services Participants who are eligible only for final average pay benefits and were not Marketing Representatives



have completed at least ten years of service, and your age and service must add up to at least 70 years, or



When your benefit commences:

ƒ You must be age at least

age 55, be within ten years of your Social Security normal retirement age and have at least 25 years of service (or would have had at least 25 years of service if you had continued to be employed), or


and your age and service must add up to at least 85 (or would have added up to at least 85 if you had continued

to be employed)




have completed at least ten years of service, and your age and service must add up to at least 70 years, or



When your benefit commences, you must be at least age 60, and your age and service must add up to at least 85 (or would have added up to at least 85 if you had continued to be employed)

If you commence your benefit before you’re eligible for an unreduced benefit, it will be reduced as follows:

ƒ If you receive your benefit on or after your 50th birthday, it will be reduced by 4.8% per year for the

period between the date on which you would be eligible for an unreduced benefit if you had continued to be employed and the date on which you actually receive your benefit.

ƒ If you receive your benefit before your 50th birthday, it will be reduced by 4.8% per year for the

period between your normal retirement date (at age 65) and your 50th birthday. It would be further reduced by an actuarial reduction factor for the period between your 50th birthday and the date on which you actually receive your benefit.


Pension Supplement for Certain Participants

You may be eligible for an additional monthly payment until age 65 if all of the following are true:

ƒ You’re a Grandfathered John Hancock Financial Network Participant who is also a Transition

Employee, or a Grandfathered John Hancock Financial Services Participant,

ƒ You qualify for an unreduced pension benefit prior to age 65,

ƒ You commence your benefit before age 65, and

ƒ You’re not receiving Social Security disability benefits on your benefit commencement date.

If you’re eligible for this payment, you’ll receive, in addition to your regular pension benefit:

ƒ A monthly payment of $250 from your benefit commencement date until the first of the month prior to

the month in which you turn age 62, and

ƒ A monthly payment of $135 from the first of the month in which you turn age 62 until the first of the

month prior to the month in which you turn age 65.

If you’ll be age 62 or older in the month your benefit commences, you’ll receive only the $135 monthly

payment until you reach age 65.

If you choose to receive your pension benefit as a lump sum and you’re eligible for the monthly pension supplement, the value of your monthly supplement will be converted to a lump-sum amount and paid in a

single payment along with the rest of your lump-sum pension benefit.

If You Separate From Service and Are Later Rehired

If you were eligible for a final average pay benefit only when your employment ended, and you’re later rehired by a participating employer before your benefit commences, the actuarial value of your unpaid

accrued benefit will be converted to an opening balance for a new cash balance account as of the day

you’re rehired. Upon your re-employment, you’ll not be considered a grandfathered participant, even if

you had been considered a grandfathered participant in the past. Your entire pension benefit will be the

opening balance in your new cash balance account plus any pay credits and interest credits earned after you’re re-employed by a participating employer. Your minimum benefit, however, will be the benefit you

had accrued prior to your re-employment.

Receiv ing Your Benefit 28

Section 3. Receiving Your Benefit

When You Can Receive Your Benefit

The normal payment date for your vested benefit is the first of the month in which you turn age 65. If your

employment ends on or after your normal payment date, you may commence your benefit on the first day of the month after your termination date. If your employment ends before age 65, you can receive your

benefit on the first day of any month after you leave the company. You cannot receive your benefit while

you’re still actively employed by a participating employer.

Effective January 1, 2018, the plan has been amended for participant benefit commencements. If you are over the age of 65 when you commence your benefit, you will either receive a lump sum in the amount of

missed monthly payments retroactive to age 65, with age 65 calculated monthly payments for each

month thereafter, or age 65 calculated monthly payments with actuarial increase adjustments each month

you receive benefit payments. The effective pension plan formulas at time of your separation from

service from the company will dictate the option that applies to you.

If you elect to defer commencement past age 65, please note that there may be additional federal tax

penalties if commencement has not begun before the end of the year in which you reach your Required

Minimum Distribution (RMD) age of 70 ½. The impacts of these penalties may vary from participant to

participant, so it’s important to keep the year in which you turn 70 ½ in mind if you choose to defer

commencement past age 65.

How to Receive Your Benefit

Once your employment has ended and you’re ready to receive your benefit, you may begin the benefit

payment process via the John Hancock benefits website, www.ybr.com/jhancock, or by calling 1-866-YBR-4YOU (1-866-927-4968).

Automatic Payment of Benefits Valued at $1,000 or Less

If, as of the first day of the third month following your separation from service, the value of your vested

benefit is $1,000 or less, your benefit will automatically be paid to you in a single lump-sum payment.

Payment will be made as soon as administratively possible after your separation from service.

Form of Payment

The normal form of payment for your vested benefit depends on your marital status at the time you

receive your benefit. If you’re married when you receive your benefit, the normal form of payment is a

50% joint and survivor annuity with your spouse as beneficiary. If you’re unmarried at the time you receive

your benefit, the normal form of payment is a single life annuity. In addition to these normal forms of payment, you have several optional forms. The following table summarizes the forms of payment that

may be available to you. Note that if you’re married at the time you receive your benefit, certain forms of

payment can be elected only with your spouse’s written consent.

Type of Payment Description Restrictions



Single life annuity Provides you with monthly payments for life. This annuity form provides the largest monthly payment to you during your life, but provides no benefits to your beneficiary and no guaranteed minimum number of payments.

If you’re married, spousal consent is required.



Joint and survivor annuity Provides you with monthly payments for life and, should you die before your beneficiary dies, provides your beneficiary with monthly payments for his or her life after your death. Your beneficiary’s monthly payment will be a percentage of your monthly payment. You can elect any of the following percentages for your beneficiary’s benefit: 10%, 50%, 66⅔%, 75% or 100%. The larger the percentage you select for your beneficiary, the smaller the monthly payment

If you’re married, spousal consent is required to:

ƒ Choose a beneficiary other than your spouse, or

ƒ Choose an option other than

a 50% joint and survivor annuity.

provided to you.

True 66⅔% joint and survivor annuity

Provides you and your beneficiary with a monthly payment while you both are alive. If either you or your beneficiary dies, the survivor receives a monthly payment for life equal to

66⅔% of the original monthly


payment.

Ten-year certain and life annuity Provides you with monthly payments for life, with a minimum of 120 monthly payments. Should you die prior to receiving 120 monthly payments, your beneficiary will receive monthly payments until the minimum 120 payments have been made. A single payment will be made to your beneficiary in lieu of the remaining monthly payments if your beneficiary requests or is a


trust, institution or estate.

Lump sum Provides your benefit in a single payment.

Not available to participants

without cash balance accounts.




Five-year certain Provides your benefit in 60 monthly payments. If you die before all payments are made, the remaining payments will be paid to your beneficiary. A single payment will be made to your beneficiary in lieu of the remaining monthly payments if your beneficiary requests or is a

Not available to participants without cash balance accounts.



Ten-year certain Provides your benefit in 120 monthly payments. If you die before all payments are made, the remaining payments will be paid to your beneficiary. A single payment will be made to your beneficiary in lieu of the remaining monthly payments if your beneficiary requests or is a

Not available to participants

without cash balance benefits. If you’re married, spousal

consent is required.


Partial lump sum in combination with another option

Provides you with 25%, 50% or

75% of your benefit in a lump sum with the remainder of your benefit paid in a form you choose from the other forms of payment available to you.

Prior to January 1, 2012: Available only to John Hancock Financial Services and John Hancock Financial Network Participants with cash balance benefits.

Effective January 1, 2012: Available to any participant except John Hancock USA Participant who was hired prior to January 1, 2008, or any participant hired on or after January 1, 2008, whose employment ended and his or her benefit under this plan commenced prior to January 1, 2012.




Joint and survivor annuity with term certain

Provides a monthly payment to you for life, with a minimum number of payments (either 60 or 120 payments, depending on your election). Also provides a monthly payment (of either 50% or 100% of your monthly payment, depending on your election) to your beneficiary for life should you die before your beneficiary. If the minimum number of payments has not been made when you die, your beneficiary will receive full payments until the minimum number have been made and then receive the 50% or 100% survivor payments after all minimum payments have been

Available only to John Hancock USA Participants.


made.

Five-year certain and life annuity Provides you with monthly payments for life, with a minimum of 60 monthly payments. Should you die prior to receiving 60 monthly payments, your beneficiary will receive monthly payments until the minimum 60 payments have been made. A single payment will be made to your beneficiary in lieu of the remaining monthly payments if your beneficiary requests or is a

Available only to John Hancock USA Participants.





Social Security level income option

With this option, your monthly annuity payments before age 65 are increased and your monthly annuity payments after age 65 are reduced so that your total monthly payments from both the pension plan and Social Security remain relatively level before and after age 65.

This option can be elected with any of the following annuity types for which you would otherwise be eligible: ƒ Single life

ƒ Life with five or ten years

certain

ƒ 50% or 100% joint and

survivor

ƒ 50% or 100% joint and

survivor with either five or ten years certain

Available only to John Hancock USA Participants. You must commence your benefit before age 65 to receive your benefit in this form. The benefit must also be large enough to allow for payments past age 65 based on your estimated Social Security benefit.


Actuarial Value of Your Payment Options

All of the payment options available to you generally have the same actuarial value as the single life

annuity option7 and will be determined using standard actuarial factors including:

ƒ Your age when you begin receiving payments (and your beneficiary’s age, if applicable),

ƒ The applicable mortality table as defined in Internal Revenue Code Section 417(e)(3), and

ƒ The applicable interest rates as defined in Internal Revenue Code Section 417(e)(3) in effect for

September of the prior calendar year.

7 If you’re a John Hancock USA Participant and you receive your benefit as a lump-sum or term-certain payment, the value of your

benefit earned under the John Hancock USA Cash Balance Formula will not be less than your John Hancock USA Cash Balance Account. This value may differ from the actuarial value of the single life annuity benefit earned under the John Hancock USA Cash

Balance Formula.


If you were a John Hancock USA Participant and you elect a joint and survivor annuity with your spouse

as the beneficiary, the value of your joint and survivor annuity will be determined assuming your spouse’s

age is:

ƒ The same as yours if your spouse is less than ten years younger than you, or

ƒ Your age minus ten years if your spouse is ten or more years younger than you.

If your spouse is your beneficiary and is older than you, the value of your joint and survivor annuity will be

determined using your and your spouse’s actual ages.

If you were a John Hancock Financial Services Participant or a John Hancock Financial Network Participant and you elect a 10%, 50%, 66⅔%, 75% or 100% joint and survivor annuity, a 66⅔% true joint

and survivor annuity, or a ten-year certain and life annuity, your annuity will be calculated both with

standard actuarial factors and with special factors specified in the plan document, and you’ll receive

whichever benefit is larger.

If You Work Past Age 70½

If you work past age 70½, your accrued benefit will be actuarially increased. The increase will be calculated for a period that ends at the benefit commencement date and begins on:

ƒ April 1 following the calendar year in which you reach age 70½, or

ƒ January 1, 1997, if you reached age 70½ prior to January 1, 1996, or

ƒ On the date the benefit accrues if that date is later than either of the above dates.

Electing to Receive Your Benefit

When you separate from service, you must provide written notice to your manager or your Human Resource partner. After you leave, you’ll receive a statement informing you of your right to receive your

vested benefit and instructions on when and how you can commence benefit payments. If you do not

elect to commence your benefit before you attain age 65, you’ll receive notice of the option to

commence about three to four months prior to your 65th birthday and may decide to commence at that

time. You can initiate the benefit commencement process on the John Hancock benefit website,

www.ybr.com/jhancock, or by calling 1-866-YBR-4YOU (1-866-927-4968).

If You Return to Work After Your Vested Benefit Has Been Paid

If you return to work after you have received your vested pension benefit, you may begin participating in

the pension plan on your re-employment date, assuming you meet the eligibility requirements. You’ll

begin earning new benefits under the plan as if you were a new participant, except that your benefits will

be fully vested as soon as you begin participating.



If you’re receiving annuity payments when you return to work, those payments will continue as long as:

ƒ Your re-employment date was at least 90 days after your severance-from-service date, and

ƒ Your benefit payments were not suspended under the terms of a prior plan in which you participated.

Receiving Your Benefit if You Become Disabled

If you’re considered disabled under the terms of the plan, you may receive your benefit at any time you

elect, but not later than:

ƒ Your normal retirement date, or

ƒ If you became disabled on or after your 62nd birthday, the first day of the month after your Company

long-term disability plan benefit payments end.

If You Die Before Your Benefit Commences and Had Earned a

Cash Balance Benefit

If you earned a cash balance benefit and die before benefit payments have begun, your vested benefit

will be payable as follows, if a valid beneficiary election, effective December 8, 2011, is not on file:

ƒ If you’re married at the time of your death. Your benefit will be paid to your spouse. If your benefit

is valued at $1,000 or less on the first of the month following your death, it will be paid to your spouse in a lump sum as soon as administratively possible after your death. If your benefit is valued at more than $1,000, your spouse may elect to receive it in a lump-sum payment or as a single life annuity. Payment may commence on the first day of any month following your death, but not later than the first of the month in which you would have attained age 65 had you lived.

ƒ If you’re unmarried at the time of your death or if your spouse cannot be located. Your death

benefit will be paid in a lump sum to your estate. The payment will be made as soon as administratively possible after your death.

ƒ If you’re a John Hancock USA Participant and have a valid beneficiary election on file. In this

case, your death benefit will be paid in accordance with your election on file.

The value of the benefit provided at your death is generally equal to the value of your cash balance

account at your death. If you’re a Grandfathered Financial Network Participant or a Grandfathered Financial Services Participant and are married at the time of your death, the value of the benefit provided

to your spouse will be the greater of the value of your cash balance account or the value of the monthly

payments to which your spouse would have been entitled had you elected a 50% joint and survivor

annuity and had commenced your benefit immediately before your death.


If You Die Before Your Benefit Commences and Had Not Earned

a Cash Balance Benefit

If you’re a participant without a cash balance benefit, death benefits, if any, will be governed by the terms

of the plan in effect at the time your employment ended.

If You Die After Your Benefit Commences

If you die after your benefit has commenced, benefits will be provided to your beneficiary only if you’ve

elected a form of payment that provides benefits to a beneficiary.

Pay ment and Tax Information 36

Section 4. Payment and Tax Information

Receiving Annuity Payments

You can receive your annuity payment as a check, or you can elect to have it directly deposited into your

bank account. When using direct deposit:

ƒ Your money is transferred through the banking system directly to your bank account.

ƒ The transfer occurs on the payment date.

ƒ You’ll receive a notice in the mail that the money has been transferred.

Most participants choose to receive their pension payments through direct deposit. Also, the government has chosen direct deposit as the preferred method to send Social Security checks. Direct deposit has

these advantages over paper checks:

ƒ Direct deposits aren’t lost in the mail.

ƒ Direct deposits are still made if you’re away from home.

ƒ Direct deposits are made according to the pension payment schedule.

ƒ You have quicker access to your money.

Your annuity benefit is payable on the first of the month. Paper checks and direct deposit notices are sent a few days before the first of the month, so that you’ll receive the money on or about the first of the

month. When the first of the month is on a weekend or bank holiday, your payment is direct deposited on

the last business day before the first of the month. An exception is made for January 1 payments. If

January 1 falls on a weekend, your payment is deposited on the first business day in January. This

ensures that your January payment is taxed in the year that begins on January 1 rather than in the prior

year.

What to Do if Your Payment Is Missing

The steps to take if your payment is missing depend on whether you have chosen to receive your

payment as a paper check or direct deposit:

ƒ Paper checks—You can request to have your payment stopped and reissued if you haven’t received

the payment ten days after it was mailed. If you know that your check has been lost or destroyed, you don’t have to wait ten days. Call the John Hancock Benefits Center at 1-866-YBR-4YOU (1-866-927-4968) to discuss reissuing your check.

ƒ Direct deposits—If your bank has not received the direct deposit of your pension payment by the

tenth business day of the month, or if you have not received your direct deposit notice in the mail by this date, call the John Hancock Benefits Center at 1-866-YBR-4YOU (1-866-927-4968).


Taxes and Withholding

Your pension payments are subject to federal income taxes and may also be subject to state income

taxes depending on where you live. In certain situations, taxes may be withheld from your payment. Withholding may be optional or mandatory, depending on the type of payment you choose. You should

consult with a tax advisor to learn more about the taxes on your pension payment and, if tax withholding

is optional, to determine whether having taxes withheld from your pension payment is appropriate for you.

Withholding on Annuity Payments

If you’re receiving annuity payments for your qualified pension benefit, you may choose either:

ƒ To have tax withheld, or

ƒ To opt out of tax withholding.

You can make separate choices for federal and state tax withholding. For annuity payments, federal tax

withholding is optional. Depending on the state where you live, state withholding could be required or optional.

If you choose not to have taxes withheld or if you don’t have enough income tax withheld from your

pension payments, you may be responsible for payments of estimated tax. You may be charged penalties

if your withholding and estimated tax payments aren’t enough to satisfy the estimated tax rules.

If the amount withheld and estimated tax payments are:

ƒ Less than the entire amount of income tax due, you pay the remaining tax when you file your income

tax return.

ƒ Greater than the entire amount of income tax due, you can file for a refund of the excess withholding

amount when you file your income tax return.

You can change your withholding choice as often as you want.

Withholding on Lump-Sum Payments

If a partial or full lump-sum payment is made directly to you, 20% mandatory federal income tax

withholding is taken from the taxable amount of the lump sum. This does not necessarily mean that your

lump-sum payment will be taxed at the 20% rate; just that 20% is withheld for tax purposes. Your actual

tax liability is based on your personal overall taxable income.


Additional taxes may apply to your lump-sum payment if you don’t choose a rollover. If you receive your

lump sum before you reach age 59½, you may owe an additional 10% tax on the taxable portion of the

benefit. If you’re eligible for a lump-sum payment, you’ll receive a Special Tax Notice with your pension forms when you separate from employment. The Internal Revenue Service (IRS) requires that you

receive the Special Tax Notice no less than 30 days and no more than 90 days before the date of

payment. Once received, you have 30 days to review it to help you understand the tax implications of

your payment.

If You Don’t Make a Withholding Election

If you don’t make a withholding choice on your annuity payments, you’ll be defaulted to the withholding

required by the Internal Revenue Service (IRS).

The IRS requires that your federal withholding be defaulted based on a status of married with three

withholding allowances. This may or may not be an appropriate amount to withhold for your

situation. The more allowances, the lower the amount of taxes withheld. If you require fewer or more allowances or exemptions, you must make your withholding choice accordingly.

Note: Even if you’re single, your federal withholding choice must be defaulted to a status of married with

three withholding allowances if you fail to make your own choice. The default choice for state withholding

varies depending on the state in which you live.

Payments Eligible for Rollovers

Certain types of payments may be eligible for a “rollover” into another qualified retirement plan or

Individual Retirement Account (IRA). When a payment is rolled over, income taxes may be deferred on

the payment.

The following payments may be rolled over into a qualified retirement plan:

ƒ Lump-sum payments

ƒ Partial lump-sum payments

ƒ Five-year term-certain payments

ƒ Automatic lump-sum payments less than or equal to $1,000

There are two types of rollover:

ƒ Direct rollover—A direct rollover occurs when the plan sends the payment to you for deposit directly

into an eligible retirement plan or IRA that accepts rollovers. The rollover check will be sent either directly to the receiving institution or to you. In either case, the check will be made payable directly to the new plan or IRA.


ƒ 60-day rollover—For a 60-day rollover, the payment is first made to you and you then make the rollover into the new eligible retirement plan or IRA. You must make the check payable to the receiving financial institution. You must deposit your rollover amount into the new account within 60 days of receiving your payment. If the check is paid directly to you, 20% withholding will apply. If you want to roll over the entire amount of your payment, you need to replace the 20% that has been sent to the IRS with your own funds. If you do not replace the 20% withheld, the 20% withheld will count as a taxable distribution and may be subject to a 10% tax penalty if you’re younger than age 59½.

A Special Tax Notice is sent at the time of your payment to provide more information about your options

and their tax and withholding consequences.

Qualified Domestic Relations Order (QDRO)

If you become divorced or separated, a type of court order known as a Qualified Domestic Relations

Order (QDRO) could require part of your benefit to be paid to someone else—your spouse or children, for

example. For a court order to qualify under the plan, certain procedures must be followed. For more

information, contact the John Hancock Qualified Order team at the below: Mailing address John Hancock Qualified Order Team P.O. Box 7144

Rantoul, IL 61866-7144

Telephone 1-866-YBR-4YOU (1-866-927-4968) and request to speak to a Qualified Order specialist. Office hours are Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern time.

Administrative Information 40

Section 5. Administrative Information

Plan Identification

When dealing with or referring to the plan in benefit appeals or other correspondence, you’ll receive help

more quickly if you identify the plan fully and accurately. To identify the plan, use the Employer Identification Number (EIN) and the Plan Number (PN). The Manufacturers Investment Corporation EIN is

38-3261832. The PN for the John Hancock Pension Plan is 003.

The John Hancock Pension Plan is a defined benefit plan.

Plan Year

Plan records are maintained on a calendar-year basis, starting each January 1 and ending each December 31.

Plan Trustee

John Hancock’s contributions to the plan are directed to the John Hancock Pension Plan Trust Fund,

which is the sole source of benefits. The trustee of the fund is:

State Street Bank and Trust Company 200 Clarendon Street Boston, MA 02116

The trustee makes benefit payments as authorized by the plan administrator.

Service of Legal Process

Legal process may be served on:

Mailing address:

John Hancock Life Insurance Company (U.S.A.) Global Pensions B03-22 P.O. Box 111 Boston, MA 02117

Telephone: +1-877-455-2055

Service of legal process may also be made upon the plan trustee or the plan administrator.


Funding Information and Source of Contributions

The plan is funded by contributions from the employer. Contributions are actuarially determined and are

deposited in a trust fund. Benefits are provided through a group annuity contract issued by John Hancock and through other investment funds held by the plan trustee.

Plan Sponsor and Administrator

Manufacturers Investment Corporation is the sponsor of your pension plan. John Hancock Life Insurance

Company (U.S.A.) is the plan administrator of your pension plan. You may direct any questions about

your rights under the plan to the plan administrator at any time by writing to this address:

Mailing address:

John Hancock Life Insurance Company (U.S.A.) Global Pensions B03-22 P.O. Box 111 Boston, MA 02117

Telephone: +1-877-455-2055

You and your beneficiary may obtain an updated list of the employers sponsoring the plan by sending a

written request to the above address. The list of sponsoring employers is also available for inspection at the above address.

The plan administrator has been delegated full and final authority and discretion to:

ƒ Make all final determinations or allow changes under the plan, including eligibility for benefits, and

ƒ Interpret and construe all of the terms and provisions of the plan.

The plan administrator also authorizes or performs the day-to-day operations of the plan, such as

authorizing benefit payments, considering appeals, resolving questions, maintaining records, filing

reports, and distributing information to plan participants and beneficiaries. The plan administrator may

delegate one or more of its duties to its agents.


Benefit Review Process

Initial Decision

When you file an application for benefits, the plan administrator reviews the application and makes a

decision to either approve or deny it (in whole or in part). You’ll receive a written notice of the decision

within 90 days of receipt of the claim by the plan. In some situations, the plan may need an extension of

time to make a decision (for example, if the plan needs additional information). In these cases, the period

may be extended for an additional 90 days. The extension notice will explain why an extension is necessary and when the plan expects to make a decision.

If Your Benefit Is Denied

If your benefit is denied, you’ll receive a written notice that explains:

ƒ The specific reasons for the denial,

ƒ The specific plan provisions on which the denial is based,

ƒ A description of any additional material or information needed and an explanation of why it’s

necessary, and

ƒ An explanation of the plan’s benefit review procedures, applicable time limits and your rights to bring

a civil action under section 502(a) of the Employee Retirement Income Security Act of 1974 (ERISA) following a denial on review.

Request for Review if Your Benefit Is Denied

After receiving the notice, you, your beneficiary or your authorized representative may ask for a full and fair review of the decision by writing to the plan administrator. An authorized representative is one who

has power of attorney or one for whom we have a written/signed letter from you or your beneficiary that

designates the representative and provides the representative’s name, address and telephone number as

your authorized representative. You must make this request within 120 days of the date you receive

notice of the denial. During the 120-day period, you or your authorized representative will be given reasonable access to all related documents and information, and you may request copies free of charge. You can also submit written comments, documents, records and other information to the plan

administrator.

Decision on Review

The plan administrator will review the claim again and make a decision based on all comments,

documents, records and other information you’ve submitted.

In most cases, you’ll receive written notice of the plan administrator’s decision within 60 days of receipt of

your request for review. If necessary, however, the period may be extended for an additional 60 days.


You’ll receive a written notice of this extension prior to the end of the initial 60-day period. If, on review,

your benefit is denied, you’ll receive a written notice that explains:

ƒ The specific reasons for the denial upon review,

ƒ The specific plan provisions on which the denial is based,

ƒ That you’re entitled to receive a copy of all documents, records and information relevant to your

claim, upon request and free of charge, and

ƒ Any voluntary appeal procedures offered by the plan, your right to obtain information about such

procedures and a statement of your right to bring an action under ERISA section 502(a).

The claims administrator has the exclusive authority to interpret the provisions of the plan and to make

final determinations regarding claims for benefit under the plan as described in this summary plan

description (SPD). A participating employer shall have final authority to decide issues, including questions

of eligibility for benefits, which aren’t addressed in the provisions of the plan document or with respect to which the provisions of the plan document are ambiguous.

Situations Affecting Your Benefits

The pension plan is designed to provide you with continuing income when your employment ends.

However, some situations could affect your benefits. Those situations are summarized here:

ƒ If you fail to make proper application for plan benefits or fail to provide necessary information, your

payments may be delayed.

ƒ If you separate from service permanently for any reason before you have become 100% vested,

attain normal retirement age, are totally disabled or die, all or a portion of your benefit may be forfeited.

ƒ If you don’t keep your most recent address on file and John Hancock can’t locate you, your payments

can be delayed. Once you (or your beneficiary, if you die) provide a current address, payments can be made.

ƒ The Internal Revenue Service (IRS) sets maximum limits on the amount you and a participating

employer can contribute to your plan every year. These limits generally apply to higher-paid employees. You’ll be notified if they affect you.

ƒ Your pension plan benefit belongs to you and may not be sold, assigned, transferred, pledged or

garnished, under most circumstances. However, a Qualified Domestic Relations Order (QDRO) may assign to an alternate payee the right to a portion of the benefits payable to you under the plan.

ƒ As required by law, alternate plan provisions go into effect if the plan becomes “top-heavy.” The plan

is top-heavy if more than 60% of cumulative accrued benefits under the plan are payable to “key employees.” Key employees include Company officers, highly paid employees who are 1% owners of a participating employer, 5% owners of a participating employer and their beneficiaries. You’ll be notified in the unlikely event that the plan becomes top-heavy.


ƒ If you (or your beneficiary) are unable to care for your own affairs, any payments due may be paid to someone who is authorized to conduct your affairs. This may be someone selected by you or a court-appointed guardian.

ƒ If you’re absent from employment due to service in the uniformed services and are subsequently

re-employed, you may be entitled to certain rights and benefits. For example, your period of military service may count toward eligibility, vesting and benefit service.

Changes to the Pension Plan

If There Are Changes

While Manufacturers Investment Corporation expects to continue the plan indefinitely, it reserves the right to amend, modify, suspend or terminate the plan at any time, at its sole discretion by action of the plan

administrator. If the plan changes or ends, certain laws apply to protect part or all of your plan benefits.

A plan change may transfer plan assets and debt to another plan or split the plan into two or more parts.

If John Hancock changes or ends the plan, it may decide to set up a different plan.

If the Plan Ends

In the unlikely event that the plan terminates, you’re immediately 100% vested as of the termination date

and you automatically become entitled to a final distribution. The same applies if there is a partial

termination affecting you.

Mergers, Consolidations or Transfers

If the plan is merged or consolidated, or the plan assets are transferred to another plan, your current

earned benefit is protected. Your earned benefit under the new plan, if the plan were to terminate

immediately after the change, would at least equal the amount you would have been entitled to receive if

the current pension plan had been terminated just before the merger, consolidation or transfer.

Benefit Payments if the Plan Ends—Order in Which Benefits Are

Paid

If the plan terminates, benefits are paid in an order prescribed by law and the plan document.

No money in the trust fund can be returned to John Hancock until all required benefits have been paid. In

general, if the plan trust fund doesn’t have enough money to pay all benefits in full, the plan will divide the

money available among plan participants based on the value of their benefits. You’ll receive more detailed

information at that time.


Pension Benefit Guaranty Corporation

Your benefits under this plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal

insurance agency. If the plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received

under their plan, but some people may lose certain benefits.

The PBGC guarantee generally covers the following:

ƒ Normal and early retirement benefits

ƒ Disability benefits if you become disabled before the plan terminates

ƒ Certain benefits for your survivors

The PBGC guarantee generally doesn’t cover the following:

ƒ Benefits greater than the maximum guaranteed amount set by law for the year in which the plan

terminates

ƒ Some or all benefit increases and new benefits based on plan provisions that have been in place for

fewer than five years at the time the plan terminates

ƒ Benefits that aren’t vested because you haven’t worked long enough for a participating employer

ƒ Benefits for which you have not met all of the requirements at the time the plan terminates

ƒ Certain early retirement payments (such as supplemental benefits that stop when you become

eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the plan’s normal retirement age

ƒ Benefits that are not part of your pension, such as health insurance, life insurance, certain death

benefits, vacation pay and severance pay

Even if certain of your benefits aren’t guaranteed, you still may receive some of those benefits from the

PBGC, depending on how much money your plan has and on how much the PBGC collects from

employers.

For more information about the PBGC and the benefits it guarantees, ask your plan administrator or

contact:

The Technical Assistance Division of the PBGC

1200 K Street N.W., Suite 930 Washington, D.C. 20005-4026 (202) 326-4000 (not a toll-free number)

TTY/TDD users may call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to

(202) 326-4000. Additional information about the PBGC’s pension insurance program is available through

the PBGC’s website on the Internet at http://www.pbgc.gov.

http://www.pbgc.gov/


Your Legal Rights Under the Plan

As a participant in the pension plan, you’re entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA), which are listed below.

Receiving Information About Your Plan and Benefits

As a plan participant, you’re entitled to:

ƒ Examine, without charge, at the plan administrator’s office and at other specified locations, such as

work sites, all documents governing the plan, 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 Employee Benefits Security Administration.

ƒ Obtain, upon written request to the plan administrator, copies of documents governing the operation

of the plan, including insurance contracts and copies of the latest annual report (Form 5500 Series) and updated summary plan description (SPD). The administrator may make a reasonable charge for the copies.

ƒ Receive a summary of the plan’s annual financial report. The plan administrator is required by law to

furnish each participant with a copy of this summary annual report.

ƒ Obtain a statement telling you whether you have a right to receive a pension benefit at normal

retirement age (age 65) and, if so, what your benefits would be at normal retirement age if you stop working under the plan now. If you don’t have a right to a benefit, the statement will tell you how much longer you have to work to get a right to a benefit. This statement must be requested in writing and isn’t required to be given more than once every 12 months. The plan 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 responsible for the operation of the plan. The people who operate your plan, called “fiduciaries” of the plan, have a duty

to do so prudently and in the interest of you and other plan 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 pension benefit or exercising your rights under ERISA.


Enforcing Your Rights

If your claim for a 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 related to the decision without charge and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a

copy of the plan documents or the latest annual report from the plan and don’t receive them within

30 days, you may file suit in a federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials weren’t sent because of reasons beyond the control of the administrator.

If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or

federal court. In addition, if you disagree with the plan’s decision or lack thereof concerning the qualified

status of a Domestic Relations Order or a Medical Child Support Order, you may file suit in federal court.

If it should happen that plan fiduciaries misuse the plan’s money, or if you’re discriminated against for

asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a 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 costs and fees. If you lose, the court may order you to pay these

costs and fees—for example, if it finds your claim is frivolous.

Assistance With Your Questions

If you have any questions about the plan, you should contact the plan administrator.

If you have any questions about this statement or about your rights under ERISA, or if you need

assistance in obtaining documents from the plan administrator, you should contact the nearest office of

the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone

directory, or:

U.S. Department of Labor Employee Benefits Security Administration Division of Technical Assistance and Inquiries 200 Constitution Avenue N.W. Washington, D.C. 20210

Manufacturers Investment Corporation reserves the right to amend, suspend or terminate the

pension plan at any time. John Hancock Life Insurance Company (U.S.A.) has the discretionary authority to interpret the terms of the plan summarized in this document and determine your

eligibility for benefits under its terms. This SPD is not a contract between Manufacturers

Investment Corporation or John Hancock Life Insurance Company (U.S.A.) and any employee or

associate, nor does it provide a guarantee of employment.

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