YOU R 2017 G U I D E TO
THE CMC
RETIREMENT
PLAN
ONE TEAM. ONE COMMITMENT. ONE GOAL. ONE CMC.
COMMERCIAL METALS IS INVESTED IN YOUR
FUTURE – AND WE WANT YOU TO BE, TOO!
The CMC Retirement Plan offers you a Company match, an annual discretionary Supplemental Contribution
and variety of investment options. Plus, the Plan has some additional features, like automatic increases,
designed to help you grow your savings a little more each year. This guide provides a brief overview of how the
Plan works, what you need to do and where to go to learn more.
PLAN FACTS – YOU’RE IN!
As a full-time employee of CMC, you will be eligible to join the Retirement Plan on the first of the month following the first 30 days of your
employment. Starting 31 days after you become eligible, unless you elect a different percentage or elect not to contribute at all – 6% of your
pay will be automatically deducted from each paycheck and contributed to your pre-tax account. You may elect to increase, decrease or
stop your deferrals at any time. Part-time employees are eligible after working 1,000 hours.
If you are automatically enrolled in the Plan, your pre-tax contribution rate will increase by 1% every September 1 until your deferral
percentage reaches 8%. This automatic feature makes it easier for you to increase your retirement savings.
YOUR CONTRIBUTIONS
SUPPLEMENTAL CONTRIBUTIONS
When you make your elections, you can save in one, or a
combination of the following ways (save from 1% to 50% of your
pay, up to IRS limits):
In addition to the Company match, each year CMC may elect to
make a discretionary Supplemental Contribution to the Plan. The
Supplemental Contribution amount, if any, will be determined
and authorized by the Board of Directors of Commercial Metals
Companies each Plan Year.
• Pre-tax 401(k) contributions, which are deducted from your
pay before federal income taxes are withheld. That means you’re
taxed on a smaller amount of money, so you’ll pay less in taxes
today. You pay taxes on these contributions and earnings when
you withdraw the money from the Plan.
• Roth after-tax 401(k) contributions, which are deducted from
your pay after federal income taxes are withheld. Investment
earnings on the Roth after-tax contributions are never taxed if
you received the money as a qualified distribution (see below).
Also note that the CMC Retirement Plan allows Roth
after-tax in-plan conversions. Learn more about Roth
after-tax conversions in the Summary Plan Description
available on MillimanBenefits.com.
If you’ll be age 50 or older during the calendar year, additional
catch-up contributions are also allowed, up to IRS limits.
WHAT IS A QUALIFIED ROTH AFTER-TAX DISTRIBUTION?
Your portion of any Supplemental Contribution will be based
on your basic compensation. You must have been employed on
the last day of the Plan Year (8/31) to be eligible to receive the
Supplemental Contribution.
VESTING
You always own 100% of the value of your contributions or any
money you rollover to the Plan. You will vest (gain ownership) in the
Company match and Supplemental Contributions in accordance
with the following schedule:
YEARS OF SERVICE
VESTING PERCENTAGE
Less than 2
0%
2
100%
In order to be a qualified distribution, the following two
requirements must be met:
• Your distribution must occur at least five years after your Roth
after-tax account has been established, and
• You must receive your distribution after age 59½ or upon death
or disability.
Distributions that do not meet the above criteria are considered
non-qualified and may be subject to income tax and early
distribution penalties – as explained in the chart on page 3.
GET PAID TO SAVE – COMPANY MATCH
CMC will contribute $1 for every $1 you save up to the first 3% of
your pay PLUS 50¢ on every $1 you save on the next 3% of pay, for
a total Company match of 4.5%.
Make sure you’re not leaving any money on the table – contribute
at least 6% to get the full Company match!
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HAVE ANOTHER 401(k) PLAN? ROLL IT OVER!
If you have an existing retirement plan account with
a prior employer or a rollover IRA, you may transfer
or roll over all or some of that account into your CMC
Retirement Plan account. By doing so, you combine
your retirement savings in one place and your
account can continue to grow!
INVESTMENT CHOICES
IN-SERVICE WITHDRAWALS
The Plan offers two approaches to investing:
You may take an in-service withdrawal for several reasons:
• Vanguard Target Date Funds. Target Date funds are designed
to take the confusion out of investing. They provide diversified
investment mixes based on expected retirement dates and
automatically shift to a more conservative blend as you near
your target retirement date.
• Rollover account. You may withdraw money you rolled into this
Plan at any time.
• Custom Investment Portfolio. You design your own asset
allocation. You may choose to invest in any combination of the
Plan’s investment options, which represent a broad range of risk
and return characteristics within various asset classes. To view
the full investment lineup, log on to MillimanBenefits.com.
If you’re automatically enrolled in the Retirement Plan, your
account will be invested in the Vanguard Target Retirement Fund
that most closely aligns with your normal retirement date (defined
in the Plan as age 65). It will stay invested in that fund until you
elect an alternate investment. You can make or change your
investment elections at any time on MillimanBenefits.com.
• Age 59½. Once you reach age 59 ½, you may request a withdrawal
for any reason from any account in which you are fully vested.
However, you must exhaust all of your other available accounts first
before you may withdraw any of your Roth after-tax account.
• Financial hardship. You may apply for a financial hardship
withdrawal from your own pre-tax contributions if you meet
strict IRS requirements. You must exhaust all of your pre-tax
contributions before you may withdraw any of your Roth
after-tax contributions.
Details are provided in the Summary Plan Description or
on MillimanBenefits.com.
DISTRIBUTIONS
If you leave employment with CMC, your account balances will
be payable either as a lump sum or partial payments as soon as
possible following the date of your termination. You may leave your
money in the Plan if your balance is $5,000 or more (excluding
rollover contributions). You should consider your distribution
options carefully to avoid penalties and taxes.
LOANS
You may borrow from your rollover and pre-tax/Roth after-tax
accounts (you must exhaust all of your pre-tax contributions before
you may borrow from any of your Roth after-tax contributions). The
minimum loan amount is $1,000 and only one outstanding loan at a
time is allowed. Use the loan modeling tool on MillimanBenefits.com
to see what the loan payment would be if you borrow different
amounts of money for different periods of time. Based on that
information, you can set the loan amount and repayment
schedule that fit your needs.
ADMINISTRATIVE FEES
All plans have administrative expenses related to legal, accounting,
recordkeeping and Investment Advisory services. To pay for these
expenses, all Retirement Plan participant accounts are charged a
$5.25 monthly fee. Additional plan expenses such as investment
advisory and audit charges may also be charged to participant
accounts. This monthly fee will be assessed to your account and
reflected as an expense on your quarterly participant statement.
Caution! Keep in mind that any money you take out of your account
as a loan won’t be able to help you earn toward your retirement. If
you really need a loan, be sure you’re only taking as much as you
need and repay it as soon as you are able.
A SNAPSHOT OF WHEN TAXES ARE PAID
PRE-TAX 401(k) ACCOUNT
Your pre-tax contributions
and related earnings
ROTH AFTER-TAX 401(k) ACCOUNT
EMPLOYER ACCOUNTS
Your Roth after-tax
contributions
Earnings on your Roth
after-tax contributions
Company match,
Supplemental Contributions
and related earnings
Pay no taxes
If Roth after-tax account in
effect for 5 years (a qualified
distribution), pay no taxes
Pay taxes but no penalty
IN-SERVICE WITHDRAWALS
After age 59½
Pay taxes but no penalty
FINAL DISTRIBUTIONS
After termination
of employment
• Roll over to another employer
qualified plan or to a
tax-deferred IRA – no taxes
• Roll over to a Roth IRA and
pay taxes
• Take a cash lump sum and pay
taxes plus 10% penalty if less
than age 55
Reach age 70½
and are no longer
working for
Commercial Metals
• Roll over only to a Roth IRA or another employer qualified plan
that has Roth 401(k) accounts – no taxes
• Take a lump sum and pay taxes on earnings if withdrawn
before age 59½ or if your Roth after-tax account has been
open less than 5 years, plus 10% penalty if less than age 55
• Roll over pre-tax accounts to
another employers qualified
plan or to an IRA – no taxes
• Roll over to a Roth IRA and
pay taxes
• Take a cash lump sum and
pay taxes plus 10% penalty
if less than age 55
• Must begin receiving minimum distributions if you leave money in the Plan. Pay related taxes on pre-tax contributions,
employer contributions and earnings.
• Roll over to a Roth IRA for earnings to grow tax-free until your death. If rolled over, pre-tax and employer contributions
(plus related earnings) will be taxed in the year of the rollover.
In certain cases, your Roth after-tax earnings are subject to taxes even if you meet the qualified rules (for example, if you receive a Plan refund due to
the Plan’s failure to meet IRS-required testing, or receive money from your Roth after-tax account as part of a hardship withdrawal). Because these
rules are complex, please consult your tax adviser for more details.
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HOW TO ENROLL AND
ACCESS YOUR ACCOUNT
MILLIMANBENEFITS.COM
• LOGIN ID: Enter your Social Security number. For security reasons, we encourage
you to create a custom Login ID that includes both letters and numbers.
• PASSWORD: The first time you log on to the website, your password will be your
month and year of birth (MMYY). You must change your initial password to a
6- to 15-digit password made up of letters and numbers. Symbols and special
characters are allowed.
MILLIMAN BENEFITS SERVICE CENTER:
1.866.767.1212 AND WEB CHAT
Representatives are available Monday through Friday from 7 a.m. to 7 p.m. Central
time. You can also connect with a service representative through Web Chat on
MillimanBenefits.com during the same Service Center hours.
THINKING AHEAD
PLANAHEAD FOR RETIREMENT®
The powerful PlanAhead For Retirement tool at MillimanBenefits.com will give you
a complete picture of your progress toward your retirement goal. Using more than a
thousand simulations, the online tool will help you figure out what you have saved
for retirement and what you’ll need to reach your goals.
You can use this tool to model different scenarios to discover how increasing your
contributions or changing your investment strategy will impact your results.
Enter your information once; the tool will retain it for you to access at any time.
IMPORTANT!
EVEN THOUGH YOU MAY BE
AUTOMATICALLY ENROLLED, YOUR
ACCOUNT STILL NEEDS ATTENTION.
1.Designate a beneficiary. Whether
you contribute to the Plan or not,
it’s important to designate the
person(s) you want to receive
your account balance in case
something were to happen to
you. That’s because, even if
you don’t contribute, you could
accumulate a balance through
Supplemental Contributions.
So, make sure you have a
beneficiary(ies) on file with
Milliman. Simply log on to
MillimanBenefits.com and click
on “Beneficiaries”. You’ll need the
Social Security number and date of
birth for those you designate.
2.Review your investments. Take the
time to make sure your money is
where you want it to be – whether
that’s in a custom portfolio or in a
Vanguard Target Date Fund.
3.Use the PlanAhead tool to see
how you can get the most out of
your investments.
Mobile access to MillimanBenefits.com
Download the free Milliman app from the Apple Store or Google Play.
You can enroll, access your account or change the amount you’re
saving all from your smartphone or tablet.
This enrollment guide provides a very general explanation of the provisions of
the Commercial Metals Companies Retirement Plan. Complete details of the
Plan are in the official Plan documents. If there is any discrepancy between the
information in this enrollment guide and official Plan documents, the terms of
the plan documents govern. This newsletter is not a guarantee or contract of
continued employment. The terms and conditions of this Plan are subject to
Internal Revenue Service regulations.
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01/2017