VISA RETIREMENT PLAN
CASH BALANCE PLAN COMPONENT
SUMMARY PLAN DESCRIPTION
January 1, 2016
Table of Contents
Introduction
■ Plan Highlights
■ How the Plan Works
- Eligibility Requirements
- When You May Receive a Benefit under the Plan
Eligibility Service
■ Eligibility Service
■ Vesting
■ Breaks in Service and Leaves of Absence
How Your Benefit Is Calculated
■ Cash Balance Account
■ Your Benefit if You Leave Visa’s Employment
■ Your Benefit if You Become Disabled
■ Minimum Cash Balance Account Balance
Payment of Benefits
■ General
■ Time of Payment
■ Normal Form of Payment
■ Straight Life Annuity
■ Joint and Survivor Annuity
■ Lump Sum Payment
■ Choosing a Payment Option
■ Survivor Benefit for Your Beneficiary
■ Loss of Benefits
■ Paying Taxes on Your Benefit Payment
Participation in Both the Plan and the Pre-2002 Plan
■ Eligibility Service
■ Benefit Service
■ How Your Benefits Are Calculated
■ Limitation on Benefits
■ Payment of Benefits
Participation in Both the Plan and the 2002 Plan
■ Eligibility Service
■ Benefit Service
■ How Your Benefits Are Calculated
■ Limitation on Benefits
■ Payment of Benefits
Participation in the Plan, the Pre-2002 Plan and the 2002 Plan
■ Limitation on Benefits
■ Payment of Benefits
Retirement Plan Administration
■ ERISA
- Your Rights and Privileges under ERISA
- Prudent Actions by Retirement Plan Fiduciaries
- Enforcing Your Rights
- Assistance with Your Questions
■ Appealing a Denied Claim for Benefits
■ Assignment of Benefits and Qualified Domestic Relations Orders
■ How to Apply for Your Benefit Payments
■ Pension Benefit Guaranty Corporation (PBGC) Insurance
■ Top-Heavy Status
■ Future of the Retirement Plan and Right to Amend or Terminate the Retirement Plan
■ Employment Rights
■ Retirement Plan Documents
■ Additional Information
Glossary of Key Terms
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DWT 23589881v5 0088286-000001
Introduction
In this section, you will find information on the following topics:
■
■
Plan Highlights
How the Plan Works
- Eligibility Requirements
- When You May Receive a Benefit under the Plan
The Visa Cash Balance Plan (the Plan) is a separate component of the Visa Retirement
Plan (the Retirement Plan) that generally applies to eligible employees of Visa. The
other separate components of the Retirement Plan are referred to in this summary plan
description as the Pre-2002 Plan and the 2002 Plan. Any benefits earned under the
Pre-2002 Plan or the 2002 Plan are described in separate summary plan descriptions.
Effective January 1, 2011, Visa employees are no longer eligible to earn benefits under
the Pre-2002 or 2002 Plans, but may be eligible to participate in and earn benefits
under the Plan. Effective January 1, 2016, the Company Contribution Credits,
described under the “Cash Balance Account” provisions below are no longer made to
eligible participants’ Cash Balance Accounts and Visa employees hired on or after that
date are not eligible to participate in the Plan.
Plan Highlights
Visa pays the entire cost of the Plan so participation costs you nothing - you do not
make any contributions. References to Visa throughout this summary plan description
generally include Visa Inc. as the sponsoring employer of the Plan and any affiliate of
Visa Inc. whose employees are eligible to participate in the Plan. The employers
participating in the Plan are listed in Additional Information under Plan Administration.
Here is a brief look at some of the key features of the Plan in effect as of January 1,
2016.
■ Employees hired prior to January 1, 2016, automatically participate in the Plan.
■ The Plan provides a benefit to you if you are vested, by completing three years of
eligibility service or reaching age 65 while a Visa employee. Your vested benefit is
based on the balance of your Plan account. You may receive your vested benefit as
early as the month after your last day of employment.
■ The benefit payable in the form of a lump sum will be equal to the balance
of your account.
■ You can choose how to receive your benefit from several payment options.
■ The Plan provides survivor benefits ﹘ financial protection for your spouse
or named beneficiary following your death ﹘ if certain conditions are met.
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Each of these features and other important details about the Plan are explained in
the remainder of this summary plan description.
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How the Plan Works
Prior to January 1, 2016, your account was credited each month with 6% of your
“eligible compensation” during that month. Your account was also credited each month
with interest on the preceding month-end account balance at a 30-year Treasury bond
rate. As of January 1, 2016, your account will continue to be credited with interest each
month, but the 6% of your “eligible compensation” credits will no longer be made. You
are not taxed on the credits to your account until your account balance is paid to you
following termination of your employment. You may also elect to roll over your account
balance to an IRA or other qualifying employer plan in order to further defer taxation.
The Plan is provided to eligible employees at no cost. The Plan is funded by
contributions made by Visa to a trust, the assets of which are protected against creditor
claims.
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Eligibility Requirements
If you were hired on or before December 31, 2015, you were eligible to participate in
the Plan and earn benefits under the Plan starting on your first day of active
employment or reemployment at Visa if you were:
■ A regular Visa employee, and
■ Paid from Visa’s U.S. payroll.
You are not eligible to participate in the Plan if you are:
■ Not paid from Visa’s U.S. payroll, even if you should have been
under applicable law.
■
A foreign national participating in another retirement plan (other than the Visa 401k
Plan) to which Visa contributes on your behalf.
■ Classified as an intern or project employee hired for a limited term
for a specific project.
■ Ineligible to participate under the terms of a written agreement with Visa.
■ Hired after December 31, 2015.
If you were hired prior to January 1, 2011, you may have been eligible to participate in
the Pre-2002 Plan and/or the 2002 Plan. Please refer to the summary plan descriptions
for the Pre-2002 and 2002 Plans for more information.
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When You May Receive a Benefit under the Plan
If you terminate employment with Visa before attaining age 65 (your normal retirement
age) and are vested in your benefit, you may elect to receive your benefit as early as
the month after termination of employment, or any month thereafter. Your benefit will be
paid when you reach age 65, unless you elect otherwise.
You will be vested in your benefit after you have completed three years of eligibility
service.
If you reach age 65 while a Visa employee, you may retire from Visa on your 65th
birthday and have your benefit paid the next following month, unless you elect
otherwise.
In addition, you may continue working for Visa beyond age 65. You may stop working
and retire from Visa at any time thereafter and have your benefit paid the next following
month, unless you elect otherwise.
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Eligibility Service
In this section, you will find information on the following topics:
■ Eligibility Service
■ Vesting
■ Breaks in Service and Leaves of Absence
Eligibility Service
Eligibility service is used to establish your eligibility to receive a benefit under the Plan.
It determines whether:
■ You are vested and entitled to receive a benefit even though you leave Visa
before you reach age 65.
■ Your beneficiary is eligible to receive a benefit if you die.
Eligibility service is measured from the first day you are actively employed by Visa
through your last day of employment at Visa ﹘ regardless of your eligibility to participate
in the Plan. If you are or were a CyberSource employee, you are also credited with
eligibility service equal to the CyberSource service that you had earned as of July 21,
2010, for purposes of determining vesting in your Plan benefit (see Vesting). If you
were employed by PlaySpan on February 28, 2011, and employed by Visa on March 1,
2011, you are credited with eligibility service equal to the PlaySpan service that you
had earned as of February 28, 2011, for purposes of determining your vesting in your
Plan benefit. If you were employed by TrialPay on March 31, 2015, and employed by
Visa on April 1, 2015, you are credited with eligibility service equal to the TrialPay
service that you had earned as of March 31, 2015, for purposes of determining your
vesting in your Plan benefit.
If you are a participant in the Plan on or after October 1, 2012, you are credited with
eligibility service for periods of work for Visa while you were a contractor engaged by
another organization (other than Business Process Outsourcing (BPO) vendors) to
temporarily supplement Visa’s existing workforce to ensure business continuity or
address peaks and valleys in work. Such work must have been performed continuously
for at least one full year, but it is not counted as eligibility service if it was performed as
a “consultant” to Visa or was immediately followed by consecutive years in which no
work for Visa was performed equal to the greater of the number of years of such work,
or five years.
If you performed services for Visa on a substantially full-time basis for a period of at
least one year under Visa’s primary direction and control while not a Visa employee,
you may be credited with eligibility service for periods of such work.
Certain rules apply when determining eligibility service if you have a break in service or
are not actively at work (see Breaks in Service and Leaves of Absence). Eligibility
service also includes periods while you are employed by a Visa non-U.S. entity whose
employees are not eligible to participate in the Plan, provided the entity affiliate has
sufficient common ownership with Visa (generally at least 80%). You are also credited
with eligibility service for periods of employment with Visa Europe that end prior to your
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employment with Visa.
Example: John, an employee of Visa USA and a participant in the Plan, transfers to
Visa Singapore. He will continue to receive eligibility service under the Plan while he is
employed with Visa Singapore. When John transfers back to Visa USA, his eligibility
service will continue under the Plan. When he subsequently leaves Visa’s employment,
his eligibility service will stop.
Eligibility service is measured in days, including paid holidays, vacations and weekends.
One year of eligibility service is equal to 365 days of eligibility service and does not have
to be earned in a consecutive 12-month period.
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Vesting
After you have earned three years of eligibility service, you are fully vested in your Plan
benefit, meaning that your benefit is nonforfeitable. You also become fully vested in
your Plan benefit regardless of your years of eligibility service when:
■ You reach age 65 while a Visa employee.
■ The Retirement Plan is completely terminated.
■ The Retirement Plan is partially terminated for a substantial group of employees to
which you belong.
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Breaks in Service and Leaves of Absence
If you are away from work and are not paid by Visa, your time away may be considered
a break in service and therefore may not count toward your years of eligibility service
under the Plan. Here is how breaks in service are determined:
■ If you terminate employment with Visa because you quit, retire or are discharged,
your break in service begins on the first date you are not at work for one of these
reasons. However, if you subsequently return to Visa’s employment within 12
months, your time away will not be considered a break in service.
■ If you are temporarily laid off without pay, your break in service will generally begin
on the first anniversary of your temporary layoff.
■ If you are not at work because you are on an approved unpaid leave of absence,
your time away will not be considered a break in service, provided you return to
work within 30 days after your leave expires. If you do not return within this period,
your break in service begins on the earlier of the date your leave ended or on the
first anniversary of the date your leave began.
■ If you are on a military leave of absence, your time away will not be treated as a
break in service, and you will continue receiving credit for eligibility and benefit
service during your leave. Your benefits and rights are guaranteed by the
Uniformed Services Employment and Reemployment Rights Act of 1994
(USERRA), as long as you satisfy the following requirements:
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■ You give advance notice of the leave to Visa;
■ You receive an honorable discharge; and
■ The entire period of USERRA leave generally does not exceed a cumulative
total of five years.
You must report back to work or apply for reemployment after your military leave in a
timely manner, which is based on your period of military service.
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How Your Benefit Is Calculated
In this section, you will find information on the following topics:
■
■
■
■
Cash Balance Account
Your Benefit if You Leave Visa’s Employment
Your Benefit if You Become Disabled
Minimum Cash Balance Account Balance
Cash Balance Account
The benefit you earn under the Plan is based on the balance of your Cash Balance
Account. Your Cash Balance Account is an account that, prior to January 1, 2016, was
credited as of the last day of each calendar month with a Company Contribution Credit
in an amount equal to 6% of your eligible compensation during the portion of the month
in which you are eligible to participate in the Plan. Effective January 1, 2016, Company
Contribution Credits will not be made to any Cash Balance Account.
Your Cash Balance Account is credited as of the last day of each calendar month with
an Interest Credit. The Interest Credit is based on the balance of your Cash Balance
Account as of the last day of the preceding calendar month and the daily compounding
of interest thereon. The interest rate is derived from the average annual interest rate on
30-year Treasury bonds for November of the preceding calendar year.
Eligible compensation includes:
■ Regular basic earnings
■ Overtime
■ Shift differentials
■ Discretionary awards (such as spot or lump sum merit awards, other than
senior executive long-term incentive awards)
■ Short-term incentive awards
■ Differential wage payments made to employees on qualified military leave
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Eligible compensation for the purposes of the Plan does not include:
■ Employer contributions to any benefits program
■
Earnings in excess of $21,250 per month, as adjusted periodically for future
increases in the cost of living in accordance with applicable law
■
Stock-based compensation
■ Severance pay
■ Disability pay
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Your Benefit if You Leave Visa’s Employment
If you leave Visa’s employment before you have three years of eligibility service, you
will not be entitled to a Plan benefit because your benefit will not be vested (unless you
leave after reaching age 65).
If you leave Visa’s employment after you have three years of eligibility service, your
Plan benefit will be vested and you may elect to receive your benefit on the first day of
any month after termination of employment. If you do not elect otherwise, your benefit
will be paid when you reach age 65.
If you continue to work for Visa after you reach age 65, you may receive your benefit
from the Plan on the first day of the month after you retire.
If you transfer to a Visa entity whose participants do not participate in the Plan, such as
a non-U.S. Visa entity, you may not commence receipt of your benefit until you
terminate your employment with Visa and all other Visa entities. You may elect to
commence receipt of your benefit on the first day of any month after termination of
employment.
Example: Jane, an employee of Visa USA and a participant in the Plan, transfers to
Visa Singapore. She may not commence receipt of her retirement benefit while
employed by Visa Singapore. When Jane transfers back to Visa USA, she
recommences participation in the Plan. When she subsequently leaves Visa’s
employment, she may elect to commence receipt of her benefit.
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Your Benefit if You Become Disabled
If you become disabled under the terms of a Visa disability benefits plan, you continue
to earn eligibility service until your employment is terminated. Your Cash Balance
Account will continue to receive Interest Credits until your account balance is paid to
you following your termination of employment.
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Minimum Cash Balance Account Balance
Your Cash Balance Account will always be credited with no less than $4,000 unless
you:

Became a participant in the Plan on January 1, 2011, due to your transition from the
Pre-2002 or 2002 Plan to the Plan on that date; or

Participated in the Pre-2002 or 2002 Plan, terminated employment and were
rehired by Visa after May 4, 2009
You are also not entitled to a minimum Cash Balance Account balance if you were
rehired by Visa and resumed participating in the Retirement Plan as a participant in the
Plan after December 31, 2007, but before May 5, 2009, and you terminated
employment prior to October 1, 2008.
Example 1: Sarah was hired by Visa on January 1, 2011. Upon termination of
employment, Sarah’s vested Cash Balance Account balance, based on the Plan’s
generally applicable Company Contribution and Interest Credits as described above, is
$2,500. When Sarah later elects to receive her Plan benefit, the $2,500 balance has
been credited with additional Interest Credits of $1,000. However, because of the
Plan’s minimum balance provisions, Sarah’s vested Cash Balance Account balance on
her distribution date is $4,000 (instead of $3,500).
Example 2: John is hired by Visa Canada on January 1, 2008. John transfers
employment to Visa USA on January 1, 2011, and begins participating in the Plan.
John is entitled to a minimum Cash Balance Account balance.
Example 3: Kelly and Robert are participants in the Pre-2002 Plan and the 2002 Plan,
respectively. On January 1, 2011, Kelly and Robert become participants in the Plan
because of the transition from the Pre-2002 and the 2002 Plans to the Plan. Neither
Kelly nor Robert are entitled to a minimum Cash Balance Account balance.
Example 4: Mike was a participant in the 2002 Plan and terminated employment with
Visa. On January 1, 2011, Mike is rehired and becomes a participant in the Plan. Mike
is not entitled to a minimum Cash Balance Account balance.
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Payment of Benefits
In this section, you will find information on the following topics:
■
■
■
■
■
■
■
■
■
■
General
Time of Payment
Normal Form of Payment
Straight Life Annuity
Joint and Survivor Annuity
Lump Sum Payment
Choosing a Payment Option
Survivor Benefit for Your Beneficiary
Loss of Benefits
Paying Taxes on Your Benefit Payment
General
You can generally choose when and how you would like your benefit under the Plan to
be paid from a variety of options. If you are married, you must obtain your spouse's
written consent, witnessed by a notary public, for the Plan to make any form of payment
that does not provide to your spouse, upon your death, a survivor life annuity benefit of
at least 50% of your annuity benefit.
You cannot change your payment election or beneficiary after payment, regardless
of the circumstances.
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Time of Payment
If you leave Visa’s employment before reaching age 65, your benefit generally will not
be paid until you reach age 65 unless you elect an earlier payment date or your
account balance when you leave Visa’s employment is $1,000 or less. If you leave
Visa’s employment after reaching age 65, your benefit generally will be paid the
following month.
Regardless of your age when you leave Visa’s employment, you may elect to defer the
date your benefit is paid (but not later than April 1 of the year following the year you
reach age 70 ½), provided that your account balance is more than $1,000.
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Normal Form of Payment
If you are single, the normal form of payment is a straight life annuity (see Straight Life
Annuity). If you are married, a 50% joint and survivor annuity is the normal form of
payment, and your spouse is automatically your beneficiary (see Joint and Survivor
Annuity). Your straight life annuity or 50% joint and survivor annuity will be actuarially
equivalent to the balance of your account.
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Straight Life Annuity
Under a straight life annuity, your benefit is paid to you monthly for your lifetime, and
survivor benefits will not be paid after you die. If you are married and want to elect a
single life annuity, you must provide your spouse's written consent, witnessed by a
notary public.
The straight life annuity will be actuarially equivalent to the balance of your account.
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Joint and Survivor Annuity
If you are married, the normal form of payment is a 50% joint and survivor annuity. This
form provides an actuarially reduced monthly payment to you for your lifetime based on
the joint life expectancies of you and your spouse. When you die, your surviving
spouse receives a lifetime monthly benefit equal to 50% of the monthly benefit you
were receiving. After your spouse’s death, no further payments are made.
Regardless of whether you are single or married, you can elect a 50%, 75% or 100%
joint and survivor annuity. The amount of your joint and survivor annuity benefit will be
actuarially reduced based on the percentage to be continued and the joint life
expectancies of you and your beneficiary.
If you are married and you elect an option where your spouse is not the beneficiary,
you must provide your spouse’s written consent, witnessed by a notary public.
The joint and survivor annuity will be actuarially equivalent to the balance of your
account.
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Lump Sum Payment
If your account balance is greater than $1,000, you have the option of taking a single
lump sum payment of your account balance instead of monthly annuity payments (to
you and your surviving spouse or other beneficiary) at any time after you leave Visa
and before your monthly annuity payments begin. If you are married, you will need your
spouse's written consent, witnessed by a notary public, to elect a lump sum payment.
If your account balance is $1,000 or less when you terminate employment, you
will receive a single lump sum payment of your account balance soon after you leave
Visa, and you and your surviving spouse or other beneficiary will not receive any
payments in the future.
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Choosing a Payment Option
The option you elect becomes effective on the payment date. Once payments start, you
may not change your payment option or beneficiary thereafter. The payment option you
select should take into account whether or not you are married, at what age you retire
or receive benefit payment, if you receive income from other sources and a host of
other factors.
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The decision on when and how to receive your benefit is an important one. Visa will
send you more information about your payment options when you notify Visa that you
want your benefit payment.
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Survivor Benefit for Your Beneficiary
If you die before your benefit is paid and after completing at least three years of
eligibility service or after attaining age 65 or older while a Visa employee, the Plan
will pay a death benefit to your beneficiary.
Your beneficiary’s benefit will be equal to the balance of your account.
If you are married when you die, your surviving spouse is automatically your
beneficiary. A surviving spouse may elect to receive his or her entire benefit in the form
of a single lump sum payment or a monthly lifetime annuity. Your spouse may elect to
defer payment of his or her death benefit until the date you would have attained age 65.
However, if your account balance is $1,000 or less when you die, your spouse will
automatically receive a lump sum payment of such benefit as soon as reasonably
possible after your death in lieu of monthly benefits.
If you are not married when you die, your beneficiary will be the person named by you
on your beneficiary designation form and submitted to the Plan Administrator. If your
designated beneficiary does not survive you, or you have not designated a beneficiary,
your beneficiary will be your surviving children in equal parts, or if you do not have any
such children, your estate.
A non-spouse beneficiary under the Plan will receive your account balance in the form
of a single lump sum within five years from the date of your death. However, if your
account balance is $1,000 or less when you die, he or she will automatically receive the
balance as soon as practicable after your death.
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Loss of Benefits
Certain circumstances may result in a loss of benefits under the Plan, such as, but not
limited to, those described below.
■ You leave Visa before age 65 and before completing three years of eligibility
service.
■ Part of your benefit is in excess of the limits imposed by law and incorporated into
the Plan. These limits are relatively high and generally apply only to the highestpaid employees. Visa will notify you if part of your benefit is not payable under the
Plan due to these limits.
■ If the Retirement Plan becomes significantly underfunded, the Internal Revenue Code
may impose certain benefit restrictions on it. For example, lump sum payments may
be suspended and future benefit accruals may be prohibited. You will be notified in the
event that this occurs.
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■ The Retirement Plan is terminated without enough assets to fund earned benefits.
You are entitled to your unfunded earned benefit only to the extent that the Pension
Benefit Guaranty Corporation (PBGC) guarantees these benefits. Even if some of
your benefit is not guaranteed, you still may receive some of that benefit from the
PBGC depending on how much money the Retirement Plan has and how much the
PBGC collects from Visa. If the Retirement Plan is terminated with assets in excess
of earned benefits, the excess amounts revert to Visa.
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Paying Taxes on Your Benefit Payment
A benefit payment you receive from the Plan is considered taxable income. If you elect
to receive a single lump sum payment, federal income taxes must be withheld from
your payment before it is paid to you. State income taxes will also be withheld, if
elected or required.
If you receive a single lump sum payment of your Plan benefit, you may be able to roll
over the payment into another employer’s retirement plan or an individual retirement
account (IRA) and postpone payment of income taxes to a later date. If you elect a
direct rollover from the Plan to another plan or IRA, your payment is generally not
subject to mandatory federal income tax withholding.
If you elect to receive lifetime annuity payments, you have a choice of having taxes
withheld from your payments or paying them yourself. You will receive a federal income
tax withholding form for you to indicate whether you want taxes withheld from your
payments. You will also receive a state income tax withholding form, if applicable. Your
withholding election(s) will remain in effect until you make a new election.
For more detailed information about federal income taxes and possible penalty taxes
on benefit payments, refer to the separate Your Rollover Options Notice. Because tax
laws are complex and change frequently, you should consult your tax advisor with any
questions about your benefit and how tax laws may affect it.
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Participation in Both the Plan and the Pre-2002 Plan
In this section, you will find information on the following topics:
■
■
■
■
■
Eligibility Service
Benefit Service
How Your Benefits Are Calculated
Limitation on Benefits
Payment of Benefits
You may be eligible for benefits under the general provisions of the Plan that are
described in this summary plan description as well as the Pre-2002 Plan if you
participated in the Visa Retirement Plan before October 1, 2002.
Retirement benefits that you earned prior to your participation in the Plan will be based
on the provisions of the Pre-2002 Plan. However, your participation in the Plan may
affect vesting and eligibility for early retirement benefits under the general provisions of
the Pre-2002 Plan.
Eligibility Service
Eligibility service you earn under the Plan is counted as eligibility service under the
Pre-2002 Plan. Likewise, eligibility service you earn under the Pre-2002 Plan is
counted as eligibility service under the Plan, subject to the Retirement Plan’s break in
service and leave of absence rules.
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Benefit Service
You were credited with Benefit Service under the Pre-2002 Plan only while you were
eligible to participate in the Pre-2002 Plan. Effective January 1, 2011, no employees
are eligible to participate in the Pre-2002 Plan.
The Plan does not use Benefit Service.
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How Your Benefits Are Calculated
For vested employees who participate in both the Plan and the Pre-2002 Plan, you will
receive two separate benefits: the first under the Pre-2002 Plan and the second under
the Plan.
For a description of how your monthly benefit under the Pre-2002 Plan is calculated,
please refer to the summary plan description for that plan.
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Limitation on Benefits
Your combined benefits under the Plan and the Pre-2002 Plan are subject to certain
limits set forth in the Internal Revenue Code. These limits are relatively high and
generally apply only to the highest-paid employees. Visa will notify you if your
combined benefits are in excess of the limits.
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Payment of Benefits
When you apply for retirement benefits, you can choose how you would like to receive
your Plan and your Pre-2002 Plan payments from a variety of options. This summary
plan description and the summary plan description for the Pre-2002 Plan describe
these options under Payment of Benefits.
If you are eligible for benefits from the Plan and the Pre-2002 Plan, the benefits must
be paid at the same time and in the same payment forms (unless you elect to receive a
25% joint and survivor annuity under the Pre-2002 Plan). However, if you received or
started receiving your benefit from the Pre-2002 Plan prior to becoming a participant in
the Plan and you are not entitled to an additional payment election under the Pre-2002
Plan, you may receive your benefit under the Plan at any time and in any payment form
permitted under the Plan.
Likewise, if your beneficiary is eligible for pre-retirement death benefits from the Plan
and the Pre-2002 Plan upon your death, the death benefits must be paid at the same
time and in the same payment forms. However, if you received or started receiving your
benefit from the Pre-2002 Plan prior to becoming a participant in the Plan and you are
not entitled to an additional payment election under the Pre-2002 Plan, your beneficiary
may receive the death benefit under the Plan at any time and in any payment form
permitted under the Plan.
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17
Participation in Both the Plan and the 2002 Plan
In this section, you will find information on the following topics:
■
■
■
■
■
Eligibility Service
Benefit Service
How Your Benefits Are Calculated
Limitation on Benefits
Payment of Benefits
You may be eligible for benefits under the general provisions of the Plan that are
described in this summary plan description as well as the 2002 Plan if you commenced
participation in the Visa Retirement Plan on or after October 1, 2002.
Retirement benefits that you earn after October 1, 2002, and prior to December 31,
2010, will be based on the provisions of the 2002 Plan. However, your participation in
the Plan may affect your vesting and eligibility for early retirement benefits under the
general provisions of the 2002 Plan. Consequently, you may wish to refer to the
summary plan description for the 2002 Plan.
Eligibility Service
Eligibility service you earn under the Plan is counted as eligibility service under the
2002 Plan. Likewise, eligibility service you earn under the 2002 Plan is counted as
eligibility service under the Plan, subject to the Retirement Plan’s break in service and
leave of absence rules.
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Benefit Service
You were credited with Benefit Service under the 2002 Plan that you earn only while
you were eligible to participate in the 2002 Plan. Effective January 1, 2011, no
employees are eligible to participate in the 2002 Plan.
The Plan does not use Benefit Service.
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How Your Benefits Are Calculated
For vested employees who participate in both the Plan and the 2002 Plan, you will
receive two separate benefits; the first under the 2002 Plan and the second under the
Plan.
For a description of how your monthly benefit under the 2002 Plan is calculated, please
refer to the summary plan description for that plan.
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Limitation on Benefits
Your combined benefits under the Plan and the 2002 Plan are subject to certain limits
set forth in the Internal Revenue Code. These limits are relatively high and generally
apply only to the highest-paid employees. You will be notified if your combined benefits
are in excess of the limits.
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Payment of Benefits
When you apply for retirement benefits, you can choose how you would like to receive
your Plan and your 2002 Plan benefits from a variety of payment options. This
summary plan description and the summary plan description for the 2002 Plan describe
these options under Payment of Benefits.
If you are eligible for benefits from the Plan and the 2002 Plan, the benefits must be
paid at the same time and in the same payment form. However, if you received or
started receiving your benefit from the 2002 Plan prior to becoming a participant in the
Plan and you are not entitled to an additional payment election under the 2002 Plan,
you may receive your benefit under the Plan at any time and in any payment form
permitted under the Plan.
Likewise, if your beneficiary is eligible for pre-retirement death benefits from the Plan
and the 2002 Plan upon your death, the death benefits must be paid at the same time
and in the same payment form. However, if you received or started receiving your
benefit from the 2002 Plan prior to becoming a participant in the Plan and you are not
entitled to an additional payment election under the 2002 Plan, your beneficiary may
receive the death benefit under the Plan at any time and in any payment form permitted
under the Plan.
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Participation in the Plan, the Pre-2002 Plan and the
2002 Plan
In this section, you will find information on the following topics:
■ Limitation on Benefits
■ Payment of Benefits
You may be eligible for benefits under the general provisions of the Plan that are
described in this summary plan description as well as the Pre-2002 Plan (if you
participated in the Pre-2002 Plan before October 1, 2002) and the 2002 Plan (if you
commenced or recommenced participation in the 2002 Plan on or after October 1,
2002). Retirement benefits that you earn while participating in the Plan and the Pre2002 Plan are described above under Participation in the Plan and the Pre-2002 Plan.
Retirement benefits that you earn while participating in the Plan and the 2002 Plan are
described above under Participation in the Plan and the 2002 Plan. Retirement benefits
that you earn while participating in the Plan are in addition to those earned under the
2002 Plan and the Pre-2002 Plan.
Limitation on Benefits
Your combined benefits under the Plan, the Pre-2002 Plan and the 2002 Plan are
subject to certain limits set forth in the Internal Revenue Code. These limits are
relatively high and generally apply only to the highest-paid employees. You will be
notified if your combined benefits are in excess of the limits.
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Payment of Benefits
When you apply for retirement benefits, you can choose how you would like to receive
your Plan, your Pre-2002 Plan and your 2002 Plan payments from a variety options.
This summary plan description and the summary plan descriptions for the Pre-2002
Plan and the 2002 Plan describe these options under Payment of Benefits.
If you are eligible for benefits from the Plan, the Pre-2002 Plan and the 2002 Plan, the
benefits must be paid at the same time and in the same payment form (unless you elect
to receive a 25% joint and survivor annuity under the Pre-2002 Plan). Likewise, if your
beneficiary is eligible for pre-retirement death benefits from the Plan, the Pre-2002 Plan
and the 2002 Plan upon your death, the death benefits must be paid at the same time
and in the same payment form.
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20
Retirement Plan Administration
In this section, you will find information on the following topics:
■ ERISA
— Your Rights and Privileges under ERISA
— Prudent Actions by Retirement Plan Fiduciaries
— Enforcing Your Rights
— Assistance with Your Questions
■ Appealing a Denied Claim for Benefits
■ Assignment of Benefits and Qualified Domestic Relations Orders
■ How to Apply for Your Benefit Payments
■ Pension Benefit Guaranty Corporation (PBGC) Insurance
■ Top-Heavy Status
■ Future of the Retirement Plan and Right to Amend or Terminate the Retirement
Plan
■ Employment Rights
■ Retirement Plan Documents
■ Additional Information
ERISA
Your Rights and Privileges under ERISA
As a participant in the Retirement Plan, you are entitled to certain rights and
protections under the Employee Retirement Income Security Act (ERISA), as
amended. ERISA provides that all Retirement Plan participants are entitled to receive
information about their plan and benefits. You are entitled to:
■ Examine, without charge, at the Plan Administrator's office and at other specified
locations, all documents governing the Retirement Plan, including insurance
contracts and a copy of the latest annual report (Form 5500) filed by the Retirement
Plan with the U.S. Department of Labor and available at the Public Disclosure
Room of the Employee Benefits Security Administration.
■ Obtain, upon written request to the Plan Administrator, copies of all documents
governing the operation of the Retirement Plan, including copies of the latest
annual report (Form 5500) and an updated summary plan description. The Plan
Administrator may make a reasonable charge for the copies.
■ Receive a summary of the Retirement Plan's annual financial report. The Plan
Administrator is required by law to furnish each participant with a copy of this
summary annual report.
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■ Obtain a statement telling you whether you have a right to receive a pension at
normal retirement age (age 65) and if so, what your benefits would be at normal
retirement age if you stop working under the Retirement Plan now. If you do not
have a right to a pension, the statement will tell you how many more years you
have to work to obtain the right to a pension. This statement must be requested in
writing and is not required to be given more than once every twelve (12) months.
The Retirement Plan must provide the statement free of charge.
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Prudent Actions by Retirement Plan Fiduciaries
In addition to creating rights for Retirement Plan participants, ERISA imposes duties on
the people who are responsible for the operation of an employee benefit plan. The
people who operate the Retirement Plan, called Retirement Plan fiduciaries, have a
duty to do so prudently and in the interest of you and the other Retirement 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.
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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 relating 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.
■ If you request a copy of Retirement Plan documents or the latest annual report from
the Retirement Plan and do not 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 were not sent because of reasons beyond the control of the
Plan 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.
■ If you disagree with the Retirement 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 a Federal court.
■ If it should happen that Retirement Plan fiduciaries misuse the Retirement Plan's
money, or if you are 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 are
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.
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Assistance with Your Questions
If you have any questions about the Retirement 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 the
Division of Technical Assistance and Inquiries, Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington,
D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee
Benefits Security Administration.
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Appealing a Denied Claim for Benefits
If your claim for a benefit is denied, in whole or in part, you will receive a written
explanation of the reason for the denial from the Plan Administrator. This written notice
will include:
■ Specific reason(s) for the denial
■ Reference to specific Retirement Plan provisions on which the denial is based
■ A description of any additional materials or information needed to support your
claim, and the reasons why such materials or information is necessary
■ A description of the Retirement Plan’s review procedures and the time limits
applicable to such procedures.
You will receive this explanation within 90 days after receipt of the claim (up to 180
days if special circumstances apply, unless you and the Plan Administrator agree to a
longer period of time). If the Plan Administrator determines that it requires an extension
of time due to special circumstances, you will be notified in writing of the extension
within the initial 90-day time period. Any extension notice will describe the
circumstances requiring the extension and the expected date by which a decision will
be made.
You have a right to have the Plan Administrator review and reconsider your claim. To
initiate this process, you must submit a written appeal to the Plan Administrator within
60 days from the date you receive the original denial. Include in your appeal any facts
that would be helpful to the Plan Administrator in deciding your case. You or your
authorized representative may review and receive free of charge all documents related
to any denial of benefits.
The Plan Administrator will review your appeal and notify you in writing of the decision
within 60 days (up to 120 days if special circumstances apply, unless you and the Plan
Administrator agree to a longer period of time). The notice will specify the reasons for
the decision and will discuss your rights to bring a court action under ERISA seeking
benefits. If you do not receive a decision within this time period, your claim appeal is
considered to have been denied. The decision of the Plan Administrator based on your
appeal is final.
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Assignment of Benefits and Qualified Domestic Relations Orders
Generally, your vested Retirement Plan benefit cannot be assigned, sold, transferred or
pledged (e.g., as collateral for a loan) by you. Additionally, your creditors cannot claim
your benefits to satisfy debts.
However, a court may issue a Qualified Domestic Relations Order (QDRO) instructing
the Retirement Plan to pay all or part of the value of your benefit to an alternate payee,
such as your spouse, former spouse, child, or dependent. The court may order
payments to be made to an alternate payee while you are still working, but in no event
before you have completed three years of eligibility service. You should be aware that a
QDRO could exhaust your entire interest in the Retirement Plan. In addition, you may
have taxable income if payment is made to someone other than your spouse or former
spouse. In order to be considered qualified, the order must meet certain requirements.
If the Plan Administrator or its delegate determines that an order to claim your
Retirement Plan benefit is qualified, then the order must be obeyed. The Plan
Administrator will inform you as soon as practicable upon the receipt of a court order
affecting your Retirement Plan benefit. A copy of the Retirement Plan procedures
related to domestic relations court orders can be obtained, without charge, from the
Plan Administrator.
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How to Apply for Your Benefit Payment
When you decide to receive your benefit payment, you should contact the Plan
Administrator (see Additional Information below for contact information) and request a
Retirement Plan disclosure packet no less than 30 days and no more than 90 days
before you want payment of your benefit. This allows time for you to receive and
complete the necessary forms, and gives Visa adequate time to process your
paperwork. To complete the process, you will be asked to provide certain relevant
information and documents.
Please keep in mind that it is your responsibility to request payment of your benefit.
In any situation in which you (or your beneficiary, in the event of your death) believe
that you (or your beneficiary) are eligible for a benefit and payment information is
needed, you (or your beneficiary) should contact the Plan Administrator.
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Pension Benefit Guaranty Corporation (PBGC) Insurance
The Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency,
insures your pension benefits under the Retirement Plan. If the Retirement Plan
terminates (ends) without enough money to pay all benefits, the PBGC will step in
to pay pension benefits. The PBGC guarantees vested benefits at the level in
effect on the date the Retirement Plan terminates. Most people receive all of the
pension benefits they would have received under the Retirement Plan, but some
people may lose certain benefits. The PBGC guarantee generally covers: (1)
normal and early retirement benefits; (2) disability benefits if you become disabled
before the Retirement Plan terminates; and (3) certain benefits for your survivors.
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The PBGC guarantee generally does not cover: (1) benefits greater than the
maximum guaranteed amount set by law for the year in which the Retirement Plan
terminates; (2) some or all of the benefit increases and new benefits based on
Retirement Plan provisions that have been in place for fewer than five years at the
time the Retirement Plan terminates; (3) benefits that are not vested because you
have not worked long enough for Visa; and (4) benefits for which you have not met
all of the requirements at the time the Retirement Plan terminates. Even if certain
of your benefits are not guaranteed, you still may receive some of those benefits
from the PBGC depending on how much money the Retirement Plan has and how
much the PBGC collects from employers. For more information about the PBGC
and the benefits it guarantees, contact the PBGC’s Technical Assistance Division,
1200 K Street N.W., Suite 930, Washington, D.C. 20005-4026 or call 202-3264000 (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 also is available
through the PBGC’s Web site on the Internet at http://www.pbgc.gov.
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Top-Heavy Status
Federal regulations require that the Retirement Plan be tested periodically to check
whether certain key employees of Visa are accruing more than 60% of Retirement Plan
benefits. If this occurs, the Retirement Plan will be considered top-heavy. Currently, the
Retirement Plan is not top-heavy, and Visa does not expect the Retirement Plan to
become top-heavy in the future. However, if it ever does become top-heavy, certain
non-key employees (as defined by federal tax laws) may be entitled to additional
Retirement Plan benefits, and vesting could be accelerated. The Plan Administrator will
advise you of your rights under the top-heavy rules if the Retirement Plan should
become top-heavy.
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Future of the Retirement Plan and Right to Amend or Terminate the Retirement
Plan
Although Visa intends to continue the Retirement Plan indefinitely, Visa has the right to
amend or terminate the Retirement Plan at any time in whole or in part at its sole
discretion. When Retirement Plan amendments are made that materially affect benefits,
a summary of the changes will be communicated to affected Retirement Plan
participants. If the Retirement Plan is terminated or partially terminated, the unvested
Retirement Plan benefits of participants affected by the termination will immediately
become vested.
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Employment Rights
Participation in the Retirement Plan does not assure you of continued employment with
Visa or grant you any rights to benefits except as specified in the Retirement Plan.
Moreover, this summary does not constitute an implied or expressed contract or
guarantee of employment.
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Retirement Plan Documents
This guide is a summary of the main features of the Cash Balance Plan component of
the Retirement Plan. It is not the official Retirement Plan document. The official
Retirement Plan text governs the operation of the Retirement Plan and payment of all
benefits, and is subject to amendment. In the event of any ambiguity in or omission
from this guide, or any conflict between this guide and the official Retirement Plan text,
the official Retirement Plan text governs.
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Additional Information
The following information may be helpful if you need additional details about the
Retirement Plan’s administration.
Retirement Plan Name
Retirement Plan Number
Funding Medium
Contribution Sources
Type of Plan
Sponsoring Employer
Participating Employers
Visa Retirement Plan
334
The Retirement Plan is funded by employer
contributions to a trust.
Employers
Defined benefit pension plan
Visa Inc.
EIN: 26-0267673
P.O. Box 8999
San Francisco, CA 94128-8999
(650) 432-3200
Visa USA Inc.
EIN: 94-1721694
P.O. Box 8999
San Francisco, CA 94128-8999
(650) 432-3200
Inovant
EIN: 74-3070018
P.O. Box 8999
San Francisco, CA 94128-8999
(650) 432-3200
CyberSource Corporation
EIN: 77-0472961
P.O. Box 8999
San Francisco, CA 94128-8999
(650) 432-3200
Retirement Plan Administrator
Visa Pension Benefits Committee
P.O. Box 8999
San Francisco, CA 94128
(650) 432-3200
Type of Administration
Trust
Retirement Plan Trustee
Wells Fargo Institutional Retirement and Trust
333 Market Street, 29th Floor
San Francisco, CA 94105
Agents for Service of Legal Process
Plan Administrator and Retirement Plan Trustee
Plan Year
October 1 through September 30
If you have any questions regarding your Retirement Plan benefit or this document, please
email [email protected] or call (844) 287-2754.
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Glossary of Key Terms
■
■
■
■
■
■
■
Break in service
Cash Balance Account
Company Contribution Credit
Eligibility service
Interest Credit
Leave of absence
Life annuity
■
■
■
■
■
■
■
Lump sum payment
Normal retirement age
Plan Year
Qualified Domestic Relations Order (QDRO)
Rollover
Summary Plan Description (SPD)
Vesting/Vested
Break in service
Your time away from work that is not counted toward your eligibility service. You can
lose credit for eligibility service if you have a break in service.
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Cash Balance Account
The account established for an eligible participant to which Company Contribution
Credits and Interest Credits are credited.
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Company Contribution Credit
Prior to January 1, 2016, an eligible participant’s Cash Balance Account was credited
with a Company Contribution Credit as of the end of each calendar month equal to 6%
of the eligible compensation earned in that month.
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Eligibility service
Used to establish your eligibility to receive a retirement benefit under the Plan. Eligibility
service is measured in days, including paid holidays, vacations and weekends and
does not have to be earned in a consecutive 12-month period.
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Interest Credit
An eligible participant’s Cash Balance Account is credited with an Interest Credit as of
the end of each calendar month. The Interest Credit is based on the daily compounding
of interest on the balance of the Cash Balance Account as of the last day of the
preceding calendar month. The interest rate is derived from the average annual interest
rate on 30-year Treasury bonds for November of the preceding calendar year.
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Leave of absence
An employer-approved or military service absence that may keep you from incurring a
break in service.
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Life annuity
A series of monthly payments paid during your lifetime and, depending on your form of
annuity payment, the life of your spouse or other designated beneficiary.
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Lump sum payment
A single, one-time payment of your entire benefit under the Plan.
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Normal retirement age
Age 65.
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Plan Year
October 1 through September 30.
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Qualified Domestic Relations Order (QDRO)
An order issued by a court (and determined to be qualified by the Plan Administrator)
requiring benefit payments to a spouse, former spouse, child or other dependent.
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Rollover
The transfer of a lump sum payment to another qualified plan or an individual
retirement account (IRA) in order to postpone to a later date payment of federal, state
and/or local income taxes.
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Summary Plan Description (SPD)
A written summary required by ERISA that describes an employee benefit plan.
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Vesting/Vested
Your right to receive a Plan benefit.
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