1. REFUNDS

2. ARE REFUNDS REQUIRED? Is employee relocating to another activity? Is there a possibility of future NAF employment?  May be easier to leave contributions in the Plan  Saves buying back the service upon re-hire

3. REFUND ENTITLEMENTS If less than 3 years of Contributory Participation  Employee contributions only 3+ years of Contributory Participation  Employee contributions + interest Employer contributions are never refunded

4. VESTED EMPLOYEES 5+ Years of Contributory Participation Vested in Plan Annuity is funded by Employee & Employer contributions

5. VESTED EMPLOYEES In lieu of refund: Eligible for a Deferred Annuity at age 52  Reduced benefit Eligible for a Deferred Annuity at age 62  Unreduced benefit Annuity is funded by Employee & Employer Contributions

6. DO YOU KNOW….. Why we do not recommend refunds for vested employee? Employee and spouse are forfeiting their rights to a future annuity benefit Total of employee contributions are usually paid in annuity payments within 1-2 years Balance of lifetime annuity is all EMPLOYER contributions

7. DEFERRED ANNUITY ESTIMATES Your fiduciary responsibility: Provide written estimates to all terminating vested employees Provide estimates for commencement at ages 52 and 62 Disclose amount of total employee contributions + interest

8. DEFERRED ANNUITY ESTIMATES If vested employee still elects refund: Provide employee with Benefit Application Addendum specifying amount of benefit to be forfeited  Must be signed and witnessed  Must accompany refund application

9. APPLICATION FOR REFUND or DEFERRED ANNUITY Complete MCCS 89 (Rev. 3/2008) Refer to sample forms  Cash Withdrawal  Deferred Annuity Update PeopleSoft  Mailing address, cell phone # and personal email address

10. TIMING ISSUES Allow 60-90 days for processing of refunds  Begins on first of month following date of receipt of application at MRG  Vacation Payout issues, etc.

11. TIMING ISSUES Refund checks are processed once a month Checks generally mailed during the third week of month

12. DELAYED REFUNDS Causes: Incomplete paperwork Annual Leave hasn’t been paid or transferred Estimates needed for vested employees Timing of final paychecks

13. DELAYED REFUNDS Causes: Active Flex employees! Employee’s response to estimate letter / addendum Expired mailing address on application Check returned by post office  No forwarding address on file

14. YOU CAN HELP BY: Keeping MRG informed of new mailing address if changed after application was submitted Reminding employee that they will not receive the Employer contributions listed on their LES  A frequent misunderstanding!

15. CONTACT QUESTIONS? Contact: Karen Oehlschlager Voice: (703) 432-0423 Fax: (703) 432-0436 oehlschlagerka@usmc-mccs.org