Aflac Incorporated Pension Plan Summary Plan Description · Aflac Incorporated Pension Plan Page 2...

Aflac Incorporated Pension Plan

Summary Plan Description

January 2017

Aflac Incorporated Pension Plan Page i

TABLE OF CONTENTS Page

HOW TO USE THIS SUMMARY PLAN DESCRIPTION...................................... 1

PLAN OVERVIEW ......................................................................................... 2 What Is The Aflac Incorporated Pension Plan? ................................................ 2 Who Is Eligible To Participate? ..................................................................... 2 When Did I Begin To Participate In The Plan? ................................................. 2 How Much Can I Contribute To The Plan? ...................................................... 2 Will I Ever Forfeit My Benefit? ...................................................................... 2 What If I Have Questions About My Plan Account? .......................................... 2

PLAN ELIGIBILITY AND PARTICIPATION .................................................... 2 Can I Participate In The Plan? ...................................................................... 2 When Did I Become A Participant In The Plan? ............................................... 2 Who Is A Covered Employee? ...................................................................... 3 What Is A Year Of Eligibility Service? ............................................................ 3 What Happens If I Terminate Employment And Am Later Rehired? .................... 3 What Happens If I Transfer Between Covered and Non-Covered Groups of Employees? .............................................................................................. 3

PLAN BENEFITS ........................................................................................... 4 What Is My Benefit Under The Plan? ............................................................. 4 What Is A Year Of Credited Service? ............................................................. 4 What Is My Average Monthly Compensation? ................................................. 5 What Is Considered Eligible Compensation? ................................................... 6

PLAN FUNDING ........................................................................................... 6 How Is The Plan Funded? ............................................................................ 6

VESTING UNDER THE PLAN ......................................................................... 7 What Is Vesting? ....................................................................................... 7 How Is Vesting Determined Under The Plan? ................................................. 7 What Happens If I Leave The Company Before I Become Vested? ..................... 8

DISTRIBUTIONS FROM THE PLAN ............................................................... 8 When May I Receive A Distribution Of My Benefit? .......................................... 8 Can I Leave My Benefit In The Plan? ............................................................. 8 What If I Am Reemployed? ......................................................................... 9 What If I Retire Late? ................................................................................. 9 What If I Retire Early? .............................................................................. 10 What If I Leave Before Reaching Early or Normal Retirement Age? ................. 10 How Will My Distribution Be Paid? .............................................................. 11 How Will My Distribution Be Paid Upon Disability? ......................................... 11 Do I Need Spousal Consent To Select An Optional Form Of Distribution? .......... 12 How Do I Designate A Beneficiary? ............................................................. 12 What Happens If I Die Before I Receive My Benefit? ..................................... 12 What Happens If I Die After I Begin Receiving My Benefits? ........................... 13

Aflac Incorporated Pension Plan Page ii

Are There Any Restrictions On My Distribution Rights Based On Plan Funding Levels? ....................................................................................... 13

BENEFIT TAX CONSIDERATIONS ............................................................... 14 How Are My Distributions Taxed? ............................................................... 14 How Does Rolling Over My Distribution Affect My Taxes? ............................... 14 What Are The Types Of Rollovers? .............................................................. 14 What Taxes Will Be Withheld From My Distribution? ...................................... 14 Should I Consider Using A Financial Professional? ......................................... 14

ADMINISTRATION ..................................................................................... 14 Who Administers And Interprets The Plan? .................................................. 14 How Can I Pursue A Question About Eligibility Or Benefits? ............................ 15 May The Company Terminate Or Amend The Plan? ....................................... 16

PBGC INSURANCE ..................................................................................... 16 What Is PBGC Insurance? ......................................................................... 16

MISCELLANEOUS PLAN INFORMATION ..................................................... 17 What Is The Name Of The Plan? ................................................................. 17 Who Is The Plan Sponsor? ......................................................................... 17 What Companies Participate In The Plan? .................................................... 17 How Is The Plan Identified By The IRS And The Department Of Labor? ............ 17 What Type Of Plan Is The Plan? ................................................................. 17 How Is The Plan Administered? .................................................................. 17 How Can I Contact The Administrative Committee? ...................................... 17 Who Is The Plan’s Agent For Service Of Legal Process? .................................. 18 Who Is The Trustee Of The Plan? ............................................................... 18 What Is The Plan’s Fiscal Year? .................................................................. 18 Who Is The Plan’s Recordkeeper? ............................................................... 18 How Can I Contact The Benefits Department? .............................................. 18 What Happens When I Return From Military Leave? ...................................... 18 Can I Assign My Benefit? .......................................................................... 18 What Legal Rights Do I Have Regarding My Plan Benefits? ............................. 19

Aflac Incorporated Pension Plan Page 1

HOW TO USE THIS SUMMARY PLAN DESCRIPTION

Aflac Incorporated maintains the Aflac Incorporated Pension Plan (the “Plan”) for the benefit of eligible employees of Aflac Incorporated and certain affiliated companies (the “Company”). This Plan summary is intended to serve as the summary plan description for the Plan. This Plan summary explains the Plan in informal language. It includes the following features to help you gain a greater understanding of the benefits offered under the Plan:

The Table of Contents is arranged so it is easier to find answers to specific questions.

The Plan Overview provides the basic information about

the Plan. If you have questions about the Plan, please contact Milliman by logging on or calling:

www.millimanbenefits.com

1-866-767-1212. The official and controlling provisions of the Plan are contained in the Plan document. In case of differences between this Plan summary and the Plan document, the official Plan document always prevails. Copies of the Plan and trust are on file with the Administrative Committee (the committee appointed by Aflac Incorporated to administer the Plan), and may be inspected, upon request, during normal business hours of any regular working day.


PLAN OVERVIEW

What Is The Aflac Incorporated Pension Plan?

The Plan is a “defined benefit” retirement plan. This means that the amount of your retirement benefit is determined by a specified formula under the Plan.

Who Is Eligible To Participate?

Participation in the Plan was frozen as of September 30, 2013. This means that if you were first hired after September 30, 2013, or if you change to a covered position after September 30, 2013, you will not be eligible to participate in the Plan.

Before participation in the Plan was frozen, you generally were eligible to participate in the Plan if you were an employee of the Company who was in a non-excluded classification (a “Covered Employee”).

When Did I Begin To Participate In The Plan?

As a Covered Employee, you became eligible to participate in the Plan beginning on the January 1 or July 1 after completing 1 year of service with the Company and reaching age 21.

How Much Can I Contribute To The Plan?

You cannot make contributions to the Plan. Your benefit will be paid from contributions made by the Company to the Plan.

Will I Ever Forfeit My Benefit?

If you leave the Company before completing 5 years of service for any reason other than Disability, you will forfeit your entire benefit.

What If I Have Questions About My Plan Account?

You may access information about your benefit at any time through the telephone hotline at 1-866-767-1212 or through the internet at www.millimanbenefits.com.

PLAN ELIGIBILITY AND PARTICIPATION

Can I Participate In The Plan?

Participation in the Plan was frozen as of September 30, 2013. This means:

If your original hire date is after September 30, 2013, you are not eligible to participate in the Plan; and

If you were not a Covered Employee on September 30, 2013, you are not eligible to accrue benefits under the Plan after that date, even if you were previously a Covered Employee or you become a Covered Employee in the future.

When Did I Become A Participant In The Plan?

If you were not excluded due to the participation freeze, as a Covered Employee, you became a participant in the Plan on the January 1 or July 1 that was on or after the date on which you completed 1 Year of Eligibility Service and reached age 21. The Administrative Committee may require you to furnish additional information once you become a participant.


Who Is A Covered Employee?

You are a Covered Employee if you are actively employed by the Company and you are not:

a leased employee;

classified by the Company as an independent contractor or a leased employee (whether or not you are an actual employee);

a union employee;

a nonresident alien with no U.S. source income; or

an active participant in any retirement plan maintained by Aflac Japan.

You remain eligible to participate in the Plan as long as you remain actively employed as a Covered Employee.

What Is A Year Of Eligibility Service?

If you are not classified as a temporary employee, a Year of Eligibility Service is a 12-month period of employment beginning on your first day of employment with the Company. For example, if you were hired on August 15, 2006, and continued to work for the Company through August 15, 2007, you had 1 Year of Eligibility Service as of August 15, 2007. You will also receive credit for your service with Continental American Insurance Company for periods on and after October 1, 2009, and service with The Print House, Inc., in determining when you complete a Year of Eligibility Service. If you are classified as a temporary employee, you had to complete 1,000 hours of service during your first 12 months of employment or during any calendar year to become eligible for the Plan. An hour of service is generally each hour for which you are paid for working for the Company, and each hour for which you are paid for not working for reasons such as vacation, illness, holiday or leave of absence.

What Happens If I Terminate Employment And Am Later Rehired?

If you are rehired after September 30, 2013, you will not be eligible to accrue additional benefits under the Plan after rehire. However, a rehired participant may continue to earn service toward vesting, normal retirement, early retirement, rule-of-80 retirement and disability retirement with respect to unpaid benefits accrued during prior employment, if any.

What Happens If I Transfer Between Covered and Non-Covered Groups of Employees?

If you were not a Covered Employee on September 30, 2013, and you transfer and become a Covered Employee after September 30, 2013, you will not be eligible to accrue additional benefits under the Plan after you transfer, even if you were previously a Plan participant. However, you may continue to earn service toward vesting, normal retirement, early retirement, rule-of-80 retirement and disability retirement with respect to any benefits you previously accrued.


PLAN BENEFITS

What Is My Benefit Under The Plan?

Your monthly retirement benefit (also known as your Accrued Benefit) under the Plan will be an amount payable as a Life Annuity (as described below) and equal to (i) 1% of your Average Monthly Compensation times your Years of Credited Service up to 25, plus (ii) ½% of your Average Monthly Compensation times your Years of Credited Service in excess of 25. Benefit accruals under the Plan were frozen as of December 31, 2013, for Covered Employees who elected to stop accruing benefits under the Plan and receive enhanced employer contributions to the Company’s 401(k) plan instead (“Opt-Out Participants”). This means that the amount of an Opt-Out Participant’s Accrued Benefit will not increase based on service with, or compensation from, the Company after this date.

What Is A Year Of Credited Service?

A Year of Credited Service is a whole or partial 12-month period of employment with the Company. Partial years of employment will be added together. You will also receive credit for your service with Continental American Insurance Company for periods on and after October 1, 2009, and service with The Print House, Inc., in determining your Credited Service under the Plan. In addition, if you previously terminated employment with the Company before September 30, 2013, but returned to the Company within 12 months after your date of termination, your Credited Service will be calculated as if you had remained continuously employed for that period. For example, if you were hired by the Company on November 1, 1983, and terminated employment on January 31, 2001, you would have 17.252 Years of Credited Service. The 61 days you worked in 1983 plus the 31 days you worked in 2001 total 92 days. These 92 days are treated as a partial year of employment equal to .252 (i.e., 92 ÷ 365). Thus, you have 17 whole years of employment plus 1 partial year of employment for a total of 17.252 Years of Credited Service. If you are an Opt-Out Participant, you will not earn any additional Years of Credited Service for purposes of determining your Accrued Benefit after December 31, 2013. However, you will continue to earn Years of Credited Service toward rule-of-80 retirement (as described in “What If I Retire Early?” below). Before January 1, 1998, Years of Credited Service were determined under a different method. If you were a Participant in the Plan on December 31, 1997, then the number of Years of Credited Service that you had on January 1, 1998, was at least as large as the number of Years of Credited Service that you had on December 31, 1997.


Before January 1, 1983, if you terminated employment and were subsequently rehired but did not return to work within 120 days after the date you terminated employment, you will not receive credit for any service you had before your rehire date. For example, if you terminated employment January 1, 1981, and did not return to work until January 1, 1982, you will not receive credit for any service you had before January 1, 1982. If you terminated employment January 1, 1984, and returned to work on January 1, 1985, you will still receive credit for any service you had prior to January 1, 1984.

What Is My Average Monthly Compensation?

Your Average Monthly Compensation is determined by dividing your monthly compensation during the highest paid 5 consecutive whole or partial calendar years during the last 10 consecutive whole or partial calendar years of your participation in the Plan by 60. Partial years will not be counted if doing so would reduce your Average Monthly Compensation.

For example, assume you were hired on January 1, 2000, and terminate employment on October 31, 2011, and you had the following compensation each year:

2000 $35,000 2001 $60,000 2002 $42,000 2003 $49,000 2004 $48,000 2005 $45,000 2006 $46,000 2007 $42,000 2008 $48,000 2009 $49,000 2010 $50,000 2011 $51,000

First, the 2000 and 2001 years are disregarded because they did not occur during your last 10 years of employment. Second, the 2002 through 2011 years are reviewed to see which 5 consecutive-year period yields the highest total compensation. In this example, total compensation from 2007 through 2011 is the largest, totaling $240,000. Third, the total compensation is divided by 60. Therefore, Average Monthly compensation is $4,000, or $240,000 divided by 60. If you have fewer than 5 consecutive calendar years of participation in the Plan, your Average Monthly Compensation will be determined by dividing (i) your compensation during your consecutive whole and partial calendar years of participation by (ii) the product of 12 multiplied by the number of your consecutive whole and partial calendar years of participation.


If you are an Opt-Out Participant, your Average Monthly Compensation will be determined as of December 31, 2013. If you are a former participant whose benefit was frozen because of your rehire or change in status after September 2013, your Average Monthly Compensation will be determined as of the date you terminated or changed to a non-covered position, and none of your pay after you are rehired (or after you transfer back to a covered position) will be considered. The Plan provides a detailed definition of Compensation for determining your benefit amount.

What Is Considered Eligible Compensation?

In general, your benefits are based on your compensation reportable on IRS Form W-2, unreduced by your deferrals to the Company’s benefit plans (including the Aflac Incorporated Executive Deferred Compensation Plan and the Aflac Incorporated Market Director Deferred Compensation Plan). Your eligible compensation also includes income from services outside the United States otherwise excluded from income under Internal Revenue Code Section 911. Your Compensation does not include:

• Bonuses that are not paid on an annual incentive basis;

• Reimbursements;

• Expense allowances;

• Fringe benefits;

• Moving expenses;

• Deferred compensation other than EDCP and MDDCP deferrals;

• Stock options;

• Welfare benefits;

• Compensation in excess of the annual limit set by the Internal Revenue Service ($270,000 for 2017); and

• Compensation received before January 1, 2011, from Continental American Insurance Company.

PLAN FUNDING

How Is The Plan Funded?

The Plan is funded by actuarially determined contributions made to the trust fund by the Company. You make no contributions to the trust fund. All contributions to the Plan are held in trust for the exclusive benefit of the Plan’s participants and beneficiaries. Vanguard Fiduciary Trust Company is the Plan’s Trustee.


VESTING UNDER THE PLAN

What Is Vesting? Vesting means ownership. When you leave the Company, you will be vested in and have the right to receive all of your vested benefit in a payment form permitted under the Plan.

How Is Vesting Determined Under The Plan?

The vested percentage of your benefit depends on how many Years of Vesting Service you have with the Company. You earn 1 Year of Vesting Service for each whole 12-month period that you work for the Company beginning on your first day of employment with the Company. You will also receive credit for your service with Continental American Insurance Company for periods on and after October 1, 2009, and service with The Print House, Inc., in determining your Vesting Service. If you leave employment with the Company and then return within 12 months, your Vesting Service will be calculated as if you had remained continuously employed during this period. If you leave employment with the Company and return after having been gone for more than 12 months, your Vesting Service for each period of employment will be added together to determine your total Vesting Service. However, before January 1, 1983, if you terminated employment and were later rehired but did not return to work within 120 days after the date you terminated employment, you will not receive credit for any vesting service you had before your rehire date. When you have 5 Years of Vesting Service, you will become 100% vested in your benefit as shown in the chart below.

Completed Years of Vesting Service

Percent Vested in Accrued Benefit

Less than 5 years 5 years or more

0% 100%

For example, if you were hired on January 1, 2011, and are still employed by the Company on January 1, 2016, you will be 100% vested in your Accrued Benefit as of January 1, 2016. Regardless of your length of service, you will become 100% vested in your benefit if, while you are an active employee of the Company, you become Disabled. For purposes of the Plan, you are considered Disabled if you qualify for benefits under the Company’s long-term disability plan. If your claim for benefits under the Company’s long-term disability plan is denied, you may appeal that decision to the Administrative Committee. If you are not covered by a long-term disability plan maintained by the Company, you may file a claim with the Administrative Committee, which will then determine if you are Disabled using the criteria and definitions in the


Company’s long-term disability plan. The Administrative Committee may require medical proof of Disability, such as the certificate of one or more licensed physicians selected by the Administrative Committee.

What Happens If I Leave The Company Before I Become Vested?

If you are not fully vested in your benefit and you terminate employment with the Company and all its affiliates, you forfeit (or lose) the nonvested portion of your benefit, and you will not be entitled to payment of that benefit. In general, the benefit that you forfeit will be restored if you are rehired within 5 years.

DISTRIBUTIONS FROM THE PLAN

When May I Receive A Distribution Of My Benefit?

You may receive a distribution of your benefit when you:

terminate employment with the Company after you reach normal retirement age, which is age 65, or, if later, the fifth anniversary of your participation in the Plan,

terminate employment with the Company after you reach age 65 and have completed 5 Years of Vesting Service,

terminate employment with the Company after you reach age 55 and have completed 15 Years of Vesting Service (subject to reduction of your Accrued Benefit if you begin payment before normal retirement age),

terminate employment with the Company after your whole Years of Credited Service plus your age in whole years is equal to or greater than 80 (with an unreduced benefit), or

terminate employment with the Company because you become Disabled.

If you are a pilot or were a participant in the American Black Hawk Broadcasting Company Retirement Plan, other distribution dates may be available to you. Please contact Milliman for more details. Once you have satisfied one of these requirements, you may request your Accrued Benefit by calling Milliman at 1-866-767-1212.

Can I Leave My Benefit In The Plan?

If the lump-sum value of your benefit is $1,000 or less, your account will be automatically distributed to you in a single payment even if you do not request a distribution.


If the lump-sum value of your benefit is more than $1,000 but less than or equal to $5,000, you will be given the opportunity to affirmatively elect a distribution of your benefit. If you do not affirmatively elect a distribution, then your benefit will be automatically rolled over by the Plan to an individual retirement account (“IRA”) with Vanguard Fiduciary Trust Company as soon as practicable after you terminate employment. Your IRA will be automatically invested in a fund designed to preserve principal and provide a reasonable rate of return consistent with liquidity. You will be responsible for paying all fees and expenses assessed against your IRA. The fees and expenses will be comparable to the fees and expenses charged by Vanguard for other IRAs. For additional information on a Vanguard IRA and the associated fees and expenses, call Milliman at 1-866-767-1212.

If the lump-sum value of your benefit is greater than $5,000, the Trustee will continue to hold your benefit in trust until you request a distribution. If you do not request a distribution of your benefit, the Plan will distribute your benefit to you after you reach 65 or, if later, the tenth anniversary of your participation in the Plan, but in no event later than the April 1 immediately following the year in which you turn 70½.

What If I Am Reemployed?

If you return to work for the Company before receiving a distribution, you will not be eligible to receive a distribution while you are actively employed. If you are receiving annuity payments from the Plan and you return to work for the Company, your payments will cease until you again become eligible for a distribution under the Plan. The amount of your future annuity payments will be recalculated at that time. If your rehire date was before you reach normal retirement age (the later of age 65 or the 5th anniversary of your date of Plan participation), your benefit upon later retirement will be reduced by the actuarial equivalent value of the payments you received upon your initial retirement. If your rehire occurs after you reach your normal retirement date, your benefit will be reduced by the value of the payments you received before returning to work, but it will not be less than your Accrued Benefit at your normal retirement age.

What If I Retire Late? If you remain employed after reaching your normal retirement age (the later of age 65 or your 5th anniversary of Plan participation), you may not begin your pension benefits until you actually terminate employment. When you terminate, your benefit will be the higher of (i) your Accrued Benefit calculated as of your normal retirement date, increased actuarially to the date you retire; or (ii) your Accrued Benefit as of the date you retire.


What If I Retire Early?

If you are age 55 or older and have 15 or more Years of Vesting Service and you terminate employment with the Company and its affiliates, you may receive your accrued benefit when you reach normal retirement age, or you may elect to begin receiving your benefit before you reach normal retirement age (the later of age 65 or the 5th anniversary of Plan participation). If you choose to begin payments early, your benefit will be reduced as follows:

1/180 for each of the first 60 months by which your distribution date precedes the date you would reach normal retirement age, and

1/360 for each month over 60 by which your distribution precedes the date you would reach normal retirement age.

For example, if you have 15 Years of Vesting Service, you have

14 years of plan participation, your monthly benefit is $400, and you elect to retire at age 55, your early retirement benefit would be calculated as follows:

1/180 x 60 months = 33.3%

1/360 x 60 months = 16.7%

33.3% + 16.7% = 50.0%

50% x $400 = $200 (the amount of reduction of your benefit)

$400 - $200 = $200 (the amount of the early retirement benefit)

If your whole Years of Credited Service plus your age in whole years is equal to or greater than 80 (rule of 80) and you terminate employment with the Company and its affiliates, you may also elect to begin receiving your benefit even if you have not yet reached normal retirement age. In this case, your benefit will not be reduced for early commencement.

What If I Leave Before Reaching Early or Normal Retirement Age?

If you terminate employment with the Company and its affiliates, other than due to death, before you have satisfied the requirements listed in “When May I Receive A Distribution Of My Benefit?” above, but after you are vested (have at least 5 Years of Vesting Service), you generally will be eligible to receive your Accrued Benefit when you reach normal retirement age. If, however, you have at least 15 Years of Vesting Service, you may elect to begin your vested benefit when you reach age 55. If you chose to begin receiving your benefit before normal retirement age, your benefit will be subject to the same reductions that apply to early retirement benefits described in “What If I Retire Early?” above.


How Will My Distribution Be Paid?

The normal annuity form of distribution for your benefit (other than death benefits) is a Life Annuity if you are single and a Qualified Joint & 50% Survivor Annuity if you are married.

Life Annuity: This form of benefit will provide equal monthly payments for your lifetime, with no additional payments after your death.

Qualified Joint & 50% Survivor Annuity: This form of benefit will provide monthly payments to you for your life and, upon your death, monthly payments to your spouse (if he or she survives you) for his or her life equal to 50% of the monthly payment you received prior to your death.

As an alternative to the above normal forms of distribution, you

may instead elect one of the following forms of distribution:

Life Annuity with Years Guaranteed: This form of benefit will provide monthly payments to you for your life and, if you die before receiving 60, 120 or 180 (as selected by you) monthly payments, the value of the balance of such 60, 120, 180 monthly payments will be paid to your beneficiary in a lump sum.

Joint & Survivor Annuities: This form of benefit will provide monthly payments to you for your life and, upon your death, monthly payments to your beneficiary for his of her life equal to 50%, 75% or 100% (as selected by you) of the monthly amount paid during your life. You may designate your spouse or a non-spouse as your beneficiary.

Life Annuity: If you are married, you may elect a life annuity (as described above) as an optional annuity form.

How Will My Distribution Be Paid Upon Disability?

If you are entitled to a distribution of your benefit because you are Disabled, you may elect to have your distribution paid in:

Life Annuity: As described above.

Joint & 75% Survivor Annuity: This form of benefit will provide monthly payments to you for your life and, upon your death, monthly payments to your beneficiary equal to 75% of the monthly payment you received, for his or her life. You may designate your spouse or a non-spouse as your beneficiary.

Lump Sum: This form of benefit is a single payment of the entire vested interest in your account in cash. This form of benefit can also be paid or “rolled over” directly to another employer’s retirement plan or an IRA.

Monthly Installments: This form of benefit provides equal monthly payments for a period that you elect (which cannot exceed your life expectancy) in cash. You may elect for your beneficiary to receive any unpaid amounts upon your death in a lump sum payment.


Please note that the availability of lump sum distributions from the Plan may be limited if the Plan’s funded status falls below a certain level, or if the Company enters bankruptcy. You will be notified if these rules affect the payment of your benefit, and will receive more information about the distribution options available to you at that time.

Do I Need Spousal Consent To Select An Optional Form Of Distribution?

If you are married, your spouse must give written consent in order for you to select a payment form other than a Qualified Joint and 50% Survivor Annuity. Your spouse’s written consent must be witnessed by a notary public or Plan representative.

How Do I Designate A Beneficiary?

If you elect a form of distribution that provides for payments to a beneficiary, you will be able to elect your beneficiary when you elect your form of distribution.

If you are married when your benefit payments begin, your spouse is automatically your beneficiary unless you name someone else. For you to name someone else as your beneficiary, your spouse must give his or her written permission when you elect your form of distribution. Your spouse’s written permission must be witnessed by a notary public. If you are not married when your benefit payments begin, your beneficiary will be anyone you named as your beneficiary when you elected your form of distribution.

What Happens If I Die Before I Receive My Benefit?

If you die before you receive any payment under the Plan but after you are vested, your spouse or domestic partner will receive monthly annuity payments. If you are not married and do not have a domestic partner at the time of your death, no payments will be made from the Plan. For this purpose, your domestic partner is a same-gender or opposite-gender domestic partner with whom you have registered under any domestic partnership law. For your domestic partner to be recognized under the Plan, you must not be married to any other person and you must provide documentation to the Administrative Committee of your legal registration. If you are 55 or older and have 15 Years of Vesting Service or if your whole Years of Credited Service plus your age equals or exceeds 80 when you die, your spouse’s or domestic partner’s monthly benefit will be equal to the benefit your spouse or domestic partner would have received if:

you terminated employment with the Company on your date of death (or the date of your most recent termination of employment, if earlier); and

you elected to begin receiving your benefit in the form of a joint & 50% survivor annuity with your spouse or domestic partner as your beneficiary.


Otherwise, your spouse’s or domestic partner’s monthly benefit will be equal to the benefit your spouse or domestic partner would have received if:

you terminated employment with the Company on your date of death (or the date of your most recent termination of employment, if earlier);

you survived until the earliest retirement age (i.e., the date you would have attained age 55 and had 15 Years of Vesting Service or the date your whole Years of Credited Service plus your age would equal or exceed 80); and

you retired at the earliest retirement age with an immediate joint & 50% survivor annuity with your spouse or domestic partner as your beneficiary.

Your spouse may elect to begin receiving benefits within one year

after your death, or may delay payment until you would have reached the Plan’s earliest retirement age (but not after you would have reached age 65). Your domestic partner will begin to receive benefits within one year of your death. If your spouse or domestic partner begins receiving benefits before your earliest retirement age, the benefit will be actuarially reduced to reflect the earlier payment date. If your spouse’s or domestic partner’s benefit is valued at $5,000 or less, it will be paid in a lump sum instead of monthly payments as soon as practicable after your death. For your spouse’s benefit, if your spouse does not elect to receive the lump sum in cash or roll it over to an IRA, the payment will automatically be made in cash (if $1,000 or less) or automatically rolled over to an IRA (if between $1,000 and $5,000). For your domestic partner’s benefit, the payment will automatically be made in cash.

What Happens If I Die After I Begin Receiving My Benefits?

If you die after you begin receiving payments under the Plan, the death benefit will depend on the form of benefit payment you elected.

Are There Any Restrictions On My Distribution Rights Based On Plan Funding Levels?

Federal law requires that the Plan apply certain restrictions if the Plan’s funding level falls below certain thresholds or if the Company goes into bankruptcy. Currently, the Plan is funded above those levels and the Company intends to continue funding the Plan at sufficient levels so that these restrictions will not apply. You will receive a notice if and when these restrictions become effective for the Plan. The restrictions include:

Limitation on the availability of lump sum distributions over $5,000

Limitation on plant shutdown and similar benefits

Limitation on plan amendments increasing benefits

Automatic freeze of future benefit accruals


BENEFIT TAX CONSIDERATIONS

How Are My Distributions Taxed?

Any amount that you receive from the Plan generally will be taxable under federal income tax laws in the year that you receive the distribution, and you must report this income on your annual tax returns. You may also be subject to state income taxes.

How Does Rolling Over My Distribution Affect My Taxes?

If eligible, you can continue to defer tax on all or a portion of your distribution by rolling it over into an IRA or another employer’s retirement plan that accepts rollovers. Generally, any distribution from a qualified plan in a single lump sum or in installments of 10 years or less payable to you, your spouse or an alternate payee under a QDRO who is your spouse or former spouse, is eligible for rollover treatment. A non-spouse beneficiary may also roll over a lump sum distribution from the Plan into an inherited IRA. Annuity payments are not eligible for rollover.

What Are The Types Of Rollovers?

You can choose a direct rollover of all or any portion of a payment that is eligible for rollover treatment. In a direct rollover, the distribution is paid directly from the Plan to an IRA or another employer’s eligible retirement plan that accepts rollovers. Alternatively, you can choose to have the distribution (or any portion of it) paid to you. In that case, the amount paid to you will be subject to income tax unless, within 60 days, you roll over the payment plus an amount equal to the taxes withheld to an IRA or another employer’s eligible retirement plan that accepts rollovers.

What Taxes Will Be Withheld From My Distribution?

Generally, the Plan must withhold and remit to the IRS 20% of any distribution which is eligible for rollover and is not directly rolled over. Any distribution not eligible for rollover treatment is taxable, but the mandatory withholding rules do not apply; in that case, you may elect not to have withholding apply.

Should I Consider Using A Financial Professional?

The tax laws are complicated and subject to change, and the Company cannot provide individual tax advice. The Company suggests you seek advice from a qualified tax advisor or a financial planner to be sure your personal circumstances are considered carefully if you receive a distribution.

ADMINISTRATION

Who Administers And Interprets The Plan?

The Plan is administered by the Administrative Committee, which is appointed by Aflac Incorporated. The Administrative Committee will administer the Plan in a nondiscriminatory manner for the benefit of all Plan participants and their beneficiaries. The Administrative Committee has the full power, authority and discretion to interpret the Plan’s written terms and determine their application to specific factual circumstances. The Administrative Committee’s exercise of discretion in its


interpretation of the Plan’s written terms and its finding of fact in its role as the Plan Administrator will not be overturned unless a court determines they are arbitrary and capricious. Costs and expenses of operating the Plan will be paid by the Plan unless they are paid by the Company.

How Can I Pursue A Question About Eligibility Or Benefits?

Generally, any questions and claims you may have about eligibility for participation and benefits in the Plan can be handled informally by Milliman. However, if you wish to submit a formal claim or question for review, you must submit a written claim to the Administrative Committee. All claims must be submitted within 2 years of the date the payment was made or payments commenced or the date the action complained of occurred. A response to your claim will be provided to you within 90 days (or 180 days if you are notified of an extension). If your claim is based on a determination of Disability made by the Administrative Committee, a response to your claim will be provided to you within 45 days (or 75 days if you are notified of an extension). If your claim is denied, the Administrative Committee will provide written notice to you or your beneficiary of the specific reason for the denial. You or your representative may appeal the decision and may review relevant Plan documents to help prepare your appeal. Your appeal must be filed with the Administrative Committee, in writing, within 60 days after you receive written notice of the denial of your claim. The Administrative Committee will then consider your appeal and will notify you of its decision within 60 days (120 days if you are notified of an extension). If your claim is based on a determination of Disability by the Administrative Committee, your appeal must be filed with the Administrative Committee, in writing, within 180 days after you receive written notice of the denial of your claim. The Administrative Committee then will consider your appeal and will notify you of its decision within 45 days (90 days if you are notified of an extension) after the filing of your appeal for review. If the Administrative Committee’s decision is unfavorable, you will be notified of the reasons for the denial and the provisions in the Plan or other documents that were used to arrive at the decision. If you have a claim that is denied or ignored, in whole or in part, and you have exhausted all of the above claim and appeal procedures, you will have 90 days to file suit in federal court. This 90-day period begins on the date you exhaust the claim and appeals procedures. If you do not file within 90 days, your suit will not be allowed.


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).

May The Company Terminate Or Amend The Plan?

The Company intends to continue the Plan indefinitely. However, the Company reserves the right to amend, modify or terminate the Plan at any time. If the Plan is amended or terminated, the benefit that you would have received if you terminated employment with the Company at that time will not be reduced. Also, if the Plan is terminated, you will become fully vested in your Accrued Benefit, to the extent it is funded. If the Plan is terminated without sufficient assets to pay all benefits, the assets will be allocated among participants in the order required by federal law. If excess assets remain following termination after all participants have received their benefits, the Administrative Committee will allocate the excess assets among the participants.

PBGC INSURANCE

What Is PBGC Insurance?

Your pension benefits under the 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: (i) normal and early retirement benefits; (ii) disability benefits if you become disabled before the plan terminates; and (iii) certain benefits for your survivors. The PBGC guarantee generally does not cover: (i) benefits greater than the maximum guaranteed amount set by law for the year in which the plan terminates; (ii) some or all of benefit increases and new benefits based on plan provisions that have been in place for fewer than 5 years at the time the plan terminates; (iii) benefits that are not vested because you have not worked long enough for the Company; (iv) benefits for which you have not met all of the requirements at the time the Plan terminates; (v) 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 your Normal Retirement Age; and (vi) non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.


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 Plan has and on how much the PBGC collects from employers. For more information about the PBGC and the benefits it guarantees, ask Milliman or contact the PBGC’s Technical Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C. 20005-4026 or call 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.

MISCELLANEOUS PLAN INFORMATION

What Is The Name Of The Plan?

Aflac Incorporated Pension Plan

Who Is The Plan Sponsor?

Aflac Incorporated Worldwide Headquarters 1932 Wynnton Road Columbus, Georgia 31999

What Companies Participate In The Plan?

You may obtain a complete list of the companies that participate in the Plan by sending a written request to the Benefits Department. This list is also available for examination at the address of the Benefits Department shown below.

How Is The Plan Identified By The IRS And The Department Of Labor?

The Plan is identified by the Plan Sponsor’s Employer Identification Number, 58-1167100, and by the plan number, 002.

What Type Of Plan Is The Plan?

The Plan is defined benefit plan.

How Is The Plan Administered?

The Plan is administered by the Administrative Committee.

How Can I Contact The Administrative Committee?

Administrative Committee Attn: Benefits Department Aflac Incorporated Worldwide Headquarters 1932 Wynnton Road Columbus, Georgia 31999


Who Is The Plan’s Agent For Service Of Legal Process?

Administrative Committee Attn: Benefits Department Aflac Incorporated Worldwide Headquarters 1932 Wynnton Road Columbus, Georgia 31999 Legal process may also be served on the Plan’s Trustee.

Who Is The Trustee Of The Plan?

Vanguard Fiduciary Trust Company 100 Vanguard Boulevard, 248 Malvern, Pennsylvania 19355

What Is The Plan’s Fiscal Year?

The Plan’s records are maintained on a calendar-year basis.

Who Is The Plan’s Recordkeeper?

Milliman 10000 North Central Expressway Suite 1500 Dallas, Texas 75231-4177 www.millimanbenefits.com 1-866-767-1212

How Can I Contact The Benefits Department?

Benefits Department Aflac Incorporated Worldwide Headquarters 1932 Wynnton Road Columbus, Georgia 31999 (706) 317-0770

What Happens When I Return From Military Leave?

Under federal law, when you return to active employment from a qualified military leave, you are entitled to certain rights with regard to your eligibility, Years of Credited Service, Years of Vesting Service and Accrued Benefit. Please contact the Benefits Department for more information.

Can I Assign My Benefit?

Your Plan benefits may not be pledged, assigned or garnished in payment of any debts. Because the Plan is designed to provide security during your retirement, benefits are not assignable or subject to the claim of any creditor. However, as required by federal law, the Plan provides that your benefits may be paid to a divorced spouse, child or other dependents under a QDRO. A QDRO is any judgment, decree or order (including certain property settlement agreements) that provides for child support, alimony and/or marital property rights to a spouse, former spouse, child or other dependents under state domestic relations law, including community property law. The order must meet specific requirements and have specific procedures regarding the amount and timing of payments in order to be recognized by the Administrative Committee as a QDRO.


You may receive a copy of the Plan’s procedures for reviewing and processing QDROs free of charge upon request. Contact the QDRO processing center at 1-877-544-9522, or write to the Aflac QDRO Processing Center, P.O. Box 7338, Atlanta, GA 30357.

Additionally, as required by federal law, the Plan provides that your benefits may be garnished to satisfy a judgment or settlement against you for certain crimes against the Plan or certain fiduciary breaches regarding the Plan. Your Plan benefits may be garnished to satisfy a lien on your assets for unpaid federal taxes.

What Legal Rights Do I Have Regarding My Plan Benefits?

As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (“ERISA”). ERISA provides that all Plan participants shall be entitled to:

Examine, without charge, at the Plan administrator’s office and at other specified locations, such as worksites, 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.

Obtain, upon written request to the Plan administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan administrator may make a reasonable charge for the copies.

Receive a summary of the Plan’s annual funding report. The Plan administrator is required by law to furnish each participant with a copy of this funding notice.

Obtain a statement telling you whether you have a right to receive a pension at normal retirement age (the later of age 65 or the 5th anniversary of your initial date of Plan participation) and if so, what your benefits would be at normal retirement age if you stop working under the 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 get a right to a pension. This statement must be requested in writing and is not required to be given more than once every 12 months. The Plan must provide the statement free of charge.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the 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 administrator. If it should happen that Plan fiduciaries misuse the 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. In addition, if you disagree with the plan’s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in 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. If you have any questions about your Plan, you should contact Milliman at 1-866-767-1212 or log onto www.millimanbenefits.com. You may also 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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Aflac Incorporated Pension Plan Summary Plan Description · Aflac Incorporated Pension Plan Page 2...

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