Plan Information
Investment Options
Account Access Resources
Website Overview
CDK 401(k) Plan Overview and Account Access
• Division of ADP, Inc.
• Providing retirement plan solutions since1989
• Approximately 1.3 million retirement plan participants1
• Over $52.5 Billion in “assets under administration” 1
• 44,000 Retirement Plan Clients
• ADP, Top-ranked company in Financial Data Services in
FORTUNE® magazine’s The World’s Most Admired Companies2
CDK 401(k) Plan Highlights Page 3
About ADP Retirement Services
1. Source: Automatic Data Processing Inc, 2014 Annual Report.
2. Source: FORTUNE® Magazine’s Most Admired Companies 2014.
• Contribution types: Traditional (Pre-tax) & Roth (after-tax)
• Your Contribution: 1% - 50% of your eligible compensation
up to the annual IRS Limit.
• Employer contribution: 70% of the first 6% of your salary
deferrals after 6 months of service*
• Vesting: Employee contribution accounts fully vested.
Employer contribution account fully vested after 3 years of
service**
• Loans: Offered by the plan
• Withdrawals: Age 59.5, and Hardship
• Rollovers: Contact the Rollover Team at 877-401-5725
CDK 401(k) Plan Highlights Page 4
Plan Information
* While credited to your account each pay period, you must be employed on December 31st to fully earn the match.
** Your contributions and any amounts you rolled into the plan, adjusted for gains and losses, are 100% yours.
Save more with catch-up contributions
Plan for what’s ahead
* Subject to plan maximums.
$18,000
IRS annual maximum contribution
$6,000
Catch-Up for those age 50+
$24,000
Total you can contribute to your account in 2015*
+
CDK 401(k) Plan Highlights Page 5
Investment Options
ADP Retirement Services | 7
Low Risk/
Low Potential Return
Stable Value
Fixed Income
Large-Cap Stock
Mid-Cap Stock
Small-Cap Stock
Global/ International
Stock
R E
T U
R N
R I S K
This graph illustrates the types of investments available in your plan classified by their Morningstar category according to their potential return and investment risk. It is not intended to be, nor should it be construed as, investment advice or a recommendation with respect to any particular investment.
CDK & ADP
Stock
Investment Options
CDK 401(k) Plan Highlights Page 8
• CDK & ADP Stock Funds
• Company Stock Funds - Carried over from
old ADP Plan
• No new money can be contributed to the
company stock funds
• Unitized price is valued daily and is specific
to these stock funds
• Any dividend paid is added to the unitized share
price of the stock fund
Account Access Resources
Quarterly account statement
• Account balance
• Investment performance
information
• Personal rate of return
• Transactional information
CDK 401(k) Plan Highlights Page 10
Account Access Resources
*Registered representatives of ADP Broker-Dealer, Inc., an affiliate of ADP, LLC, One ADP Blvd., Roseland, NJ. Member FINRA.
• Website
• 888.822.9238
• Service Representatives*
• Quarterly account statement
CDK 401(k) Plan Highlights Page 11
Website Overview
Account access via the CDK associate
web portal or at www.portal.adp.com
• Log on with your
user ID and password
• First-time users must
register their email address
• Passcode is :
DSHR-register
• Frequently asked questions
CDK 401(k) Plan Highlights Page 13
Education and Planning resources
• Retirement planning article library
• Interactive charts
• Retirement Savings Tool
• Calculators › 401(k) calculator – effect on your paycheck
› Retirement planner – how much you need to save
› Asset allocation profiler – how to allocate your account
› Choosing a withdrawal rate calculator – how long your savings will last
› Roth 401(k) calculator – decide which type of contributions are right for you
CDK 401(k) Plan Highlights Page 14
Website Overview
Retirement Savings Tool
Easy access from the home
page by clicking on
“Retirement Calculator”
Website Overview
The Retirement Savings Tool (RST) is provided for educational purposes only. Income projections and other information generated by the RST are hypothetical in
nature, do not reflect actual investments or investment results and are not guarantees of future results. Plan participants should not rely on RST as the primary
basis for their investment, financial, or tax planning decisions. Plan participants should consult with their tax advisor or investment professional. ADP cannot
guarantee or assure a plan participant’s ability to meet any of their goals or that any hypothetical results actually will occur. The RST simply uses participant
information and the assumptions selected to provide a rough assessment of the likelihood that their hypothetical results may be achieved.
CDK 401(k) Plan Highlights Page 16
Get fund information
• Fund summaries
• Market timing information
• Rates of return
• Prospectuses
Website Overview
CDK 401(k) Plan Highlights Page 17
Website Overview
CDK 401(k) Plan Highlights Page 18
Transactions
• Change your contribution rate
• Change how your future contributions are invested
• Change how your current balance is invested
• Elect plan features
Website Overview
Change your contribution rate and investment elections
CDK 401(k) Plan Highlights Page 19
Elect GuidedSavingsSM services from GuidedChoiceTM
• Get help with deciding how much to save
• Have your investments selected for you based on your personal
situation
• Get a retirement strategy that considers other factors, like your
spouse’s savings or outside investments
• Election can be made under the Investments tab by clicking
Investment Help by Guided Savings
CDK 401(k) Plan Highlights Page 23
Website Overview
GuidedSavingsSM is a service mark of GuidedChoiceTM Asset Management, Inc. Neither ADP, LLC, nor any of its affiliates is an affiliate of, nor do any of
them endorse the services or products of, GuidedChoiceTM Asset Management, Inc.
Other web capabilities
• Manage your profile
• Designate or change your beneficiaries
• Update your personal information
• Elect electronic delivery
• Get your quarterly newsletter
CDK 401(k) Plan Highlights Page 24
Website Overview
CDK 401(k) Plan Highlights Page 25
99-3760-0315
ADP, LLC and its affiliates do not offer investment, tax or legal advice
and nothing contained in this communication is intended to be, nor should be construed as, investment advice or a recommendation
for a particular investment option. Questions about how laws,
regulations and guidance apply to a specific plan should be directed
to your plan administrator or legal, tax or financial advisor.
Investments in mutual funds and commingled funds (also known
as collective trusts) involve risk. Some investment products have more
risk than others. For complete information about a particular fund
or to obtain a fund prospectus (or information statement, in the case
of commingled funds), go to www.portal.adp.com. You should
carefully
consider an investment option’s objectives, risks, charges and
expenses before investing. The prospectus (or information statement,
as applicable) contains this and other important information about
the investment option and investment company. Please read the prospectus/information statement carefully before you invest.
o How The Plan Works
o How The Spin Affected Your Pension
o Age and Service Criteria
o Balances Less Than $5,000
o Transfer Your ADP Pension to a Qualified Retirement
Plan
ADP Pension Plan - Overview
How ADP’s Pension Plan Works - Two Components -
Accumulated prior to 1990
o Defined benefit pension plan
o Payable as a lifetime monthly installment
at retirement
o Not eligible for lump sum payment
o Not eligible for rollover to another plan
Accrued from 1990 to Spin Date
o Cash Balance Plan
o Payable as a lump sum or a lifetime
monthly annuity upon retirement
o If eligible for lump sum, can take as
cash* or roll over to a qualified
retirement plan (e.g., CDK, IRA, another
plan)
o Must qualify for retirement as follows in
order to initiate payment or distribution if
benefit amount is $5,000 or greater:
• Age 65 regardless of years of
service, or
• Age 55 with at least 5 years of service
* If paid to you it’s taxable income
ADP Pension Plan Page 28
o All associates hired on or before July 1, 2013 earned a
benefit in the ADP Pension Plan up through the spin date.
o All associates who transitioned to CDK are considered
100% vested in their benefit.
o Benefits from the Plan are generally paid at retirement, with
the exception of benefit amounts that are less than $5,000.
o The timing of when you can receive your benefit from the
Plan is determined by your age and the amount of your
benefit.
ADP Pension Plan Page 29
How The Spin Affected Your Pension
Options Based on Age and Service for
Benefit Amounts Greater than $5,000
Age 55 with less than 5 years of
service o Participants with less than 5 years of
service will not be able to collect their
benefit until age 65.
o Balances left in the Plan will continue
to earn interest based on the 10-year
Treasury Rate (currently 3.25%).
Age 55 with more than 5 years of
service
o Participants have the option of
leaving their benefit in the Plan but
will be required to collect no later
than age 65, or
o You have the option of taking the
benefit in
I. Cash (as taxable income)
II. Rolling it over to another
qualified plan
o Balances left in the Plan will
continue to earn interest based
on the 10-year Treasury Rate
(currently 3.25%)
ADP Pension Plan Page 30
Age 65 regardless of years of service
o Participants in this age group are currently
eligible to receive their benefit from the
Plan
o If you are age 65 or over, you are required
to commence your benefit immediately
and will be contacted 3 months before
your 65th birthday
o Benefit amounts that are less than $5,000 must be paid at this time.
o Participants were sent a letter and a Lump Sum Payment Application.
o The lump sum can be rolled over to the CDK 401(k) plan, an IRA, or another tax
qualified plan. Amounts paid directly to you are considered taxable income.
o If your completed application is not returned within 90 days from the date of the
letter: If your balance is $1,000 or less, you will automatically be sent a check with taxes
withheld.
If your balance is more than $1,000, the funds will automatically be moved to an IRA
with The Bancorp Bank.
ADP Pension Plan Page 31
Balances Less Than $5,000
Before taking any action you may want to check with a
Financial Advisor to determine which option is best for you
If you meet the criteria to transfer your ADP Pension to another qualified
retirement plan and you decide to transfer it to the CDK 401(k) Plan:
o Contact ADP Benefits Hotline at 800.735.0350
o Press 2 for pension plan
o Request a distribution
ADP Pension Plan Page 32
Transferring Your ADP Pension to the
CDK 401(k) Plan
o Obtain a CDK 401(k) Rollover Form by contacting the 401(k)
Service Center at 888.822.9238
o Rollover checks must be made payable to Reliance Trust
Company FBO (participant’s name)
o Complete Rollover Form: Acknowledgement, Rollover Investment
Direction and Signature
o Mail completed form and check as stated on the form
Once your Rollover Form is complete, the Rollover check made payable to
Reliance Trust Company, must accompany the form for the stated dollar
amount.
ADP Pension Plan Page 33
Transferring Your ADP Pension to the
CDK 401(k) Plan
o The easiest way for you to get answers about your pension benefit is by
email… [email protected]
o Your questions will be answered in a timely manner, in writing, so that you
will have documentation for your records.
o Phone requests can be made to 800.735.0350.
o Because of high call volumes, voicemails will be answered within two
business days.
o If you have relocated since the spin-off, please send your new address to
email address shown above.
ADP Pension Plan Page 34
Contacting ADP
Website access to your ADP Pension information will be
available by the fall of 2015. You will be contacted by mail
shortly before the website becomes available with more
details
Participants will be able to request pension estimates, model
retirement scenarios, and initiate the retirement process
online
ADP Pension Plan Page 35
Coming Soon
What type of contributions can I make to the CDK 401(k) Plan? The CDK 401(k) Plan allows for before-tax and Roth after-tax contributions. What is a before-tax contribution? Before-tax contributions are deducted from your paycheck before taxes are determined on your income. Before tax contributions are permitted to grow tax deferred until they are withdrawn, at which time your before-tax contributions and earnings on these contributions are taxed at your ordinary income tax return. What is a Roth after-tax contribution? Roth after-tax contributions are deducted from your paycheck after taxes are withheld from your pay. Since you give up the immediate tax benefits offered under the before-tax contribution option, you can eventually withdraw your Roth contributions and earnings on these contributions tax-free.
Q&A Page 37
Q&A
Can I invest in the pre-tax and Roth after-tax contributions at the same time? Yes, you can invest in both the pre-tax and Roth after-tax contributions at the same time. Are there any limitations on the amount I can contribute to the CDK 401(k) Plan? Yes. The Plan will allow you to contribute up to 50% of your pay each pay period. If you are considered a Highly Compensated Employee (HCE) as defined by the Internal Revenue Code, you will be able to contribute up to 12% of your pay each pay period. The IRS also places limits on the amount you can contribute to a 401(k) plan each year. For 2015, the limit for regular contributions is $18,000. Those eligible to make catch-up contributions (age 50 or over) can save an additional $6,000.
Q&A Page 38
Q&A
Does CDK match my 401(k) contribution? Yes. CDK matches your contributions beginning the first of the month coincident with or next following the 6 month anniversary of an Employee’s hire date. Your ADP service will be honored for match eligibility purposes. What is the CDK Company Matching contribution? The CDK Company Matching contribution is $.70 for every dollar you contribute, up to 6% of your pay (after 6 months of participation). Where can I call to obtain more information about the CDK 401(k) Plan? More information about CDK’s 401(k) Plan is available through the CDK Retirement Plan Service Center at 1-888-822-9238.
Q&A Page 39
Q&A
Can you please explain how the vesting for the CDK 401(k) Plan works? Yes. The Company’s Matching Contributions and their earnings fully “vest” over a three year period of service with the Company. After three years of service, Matching Employer Contributions are 100% vested. Your service with ADP will be honored for vesting purposes. Does the Plan provide flexibility to invest in a number of different investment funds? Yes. The Plan gives you the flexibility to invest in a number of different investment funds. Each investment fund has a specific investment objective, level of risk, and potential return. You have the choice to change the amount you contribute and adjust how your contributions are invested at any time.
Q&A Page 40
Q&A
How do I access my personal account? You can access your personal account via the CDK Associate Portal by clicking on ADP, then on “401k Information” under Recommended Links. If you are not logged into the CDK Portal (i.e. logging in from home), you can access your personal account by visiting www.portal.adp.com . Log in using your User ID and Password. The 401(k) Plan web site allows you to: - Check your current account balance and contribution rate - Check and/or change your current investment election - Information on loans, withdrawals and distributions - Enroll for the first time or make changes to your account - Receive general Plan information, including investment fund performance - Change your password and security questions/answers for online access
Q&A Page 41
Q&A
At what age can I begin taking money out of the CDK 401(k) Plan without a penalty? You can begin taking money out of the CDK 401(k) Plan without paying the 10% federal penalty tax at age 59 ½. However, your distribution will be considered taxable income. What is a Required Minimum Distribution (RMD) and when do I have to begin withdrawing my funds? Your RMD is the minimum amount you must withdraw from your account each year. The IRS generally requires you to start taking withdrawals from your retirement plan account when you reach age 70 ½. Can I add funds to the ADP and CDK Stock Funds? No, you can no longer add funds to the ADP and CDK Stock Funds. Once you remove money from those funds they cannot be reinvested into the stock funds.
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Q&A