From the Human Resources Department

UST hourly employees with assets in the AWDC Plan:
As stated on numerous occasions, the University of St. Thomas Non-Exempt Employees Retirement Plan and Trust was terminated as of December 31, 1999. This plan is commonly referred to as the Age Weighted Deferred Compensation (AWDC) Retirement Plan. We now are ready to move to the final steps of that plan termination.

A communication recently was mailed to your home, which includes questions and answers about the plan termination, a Special Tax Notice, the distribution form from Wells Fargo (Norwest), and a return envelope for the form. If you have not yet received that communication, it should arrive within several days.

You will have until Sept. 30, 2000, to submit a completed form, showing your selected distribution option. You will have a choice of either a rollover to an Individual Retirement Account (IRA) or cash.

NOTE: If you request a cash distribution, approximately 50 percent of the account balance may be lost to taxes and penalties. It is anticipated that the distributions will be completed before the end of 2000.

During the period the plan was waiting for the IRS approval to terminate the plan, and while we wait for the distribution request forms to be returned, the plan assets continue to be invested. All earnings and/or losses, as reflected by market performance, continue to be reflected in your account. There will be no other activity in the plan during this period. Sometime during the next several weeks, the investments may be liquidated and the assets re-invested in a money market account. This form of investment allows for quicker distribution of the assets.

Your statements from Wells Fargo (Norwest) may show that the assets in the plan are not vested (0 percent vested). Usually, it took five (5) years of plan participation to be fully vested in this plan. When the plan was terminated, however, everyone with assets in the plan became 100 percent vested. That will entitle you to a distribution of the plan assets in your account, no matter how long you were a participant in the plan.

For a complete explanation of your distribution choices, please read the communication mailed to your home and attend one of the meetings mentioned below. A representative from Deloitte and Touche will be on hand at each of the meetings to answer all your questions.

The assets in the AWDC plan are an important part of your financial future, so attend one of the meetings to learn more about your options.




Room and Building

Aug. 22

6:30-7:30 a.m.

St. Paul

Room 155, Murray-Herrick Campus Center

Aug. 23

2-3 p.m.

St. Paul

Room 305, O’Shaughnessy Educational Center (videoconferenced to Minneapolis and to the Gainey Conference Center)

Aug. 29

4-5 p.m.*

St. Paul

Room 155, Murray-Herrick Campus Center

*NOTE: The start time for this session mistakenly was listed as 8:00 on the communication sent to your home.





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