Additionally, the Plan allows for discretionary profit sharing contributions and qualified
non-elective
contributions (QNEC) by the Company. For the fiscal year ended March 31, 2018, there were no discretionary profit sharing contributions or QNEC contributions made.
Rollover contributions meeting certain guidelines detailed in the Plan document may be made to the Plan.
Participant Accounts
Separate accounts are
maintained for each participant. Participants direct the investment of their Plan accounts among a variety of investment options. Participants may change their elections, including investments in the Company common stock, on a daily basis. Plan
earnings (losses) from investments are allocated to the participant account balances on a daily basis using a weighted-average of participant account balances.
Vesting
Participants are immediately vested
in their voluntary contributions, plus actual earnings thereon. Prior to the amendment of the Plan effective April 1, 2018 to change the vesting schedule for employer contribution accounts, Participants vested in Company matching and profit
sharing contributions as follows:
|
|
|
|
|
Years of Vesting Service
|
|
Vested Percentage
|
|
Less than 2 years
|
|
|
0
|
%
|
2 but less than 3 years
|
|
|
20
|
%
|
3 but less than 4 years
|
|
|
40
|
%
|
4 but less than 5 years
|
|
|
60
|
%
|
5 but less than 6 years
|
|
|
80
|
%
|
6 or more years
|
|
|
100
|
%
|
Additionally, participants become 100% vested in Company contributions upon death, disability, or upon reaching the
retirement age as defined in the Plan document.
As described above, effective April 1, 2018, subsequent to the Plan year end, the Plan was
amended to revise the vesting schedule for employer contribution accounts. Per the amended Plan, an employee will be 100% vested in any Viasat employer contributions once the employee completes three years of service, a change from the six year
vesting requirement in effect under the Plan prior to such amendment
Forfeitures
Amounts forfeited by terminated employees are first used to pay expenses of the Plan and then to reduce Company matching contributions. As of
March 31, 2018 and 2017, forfeitures of $526,510 and $407,683, respectively, were available to reduce future employer contributions. During fiscal years 2018 and 2017, forfeitures of $479,918 and $399,337 were utilized to reduce the fiscal
years 2018 and 2017 employer contributions receivable, respectively.
Payment of Benefits
Prior to termination of employment, a participant may withdraw all or any portion of their rollover balance. Upon retirement or other termination of
employment, participants or their beneficiaries are entitled to receive their vested balances in a lump sum distribution or installment payments. Involuntary
cash-out
distributions of amounts greater than
$1,000 but not more than $5,000, are distributed in the form of a direct rollover to an individual retirement plan designated by the Plan administrator. If the distribution is less than $1,000, a check for the vested balance is sent to the employee,
less applicable tax withholding.
Hardship Withdrawals
Upon certain conditions, participants, while still employed by the Company, are permitted to withdraw, in a single sum, a portion of their vested account
as a result of an immediate and heavy financial need. These conditions include unreimbursed medical expenses, the purchase of the participants principal residence, the payment of post-secondary education tuition, the payment of burial or
funeral costs of immediate family members, the payment of natural disaster
clean-up
on the participants principal residence or to prevent eviction or foreclosure from the participants
principal residence. A participants right to make deferrals to the Plan will be suspended for six months after the receipt of a hardship withdrawal.
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