Investment Savings
The Spectrum Investment Savings Plan is a defined contribution plan which provides you with the opportunity to contribute to your retirement.
The plan is available to all full-time salaried and non-bargained Cooper people in the United States.
Through payroll deduction, you can make pre-tax or after tax contributions from your eligible pay, and invest them in the options provided in the plan. An Internal Revenue Service dollar limit also applies. You may increase or decrease the amount of your contributions as often as each pay period either through automated voice response or the web site. Principal Financial Group is the administrator for the Spectrum Investment Savings Plan.
Cooper will contribute up to 50 cents to your account in the plan for every dollar contributed by you - up to 6 percent of your eligible pay - depending on the company’s return on equity.
Cooper will contribute an additional amount if the company’s return on invested capital (ROIC) reaches certain specified levels. This change has been made because of the importance of ROIC to the company’s stock price. Financial markets generally believe that ROIC is the most appropriate and relevant measure of corporate performance.
A loan feature is provided under this plan. Cooper people can essentially borrow from themselves up to 50 percent of the amount they have contributed, plus earnings, to their 401(k) sub-account. A loan cannot exceed $50,000 as limited by the Internal Revenue Service and must be for a minimum of $500. The amount of the loan, including interest, will be repaid by payroll deduction to your account. A Cooper person can have only one loan outstanding at a time and it must be paid off if you leave the company.
Cooper people are always vested in their contributions. They will become vested in the company’s matching contribution after three years of service. Cooper people with less than three years of service can retrieve their contribution should they leave the company.
For a complete list of investment opportunities and descriptions, please visit the Principal Financial Group web site at www.principal.com. Questions may also be addressed by contacting the Client Contact Center at 1-800-547-7754.
The benefits you will receive from this plan depend on:
