HARVARD CLUB OF BOSTON RETIREMENT PLAN FOR EMPLOYEES

Notes to Financial Statements

Note 1 – Description of plan

The following description of the Harvard Club of Boston Retirement Plan for Employees (the “Plan”) is provided for general information purposes only. More complete information is provided within the Plan documents.

General

The Plan is a noncontributory, defined benefit plan sponsored by the Harvard Club of Boston (the “Club”) covering all Club employees who meet the eligibility requirements and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). The Plan is administered by trustees appointed by the Club, who have sole authority to control and manage the operation and administration of the Plan, subject to the Plan’s terms and provisions.

Bank New York Mellon (“BNY”) (“Custodian”) is the custodian to the Plan’s assets.

Eligibility

Effective September 1, 2012, the Plan's sponsor elected to curtail the plan and froze the benefits earned by union employees until August 31, 2015. Further, the Plan was amended to cease benefit accruals for all other employees. Effective September 1, 2015, the Plan sponsor negotiated a contract with the union employees to permanently freeze the benefits earned by union employees. As a result, there are no further benefit accruals for eligible participants and the Plan has discontinued admitting new participants.

Retirement benefits

The normal retirement benefit is based on a single life annuity, payable monthly for life, commencing on the normal retirement date (age 65). Normal monthly retirement benefits are calculated based upon one-twelfth of the sum of: (a) .9% of the highest average annual compensation earned during a 36-month period within a 120-month period of employment (up to a maximum of Covered Compensation, as defined in the Plan), multiplied by the Years of Service (up to 30); plus (b) 1.55% of such average annual compensation in excess of Covered Compensation, as defined in the Plan, multiplied by the Years of Service (up to 30); plus (c) .5% of such average annual compensation multiplied by the Years of Service in excess of 30. Other forms of payment (such as a joint and survivor annuity or a life annuity with payments guaranteed for a certain number of years) are based upon the normal retirement benefit, actuarially reduced. The Plan permits early retirement (at a reduced benefit) between ages 55–65, as well as late retirement. If the actuarially equivalent benefit is $5,000 or less, the benefit is automatically paid as a lump sum.

Death and disability benefits

The Plan provides for the payment of benefits to beneficiaries of participants who die prior to the commencement of retirement, if certain requirements have been met. The surviving spouse receives a monthly benefit, until his or her death, equal to 50% of the benefit the participant would have been entitled to if retirement had begun on the day prior to his or her death under a 50% joint and survivor pension. If a participant dies after the commencement of retirement benefit payments, benefits are paid in accordance with the participant’s election.

A participant who becomes disabled and is entitled to receive benefits under the Club’s long-term disability insurance program continues to accrue Years of Service and is entitled to receive a retirement benefit beginning at age 65. For the purpose of the benefit calculation, it is assumed that the compensation rate in effect at the time of disablement continued in effect until age 65.