2018 Aflac Incorporated Benefits Guide

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enrolled, 6 percent of your compensation other than annual
bonuses will be contributed to the 401(k) Plan on a pretax basis.
If you don’t want to contribute to the 401(k) Plan, if you want to
contribute at a rate other than 6 percent, if you want to make
contributions from your bonuses or if you want to make Roth
contributions, you must contact T. Rowe Price by telephone
at 800-922-9945 or log on to . You
have the right to elect not to make automatic contributions
or to change your pretax and/or Roth deferral amount under
the 401(k) Plan at any time, and any changes you elect will be
implemented as soon as administratively feasible after your
directions are received.
The 401(k) Plan also includes an automatic increase feature to
help you get the most out of the 401(k) Plan’s retirement savings
opportunity. Under this feature, unless you elect otherwise, each
year in January (i) your pretax contribution rate will be increased
by 1 percent, unless you are already contributing either 0
percent or more than 5 percent as pretax contributions; and (ii)
your Roth contribution rate will be increased by 1 percent, unless
you are already contributing either 0 percent or more than 5
percent as Roth contributions.
Like other contributions you make to the 401(k) Plan, your
automatic contributions will be eligible for Company matching
contributions. The Company will match, at 50 cents on the
dollar, the first 6 percent of your compensation you contribute to
the 401(k) Plan as either pretax or Roth contributions.
The Company will also make nonelective contributions for
some participants under the 401(k) Plan, equal to 2 percent of
the participant’s eligible compensation. In order to receive the
nonelective contributions, you must not be eligible for future
accruals in the Aflac Incorporated Pension Plan, and you must
have reached age 21 and completed one year of service, which
generally is a 12-month period of employment beginning on your
hire date. Nonelective contributions will begin on the first Jan. 1
or July 1 when you meet these eligibility requirements. You do
not have to make pretax or Roth contributions to receive the
nonelective contribution.
The amount of pretax, Roth, matching, and nonelective
contributions made to your 401(k) Plan account will be
determined based on your compensation, as defined in the
401(k) Plan. Compensation includes amounts paid to you that
are reported on IRS Form W-2, and before-tax elective deferrals
made under the 401(k) Plan or under certain other benefits
plans, but excludes reimbursements, expense allowances,
fringe benefits, moving expenses, gifts, deferred compensation,
welfare benefits and, for temporary employees, amounts paid to
you while you are not eligible for the 401(k) Plan. Compensation
under the 401(k) Plan is limited by the IRS each year. For 2017,
the limit was $270,000.
INVESTMENT AND DEFAULT- FUND PROVI S IONS
You may direct the investment of your 401(k) Plan account
among an array of available investment funds. You may change
your investment elections at any time. Your investment elections
will continue to apply until you change them. If you don’t make
an investment election, your 401(k) Plan account will be invested
in a default fund. Any distribution checks over $10 that remain
outstanding for more than 180 days will be deposited back
into your account and invested in the 401(k) Plan’s default
investment fund.
The current default investment fund under the 401(k) Plan
is the T. Rowe Price Retirement Date Fund with the target
date closest to the year in which you turn 65. A description
of the default fund’s investment objectives, risk and return
characteristics, and fees and expenses is available from
T. Rowe Price. If you need additional information about the
default fund or any other investment funds available under the
401(k) Plan, please call T. Rowe Price at 800-922-9945 or go
to .
DIVERS I FICAT ION RIGHTS
One of the funds into which you may invest through your 401(k)
Plan account is the Aflac Incorporated Stock Fund (the “Aflac
Stock Fund”), which is invested in shares of Aflac common
stock. Because you decide how to invest all amounts in your
401(k) Plan account, you are not required to keep any portion
of your 401(k) Plan account invested in the Aflac Stock Fund.
As stated above, you may change the way your current and/or
future contributions (including Company matching contributions)
are invested at any time by contacting T. Rowe Price at
800-922-9945 or going to .
IMPORTANCE OF DIVERSI FICAT ION
A well-balanced and diversified portfolio is important to the
long-term financial security of you and your beneficiaries. Broadly
defined, diversification means having an investment portfolio
mixed among different asset classes, such as stocks, bonds and
cash. Funds invested in the stock of a single company, such as
the Aflac Stock Fund, are subject to greater risk than diversified
funds. Most financial planners agree that having more than 20
percent of your total investment portfolio in any individual stock
results in unnecessary risk-taking and would not be considered
adequate diversification. You may want to take this opportunity
to evaluate your portfolio allocations.
How to Apply for
Aflac Coverage