Kelly Retirement Savings Plan - Merrill Lynch

[Pages:24]Kelly Retirement Savings Plan

Summary Plan Description

January 1, 2016

This is only a summary intended to familiarize you with the major provisions of the Plan. If you have any questions and before you make important decisions based on your understanding of the Plan from this summary, you should contact the Administrator at the address shown at the end of this summary.

This summary and the information contained herein are the property of Kelly Services, Inc. and are to be used solely in your capacity as an employee of Kelly Services, Inc. This summary is to be returned to your supervisor in the event you leave your employment. Duplication for any reason, disclosure to unauthorized persons, or use for any other purpose is strictly prohibited unless prior written approval is obtained from an officer of Kelly Services, Inc. Any violation of the above will be dealt with to the full extent of applicable laws. Federal law provides severe civil and criminal penalties for the unauthorized reproduction and/or distribution of copyrighted material. (Title 17, Sections 505, 508.)

? 2016 Kelly Services, Inc. All rights reserved.

Kelly Retirement Savings Plan

Summary Plan Description (January 1, 2016)

TABLE OF CONTENTS

Page

INTRODUCTION ................................................................................................................................................. 1 Your Plan Account........................................................................................................................................ 1 Sponsor Has Discretion to Interpret Plan ...................................................................................................... 1

ELIGIBILITY & PARTICIPATION ........................................................................................................................ 1 Eligibility....................................................................................................................................................... 1 Participation ................................................................................................................................................. 2 Transfers of Employment and Reemployment .............................................................................................. 3

EMPLOYEE CONTRIBUTIONS........................................................................................................................... 3 CATCH-UP CONTRIBUTIONS............................................................................................................................ 3 LIMITATIONS ON CONTRIBUTIONS.................................................................................................................. 3

Vested Interest in Your Contributions............................................................................................................ 4 How to Change, Suspend or Resume Your Contributions ............................................................................. 4 ROLLOVER CONTRIBUTIONS........................................................................................................................... 4 EMPLOYER CONTRIBUTIONS .......................................................................................................................... 5 Employer Matching Contributions ................................................................................................................. 5 Employer Discretionary Contributions ........................................................................................................... 5 Government Contract Contributions.............................................................................................................. 5 Eligibility to Participate in Employer Contributions......................................................................................... 5 Vested Interest in Employer Contributions .................................................................................................... 5 INVESTMENT OF PLAN CONTRIBUTIONS ....................................................................................................... 5 MAKING INVESTMENT ELECTIONS.................................................................................................................. 6 Investment Elections .................................................................................................................................... 6 Failure to Direct Investments ........................................................................................................................ 6 ERISA Section 404(c) Plan........................................................................................................................... 6 VALUING YOUR PLAN ACCOUNT .................................................................................................................... 6 LOANS FROM YOUR PLAN ACCOUNT............................................................................................................. 6 IN-SERVICE WITHDRAWALS ............................................................................................................................ 7 Overall Conditions and Limitations on Withdrawals ....................................................................................... 7 Withdrawals After Age 59? .......................................................................................................................... 7 Qualified Reservists Withdrawals of 401(k) Contributions......................................................................7 Hardship Withdrawals .................................................................................................................................. 7 Application for Hardship Withdrawals............................................................................................................ 8 FORFEITURE OF NON-VESTED AMOUNTS...................................................................................................... 8 Recrediting of Forfeited Amounts.................................................................................................................. 8 DISTRIBUTION OF YOUR PLAN ACCOUNT...................................................................................................... 9 Timing of Distribution.................................................................................................................................... 9 Suspension of Distribution ............................................................................................................................ 9 Distribution to Your Beneficiary..................................................................................................................... 9 Cash Outs of Plan Accounts and Consent to Distribution .............................................................................. 9 Direct Rollover Requirements ....................................................................................................................... 9 Required Distributions ................................................................................................................................ 10 FORM OF PAYMENT........................................................................................................................................ 10 YOUR BENEFICIARY UNDER THE PLAN........................................................................................................ 10 Beneficiary if You Are Married .................................................................................................................... 10 Beneficiary When There is No Designated Beneficiary ............................................................................... 10 Spousal Consent to Beneficiary Designation............................................................................................... 10

Direct Rollovers for Beneficiaries ................................................................................................................ 11 CLAIMS FOR BENEFITS .................................................................................................................................. 11 AMENDMENT AND TERMINATION OF THE PLAN.......................................................................................... 12

Plan Amendment........................................................................................................................................ 12 Plan Termination ........................................................................................................................................ 12 MISCELLANEOUS INFORMATION .................................................................................................................. 12 Plan Summary Does Not Create Employment Contract .............................................................................. 12 No Guarantees Regarding Investment Performance ................................................................................... 12 Administrative Expenses Paid from Trust.................................................................................................... 12 Assignment of Benefits............................................................................................................................... 13 Loss of Benefits.......................................................................................................................................... 13 Return of Contributions to Your Employer................................................................................................... 13 Tax Considerations .................................................................................................................................... 14 Contributions .............................................................................................................................................. 14 Distributions ............................................................................................................................................... 14 Income Tax Withholding ............................................................................................................................. 14 Company Taxation ..................................................................................................................................... 14 Electronic Transmission ............................................................................................................................. 14 MORE THINGS YOU SHOULD KNOW ............................................................................................................. 14 YOUR RIGHTS UNDER THE PLAN .................................................................................................................. 15 ADDITIONAL INFORMATION ........................................................................................................................... 17 DEFINITIONS.................................................................................................................................................... 18

Kelly Retirement Savings Plan

Summary Plan Description (January 1, 2016)

INTRODUCTION

Kelly Services, Inc. (the "Company") maintains the Kelly Retirement Savings Plan (the "Plan") to help you build financial security for your retirement. The Plan does this by providing you an opportunity to save for your retirement while simultaneously reducing your federal income tax liability (and possibly your state income tax liability) with your Employee Contributions, Catch-Up Contributions and any available Employer Matching Contributions, Employer Discretionary Contributions and Government Contract Contributions.

This Summary Plan Description (the "Summary") describes the Plan as in effect on January 1, 2016. The formal Plan documents govern the administration and interpretation of your rights under the Plan. You will see certain capitalized terms throughout the document. The capitalized terms are defined in the DEFINITIONS section at the end of the Summary.

Your Plan Account

You have your own Account under the Plan to hold all contributions you make to the Plan and any contributions the Company makes to the Plan on your behalf. Your Plan Account also holds any investment earnings on those contributions. Each type of contribution, if any, to the Plan will be separately accounted for as follows:

1. Employee Contributions 2. Catch-Up Contributions 3. Any Employer Matching Contributions 4. Any Employer Discretionary Contributions 5. Any Government Contract Contributions 6. Rollover Contributions

These Contributions will be discussed in detail on the pages that follow.

Sponsor Has Discretion to Interpret Plan

The Sponsor has the discretionary authority to interpret the provisions of the Plan, to determine your eligibility for benefits under the Plan and to resolve any disputes that arise under the Plan. The Sponsor may delegate this authority. Also, in the event of any difference or conflict between this Summary and the Plan, the Plan document will control.

ELIGIBILITY & PARTICIPATION

Eligibility

You are eligible for the Plan if you are an employee of the Company or a Participating Employer of the Plan, classified on its payroll records as a "technical", "assigned", "temporary", "contract" or "government contract" employee at a customer branch, division or location to which coverage under the Plan has been extended and paid through a temporary payroll (a "Covered Employee").

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You are not a Covered Employee if you are:

An individual with respect to whom an Employer does not withhold income or employment taxes and file Form W-2 (or any replacement Form) with the Internal Revenue Service because such individual has executed a contract, letter of agreement, or other document acknowledging his status as an independent contractor who is not entitled to benefits under the Plan or is otherwise not classified by his Employer as a common law employee, even if such individual is later adjudicated to be a common law employee of his Employer, unless and until the Employer extends coverage to such individual.

A Leased Employee.

Working on an assignment for a customer to whom the Company has not extended the Plan;

Subject to a collective bargaining agreement that does not provide for participation in the Plan;

Classified by the Company as a staff or regular employee;

Paid on a payroll system designated for staff or regular employees;

A Highly Compensated Employee;

Based in a Puerto Rican operation or location;

A non-resident alien who does not receive United States source income;

A non-United States citizen working in a foreign country; or

A (i) non-United States citizen (regardless of whether you perform services in the United States or abroad or for the Company or other Participating Employer of the Plan) and (ii) if you are performing services in the United States, you either (I) are on a formal international assignment in the United States or (II) continue to be covered under your home country government retirement system or your home country employer-provided retirement benefit program.

Note: In the event the employment status of any excluded employee is reclassified (including by any governmental agency or court) from that of an ineligible position to that of a Covered Employee, such reclassified employee nevertheless will not be considered a Covered Employee for purposes of the Plan and, therefore, will not be entitled to receive prior Employer Contributions under the Plan as a result of the reclassification.

Participation

As a Covered Employee, you will become a Participant of the Plan and therefore are eligible to make Employee Contributions and Catch-Up Contributions to the Plan and receive Employer Matching Contributions, Discretionary Employer Contributions and Government Contract Contributions under the Plan on the first day of the payroll period coinciding with or immediately following your date of hire (or, if later, the date you attain age 18).

Notwithstanding the foregoing, an Employee who performs services covered by a Prevailing Wage Law shall become an Eligible Employee for purposes of Government Contract Contributions as of the date he becomes a Covered Employee. You must enroll in the Plan. When you become eligible to participate in the Plan you should visit Benefits OnLine at benefits. or call 800-228-4015 to:

1. Choose the percentage of your Compensation you wish to contribute to the Plan; and

2. Specify the fund(s) in which you want your contributions invested. 2

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Transfers of Employment and Reemployment

If you transfer from other employment within the Company to employment as a Covered Employee, you will be eligible to begin participation in the Plan as of your transfer date (or later date) in accordance with the age requirements described above under ELIGIBILITY & PARTICIPATION.

If you have satisfied the requirements described above under ELIGIBILITY & PARTICIPATION and you are no longer on an assignment for, and you are no longer an employee of, the Company, you will be eligible to begin participation in the Plan if you are later reemployed as a Covered Employee as of your reemployment date. Otherwise, you will begin participation in the Plan at the time provided under ELIGIBILITY & PARTICIPATION.

If after you become a Participant of the Plan you transfer employment to another Participating Employer of the Plan, your current contribution elections will continue in effect without change and will apply to your Compensation paid from your new Participating Employer. However, if you transfer to a Related Company which is not a Participating Employer of the Plan, then you will no longer be a Covered Employee of the Plan and your contribution elections will be suspended. For information regarding your contribution elections, see EMPLOYEE CONTRIBUTIONS.

If you have questions regarding your transfer, contact Kelly's Benefits Department at 800-376-4964.

EMPLOYEE CONTRIBUTIONS

You may elect to contribute a percentage of your Compensation to the Plan on a pre-tax basis. Your election to make Employee Contributions to the Plan authorizes the Company to reduce the amount of your Compensation and to contribute that amount to the Plan. Your Compensation will be reduced and your Employee Contributions will begin as soon as administratively possible after the date your election is effective.

You may authorize the Company to withhold from your Compensation each payroll period as Employee Contributions from 2% to 50%, in whole percentage increments, of your Compensation. Keep in mind that your Employee Contributions are subject to a legal annual limit (i.e., $18,000 for 2016) for individual contributions and other limitations described in LIMITATIONS ON CONTRIBUTIONS.

You should make investment elections at the same time you make your contribution election. Investment elections are discussed in further detail in MAKING INVESTMENT ELECTIONS.

CATCH-UP CONTRIBUTIONS

If you are, or will be, age 50 or older as of the end of a calendar year, you may elect to make Catch-Up Contributions for that year up to the legal annual limit (i.e., $6,000 for 2016). Catch-Up Contributions are additional deferrals that are available if you are actively contributing to the Plan.

Your election to make Catch-Up Contributions to the Plan authorizes the Company to contribute that amount to the Plan. Your Catch-Up Contributions will begin after you have contributed the annual maximum for the year. To elect this option please contact Kelly's Benefits Department at 1-800-376-4964 and request the Catch-Up Contribution form. You can also access this form on Benefits OnLine at benefits.. This election cannot be made on-line.

LIMITATIONS ON CONTRIBUTIONS

If the Administrator determines that the amount you authorize the Company to withhold from your Compensation as Employee Contributions or Catch-Up Contributions would exceed the maximum amount permitted for the year, the Administrator will stop your Employee contributions when you have reached the annual maximum.

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You must notify the Administrator of the amount of any elective deferrals you make under any other plan that exceed these legal limits for the calendar year by March 1st of the next calendar year. The Plan will distribute the excess amount to you by April 15th.

Vested Interest in Your Contributions

You are always 100% vested in the value of your Employee Contributions and Catch-Up Contributions (including any investment gains or losses on them) in your Plan Account.

How to Change, Suspend or Resume Your Contributions

You may change, suspend or resume the amount of the contributions you make to the Plan at any time by making a new election under the procedures established by the Administrator. You may contact Merrill Lynch to make a new election by calling 800-228-4015 or accessing benefits.. When you elect to start, change or stop your payroll deductions, it is your responsibility to monitor each paycheck to ensure that the change has been implemented correctly and the proper deduction is being made. Please notify Kelly's Benefits Department at 800376-4964 immediately to request any corrections. Corrections generally cannot be made retroactively.

Please keep in mind that:

If you stop or reduce Employee Contributions or Catch-up Contributions, the amount you are no longer contributing is added to your W-2 earnings and is subject to regular payroll withholding taxes.

If you stop your contributions or reduce them to less than the applicable match level, your Employer Matching Contributions will be reduced accordingly.

ROLLOVER CONTRIBUTIONS

If you are a Covered Employee (even if not yet a Participant), you may elect to roll over qualified distributions from another 401(k) plan, a qualified 401(a) or 403(a) plan or a 403(b) plan (excluding after-tax contributions and Roth 401(k) contributions) into the Plan. The Internal Revenue Code governs whether a distribution from an eligible retirement plan qualifies for rollover into the Plan. The Administrator may require you to provide information to show that the distribution you want to rollover qualifies under the Internal Revenue Code. If the distribution qualifies, you may roll it over into the Plan through direct rollover or delivery to the Trustee. Any contributions that you rollover to the Plan must be delivered to the Trustee within 60 days of the distribution check. All of your Rollover Contributions will become subject to the terms and conditions of the Plan and will only be distributable to you under the terms of the Plan. Rollover Contributions are not eligible for Hardship Distributions. You are always 100% vested in the value of your Rollover Contributions (including any investment gains or losses on them) in your Plan Account.

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