Sallie Mae 2015 Annual Report Download - page 210

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Savings Plan Account that is vested and that is not distributed under this early distribution provision
will be distributed in accordance with the general distribution rule in this Plan.
For purposes of this Section 7.4, a substantial unforeseen financial hardship means a severe
financial hardship to the Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, the Participant’s beneficiary, or of a Participant’s dependent (as defined in
Code Section 152, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B)); loss of the
Participant’s property due to casualty (including the need to rebuild a home following damage to a
home not otherwise covered by insurance, for example, not as a result of a natural disaster); or
similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant. Examples of events that may constitute a substantial unforeseen financial
hardship include the imminent foreclosure of or eviction from the Participant’s primary residence;
the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs
of prescription drug medication; and the need to pay for the funeral expenses of the Participant’s
spouse, the Participant’s beneficiary, or the Participant’s dependent (as defined in Code Section
152, without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)). Whether a Participant is
faced with a substantial unforeseen financial hardship will be determined based on the relevant facts
and circumstances of each case, but, in any case, a distribution on account of a substantial unforeseen
financial hardship may not be made to the extent that such emergency is or may be relieved:
(i) through reimbursement or compensation by available insurance or otherwise, (ii) by liquidation
of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe
financial hardship or (iii) by cessation of deferrals under the Plan.
The amount available for distribution of amounts deferred under the Plan on account of a
substantial unforeseen financial hardship shall be limited to the amount reasonably necessary to
satisfy the emergency need (which may include amounts necessary to pay any Federal, state, local,
or foreign income taxes or penalties reasonably anticipated to result from the distribution), and shall
be determined in accordance with Code Section 409A and the regulations thereunder. In all events,
distributions due to a substantial unforeseen financial hardship shall be made solely in accordance
with the provisions of Code Section 409A and related official guidance.
7.5. Payment will be made to the Participant, or in the event of his death, his beneficiary.
In no event may the Participant or, if applicable, the beneficiary, elect to defer receipt of payment
under this Supplemental Savings Plan once such payment is due. Additionally, except as provided
in Section 7.4 above, no amounts credited to a Supplemental Savings Plan Account will be subject
to withdrawal while the Participant is employed by the Corporation. Amounts payable under the
Supplemental Savings Plan will be reduced by all amounts required to be withheld under appropriate
State or Federal law.
7.6. For purposes of this Supplemental Savings Plan, the Participant’s beneficiary will
be deemed to be the same person(s) as designated by the Participant under the Qualified 401(k)
Plan unless the Participant elects otherwise by designating a different person or persons on such
form and in such manner as the Administrator may specify.