PNC Incentive Savings Plan (ISP) 401(k) - Summary Plan Description Effective Jan. 1, 2017, Updated Jan. 1, 2018 - Alight

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PNC Incentive Savings Plan
(ISP) 401(k)
Summary Plan Description
Effective Jan. 1, 2017, Updated Jan. 1, 2018
INCENTIVE SAVINGS PLAN

INTRODUCTION                                            Resources For You
This booklet is the Summary Plan Description            If you have questions about the ISP 401(k) or
(SPD) of The PNC Financial Services Group, Inc.         would like to request a printed copy of the SPD
Incentive Savings Plan (ISP) 401(k) or Plan,
                                                        or the Plan document, call the HR Service Center
and reflects the terms of the Plan effective
Jan. 1, 2017 and updated Jan. 1, 2018. An SPD           at 877-968-7762, option 1. Representatives are
is intended to summarize the features of a plan         available from 9 a.m. to 5 p.m. ET weekdays.
in clear, understandable and informal language          However, please keep in mind that only the Plan
for participants. It’s important to review the entire
                                                        Administrator or its delegate is authorized to make
SPD because if you take parts out of context,
                                                        determinations regarding eligibility for benefits
you may not have a complete or accurate
understanding of the ISP 401(k).                        under the Plan.

The ISP 401(k) is very detailed, and not every rule     Online access: To access your ISP 401(k)
that may apply to you can be summarized here.           account, make any changes to your contribution
This SPD applies to general situations and may          percentage or investments, or use the retirement
not apply to your particular circumstances. Full        planning tools, visit the applicable website:
details of the ISP 401(k) can be found in the
official Plan document. If there is a conflict          !   Current employees: Go to Pathfinder, the
between this SPD and the Plan document,                     HR portal, from the PNC Intranet or directly
the Plan document will control.                             to www.pncpathfinder.com. Expand the
                                                            Retirement & Investments panel and choose
This SPD was prepared for eligible employees
who are active participants in the ISP 401(k) on            the appropriate button.
and after Jan. 1, 2017. If your employment ended        !   Employees on a long-term leave, former
before that date, or if you accrued a benefit under         employees and beneficiaries: Go to Your
a prior employer’s plan that was merged into the            PNC at www.yourpnc.com. (Your user ID
ISP 401(k), different provisions may apply to you.
                                                            and password are required.)
Nobody speaking on behalf of the ISP 401(k)
or the employer can alter the terms of the ISP          Both websites are available 24 hours a day
401(k). Neither this SPD nor the Plan document          Monday – Saturday and after 1 p.m. ET Sunday.
creates a contract of employment between the
employer and any employee. PNC, as Plan
Sponsor, reserves the right to amend or terminate             See pages 22-24 for important information
the ISP 401(k) in its discretion at any time.
                                                               about the claims and appeals procedures
                                                              under the ISP 401(k), including information
                                                               about the statute of limitations applicable
                                                                to claims for benefits and legal actions.

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INCENTIVE SAVINGS PLAN

TABLE OF CONTENTS
INTRODUCTION                                2   Restricted Employees and PNC Insider
Resources for You                           2     Trading Rules                                             14
                                                Risks                                                       14
OVERVIEW                                    4
                                                WITHDRAWALS                                                 15
ELIGIBILITY                                 4   After-Tax/Prior Profit-Sharing Withdrawals                  15
Salaried Employees                          4   Rollover Account Withdrawals                                15
Hourly Employees                            4   Age 59½ Withdrawals                                         15
Employees Who are Not Eligible              4     Age 59½ Withdrawals if You
Eligibility if You are Rehired              4     Have a Roth Account                                       15
ENROLLMENT                                  5   Hardship Withdrawals                                        16
Automatic Enrollment                        5     The Amount You Can Withdraw                               16
 Salaried Employees                         5     Restrictions After a Hardship Withdrawal                  16
 Hourly Employees                           5   TAKING A LOAN                                               17
How to Enroll                               5   The Amount You Can Borrow                                   17
Naming a Beneficiary                        5   Requesting a Loan                                           17
CONTRIBUTIONS                               6   Number of Outstanding Loans Permitted                       17
Your Elective Contributions                 6   Repaying Your Loan with Interest                            18
 The Difference Between Pretax and               Default                                                    18
    Roth Contributions                      6    If You Leave PNC                                           18
 Automatic Enrollment Contributions         6   RECEIVING A DISTRIBUTION                                    18
 Automatic Increase Option                  7   When You Can Receive a Distribution                         18
 Catch-Up Contributions                     7   If Your Account Balance Is $5,000 or More                   18
 IRS Limits                                 7   If Your Account Balance Is Less than $5,000                 19
 Definition of Compensation                 7   Electing a Rollover                                         19
 Changing Your Contribution Percentage      8   If You Die                                                  19
 In-Plan Roth Conversion                    8   Qualified Military Service                                  20
PNC Matching Contributions                  8   Returning to Work After Benefits Start                      20
 Minimum Matching Contribution              8
 Annual True-up Matching Contribution       9   TAXES AND WITHHOLDING                                       20
Rollover Contributions                      9   Paying Taxes on Your ISP 401(k)
                                                  Accounts (non-Roth)                                       20
VESTING                                     9   In-Kind Distribution of PNC Common Stock                    21
Vesting Service                            10   Paying Taxes on Roth Accounts                               21
Break in Service                           10
 Special Situations                        10   LIMITATIONS ON BENEFITS                                     21
Forfeitures                                11   Non-Discrimination Requirements                             21
INVESTING YOUR ACCOUNT BALANCE             11   BENEFIT CLAIMS                                              22
The ISP 401(k) Investment Funds            11   Filing a Claim                                              22
  Making Your Investment Elections         11   Claims Appeal Process                                       22
  If You Don’t Make Investment Elections   12   Legal Actions, Venue
  Changing Your Investment Choices         12     and Statute of Limitations                                23
Professional Investment Advice             12   ADMINISTRATIVE AND
  How to Access                            13   LEGAL INFORMATION                                           24
  Fees                                     13
PNC Stock Fund                             13   YOUR RIGHTS UNDER THE EMPLOYEE
  PNC Stock Fund Dividend Election         13   RETIREMENT INCOME SECURITY
Review Your Account Regularly              14   ACT OF 1974 (ERISA)                                         26
Rebalancing Your Account                   14
Transfer Restrictions                      14

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INCENTIVE SAVINGS PLAN

OVERVIEW                                                Employees Who are Not Eligible

Set up as a 401(k) plan, the Incentive Savings          You are not eligible to participate in the ISP
Plan (ISP) 401(k) makes it easy to save for             401(k) if you are:
your future.                                            ! a leased employee, intern, temporary employee
! Your elective contributions are conveniently            or an independent contractor;
  deducted from your pay.                               ! covered by a collective bargaining agreement,
! You can save with pretax or Roth (after-tax)            unless the agreement provides for your
  dollars.                                                participation in the ISP 401(k);
! Once you meet the eligibility requirements            ! an employee who is not paid through PNC’s
  for the company match, PNC matches your                 U.S. payroll system;
  elective contributions dollar-for-dollar on the       ! receiving only a pension or severance pay from
  first 4 percent of your eligible compensation           the employer; or
  you contribute each pay period.                       ! a director of the employer who is not an officer
! You choose to invest among a wide variety of            or otherwise an employee of the employer.
  professionally managed investment funds.              Eligibility if You are Rehired
! You do not pay taxes on your investment
  earnings, if any, until you withdraw from             If you are eligible to participate in the ISP 401(k),
  your account.                                         stop working for the employer and are later
                                                        rehired, you can begin contributing to the ISP
! You can make additional pretax catch-up               401(k) as soon as administratively possible after
  contributions if you will be at least age 50
  by the end of the applicable year.                    your rehire date.
                                                        Regardless of your participation status when your
ELIGIBILITY                                             employment ended, if you are rehired you must
                                                        complete six months of service after your rehire
Eligible employees of PNC and its participating         date to be eligible to receive PNC matching
affiliates (collectively referred to as the employer)   contributions.
can participate in the ISP 401(k) by making
elective contributions. The eligibility requirements
are described below. Note: Once you meet the
eligibility requirements, you are also subject to the
automatic enrollment rules described on page 5.
Salaried Employees
If you are a salaried employee (including a
reduced schedule professional, or RSP) of the
employer, you are eligible to enroll in the ISP
401(k) immediately upon being hired, and
your elective contributions begin as soon as
administratively possible.
Hourly Employees
Generally, if you are an hourly employee of the
employer, you are eligible to enroll in the ISP
401(k) upon your completion of one year of
service.
Your elective contributions begin as soon as
administratively possible after you meet the
service requirement and enroll.

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INCENTIVE SAVINGS PLAN

ENROLLMENT                                               Naming a Beneficiary

Automatic Enrollment                                     Upon enrollment in the ISP 401(k), you should
                                                         name a beneficiary to receive your ISP 401(k)
Salaried Employees                                       account balance if you die before the balance
If you are hired as a salaried employee on or            has been paid out.
after Jan. 1, 2015, you will be automatically
enrolled in the ISP 401(k) unless you actively           If you are married, federal law states that your
elect to opt out within 30 days of your hire date.       spouse is your beneficiary. If you designate
                                                         someone other than your spouse as your
Contributions will start with the first pay cycle that   beneficiary, a Beneficiary Authorization form will
begins after the 30-day active election window.          automatically be generated and mailed to your
Hourly Employees                                         home address on file. You must complete the
If you become newly eligible to participate in the       form, have your spouse’s signature notarized
ISP 401(k), or if you are rehired in 2015 or after       and return it to the HR Service Center.
and were previously eligible to participate in the       Note: If your spouse is your designated
ISP 401(k), you will be automatically enrolled in        beneficiary and you and your spouse divorce,
the ISP 401(k). If you don’t want to participate in      your spouse will automatically be removed as
the ISP 401(k), you must actively elect to opt out       your beneficiary effective the date of the divorce.
within 30 days after the date you become eligible        Your designated contingent beneficiaries will
(see Hourly Employees and Eligibility if You Are         automatically become your beneficiaries, unless
Rehired on page 4).                                      you make a different election. If you did not
Contributions will start with the first pay cycle        designate contingent beneficiaries and you
beginning after the 30-day active election window.       do not make a new beneficiary election, your
                                                         ISP 401(k) account will be paid as though you did
How to Enroll                                            not name a beneficiary, as described on page 6.
Once eligible (as described on page 4), you can          If you wish to designate your ex-spouse as your
also choose to actively enroll in the ISP 401(k) in      beneficiary, you must complete a new Beneficiary
one of two ways:                                         Authorization form.
!   Go to Pathfinder from the PNC Intranet or            If you are unmarried, you may name anyone
    directly to www.pncpathfinder.com. Expand            you choose as your beneficiary. You may also
    the Retirement & Investments panel and               name one or more primary and one or more
    choose the appropriate button.                       contingent beneficiaries, and you may change
                                                         your beneficiary at any time.
!   Call the HR Service Center at 877-968-7762,
    option 1. Representatives are available from         To manage your beneficiary designation, access
    9 a.m. to 5 p.m. ET weekdays.                        your ISP 401(k) account online (as described on
                                                         page 2).
Your election will be processed as soon as
administratively possible.                               If you do not name a beneficiary, your named
                                                         beneficiary dies before you, or your beneficiary
                                                         cannot be located, your ISP 401(k) account is
                                                         paid in the following order when you die:
                                                         ! Your surviving spouse
                                                         ! Your surviving children
                                                         ! Your surviving parents
                                                         ! Your surviving brothers and sisters
                                                         ! Your estate

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INCENTIVE SAVINGS PLAN

CONTRIBUTIONS                                         But there’s one important difference — how and
                                                      when your contributions and earnings are taxed:
Your Elective Contributions
                                                                                Your Contributions
You may elect to contribute between one percent                     Pretax                           Roth After-tax
and 75 percent of your eligible compensation to
                                                       • No tax on contributions now        • Contributions taxed now
the ISP 401(k) each pay period. There are two          • Earnings grow tax-free             • Earnings grow tax-free through
types of contributions you may make to the Plan:           through the plan’s                 the plan’s investment options
! Pretax contributions                                 •
                                                           investment options
                                                           Upon distribution,
                                                                                            • Upon distribution, contributions
                                                                                              are tax-free; earnings are also
! Roth (after-tax) contributions                           contributions and                  tax-free if you meet certain
                                                           earnings are taxed                 criteria*
Contributions must be made in one percent
increments. The percentage you elect is deducted       Note: PNC matching contributions and earnings on those
                                                       contributions are always taxable when you take the money
from your pay on a pretax basis. Once you elect        out of the plan.
to make contributions to the ISP 401(k), your
election remains in effect until you change it        *Earnings remain tax-free if upon distribution you are at least
                                                      age 59½ and have had money in the Roth 401(k) for at least five
or you are no longer eligible to participate in       years, or in case of death or disability (as long as the five-year
the Plan.                                             requirement has been met).

Your contributions are deposited into your ISP        Automatic Enrollment Contributions
401(k) account each pay period and then invested      If you are automatically enrolled in the ISP
in the funds you select (see Automatic Enrollment     401(k) as described in Automatic Enrollment
Contributions on this page). You are always fully     on page 5, your contributions will be pretax and
vested in the value of your elective contributions    your contribution percentage will be set at four
to the ISP 401(k), as adjusted for investment         percent of eligible compensation. Your automatic
earnings or losses.                                   contributions will start with the first pay cycle
The amount you can contribute to the ISP 401(k)       after your 30-day active election window
each year is limited by the Internal Revenue          (see Enrollment on page 5). Automatic
Service (IRS) (see IRS Limits on page 7).             enrollment contributions are considered
                                                      elective contributions under the Plan.
The Difference Between Pretax and
Roth Contributions                                    You may make changes to your future
Pretax contributions and Roth contributions have      contribution percentage, including electing
a lot in common. Both types of contributions to the   a zero percent contribution, at any time.
ISP 401(k):                                           However, contributions already made to
! Can be made by easy payroll deduction.              the ISP 401(k) will not be refunded.
! Are eligible for PNC matching contributions         If you do not make an active investment
   (to a maximum four percent of pay combined).       election, your automatic contributions will be
! Can be invested in the same range of funds.         invested in the Qualified Default Investment
                                                      Alternative (QDIA) (see If You Don’t Make
                                                      Investment Elections on page 12).

                                                                                Incentive Savings Plan SPD | Revised October, 2018   6
INCENTIVE SAVINGS PLAN

Automatic Increase Option                               annual limits in the fourth quarter for the next
To help you meet your retirement savings goal,          calendar year.
the ISP 401(k) includes an optional feature
                                                        Following are brief descriptions. If you reach the
that allows you to elect an automatic increase
                                                        annual deferral limit during the year, your elective
to your contribution percentage each year until
                                                        contributions and PNC matching contributions will
you reach a target contribution rate you set.
                                                        stop for the remainder of the year. Note that you
You can choose to have an automatic increase
                                                        may be eligible to make catch-up contributions
apply to your pretax and/or Roth contributions.
                                                        (see Catch-Up Contributions on this page).
You may start, change or cancel this option
at any time (see How to Enroll on page 5).              See Annual True-up Matching Contribution
Note: You are subject to the ISP 401(k) limits          on page 9 for information about how you
explained above and the IRS contribution limits         could receive additional PNC contributions
(see IRS Limits on page 7).                             after reaching an IRS limit. Also see
                                                        Non-Discrimination Requirements on
Catch-Up Contributions
                                                        page 21 for important information about
You are eligible to have additional elective
                                                        non-discrimination requirements that may
contributions called catch-up contributions
                                                        further limit contributions for employees who
deducted from your pay on a pretax basis if you
                                                        are defined as highly compensated employees
are at least age 50 by the end of the calendar
                                                        under the Internal Revenue Code.
year. The maximum catch-up contribution
permitted is subject to IRS limits — the 2017 and       ! Annual deferral limit: This is the maximum
2018 limit for catch-up contributions is $6,000.           amount of your elective contributions to
                                                           the ISP 401(k), including pretax and Roth
You elect the amount of catch-up contributions             after-tax contributions combined. For 2017, this
you want deducted from your pay in whole dollar            limit is $18,000; for 2018 the limit is $18,500.
amounts each pay period, up to the allowable
limit. Once you elect your catch-up contribution,
                                                        ! Annual compensation limit: This is the
                                                           maximum compensation amount considered
your election remains in effect until you change it        eligible for matching contributions to the
or you are no longer eligible to participate in the        ISP 401(k). For 2017, the limit is $270,000;
ISP 401(k).                                                for 2018, the limit is $275,000.
Catch-up contributions generally are treated the        ! Defined contribution limit: This is the sum
same as regular contributions to the ISP 401(k),           of your elective contributions, company
except that they are not eligible for PNC matching         matching contributions and any forfeitures
contributions and they are not subject to other            for any year. For 2017, this limit is $54,000;
limits that normally apply to elective contributions       for 2018, the limit is $55,000.
(see IRS Limits below).
                                                        You can find the current year’s IRS limits on the
If you think your regular elective contributions will   applicable website (as described on page 2) or by
be subject to one or more of the limits, you may        calling the HR Service Center, option 1. Also see
still be permitted to make catch-up contributions,      Catch-Up Contributions on this page.
provided you meet the eligibility requirements.
                                                        Definition of Compensation
Note: If you elect catch-up contributions and
                                                        Generally, compensation for purposes of the
your regular elective contributions are not, in
                                                        ISP 401(k) means the total wages, salaries,
fact, limited, your catch-up contributions are not
                                                        commissions, fees and other amounts you
considered to be regular elective contributions
                                                        receive for services provided to the employer.
and, as a result, will remain ineligible for PNC
                                                        Compensation includes amounts you contribute
matching contributions.
                                                        to the ISP 401(k) and other PNC plans, but does
IRS Limits                                              not include employer contributions to the ISP
The ISP 401(k) is subject to several limits from        401(k) or other plans.
the IRS that may affect your elective contributions
                                                        Compensation also includes certain variable
and account. The IRS typically announces these
                                                        pay, such as annual bonus amounts. For most

                                                                           Incentive Savings Plan SPD | Revised October, 2018   7
INCENTIVE SAVINGS PLAN

participants, compensation includes 100 percent        You are eligible for matching contributions starting
of variable pay up to $25,000, and 50 percent of       the first day of the month after you complete
the next $225,000 of variable pay.                     six consecutive months of service. If you have
                                                       already completed six consecutive months of
Special limits and/or exclusions apply with respect
                                                       service (as of your last hire date) when you
to participants who are members of the Corporate
                                                       start participating in the ISP 401(k), you are
Executive Group (CEG).
                                                       immediately eligible for matching contributions.
The IRS limits the amount of compensation that
                                                       Minimum Matching Contribution
may be taken into account each year under the
                                                       PNC will contribute a minimum matching
ISP 401(k) (see Annual compensation limit under
                                                       contribution of $2,000 if you contribute at least
IRS Limits on this page and Non-Discrimination
                                                       four percent of your eligible compensation every
Requirements on page 22).
                                                       pay period during the year. The minimum match
Changing Your Contribution Percentage                  is prorated for part-time employees, those eligible
You may generally change your contribution             for company matching contributions for less than
percentage or stop contributions at any time.          a full year and employees on a leave of absence.
To make a change, stop contributing or re-enroll,      You must be employed by PNC at the end of the
access the applicable website (as described            year in order to be eligible for the minimum match
on page 2) or call the HR Service Center at            for that year. For purposes of this provision,
877-968-7762, option 1. Contribution changes           the “end of the year” is defined as:
take effect as soon as administratively possible.      ! Prior to Jan. 1, 2018: Dec. 31 of the
Note: Contributions already made to the ISP              applicable year
401(k) will not be refunded.                           ! On or after Jan. 1, 2018: the last business
In-Plan Roth Conversion                                  day in December of the applicable year
Beginning Jan. 1, 2017, you may convert all or         If you first become match-eligible after the start of
some of your current pretax balance to Roth            the calendar year, you are eligible to receive the
(after-tax), if desired. When you access your          minimum match for the year — on a prorated
account through Pathfinder, you’ll be able to          basis to reflect the number of months you are
select In-Plan Roth Conversion as an available         match-eligible during the calendar year — as long
transaction. If you’re interested in an in-plan        as you:
conversion, the system will walk you through the
process and show you the potential tax impact
                                                       ! enroll in the ISP 401(k) within 30 days of
                                                          becoming an eligible employee;
before you make your election. Any amount you
choose to convert will be subject to taxes in the      ! make elective contributions of at least
                                                          four percent each pay period for the remainder
year you complete the conversion. Because taxes
                                                          of the calendar year; and
won’t be withheld from the converted amount,
you’ll need to pay the taxes from another source       ! are employed by PNC at the end of the year,
when you file your tax return for that year. In-plan      as defined above.
conversions can be requested up to two times per       If your elective contributions are suspended
calendar year.                                         because of a hardship withdrawal, the $2,000
PNC Matching Contributions                             minimum match is prorated based on the number
                                                       of per-pay-period contributions you made during
If you make elective contributions to the ISP          the year.
401(k), PNC makes matching contributions to
your ISP 401(k) account once you are eligible as
described below. Each pay period, PNC matches
dollar-for-dollar the first four percent of eligible          PNC makes matching contributions to
compensation you contribute. This includes any
                                                              your ISP 401(k) account once you meet
combination of pretax and/or Roth contributions.
Catch-up contributions are not eligible for the                 the match eligibility requirements.
matching contribution.

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INCENTIVE SAVINGS PLAN

 EXAMPLE: Minimum Matching Contribution                   !   On or after Jan. 1, 2018: the last business
                                                              day in December of the applicable year
   Jane is a PNC employee who:
   ! earns $30,000 during the calendar year;              If you first become match-eligible after the start
   ! is eligible for company matching contributions       of the calendar year, you are eligible to receive
     for the full year; and                               the true-up match for the year prorated to reflect
   ! contributes 4% to the ISP 401(k) every pay period.   the number of months you are match-eligible
   $30,000 x 4% = $1,200 Jane’s contribution
                                                          during the calendar year, provided that you
                                                          are employed by PNC “at the end of the year,”
                                                          as described earlier in this section.
   Every pay period, PNC matches Jane’s 4% by             Rollover Contributions
   contributing an additional 4% to her account.
   $1,200 matching contributions from PNC                 You may be able to roll over your balance from
                                                          another eligible retirement plan into the ISP
   Because Jane meets the minimum match
                                                          401(k). Balances from qualified retirement plans
   requirements, including being employed by PNC          [such as 401(k) and pension plans, 403(b) plans,
   at the end of the year, PNC contributes another        457 plans and certain individual retirement
   $800 to her account after the end of the year.         accounts (IRAs)] may be eligible for rollover.
   $800 additional matching contribution from PNC
                                                          If you are eligible to take a lump sum distribution
                                                          of your PNC Pension Plan vested balance, you
   The total PNC contribution to Jane’s ISP 401(k)        may elect to roll it into the ISP 401(k).
   account is $2,000 for the year.
   $1,200 regular matching contributions
                                                          You may make a rollover contribution before you
   + 800 additional matching contribution                 meet the eligibility requirements to participate in
   $2,000 total minimum matching contribution             the ISP 401(k). You must provide proof that your
                                                          distribution is eligible to be rolled over into the
Annual True-up Matching Contribution                      ISP 401(k).
Because PNC makes matching contributions on
a per-pay basis, it is possible that an individual        The following rules apply:
could reach the IRS limits before receiving the full      ! Rollover contributions are not matched under
company match for the year. If you reach the                the ISP 401(k);
annual deferral limit (see IRS Limits on page 7)          ! The ISP 401(k) does not accept rollover
before the end of the calendar year and your                contributions in stock shares or units; and
elective contributions (other than catch-up               ! The ISP 401(k) cannot accept rollover
contributions) stop, PNC matching contributions             contributions from a Roth IRA.
also stop.
                                                          To request a rollover, go to the applicable website
At the end of each year, PNC reviews each                 (as described on page 2) or call the HR Service
participant’s match-eligible contributions and            Center at 877-968-7762, option 1.
eligible compensation during the year to
determine if the full amount of the company
match was made. PNC will make an additional
                                                          VESTING
                                                          To be vested means you have a nonforfeitable
true-up matching contribution to the accounts of
                                                          right to receive a benefit from the ISP 401(k).
any participants who have not received the full
                                                          You are always 100 percent vested in the value
amount of the company match to which they are
                                                          of your elective contributions (including catch-up
entitled for the year. You must be employed by
                                                          contributions) and rollover contributions to the
PNC at the end of the year in order to be eligible
                                                          ISP 401(k).
for the true-up matching contribution for that year.
For purposes of this provision, the “end of the               You are always 100 percent vested in the value
year” is defined as:                                          your elective contributions (including catch-up
! Prior to Jan. 1, 2018: Dec. 31 of the                         contributions) and rollover contributions
   applicable year                                                      to your ISP 401(k) account.

                                                                              Incentive Savings Plan SPD | Revised October, 2018   9
INCENTIVE SAVINGS PLAN

If you first became an employee of the employer      the length of your break does not exceed the
before Jan. 1, 2010, you are always 100 percent      greater of:
vested in the value of your matching contributions   ! the vesting service you earned before the
(including any minimum matching contributions or       break; or
true-up matching contributions).
                                                     !   five years.
If you first became an employee of the employer
                                                     Otherwise, the vesting service you earned
on or after Jan. 1, 2010, you become 100 percent
                                                     before your break in service does not count.
vested in the value of your matching contributions
when you complete three years of vesting service.    If your employment with the employer ends
                                                     and you are rehired within 12 months, for
Your matching contributions also become
                                                     vesting purposes only, you are not considered
100 percent vested if, while you are an employee,
                                                     to have had a break in service and your service
you reach age 65, become totally disabled or die.
                                                     is counted continuously through your absence.
Amounts transferred to the ISP 401(k) as a           You would still be subject to the six-month
result of certain plan mergers become vested         wait to receive the matching contributions.
in accordance with the provisions applicable to
                                                     If your break in service began before
those plans. For more information, call the HR
                                                     Jan. 1, 2010, the break in service is handled
Service Center at 877-968-7762, option 1.
                                                     under the terms of the ISP 401(k) or a prior
Minimum matching contributions are subject to        plan in effect when your break began. If you
the same vesting rules. However, the minimum         have questions, call the HR Service Center
matching contributions made for the 2011, 2012,      at 877-968-7762, option 1.
2013 and 2014 plan years were fully vested
                                                     Special Situations
immediately, regardless of whether your other
                                                     Regardless of how long you are absent from
matching contributions were vested.
                                                     employment with PNC, you are not considered
Vesting Service                                      to have had a break in service as a result of:
Generally, vesting service equals the number of      ! an absence due to a total disability;
years and months between your date of hire (or       !   an approved leave of absence followed by a
rehire) and the day you stop working for PNC and         resumption of employment or retirement with
any related employers.                                   the employer’s consent; or
You also may receive vesting service for years       !   an absence for military service granted by the
of service earned under certain plans that were          employer or required by law, if you return to
merged into the ISP 401(k), and service with prior       work within 90 days of release from active duty
employers.                                               (or within the time your right to reemployment is
                                                         protected by law, if longer).
Break in Service
                                                     The consecutive 12-month period ending on the
A break in service is a period of 12 or more
                                                     first anniversary of the first day of such absence
consecutive months during which you do not
                                                     does not constitute a break in service if you are
complete one hour of service.
                                                     absent from work due to any of the following:
If you leave your employment with the employer       ! your pregnancy;
and all related employers and you are later
rehired, special rules apply depending on whether    !   the birth of your child;
you have had a break in service.                     !   the placement of a child with you in connection
                                                         with the adoption of such child by you; or
If you are vested in your matching contributions
when a break in service begins, you remain           !   your need to care for such child for a period
vested when you return to work for the employer.         beginning immediately after such birth or
If you are not vested when a break in service            placement.
begins, the vesting service you earned before the
break is counted when you return to work only if

                                                                         Incentive Savings Plan SPD | Revised October, 2018   10
INCENTIVE SAVINGS PLAN

Forfeitures                                            The list of investment funds may change
                                                       periodically as determined by the Plan’s
You forfeit any PNC matching contribution
                                                       Administrative Committee. The Committee meets
amounts in which you are not vested when your
                                                       quarterly to review investment performance as
employment ends.
                                                       well as other aspects of fund management. If it is
If you forfeit the matching contribution, the amount   decided that a new fund will be added or a current
you forfeit is restored if you return to work as an    fund discontinued, you will be notified. If the
eligible employee before you incur a five-year         change requires a blackout period during which
break in service. However, if you received a           trading is not permitted, you will be notified of the
distribution of the vested portion of your ISP         timing and details of the blackout period.
401(k) account, the amount you forfeited is
                                                       Making Your Investment Elections
restored only if you repay the amount you
                                                       Deciding which funds are right for you depends on
received (but not including any rollover
                                                       your personal investment strategy and how long
contributions you made to the ISP 401(k))
                                                       you have until retirement. When you enroll, you
within five years from the day you begin
                                                       make your investment choices in whole percent
participating in the ISP 401(k) again.
                                                       increments.
Forfeitures are used to restore participants’
                                                       In general, there are two types of funds offered in
accounts, offset employer contributions to the ISP
                                                       the ISP 401(k):
401(k) and pay reasonable ISP 401(k) expenses,
in that order.                                         !   Target Date Funds — These funds
                                                           (sometimes called pre-mixed or lifestyle funds)
                                                           contain a blend of investments based on a
INVESTING YOUR ACCOUNT BALANCE                             specific time horizon. Each is named for a
The ISP 401(k) Investment Funds                            specific retirement year that corresponds
                                                           to the year you reach age 65, and is rebalanced
To help you diversify your savings, the ISP 401(k)
                                                           over time so that the asset mix becomes more
offers a range of investment funds as shown
                                                           conservative as the target date approaches.
in the chart on the following page. You are
responsible for choosing how your elective             !   Individual Funds — These funds are in
contributions are invested among the available             different asset classes with varying degrees
funds. If you do not make an active investment             of potential risk and return. You can select a
election, your elective contributions will be              number of individual funds to create your own
invested in the Plan’s Qualified Default                   portfolio based on your savings goals.
Investment Alternative (QDIA) (see If You
                                                       It is important to read the fund fact sheet and
Don’t Make Investment Elections on page 12).
                                                       prospectus for each fund before making your
The ISP 401(k) is intended to comply with              investment choices. You can access this
Section 404(c) of the Employee Retirement              information, as well as retirement planning tools,
Income Security Act of 1974 (ERISA). This means        by visiting the applicable website (as described
that you — not the Plan’s fiduciaries — have           on page 2) or calling the HR Service Center at
responsibility for the investment results of your      877-968-7762, option 1. Remember that past
ISP 401(k) account based on your choices among         performance is no guarantee of future results.
the available investment funds.

                                                                         Incentive Savings Plan SPD | Revised October, 2018   11
INCENTIVE SAVINGS PLAN

ISP 401 (k) Investment Funds as of Jan. 1, 2017                   Changing Your Investment Choices
                                                         Ticker
                                                                  Generally, you may do the following at any time:
Fund Name (abbreviation)
                                                         Symbol   ! change how future contributions (including your
Target Date Funds                                                   elective contributions and PNC contributions)
BlackRock LifePath Retirement (LifePath Ret)             N/A        are invested; and/or
BlackRock LifePath Target Date 2020 (Target 2020)        N/A      !   transfer your existing fund balances from one
BlackRock LifePath Target Date 2025 (Target 2025)        N/A          fund to another. However, if you transfer
BlackRock LifePath Target Date 2030 (Target 2030)        N/A
                                                                      money out of the PNC Stock Fund, you
                                                                      cannot transfer it back in.
BlackRock LifePath Target Date 2035 (Target 2035)        N/A
BlackRock LifePath Target Date 2040 (Target 2040)        N/A      A change in the investment direction of future
BlackRock LifePath Target Date 2045 (Target 2045)        N/A
                                                                  contributions is effective for contributions received
                                                                  after the date of your change.
BlackRock LifePath Target Date 2050 (Target 2050)        N/A
BlackRock LifePath Target Date 2055 (Target 2055)        N/A      You can transfer all or any part of your
                                                                  investments to any of the available ISP 401(k)
BlackRock LifePath Target Date 2060 (Target 2060)        N/A
                                                                  investment funds as often as daily, subject to
Money Market                                                      restrictions established by the investment funds
BlackRock Government Short-Term Investment Fund          N/A      themselves. Transfer restrictions are intended to
GIC/Stable Value                                                  discourage frequent, rapid transfers into and out
PNC Stable Value Fund                                    N/A      of a particular fund; see Transfer Restrictions on
Bond
                                                                  page 14 for more information.
State Street U.S. Bond Index Fund (SSgA Bond Index)      N/A      To change the investment direction of future
BlackRock TIPS (BR Tips)                                 N/A      contributions or to transfer fund balances, access
                                                                  the applicable website (as described on page 2)
BlackRock High Yield Bond Fund (BR High Yld Bnd)         BRHYX
                                                                  or call the HR Service Center at 877-968-7762,
Equity
                                                                  option 1.
State Street S&P 500 Index Fund (SSgA S&P 500)           N/A
                                                                  If you complete a fund transfer transaction by
State Street U.S. Extended Market Index Fund             N/A
(SSgA Extd Mkt)                                                   4 p.m. ET on a business day, your transaction will
State Street Global Equity ex-U.S. Index Fund            N/A
                                                                  be effective at the market price as of the close of
(SSgA Global Eq)                                                  business that day. Transactions completed after
State Street International Index Fund                    N/A      4 p.m. ET on a business day, or on a weekend/
State Street Emerging Markets Fund                       N/A      holiday, will be effective the next business day.
State Street Real Return ex-Natural Resources Equities
Index Fund (SSgA Real Rtn)
                                                         N/A      Professional Investment Advice
If You Don’t Make Investment Elections                            PNC offers ISP 401(k) participants* personalized
If you fail to make an investment election                        advice on their savings, investments and
for your ISP 401(k) accounts (including your                      retirement income through Aon Hewitt Financial
elective contributions and PNC contributions),                    Advisors (AFA), an independent third-party
contributions are invested in the Plan’s Qualified                investment advisor. AFA has hired Financial
Default Investment Alternative (QDIA), in                         Engines Advisors L.L.C. (FEA) to provide
accordance with ERISA section 404(c) (see                         sub-advisory services.
Investing Your Account Balance on page 11).
The QDIA is the Target Date Fund that
corresponds to the year in which you reach
age 65. If your contributions are invested in the
QDIA initially, you may change your investment                    * Employees who have been notified that they are restricted employees of
                                                                    PNC will not receive the Retirement Evaluations and are not eligible to enroll
elections at any time in the future (see Changing                   in Professional Management. Online Advice is available to restricted
Your Investment Choices on this page).                              employees.

                                                                                             Incentive Savings Plan SPD | Revised October, 2018      12
INCENTIVE SAVINGS PLAN

AFA services include the following:                   of cash. If your ISP 401(k) account included
! A Retirement Evaluation is mailed to your home      PNC stock prior to Nov. 1, 2011, the shares
  annually once you have a balance in the ISP         allocated to your account were converted to units
  401(k). This personalized evaluation highlights     in the PNC Stock Fund. Each unit includes both
  your current savings/investment strategy in the     cash and shares of stock. As a result, one unit
  ISP 401(k) and offers recommendations for           does not equal one share of stock.
  improvement;                                        Your balance in the PNC Stock Fund is expressed
! Online Advice offers tools and personalized         in dollars and can also be viewed as equivalent
  recommendations to help you invest in the ISP       shares. These represent the number of shares
  401(k) as well as your other retirement savings     you would receive if you took a share payment
  accounts; and                                       from your PNC Stock Fund account on a
! Professional Management is an optional service      particular day. To determine the number of
  available by enrollment directly with AFA.          equivalent shares you own, the ISP 401(k) divides
  It allows you to work with AFA investment           the market value of your PNC Stock Fund balance
  advisors who will develop your personalized         by the New York Stock Exchange (NYSE) closing
  retirement plan and handle any transactions.        price of PNC common stock on the payment’s
  You may enroll in or cancel Professional            effective date.
  Management at any time.
                                                      PNC Stock Fund Dividend Election
How to Access                                         Dividends may be paid periodically on PNC
To access the Retirement Evaluation and Online        common stock and will be allocated based
Advice, go to the applicable website (as described    on the unitized value. Each year during the
on page 2). If you have questions or want to enroll   open enrollment period (generally the first two
in Professional Management, call the HR Service       weeks of December), you may elect to have
Center at 877-968-7762, select option 1 and then      any dividends allocated to your ISP 401(k)
Investment Advice to speak to an AFA investment       account either:
advisor (available from 9 a.m. to 9 p.m. ET           ! paid to you in cash; or
weekdays).
                                                      ! reinvested in the PNC Stock Fund.
Fees                                                  If you do not make an election, your dividends are
All ISP 401(k) participants pay a quarterly fee       reinvested. If you choose to receive dividends in
for the Retirement Evaluation and Online Advice.      cash, your election remains in effect from year
If you elect Professional Management, there is a      to year unless you make a change during a later
separate account-based fee. See Plan Expenses         open enrollment period.
on page 26 for details.
                                                      Dividends that are reinvested in the PNC Stock
PNC Stock Fund                                        Fund are not subject to income tax when
Prior to January 2011, PNC stock was one of           reinvested. Instead, these amounts are taxable
the investment options in the ISP 401(k).             when they are distributed from the ISP 401(k).
                                                      Dividends paid by PNC on stock held by the ISP
The PNC Stock Fund is not an investment option
                                                      401(k), whether paid to you in cash or reinvested
for new contributions or transfers from other         in units of the PNC Stock Fund, are deductible
investment options. If you transfer money out         by PNC.
of the PNC Stock Fund, you cannot transfer
it back in. Effective Nov. 1, 2011, the PNC           Dividends paid to you in cash are taxable as
Stock Fund became a unitized stock fund. This         ordinary income in the year you receive them and
means that the PNC Stock Fund now includes            reported on Form 1099-R. These dividends do not
shares of PNC stock, as well as a limited amount      qualify for special corporate dividend tax rates.
                                                      If you take a hardship withdrawal from the ISP
     The PNC Stock Fund is not an investment          401(k), you are required by law to receive your
   option for new contributions or transfers from     dividends in cash for six months after you receive
              other investment options.               your hardship withdrawal.

                                                                       Incentive Savings Plan SPD | Revised October, 2018   13
INCENTIVE SAVINGS PLAN

Review Your Account Regularly                        Any transfer restrictions are explained in
                                                     each fund’s prospectus. To view the fund
Your ISP 401(k) account is valued daily. You can
                                                     prospectuses, visit the applicable website (as
check your balance online on the appropriate
                                                     described on page 2) or call the HR Service
website (as described on page 2) or by calling
                                                     Center at 877-968-7762, option 1.
the HR Service Center at 877-968-7762, option 1.
In addition, you will receive quarterly statements   Restricted Employees and PNC Insider
showing the value of your account as of the end      Trading Rules
of the immediately preceding quarter.
                                                     If you are notified of your designation as a
The value of each fund fluctuates with market        restricted employee of PNC or a subsidiary —
conditions and the economy. From time to time,       that is, subject to insider trading rules and/or
you should review the performance of the various     consideration for Section 16 executive officers —
investments in your account to determine if you      restrictions apply to the timing of your purchases
want to change your contribution percentage, your    and sales of securities issued by PNC. You can
current investments or the investment of your        obtain a copy of these rules, which include
future contributions.                                additional restrictions and requirements not
                                                     described here, from the PNC Corporate
Your account balance at retirement will depend
                                                     Ethics Office.
upon the performance of your investments.
                                                     Risks
Rebalancing Your Account
                                                     Every investment involves risks. You should
The ISP 401(k) offers you the option of
                                                     evaluate carefully all of the investment risks
automatically rebalancing your investments
                                                     associated with choosing investment funds and
every 90 days, 180 days or annually. This means
                                                     allocating or re-allocating your ISP 401(k) account
that your account’s investment fund balances are
                                                     balance. The value of your investment in any of
automatically redistributed based on your election
                                                     these funds depends not only on the amount
so your account diversification matches your
                                                     deposited, but on conditions in the financial
investment elections in place as of the date
                                                     markets and numerous other factors. There is
the rebalancing occurs.
                                                     no guarantee that you eventually will receive the
Note: If you hold PNC Stock Fund units               actual amount of monies deposited into the ISP
in your ISP 401(k) account, choosing the             401(k) on your behalf. Market values of securities
automatic rebalancing feature will cause             rise and fall, and the value of your investment in
the Plan to sell the PNC Stock Fund units            any fund on any valuation date could be more
held in your account. Since the PNC Stock            or less than the total amount deposited into a
Fund is no longer an investment option for future    particular fund, even taking into account earnings
contributions under the ISP 401(k), once you         or interest gained in the past.
transfer out of investments in your PNC Stock
                                                     The investment funds in the ISP are not insured
Fund, whether by affirmative investment election
                                                     by the Federal Deposit Insurance Corporation
or by action of the automatic rebalance feature,
                                                     (FDIC) or guaranteed by any bank or
you cannot repurchase units under the Plan.
                                                     governmental agency. You assume the risk
Transfer Restrictions                                of any decrease in the market value of your
                                                     securities held or investments made through
Some investment funds impose restrictions on
the frequency and timing of transferring money       the ISP 401(k).
into and out of the fund. Since the ISP 401(k) is
designed for long-term retirement savings, such
restrictions are intended to discourage frequent        The value of each ISP 401(k) investment fund
rapid transfers into and out of a particular fund.        fluctuates with market conditions and the
                                                        economy. You should review the performance
If you make transfers that violate these
restrictions, those transactions will be reversed
                                                         of your investments on a regular basis and
at your expense.                                                  make changes as needed.

                                                                     Incentive Savings Plan SPD | Revised October, 2018   14
INCENTIVE SAVINGS PLAN

WITHDRAWALS                                          You may request one withdrawal of this type in
Although the ISP 401(k) is designed for long-term    any 12-month period.
retirement savings, the withdrawal options           Rollover Account Withdrawals
described below permit you to access the funds       You may request a withdrawal of all or any portion
in your ISP 401(k) account while you are an active   of your Rollover Account at any time.
employee.
                                                     Age 59½ Withdrawals
Amounts withdrawn (other than any after-tax
contributions from a prior plan) generally are       If you are at least age 59½, you may elect to
included in your income in the year of withdrawal    withdraw all or any portion of your vested ISP
and subject to 20 percent federal income tax         401(k) account. You may make an age 59½
withholding. Amounts you withdraw before             withdrawal once in any six-month rolling period.
you reach age 59½ also may be subject to             For example, if you request a withdrawal on
a 10 percent tax penalty for early withdrawal,       March 1, 2017, you may not request another
subject to certain restrictions.                     withdrawal until Sep. 1, 2017.

Withdrawals are taken from your account in           Age 59½ Withdrawals if You Have
proportion to the money you have in each             a Roth Account
investment fund.                                     If you have a Roth account, your withdrawal
                                                     may include amounts from your Roth Elective
You cannot pay back amounts you withdraw             Contribution Account only if the withdrawal is a
from the ISP 401(k) (you can, however, pay           qualified distribution under the rules that apply to
back participant loans from the Plan; see Taking     such accounts:
a Loan on page 17). Therefore, any withdrawal        ! Your Roth account must have been established
leaves you with less money for retirement. You          at least five years before your distribution, and
should consult a tax or financial advisor before
requesting a withdrawal.                             ! You must be at least age 59½, receiving
                                                        disability payments from PNC or a beneficiary
To verify the amounts (if any) that are available       of a deceased participant at the time of the
for withdrawal from your ISP 401(k) account and         payment.
to request a withdrawal, access the applicable
                                                     Also, you may make an age 59½ withdrawal from
website (as described on page 2) or call the
                                                     your Roth account only once in any six-month
HR Service Center at 877-968-7762, option 1.
                                                     rolling period.
Withdrawal proceeds generally are available
within five to seven business days. You have the     If you wish to receive an age 59½ withdrawal, you
option of having your withdrawal deposited in your   must first exhaust the balance in your non-Roth
checking account or having a check mailed to         account, before making any withdrawal from your
your home.                                           Roth account. For example, let’s assume you
                                                     wish to withdraw $100,000 and you have an
After-Tax/Prior Profit-Sharing Withdrawals
                                                     $80,000 balance in your non-Roth account and
You may request a withdrawal of any after-tax        a $50,000 balance in your Roth account. You
contributions (other than Roth elective              would first request a withdrawal of $80,000 from
contributions) and any vested profit-sharing         your non-Roth account followed by a second
contributions that were made under the ISP           withdrawal request of $20,000 from your Roth
401(k) or certain prior plans. If the funds were     account.
matched by an employer, they must have
                                                     The rolling, six-month waiting period applies
been held in the ISP 401(k) or a prior plan for
                                                     separately to your non-Roth and Roth accounts.
at least two years to be eligible for withdrawal.
                                                     In the example above, if you requested an
     Although the ISP 401(k) is designed for         $80,000 withdrawal on April 12, 2017, from your
                                                     non-Roth account, you would not be able to
 long-term retirement savings, you are permitted
                                                     request a second withdrawal from this account
   to withdraw portions of your account while        until Oct. 12, 2017. And, if you requested $20,000
        working under certain situations.            from your Roth account on April 30, 2017, you

                                                                      Incentive Savings Plan SPD | Revised October, 2018   15
INCENTIVE SAVINGS PLAN

would not be able to request a second withdrawal        To request a hardship withdrawal, access the
from this account until Oct. 30, 2017.                  applicable website (as described on page 2) or
                                                        call the HR Service Center at 877-968-7762.
Hardship Withdrawals
                                                        option 1.
If you have an immediate and heavy financial
                                                        Your hardship distribution is generally subject to
need that cannot be satisfied from other sources
                                                        all applicable income taxes and penalties. Always
reasonably available to you, you may request
                                                        consult a tax advisor before requesting a hardship
a hardship withdrawal from your ISP 401(k)
                                                        withdrawal.
account. Prior to taking a hardship withdrawal,
you must first access any of the following,             The Amount You Can Withdraw
if available to you:                                    To determine the amount available for a hardship
! non-Roth after tax funds from prior plans;            withdrawal, access the applicable website (as
! profit sharing funds from prior plans;                described on page 2) or call the HR Service
                                                        Center at 877-968-7762. option 1. The maximum
! rollover funds; and                                   amount you can withdraw is the amount needed
! age 59½ withdrawals and loans under                   to meet your immediate and heavy financial
   the ISP 401(k) Plan.                                 need (including any amounts necessary to pay
Also, you must certify that you have no other           federal, state or local income taxes or penalties
sources of funds to satisfy the financial obligations   reasonably anticipated to result from the
imposed by the hardship (such as insurance,             withdrawal). Withdrawals are taken from your
liquidation of assets or by borrowing from              account in proportion to the money you have in
commercial sources on reasonable terms).                each investment fund. Note: Earnings on your
                                                        ISP 401(k) account, if any, are not available for
If you meet these requirements, you may request         a hardship withdrawal.
a hardship withdrawal for the following specific
purposes:                                               Restrictions After a Hardship Withdrawal
! medical expenses for you, your spouse, your           If you take a hardship withdrawal, you may not do
   dependents or your primary beneficiary that          the following for six months from the effective date
   have been incurred or are required in advance        of the hardship withdrawal:
   to get eligible medical care not otherwise           ! contribute to the ISP 401(k);
   reimbursable by insurance;                           ! receive matching contributions; and
! payment of tuition and related education              ! participate in the Employee Stock Purchase
   fees, including room and board, for the next            Plan.
   12 months of post-secondary education for
                                                        In addition, if you take a hardship withdrawal,
   you, your spouse, dependents or primary
                                                        federal law requires that you receive dividends
   beneficiary;
                                                        on any stock in the PNC Stock Fund held in your
! purchase of your primary residence;                   account paid in cash during the six-month period.
! prevention of eviction from your primary
   residence (or foreclosure on the mortgage);
! payment of expenses for the repair of damage            If you take a hardship withdrawal, you may not
   to your primary residence that would qualify for
   the casualty deduction under IRC Section 165              contribute to the ISP 401(k) for six months.
   (determined without regard to whether the loss
   exceeds 10 percent of adjusted gross income);
   and/or
! payment of burial or funeral expenses for
   your deceased parents, spouse, children,
   dependents or primary beneficiary.
When you request a hardship withdrawal, you
must provide documentation supporting your
hardship.

                                                                          Incentive Savings Plan SPD | Revised October, 2018   16
INCENTIVE SAVINGS PLAN

TAKING A LOAN                                            2. Subtract the amount of any current
                                                            outstanding ISP 401(k) loan from the
If you are an active employee and need access to            results of step 1. This is the maximum
your funds before you reach retirement, you can             you can borrow.
take a loan from your ISP 401(k) account for any
reason. You pay your account back with interest
using after-tax payroll deductions. You may have          EXAMPLE: The Maximum Amount You Can Borrow
up to two loans outstanding at a time.
                                                            Bob’s current vested ISP 401(k) balance is
You may request a loan for a maximum of five                $90,000, his highest outstanding loan balance
years, or 15 years if you are using the loan to             is $40,000, and his current outstanding loan
acquire your primary residence. To model                    balance is $10,000. The difference between
                                                            his highest and current loan balances is $30,000.
repayment schedules for different loan amounts
and time periods, access the applicable website             1.   Calculate the lesser of A or B.
(as described on page 2) or call the HR Service                  A. 50% of vested account balance:
Center at 877-968-7762, option 1.                                   $90,000 x .5 = $45,000

Loan provisions must meet certain IRS guidelines,                B. $50,000 minus the difference between
                                                                    the highest and current loan balances:
and the rules regarding loans are subject to
                                                                    $50,000 - $30,000 = $20,000
change without notice. In general, loans are
subject to the rules and procedures in effect at the             B is less than A.
time they are made.                                         2.   Subtract Bob’s current loan balance:
                                                                 $20,000 - $10,000 = $10,000
The Amount You Can Borrow
The balance in your ISP 401(k) account serves as            The maximum amount Bob can borrow is $10,000.
security for your loan. The minimum amount you
can borrow is $500. The maximum amount you
can borrow is based on IRS formulas.                   Requesting a Loan
! If you have not had an ISP 401(k) loan               To request a loan, access the applicable website
  previously, the maximum you can borrow is 50         (as described on page 2) or call the HR Service
  percent of your vested ISP 401(k) account            Center at 877-968-7762, option 1.
  balance or $50,000, whichever is less.               Loans are generally issued within three to five
!   If you have had an ISP 401(k) loan previously,     business days. You have the option of having
    the maximum you can borrow is determined by        your loan proceeds deposited in your checking
    these steps:                                       account or having a check mailed to your home.
    1. Calculate the lesser of A or B below:           Number of Outstanding Loans Permitted
       A. 50 percent of your vested ISP 401(k)         As an active participant, you may not have more
          account balance (up to a balance             than two outstanding loans at any time. If you
          of $100,000)                                 have two outstanding loans, at least one of them
                                                       must be repaid before obtaining a new loan.
       B. $50,000 reduced by the difference
          between                                      Effective Jan. 1, 2015, you must wait 30 days
                                                       after paying off a loan before you are eligible
           1) your highest outstanding ISP 401(k)
                                                       to apply for a new loan. This 30-day period
           loan balance during the preceding
                                                       is in effect whether the loan has been paid off
           12-month period ending on the day
                                                       prior to the end of the original term of the loan
           before the date the loan is made; and
                                                       or according to regularly scheduled payroll
           2) your current outstanding balance         deductions per the amortization schedule.
           on loans under the ISP 401(k), including
           loans from prior plans that were merged
           into the ISP 401(k).

                                                                           Incentive Savings Plan SPD | Revised October, 2018   17
INCENTIVE SAVINGS PLAN

Repaying Your Loan with Interest                        RECEIVING A DISTRIBUTION
Loan repayments are deducted from your pay on           When You Can Receive a Distribution
an after-tax basis until your loan is repaid in full.
The interest rate is set at the time you request the    The value of your vested ISP 401(k) account
loan and equals the prime rate announced by             balance is payable to you (or your beneficiary)
PNC Bank, National Association on the 15th day          when:
of the month preceding the day you submit the           ! your employment with PNC or its affiliates ends;
loan application. You may pay off a loan in full at     ! you become disabled as defined by PNCs
any time without prepayment penalties.                    Long-term Disability Plan, if you are eligible.
                                                          If not, disability is determined by the Social
Loan repayments go back into your ISP 401(k)
                                                          Security Administration; or
account according to your current investment
elections.                                              ! you die.
Default                                                 Based on the value of your vested ISP 401(k)
                                                        account balance, you have different distribution
If you fail to make an installment payment on your
                                                        options, each with different tax implications. You
loan by the end of the calendar quarter following
                                                        are encouraged to talk with a tax/financial advisor
the calendar quarter in which the payment was
due, the Plan Manager may accelerate payment            so you can take the best action for your situation.
of the entire loan and interest due at that point. If   Your actual account balance will depend upon the
you default on your loan, the outstanding balance       level of contributions you made and the
and interest will be deducted from your ISP 401(k)      investment performance of your accounts.
account and becomes taxable to you in the
                                                        If Your Account Balance Is $5,000 or More
current tax year.
                                                        If your vested account balance is $5,000 or more,
Loan repayments are suspended during a period
                                                        you must request the distribution of your account.
of qualified military service.
                                                        You can choose to receive your ISP 401(k)
If You Leave PNC                                        account in any of the following forms:
If your employment with the employer ends, the          ! a single lump-sum payment;
outstanding balance of any ISP 401(k) loan plus         ! monthly, quarterly or annual installments over a
interest outstanding must be repaid to the ISP             period not to exceed the lesser of 15 years or
401(k) within 60 days after the end of your                your life expectancy (or the joint life expectancy
employment. If you do not repay the loan, the              of you and your spouse if you
outstanding balance plus interest will be deducted         are married); or
from your ISP 401(k) account balance before it is       ! a partial lump-sum payment if you are at least
distributed to you. The amount of the loan plus            age 55 and have completed three years of
interest is treated as a taxable distribution to you.      vesting service.
If you have a loan outstanding that was taken           If you elect installment payments, you may revoke
under any prior plan, that loan is subject to           your election and receive the balance of your
the terms of the plan in effect when the loan           account in a single lump-sum payment at
was made.                                               any time.
                                                        If you take a partial distribution, the amount is
                                                        taken from your account in proportion to the
       We can’t pay you if we can’t find you!           money you have in each investment fund.
       Keep your contact information up to date.        Distributions generally are made in cash, but you
        Contact the HR Service Center to report         may choose to receive any PNC Stock Fund units
    changes to your name, address, phone number,        held in your account in equivalent shares of PNC
                email or marital status.                common stock.

                                                                          Incentive Savings Plan SPD | Revised October, 2018   18
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