About the Plan

Distributions

When you initially enroll, you decide how you want to have your account balances paid to you, either as a lump sum payment or in annual installments for 5, 10 or 15 years. Your distribution elections for each source are independent of each other. As a result, you could choose the same form of distribution for each applicable source or have different forms of distribution for each applicable source. The need to select a distribution option at initial enrollment depends on the type of balance as summarized below:

• Company Contributions — At the time of your initial enrollment, you need to select a distribution option for company contributions made on or after May 1, 2012. You need to select a distribution option for company contributions regardless of your decision to defer base pay and/or bonus. If you do not make a distribution election, the account balance due to company contributions will be paid as a lump sum six months following separation of service.
• Employee Base Pay Deferrals — You will need to select a distribution option if you choose to defer base pay at the time of initial enrollment. However, if you do not choose to defer base pay at the time of initial enrollment, you will not select a distribution option for base pay deferrals at initial enrollment. You are not required to make a distribution election for base pay deferrals until the enrollment period in which you first select to defer base pay.
• Employee Bonus Deferrals — You will need to select a distribution option if you choose to defer bonus at the time of initial enrollment. However, if you do not choose to defer bonus at the time of initial enrollment, you will not select a distribution option for bonus deferrals at initial enrollment. You are not required to make a distribution election for bonus deferrals until the enrollment period in which you first select to defer bonus.

With one exception noted below, any distribution of your account will automatically begin six months following your separation from Komatsu. The distribution elections you make for any future employee deferrals and company contributions do not apply to any contributions received before May 1, 2012. Those will be paid as a lump sum, six months after separation from service, per the terms of the plan.

Subject to the restrictions discussed below, you have limited ability to change your distribution elections once elected:

• For each source, you will have one opportunity to change your distribution election following your initial election. The initial distribution elections you make will remain in effect for employee deferrals and/or company contributions made on or after May 1, 2012 unless you elect to make a one-time change. These distribution elections do not apply to contributions received prior to May 1, 2012.
• Elections to change must be made at least 12 months prior to the date you originally elected to receive payment of the account balance.

Important: Any change to your distribution form of payment will automatically delay commencement of benefits by five years. For example, if you choose to re-elect your form of distribution during the one-time opportunity, your money will be paid five years and six months after your separation. A distribution will also be triggered by your death or disability.

Withdrawals of your prior contributions are available if you have an unforeseeable emergency, but company contributions are not available for withdrawal. Withdrawal requests due to unforeseen emergencies will be evaluated on a case-by-case basis and must receive Committee approval. Note that withdrawals from the DCP are subject to more restrictive criteria than withdrawals from the Retirement Savings Plan. Your distribution will be limited to the amount necessary to meet your financial need and your deferral election for the remainder of the plan year will be cancelled.

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Key information

about the enrollment window:
November 1 - 30, 2023