CEMEX, INC. SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
Note 1 - Plan Description (Continued)
Vesting
Participants are immediately vested in their employee and rollover contributions plus actual earnings thereon. Vesting in the Employers matching and
discretionary minimum contribution portion of their accounts plus earnings thereon is based on years of Active Service, among other things, and is further defined in the Plan Agreement. The maximum years of Active Service required for 100% vesting
is five years.
Forfeitures
Forfeited amounts are
first used to restore forfeited amounts for participants who have previously been terminated but qualify for restoration under the terms of the Plan Agreement. If any amount remains after that allocation, it may be used to reduce Employer
contributions or pay expenses of administering the Plan. At December 31, 2018 and 2017, forfeited
non-vested
accounts totaled $522,323 and $308,501, respectively. During fiscal year 2018, Employer
contributions were reduced by $1,275,141 from forfeited
non-vested
accounts.
Benefit Payments
Benefits are payable from participant account balances, subject to certain restrictions, upon termination of employment, retirement, reaching the age of 59
1
⁄
2
, or by incurring a death, disability or financial hardship, as defined in the Plan Agreement. Participants elect the method of distribution which may be either in
the form of a direct rollover to an eligible retirement plan, lump sum payment or, if in excess of $5,000, payment over a period of time not to exceed the shorter of 10 years or certain life expectancies as defined in the Plan Agreement.
Participants may elect that their portion of account balances invested in American Depository Shares of CEMEX, S.A.B de C.V. be distributed
in-kind.
Unless timely election is made, terminated participants with a vested account balance less than or equal to $1,000 will automatically receive a lump sum cash
distribution and terminated participants with a vested account balance less than or equal to $5,000 but larger than $1,000 will automatically receive a direct rollover to an IRA designated by the Benefits Committee.
Effective August 23, 2017, special Hurricane Hardship Withdrawals were available from the Plan through January 31, 2018, for needs
arising from Hurricane Harvey or Hurricane Irma in accordance with Plan provisions and Internal Revenue Service guidance. Hurricane Hardship Withdrawals did not trigger any post-withdrawal suspension of Plan contributions and were available without
obtaining any nontaxable loans currently available under the Plan if taking such loans would have increased the amount of the need. Otherwise, Hurricane Hardship Withdrawals were generally subject to the same requirements as other hardship
withdrawals under the Plan.