UNIVERSITY HEALTH SYSTEM, INC. 403(B) PLAN Contribution & Employer Match

UNIVERSITY HEALTH SYSTEM, INC. 403(B) PLAN Average Participant Retirement Account Value

UNIVERSITY HEALTH SYSTEM, INC. 403(B) PLAN Estimated Average Employee Contribution Amount

• Each year, participants may contribute up to the maximum dollar amount allowed by the Internal Revenue Code.
• Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions.
• Participants may also contribute amounts representing distributions from other qualified retirement plans (rollovers).
• The Plan allows pre-tax and Roth 401(k) contributions.
• The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan.
• Automatically enrolled participants have their deferral rate set at 3% of eligible compensation and their contributions invested in a designated fund until changed by the participant.

• The Company contributes a nonelective contribution to the Plan equal to 5% of each active participant’s eligible compensation on a quarterly basis, as defined in the plan document.
• To receive this contribution, an employee must have completed one consecutive year of service with a minimum of 1,000 service hours at UHS, 250 hours during the quarter the contribution relates to, and be actively employed on the last day of the quarter.

• Prior to January 1, 2003, participants with one year of employment but less than two years of employment became 20% vested in UHS contributions, and their vested percentage increased by 20% each year of employment, thereafter until they were fully vested after five years.
• For participants joining UHS on or after January 1, 2003, the vesting is a five-year cliff vesting, whereby the employee becomes fully vested after five years of employment.
• Beginning January 1, 2007, the vesting for all active employees changed to a six-year graduated vesting.
• Participants with two years of employment become 20% vested in Company contributions, and their vested percentage increases by 20% each year of employment thereafter until they are fully vested after six years.
• Each employee with at least three years of service on January 1, 2007, who was not 100% vested, was permitted to make an irrevocable election regarding the applicable vesting schedule.
• Participants are always 100% vested in their own contributions.
• In addition, a participant will become 100% vested in the employer contribution portion of their accounts in the event of death or permanent disability.