Page 1 Dignity Health RMRP – SEIU 07/2014

Dignity Health Health in Retirement

For employees represented by SEIU We are pleased to offer Health in Retirement, designed to help you pay for your medical and healthcare costs during retirement. The plan was established January 1, 2007. What is Health in Retirement? Health in Retirement is designed to provide you with tax-deferred dollars that you can access when you retire to help pay for medical and healthcare expenses during retirement. Health in Retirement is completely paid for by Dignity Health. Why Health in Retirement? Benefit costs are a major challenge for most employers and a concern for most employees as well. As you know, Dignity Health provides a comprehensive and highly competitive benefits package during your active employment. However, the cost of healthcare in your retirement years has emerged as a concern and that’s why we have designed Health in Retirement. Dignity Health, like other employers, is concerned about the escalating costs for employee healthcare. At the same time, we recognize how important it is for you to be able to plan for your retirement needs. Dignity Health remains committed to helping you provide for your financial security in retirement. Your Dignity Health retirement plan was implemented with that commitment in mind. To enhance your total retirement package, we offer Health in Retirement, providing you with additional support for healthcare expenses in retirement and complementing your Dignity Health retirement program – both designed to help you build a secure financial future and ultimately a successful retirement.

Pension Income provided by

Dignity Health

Savings Plan Your before-tax

contributions & Dignity Health matching dollars

Retiree Medical Credits provided by

Dignity Health

Total Retirement

Package

Page 2 Dignity Health RMRP – SEIU 07/2014

Who’s Eligible for Health in Retirement? Employees who are represented by SEIU-UHW and Local 121RN are eligible to participate in Health in Retirement. To receive a contribution to Health in Retirement you must: n Complete the age and service requirements listed below n Work at least 1,000 hours per year during the last five consecutive years prior to an

employer contribution. When you leave Dignity Health, the funds in your Health in Retirement account will be available for distribution. How Does Health in Retirement Work? Health in Retirement is completely funded by Dignity Health; there is no contribution required of you. When you retire from Dignity Health, you access your account by contacting Fidelity, the plan administrator, and requesting a distribution. Contributions are made based on your age and service as of December 31 as shown below. The value shown for each Age/Years of Service combination is the maximum contribution for that “milestone”. If you have received a previous contribution that is less than the amount for your new milestone, an additional contribution will be made to bring you to the maximum. The lifetime maximum employer contribution is $38,000:

Years of Service* Age 15+ 20+ 25+ 30+ 60 $10,000 $10,000 $10,000 $15,000 61 $10,000 $10,000 $10,000 $15,000 62 $10,000 $10,000 $15,000 $20,000 63 $10,000 $15,000 $20,000 $25,000 64 $15,000 $20,000 $25,000 $30,000 65 $20,000 $25,000 $30,000 $38,000

* At least 1,000 hours worked in a calendar year Contributions are posted to a Fidelity 403(b) account that has been set up on your behalf. You decide how the funds will be invested and can choose from the same fund options that are available for Dignity Health Savings Plan accounts. You can access your account to make investment elections, name your beneficiary or view your account balance at any time by logging on to http://plan.fidelity.com/dignityhealth or by calling Fidelity at 800-343-0860. Let’s take a look on the next page at examples of how Health in Retirement might add up for you when you are ready to retire.

Page 3 Dignity Health RMRP – SEIU 07/2014

Health in Retirement Contribution Examples

Jessica, age 35, was recently hired into a full-time position at Dignity Health. Jessica continues to work full time over the course of her career with Dignity Health and retires at age 65. As Jessica reaches the age and service milestones, contributions will be made to her Health in Retirement (Fidelity SEIU 403(b)) account as follows:

Age as of the last day of the

year

Years of service

completed

Maximum contribution

for milestone

Contribution to 403(b) account

Comment

60 25 $10,000 $10,000 Initial contribution

61 26 $10,000 None Is at the milestone maximum

62 27 $15,000 $ 5,000 To reach the $15,000 maximum

63 28 $20,000 $ 5,000 To reach the $20,000 maximum

64 29 $25,000 $ 5,000 To reach the $25,000 maximum

65 30 $38,000 $13,000 To reach the $38,000 maximum

John, age 45, was recently hired into a full-time position at Dignity Health. John continues to work full time over the course of his career with Dignity Health and retires at age 65. As John reaches the age and service milestones, contributions will be made to his Health in Retirement (Fidelity SEIU 403(b)) account as follows:

Age as of the last day of the

year

Years of service

completed

Maximum contribution for

milestone

Contribution to 403(b) account

Comment

60

15

$10,000

$10,000

Initial contribution

61

16

$10,000

None

Is at the milestone maximum

62

17

$10,000

None

Is at the milestone maximum

63

18

$10,000

None

Is at the milestone maximum

64

19

$15,000

$ 5,000

To reach the $15,000 maximum

65

20

$25,000

$10,000

To reach the $25,000 maximum

Page 4 Dignity Health RMRP – SEIU 07/2014

Frequently Asked Questions about Health in Retirement 1. Q: Is there a maximum amount that can be credited to Health in Retirement?

A: Yes. The lifetime maximum employer amount that can be credited to Health in Retirement is $38,000.

2. Q: Does my prior service with another Dignity Health facility count toward the years

of service requirement? A: Yes, your past service in a SEIU position with Dignity Health is included for Health in

Retirement eligibility. 3. Q: When is my age determined for percent of contributions?

A: Your age as of December 31 of each year is used to determine eligibility for a contribution.

4. Q: Are partial years of service included for eligibility in Health in Retirement?

A: Each full calendar year you work at least 1,000 hours will be included for purposes of meeting the years of service eligibility requirements. The final year in which you retire will be counted if you have worked at least 1,000 hours before you retire from Dignity Health.

5. Q: How will I know the when contributions are made to my Health in Retirement

account? A: You will be notified by letter when a contribution is made to your Health in Retirement

(Fidelity SEIU 403(b)) account. 6. Q: Can I take out a loan against the funds in my Health in Retirement account?

A: No. This plan does not provide in-service withdrawals or loans. 7. Q: When can I access the funds in my Health in Retirement account?

A: When you retire from Dignity Health you will be able to access your Health in Retirement balance. You must begin minimum distributions from the account no later than April 1 of the calendar year following the year in which you attain age 70 ½.

8. Q: Are distributions from Health in Retirement considered taxable income to me?

A: Yes. Distributions that are paid to you are considered taxable income. 9. Q: Can I request a lump sum payment from my Health in Retirement account when I

leave Dignity Health? A: Yes.

10. Q: What happens if I die before taking the full distribution of my Health in Retirement

account? A: If you die before taking the full distribution of your account, the full current value will be

payable to your beneficiary or beneficiaries.