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1 2 Maximize Your Plan q You will be automatically enrolled Sign in online at sparrow.trsretire.com or call q q q q q q Catch up on your contributions (must be age 50 or older). Designate your beneficiary. Please visit us online at sparrow.trsretire.com and follow the prompts for designating your beneficiary. Reduce your clutter. Sign up for e-documents today. Schedule automatic annual increases through our free auto-increase service. Rebalance your account automatically by using Auto-Rebalance. For retirement counseling, just call or visit us online. As an active participant, you can access your retirement account 24/7 by signing in to sparrow.trsretire.com or calling us toll-free at You may also speak with a customer service representative for enrollment assistance, investment guidance, and retirement planning support. First-time online users sparrow.trsretire.com First-time callers Questions? Visit sparrow.trsretire.com 1

2 3 0 Automatic Enrollment You will be automatically enrolled in the Sparrow Health System Associate Retirement Savings 401(k) Plan. How does automatic enrollment work? You will be enrolled in the plan as soon as you become eligible to contribute to your account. Enrollment is automatic there are no forms to complete. Unless you choose otherwise, each pay period 6% of your pay will be deducted from your paycheck before taxes and contributed to your account automatically. Can I contribute more - or less? Yes, you can contribute Plus, you can have a dollar amount or a flat percentage of your income automatically deducted from your paycheck, though IRS and plan limits may apply. For example, for 2015 the regular IRS limit on contributions is $18,000. ($18,000 for 2016). Also, if you are at least age 50 or will be during the year, you can make up to $6,000 in additional "catch-up" contributions to your account in ($6,000 for 2016). You can also choose to contribute less than the automatic 6%, or not at all. How are my contributions invested? Your contribution automatically will be invested in the plan's default fund unless you make an investment election. More information about all the funds in the plan can be found in the pages that follow. Can I make after-tax contributions? Yes, you may designate your automatic pre-tax contribution as an after-tax Roth contribution, or make a combination of pre-tax and after-tax contributions. How do I make changes to my contributions and/or my investments? To change your contribution amount, or to opt out of automatic contributions, go online at sparrow.trsretire.com, sign in to your account, and make any needed updates. You will have 60 days from your date of hire to opt out of the automatic deferral. Automatic contributions will begin as soon as administratively feasible after the 60 day period is complete. You may want to establish a more personalized investing strategy for your retirement account. You can transfer out of the plan's default fund, change how future contributions are invested, or choose a different strategy by signing in to your account online at sparrow.trsretire.com. Questions? Visit sparrow.trsretire.com 2

3 4 Plan Highlights The Sparrow Health System Associate Retirement Savings 401(k) Plan is a valuable employee benefit and one of the most powerful ways to build your retirement savings. Take a few minutes now to read through these plan highlights and learn more about all the features and benefits your plan includes. You'll find out more about when you can join, how much you can contribute, when you can make changes, and how you can access your savings. Keep in mind this is simply a quick overview of your benefits. For complete details or plan updates, please refer to your Summary Plan Description (SPD). Sparrow Health System Associate Retirement Savings 401(k) Plan Eligibility You are eligible to participate in the Plan if you are a Caregiver at one of the following entities: Mid-Michigan MRI, Physicians Health Plan, Sparrow Clinton Hospital, Sparrow Community Care, Sparrow Hospital, Sparrow Ionia Hospital, Sparrow Specialty Hospital and Sparrow Carson Hospital. Employee Deferral Employer Match Roth Contribution You are immediately eligible to participate in the plan for purposes of these contributions. Employer Annual Contributions Please note the following eligibility information regarding Sparrow's employer retirement contribution: You can contribute your own money and receive Sparrow's matching contributions at any time. However, to receive Sparrow's annual employer retirement contribution, you must have attained one year of eligible service. You can earn one year of eligible service by working 1,000 hours in the 12 months beginning on your hire date. Or, you can earn one year of service by working 1,000 hours in the calendar year beginning on the January 1st after your hire date. Sparrow's annual contribution is typically made at the beginning of the second quarter following the year in which compensation is earned. If you are in one of the following group(s), you are not eligible to participate in the plan: Employees who have elected to remain in the Sparrow Health System Associate Pension Plan Questions? Visit sparrow.trsretire.com 3

4 5 Leased employees Your Contributions You may choose to make contributions Plus, you can have a dollar amount or a flat percentage of your income automatically deducted from your paycheck. You may increase, decrease, or stop your contributions at any time. Your plan offers an auto-increase service, a feature that allows you to elect to have your savings amount automatically increased each year. You can sign up for the auto-increase service online at sparrow.trsretire.com. You may designate your contributions as traditional pre-tax contributions, after-tax Roth contributions, or a combination of both. An annual IRS dollar limit of $18,000 applies for 2015 ($18,000 for 2016). If you are age 50 or older (or you reach age 50 during the current calendar year), you can make additional catch-up contributions up to $6,000 in 2015 ($6,000 for 2016). Your plan includes an automatic enrollment provision. When you become eligible to join the plan, 6% of your pay will be deferred automatically unless you elect an alternative percentage or opt out of participation. Please see the Automatic Enrollment Notice for more information. If you have an existing retirement plan account with a prior employer, you may roll over that account into this plan at any time, if allowed. Consolidating your retirement accounts makes it easier for you to make sure your investment strategy is on track for meeting your retirement goals. To initiate a rollover of a retirement account with a prior employer, complete the form at the back of the book. Employer Contributions Sparrow offers two types of contributions to help you prepare for a healthy retirement: Sparrow's Matching Contributions -- Sparrow will match 50% on up to the first 6% of pay you contribute each pay period. This means if you contribute 6% of your pay, Sparrow will contribute an additional 3%. For example, if a Caregiver who earns $30,000 per year contributes 6% of his salary each pay period to his 401(k) Plan account ($1,800), Sparrow contributes an additional $900 ($1,800 x 50%). Sparrow's Employer Retirement Contributions -- After you have attained one year of eligible service, Sparrow will automatically contribute 3% of your pay to your 401(k) Plan account on an annual basis -- even if you don't contribute your own money. Vesting Vesting is the period of service you need to complete to own your benefits under a retirement plan. Under the Sparrow 401(k) Plan, your own contributions and Sparrow's employer retirement Questions? Visit sparrow.trsretire.com 4

5 6 contributions vest immediately including any rollover or transfer contributions you have made, plus any earnings on those contributions. Sparrow's matching contributions vest 100% after three years of service. They do not vest gradually. Withdrawals You may withdraw vested funds from your Plan account in these events (conditions and restrictions may apply as defined in the Plan): Retirement as defined in the Plan Termination of employment Attainment of age 59 1/2 In-service withdrawal of rollover contributions at any time Financial hardship as defined in the Plan Disability Death Investment Direction Your money, your choice! The 401(k) Plan and Transamerica give you the flexibility to choose how you want to invest your 401(k) Plan account. You can change your investment options at any time. Your contributions under the automatic enrollment provision will be invested in T Rowe Price Target Date Funds based on the year in which you were born and an assumed retirement age of 65. Please see the Automatic Enrollment Notice for more information. Certain investment options may impose trading restrictions and/or redemption fees as a result of frequent trading activity. Please contact Transamerica for more information. Beneficiary Designation It is very important that you designate a beneficiary for your retirement account, so that upon your death your assets can be distributed according to your wishes. Please go online at sparrow.trsretire.com and follow the prompts for designating your beneficiary. Summary Plan Description For more information about any of the plan provisions, including any conditions or restrictions that may apply, please refer to the Summary Plan Description or call These plan highlights represent only an overview of plan provisions and do not constitute a legally binding document. 404(c) Notice The Sparrow Health System Associate Retirement Savings 401(k) Plan is intended to be a 404(c) plan as described in detail in Section 404(c) (ERISA) and final regulation c-1. This means that you have Questions? Visit sparrow.trsretire.com 5

6 7 the flexibility (and responsibility) to choose among the options provided under the plan in a way that best meets your objectives. In general, by providing you with this ability and a variety of investments, your employer and plan administrator are not liable for any losses that occur as a direct result of investment in the available options as directed by you or your beneficiary. In addition to the information contained in this booklet, the following information can be obtained upon request: Prospectuses, summary prospectuses, or similar documents relating to each investment option. Financial statements or reports or similar materials relating to each investment option. Information regarding the value of shares or units in the investment options as well as the date of valuation. (Please see your account statement.) A list of the assets comprising the portfolio of each investment option which will constitute "plan assets" under Reg , and the value of each such asset. To obtain any of the above information, please contact: Plan Administrator Sparrow Health System 1200 E. Michigan, Suite 235 Lansing, MI Phone: Fax: Questions? Visit sparrow.trsretire.com 6

7 1 Sparrow Health System Associate Retirement Savings 401(k) Plan TT Initial Notice of Safe Harbor Contributions and Automatic Contribution Arrangement (ACA) and Automatic Investment of Contributions under the Plan To help you fund your retirement, unless you choose otherwise, Sparrow Health System will enroll you in the Sparrow Health System Associate Retirement Savings 401(k) Plan ("Plan"). Please see below for details and answers to common questions. For additional information, you can contact your plan service provider, Transamerica Retirement Solutions, by visiting your participant website at sparrow.trsretire.com or calling Q. Does the plan's automatic enrollment feature apply to me? If you have not already made an election by contacting your plan service provider, Transamerica Retirement Solutions, you will be automatically enrolled in the plan as soon as administratively feasible following your plan entry date or 60 days after your date of hire, whichever is later. This means 6% of your eligible compensation will be deducted from your paychecks before taxes and allocated to the plan's qualified default investment alternative (QDIA), T Rowe Price Target Date Funds, one will be chosen based on your assumed retirement age of 65. Also, if you choose not to contribute to your account, Sparrow Health System may still make contributions on your behalf as long as you remain eligible for the plan, but you will be ineligible for additional matching contributions (detailed later in the notice). You may change your contribution amount and/or your investments, or opt out of the plan entirely, by contacting your plan service provider, Transamerica Retirement Solutions. If you wish, you may designate some or all of your contributions as "Roth" after-tax. Roth after-tax and traditional pretax contributions offer different tax treatment. Roth contributions are subject to current federal income tax, however, any Roth related earnings will be tax-free for qualified distributions if you hold the account at least five years and are age 59½ or over at the time you take a distribution. Q. What if I do nothing? If you do not make an election by your plan entry date, each pay period 6% of your eligible compensation will be contributed to your account. This will start as soon as administratively feasible after your plan entry date or 60 days after your date of hire, whichever is later. Your contributions to the plan are taken out of your eligible compensation and, when designated as traditional pretax are not subject to federal income tax at that time (as well as most states, check your own state's tax rules). Instead, they are contributed to your plan account and may grow over time with earnings. Your account will be subject to federal income tax and state (check your own state's tax rules) only when withdrawn. You are in charge of how much you contribute, within annual limits set by the Internal Revenue Service. The IRS limits how much you can contribute each year; the current IRS annual limit is $18,000. The IRS limit for 2016 is $18,000. If you are (or will be) at least age 50 during the current calendar year, you can make additional "catch-up" contributions ($6,000) above the regular IRS annual limit for the year. The IRS catchup limit for 2016 is $6,000. If you are eligible to receive an employer contribution the maximum amount of employee compensation that can be considered in calculating employer contributions to the plan is $265,000 for 2015 ($265,000 for 2016). You may save with traditional pretax dollars, after-tax "Roth" dollars, or a combination of both, up to the overall limits noted above. Note: Your employer has designated your plan as an Automatic Contribution Arrangement (ACA) under the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (ERISA), which supersedes any state laws governing employee payroll deductions. This means that if you do not choose a contribution amount (even if zero), your employer may deduct a specified portion of your compensation and contribute it to your account automatically without your prior written consent. For more details, please refer to your Summary Plan Description ("SPD") and any Summary of Material Modifications ("SMM") to that document. You can get additional copies of either document from your employer. N1 7

8 40 Q. How will my plan account be invested? You have the right to direct the investments within your plan account. The way contributions are invested in your account is referred to as your "investment allocation". You can elect or change how your contributions and existing assets are invested as well as obtain information on the other investment alternatives available under the plan by contacting your plan service provider, Transamerica Retirement Solutions. Any such election or change by you, whether by making a transfer, or submitting a new investment allocation, will be considered an affirmative investment election. Sparrow Health System has chosen the default investment alternative as a qualified default investment alternative (QDIA) in accordance with the legal requirements under section 404(c)(5) of ERISA. This means that even though you did not elect to invest in the QDIA, the plan fiduciary should not be liable for any investment losses. This relief from liability applies whether or not the plan is intended to be a 404(c) plan. You have the right to transfer your investment in the default investment alternative to any other available investment alternative under the Plan by contacting your Plan service provider, Transamerica Retirement Solutions. Therefore, unless you choose otherwise, your account will be invested in the QDIA, T Rowe Price Target Date Funds, which is a group of single target date funds; one will be chosen based on your assumed retirement age of 65. Fund Family Name Year in Which You Turn 65 T. Rowe Price Retirement 2010 Adv 2017 or earlier T. Rowe Price Retirement 2020 Adv from 2018 to 2027 T. Rowe Price Retirement 2030 Adv from 2028 to 2037 T. Rowe Price Retirement 2040 Adv from 2038 to 2047 T. Rowe Price Retirement 2050 Adv 2048 or later Target Date Funds: These options generally invest in a mix of stocks, bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. The allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and after the target date. For more information about the plan default investment, additional details and individual fund profiles are available on your plan website at sparrow.trsretire.com. Q. When will my plan account be vested and available to me? Vesting refers to your "ownership" of your account the portion to which you are entitled even if you leave the plan. You are always 100% vested in your own contributions plus any earnings on them (including any rollover or transfer contributions you have made). You are 100% vested in the Employer Match contributions after 3 years of service. You are always 100% vested in the Clinton Profit Sharing contributions. You are always 100% vested in the Employer Annual contributions. For vesting purposes, the plan defines a year of service as a plan year in which you are credited with 1,000 hours. 8 N2

9 40 Even if you are fully vested in your plan account, there are restrictions on when you may withdraw your funds. Based on your plan rules, all or a portion of your vested money may be withdrawn after you: Are at least age 59½ In-service withdrawal of certain contributions at any time Experience financial hardship as defined in your Summary Plan Description Retire at plan's normal retirement age 65 Terminate employment Become disabled In addition, upon your death, your designated beneficiaries will receive any vested amount remaining in your account. Generally, if you're no longer actively working for your employer as of April 1 of the year after you reach age 70 1/2, you are required to begin taking required minimum distributions (RMDs) from your account. Also, there may be an extra 10% IRS penalty on distributions before age 59½. You can learn more about the 10% early-withdrawal penalty in IRS Publication 575, "Pension and Annuity Income." You can also learn more about the plan's withdrawal rules by contacting your plan service provider, Transamerica Retirement Solutions or reviewing your Summary Plan Description. Q. What amounts will Sparrow Health System contribute to my account? Your employer has chosen to qualify the plan under the safe harbor provisions of the Internal Revenue Code for the current plan year. Your employer expects to fully make the safe harbor contribution to the plan for the current plan year. However, the IRS allows your employer to amend the plan to reduce or suspend the safe harbor contribution due to unforeseen circumstances. If your employer chooses to reduce or suspend the safe harbor contribution during the plan year, you will receive a supplemental notice advising you of the reduction or suspension at least 30 days prior to the effective date of such change. Employer Match Sparrow Health System's matching contributions are based on the following formula: 50% up to 6% of salary deferral contributions. Clinton Profit Sharing Whether or not you contribute to your account, Sparrow Health System may make discretionary, "non-elective" contributions to your account on a tax-deferred basis. Employer Annual Whether or not you contribute to your account, Sparrow Health System will make a qualified "non-elective" contribution on your behalf for an amount equal to 3% of your compensation. Please refer to your Summary Plan Description for more information on all contributions Sparrow Health System may choose to make to your plan account. For more information on any registered fund, please call for a free summary prospectus (if available) and/or prospectus. You should consider the objectives, risks, charges, and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest. Securities offered by Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY Sparrow Health System has selected Transamerica Retirement Solutions (Transamerica) as your retirement plan provider, but there are no other affiliations between Sparrow Health System and Transamerica or its affiliate, TISC. N3 9

10 40 If you have any questions about how the plan works or your rights and obligations under the plan, please call We can also assist in providing you a copy of your Summary Plan Description. Si necesita aclaraciones en español, llame al número gratuito de Transamerica , diga "Español" para continuar en su idioma. Después de suministrar su información, inmediatamente diga "Servicio al cliente" y uno de nuestros representantes contestará sus preguntas. Produced 11/15 PT Transamerica Retirement Solutions Corporation 10 N4

11 21 Sparrow Health System Associate Retirement Savings 401(k) Plan TT IMPORTANT INFORMATION REGARDING YOUR PLAN We want you to enjoy the many features and benefits of your retirement plan. We also want to make sure you understand your plan and investment fees. The enclosed report details the types and amounts of fees that may apply to your account, depending on which features and investments you choose. The report is organized into multiple sections: General Plan Information offers an overview of your plan. Potential General Administrative Fees and Expenses may be charged against everyone's account in the plan to cover the day-to-day costs of operating the plan. Potential Individual Fees and Expenses are associated with certain plan features or services and apply only to participants who use the particular features or services. Investment Information details each of the options available in your plan. This section features up to three tables, depending on what your plan offers. This may include investments with variable rates of return, such as mutual funds or those with fixed or stated rates of return, such as some stable value funds. Details include: Historical performance for each variable option and its "benchmark," typically a broad market index used for comparison. Expenses, including fund operating costs which are automatically deducted from your investment returns. (The specific expenses that apply to you will depend on how your account is invested.) You may receive this information electronically by signing up for e-documents at sparrow.trsretire.com. Visit sparrow.trsretire.com to access the report and other related materials, including a glossary of terms. To access the participant fee disclosure document, visit sparrow.trsretire.com, and select "investments and associated fees" from the Funds and Fee Information heading. If you are not enrolled in the plan, enter the account number from the upper right-hand corner of this document and click "Submit." If you are already enrolled, enter your customer ID and password and click "Sign in." In addition, your quarterly statement will show the specific fees that have been applied to your account (except any fund expenses netted directly from your investment returns) during the statement period. If you have any questions, please sign in to your account at sparrow.trsretire.com and click on Help, or call us at Si necesita aclaraciones en español, llame al número gratuito de Transamerica y diga "Español" para continuar en su idioma. Después de suministrar su información, inmediatamente diga "Servicio al cliente" y con mucho gusto uno de nuestros representantes contestará sus preguntas. PT Transamerica Retirement Solutions, LLC 04/01/13 F1

12 32 Sparrow Health System Associate Retirement Savings 401(k) Plan TT IMPORTANT INFORMATION REGARDING YOUR PLAN Disclosure Chart as of October 30, 2015 Your plan offers a convenient way to save for retirement, and provides unique features and benefits not available elsewhere. You have the opportunity to make the plan work harder for you by committing early to disciplined savings, taking full advantage of the tools and services available, maintaining a long-term investment strategy, and understanding the plan, including investment options and fees. This document is required to be sent to you to help you understand your retirement plan and will be updated annually and when certain types of changes are made. Although you should review this important information, no action is required on your part. General Plan Information How to Direct Your Investments You decide how your account will be invested among the available investment options by calling or going to sparrow.trsretire.com. There are no transfer restrictions imposed by the Plan. Please see Table 1 for transfer restrictions that may be imposed by the investment options. Transfer and/or Investment Allocation Restrictions Voting, tender and similar rights and restrictions on such rights List of Investment Alternatives Personal Choice Retirement Account (PCRA) Description You may change your investment allocation at any time. No plan level allocation restrictions apply. Investment Allocations for future contributions to the Personal Choice Retirement Account (PCRA) are not permitted. A PCRA may be opened via a transfer from other investment options. There is a $1,000 minimum to open an account and a $250 minimum for subsequent transfers into PCRA. Mutual Funds The Plan Sponsor shall have the right to exercise voting and tender rights attributable to mutual funds offered under the Plan. Self Directed Brokerage Accounts Plan participants shall have the right to exercise voting and tender rights attributable to securities held in an outside brokerage window offered under the Plan. For the listing of the Plan's investment alternatives, please see the attached Comparative Investment Chart. Your plan also offers PortfolioXpress. PortfolioXpress is a service that provides an investment mix of the designated investment alternatives offered under your plan based on the target retirement year you select. Your account is rebalanced to become more conservative as you approach your target retirement year. To supplement the investment funds offered under your plan, you may choose to open a Schwab Personal Choice Retirement Account (PCRA). This is a self-directed brokerage account that allows you to direct the investment of your account in investment options other than those offered under the plan. By establishing a PCRA, you assume responsibility for controlling your investments. For more information on establishing and maintaining a PCRA, please call Transamerica at Potential General Administrative Fees and Expenses Administrative Fee Per Account When applicable, other general administrative fees for plan services (e.g., legal, accounting, auditing, recordkeeping) may from time to time be deducted as a fixed dollar amount from your account. The actual amount deducted from your account, as well as a description of the services to which the fees relate will be reported on your quarterly benefit statements. PT Transamerica Retirement Solutions, LLC 04/01/13 F2

13 43 Sparrow Health System Associate Retirement Savings 401(k) Plan TT Administrative Fee Pro Rata The plan incurs general administrative fees for ongoing plan administrative services (e.g., recordkeeping) of up to 0.26% annually of assets held in the plan investment options. These fees may be paid, in whole or in part, from revenue (e.g., 12b-1 fees, administrative fees) that Transamerica Retirement Solutions or its affiliates receive based upon the plan's investment options. If this revenue is not adequate to cover the fees, the plan administrator will decide if the shortfall will be deducted on a pro rata basis across some or all investment options held in your account or as a fixed dollar amount from your account, unless paid from other sources. Plan Service Credit General administrative fees other than the charge above, for administrative services (e.g., legal, accounting and auditing) may from time to time be deducted on a pro rata basis across some or all investment options held in your account. The actual amounts deducted from your account, as well as a description of the services to which the fees relate will be reported on your quarterly benefit statements. Plan service credit represents an expense refund for one or more of the investment funds offered by your plan. When applicable, a plan service credit is added to your account and lowers the effective annual expense ratios of the investment fund(s) for which a plan service credit applies. Any plan service credit will be reported on your quarterly benefit statements. Potential Individual Fees and Expenses applicable only to those using specific features or services Full Distribution Fee Hardship Withdrawal Fee In-service Distribution Fee Overnight Check Fee Personal Choice Retirement Account (PCRA) Fee A fee of $25.00 that is deducted from your account when you take a full distribution from your account when you terminate employment or retire. The fee is also applicable to the final distribution from a former participant's account who has taken unscheduled systematic withdrawals and for contract exchanges to another service provider. The fee is waived if the distribution is made due to death, disability, the purchase of an annuity through Transamerica, a direct rollover to a Transamerica IRA and any distribution from a beneficiary's account. The amount deducted from your account will be reported on your quarterly benefit statement. The fee and the related service will be identified as a Distribution Processing Fee. This fee is effective December 1, A fee of $25.00 that is deducted from your account when you take a hardship withdrawal from your account. The amount deducted from your account will be reported on your quarterly benefit statement. The fee and the related service will be identified as a Distribution Processing Fee. This fee is effective December 1, A fee of $25.00 that is deducted from your account when you take an in-service distribution from your account and for a contract exchange to another service provider. The fee is waived for direct rollovers to a Transamerica IRA, Required Minimum Distributions and distributions made from a beneficiary's account. The amount deducted from your account will be reported on your quarterly benefit statement. The fee and the related service will be identified as a Distribution Processing Fee. This fee is effective December 1, A fee of up to $50.00 will be deducted from your account in the event you request a check be sent overnight to you. The amount deducted from your account, as well as a description of the services to which the fee relates, will be reported on your quarterly benefit statement. An annual fee of $50.00 will be withdrawn from your Transamerica account and will appear on your Transamerica statement. This fee is expressed as a fixed dollar amount. You may trade many funds with no loads and no transaction fees through Schwab's Mutual Fund OneSource service. Certain funds in Schwab's Mutual Fund Marketplace are available with no transaction fees, but have 12b-1 fees in excess of.25% and therefore cannot be called "OneSource" funds. Commissions and transaction fees may apply to fund trades placed outside of Mutual Fund OneSource or trades on other investment vehicles available through Schwab. To learn about any fees associated with the purchase or sale of a particular investment before making a purchase or sell through your PCRA, access your account online at or contact the Schwab PCRA Call Center at PCRA(7272). Schwab fees will appear on your separate PCRA statement directly from Schwab. QDRO Fee A fee of $ that is deducted from your account when your account is divided as a result of a Qualified Domestic Relations Order. The amount deducted from your account will be reported on your quarterly benefit statement as a Distribution Processing Fee. The fee and the related service will be identified as a Distribution Processing Fee. This fee is effective December 1, PT Transamerica Retirement Solutions, LLC 04/01/13 F3

14 54 Sparrow Health System Associate Retirement Savings 401(k) Plan TT Returned Check Insufficient Funds Shareholder Type Fees A fee of up to $50.00 will be deducted from your account in the event a check is returned for insufficient funds. The amount deducted from your account, as well as a description of the services to which the fee relates, will be reported on your quarterly benefit statement. For applicable redemption fees, please see the Investment Information section. Changes in these fees are announced separately. The amount deducted from your account, as well as a description of the services to which the fee relates, will be reported on your quarterly benefit statement. Investment Information This information is provided to help you compare the investment options under your plan. You may obtain, free of charge, a paper copy of your fee disclosure notice and other investment information posted at sparrow.trsretire.com, by contacting Transamerica at or by writing to 4333 Edgewood Road NE, Mail Drop 0001, Cedar Rapids, IA, 52499, Attention: Fee Disclosure. The information available includes each investment option's issuer, objectives, goals, principal strategies, principal risks, holdings, turnover rate, value and updated performance and expense information; as well as a glossary of terms, information about calculating benefits, available distribution options and (where appropriate) prospectuses and annual reports. The following table focuses on investment options that have variable rates of return, and shows fee and expense information, as well as investment performance for each investment option and that of the appropriate benchmark, or index. If your plan offers balanced, asset allocation or target retirement funds, which are comprised of a mix of stock and bond investments, you will see two broad-based benchmarks, a stock index and a bond index. Because they are made through a retirement plan, your investments in these funds are not subject to front-end or back-end loads, which are a form of sales commission charged at the time of purchase or sale. Please note: The investment performance of each investment option is shown net of (or after) fees, while the benchmark or index investment performance is reported on a gross (before fees) basis. If the option has less than a 10 year history, the investment performance of both the investment option and the index are shown since inception, with the inception date shown after the investment option name. Returns of less than one year are not annualized. Performance prior to the inception date of the share class (if any) is based on returns of an older share class, which have been adjusted for expenses. Total Annual Operating Expenses of an investment option are the expenses you pay each year, which reduce the rate of return you earn. In some cases, a fund may waive or reimburse certain expenses. If a fund has waived expenses in the past year, you will see a different gross (G) (before waivers) and net (N) (after waivers) expense ratio. So while an investor could have been charged as much as the gross expense rate in the past year, they will only have paid the net expense rate because of the waivers. Fund specific operating expense details are available at sparrow.trsretire.com. Shareholder-type fees, if any, are in addition to Total Annual Operating Expenses. Fees and expenses are only one of many factors to consider when you decide to invest in an investment option. You may also want to think about whether an investment in a particular option, along with your other investments, will help you achieve your financial goals. Past performance does not guarantee how the investment option will perform in the future. Your investment in these options could lose money. The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor's website for an example showing the long-term effect of fees and expenses at PT Transamerica Retirement Solutions, LLC 04/01/13 F4

15 65 Sparrow Health System Associate Retirement Savings 401(k) Plan TT Comparative Investment Chart - Table 1 Variable Options Name of Option (Inception Mo/Yr) Index(es) Type of Option Total Annual Operating Expenses G: Gross; N: Net Average Annual Total Return as of 12/31/2014 Bonds As % Per $1000 1Yr. 5Yr. 10yr. or Since Inception Transamerica Partners Institutional Money Market (09/00) Cash Equivalent/Money Market 0.63% G 0.50% N $6.30 G $5.00 N 0.00% 0.00% 1.46% Index: Citigroup Treasury Bill 3 Month Index 0.03% 0.07% 1.46% Transamerica Partners Institutional Core Bond (09/00) Intermediate-Term Bonds 0.72% G 0.65% N $7.20 G $6.50 N 5.99% 5.28% 4.87% Index: Barclays Aggregate Bond Index 5.97% 4.45% 4.71% Stocks AllianzGI NFJ Dividend Value Instl (05/00) Large-Cap Value Stocks 0.71% G 0.71% N $7.10 G $7.10 N 9.99% 13.80% 7.27% Index: Russell 1000 Value Index 13.45% 15.42% 7.30% Transamerica Partners Institutional Stock Index (09/00) Large-Cap Blend Stocks 0.38% G 0.30% N $3.80 G $3.00 N 13.33% 15.14% 7.41% Index: S&P 500 Index 13.69% 15.45% 7.67% Harbor Capital Appreciation Inv (12/87) Large-Cap Growth Stocks 1.05% G 1.03% N $10.50 G $10.30 N 9.53% 14.05% 8.26% Index: Russell 1000 Growth Index 13.05% 15.81% 8.49% Fidelity Spartan Extnd Mkt Idx Advtg (11/97) Mid-Cap Blend Stocks 0.07% G 0.07% N $0.70 G $0.70 N 7.71% 16.81% 9.37% Index: Wilshire 4500 Completion Total Return Index 7.97% 16.77% 9.26% Shareholder-Type Fees / Comments: A short-term redemption fee of 0.75% may apply to transfers, withdrawals or loans, if the amounts were held for 90 days or less. Columbia Acorn Z (06/70) Mid-Cap Growth Stocks 0.79% G 0.79% N $7.90 G $7.90 N 0.82% 13.35% 8.39% Index: Russell Mid Cap Growth Index 11.90% 16.94% 9.43% Shareholder-Type Fees / Comments: If you have made a round trip trade in and out of the fund within 28 calendar days, you will be restricted from making additional transfers into the fund for the next 28 days. Columbia Small Cap Value II Z (05/02) Small-Cap Value Stocks 1.08% G 1.08% N $10.80 G $10.80 N 4.61% 15.55% 8.43% Index: Russell 2000 Value Index 4.22% 14.26% 6.89% Shareholder-Type Fees / Comments: If you have made a round trip trade in and out of the fund within 28 calendar days, you will be restricted from making additional transfers into the fund for the next 28 days. PT Transamerica Retirement Solutions, LLC 04/01/13 F5

16 76 Sparrow Health System Associate Retirement Savings 401(k) Plan TT Comparative Investment Chart - Table 1 Variable Options (continued) Name of Option (Inception Mo/Yr) Index(es) Type of Option Total Annual Operating Expenses G: Gross; N: Net Average Annual Total Return as of 12/31/2014 Stocks As % Per $1000 1Yr. 5Yr. 10yr. or Since Inception Harbor International Instl (12/87) World/Foreign Stocks 0.77% G 0.75% N $7.70 G $7.50 N -6.81% 5.54% 7.35% Index: MSCI All-Country World Ex-US Index -3.44% 4.89% 5.59% Vanguard FTSE All World ex-us Index Adm (09/11) World/Foreign Stocks 0.14% G 0.14% N $1.40 G $1.40 N -4.05% N/A 8.97% Index: FTSE All World Ex US Total Return Index -3.04% N/A 9.45% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. Multi-Asset/Other T. Rowe Price Retirement Balanced Adv (10/03) Balanced 0.81% G 0.81% N $8.10 G $8.10 N 3.16% 6.50% 5.15% Index: Barclays Aggregate Bond Index 5.97% 4.45% 4.71% Index: S&P 500 Index 13.69% 15.45% 7.67% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. T. Rowe Price Retirement 2010 Adv (10/03) Target Date 0.83% G 0.83% N $8.30 G $8.30 N 4.79% 8.15% 5.77% Index: Barclays Aggregate Bond Index 5.97% 4.45% 4.71% Index: S&P 500 Index 13.69% 15.45% 7.67% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. T. Rowe Price Retirement 2020 Adv (10/03) Target Date 0.91% G 0.91% N $9.10 G $9.10 N 5.37% 9.94% 6.39% Index: Barclays Aggregate Bond Index 5.97% 4.45% 4.71% Index: S&P 500 Index 13.69% 15.45% 7.67% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. T. Rowe Price Retirement 2030 Adv (10/03) Target Date 0.97% G 0.97% N $9.70 G $9.70 N 5.83% 11.20% 6.82% Index: Barclays Aggregate Bond Index 5.97% 4.45% 4.71% Index: S&P 500 Index 13.69% 15.45% 7.67% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. PT Transamerica Retirement Solutions, LLC 04/01/13 F6

17 87 Sparrow Health System Associate Retirement Savings 401(k) Plan TT Comparative Investment Chart - Table 1 Variable Options (continued) Name of Option (Inception Mo/Yr) Index(es) Type of Option Total Annual Operating Expenses G: Gross; N: Net Average Annual Total Return as of 12/31/2014 Multi-Asset/Other As % Per $1000 1Yr. 5Yr. 10yr. or Since Inception T. Rowe Price Retirement 2040 Adv (10/03) Target Date 1.00% G 1.00% N $10.00 G $10.00 N 5.88% 11.78% 7.00% Index: Barclays Aggregate Bond Index 5.97% 4.45% 4.71% Index: S&P 500 Index 13.69% 15.45% 7.67% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. T. Rowe Price Retirement 2050 Adv (12/06) Target Date 1.00% G 1.00% N $10.00 G $10.00 N 5.92% 11.76% 5.82% Index: Barclays Aggregate Bond Index 5.97% 4.45% 5.04% Index: S&P 500 Index 13.69% 15.45% 7.05% Shareholder-Type Fees / Comments: If you exchange out of this fund, you will not be permitted to exchange back into the same fund within 30 calendar days. PT Transamerica Retirement Solutions, LLC 04/01/13 F7

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23 Plan Well. Live Well. Retire Well. Brighten your financial future. Sparrow Health System Associate Retirement Savings 401(k) Plan TT PT-3447 (11/15)

24 Welcome to Your Plan Helping you prepare for retirement is important to Sparrow. That's why we offer the Sparrow Health System Associate Retirement Savings Plan, a 401(k) Plan that's easy-to-understand, portable and manageable. Transamerica Retirement Solutions will be your 401(k) Plan record keeper. They are dedicated to giving you the planning tools and guidance you need to achieve your retirement goals. This guide will support you through every stage of planning for a financially healthy retirement - including developing a strategy, picking the right mix of investment options and monitoring your investments over time. Whether you're joining a retirement plan for the first time or are approaching retirement, Sparrow and Transamerica will be with you every step of the way.