Park Nicollet Retirement Plans 401(k), 403(b), and 457(b)

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1 Eligibility Requirements Non-union/non-contract team members and members of the ADIT union can make salary deferral contributions. To be eligible for employer contributions, team members must be age 18+, be employed for 1 year, have worked 1,000 hours during that year, and be employed on the last day of the year (12/31) these requirements are waived in cases of retirement (termination at age 65+), death, or disability. Once eligibility requirements are met, team members enter the plan on the first day of the payroll period next following their anniversary or 18 th birthday. This plan is available for union/ contract team members (e.g. MNA, SEIU, and Local 70), as they are not eligible for the 401(k) plan. Union/contract team members (e.g. MNA, SEIU, and Local 70) can make salary deferral contributions. To be eligible for matching contributions, team members must be age 18+, be employed for 1 year, have worked 1,000 hours during that year, and be employed on the last day of the year (12/31) these requirements are waived in cases of retirement (termination at age 65+), death, or disability. MNA members are eligible for the match. Select group of team members; primarily officers and physicians. Enrollment Procedures All non-contract and ADIT union new hires are automatically enrolled with a 4% salary deferral after 60 days of employment. Team members must still access their accounts to name beneficiaries and select investments. Team members will have the option to choose a refund within 90 days of auto-enroll start date. Team members must enroll online at parknicollet.trsretire.com or by calling toll-free. Team members must enroll online at parknicollet.trsretire.com. Team members may change enrollment options online at parknicollet.trsretire.com, or by calling toll-free.

2 Team Member Salary Deferral Contributions^ Team members may make salary deferral contributions up to $18,000 in 2017 on a pretax or after-tax (Roth) basis ($24,000 for those age 50+). The contribution limits are reduced by any contribution you make to the 403(b) plan. Team members may make salary deferral contributions up to $18,000 in 2017 on a pretax or after-tax (Roth) basis ($24,000 for those age 50+). The contribution limits are reduced by any contribution you make to the 401(k) plan. Team members with 15 or more years of service with Park Nicollet may qualify for a special catch-up contribution. Team member contributions: 2017 max - $18,000 pretax. This limit is not affected by any contribution you may make to either the 401(k) or the 403(b) plans. Catch-up contributions may be allowed in the last 3 years before retirement if prior year contributions were underutilized. ^The following chart compares Traditional pretax contributions to Roth after-tax contributions. Consider this when deciding how you want to make your deferrals. Traditional Roth Contributions Pretax, lowers current taxable income* After-tax Earnings Tax-deferred Tax-deferred Withdrawals Required minimum distributions Income tax due on all contributions and earnings (10% IRS penalty may apply before age 59½) Must begin after age 70½ (unless you re still working) No tax due on qualified** withdrawals Can avoid with rollover to Roth IRA *Federal and most states. **You must hold the account at least five years and past age 59½. Other withdrawals may be subject to a 10% IRS penalty if you are under age 59½.

3 Park Nicollet Contributions Park Nicollet s matching contribution is discretionary; paid annually, when distributed typically by the end of the first quarter following the plan year. Park Nicollet s matching contribution is based on a maximum of 4% of eligible compensation: $.40 per $1 of team member deferral will be budgeted each year. This amount may increase to $.50 based on the financial performance of Park Nicollet. Park Nicollet will make an automatic contribution each year equal to 4.5% of eligible compensation, plus an additional 5.2% of eligible compensation in excess of 100% of the Social Security Wage Base for team members who meet the work hours (1,000 hours per year) and last day (12/31) requirements. Park Nicollet s matching contribution is discretionary and paid annually to the applicable group, when distributed typically by the end of the 1 st quarter following the plan year. Park Nicollet s matching contribution is based on a maximum of 4% of eligible compensation: $.40 per $1 of team member deferral will be budgeted each year. This amount may increase to $.50 based on the financial performance of Park Nicollet. MNA members are eligible for the match. No employer contributions. Eligible compensation used for calculating the automatic contribution is limited to a maximum of $270,000. Vesting Team member salary deferral and employer matching contributions are always 100% vested. Team member salary deferral and employer matching contributions are always 100% vested. Team member salary deferral contributions only; always 100% vested. Employer automatic contributions only; vesting based on years of service: Less than 2 yrs = 0% 2 yrs = 33 1/3% 3 yrs = 66 2/3% 4 or more yrs = 100%

4 Loans Participants may borrow the lesser of Participants may borrow the lesser of $50,000 Not available. $50,000 or 50% of their vested account or 50% of their account balance. balance. Loans are repaid through payroll deduction. Loans are repaid through payroll deduction. Minimum loan: $1,000. Minimum loan: $1,000. One outstanding loan allowed in the plan at Two outstanding loans allowed in the plan at any time. any time. Loan fee: $75. Loan fee: $75. Should you leave Park Nicollet with an Should you leave Park Nicollet with an outstanding loan, you may continue making outstanding loan, you may continue making loan repayments via coupon. loan repayments via coupon. Distributions If you leave Park Nicollet, you can keep your assets in the plan, where you may find administrative expenses to be lower than those for options available to you as an individual outside of the plan. If you decide to take your account out of the plan, funds may be withdrawn in the case of these events:* If you leave Park Nicollet, you can keep your assets in the plan, where you may find administrative expenses to be lower than those for options available to you as an individual outside of the plan. If you decide to take your account out of the plan, funds may be withdrawn in the case of these events:* Funds may be withdrawn in the case of these events:* 1 Attainment of age 70 ½ Severance of employment Unforeseeable emergencies Retirement at age 65 or older Termination of employment Attainment of age 59½ for Employee Contributions, PNHS matching and Automatic Contributions, Rollover Contributions Attainment of Age 62 for Former PNHS Pension Contributions Financial hardship (as defined in the plan) Disability (as defined by Social Security) Retirement at age 65 or older Termination of employment Attainment of age 59½ Financial hardship (as defined in the plan) Disability (as defined by Social Security) *Conditions and restrictions may apply as defined in the plan; distributions may be eligible for rollover except for distributions from the 457(b) plan, which are only eligible for transfer to other eligible 457(b) plans. 1 Please note that the earliest date you may elect to begin receiving distributions from the 457(b) Plan is April 1 st following the year of your termination. You have the option of delaying your distribution to some future date beyond April 1 st following the year of your termination. You must make an election on your distribution by March 2nd following the year of your termination. If no election is received, your account will be paid out in full at that time. Information will be sent to your current address on file upon receipt of your Date of Termination by Transamerica.

5 Investment Options Brokerage option Schwab PCRA 4. Brokerage option Schwab PCRA 4 (403(b) limited to mutual funds only) Brokerage option Schwab PCRA 4 2 The Guaranteed Pooled Fund is a pooled separate account offered through Transamerica Financial Life Insurance Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY 10528, which provides the guarantee of principal and interest. Transamerica Retirement Solutions is affiliated with TFLIC. The fund is subject to the risk that the insurance company providing the guarantee of principal and/or interest will fail to meet its commitment. 3 Target date 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. 4 Schwab Personal Choice Retirement Account (PCRA) is not a fund but rather a self-directed brokerage account maintained at Charles Schwab & Co., Inc. You must individually apply for PCRA and are solely responsible for your fund selections made under the PCRA. Commissions and transaction fees may apply to fund trades placed outside of the Schwab Mutual Fund OneSource program or trades on other investment vehicles available through Schwab. An annual fee of $50 will be applied by Diversified if you invest in the Schwab PCRA. Securities purchased through the PCRA are available through Charles Schwab & Co. Inc., (Member SIPC). Charles Schwab & Co., Inc. is not affiliated with Transamerica. Descriptions of plan features and benefits are subject to the plan document. The plan document will govern in the event of any inconsistencies. Note that contributions in a 457(b) deferred compensation plan of a tax-exempt employer are part of the employer s general assets. 457(b) plan assets are subject to the employer s creditors. This material was prepared for general distribution. It is being provided for informational purposes only and should not be viewed as an investment recommendation. If you need advice regarding your particular investment needs, contact your financial professional. Securities offered by Transamerica Investors Securities Corp. (TISC), 440 Mamaroneck Avenue, Harrison, N.Y Park Nicollet Health Services has selected Transamerica Retirement Solutions (Transamerica) as your retirement plan provider, but there are no other affiliations between Park Nicollet Health Services and Transamerica or its affiliate, TISC PT_B_PN (05/17)