Plan Summary

Preamble

The University of Virginia Medical Center (the "Medical Center") established the Defined Contribution Retirement Plan for Employees of the University of Virginia Medical Center (the "Plan"), a money purchase pension plan, effective July 1, 1993. The Plan was amended and restated on January 1, 1999.

Participation

When do I become eligible to participate in the Plan?
You may become eligible to participate in the Plan if you are (1) a full-time employee (as defined by the Medical Center) of the Medical Center, or (2) a part-time salaried employee (as defined by the Medical Center) of the Medical Center and you have signed a flexible staffing agreement. In addition, if prior to January 1, 1999, you were a Health Care Professional, (as defined by the Medical Center at that time) employed by the Medical Center and working at least twenty (20) hours per week you were eligible to participate in the Plan.

How do I enroll in the Plan?
New employees will automatically be enrolled in the Plan. If you were previously a participant in the Virginia Retirement System (VRS), you have the option to join the Plan or remain with the VRS. If you fail to choose within 90 days from your date of hire, you will automatically be enrolled in the Plan.

When does my participation in the Plan terminate?
You will continue to be a participant in the Plan until you no longer meet the eligibility requirements of the Plan. However, if you were a participant in the Plan on December 31, 1998, but have not otherwise met the eligibility requirements at that time, you will continue to participate in the Plan until your employment with the Medical Center terminates.

If my participation in the Plan terminates, can it later be reinstated?
Yes. If you were a former employee who was eligible to participate in the Plan and subsequently become eligible to participate in the Plan, you will be eligible to participate in the Plan and may enroll in the same manner that new employees will enroll.

When can I receive my account balance?
You must actually separate from service with the University to be eligible to receive your account balance.

Contributions

How are contributions made to my account under the Plan?
If you were hired prior to September 30, 2002, the Medical Center will contribute to your account for the plan year an amount equal to 8% of your annual base pay (not including other compensation such as overtime or special payments, etc.). If you were hired on or after September 30, 2002, the Medical Center will contribute to your account for the plan year an amount equal to 4% of your annual base salary (not including other compensation such as overtime or special payments, etc.).

Please note that there may be IRS limits placed on the amount of annual base salary considered when the Medical Center makes its contribution.

Am I required to make contributions to my account under the Plan?
No. In fact, participants are not permitted to contribute to the Plan. All contributions to the Plan are made by the Medical Center.

What happens if I am being reemployed as a returning veteran?
Beginning on October 13, 1996, if you are in qualified military service, meaning that you are serving in the armed forces of the United States (including the National Guard and the commissioned corps of the Public Health Service), and you return to employment with the Medical Center within ninety (90) days of the end of your military leave (or such longer period of time as your reemployment rights are protected by law), the Medical Center will make the contributions on your behalf that you otherwise would have been entitled to but for your absence due to the military leave.

When determining the amount of your contributions, the Plan administrator will treat you as receiving your base pay (excluding other compensation such as overtime and special payments) during the period of qualified military service equal to the amount of your base pay you would have received from the Medical Center during such period had you not been in qualified military service or, if such rate of pay is not reasonably certain, your base pay during (I) the twelve (12) month period immediately before the qualified military service or, (II) if shorter, the period of employment immediately before the qualified military service.

If you are entitled to receive a contribution, you will not be entitled to receive corresponding retroactive earnings attributable to such contribution.

Are there any limitations on the contribution amounts?
Yes. The IRS imposes certain limitations on the contribution amounts made to your account. If you will be affected by these limits, the benefits office will notify you.

How are the contributions invested?
You direct the investment of contributions by selecting from among the investment vendors and investments designated by the University as appropriate for retirement investing. These investments are subject to change. The University will not be responsible for gains and losses associated with your investment selections.

Vesting

When will I become fully vested under the Plan?
You will be 50% vested in the Medical Center contributions made to your account when you begin participating in the Plan and will become 100% vested after you have participated in the Plan for 12 months.

Inspection

Can I review a copy of the Plan?
Yes. A copy of the complete Plan may be inspected in the University's benefits office at 914 Emmet Street, Charlottesville, Virginia, during reasonable times.