Hugh Chatham Memorial Hospital 401(k) match, vesting and fees

Participants are immediately vested in their participant contributions plus actual earnings thereon. Vesting in the Hospital’s matching and profit-sharing contributions portion of their account, plus actual earnings thereon, is based upon the number of years of continuous service. A participant is 100% vested after five years of credited service.

Upon becoming eligible to participate, an automatic 4% of compensation will be deferred on the eligible employee’s behalf, as specified in the plan document, until changed by the employee. The Plan also has an autoescalate feature of 1% per year up to 10%.

Participants are able to designate a portion or all of their contributions made as Roth (after-tax).

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Each participant is permitted to have a maximum of one loan outstanding at any time. The maximum term of repayment for loans, other than those utilized to purchase a primary residence, is five years. The maximum term of repayment for a loan utilized to purchase a primary residence is 15 years. The loans are secured by the balance in the participant’s account and bear interest at a reasonable rate as determined by the plan administrator. At December 31, 2024, outstanding loans bore interest rates ranging from 3.25% to 8.50%. Principal and interest are paid through the employee’s bank account that is set up at the time the loan is approved. Fidelity monitors the repayment of all loans.