Hershey 401(k) match, vesting and fees

A participant’s interest in the Company’s contributions (including CRC and SRC) vests at the completion of three years of service with the Company, retirement, death, disability, or attainment of age 65, as defined by the Plan. However, effective January 1, 2009, all eligible employees not covered by a collective bargaining agreement vest at the completion of two years of service with the Company. A participant vests immediately in their contributions and related investment earnings.

Any eligible employees hired on or after January 1, 2007 are automatically enrolled in the Plan after 30 days. Participants, who are automatically enrolled are enrolled with a 3% pre‐tax deferral and defaulted into the Vanguard Target Retirement Trust, Trust I share class, closest to their 65th birthday. These participants are also automatically increased each year by 1% until they reach the auto‐increase cap of 6%. Effective May 1, 2008, any eligible employees hired on or after May 1, 2008 are automatically enrolled with a 4% pre‐tax deferral. The Plan also automatically enrolled with a 3% pre‐tax deferral any current employees as of May 1, 2008 who were not participating in the Plan and never made an election to not participate. Also effective May 1, 2008, the auto‐increase cap of 6% was raised to 10% for all participants who are automatically enrolled.

The Plan also allows Roth 401(k) and post‐tax contributions. Accordingly, earnings on the Roth 401(k) contributions to the Plan will not be subject to federal income tax when distributed or withdrawn under the terms of the Plan if the participant is at least age 59 1⁄2 and made their first Roth 401(k) contribution to the Plan at least 5 years earlier.

The Plan includes a loan provision under which all participants with a vested balance of $2,000 or more are eligible to apply for a loan. Participants can borrow up to 50% of their vested account balance subject to a minimum of $1,000 and a maximum of $50,000 at an interest rate of prime plus 1%. Loans are limited to amounts for which monthly repayment is equal to 20% of participants’ monthly compensation. The normal repayment period is from 1 to 5 years; however, loans for the purchase of a primary residence can extend up to 15 years. Loans are secured by the participants’ entire interest in the Plan. Irrevocable payroll withholding authorization is required to obtain a loan. Interest rates on outstanding loans ranged from 3.75% to 10.50% and 3.75% to 9.50% as of December 31, 2024 and 2023, respectively.