JPS Health Network 401(a) Plan

Tarrant County Hospital District d/b/a JPS Health Network has adopted the JPS Health Network 401(a) Plan to help its team members save for retirement. Team Members of Acclaim Physician Group, Inc. may also be entitled to participate.

This Plan is a special type of retirement plan commonly referred to as a profit sharing plan. It allows the employer to make contributions on behalf of eligible team members without requiring those amounts to be included in income. Contributions are deposited directly into the Plan on the team member's behalf and are not taxed while held in the Plan; earnings on contributions are also not taxed while they remain in the Plan.

Plan Number: 002
Employer: Tarrant County Hospital District d/b/a JPS Health Network
Address: 1500 South Main Street, Fort Worth, TX 76104
Telephone: 1-817-927-1230
Employer Identification Number (EIN): 75-6000439
Participating Employer: Acclaim Physician Group, Inc.
Trustee: Empower Trust Company, LLC, 8515 East Orchard Road, Greenwood Village, Colorado 80111
Plan Year: January 1 – December 31
Effective Date: April 1, 2026 (originally effective October 1, 2002)
Normal Retirement Age: 65

Plan Compensation is used to determine contribution amounts. The IRS compensation dollar limit for 2025 is $350,000 ($360,000 in 2026). No contribution may be made on Plan Compensation above these limits.

Plan Compensation includes total taxable wages or salary, including pre-tax salary reduction contributions under cafeteria or medical reimbursement plans, and generally includes compensation paid after termination (if paid by year-end or within 2.5 months following termination).

Plan Compensation excludes:
- Deemed Section 125 compensation
- Continuation payments to disabled participants paid after severance of employment
- Overtime; 2nd overtime shift; 3rd overtime shift; lump sum; signal 5 pay; tuition reimbursement; moving allowance; car allowance; severance pay; incentive pay; PTO cash out; on-call pay; weekend days; educational incentive pay; shift incentive; team leader pay; referral pay; and home health pay.

Only compensation earned while the team member is a participant in the Plan is counted.

A participant is Disabled under the Plan if any of the following criteria are met:
1. Eligible for Social Security disability benefits;
2. Determined by the Plan Administrator on the basis of medical evidence satisfactory to it; or
3. Unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or that has lasted (or can be expected to last) for a continuous period of not less than 12 months, supported by medical evidence.

The employer may make Matching Contributions based on the amount of contributions the team member makes under the JPS Health Network 403(b) Plan. There are two formulas:

1. Fixed Matching Contribution Formula (Standard Match): 50% of 403(b) Plan contributions each payroll period. Only contributions up to 4% of Plan Compensation are eligible for this match. Applicable to team members who were eligible for the JPS Pension Plan on or before September 30, 2020 and who remain eligible.

2. Special Matching Contribution Formula (Enhanced Match): 100% of 403(b) contributions, not to exceed 5% of Plan Compensation. Applicable to:
- Team members hired or rehired after September 30, 2020;
- Team members hired on or prior to September 30, 2020 who were in a non-Pension-eligible classification on October 1, 2020 (e.g., PRN, part-time under 30 hrs/wk, or full-time under age 21) but who transfer to full-time or attain age 21 after that date;
- Team members participating in the JPS Pension Plan on October 1, 2020 or October 1, 2021 who subsequently lose Pension Plan eligibility and have no further opportunity to rejoin.

The following team members are NOT eligible for the enhanced match:
- Team member eligible for the JPS Pension Plan on October 1, 2020 or October 1, 2021 who declined to join by their last opportunity;
- Team members who were contributing active participants in the JPS Pension Plan on October 1, 2020 or October 1, 2021 and subsequently discontinued contributions while employed as a Covered Team Member.

The employer is authorized to make Employer Contributions on behalf of eligible team members. There are two formulas:

1. Fixed Employer Contribution Formula: Contributions are determined in accordance with the terms of any employment contract that addresses retirement benefits. The employer retains the right to amend the Plan to reduce or eliminate this contribution.

2. Special Employer Contribution Formula:
- Contribution amounts per Section 6-2(b)(3) shall be made to Acclaim Practitioners in accordance with their individual employment contracts.
- The contribution amount to the CEO of JPS Health Network will equal an amount sufficient to reach the Annual Additions limit under IRC Section 415, in accordance with her employment contract.

Team members may roll over account balances from another qualified retirement plan or IRA into this Plan without incurring tax liability. Rollover contributions are always 100% vested.

Rollovers may be accomplished in two ways:
1. Direct rollover: Ask the prior plan administrator or trustee to transfer all or a portion of the distribution directly to this Plan.
2. Indirect rollover: Receive a distribution from the prior plan and deposit it into this Plan within 60 days.

Accepted rollover sources include: qualified plans under Code Section 401(a) or 403(a), 403(b) plans, 457 plans, and IRAs. Rollovers of Team Member (after-tax) contributions are not allowed. The team member must be a current team member to make a rollover contribution. The Plan Administrator may restrict acceptance of certain rollover types.

The IRS imposes a maximum limit on total contributions (including employer contributions, team member contributions, and forfeitures allocated to accounts) under the Plan. For 2025, the dollar limit is $70,000 ($72,000 in 2026). The limit is the lesser of this dollar amount or 100% of annual compensation. For years after 2026, the limit may be adjusted for inflation.

Example: If you earn $60,500 in 2026, the maximum total contributions you may receive is $60,500 (lesser of $72,000 or 100% of $60,500).

Your vested account balance is the amount in the Plan for which you have earned an ownership interest. If you terminate employment before becoming fully vested, non-vested amounts may be forfeited.

Automatic 100% vesting occurs upon:
- Reaching Normal Retirement Age (age 65) while still employed;
- Plan termination;
- Death while still employed;
- Termination of employment due to Disability.

Rollover contributions are always 100% vested.

If you terminate employment before becoming fully vested, non-vested benefits will be forfeited as follows:

- Forfeiture upon distribution: If you take a full distribution of your vested benefit upon termination, your non-vested benefit is immediately forfeited. If you are totally non-vested, you are deemed to have received a distribution.
- Forfeiture upon five consecutive Breaks in Service: If you do not take a distribution upon termination, your non-vested benefit remains in your account until you have five consecutive Breaks in Service, at which point it is forfeited.

Forfeited amounts may be used to pay Plan expenses or allocated as additional Employer contributions or used to reduce other Employer contributions.

Vesting Service Exclusions (effective January 1, 2027): Vesting service earned prior to a participant's severance from employment shall not be used in calculating any Employer or Matching Contributions allocated to the participant after being rehired.

Break in Service: A Break in Service occurs if you are terminated for a period of at least 12 consecutive months. Elapsed Time method applies; service spanning rule is not used. Second year of Maternity/Paternity Absence is credited.

The Plan permits participants to take a loan from their vested Plan benefits. The Plan Administrator will develop procedures for administering participant loans, including application procedures and limits on total outstanding loan amounts. Contact the Plan Administrator for more information.

When you terminate employment, you may be entitled to a distribution of your vested account balance.

Vested account balance over $5,000: You may receive a distribution within a reasonable period following termination. If you do not consent, your balance remains in the Plan. Distribution options include:
- Lump sum (eligible for rollover to IRA or another qualified plan)
- Installment payments in equal annual installments over a set number of years (installment periods of 10 years or more are not eligible for rollover)

Vested account balance of $5,000 or less: You are eligible to receive a lump sum distribution within a reasonable period following termination. You may elect to receive in cash or roll over to an IRA or qualified plan. If you do not consent, your benefit remains in the Plan until you consent or a no-consent distribution is permissible.

In-service distributions: You may withdraw vested amounts while still employed only if you satisfy the Plan's in-service distribution requirements. Rollover contribution amounts may be withdrawn at any time. An in-service distribution is available once you reach age 59½.

Required distributions: Required minimum distributions must commence by your Required Beginning Date, which is April 1 following the calendar year in which you attain age 70½ (age 72 if born after June 30, 1949), or terminate employment, whichever is later.

Distribution upon disability: If you terminate employment due to disability, you are eligible to receive a distribution of your vested account balance under normal distribution rules.

Distributions upon death: Your remaining vested benefit will be paid to your designated beneficiary. If married, your spouse is the default beneficiary unless you designate otherwise. Beneficiary designation of a spouse is automatically revoked upon formal divorce unless a new designation is executed or a QDRO is in place.

Default beneficiaries (in order): Spouse; if none, issue per stirpes; if none, surviving parents in equal shares; if none, estate.

Plan distributions are generally included in taxable income in the year received. Distributions before age 59½ are generally subject to a 10% early withdrawal penalty tax in addition to ordinary income tax (exceptions may apply).

You may roll over most distributions to an IRA or another qualified plan to avoid current taxation. Direct rollover: distribution goes directly to another plan or IRA. Indirect rollover: distribution is paid to you and you must deposit it into an IRA or plan within 60 days.

If you choose not to directly rollover an eligible distribution, the Plan Administrator must withhold 20% for federal income tax.

Payments NOT eligible for rollover (and not subject to 20% mandatory withholding):
- Annuities paid over your lifetime
- Installment payments for 10+ years
- Required minimum distributions at age 70½ (72 if born after June 30, 1949)
- Hardship withdrawals
- Certain corrective distributions

Your Plan benefits cannot be sold, used as collateral for a loan, given away, transferred, garnished, or attached by creditors, except as provided by law. A Qualified Domestic Relations Order (QDRO) may require that part of your benefit be paid to a spouse or children. Contact the Plan Administrator for QDRO procedures, available at no charge.

The Plan is valued on a daily basis (each business day the New York Stock Exchange is open). Gains or losses are allocated to participant accounts at the end of each such day.

Plan fees may be paid by the Plan or by the Employer. If not paid by the Employer, fees are allocated to participant accounts proportionally by account balance or equally per participant. Investment-related fees are borne by participants who direct their investments.

Fees that may be charged directly to your account include:
- Fees related to processing distributions upon termination of employment
- Fees related to processing in-service distributions (including hardship distributions)
- Fees related to processing required minimum distributions at age 70½ (72 if born after June 30, 1949) or termination of employment, if later
- Participant loan origination fees and annual maintenance fees
- Charges related to processing a QDRO

Participants who direct investments will receive an annual notice describing fees that may be charged and a separate notice of actual fees charged to their account.

Plan amendments: The employer has authority to amend the Plan at any time. Amendments may not decrease a participant's vested benefit (except as permitted by the Internal Revenue Code) or eliminate protected benefits. The Plan may be amended to increase, decrease, or eliminate benefits on a prospective basis.

Plan termination: The employer may terminate the Plan at any time (including by complete discontinuance of contributions or partial termination). Upon full termination, all participant accounts become 100% vested. Participants are entitled to a full distribution of their vested benefit, which can be rolled over to a qualified plan or IRA. If no consent is given, the Plan Administrator will transfer the vested benefit to an IRA established on the participant's behalf.

Partial termination: If an amendment or severance excludes a group of previously covered team members, a partial termination may occur. Only affected participants become 100% vested.

If you believe you are entitled to a benefit that has not been provided, or if you disagree with the amount of your benefit, contact the Plan Administrator to request a review of your benefit determination. The Plan Administrator may request additional information and will examine relevant facts and Plan provisions.

If your request is denied in whole or in part, you may request that the Plan Administrator review the determination. The Plan Administrator has full discretionary authority to interpret the terms of the Plan and determine eligibility for benefits.

Acclaim Physician Group Supplemental Retirement Plan merged into this Plan effective June 30, 2020.

Retirement Service Center

1-817-702-1030

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