Advocate Health Care
Benefits
Retirement

 
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Portable Pension Plan

The Portable Pension Plan is a cash-balance retirement plan that is funded and invested by Advocate. For each calendar year in which you work 1,000 hours, you'll receive a contribution to a cash balance "account" based on your eligible pay. Contributions in your account earn a guaranteed interest rate that is determined at the beginning of each year.

It takes no effort on your part to participate in the plan; Advocate funds this benefit entirely on your behalf. Highlights of the plan provisions are described below.

You may access information about your account balance in the Portable Pension Plan using Advocate InfoExpress. You need your PIN to access your personal account data.

Eligibility requirements
If you are a new associate or newly benefits eligible, you will become eligible to participate once you have reached your one-year anniversary date (if you've worked 1,000 hours).

The benefit formula
Under the plan, Advocate makes the following contributions to your account each year, once you work 1,000 hours:

5% of your eligible pay, up to 85% of the Social Security Wage Base* (SSWB), plus
7% of your eligible pay, up to $225,000 in 2007 ($230,000 in 2008) that exceeds 85% of the SSWB (the current IRS limit).

Your account will grow from year to year with the value of these contributions and interest credits.

*The Social Security Wage Base is the maximum amount of pay that is subject to Social Security taxes. The SSWB is determined by the Social Security Administration each year. The SSWB is $97,500 in 2007 ($102,000 in 2008).

Vesting
You are vested once you have five years of vesting service under the plan. A year of vesting service is a calendar year in which you work 1,000 or more hours. Once you become vested, you have an irrevocable right to receive a benefit under the plan.

To receive your benefit
If you are vested, you may receive your benefit any time after you end your employment with Advocate. One of the biggest advantages of this plan is that it provides a portable benefit that goes with you if you leave before retirement. You may elect to receive your vested benefit in the form of a lump-sum payment at the time you leave.

If you become totally and permanently disabled while employed or you die while employed at Advocate, you'll become fully vested in your benefit. If you're already vested at the time of your disability, you'll continue to receive the annual contributions that would have been made at the time you became disabled, until age 65. Your account will continue to grow with these contributions and applicable interest credits.

Important information
Payments from the plan are subject to federal tax rules (and state tax rules, if applicable) in effect at the time of any payment from the plan. More information is available in the Special Tax Notice Regarding Plan Payments.