HVCU 401(K) PLAN Contribution & Employer Match

HVCU 401(K) PLAN Average Participant Retirement Account Value

HVCU 401(K) PLAN Estimated Average Employee Contribution Amount

• Eligible participants are permitted to elect to have a percentage, limited by Plan provisions, of their compensation contributed as pre-tax 401(k) or Roth contributions to the Plan.
• The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan.
• Automatically enrolled participants have their deferral rate set at 3% of eligible compensation, and their contributions invested in the designated default fund until changed by the participant.
• On or after May 1 of each Plan year, the automatic pre-tax elective deferral contribution rate will be automatically increased by 1% up to a maximum deferral of 12%.
• Additionally, each active participant who affirmatively elected to defer a percentage of compensation less than 12% will have their deferral percentage stated in his or her elective deferral agreement increased by 1% on or after May 1st, up to a maximum pre-tax deferral of 12%.
• Effective May 1, 2023, the automatic deferral rate was increased from 3% to 4% and the maximum deferral for participants subject to automatic increase feature was increased from 12% to 15%.
• Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions.

• For the years ended December 31, 2024 and 2023, the HVCU matching contribution was 50% of deferral contributions up to 6% of eligible compensation.
• For employees with an employment commencement date on and after January 1, 2011; an employment commencement date before January 1, 2011, and was never eligible for the HVCU as adopted by Pentegra Defined Benefit Plan for Financial Institutions: or reemployment commencement date on or after January 1, 2011, and is no longer receiving a benefit accrual under the HVCU as adopted by Pentegra Defined Benefit Plan for Financial Institutions; HVCU shall make an additional nonelective contribution in an amount equal to a percentage of compensation.
• Employees who are actively participating in the Plan with zero to two years of service will receive 2% of compensation, employees with three to six years will receive 3% of compensation, and employees with seven or more years will receive 4% of compensation.
• Effective January 1, 2024, employees hired prior to January 1, 2011 will be eligible for the additional nonelective contribution that will be equal to 4% of eligible compensation.

• Participants are immediately vested in their contributions and any HVCU nonelective contributions plus actual earnings thereon.
• Vesting in the HVCU matching contribution portion of their accounts, plus actual earnings thereon, is based on years of credited service.
• A participant who is hired on or after January 1, 2011, is 100% vested after five years of credited service and a participant who is hired before January 1, 2011, is 100% vested after three years of service based on graded vesting schedules.
• Notwithstanding the above, a participant is fully vested upon reaching normal or early retirement age, death, or permanent disability.