EXECUTIVE SAVINGS PLANS
At United HealthCare, we are committed to providing you opportunities that help you prepare for a financially
secure future. The 401(k) Savings Plan, Employee Stock Purchase Plan, and Employee Stock Ownership Plan
offer all eligible employees options for accumulating savings and retirement assets.
However, these plans are subject to restrictive tax legislation. Recognizing that this legislation limits the amount
you can defer into the plans, United HealthCare created the Executive Savings Plans. These non-qualified
deferred compensation plans allow you to defer virtually as much of your compensation as you wish through
means that leverage the current tax environment.
The non-qualified plans are not subject to the same restrictions placed upon qualified plans, such as the annual
401(k) dollar deferral limit. The non-qualified plans are unfunded plans, which means that funds or contributions
are not set aside in a trust and are subject to general creditors of United HealthCare.
Participating in the non-qualified plans reduces your current take-home pay by deferring your salary to a future
point in time. Before deciding whether or not to enroll in the non-qualified plans for 1997, be sure to consider
your own tax and financial needs. You may want to consult your personal tax or financial advisor to weigh how
these plans might fit into your long-term financial goals.
WHAT IS ELIGIBLE COMPENSATION?
Your Part I and II contributions to the non-qualified plans are based on eligible compensation. For the purposes
of the plans, eligible compensation generally means the same compensation as that used to determine the amount
of elective deferrals under the United HealthCare 401(k) Savings Plan.
PLAN ELIGIBILITY REQUIREMENTS
To participate in the Executive Savings Plans, you must meet certain eligibility requirements.
1. For all three Parts under the Plans, you must be an employee with at least two months of service in an eligible
class at U