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Plan participants may voluntarily make qualified
retirement contributions to the Plan
which are deductible by the
participants for federal
income tax purposes under Section
401(k) of the Internal Revenue Code
(“IRC”) or may be
made after-tax in the form of
a Roth elective
deferral 401(k) contribution (collectively,
401(k) Contributions).
The Plan allows employees to elect to contribute, through payroll
deductions, stated percentages from 1% to 50% of their compensation, as defined
under the Plan, not to exceed $23,000 for year 2024
and $22,500 for year 2023, in accordance with the deferral limitations for such years
under the IRC.
For Plan years beginning on and
after January 1, 2021, the Employer Match is a percentage of participant 401(k)
Contributions set by the Company in its discretion.
Starting with the 2021 Plan Year,
this percentage was set at 100% of participant 401(k) Contributions up to the lesser of 7%
or the
participant’s deferral percentage,
multiplied by the participant’s base compensation,
as defined under the Plan.
Effective January 1,
2025, the Employer Match was set at 100% of participant 401(k) Contributions
up to the lesser of 5% or the participant’s deferral
percentage, multiplied by the participant’s
base compensation, as defined under the Plan.
For the 2024 and 2023 Plan years, the
Employer Match was allocated 100% to the participant’s
investment elections on file, subject to a 20% allocation limit to the Henry
Schein, Inc. Common Stock Fund.
Participants age 50 or over are permitted to make additional catch-up 401(k)
Contributions once the participant has reached a limit on
those contributions imposed either by
the Plan or
by law.
The extra amount a
participant may contribute may not
exceed $7,500 in each
of the years 2024 and
2023.
Participants may also contribute amounts representing distributions
from other qualified defined benefit or
defined contribution plans (rollover).
The Plan provides
for the automatic enrollment in the Plan, at a deferral percentage of 3% of compensation,
of eligible employees
initially hired by
the Company or
its participating affiliates on
or after March
1, 2014, unless
the employee elects
not to make
401(k) plan
contributions or elects to make 401(k) Contributions at a different
percentage.
(c) Participants’ Accounts
Each participant’s account
is credited with the participant’s 401(k) Contributions
and the Employer contributions and an allocation of
net Plan earnings.
Expenses directly related to participant transactions are deducted from the respective
participant’s account.
Participants also have the option to direct up to 20% of their account balances
to common shares of Henry Schein, Inc.
(d) Vesting
Participants are immediately vested in their 401(k) Contributions plus actual
earnings thereon.
Vesting
in the Profit Sharing
Contribution and the Employer Match, plus actual earnings
thereon, is based on years of continuous service, on a graded scale as
follows:
Vested
Vesting
percentage
2 but less than 3 years
20%
3 but less than 4 years
40%
4 but less than 5 years
60%
5 or more years
100%
(e) Investments
Participants direct the investment of their 401(k) Contributions and Employer
contributions into various investment options offered by
the Plan.
The Plan currently offers nine mutual funds, sixteen common
collective trust funds, and a Company stock fund, subject to
certain limitations, as investment options for participants.
(f) Notes Receivable from Participants
Participants may borrow up to a maximum of the lesser of $50,000 or 50% of their vested account balance from their accounts pursuant
to rules set forth in the Plan document.
The minimum amount that may be borrowed is $1,000 and only two loans may be made in any
calendar year, and no more than two loans may be
outstanding at any time.
The loans are secured by the balance in the participants’
accounts and bear interest at prevailing rates.
The loans must be for a term of five years or less (ten years if the loan is for the purpose
of purchasing a principal residence).
Principal and interest are paid ratably through payroll deductions.
If an employee is terminated and
has an outstanding loan balance at the
time of termination, the employee will
be permitted to repay any
outstanding loans directly to
the Trustee.
The employee may also
roll-over any outstanding loans,
as part of
a rollover of
the terminated
employee’s entire vested account
balance to certain other retirement plans in which the terminated employee
participates.
Notes
receivable from participants are valued at the aggregate of the unpaid principal balance and accrued but unpaid interest at the end of the
period.
No allowance for credit losses has been provided as of December 31, 2024 and 2023.
Delinquent participant loans are
recorded as distributions based on the terms of the Plan document.