I.     RETIREMENT PLAN OBJECTIVES

       Gonzaga University wants each faculty member and employee to have income to supplement Social Security benefits at 
       retirement. Gonzaga's formal 403(b) retirement plan allows participants to

• accumulate a substantial portion of retirement benefits for long term service with the University.
• accumulate retirement benefits which can be added to benefits from other employers for those who have served the University for a shorter time.

II.    PROVISIONS

       A.    Participation: Beginning the first day of the month following one year of service, all employees working a minimum of
               1,000 hours per year enroll in the University's 403(b) Defined Contribution Retirement Plan. Employees contribute 5%
               of their salary and the University contributes 8.5%.

               Employees may voluntarily contribute during the first year of employment, or make additional voluntary contributions
               beyond the required 5%. The University does not match voluntary contributions. Voluntary contributions are subject to
               IRS limitations.

               All contributions to the plan are tax deferred as provided under section 403(b) of the Internal Revenue Service Code,
              and reduce the employees gross taxable income by the contribution amount. Employees are 100% vested in all
               contributions and earnings from their participation date.

       B.    Investment Options: Gonzaga's policy is to use investment vehicles that provide a reasonable return to all participants.
              Many investment options are available. However, given the nature of retirement funds, the University selects only those
              investment options deemed prudent. To minimize risk, the University uses major financial service organizations with
              high industry ratings, substantial size, and experience.

              Individuals have varying financial needs and investment goals depending on their age, length of service, personal
              financial status, and risk tolerance. To accommodate these variances, the retirement plan allows participants to select
              fixed income and/or common stock options.

              While the University cannot advise individuals on investment selections, the plans will enable participants to make
              changes in their investment options during the course of their careers.

       C.   Retirement Committee: University administrators, including but not limited to the Vice President for Administration and
             Planning, the Vice President for Finance, the Assistant Vice President for Human Resources, Corporate Counsel and
             the Associate Director for Benefits and Safety, will meet annually to review the program in light of current economic
             conditions, benefit plan trends, and investment performance. University personnel may be represented on the
             Retirement Committee by the chair person of the Faculty and Staff Benefits Committees.