Saving for retirement is important, that is why Southwest offers the Southwest Matching Defined Contribution Retirement Plan [403(b)]. Eligible employees are able to participate in the 403(b) plan immediately upon hire. Because saving is so important, newly hired employees are automatically enrolled in the 403(b) Plan with a deferral rate of 3% after 30 days of employment. Southwest offers both traditional pre-tax and after-tax Roth investment options. The Southwest 403(b) Plan offers many different investment options for you to choose from.

If you do not make an investment election then your contributions will automatically be invested for you into a default investment fund which is based on your target retirement age. You may access your account at any time by going to www.principal.com or by calling 1-800-547-7754.

In addition to your deferrals, Southwest will make an employer matching contribution of 50% on the first 6% of your deferred earnings. An employee will become eligible to receive matching contributions on the date he or she completes one year of eligibility service. The matching contributions occur after the end of the plan year. All must be employed by Southwest on December 31st of each year, unless your termination is due to death, disability or attainment of normal retirement age.

Southwest will also make an additional contribution to your 403(b) in the form of our Employer Savings Contribution (ESC). Southwest contributes the ESC to your 403(b) plan regardless of whether you contribute to the plan. Employees become eligible for the Employer Savings Contributions (ESC) on the date he or she completes one year of eligibility service. The ESC you receive will be equal to a percentage of your annual compensation. The percentage is determined by a “points” formula, with your points being the total of your age and years of service at the end of the Plan year, per the ESC percentage chart. A year of service for this purpose is a plan year in which you complete 1,000 hours of service.

ESC Percentage Chart:

All money you contribute to the 403(b) plan is yours. To withdraw the company match or ESC, employees need to complete three (3) years of service to be fully vested in those portions of their 403(b) plan. A year of service for this purpose is a plan year in which you complete 1,000 hours of service. Employees will receive 1 year of service for every calendar year in which you work a minimum of 1,000 hours.

Boost your retirement savings by participating in the Southwest 403(b) plan:

• 50% matching contribution up to 6% of your pay
• Pre-tax or Roth or both are available
• Saving is easy through payroll deductions
• Retire Secure Meetings one on one meetings offered at Southwest

To access your retirement account, make changes to your deferrals, or for assistance with roll overs please go to: www.Principal.com; or call 1-800-547-7754 (Southwest 403(b) Plan Number: 708952)