BENEFIT GUIDE. Getting On The Road To Wellness

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1 2015 BENEFIT GUIDE Getting On The Road To Wellness

2 Our benefit offerings protect the things that matter. Your benefits help you take care of the most important things in your life, and cover more than just medical costs. They protect your lifestyle and your future from unexpected pitfalls. They make sure your family is provided for in case something happens to you. Take a few minutes to look through this guide and consider how you can use these benefits to live a better, healthier life. WELCOME TO YOUR 2015 BENEFITS! The benefits included in this guide are for the 2015 plan year, which runs from January 1 to December 31, Cardinal s comprehensive benefit package includes: Medical and Prescription Drug Coverage Health Savings Accounts Dental Plan Options Vision Benefits Life Insurance Options Short- and Long-Term Disability Flexible Spending Accounts And more! It s important for you to take action and choose the benefits that best meet your needs. This guide contains a high-level overview of our various plan options so that you know what s available to you. To select the options that work best for you: Choose carefully. Once you enroll, you cannot make any changes or add coverage during the year (unless you have a qualified family status change see page 1). Review eligibility rules. You will be required to provide proof of eligibility for your dependents coverage. Complete the enrollment process by the deadline. If you do not complete the enrollment process in time, you will have no coverage for the coming year, with the exception of certain company-sponsored plans. Check your pay stub. Make sure your deductions are correct and contact Human Resources at immediately if they are not. CONTENTS ABOUT THIS GUIDE: This guide highlights the main features of many of the benefit plans sponsored by Cardinal. Full details of these plans are contained in the legal documents governing the plans. If there is any discrepancy between the plan documents and the information described here, the plan documents will govern. In all cases, the plan documents are the exclusive source for determining rights and benefits under the plans. Participation in the plans does not constitute an employment contract. Cardinal reserves the right to modify, amend or terminate any benefit plan or practice described in this guide. Nothing in this guide guarantees that any new plan provisions will continue in effect for any period of time. Enrollment Overview...1 Who is Eligible...2 Medical & Prescription Benefits...3 About Health Savings Accounts...5 Critical Illness & Accident Insurance...7 Dental & Vision Benefits...8 Flexible Spending Accounts...9 Life and AD&D Insurance Disability Coverage Employee Assistance Program (EAP) (k) Plan Important Contacts... Back Cover

3 ENROLLMENT OVERVIEW ANNUAL ENROLLMENT: NOVEMBER 13 DECEMBER 5, 2014 For current benefit-eligible employees, Annual Enrollment for benefits will take place November 13 December 5, Our new, personalized enrollment process is designed to help you get the best possible value from your benefit options. This year we are enrolling with the help of our partners at Hodges-Mace and their professional Benefit Counselors. You must speak with a Benefit Counselor to elect or waive benefits for the 2015 plan year. We hope you will enjoy this simple enrollment process and take advantage of personalized guidance from the counselors. This is a great opportunity for you to review and consider all of the benefits we offer to you and your family. Better yet, you will have the chance to ask specific questions, get detailed answers, and enroll in your benefits without filling out any paper forms! Depending on where you work, counselors will be available either on site or over the phone. Be on the lookout for posters or flyers that indicate whether counselors will be coming to your location. Make an Appointment You will be able to reserve a convenient meeting time by using the online scheduling tool. If a counselor is coming to your location, visit to make an appointment to meet with a counselor on site. If counselors are not coming to your location and you need to enroll over the phone, visit to make an appointment to speak with a counselor in the call center. Prepare for Your Enrollment Session Read this entire benefit guide. Write down any questions that you have. Gather all of your dependent information (i.e., full names, birth dates, Social Security numbers) and have it ready. Complete Your Enrollment to Confirm or Waive Coverage Even if you do not want to make ANY changes to your benefits from last year, you still need to speak with a counselor to indicate that you wish to continue current benefits or continue to waive coverage. NEW HIRES: ENROLL WITHIN 30 DAYS If you are a full-time employee working more than 30 hours per week, you have 30 days from your date of hire to enroll. If you enroll on time, coverage begins following 30 days of employment. If you do not enroll on time, you will be automatically enrolled in companysponsored benefits, such as basic life, core short-term disability, long term disability, and the EAP, and you will have to wait for the next Annual Enrollment to elect other benefits or change coverage. MAKING MID-YEAR CHANGES Once you make your benefit elections during annual Annual Enrollment or as a new hire, these choices remain in effect until the next annual Annual Enrollment, unless you have a qualified status change or you or your eligible dependents become eligible for coverage through special enrollment rules. This is an IRS rule. If you need to make changes as a result of a qualified status change or other allowable event, you must submit your change within 30 days of the event by completing a Benefit Changes/Enrollment form and returning it to Human Resources. If you do not return your form within 30 days, you will have to wait until the next Annual Enrollment to make new elections. Qualified status changes include, but are not limited to: Change in number of eligible dependents due to birth, adoption, placement for adoption, or death Gain or loss of dependent status (i.e., your child reaches the age limit for eligibility) Change in legal marital status, including marriage, divorce, or death of a spouse Change in residence or workplace that changes your or your dependent s eligibility for coverage Change in employment status, such as starting or ending employment, for you, your spouse, or your children For a more complete list of qualified status changes, refer to the Summary Plan Description which is available online on Cardinal s intranet site, Birdseed. NOTE: If you have Medicare or will become eligible for Medicare in the next 12 months, Federal law gives you more choices for your prescription drug coverage. Please refer to the complete Legal Notices Benefit Guide 1

4 WHO IS ELIGIBLE As a Cardinal employee, you can enroll yourself and your eligible dependents in a variety of plans offered through the company. If you leave the company, most benefits end on your last day of employment. EMPLOYEE ELIGIBILITY You are eligible to enroll in Cardinal s benefit plans if you are a full-time employee scheduled to work at least 30 hours per week. As a full-time employee, you are eligible for benefits following 30 days of continuous service. DEPENDENT ELIGIBILITY You may also cover your eligible dependents, including: Your legal spouse of the opposite sex. Working spouses, who are eligible for group coverage through their employer, will not be eligible for the Cardinal medical plans. Your eligible children up to age 26 for medical, dental, vision, and life coverage, regardless of student, financial, or marital status. Children are defined as your natural children, stepchildren, legally-adopted children and children for whom you are the court-appointed legal guardian. Physically or mentally disabled children of any age who are incapable of self-support. Proof of disability may be requested. If your child becomes ineligible for coverage (e.g., turning age 26 under the medical plan), you must notify the Department of Human Resources at DEPENDENT VERIFICATION New employees to the plan who cover dependents will be required to submit proof of dependent status. Below are some examples of required documentation. Dependent Type Spouse Child DOCUMENTATION GUIDELINES Required Documentation Marriage license, AND The first page of your last year s tax return (with financial information marked out). Birth certificate, OR The first page of your last year s tax return (with financial information marked out), OR Related court order. 2 Cardinal Logistics

5 MEDICAL OVERVIEW As a Cardinal employee, you have access to comprehensive medical coverage to protect you and your family from catastrophic medical costs. In this section, you will find information on the medical plans that Cardinal offers. Take the time to understand how these plans work, the coverage each provides, and how to use them to best meet the needs of you and your family. CHOOSING A MEDICAL OPTION All medical plans cover a wide range of services, from preventive care to routine care, to hospitalization and surgery. All three plans cover preventive care at 100% and include a prescription drug benefit, which covers prescriptions at participating pharmacies and mail-order drugs. $1,000 OAP Plan: With the OAP Plan, there is a network of providers and the amount the plan pays varies based on your use of that network. You always have the choice to go to any provider, but you ll pay less if you use an in-network doctor or hospital. CDHP $2,000 HSA and CDHP $4,000 HSA Plans: The Consumer-Directed Health Plans (CDHPs) offer a lower deduction per paycheck, but have a higher deductible that you must pay before your coverage begins. If you enroll in a CDHP plan, you are also eligible to enroll in a Health Savings Account provided through Cigna. As an employee, you can contribute pre-tax dollars through payroll deductions to your HSA account. Cardinal will match those contributions 100% up to the limits specified on the next page. This account is owned by you, as an individual, and can be used to pay for current health expenses as well as save for future qualified medical and retiree health expenses on a tax-free basis. Post-Deductible HRA For employees who have funds remaining in the HRA plan at the end of 2014, these funds will be converted to a post-deductible HRA beginning in January of Employees can use this money, regardless of the medical plan in which they enroll, to cover medical expenses incurred after reaching the deductible. More information regarding the post-deductible HRA will be mailed to your home. YOUR NETWORK OPTIONS The plans offer in-network and out-of-network benefits. When you need care, you decide whether to go to a Cigna innetwork doctor or to an out-of-network provider. If you receive care from in-network doctors and facilities, your out-of-pocket costs will be lower than if you use out-of-network providers and facilities because Cigna network providers discount their fees. And, with in-network providers, you generally do not have to file claims. If you choose to receive care from an outof-network provider, the medical plan pays a lower benefit and you must file a claim to receive reimbursement for covered expenses. You are also responsible for obtaining certification from Cigna for certain tests, surgeries, and other procedures. PRESCRIPTION DRUG COVERAGE If you enroll in one of the Cardinal medical plans, you will automatically receive prescription drug coverage. For the OAP and CDHP plans, prescriptions are provided through Cigna. When you need prescriptions, you can purchase them through a local retail pharmacy or, for medications you take on an ongoing basis, through the mail order program. Retail Prescription Program The retail prescription program uses a network of participating pharmacies. To receive the highest level of benefits, you must use a participating pharmacy. Prescriptions you fill at nonparticipating pharmacies are generally not covered. In the OAP plan, prescription drugs are not subject to the plan deductible and copays count toward the out-of-pocket maximum. In the CDHP plans, non-preventive prescription drugs are subject to the deductible, and coinsurance applies after the deductible is met. Mail Order Program The mail order program offers a convenient and cost-effective way to fill prescriptions for medications that you take on a regular basis (maintenance medications). When you use the mail order program, you receive a 3-month supply of medication for the cost of a 2-month supply. Your medications are mailed directly to your home. To order prescriptions through the mail order program, you must fill out and return a mail order form and return it with a 90-day prescription from your doctor. Mail order forms are available from your HR Department or on the Cigna website at Benefit Guide 3

6 MEDICAL PLAN COMPARISON Health Savings Account Company Match (based on your HSA contribution amount) Calendar Year Deductible (Individual / Family) Calendar Year Out-of-Pocket Maximum (Individual / Family) includes copays, deductibles, and coinsurance CIGNA MEDICAL PLAN DETAILS OAP $1,000 CDHP $2,000 HSA CDHP $4,000 HSA In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network N/A 100% up to: $500 for employee only coverage or $1,000 for employee + spouse/child/family coverage 100% up to: $750 for employee only coverage or $1,500 for employee + spouse/child/family coverage $1,000 / $2,000 $3,500 / $7,000 $2,000 / $4,000 $4,000 / $8,000 $4,000 / $8,000 $8,000 / $16,000 $3,500 / $7,000 $7,000 / $14,000 $4,000 / $8,000 $8,000 / $16,000 $6,450 / $12,900 $16,000 / $32,000 Coinsurance (the plan pays) 80% 60% 80% 60% 80% 60% Primary Care Office Visit $25 copay Specialist Office Visit $45 copay Urgent Care Visit $75 copay 60% 80% 60% 80% 60% after deductible after deductible after deductible after deductible after deductible Emergency Room Visit $200 copay Hospital Visit 80% after deductible PRESCRIPTION DRUG COVERAGE - IN-NETWORK COVERAGE ONLY Deductible $0 Included in Medical Deductible Included in Medical Deductible Tier 1 $15 copay 30% of cost ($100 max.) 30% of cost ($100 max.) Tier 2 30% of cost ($50 max.) 40% of cost ($100 max.) 40% of cost ($100 max.) Tier 3 50% of cost ($75 max.) 50% of cost ($100 max.) 50% of cost ($100 max.) Tier 1 $30 copay 30% of cost ($200 max.) 30% of cost ($200 max.) Tier 2 30% of cost ($100 max.) 40% of cost ($200 max.) 40% of cost ($200 max.) Tier 3 50% of cost ($150 max.) 50% of cost ($200 max.) 50% of cost ($200 max.) WEEKLY MEDICAL PLAN RATES Employee Only $46.16 $32.93 $21.03 Employee + Spouse $ $82.32 $57.41 Employee + Child(ren) $96.81 $72.43 $50.48 Employee + Family $ $ $87.92 RETAIL MAIL ORDER PRE-CERTIFICATION IS REQUIRED FOR CERTAIN PROCEDURES Because they are not always medically necessary, certain types of procedures need to be certified with Cigna in advance. This protects your finances by ensuring that the procedure will be covered by your medical insurance. Otherwise, you may end up being responsible for 100% of the cost. In addition, if you incur an eligible expense that requires pre-certification but is not pre-certified, Cigna will charge a $750 penalty and will pay only 50% of the eligible expense. Examples of services or treatments that may need to be pre-certified include radiology (MRIs, PET scans, CAT scans), surgery, dialysis, hospitalization, infertility treatment, injectable drugs, and durable medical equipment. Before undergoing a procedure, always check with Cigna to verify whether you need pre-certification by calling the Cigna member services phone number on the back of your ID card. PLEASE NOTE: The providers in the Cigna Open Access Plus (OAP) network may change without notice. To find out if your doctor participates in the OAP network, please go to 4 Cardinal Logistics

7 ABOUT THE HEALTH SAVINGS ACCOUNTS (HSAs) FREQUENTLY ASKED QUESTIONS ABOUT CONSUMER-DIRECTED HEALTH PLANS AND HSAs What is a Consumer-Directed Health Plan? A Consumer-Directed Health Plan (CDHP) is a health plan product which, when combined with a Health Savings Account (HSA), provides traditional insurance coverage and a tax-advantaged way to help save for future medical expenses. The CDHP/HSA gives you greater flexibility and discretion over how you use your health care dollars. What are the general features of a CDHP? The CDHP features a higher deductible than the OAP plan. For in-network services, the annual deductible is either $2,000 or $4,000 for individual coverage, and either $4,000 or $8,000 for family coverage, depending on which option you choose. In-network preventive care is covered at 100%, but in all other cases the deductible must be met before the plan pays benefits. However, these plans have lower payroll contributions than the OAP plan, and HSA funds can be used to pay for eligible expenses, including medical expenses incurred before the deductible is met. What are the general features of an HSA? HSA voluntary contributions are made as pre-tax payroll contributions (subject to state tax in AL, CA, NJ, and WI) and interest can be earned on the account taxfree. Tax-free withdrawals of HSA funds can be made for qualified medical, dental, vision, and prescription expenses. The HSA bank account funds also help you to satisfy your plan s annual deductible. Unused funds and interest are carried over, without limit, from year to year. You own the HSA and it is yours to keep, even when you change plans or retire. WELLNESS AT CARDINAL! The health and well-being of our employees and their families are a top priority for Cardinal. In 2015, we will be introducing a new wellness program. Look for more information coming soon! How does the HSA work? The HSA is funded in three ways: Contributions you set aside through your pre-tax payroll deductions. 100% matching contribution made by Cardinal up to a defined limit. Personal post-tax contributions made outside payroll deductions. Both employee and Cardinal contributions are made on a per-paycheck basis. When you use your HSA, expenses are covered in a number of ways. Below is an overview of how the cost of your medical expenses will be covered. EXPENSE TYPE Preventive Care Deductible Coinsurance Out-of-Pocket Max HOW IT S COVERED Eligible in-network preventive care services are covered at 100% by the plan. You pay for your health care services and prescriptions until you satisfy the plan deductible. After your deductible is met, you and Cardinal share the cost of medical care through coinsurance percentages. Copays apply for prescriptions until you reach the out-of-pocket maximum. After you reach the plan s out-of-pocket maximum, the plan pays 100% for covered expenses including prescriptions and you pay 0%. How much can I contribute to my HSA? The IRS sets limits on HSA contributions each year. There are different contribution limits by tier. Cardinal s matching contribution limit differs by plan and by tier. Individual Coverage Combined Contribution Limit Family Coverage Combined Contribution Limit Cardinal Individual Match Limit (100% Match)** Cardinal Family Match Limit (100% Match)** CDHP $2,000 HSA $3,350* $6,650* CDHP $4,000 HSA $500 $1,000 $750 $1,500 *Employer Contribution counts toward annual HSA maximum limits. **For employees who start their employment mid-year, Cardinal matching contributions will be pro-rated Benefit Guide 5

8 MORE ABOUT HEALTH SAVINGS ACCOUNTS (HSAs) RULES YOU NEED TO KNOW You own the funds in your account, but there are some IRS rules to know: Use it to pay for eligible health care expenses tax-free: When used for things like deductibles, copays, prescriptions, and covered medical, dental, or vision care services, the money is not taxed. Using your HSA for non-health care expenses will cost you: The money is taxed and there is a 20% penalty if you are under age 65. After age 65, the 20% penalty does not apply but the expenses are still taxable. HSAs are not compatible with Medicare: You cannot contribute after you elect Medicare, but any accumulated funds in your account are still available to use. Catch-up contributions are allowed: If you are age and not enrolled in Medicare, you can make a catch-up contribution of an additional $1,000 per tax year over the contribution limit. Avoid going over the contribution limit: It is your responsibility to monitor your HSA account balance to ensure you do not exceed the IRS combined maximum for the calendar year. Any excess contributions are subject to standard income tax rates plus a 6% excise tax. CHANGING YOUR HSA CONTRIBUTION DURING THE YEAR You are allowed to change your contribution once per month,with the change becoming effective on the first of the following month. Contact the Department of Human Resources at ELIGIBILITY TO OPEN AN HSA Please note that you are only eligible to open an HSA if you elect a Cigna CDHP medical plan and are not covered by any other health plan, including Medicare. ACCESSING YOUR FUNDS There are several ways to use the money in your HSA: HSA Debit Card automatically issued to the account holder Online Bill Pay available free of charge HSA Checkbook can be elected for a small fee Medical Auto Claim Forwarding can be elected for a small fee Regardless of you how access your HSA, all balance and transaction activity will be available for you to view online at mycigna.com. 6 Cardinal Logistics

9 SUPPLEMENTING YOUR MEDICAL BENEFITS Our medical options provide great coverage for you and your family s general health care needs. Still, we offer additional benefits to protect you against unforeseen illness or injuries so your finances are protected and you can focus on getting well. Critical Illness and Accident Insurance are administered by Aflac. CRITICAL ILLNESS Protect your income and personal assets when your out-of-pocket expenses increase as a result of an illness. This plan pays a lump sum benefit following the diagnosis of each covered critical illness, and benefits are paid in addition to any other insurance coverage you may have. Benefit Amounts: Employees increments of $5,000 up to $50,000 Spouses increments of $2,500 up to $25,000 Children 50% of Employee Amount Added Feature: A $50 Wellness Benefit is included, which provides a benefit per insured per calendar year for covered health screening tests. ACCIDENT INSURANCE Accident insurance is designed to help you meet the out-of-pocket expenses and extra bills that can follow an accidental injury, whether minor or catastrophic, that happens off the job. This plan provides a lump sum benefit based on the type of injury/covered incident you sustain. Examples of covered injuries and treatments include: broken bones emergency room treatment physical therapy burns hospitalization cuts repaired by stitches eye injuries doctor s office visit for injuries Reasons Why Americans Need Critical Illness Insurance Coverage 1.6 MILLION NEW CANCER CASES ARE DIAGNOSED EACH YEAR. 1 Critical illness costs are what causes more than 60% of all bankruptcies today, and 78% had health insurance. 3 Every 45 seconds someone suffers a stroke. 2 WHAT CAN YOU USE IT FOR? Every 29 seconds someone suffers a coronary event. 2 A 25-year-old male non-smoker has a 24% chance of suffering a critical illness before Copayments Out-of-network costs Alternative/experimental treatments Mortgage payments Car payments Household bills Clothing and food Lost income Childcare Travel Expenses SOURCES: 1 Susan G. Komen for the Cure, Breast Cancer Statistics Made Easy, October Centers for Disease Control, A Public Health Action Plan to Prevent Heart Disease and Stroke, December American Association for Critical Illness Insurance, The Real Risk that You ll Have a Critical Illness, September American Association for Critical Illness Insurance, Study Reveals Risk of Having a Critical Illness Before Age 65, January American Association for Critical Illness Insurance, Critical Illness Sales Tend to be Small, April Benefit Guide 7

10 DENTAL & VISION METLIFE DENTAL PLANS Cardinal s Dental plans are administered through MetLife and provide coverage for typical dental expenses, such as cleanings, X-rays, and fillings. We offer a Low option as well as a Premium option, which includes coverage for Orthodontia. You can visit any dentist you choose, but if you use the MetLife network, you ll pay less for your care. For a list of MetLife network dentists, go to NOTE: You will not need a dental ID card to receive dental services. When you visit the dentist, give the provider your Social Security number and Cardinal s name. Your dentist s office can verify your eligibility for benefits by calling MetLife at METLIFE DENTAL PLAN OPTIONS LOW PPO PLAN NO ORTHO PREMIUM PPO PLAN WITH ORTHO In-Network Out-of-Network* In-Network Out-of-Network* Calendar Year Deductible (Individual / Family) $50 / $150 $50 / $150 $50 / $150 $50 / $150 Calendar Year Out-of-Pocket Maximum (Individual/Family) $1,500 $1,500 $2,000 $2,000 Preventive Services (Type A) Exams, x-rays, cleanings, fluoride treatments, space maintainers 100% covered; no deductible 100% covered; no deductible 100% covered; no deductible 100% covered; no deductible Basic Services (Type B) Endodontics, fillings, periodontics 80% after deductible 80% after deductible 80% after deductible 80% after deductible Major Services (Type C) Crowns, inlays, onlays, bridges, dentures 50% after deductible 50% after deductible 50% after deductible 50% after deductible Orthodontia Services (Type D) Not covered Not covered 50% after deductible 50% after deductible Orthodontia Lifetime Maximum Not covered Not covered $1,000 $1,000 WEEKLY DENTAL PLAN RATES Employee Only $5.52 $5.80 Employee + Spouse $11.04 $11.59 Employee + Child(ren) $10.54 $13.84 Employee + Family $19.60 $25.72 * Out-of-Network benefits are payable for services rendered by a dentist who is not a participating provider. The Reasonable and Customary charge is based on the lowest of (1) the dentist s actual charge, (2) the dentist s usual charge for the same or similar services or (3) the charge of most dentists in the same geographic area for the same or similar services as determined by MetLife. Services must be necessary in terms of generally accepted dental standards. DAVIS VISION BENEFITS The vision plan promotes preventive care through regular eye exams and provides coverage for materials like glasses and contact lenses. If you enroll for vision coverage, you can go to any eye care provider you choose, but you will receive a discount on services in the Davis Vision network. To find a network provider, go to NOTE: The Vision Plan is designed to cover eye care needs that are visually necessary. You have to pay extra if you choose certain cosmetic or elective eyewear, so be sure to ask your eye doctor what items are covered by the plan before you purchase materials. DAVIS VISION PLAN OPTIONS Plan Feature In-Network Non-Network (Plan Allowance) Eye Exam (every 12 months) 100% after $10 copay Up to $50 allowance Lenses (every 12 months) 100% after $25 copay Single vision: Up to $50; Bifocal: Up to $75 Trifocal: Up to $100; Lenticular: Up to $125 Frames (every 24 months) Up to $150 allowance, plus 20% off the balance Up to $70 allowance Contact Lenses (every 12 months) Up to $150 allowance, plus 15% off the balance Up to $105 allowance WEEKLY VISION PLAN RATES Employee Only $1.12 Employee + Spouse $2.23 Employee + Child(ren) $2.19 Employee + Family $ Cardinal Logistics

11 FLEXIBLE SPENDING ACCOUNTS Flexible Spending Accounts allow you to take advantage of tax savings by using pre-tax dollars to cover eligible out-of-pocket expenses. Depending on the type of plan, FSAs can help you cover the cost of medical, dental, vision, and dependent care services. Just remember to always keep your receipts. You may be asked to provide an itemized receipt to verify eligible expenses. HEALTH CARE FSA For Non-HSA Participants These expenses can include prescription and office visit copays, medical/dental deductibles, eyeglasses, orthodontia and prescription medications. (For a complete listing of eligible health care expenses, go to and search eligible expenses.) Cardinal offers a debit card which is the easiest way to be reimbursed. Be sure to retain your itemized receipts in case the IRS needs them for documentation. A Note About Over-the-Counter Medications: You must have a doctor s prescription to use the Health Care FSA for over-the-counter medications such as antacids, allergy medication, cold medicine, and pain relievers like ibuprofen. Your pharmacist can tell you whether a specific item requires a prescription in order to be eligible for FSA payment. You can call The Employers Association at to verify eligible expenses. LIMITED PURPOSE FSA For HSA Participants IRS regulations do not allow you to participate in a traditional FSA if you are enrolled in an HSA plan. If you enroll in either HSA medical plan, you may contribute to a Limited Purpose Flexible Spending Account to help pay for dental and vision expenses not covered under the HSA plan. These funds cannot be used to pay for medical expenses. The annual maximum contribution amount is $2,550. You must use the funds in this account before the end of the plan year or else you will forfeit any unused portion. HOW THE DEBIT CARD WORKS If you enroll in the Health Care, Limited Purpose, or Dependent Care FSA, you will receive a Benefits Debit Card in the mail at your home. To request additional debit cards for your family members, please contact over the phone or via their website at DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT This plan reimburses for dependent care expenses incurred in order for you to work or attend school full-time. Eligible dependent care expenses cover children 13 years of age and under or for an adult that depends on you for care. This includes licensed child care centers, nursery schools, daytime summer camps, adult day care centers, and in-home care. The annual maximum contribution amount is $5,000 ($2,500 if married, filing separately). You must use the funds in this account before the end of the plan year or else you will forfeit any unused portion. GENERAL FSA RULES AND RESTRICTIONS For the Health Care and Limited Purpose FSA, you may contribute $260 to $2,550 for the plan year. For the Dependent Care FSA, you may contribute $260 to $5,000 per household for the FSA plan year. Health Care funds have a special grace period you can incur eligible expenses until March 15, Dependent Care funds must be used by December 31, You have until March 31, 2016, to submit FSA claims for reimbursement for either plan. Any money left in your FSA at the end of the plan year (or after the grace period) may not be rolled over to pay for future expenses in another plan year. Any unused funds will be forfeited, per IRS rules. This is called the use it or lose it rule. You cannot use Health Care FSA funds to pay for Dependent Care expenses, or vice versa. Funds cannot be transferred between the accounts. You can receive reimbursement from your Health Care FSA for the total amount of your elected contribution at any time during the Plan year. You can only receive a reimbursement from your Dependent Care FSA up to the amount of your contributions made to your account Benefit Guide 9

12 LIFE AND AD&D INSURANCE BASIC LIFE INSURANCE Cardinal automatically provides Basic Life Insurance through Liberty Mutual for all eligible employees at no cost. The benefit is paid to your beneficiaries in the event of your death. Basic Life benefit amounts are based on your employment category and your previous year s W-2 earnings, and are as follows: For Class 1 (salaried employees): Benefit amount of 1 times your annual earnings (maximum of $625,000) For Class 2 (hourly employees, drivers, and piecework employees): Benefit amount of $50,000 OPTIONAL LIFE INSURANCE In addition to Basic Life Insurance, you may also purchase Optional Life Insurance for yourself, your spouse, and your dependent children. However, you may only elect coverage for your dependents if you enroll for Optional Life coverage for yourself. You pay for the cost of Optional Life Insurance on an after-tax basis through payroll deductions. NOTE: As a new hire, any amount you elect over the guaranteed issue amount for you or your spouse is subject to Evidence of Insurability. After your initial enrollment opportunity, any new amount you elect for you or your spouse will be subject to Evidence of Insurability. Evidence of Insurability is not required for Child coverage. Employee Spouse Child(ren) up to age 26 AD&D INSURANCE OPTIONAL LIFE BENEFITS Increments of $10,000 to a maximum of $500,000 Guaranteed issue amount: $200,000 $10,000-$150,000; not to exceed 100% of employee amount. Guaranteed issue amount: $50,000 Choose $5,000 or $10,000 (applies to each child covered) Cardinal allows you to purchase Accidental Death and Dismemberment (AD&D) Insurance through Liberty Mutual for you and your family to help with expenses in the event you or a covered dependent dies or becomes injured as a result of an accident. You pay for this coverage on an after-tax basis through payroll deductions. You may only elect coverage for your spouse and/or child(ren) if you enroll for Optional AD&D coverage for yourself. OPTIONAL AD&D BENEFITS Employee Increments of $10,000 to a maximum of $300,000 Spouse Increments of $10,000 to a maximum of $150,000; not to exceed 100% of the employee amount Child(ren) $5,000 or $10,000 WHOLE LIFE INSURANCE Whole Life, administered by Unum, provides financial support for families after the death of a loved one. You can get this valuable coverage for a low cost per pay period. Coverage is available for your dependents, even if you don t elect coverage for yourself. This coverage provides protection for a lifetime, with guaranteed renewal year after year, and rates will not go up as you age. This coverage is also portable, meaning you can keep your Whole Life plan even after you leave Cardinal as long as you continue to pay the premiums. Please note that this coverage is only available during Annual Enrollment. Life Insurance Rules and Terms to know IRS Rules About Basic Life Coverage: If your Basic Life Insurance coverage is more than $50,000, your income taxes may be affected. IRS regulations require that the value of life insurance benefits over $50,000 be reported as imputed income, which is noncash income that you receive from an employer-provided benefit. The value of any coverage that exceeds $50,000 will be reported to the IRS as imputed income on your W-2 form. Guaranteed Issue: Guaranteed issue is the amount of life insurance that you can elect during your initial eligibility period without having to provide evidence of insurability. Evidence of Insurability: Evidence of insurability is a request to verify good health and is often in the form of a questionnaire. Amounts applied for through the evidence of insurability process are not effective until approved by Liberty Mutual. Beneficiary Designation: You must designate a beneficiary for Basic and Optional Life Insurance benefits when you enroll. Your beneficiary is the person(s) who will receive the benefits from your coverage in the event of your death. You are always the beneficiary of any dependent life and AD&D insurance you elect. You can change your beneficiaries at any time during the year. Benefits Reduce at Age 70: When you or a covered dependent reaches age 70, Basic and Optional Life Insurance benefits are reduced by 50%. For more information, refer to your Group Life Insurance booklet. 10 Cardinal Logistics

13 DISABILITY COVERAGE SHORT-TERM DISABILITY Short-Term Disability (STD) benefits are provided by Cardinal to all eligible employees at no cost. STD benefit amounts are based on your employment category and your previous year s W-2 earnings, and are as follows: For Class 1 (salaried employees): 100% salary continuation For Class 2 (hourly employees, drivers, and piecework employees): $150 per week NOTE: Employees who work in CA, NJ, NY, PR, or RI are ineligible for group Short-Term Disability enrollment since coverage is already provided through statutory disability plans in those states. Employees may buy-up for an additional benefit. STD BENEFITS Benefits begin After 7 days Benefits continue Up to 25 weeks per year Core Plan Weekly benefit of $150 Buy Up Plan 1 Additional weekly benefit of $100 Buy Up Plan 2 Additional weekly benefit of $200 Buy Up Plan 3 Additional weekly benefit of $300 Buy Up Plan 4 Additional weekly benefit of $500* Buy Up Plan 5 Additional weekly benefit of $750** *You must have annual earnings of $50,000+ to enroll in Buy Up Plan 4 **You must have annual earnings of $70,000+ to enroll in Buy Up Plan 5 LONG-TERM DISABILITY If you remain totally disabled and unable to work for more than 180 days, you may be eligible for Long- Term Disability (LTD) benefits. Cardinal automatically provides you LTD benefits that replace up to 50% of your annual earnings, up to a maximum of $10,000 per month for no more than 5 years. Your monthly LTD benefit will be reduced by Social Security and any other disability income you or your family receive due to your disability (such as Workers Compensation). Pre-existing limitations may apply. Benefit Amount Benefits begin Benefits continue Own Occupation Period When Are You Disabled? LTD BENEFITS 50% of Monthly Earnings After 180 days Up to 5 years 24 months To be considered totally disabled and eligible for LTD benefits, you must be approved by the insurance carrier and seeing a doctor regularly for treatment. In addition: Your doctor must certify that you are not able to do your job at Cardinal, and You must have lost 20% or more of your predisability income due to your illness or injury Benefit Guide 11

14 EMPLOYEE ASSISTANCE PROGRAM (EAP) You and your covered dependents have free access to Cardinal s Employee Assistance Program (EAP). This confidential service, provided by Liberty Mutual, offers free telephone counseling any time, day or night, to help you with a variety of personal problems. Counselors can help with concerns about things like: Parenting Emotional well-being Relationships Mental health Addiction and recovery Marital and family problems Legal and financial issues To talk to a professional counselor through the EAP, call , 24 hours a day, seven days a week. MyLiberty Assist EAP: Web Services The MyLibertyAssist website is user-friendly and offers practical EAP-related information that addresses emotional wellbeing, health and wellness and daily living concerns. Available resources include interactive self-assessments, a comprehensive library of articles and guides and financial calculators. The website provides employees and their immediate family members with the information they need, 24 hours a day, seven days a week. Access MyLiberty Assist EAP Services: Online at (password: MLASSIST) By Telephone: (1-877-MYL-BRTY) 12 Cardinal Logistics

15 401(K) RETIREMENT SAVINGS PLAN Cardinal offers a generous 401(k) savings plan through Fidelity. You can take advantage of pre-tax earnings and a company match by contributing to the plan. To begin participating, first complete an Enrollment Worksheet. Then, use the Worksheet to enroll on-line through Fidelity Investments website at or by calling a Fidelity Customer Service Representative at Eligibility for Participation All full-time and part-time employees (not leased or contract workers) at least 21 years of age. Must have completed three months of employment with Cardinal. Upon satisfying the requirement(s), you will become eligible to participate in the plan on the first day of the month following your service requirement. 401(k) Contributions Your contributions: You may make employee contributions to your 401(k) account between 1% and 60% of your pre-tax earnings subject to annual dollar limits set by the IRS. You may change your deferral percentage at the beginning of each payroll period. You may be able to make additional catch-up contributions under certain conditions. You may increase or decrease the amount you are contributing at the beginning of each quarter. You may stop contributions at any time. Vesting of Your Contributions: The term vesting refers to your non-forfeitable right to own the contributions in your account. Your contributions and the Safe Harbor match are always 100% vested. Vesting of Employer Contributions: The Company may match a percentage of the employee s deferred gross compensation after the end of the plan year. Matching contribution amounts may change at any time, subject to Board approval. Should an employer contribution be made, it will be subject to the following vesting schedule: 401(K) VESTING SCHEDULE Less than 2 years 0% 2 years 25% 3 years 50% 4 years 75% 5 years 100% Accessing Your Money You may take a lump sum distribution from the plan in the event of termination of employment, retirement or disability. Your beneficiary will receive your distributions in the event of your death. You may take a distribution of your entire account upon the attainment of age 59 ½. You will pay income tax on any distribution you receive. Taxable distributions payable to you will be subject to the 20% federal income tax withholding requirement, unless directly rolled over to an IRA or an employer s qualified plan. You may make hardship withdrawal, if you qualify, from employee contribution and rollover contributions to purchase a principal residence, to prevent eviction from your principal residence, to pay for college tuition expenses for you or your immediate family, for un-reimbursed medical expenses, pay for funeral or burial expenses for a deceased parent, spouse, children or dependent; and make repairs to a principal residence for damage that would qualify for the casualty deduction under Federal tax law. The minimum hardship withdrawal is $1,000. Amount withdrawn will be subjected to the 20% federal income tax withholding requirements. A 10% early withdrawal penalty may apply for certain distributions. Loans from your plan account are also available, if you qualify, on amounts you have contributed as well as on your vested employer contributions, subject to annual IRS maximums. The maximum loan you may receive is the lesser of 50% of your vested account balance or $50,000. The minimum loan is $1,000. You may only have one loan outstanding at any given time. All loans must be paid back within 5 years unless it is for the purchase of your principal residence. You pay back the principal and interest to your own account through automatic after-tax payroll deduction. NOTE: The details in this guide summarize the main features of the Cardinal Employees Retirement Plan, but it is not a comprehensive description. The official plan document will govern in the case of question Benefit Guide 13

16 IMPORTANT CONTACTS PLAN VENDOR TELEPHONE WEBSITE Medical Cigna (800) Health Savings Account Cigna (866) Dental MetLife (800) Vision Davis Vision (800) Liberty Mutual (800) Critical Illness and Accident Insurance Aflac (800) Whole Life Insurance Unum (866) Flexible Spending Accounts The Employers Association (800) Employee Assistance Program Liberty Mutual (877) Fidelity (800) Short-term Disability (Claims Reporting) 401(k) Retirement Savings (Company Code: Cardinal) (Password: MLASSIST) This guide does not create, nor should it be construed as creating, a contract of employment between Cardinal and its associates or any contractual rights regarding termination or other matters of employment. Either you or Cardinal may terminate the employment relationship at any time for any reason, or for no reason, unless you have a separate written agreement with Cardinal stating otherwise. Furthermore, this guide is intended only as a general summary of your benefits. A more complete summary of your benefits and the terms under which they are provided, including limitations and exclusions, is contained in the plan documents. If there are any discrepancies between the information contained in this guide and the plan documents, the plan documents are the controlling documents. Cardinal reserves the right to modify or terminate the plans described in this guide at any time without notice.