2014 Benefits. Security for Life

Transcription

1 2014 Benefits Security for Life

2 ABS Group is able to successfully support the industries we serve because of our unique and talented employees. Your hard work, dedication and commitment to our values make you extremely important to our organization and our business. One way we reward you for your contributions is with an industry-leading benefits program, with valuable programs to support your health, financial security and retirement savings. The company pays the majority of the cost for our generous plans and programs. This guide can help you learn more about our programs so that you can choose coverage to help you take care of yourself and your family. If you have any questions about our plans or the information in this guide, please contact the ABS Benefits Department or one of the benefit providers. You can find contact information on the back cover. In This Guide Eligibility and Participation...1 Medical Coverage...2 Prescription Drug Coverage...4 Dental Plan...5 Vision Plan...6 Health Savings Account...7 Flexible Spending Accounts...8 Life and Personal Accident Insurance...9 Disability Plans...10 Retirement Plans...11 Additional Benefits Important Benefits Contacts... Back Cover II 2014 Benefits

3 Eligibility and Participation Employee Eligibility You are eligible for coverage if you are a full-time or part-time ABS Group employee who works at least 30 hours per week. Your benefits take effect the first of the month following your date of hire. Default Coverage for New Hires All newly hired employees must complete an enrollment form within 30 days to elect or waive coverage. If you do not complete an enrollment form, you will be automatically enrolled in the high-deductible medical (HD HSA) plan with prescription drug coverage. If you do not take action to enroll as a new hire, you will have to wait until the next annual enrollment period to make additional elections. Covering Your Family Members If you enroll for benefits, you may also cover your legal spouse and children. Children include natural, adopted and/or stepchildren. For the dental, vision, life and accident plans, you may cover your unmarried children through the end of the year in which they turn 26 if they are not eligible for coverage through their own employer. For the medical plan, you may cover your children through the end of the year in which they turn 26 regardless of their marital status. Dependent children of any age are eligible for coverage if they are physically or mentally incapable of supporting themselves. These children must have become disabled before age 19, and coverage is subject to approval by UHC. Coverage for your family members takes effect on the same date your coverage begins, or the date you add them as dependents to your coverage. You may be asked to provide proof of dependent eligibility, such as birth certificates, adoption or guardianship documents or a marriage license. Making Changes to Your Benefits Once you ve enrolled, you will not be able to change your health and income protection benefit elections until the next annual enrollment period unless you have a qualifying life event. Examples of these include: Marriage, divorce, legal separation or death of a spouse Birth, adoption, placement for adoption, death or change in custody of a child A change in your or your spouse s employment that affects benefits eligibility An enrollment opportunity or change in your spouse s benefit plans Receiving a court order, such as a Qualified Medical Child Support Order Your child no longer meeting the eligibility requirements Eligibility for Medicare, Medicaid or CHIP (for you or your dependents) If You Have a Qualifying Life Event If you have a life event like a marriage or a new baby, please notify the ABS Benefits Department within 30 days to make changes to your benefits related to the event. If you do not make changes during the 30 days after the event, you will have to wait until the next annual enrollment period to update your coverage. Security for Life 1

4 Medical Coverage You have a choice of two medical plans through United Healthcare (UHC) the point of service (POS) plan, or the high-deductible plan with an optional health savings account (HD HSA). Both plans allow you to see any provider you choose, but you will generally save money with providers who participate in the UHC network. Your medical coverage also includes prescription drug coverage through CVS Caremark. POS Plan If you use providers in the UHC network, you do not have to meet your annual deductible before the plan pays for portions of certain services, like office visits and prescriptions. You are responsible for a set copay for such services, and the plan pays the rest of the cost. For other services, you and the plan share costs (known as coinsurance) after you meet your deductible. HD HSA Plan The HD HSA plan lets you keep more of each paycheck because it has lower employee contributions than the POS plan. It may be a good option if you don t anticipate large medical expenses for the year, or if you want to use a tax-advantaged HSA to help pay for your medical costs (now and in the future). The HD HSA plan has a deductible you must satisfy before you and the plan start to share costs. Even before you have met your calendar year deductible, the plan covers innetwork preventive care at 100%. Here s how the plan works: First, you pay the full cost when you need care or prescriptions until you reach your deductible. You can pay these costs out of your pocket or you can use HSA funds. Amounts you pay for medical care and prescriptions are combined toward meeting your deductible. Then, once you meet your deductible, you and the plan share costs until you reach your out-of-pocket maximum. If you use network providers, the plan pays 80% of the cost of most covered services and you pay the remaining 20%. Finally, after you reach your out-of-pocket maximum, the plan pays 100% of the cost for your eligible medical expenses for the rest of the year for all covered family members. Staying In-Network Saves! You have the flexibility to see any provider you choose, but you will generally save money with providers who participate in the UHC network. UHC network providers have agreed to charge negotiated rates for services, and they will also file claims on your behalf. If you use out-of-network providers, you pay a higher deductible and you may have higher out-of-pocket costs. You may also be required to pay charges above the UHC reasonable and customary (R&C) rates and file your own claims for reimbursement. Visit to find network providers or to see if your provider is in the UHC network Benefits

5 Here is a comparison of the plans features: Annual Deductible Annual Out-of- Pocket Maximum Office Visit Specialist Visit POS Plan HD HSA Plan In-Network Out-of-Network In-Network Out-of-Network $250 individual $500 family $1,000 individual $2,000 family $20 copay $35 copay Preventive Care Plan pays 100% (no copay or deductible) Urgent Care $35 copay $500 individual $1,000 family $2,000 individual $4,000 family Plan pays 60% Plan pays 60% Plan pays 60% $1,500 individual $3,000 family $3,000 individual $6,000 family Plan pays 80% Plan pays 100% (no coinsurance or deductible) Plan pays 80% $3,000 individual $6,000 family $6,000 individual $12,000 family Plan pays 60% Plan pays 60% Plan pays 60% Emergency Room Plan pays 90% in-network Plan pays 80% after in-network deductible Hospital Stay 90% 60% 80% 60% Coinsurance for Plan pays 90% Most Other Services 1 1 Outpatient services are covered as a coinsurance. Plan pays 60% Plan pays 80% Plan pays 60% UHC Resources for Your Health You can take advantage of the tools and resources that UHC offers to help you keep track of your well-being and live a healthy lifestyle. Information about these programs can be found on their website at If you need further guidance, call UHC at Here are some tips to help you be a smarter health care consumer. Know where to go. Save trips to the emergency room for real emergencies, like broken bones or chest pain. You can save time and money by going to an urgent care center or convenience care clinic instead of the ER for minor emergencies. Urgent care centers can often give you the same level of care as an ER and convenience care clinics (commonly found in grocery or drug stores) are a fast way to get help with common medical problems. Prevention is the best medicine. Preventive care like physicals, immunizations, well woman exams and routine screenings are important for managing your health, because many of the major risk factors leading to serious health conditions are preventable. Good habits like eating a balanced diet, exercising and following your doctor s directions on your lifestyle choices and medications are also important. Sign up for the HSA or the flexible spending account (FSA). These accounts allow you to put money away pretax to pay for medical expenses. This means you re able to lower your taxable income and get more value for the dollars you spend on eligible health care costs. If you re enrolled in the HD HSA and you open an HSA, your pretax contributions earn interest over time, and you can use the money any time you want, tax-free, to pay for health care expenses. (See page 7 for more on the HSA and page 8 for more on the FSA.) Review your bills. Medical bills sometimes contain errors. It s important to understand your benefits and carefully review any bills from your providers or explanations of benefits (EOBs) from the medical plan so you know you re being charged correctly for services. Security for Life 3

6 Prescription Drug Coverage Our prescription drug coverage is administered by CVS Caremark. You will receive separate plan ID cards for your medical and your pharmacy benefits. CVS Caremark has an extensive network, including over 65,000 participating retail pharmacies. In addition to retail pharmacies, the CVS mail order pharmacy is available for medications you take on a regular basis. For maintenance medications, you are limited to two fills at any participating retail pharmacy at the standard retail copay. To avoid a higher copay, after two fills you must get your maintenance medications through CVS mail order or CVS retail pharmacies, which allow you to pick up a three-month supply at the standard mail order copay. Your prescription drug coverage is based on your medical plan election. If you are on the HD HSA, you must meet the deductible before you and the plan share costs on prescription drugs. For the POS, you are only responsible for the associated copay for each prescription. To help ensure safety and proper use, certain medications may be subject to various clinical programs, including prior authorization, step therapy and quantity limits. Retail (30-Day Supply) POS Plan Copay HD HSA Coinsurance 1 Generic $10 20% Preferred Brand $30 20% Non-Preferred Brand $50 20% Mail Order (90-Day Supply) Generic $25 20% Preferred Brand $75 20% Non-Preferred Brand $125 20% Specialty Drugs 2 (30-Day Supply) $150 20% 1 After you meet your combined medical and prescription drug deductible. 2 Specialty drugs are not covered under the medical plan and must be obtained through CVS Caremark Specialty Pharmacy. Call for more details. Follow doctor s orders. If you re taking a maintenance medication for a health condition, it s important to use that medication as your doctor has directed. It s better for your health and it costs less to follow your doctor s advice and manage the condition than to misuse your medication and end up needing more urgent medical attention. ExtraCare Health Card. You can get extra savings on CVS brand health-related items with the ExtraCare Health Card. The card gives you a 20% discount on all eligible items in CVS retail pharmacies and weekly specials, as well as the opportunity to earn savings on prescriptions. Go generic. Generic drugs are tested by the U.S. FDA and proven to be just as safe and effective as their brand-name counterparts, but they cost much less. Save on copays by requesting generic prescriptions when available. When your doctor allows a generic drug but you choose the brand-name counterpart, you are responsible for the difference between the brand and generic costs as well as the brand copay. If your doctor requests the brandname specifically, you are only responsible for the brand copay Benefits

7 Dental Plan Good dental care is an important part of your overall health. Our MetLife dental plan covers preventive services at 100% with no deductible. Here are some of the plan s features: Plan Feature Calendar Year Deductible (waived for preventive services) Annual Maximum Diagnostic and Preventive Services Exams, routine cleanings, X-rays Basic Services Fillings, extractions, root canals, gum treatments Major Services Crowns, inlays, bridges, dentures Orthodontia Available for children and adults $50 per person $3,000 per person In- or Out-of-Network Plan pays 100% (no deductible) Plan pays 80% Plan pays 50% Plan pays 50% (no deductible) $3,000 lifetime maximum per person You may use any provider you choose, but you ll generally save money if you use a dentist in the MetLife Preferred Dental Program (PDP) network. PDP dentists have agreed to charge pre-negotiated rates for services. To find a network dentist, visit or call You do not need a personalized ID card to use your dental benefits. Your in-network provider can confirm your coverage if you provide your (enrolled employee) Social Security number and date of birth. The dental plan pays out-of-network charges based on amounts that MetLife considers reasonable for your area. You may be responsible for the difference between your provider s charges and what the plan pays, and you may also be responsible for filing your own claims for reimbursement. Security for Life 5

8 Vision Plan ABS Group offers the VSP WellVision plan, which gives you access to quality vision care and helps you save money on eye exams, eye glasses and contact lenses. You may visit any eye doctor you choose, but you may save money on services and materials by using a VSP network provider. If you choose to use an out-ofnetwork provider, you will pay the full cost for services and submit your receipts for reimbursement. Visit or call to find a network provider. You do not need a personalized ID card for vision coverage. Your in-network provider can confirm your coverage if you provide your (enrolled employee) Social Security number and date of birth. Plan Feature In-Network Out-of-Network Exam (once every calendar year) Eyeglass Lenses (once every calendar year Frames (once every other calendar year) Contact Lenses (instead of glasses, once every calendar year) Laser Vision Correction Discount Discounts on Non-Covered Lens Options Covered in full after $10 copay $10 copay, then up to $45 reimbursement Covered in full after $20 copay $20 copay, then up to $85 reimbursement, depending on lens type Up to $150 allowance Up to $150 allowance Average 15% discount at contracted facilities Average 30% discount Up to $47 reimbursement Up to $105 reimbursement None None Benefits

9 Health Savings Account If you participate in the HD HSA medical plan, you can participate in the HSA to use pretax dollars to pay for eligible health care expenses like office visits, prescriptions and deductibles. The HSA works like a regular savings account you put funds into it, and your balance earns interest and rolls over from year to year. The full balance of the account is yours to keep, even if you leave the company. You can use the funds to pay for your expenses now or save them to use after you retire. The HSA also offers triple tax savings: 1. Your contributions to the account are taken from your paycheck before taxes are assessed, lowering your taxable income and saving you money. 2. The account grows (through interest and other earnings) tax-free. 3. Withdrawals are tax-free, as long as you use them to pay for eligible health care expenses. Once you have enrolled in an HSA and set up your account through OptumBank, you re ready to build your account. Here s how the HSA works. Use Your HSA Funds You pay for expenses out of pocket and submit a withdrawal request to reimburse yourself. You should only use the account to pay for qualified health care expenses. To see a full list of qualified expenses, refer to IRS publication 502 at You are responsible for making sure that the money you spend is for a qualified expense. If you use the funds to pay for an ineligible expense, the funds used for the expense will be taxed as income and subject to a 20% penalty. You should keep all receipts in case the IRS asks for documentation. If you are age 65 or older, you can use HSA funds to pay for anything not just qualified medical expenses. If funds are used for nonhealth care expenses, the amount withdrawn will be taxable as income, but it will not be subject to any other penalties. Important Plan Considerations The HSA is voluntary. You may participate in the HD HSA medical plan without participating in the HSA if you choose. You are not allowed to contribute to an HSA if you or your spouse is enrolled in a health care flexible spending account or if you are enrolled in a health reimbursement arrangement. Contribute to Your Account You may contribute through convenient pretax payroll deductions, up to the 2014 IRS limits of $3,300 for individual coverage or up to $6,550 for family coverage. If you are age 55 or older, you may make an additional catch-up contribution of up to $1,000. Your account balance carries over from year to year and is yours to keep, even after you stop contributing to the HSA. You can change or stop your contributions at any time. Security for Life 7

10 Flexible Spending Accounts Flexible spending accounts (FSAs) allow you to set aside pretax dollars to pay for eligible expenses. You must re-enroll every year to participate. ABS Group offers two separate FSAs through ADP a health care FSA and a dependent care FSA. Before you enroll, you should estimate your annual expenses for health care and/or dependent care in If you enroll in the HSA, you may not enroll in the health care FSA. You choose how much to put into each account. You forfeit unused FSA funds at the end of the year, so estimate carefully. Your contributions are deducted from your paycheck on a pretax basis in equal amounts throughout the year. Eligible Expenses For a complete list, visit Maximum Annual Contribution Account Balance Availability How to Use FSA Funds Reimbursement Window Health Care FSA Out-of-pocket expenses such as copays, coinsurance and deductibles not paid by your health plan Out-of-pocket expenses for dental and orthodontia treatments not paid by your dental plan Out-of-pocket expenses for glasses, contact lenses or copays not paid by your vision plan Dependent Care FSA Day care expenses that enable you to work, including: --Day care, after-school care or summer day camp for dependent children under age 13 --Day care for your dependents who are mentally or physically incapable of caring for themselves $2,500 $5,000 (or $2,500 if married filing separate tax returns; you and your spouse must both work or go to school full time) Full annual amount available as of January 1 FSA debit card for eligible purchases Pay out of pocket and submit a claim to ADP for reimbursement Balance becomes available as you make contributions Pay out of pocket and submit a claim to ADP for reimbursement You will be reimbursed if you submit your claims by March 31, 2015 for expenses incurred between January 1 and December 31, Benefits

11 Life and Personal Accident Insurance ABS provides a basic life insurance benefit of two times your salary up to $2,000,000. You receive this benefit at no cost to you. If you would like more coverage than the basic plan provides, you have the option to purchase voluntary life and personal accident insurance coverage through MetLife for yourself and your family at favorable group rates. Life Insurance Insurance for Coverage Options Yourself Up to six times your annual salary to a maximum of $2,000,000 Your spouse Up to $30,000 Your children $10,000 Basic and voluntary life and accident benefits are rounded to the nearest $100. You will have to submit a statement of health (also known as evidence of insurability or EOI) to MetLife if you: Elect a coverage amount greater than three times your annual salary or $750,000 as a new hire Elect an increase in your coverage by more than one level or if the increased election provides a benefit greater than $750,000 during open enrollment If you elect spouse life insurance, your spouse will be required to submit EOI. EOI is not required for children. Personal Accident Insurance Personal accident insurance pays a benefit (in addition to your life insurance benefit) if you die or are injured in an accident. You have the option to cover either: 1) yourself or 2) yourself and your family. 1) You may purchase up to $1,000,000 in coverage in $10,000 increments. 2) If you cover yourself and your family, the plan pays in the following ways: If your family includes yourself and your spouse, your spouse has coverage of 50% of your employee personal accident coverage. If your family includes yourself and your children, your children have 15% of your employee personal accident coverage. If your family includes yourself, your spouse and your children, your spouse has 40% and your children have 10% of your employee personal accident coverage. Imputed Income The IRS considers the value of group term life insurance in excess of $50,000 as income to you. The imputed income will be reported on your pay statement and annually on your W-2 in the form of taxable income. Security for Life 9

12 Disability Plans ABS Group offers short-term disability (STD) and long-term disability (LTD) coverage to financially protect you and your family when illness or injury causes you to be away from work. STD Insurance ABS Group pays the full cost of your STD coverage. Our STD benefit replaces your income if you must be away from work because of injury, illness or maternity leave. Benefits start on the sixth consecutive day of an absence, and they can continue for up to 26 weeks. Your STD benefit is based on your years of service at ABS Group, and you are eligible for one salary continuation benefit every 12 months (not every calendar year). If you have questions about going out on STD leave, contact the ABS Benefits Department. Years of Service LTD Insurance The company provides a basic LTD benefit of 60% of your monthly salary up to $15,000, in the event an illness or injury keeps you from working for an extended period of time. You receive this benefit at no additional cost to you. If you choose, you may purchase a buy-up LTD option to increase your benefit to 70% of your monthly salary up to $15,000 per month. LTD benefits begin after 180 days of absence. STD Benefit Less than one year None (you may receive statutory disability benefits 1 ) One to five years Five to 10 years 100% of monthly earnings for two months Four additional months of statutory disability benefits 1 (for as long as you are disabled) 100% of monthly earnings for four months Two additional months of statutory disability benefits 1 (for as long as you are disabled) 10 or more years 100% of monthly earnings for six months 1 Statutory disability benefits are short-term disability benefits provided by your state. Not all states have statutory disability benefit programs. Basic Coverage Buy-Up Option 60% of your monthly salary up to $15,000 per month 70% of your monthly salary up to $15,000 per month The Cost of LTD Coverage ABS Group pays the cost for the basic LTD coverage. You pay the cost of the buy-up option if you select it. Your LTD buy-up coverage contributions are made with after-tax dollars. Basic LTD coverage contributions will also be treated as taxable income. Because premium values are included in your gross taxable income reported on your W-2, you will not have to pay taxes on any LTD benefit you may receive in the future Benefits

13 Retirement Plans Saving for retirement takes time and careful planning. ABS Group offers 401(k) and pension plans, and your plan options vary based on when you were hired at ABS Group. 401(k) Plan ABS Group offers a 401(k) plan through Fidelity Investments. If you were hired on or after July 1, 2005, you are eligible for a company match for your contributions. By making pretax 401(k) contributions, you build retirement savings while reducing your taxable income. You can contribute up to the IRS annual limit (which was $17,500 for 2013), and you can also make catch-up contributions up to the IRS limit (which was $5,500 in 2013) if you are age 50 or older. The contributions you make grow tax-free until you withdraw the funds, so the longer you save, the greater your account balance. If you joined ABS Group on or after July 1, 2005, the company will match 50% of the first 8% of your pay that you contribute to the plan. That means if you contribute 8% of your salary, the company will contribute 4% of your salary. You become vested in company matching contributions over time, and you are fully vested after five years of service. Anyone hired on or after September 9, 2013 will be automatically enrolled in the ABS 401(k) Savings Plan with a pretax contribution of 6% to be invested in the Fidelity Freedom Target Date Fund. You will receive information directly from Fidelity regarding your automatic enrollment. The letter will contain information about opting out or changing investment allocation and amounts. You have 30 days from your date of hire to opt out of the plan. Each year, your contribution amount will automatically increase by 1% unless you opt out of the annual increase program. You can enroll in or modify your account at any time. For more information or to make changes to your account, visit call or stop by any Fidelity service center across the country. You may also add or update your beneficiaries online with Fidelity. Pension Plan If you were hired before July 1, 2005, ABS Group offers a pension plan to give you financial security once you leave the workforce. The pension benefit payment is based on your highest three consecutive years earnings in the last 10 years, and your years of service at ABS Group (maximum of 40 years). Overtime pay and allowances are not included in the pension calculation, but incentive compensation is included. When you retire from ABS Group, you may elect to receive a lump sum payment or a lifetime pension. To calculate your estimated pension benefit, use the ABS Group U.S. Pension Estimator on MyEagle or request an annual benefits statement from the Benefits Department (benefits statements are processed within 45 days of the request). Security for Life 11

14 Employee Assistance Program ABS Group provides an employee assistance program (EAP) through LifeCare for extra support if you are dealing with challenging issues at home or at work. The company covers the full cost of this program so that you and your family members can receive free, confidential counseling and referral services. You can have two face-to-face counseling sessions per issue per year. This program can be a helpful resource if you are experiencing marital, family, financial or legal problems, stress, drug or alcohol abuse, emotional conflicts and other concerns. You can also find trusted providers for automotive, home improvement, moving, child care and educational services. To access our EAP program, register online at Our company code is abslifecare and your employee ID is your Social Security number (including dashes). Legal Services Plan You and your family have access to a legal services program through MetLaw (a MetLife company). Your rate sheet form has information about the cost of this program. You can get assistance with: Financial and debt matters Civil lawsuits Document preparation and review Estate planning Family law Identity theft and consumer protection Immigration Traffic offenses Real estate matters Personal property protection If you have an attorney you prefer to use, the program will reimburse you for the cost of services rendered by a non-plan attorney based on a set fee schedule. You will be responsible for paying the difference between the attorney s charges and the plan s reimbursement amount. Additional Benefits ABS Group offers other useful benefits to employees, including: Adoption reimbursement program Banking benefits with Bank of America, Wells Fargo, Chase and Membersource Credit Union METPAY optional insurance program, which offers personal property coverage for home, auto, boat and liability For more information about these programs, contact the ABS Benefits Department Benefits

15 Security for Life 13

16 American Bureau of Shipping and Affiliated Companies Northchase Drive Houston, TX Important Benefits Contacts ABS Benefits Department Medical Prescription Drugs Dental Vision Plan Disability Coverage Flexible Spending Accounts Employee Assistance Program 401(k) Plan Legal Services United Healthcare Group number: CVS Caremark MetLife Group number VSP ID number: Employee Social Security number MetLife STD group number LTD group number ADP LifeCare Company code: abslifecare Employee ID: Employee Social Security number Fidelity Investments Hyatt Legal Member Services (password ) This brochure highlights the main features of the ABS benefits program. It is intended to help you choose the benefits that are best for you. This brochure does not include all plan rules and details. The terms of your benefit plans are governed by legal documents, including insurance contracts. Should there be an inconsistency between this brochure and the legal plan documents, the plan documents will govern. ABS reserves the right to change or discontinue its benefit plans at any time.