Human Resources A SUMMARY OF SHELL CANADA S PENSION AND BENEFITS PLANS

Transcription

1 Human Resources A SUMMARY OF SHELL CANADA S PENSION BENEFITS PLANS October 2015

2 Protecting Your Privacy Shell Canada is committed to protecting your personal information. We collect personal information about you and your dependents for the purpose of providing and administering the group benefits plans. We may share your personal information with third parties, as necessary, to determine eligibility for coverage and to administer the group benefits. Where third parties are located in jurisdictions outside of Canada they are required to protect the confidentiality of your personal information in a manner that is consistent with Canadian privacy laws and our privacy policy and requirements. Information respecting individual claims is held by Shell Canada s plan administrators and is not accessible by Shell Canada. Read our Privacy Policy on HR Online. If you have any questions about our privacy practices, contact our Privacy Officer at privacyincanada@shell.com.

3 BENEFITS For you to share in Shell s success GLOBAL EMPLOYEE SHARE PURCHASE PLAN Buy RDS shares at a 15% discount through payroll deduction. EMPLOYEE DISCOUNT 5% discount on fuel purchases at Shell Canada service stations. For you and your family s health and well being: flexible health and dental options YOU START WITH... Emergency Travel Assistance while on company business + 1 HSA is a Health Spending Account you can use to pay for almost any health or dental expense not reimbursed by another plan. 2 Health Support is a limited extended health plan that provides financial protection against some of the costs of a major illness, injury or emergency travel assistance. $1,500 HSA 1 + HSA Plus (additional $1,500 HSA and Health Support 2 ; employee only coverage) OR YOU CHOOSE... ONE EXTENDED HEALTH CARE OPTION Basic OR Enhanced ONE EXTENDED DENTAL OPTION Basic OR Enhanced OR YOU CHOOSE... Decline health care and/or dental coverage Add dependents Add dependents Shell in Canada (Shell) pays the full cost of the $1,500 HSA and the Emergency Travel Assistance while on company business. Shell also pays approximately 75% of the cost of the Basic Extended Health Care and Dental plans, and 25% of the extra cost for the Enhanced Extended Health Care and Dental plans. The Company pays the full cost of the additional $1,500 in HSA Plus. See highlights of health and dental options on page 2. Provincial health care Shell pays 50% of the required provincial health care premium for residents of British Columbia. For your time away from work VACATION n 1 to 9 years service: 120 hours n 10 to 17 years service: 160 hours n 18 to 24 years service: 200 hours n 25 or more years service: 240 hours FLEX TIME Many sites offer paid time off (flex time) in addition to acation and statutory, designated and floating holidays. STATUTORY, DESIGNATED FLOATING HOLIDAYS 12 days off per year, including: n statutory holidays federally and provincially legislated holidays n designated holidays provincially proclaimed holidays such as Remembrance Day n floating holidays A Summary of Shell Canada s Pension and Benefit Plans 1

4 BENEFITS continued Highlights of Health and Dental Options EXTENDED HEALTH CARE (maximums listed are per covered person) (Contract number ) ELIGIBLE EXPENSES BASIC ENHANCED DECLINE Prescription Drugs 80% with drug card 80% with drug card No coverage Glasses/ 80% to a maximum of $100 every 24 months for adults, 80% to a maximum of $200 every 24 months for adults, Contact Lenses or every 12 months for children under 19 or every 12 months for children under 19 Health Practitioners 80% up to $20 per visit to a maximum of 80% up to $30 per visit to a maximum of (e.g., chiropractors, $400 per practitioner, per year $600 per practitioner, per year massage therapist, physiotherapist, podiatrist) Psychological 80% up to $100 per visit to a maximum of 80% up to $100 per visit to a maximum of Counseling $750 per year $900 per year Emergency 100% of emergency travel assistance expenses for trips 100% of emergency travel assistance expenses for Travel Assistance of 120 days or less, to a lifetime maximum of $1,000,000 trips of 120 days or less, to a lifetime maximum Canadian (no deductible) of $1,000,000 Canadian (no deductible) Additional eligible expenses include eye exams, hearing aids, orthotics, registered nursing, hospital accommodation and ambulance, subject to co-payments and maximums. Monthly Premiums Member only $ Member only $ N/A Member plus 1 dependent $ Member plus 1 dependent $ Member plus 2 or more dependents $ Member plus 2 or more dependents $ DENTAL (maximums listed are per covered person; reimbursement is limited to the reasonable and customary amount as determined by Sun Life Financial) (Contract number ) ELIGIBLE EXPENSES BASIC ENHANCED DECLINE Preventive Services 100% 100% No coverage (recall exams and cleanings) Minor Restorative 90% 90% Services (fillings, extractions, periodontics, endodontics) Major Restorative 50% to a maximum of $1,500 per year 60% to a maximum of $2,500 per year Services (crowns, implants, inlays, onlays, gold fillings, dentures, bridges) Orthodontics 50% to a lifetime maximum of $1,500 per covered person 60% to a lifetime maximum of $2,500 per covered under age 21 (under age 25 for full-time students), person. Adults and eligible children are covered. provided the treatment commenced prior to age 19. Monthly Premiums Member only $ Member only $ N/A Member plus 1 dependent $ Member plus 1 dependent $ Member plus 2 or more dependents $ Member plus 2 or more dependents $ HEALTH SPENDING ACCOUNT (HSA PLUS) (Contract number 20573) HEALTH SPENDING ACCOUNT (HSA) Deposit Eligible Expenses HEALTH SUPPORT PLAN Deductible Only expenses listed below count towards the the deductible, with the exception of emergency travel assistance expenses. Eligible Expenses Maximums listed are per covered person. 2 A Summary of Shell Canada s Pension and Benefit Plans Additional $1,500 per year, minus annual premium for Health Support Provides reimbursement up to the balance in your account for almost any health or dental expenses including: n Prescription drugs n Prescription eye glasses, contact lenses and laser eye surgery n Services of certified, licensed medical practitioners such as massage therapists, physiotherapists and chiropractors n Dental checkups and treatments n Orthodontics $2,000 per individual $3,000 per family 100% of emergency travel assistance expenses for trips of 60 days or less, to a lifetime maximum of $1,000,000 Canadian (no deductible) 100% of the following expenses after you have reached the annual deductible: n Eligible prescription drugs, to a maximum of $75,000 per year n Services of a registered nurse, to a maximum of $20,000 per year n Medical services and equipment, to a maximum of $20,000 per year n Semi-private hospital room n Ambulance services Annual Premiums Employee only $ (deducted from HSA) Employee plus 1 or more dependents $ Sun Life Financial administers the above Health and Dental benefits. All premiums as of January 1, 2015.

5 BENEFITS continued For your financial protection: Disability Income, Life and Accident Insurance YOU START WITH Basic Life Insurance 2 x ABEB 1 Basic Accident Insurance 2 x ABEB 1 Shell Income Continuance (SIC) short term disabilities 100% of ABEB 1 for 13 weeks then 70% 2 for next 13 weeks Long Term Disability (LTD) 70% of ABEB 1 after 6 months THEN YOU ADD YOUR CHOICE OF Employee 1 to 5 x ABEB 1 /OR Spouse Up to $500,000 OPTIONAL LIFE INSURANCE /OR Child $20,000 per child OR Decline all coverage /OR OPTIONAL ACCIDENT INSURANCE Employee 1 to 5 x ABEB 1 OR Employee and Dependent 1 to 5 x ABEB 1 Spouse s coverage = 60% of Employee Optional coverage Children s coverage = 20% of Employee Optional coverage to a maximum of $100,000 per child OR Decline all coverage 1 ABEB: Annual Benefits Earnings Base is your annual base pay plus an adjustment for shift differential on base hours worked, if applicable % for employees hired before January 1, 2013, or any employee with five or more years of continuous service. Shell pays the cost of Basic Life Insurance, Basic Accident Insurance, Shell Income Continuance and Long Term Disability. Employees pay the cost of Optional Life and Optional Accident Insurance. EMPLOYEE SPOUSE OPTIONAL LIFE INSURANCE RATES Maximum Coverage: $1,500,000 (Monthly premium per $1,000 of coverage) Age Non-Smoker Smoker less than 30 $0.036 $ $0.036 $ $0.036 $ $0.048 $ $0.093 $ $0.156 $ $0.249 $ $0.416 $ $0.635 $1.750 For your healthy active living SUBSIDIZED FITNESS n if you work in the Calgary downtown core, you have access to our Active Living Centre, a subsidized fitness centre n if you work outside the Calgary downtown core, you receive reimbursement of fitness fees to a maximum of $400 per year for eligible health and fitness clubs CHILD OPTIONAL LIFE INSURANCE $0.88 per month (regardless of number of children) for $20,000 of coverage for each eligible child. OPTIONAL ACCIDENT INSURANCE Maximum Coverage: $1,000,000 (Monthly premium per $1,000 coverage) Employee only: $ Employee plus dependent: $ Desjardins Financial Security provides the Basic Life and Basic Accident Insurance plans under contract number Sun Life Financial provides the Optional Life Insurance plan under contract number Industrial Alliance Insurance provides the Optional Accident Insurance plan under contract number All premiums as of January 1, A Summary of Shell Canada s Pension and Benefit Plans 3

6 PENSION For your retirement Your total compensation includes participation in the Shell Canada Pension Plan (the Plan). As an employee, you have choices and decisions that impact your financial future and the amount of income you will receive from the Plan at retirement. So don t delay get started right away! The Plan has two segments in which you will participate at different stages of your employment with Shell. The two segments are: n Initial Defined Contribution (Initial DC) n DB/DC Duo which is comprised of Defined Benefit II (DB II) and Defined Contribution II (DC II) You start in Initial DC. In the year you reach 10 years of recognized continuous service or the year after your age plus recognized continuous service equals 50 or more, you switch to DB/DC Duo automatically. If, when you join the Plan, you are age 50 or more, or your age plus recognized continuous service with an affiliate equals 50 or more, you participate in DB/DC Duo immediately. YOU START IN INITIAL DEFINED CONTRIBUTION (Initial DC) 2 n Shell contributes 6% of pensionable earnings n Employees choose to contribute 0% to 4% of pensionable earnings (is automatically set at 4% when you join the Plan) n Shell matches 100% of employee optional contributions n Total contribution up to 14% of pensionable earnings WHEN YOU HAVE 10 YEARS OF SERVICE 1 OR AGE + SERVICE 1 = 50, YOU SWITCH TO DB/DC DUO (DB II plus DC II) n DB II 2 Formula pension: 1.75% x Final Average Earnings (highest 3 years) x Years of Participation in DB/DC Duo n DC II 3 Shell contributes 4% of pensionable earnings; employee contributions not permitted 1 Service: Recognized continuous service with Shell or an affiliate company. 2 DB II: At retirement, you receive a lifetime pension determined by a formula based on your final average earnings and your years of participation in DB/DC Duo. 3 Initial DC and DC II: Shell contributes a percentage of your pensionable earnings each pay period to a tax-sheltered investment account in your name. You manage the money and make investment decisions. At retirement the balance in your investment account (contributions plus investment earnings/losses) is used to provide retirement income. 4 A Summary of Shell Canada s Pension and Benefit Plans

7 PENSION continued Initial DC: How It Works OVERVIEW Initial DC is a defined contribution pension, where: n Shell contributes 6% of your pensionable earnings n you may, but are not required to, contribute up to 4% of your pensionable earnings (automatically set to 4% when you join the Plan) n if you contribute, Shell matches your contributions n contributions go to a DC account in your name n you are responsible for making investment decisions for the contributions made to your account n the benefit depends on the accumulation of money over time it is not defined by a formula n your DC account is administered by Sun Life Financial YOUR CONTRIBUTIONS You are not required to contribute to Initial DC. However, you may contribute up to 4% of your pensionable earnings. Shell matches your contributions. This means if you make the maximum employee contribution (4%), Shell s contribution is 10% (6% + 4% matching). Your contributions (and Shell s contributions) are made semi-monthly. Your contributions are tax-deductible. Your taxable income is reduced each pay period by the amount of your contributions. YOUR INVESTMENT CHOICES You are responsible for making investment decisions for contributions to your DC account. You have a choice of investment funds offered through Sun Life Financial. You may invest in any number of the funds. The investment choices you make have a significant impact on the amount that accumulates in your DC account ultimately affecting the amount of income you have in retirement. Take the time to learn as much as possible about your investment choices so you can make the best decisions for your circumstances. Until you make your investment choices, your contributions, if any, and Shell s contributions are invested in the Retirement Target Date Portfolio with the target (maturity date) closest to but no later than your 65th birthday. This fund may, or may not, be the most appropriate investment for your circumstances. A Summary of Shell Canada s Pension and Benefit Plans 5

8 PENSION continued Investment Choices INVESTMENT FUND FUND TYPE FUND MANAGEMENT DEGREE OF RISK Aurion Money Market Segregated Fund Money Market Active Low Aurion Multi-Manager Active Bond Segregated Fund Bond Active Low Moderate BlackRock (BLK) Universe Bond Index Segregated Fund Bond Passive Low Moderate Aurion Multi-Manager Active Canadian Equity Segregated Fund Canadian Equity Active Moderate High BLK S&P/TSX Composite Index Segregated Fund Canadian Equity Passive Moderate High BLK U.S. Equity Index Segregated Fund (Registered) U.S. Equity Passive Moderate High BLK EAFE Equity Index Segregated Fund International Equity Passive Moderate High Aurion Multi-Manager Active Global Equity Segregated Fund Global Equity Active Moderate High BLK Global Equity Index Segregated Fund Global Equity Passive Moderate High Retirement Target Date Portfolios Lifecycle Active Low to Moderate High depending on target date For Fund Details For the latest fund information: n Access Sun Life Financial Plan Member Services website at Sign in using the generic Access ID and Password , or n You may also call Sun Life Financial toll free at ( if you re outside Canada and U.S.) from 6 a.m. to 6 p.m. Mountain Time. 6 A Summary of Shell Canada s Pension and Benefit Plans

9 YOUR RESPONSIBILITIES AS A MEMBER OF THE PENSION PLAN Pension plans and investment decisions are complex. Shell Canada and Sun Life Financial provide as much information as possible to help you understand the Plan, your choices, and your investment options. It is your responsibility to use these sources of information to inform yourself so that you can make appropriate decisions for your circumstances. Your decisions affect the amount of money that accumulates in your DC account, and, ultimately, the amount of income you will receive from the Plan at retirement. You are responsible for: n informing yourself about the DC segments of the Plan, and the information and tools available to you n researching and reviewing the available investment options to help you make informed decisions n obtaining independent investment advice from a qualified individual n allocating the Plan contributions among the available investment options n understanding your risk tolerance and the potential volatility of your investments n defining, monitoring and revising your investment strategy from time to time n maintaining your beneficiary designations A Summary of Shell Canada s Pension and Benefit Plans 7

10 INFORMATION TOOLS AVAILABLE TO YOU Plan Information The Shell Benefits Centre provides a detailed description of all pension and benefit plans and provides information on your current benefits participation and beneficiaries. To view your coverage, find information about the plans and make changes when appropriate, go to the Shell Benefits Centre at: n Financial Seminars Financial seminars are offered to employees, led by third-party certified financial advisors. The seminars include: n Financial Basics: For the Beginner n Investment Planning: Growing Your Money n Retirement Planning: Tax, Pensions and Estate Planning n Retirement Readiness: Preparing for Life After Work Sign up for these seminars through Shell Open University (SOU). n Go to Shell Online Shell Canada at sww.shell.com/canada n Select HR Online from the horizontal navigation bar n Select My Learning & Development from the left navigation bar n Select Shell Open University from the left navigation bar n Select Log In from the screen Pension Model Provides information on your current pension status, future pension and termination benefit estimates. To find it go to the Shell Benefits Centre at: n Retirement Assessment Offered to all employees who are approaching retirement. 8 A Summary of Shell Canada s Pension and Benefit Plans

11 INFORMATION TOOLS AVAILABLE TO YOU continued Sun Life Financial Plan Member Services Website ( n New joiners will receive a welcome letter from Sun Life Financial approximately two to four weeks after your date of hire. The letter will contain an Access ID, Password and instructions on activating your Sun Life Financial account. n The Sun Life Financial Plan Member Services website provides current DC account information, fund information, newsletters and booklets. You may also use your account to perform investment transactions. Before you receive your Sun Life Financial welcome letter, you can sign in to view fund information using the generic Access ID and Password n The Sun Life Financial Plan Member Services website also provides Health and Dental claim forms, online claims submission and health and dental information. You may use your account to register for direct deposit, track claims, view your HSA balance and print an all-in-one coverage card summarizing your benefits to keep in your wallet. n Contact the Sun Life Financial Customer Care Centre: Toll-free at ( if you re outside Canada) 6 a.m. to 6 p.m. Mountain Time any business day, or Go to the Sun Life Financial Member Services website n To access the Sun Life Financial Member Services website: Go to Enter your Access ID Enter your Password Select Sign In For a 5% Fuel Discount Apply for your Shell Employee MasterCard from the Bank of Montreal. Depending on what card type is chosen many other benefits also accompany this great discount. n Go to sww.shell.com/canada n Select Local Services n Select Shell MasterCard and follow the on-screen instructions For questions, you may call BMO Client Contact Center at (TTY ). Drug and Travel Cards Your drug card If you participate in Basic or Enhanced Extended Health Care, your pay-direct drug card will be sent to you approximately six to eight weeks after your hire date. HSA Plus participants do not receive a drug card. You should show your new drug card to your pharmacist. Sun Life Financial Member Services website Your travel card Every regular employee has Emergency Travel Assistance while travelling on company business. If you participate in Basic or Enhanced Extended Health Care or HSA Plus, you also have Emergency Travel Assistance for personal travel. Your travel card is included in the Onboarding Kit and can also be found on the Sun Life Financial Plan Member Services website at A Summary of Shell Canada s Pension and Benefit Plans 9

12 INFORMATION TOOLS AVAILABLE TO YOU continued What you need to do n To make your pension and benefit elections register yourself on the Shell Benefits Centre. To access the Shell Benefits Centre: n Go to n Enter your User ID (last six digits of your Personnel Number) n As a first time user you ve got to register and set up your password After registration, you ll be taken directly to the New Hire event where you ll name your dependents, make your pension and benefit elections and name your beneficiaries. Important n If you participate in the Initial Defined Contribution segment of the Shell Canada Pension Plan, your voluntary contribution percentage is automatically set at 4% of pensionable earnings so you get the maximum Shell contribution. You may change this contribution percentage through the Shell Benefits Centre at any time. n If you do not elect your Health and Dental plans within 45 days from your date of hire, you will be automatically placed into Health Spending Account Plus Employee Only coverage and will not be able to change your coverage level until the next enrollment period. Enrollment takes place every other fall for the two-year coverage period beginning January 1 of the next odd numbered year (e.g., 2017 and 2019). n To make your defined contribution investment choices: n Contact the Sun Life Financial Customer Care Centre: Toll-free at ( if you re outside Canada) 6 a.m. to 6 p.m. Mountain Time any business day, or Go to the Sun Life Financial Member Services website n To access the Sun Life Financial Member Services website: Go to Enter your Access ID Enter your Password Select Sign In Important Sun Life Financial Member Services website n Until you make investment choices, your contributions and Shell s contributions are automatically invested in the Retirement Target Date Portfolio with the target date (maturity date) closest to but not later than your 65th birthday. Shell Benefits Centre n Toll-free at ( if you re outside Canada and the U.S.) from 6 a.m. to 6 p.m. Mountain Time, or n Go to and use the message centre. This summary communicates part of the policies, plans, programs, and procedures that govern the Shell employment relationship in Canada and by which employees must abide. In the event of any discrepancy between information in this document and applicable Shell plan documents, entitlements will be determined in accordance with the plan documents. At any time, Shell may amend any provision of, or entirely discontinue, any plan, program, policy, or procedure. 2015/10 V A Summary of Shell Canada s Pension and Benefit Plans