2012 IBM Benefits Program Overview (Module II)

Transcription

1 2012 IBM Benefits Program Overview (Module II) For Employees Hired in 2012 April 1, 2012 Welcome Back to Module II of our overview on IBM s 2012 Benefits Program 1

2 Agenda First Module IBM Benefits Overview Health Benefits Enrollment Choices IBM Medical Plan Options, Features, the High Deductible PPO with HSA, Plan Administrators by State, Alternate Anthem Networks, and the Provider Finder Tool Integrated Health Services Program IBM Managed Pharmacy Program Dental Benefits IBM Vision Plan & Vision Discount Card New Hire Health Living Rebate Monthly Contributions & No Coverage Options Flexible Spending Accounts Dependent Eligibility New IBMer Enrollment & What to do If You Need Care Before You Enroll Break Second Module Additional Benefit Programs Available Resources Appendix 2 As mentioned in Module one, we will discuss the additional Benefits Programs, Resources, and Appendix materials here in the second module. Let s get into the material. 2

3 Additional Benefit Plans & Offerings Short Term Disability Long Term Disability Travel Accident Insurance Group Life Insurance Group Universal Life Insurance Employee Stock Purchase Plan 401(k) Plus Plan IBM MoneySmart Vacation Plan Holiday Plan Employee Assistance Program IBM Mental Health Care Program Post Employment Medical (Access) Special Care for Children Assistance Plan Adoption Assistance Program Lifeworks Discount Offerings & Services 3 Here is a list of the Additional Benefit Plans and Offerings we will be covering. As I mentioned earlier, there are a number of additional programs for us to cover. Let s get started with our discussion 3

4 Short Term Disability Short Term Disability (STD) provides wage replacement if you become disabled and are unable to work Company-paid Maximum benefit of 26 weeks (or 1040 hours) in a period of 12 consecutive months Employees with less than 5 years of service: 100% of wage replacement for the first 13 weeks 66 2/3% of wage replacement for an additional 13 weeks After 5 years of service: 100% of wage replacement for 26 weeks Eligible from first day of employment Prorated for reduced work schedule 4 The IBM Short Term Disability Plan provides continuation of your pay when you are absent due to illness or injury. You are eligible for this plan from the first day of employment. The plan provides your regular salary, less any Workers' Compensation wage payments and/or Social Security Disability Income (SSDI) payments, for each day you are absent, up to a maximum of 26 weeks in a period of 12 consecutive months. You will receive 100% wage replacement for up to thirteen weeks and 66 2/3% wage replacement for remaining thirteen weeks, if you have less than five years of service. After five years of service, STD provides 100% wage replacement for a full 26 weeks. For those on commission or incentive plans: After 60 consecutive days, "regular monthly compensation" is defined as on-target earnings, the cash compensation you earn when you achieve 100% of your performance targets. Once it is computed, the difference in amount is made retroactive to when STD payments began. Short-Term Disability Income payments are taxable and will be subject to withholding based on your filing status and subject to FICA deductions. IBM employees REHIRED after January 1, 2004 (The Effective date of the new STD & LTD Plans) do not receive credit for prior IBM service toward STD even though they may be receiving credit, as part of the deal, for service at the customer or acquired company. 4

5 Long Term Disability Long Term Disability (LTD) provides wage replacement after the Short Term Disability benefit has been exhausted New employees: May elect to purchase the 50% LTD option, the 66 2/3% LTD option or No Coverage. Evidence of insurability will be required if employee later increases coverage during annual enrollment, or had previously elected No Coverage and subsequently wishes to enroll After five years of service with IBM, new employees will automatically receive the company-paid 50% benefit level coverage for LTD and may elect to purchase the 66 2/3% benefit level during annual enrollment periods Coordinates with other sources of payment such as Social Security Disability Income and Worker s Compensation Employees must be actively at work to be eligible for LTD Coverage, hence their employment with IBM must have commenced to be eligible for coverage Benefits will not be payable for a disability that results from a Pre-existing Condition until you have been covered for 12 consecutive months. In determining whether a disability is due to a Pre-existing Condition, if the disability occurred within 60 days of the date coverage took effect, and you were covered under another employer s plan providing group disability income coverage you will be credited for any time you were covered under such plan LTD payments will be offset by payments from other sources, such as Social Security Disability or Retirement Income, Workers Compensation, motor vehicle No-fault laws, pension payments, or other earned income Other plan conditions apply, see the About Your Benefits: Health Care, Summary Plan Description document for complete details 5 Under the Long-Term Disability Plan, you may be eligible to continue to receive a portion of your salary if you are unable to return to work and have exhausted your benefits under the Short Term Disability Plan. New employees will have three options to choose from a 50% option, a 66 2/3% option or No Coverage LTD premiums are determined by age, salary and years of service The LTD premiums will be included in your enrollment package and on NetBenefits. Please call the IBM Employee Services Center if you have questions concerning the rates. Under LTD, benefits will not be payable for a disability that results from a Pre-existing Condition until you have been covered for 12 consecutive months. In determining whether a disability is due to a Pre-existing Condition, if within 60 days of the date your coverage takes effect, you were covered under another plan providing group disability income coverage, you will be credited for any time you were covered under such plan You should also know that LTD payments will be offset by payments from certain other sources, such as Social Security Disability Income and Workers Comp. LTD ID cards will be distributed by the Metropolitan Life Insurance Company, the plan administrator. Finally, IBM employees REHIRED on or after January 1, 2004 ( Effective date of new STD & LTD Plans) do not receive credit for prior IBM service toward LTD even though they may be receiving credit, as part of the deal, for service at the customer or acquired company. Non-Speaking Note: A new employee (including a former IBM employee rehired on or after January 1, 2004) who is receiving credit for service at another company as part of an acquisition or SO agreement, WILL NOT be eligible for the terms and conditions of the LTD plan that was in place prior to January 1, 2004, regardless of the amount of service at the other company or prior service with IBM. 5

6 Group Life Insurance Plan Plan is administered by the Prudential Insurance Company of America IBM pays the entire cost of coverage Coverage is equal to one times annual salary Employees pay tax liability on the value of GLI coverage over $50,000: Coverage over $50K can be waived (within 30 days of hire, during annual waiver period, and other select life events) or; You can designate a tax-exempt charity as the beneficiary for amounts over $50K Coverage begins from first day of employment; no application or medical exam required Accelerated Death Benefit: 50% to a max of $50,000 with 6 months of life expectancy Coverage ends on last day of active employment Benefits payable to the beneficiary(ies) you name; if none named, beneficiary determined by plan policy 6 The Group Life Insurance Plan is an IBM paid Benefit Plan administered by the Prudential Life Insurance Company of America Effective with your date of hire, you will be covered by a non-contributory Group Life Insurance (GLI) plan to help supplement your personal life insurance. This Company sponsored Group Life Insurance coverage is equal to one times your current salary (defined as regular compensation, including your current performance target or annual executive incentive - if eligible) rounded to the next higher multiple of $1, The coverage maximum is $1 million. For employees on commission, on-target earnings (OTE) are used. Employees need not apply for this coverage nor is a medical exam required. If your Group Life Insurance benefit coverage amount is more than $50,000, you will pay additional income and Social Security taxes. The IRS uses a table based on age to determine the "value" of your coverage beyond $50,000. This value is considered "imputed income" and is added to your taxable income each pay period and related income taxes are withheld. If you do not want to have a GLI benefit coverage level which creates imputed income (and the related income tax consequences), you will have two options: you can submit a waiver which limits your coverage to $50,000 OR you may designate a tax-exempt charity (or up to ten charities) for the GLI benefit amount in excess of $50,000. If you elect to waive coverage over $50,000, you must complete and submit a GLI waiver form within 30 days of your date of hire. Each year during annual enrollment you will have an opportunity to change your waiver election. This waiver is irrevocable outside of the annual waiver opportunity period unless you experience a qualified status change that would allow you to change your coverage, such as adding a dependent. Finally, there is an Accelerated Death Benefit available under this plan & Coverage ends on your last day of IBM employment. 6

7 Travel Accident Insurance Plan Coverage for accidental injuries while traveling on authorized company business Benefits of up to five times annual eligible compensation for bodily injuries which result in death, dismemberment, or loss of sight, hearing or speech IBM pays the entire cost of coverage Coverage begins from first day of employment Benefits payable to the beneficiary(ies) you name; if none named, beneficiary determined by plan policy 7 The Travel Accident Insurance Plan provides benefits if you are traveling away from your job location or home on company business. Eligibility starts with the first day of your employment. The plan provides benefits of up to five times your annual compensation for accidental bodily injuries which result in death, dismemberment, loss of sight, hearing or speech. IBM pays the entire cost of coverage, which begins on your first day of employment Finally, benefits will be payable to the Beneficiaries you name Non-Speaking NOTES: Following are the reimbursement percentages for Dismemberment: A hand... 50% A foot... 50% Sight of an eye... 50% Speech and hearing in both ears 100% Speech... 50% Hearing in both ears... 50% 7

8 Group Universal Life Insurance Administered and underwritten by The Prudential Insurance Company of America With evidence of good health, employee can purchase coverage up to eight times annual base pay in increments of.25. Minimum coverage is the greater of.25 x annual base pay or $30,000 Maximum coverage is $3 million. Insurance also available for spouse/domestic partner ( $30k - $200k), and children ($10k for all) If eligible and enrolled within 90 days of hire: Employee: Non-medical guaranteed issue of 2X base salary up to $750 K Spouse/DP: Non-medical guaranteed issue of $50,000 Short form Evidence of Insurability for amounts over guaranteed issue amount. Long form may be required based on assessment of short form Accelerated Death Benefit: 50% to a max of 6 months life expectancy Monthly premium based on the amount of insurance chosen, age and whether smoker or non-smoker Portability/continuation of coverage feature provided at higher rates Optional AD&D coverage and cash accumulation features are available 8 The Group Universal Life insurance program is a voluntary Term Life insurance program offered to IBM employees and their families, (spouse/domestic partner and children). It is administered and underwritten by Prudential Insurance Company of America. It is an Employee Pay ALL plan and is not sponsored or endorsed by IBM. The company is simply giving employees access to term Life Insurance at affordable group rates. By providing evidence of good health, you can purchase term life insurance of up to eight times your annual compensation to a maximum of $3 million. If you are eligible and enroll within 90 days of your date of hire, you will be eligible for Guaranteed Issue Term Life Insurance equal to 2 times your annual salary, not to exceed $750,000. Coverage for greater than 2 times annual base pay is available after providing "simplified" evidence of good health. The spouse guaranteed issue amount is $50,000 Like the GLI program there is an Accelerated Death Benefit available Premiums are based on your age, the amount of insurance procured and whether you are a smoker or non-smoker The program is portable and you can continue coverage at higher premiums should you leave IBM. Prudential will mail you a new hire kit to your home within two weeks of your DOH. It will contain additional details as well as enrollment instructions. Non-Speaking Notes: Eligibility: Employee must be at work and able to perform normal activities on the effective date of coverage. Employees will be instructed to access the website For ID, use IBM serial number including CAP for any alpha character; for PW, use DOB in this format: MMDDYYYY. The ACCESS code is This is not an employer-sponsored welfare benefit plan, nor is it endorsed by IBM. Any questions should be directed to The Prudential Insurance Company of America For Texas residents, (1) total employee life insurance, including basic life insurance provided by employer, may not exceed the greater of 8 times base pay or $250, 000 and (2) spouse/dp coverage is only permitted with employee participation and cannot exceed the employee s coverage amount.) 8

9 IBM Employee Stock Purchase Plan Allows IBMers to share in company ownership at a discounted price Convenient payroll deduction Automatic 5% discount from market price on date of purchase Enables the purchase with up to 10% of your pay, in any whole increment, to to a maximum of $25,000 worth of IBM Stock shares in a calendar year Dividend payout option cash or re-investment, at your choice Flexible enrollment eligible employees can join any time during the offering period Typically, there are two offering periods each year: January 1 to June 30 July 1 to December 31 9 The IBM Employee Stock Purchase Plan allows employees to share in company ownership via payroll deduction at a 5% discount from the market price on the date of purchase Employees may purchase IBM Stock up to 10% of their pay to a maximum of $25,000 in a calendar year ESPP terms allow you to enroll or change your contribution level at any time during the offering period. However, you must be an IBM employee on the first day of the offering period in order to participate during that offering period. The offering periods normally run January 1 June 30; July 1 December 31. You may withdraw from the plan at any time. If you sell shares during the same offering period in which they were acquired, you will be dropped from the ESPP plan for the balance of that offering period as well as the following offering period. Payroll deductions are taken on an after-tax basis. Please know this plan is completely separate from the 401(k) Plus Plan in which IBM Stock is one of the many investment choices. 9

10 IBM 401(k) Plus Plan Automatically enrolled at 5% of your pre-tax eligible earnings approx. one month after receiving enrollment package if no action taken; funds are immediately vested Contributions up to 80% of pre-tax earnings (subject to IRS limits) After one year IBM will: Contribute 1% to employee s pre-tax account regardless of their savings pattern Match 100% of first 5% of employee s Pre-tax or Roth contributions * Matched funds are immediately vested ROTH feature available: Contributions made on after-tax basis, investments grow tax free, and must be held for 5 years Contributions are also eligible for IBM match Employees may make either or both pre-tax or Roth contributions, up to the 2012 IRS limits < Age 50: $17,000 > Age 50: $22,500 with the $5,500 Catch-up Contribution Allowance Additional after-tax feature available (up to 10% ) with no company match 10 IBM offers the 401(K) Plus Plan to encourage employees to save and maintain the habit of saving. You are automatically enrolled at 5% of your pay in before-tax 401(k) contributions. These deferrals will be invested in the Target Date Portfolio Fund that most closely corresponds to the year in which you will reach age 60. You have approximately one month to elect a higher deferral rate, opt out and/or elect different investments. If you do nothing, your 401(k) pre-tax deferrals will start with your paycheck following your automatic enrollment period. The plan also has a ROTH feature to which employees may contribute on an after-tax basis. Investments grow tax free (rather than tax deferred) and contributions must remain for 5 years Employees may participate in the before-tax 401(K) Plan, the Roth or some combination of both of these accounts. The total of employee contributions combined can not exceed the annual IRS maximums. IBM s contribution will not exceed a total of 6% within the pre-tax and/or Roth accounts combined. There is no IBM match on catch up contributions for those 50 and older. Regardless of which option employee chooses, by law, company contributions must be made into employees before-tax IBM match account. Once money is contributed into a Roth 401(k) account, it cannot be moved to a before-tax 401(k) account. Eligible Compensation includes salary, commissions, Growth Driven Profit-Sharing payments, and Over-Time pay. Employees must separately choose a deduction % for Growth Driven Profit-Sharing payment and commissions or none will be taken either on a pre-tax or post tax basis. And Auto enrollment will not occur for performance pay. We will continue this discussion on the next slide 10

11 IBM 401(k) Plus Plan - Continued Investment Options: Over 30 primary funds plus a Mutual Fund Window providing access to 165 name-brand mutual funds. Semi-Monthly Match Maximizer ensures receipt of maximum IBM match for your savings level Rollovers are acceptable from former employers Pre-Tax Qualified Plans Employees can borrow against their 401(K) balance up to half their balance to a maximum of $50,000 Disability protection insurance Per IRS Rules enrollment is only open during the Fall Annual Enrollment Period for the coming year People hired after Jan 1 st can not enroll until the next year, and must do so during the Fall Annual Enrollment cycle The Insured Amount is based on the employee s contribution during the prior year Deductions Your HRTM will communicate the enrollment timeline to you IBM Does not support retroactive Deductions Employees can contribute up to the regulatory amounts, even if they enroll late Employees can change deductions any time throughout the year via NetBenefits (K) Plus Plan - Continued There are 30+ Investment Options available under the IBM 401(K) Plus Plan, and Trading restrictions apply. Reference the 401(K) materials for details. The 401(k) Plus Plan features a semi-monthly match maximizer to ensure that you receive the maximum match for your savings level, regardless of your contribution pattern during the year. This maximizer automatically makes up any difference between your actual calendar year matching contributions and the maximum you would have received if you had contributed the same amount of money, in a more even pattern, throughout the year. In the first year you are eligible for match, only the contributions made and eligible pay earned after your match eligibility date will be included in the match maximizer calculation. In the extreme example, if you make all your 401(k) contributions before your match eligibility date, you will not be eligible for any match during that year. Rollovers are acceptable from former employer s pre-tax qualified plans. Your HRTM will communicate the Rollover information to you if it applies. You may borrow up to half the value of your account, but no more than $50,000 and repay the loan through payroll deductions. Unless you have a qualified hardship, you may not withdraw from your account while you are employed by IBM until age 59-1/2. You should Designate your Beneficiary at time of enrollment via NetBenefits There is a Disability Protection Program available in concert with the 401(K) Plus Plan. Employees joining IBM on or after Jan.1, of a given year may not enroll in this option until the next annual enrollment period for effect on the coming year, starting on Jan.1st. It is also worth mentioning that the insured amount is based on the employee s contribution during the prior year. Account valuation and transaction processing are done on a daily basis. In regard to 401(K) deductions Your HRTM will communicate the enrollment window to you. They will tell you the date you must complete your contribution deduction enrollment for you to have your deductions taken in the first available pay cycle. Please know IBM does not make retroactive deductions if employees enroll late in the 401(K) Plus Plan. However, employees that enroll after the 1 st payroll cycle can still contribute up to the regulatory amounts, and can change their deductions at any time throughout the year. Finally, the IBM 401(K) Plus Plan with IBM s matching contribution provides a great retirement savings vehicle for employees. We encourage you to read the plan materials and to participate in it. 11

12 IBM MoneySmart Financial education and planning to help employees with financial decisionmaking on a range of issues, including retirement and estate planning, debt management, college savings, tax and investment strategies and other topics Offered at no cost to all IBM U.S. regular employees MoneySmart is brought to IBMers through world-class third parties who are trained in financial planning and investments: The Ayco Company L.P., a Goldman Sachs Company, and Fidelity Investments MoneySmart coaches are credentialed financial representatives trained in IBM programs and benefits The MoneySmart portal on the You and IBM Web site includes access to: Educational seminars Financial tools, calculators and quick links A library of financial topics Scheduling software to schedule a one-on-one phone counseling session with MoneySmart coaches 12 We offer the IBM Money Smart Program to help educate employees about financial planning This many faceted program has been extremely popular among our employees. It is offered at no cost to all regular U. S. Employees To date, thousands of people have engaged the counsel of the professional financial advisors, and the feedback we ve received has been excellent Finally, you may sign up for these services approximately 2 weeks after your IBM date of hire. 12

13 IBM Vacation Plan Vacation is earned based on years of service: Length of Service Days of Vacation Less than 10 years service 15 More than 10 years service 20 Vacation is earned and accrued on calendar year basis (Jan. 1 through Dec. 31) In year of hire, vacation is based on the number of full months worked as a regular employee Vacation can be taken at any time during the year in weeks, days or half-days Vacation taken before it is accrued is considered a salary advance Vacation earned but not used is considered excess and will result in a reduction to the maximum number of new days you can earn the following year Vacation days are prorated for employees on a reduced work schedule 13 The IBM Vacation Plan provides employees with time off for rest and relaxation. The number of days you are eligible for is based on your years of service. Employees will be eligible to accrue a maximum of 4 weeks vacation. Vacation days not taken during a calendar year are considered excess days. These days will result in a corresponding deduction to the following year s earned vacation. You may take your vacation any time during the year, with management concurrence, and vacation may be taken in weeks, days or half-days. However, your full vacation is not earned until you have worked the full year. Vacation taken before it is earned is considered a salary advance that would have to be paid back to IBM in the event your employment terminates before you have earned all the vacation you have taken. Non-Speaking Note: Even when getting credit for prior service at another company, all employees being hired OR rehired after January 1, 2004 will be on the IBM Vacation Plan that became effective on January 1, This means that the maximum number days of vacation days accrued will be 20 NOT 25 as under the prior plan regardless of the amount of service credit being given. 13

14 IBM Vacation Plan Accrual Table Service Attained During Calendar Year (Full-time Employees) Full Months Worked Less than 10 Years Days Years Days * A full month worked means working from first workday of the month through the last workday of month. 14 This matrix reflects the number of vacation days accrued in the year of hire based on the number of full months remaining in the year. California state law requires vacation for eligible California employees be accrued on a daily basis, and they are earned accordingly based on years of service. Non-Speaking Notes: Regular or Regular Part-Time employees, or employees on a Leave of Absence residing in California joining IBM in California will earn vacation on a daily pro-rated basis, from January 1 st to December 31 st, based on their years of service. What does this mean? It means that an employee joining IBM in CA may get slightly more vacation in the year of hire, depending on the date of hire. Also, in the year of separation, he/she might get slightly more vacation depending on the separation date. 14

15 IBM Holiday Plan Provides 12 holidays each year, six of which are generally observed nationally: New Year s Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day Other six holidays vary by location based on operating requirements or local custom With management approval, Personal Choice Holidays are taken at an employee s option Unused days cannot be carried over into the next year or cashed out Holidays are prorated for employees on a reduced work schedule Personal Choice Holidays during an employee s year of hire, rehire or return from leave of absence will be prorated 15 The IBM Holiday Plan provides for 12 Holidays a year, six of which are generally observed nationally As many as 5 of the remaining six holidays may be "assigned" and communicated each year by your Division, organization or site based on operating requirements or local customs. Any holidays not assigned are considered Personal Choice Holidays and may be taken anytime during the year with management approval. Holidays may not be taken in half-days, and they may not be carried over into the following year, nor can they be cashed out Holidays are pro-rated for employees on a reduced work schedule. Your HR Transition Manger will inform you of the number of holidays you have based on your date of hire. On commercial accounts IBM management normally attempts to observe those optional holidays observed at the client s location. Non-Speaking Note: Puerto Rico employees receive 12 paid holidays. While Puerto Rico recognizes more than 12 holidays, if an employee takes more than the 12 IBM paid holidays, the additional days will be considered vacation days 15

16 Employee Assistance Program (EAP) Available to all employees and dependents Provides support for a variety of life events and everyday challenges including: Work stress Coping with change Family/parenting issues Grief or bereavement Anxiety or depression Communicating effectively EAP provides up to Eight (8) free counseling sessions with a licensed mental health professional Available to all employees and eligible dependents even those who opt out of health benefits coverage Program is administered by OptumHealth Behavioral Solutions The Clinical Referral Line [ (TTY: )] is toll free, available 24/7, and is staffed by licensed mental health professionals 16 The EAP is available to all employees and their eligible dependents, even if you enrolled in an HMO or elect No Coverage through IBM. Working with your EAP counselor, you can learn skills and behaviors to assist you in gaining control of your situation. You may use this counseling session more than once during any given year to help you with different issues, or after a period of time if the same problem recurs. Remember, you can also take advantage of the informational resources available at any time and as often as you like. The Employee Assistance Program is not intended for treatment of long-term problems or mental illnesses. For more intensive treatment of serious, emotional problems or severe substance abuse issues, employees should utilize the mental health benefit provided under their medical plan. The EAP is Administered by Optimum Health Behavioral Solutions. You can call The tollfree number for the Clinical Referral Line 24 hours a day, 7 days a week. 16

17 IBM Managed Mental Health Program (MMHC) A Clinical Referral (TTY: ) is staffed by mental health clinicians, and is available 24/7 to assist employees (Regardless of their Medical Plan Option) in accessing mental health services provided under the IBM Mental Health Care Program; including the Employee Assistance Program (EAP), and the IBM MMHC Program. IBM s MMHC Program provides more intensive outpatient and inpatient treatment to participants enrolled in the IBM PPO, IBM PPO Plus, IBM EPO, and IBM High Deductible PPO with HSA Medical Options through a qualified network of treatment providers and/or facilities The Managed Mental Health Care Program, administered by OptumHealth Behavioral Solutions by United Behavioral Health is available to assist individuals who require further assistance beyond what the EAP offers. No pre-certification required for routine outpatient services Non-routine services still need pre-certification (e.g. psychological testing, and Substance Abuse treatment) Program has In and Out-of-Network Benefit features depending on your Medical Plan Option Deductibles and Out-of-Pocket Maximums are combined with the Medical Options Reference the IBM Health Benefit Comparison Charts included in your enrollment materials or the About Your Benefits: Health Care, Summary Plan Description document available in the reference library on NetBenefits for details. 17 The IBM Mental Health Care Program has three components, a Clinical Referral Line, the Employee Assistance Program which we discussed previously, and the Managed Mental Health Care Program. The Clinical Referral Line is available to all employees, regardless of the plan option they are enrolled in as is the EAP The Managed Mental Health Care Program is available to employees and dependents enrolled in the IBM PPO, IBM PPO Plus, IBM EPO and IBM High Deductible PPO with HSA Medical Plan options. It is not available to employees and dependents enrolled in HMOs. The Managed Mental Health Care Program is administered by OptumHealth Behavioral Solutions and provides more intensive outpatient and inpatient treatment to participants Reference the IBM Health Benefits Comparison Charts included in your enrollment materials or the About Your Benefits: Health Care, Summary Plan Description document available in the Reference Library on NetBenefits for further details 17

18 Post Employment Medical (Access) If certain age and service requirements are met, employees will have access to post-employment health care coverage Enrollment is a one-time opportunity, and if you decline coverage when you leave IBM you waive your right to future coverage Eligible if you leave IBM at age 55 with at least five years of service, AND if age plus service equals 65. For example: 55 years old + 10 years of service 58 years old + 7 years of service 60 years old + 5 years of service Can continue IBM health care coverage for yourself and eligible dependents Pay full cost of coverage at retiree group rates 18 IBM provides access to retiree health care plans to employees who leave IBM after having achieved certain service and age mile stones. Enrollment is a one-time opportunity if you decline coverage you waive the right to future coverage. The Age and Service requirements listed here are pretty straightforward In retirement, you will be able to continue coverage for you and your eligible dependents at retiree group rates 18

19 Special Care for Children Assistance Plan Assists with expenses outside the scope of the IBM Medical and Dental Plans for the care of a child with mental health, physical or developmental disabilities. A $150 annual family deductible, which is separate from the annual deductibles under all the other IBM Medical Plan options, applies Maximum lifetime benefit of $50,000 per child Eligible expenses may include: Special education facilities Independent practitioners and services Academic remediation Evaluation and testing Special devices Coverage ends when child reaches age 26, is no longer eligible, or benefits under the plan are exhausted, whichever occurs first. 19 IBM offers the Special Care for Children Assistance Plan to help employees meet expenses for certain treatment and therapy outside the scope of coverage under the IBM Medical and Dental Benefits Plan for eligible children with mental, physical, or developmental disabilities. There is a $150 annual family deductible. The Maximum Benefit is $50,000 per child You will be eligible for this assistance only after you have received all aid available to you and your child from federal, state and other sources. Each case is individually reviewed to determine eligibility for assistance. Upon approval, reimbursement is provided for a portion of the eligible charges incurred, until the child attains the age of 26, reaches the lifetime maximum total benefit of $50,000 or is no longer eligible for IBM benefits coverage, whichever occurs first. Call the IBM ESC for additional information or to have an application sent to you. 19

20 Adoption Assistance Program Provides financial assistance towards expenses incurred in the adoption of a child IBM pays 80% of eligible expenses related to adoption, up to $2,500 per family for each adoption Eligible expenses may include: Application fee Adoption agency fees Placement fees Legal fees Hospital expenses for birth mother and baby Acclaris is the Program Administrator, and can be (TDD/TDY: ) 20 The Adoption Assistance Program provides financial assistance towards expenses incurred in adopting a child The Plan covers the adoption of: Unrelated minor children Foreign minor children Minor children of relatives Minor stepchildren Minor twins or multiple children IBM pays 80% of eligible expenses up to $2,500 per family for each adoption, and there is no limit on the number of adoptions you can make. Acclaris administers the program Finally, Under the LifeWorks program, IBM also provides adoption counseling at no cost to you. We ll cover the Lifeworks program next. 20

21 LifeWorks Free resource and referral program Provides information on a variety of topics, including: Elder care referral Adoption planning Time management Balancing work and family Available to all employees and their eligible dependents No cost to employees for this service Call (TTY: ) or visit them (User ID: ibm, Password: bigblue all lower case) 21 IBM understands it is difficult to balance work and life responsibilities among your job, family, finances, and personal interests. Hence, we offer the LifeWorks Employee Work/Life Program which provides a wide variety of assistance to help you balance your interests and responsibilities. LifeWorks can provide you with practical information and advice on subjects in a number of ways, including: Advice from experienced professionals and Referrals to care locators and other resources Free booklets, Audio recordings, Articles, and Online information resources Personal Assessment Tools LifeWorks is available to all employees and dependents at no cost. It's a free, fast, effective and easy to use program. Finally, LifeWorks consultants speak Spanish and they offer simultaneous translation into more than 140 other languages. Non-Speaking Note to HRTM retirees: For your personal access, use ID ibm and PW: retirees. Then, when registering, use your IBM retiree serial # (same one you had as regular employee), Do NOT use your supplemental serial #. 21

22 Discount Offerings and Services IBM Club: Discounts on national/regional entertainment & local services Website: Discounts for IBMers One stop destination for IBM employee discounts and services Includes Employee Purchase Program for Lenovo laptops and more Website: 22 IBM offers access to Discounted goods and services through the IBM Club and some of our business partners The IBM Club is a group that brings employees and retirees, as well as their families, together outside of work to participate in activities that are social, cultural or recreational. The IBM Club also makes available discounts to entertainment, leisure and recreational venues and events. The IBM Club home page also includes a link to the IBM Clubs where discounts may be provided at the local or national level. IBM Clubs exist in about 150 locations worldwide today. Traditionally, clubs have been the strongest at locations with large IBM populations. Discounts for IBMers is your single destination for all discounts on products, services and programs available to employees from IBM's clients, partners and vendors. IBMers in the U.S. can take advantage of these discounts, which leverage IBM's buying power to benefit IBMers and support our clients' interests by giving their products greater exposure. The Beneplace website also provides access to the Employee Purchase Program, through which employees can purchase Lenvovo laptops and desktops at discounted prices and IBM Certified Used Equipment at significant savings. 22

23 Resources Available Your HR Transition Manager IBM Employee Services Center (ESC) Before your Date of Hire: (TTY ). Note, you will be asked to identify your current employer name by the ESC Representative before h/she can render assistance. After your Date of Hire: (TTY ) Service representatives are available from 8:30 a.m. to 8:30 p.m.(est) to answer benefits questions and to take your Health care benefits enrollments. NetBenefits Web site at Plan Finder Provider Finder Plan Administrators & Contacts WebMD Health Management Center The extensive Reference Library containing the Enrollment Guide, Comparison Charts, Summary Plan Description documents, Domestic Partner Info Guide, Legal Notices, etc ) * Your HR Transition Manger will communicate the NetBenefits availability date After you are connected to IBM systems: You and IBM Web site at Summary Plan Descriptions are available on w3, and in the NetBenefits Reference Library provide complete details on IBM s benefits programs 23 There are several resources available to you for detailed or specific information on IBM Benefits starting with your HR Transition Manager Some Acquisitions and IT Outsourcings may have their own Extranet site on which additional information including FAQs may be posted. Your HR Transition Manger will communicate this information to you if available. The IBM Employee Services Center is available from 8:30 AM to 8:30 PM, Monday through Friday, to provide information, problem resolution assistance, and enrollment over the phone. You may call the 2008 number before your Date of Hire for information and enrollment, and the 9876 number once you are on board as an IBM employee after your Date of Hire As previously mentioned, you will be required to establish a PIN with the Employee Services Center. This helps protect your personal information. The NetBenefits web site tool is your destination for enrolling in IBM health benefits when you are first eligible, for making changes during the year, if you have a qualified status change, and for obtaining information on IBM s Benefit Programs. NetBenefits has a variety of helpful tools, such as Plan Finder (which matches your options against criteria you select),provider Directory (to see which doctors participate in what plans), and the WebMD Health Management Center as well as the other information referenced here You can view your benefit options and enroll in your IBM benefits online from anywhere you have internet access after your Date of Hire, using your Social Security number or Customer ID and PIN. Your HR Transition Manager will advise you when NetBenefits is available to you. Most of the programs explained in this presentation have 800 numbers available. The contact listing of phone numbers and Web sites is readily available through NetBenefits or the You & IBM Web site, which also contains information on each program, and which will be available to you once you are connected to IBM systems. 23

24 Appendix IBM Regional IBM Medical Carriers IBM Routine Preventive Care Coverage Covered Services 24 This Appendix is intended to provide additional details on specific benefits topics referenced in the presentation modules 24

25 Regional IBM Medical Plan Carriers Carrier Aetna Anthem Blue Cross/Blue Shield MVP UnitedHealthcare Arkansas Connecticut Colorado Alabama California Georgia Hawaii Iowa Illinois Indiana Kansas Kentucky Louisiana Alaska Arizona District of Columbia Florida Idaho Maryland Regions Delaware New Jersey Massachusetts Maine Michigan Minnesota Missouri Mississippi North Carolina North Dakota New Hampshire New York (Albany/Poughkeepsie/Binghamton/Endicott) Vermont Montana Nebraska New Mexico Nevada Oregon Oklahoma Texas NY City & Suburbs Northern & Western NY Ohio Pennsylvania Rhode Island South Carolina South Dakota Tennessee West Virginia Utah Virginia Washington Wisconsin Wyoming 25 This slide is a text only version of the color map shown on slide 8, depicting IBM s Medical Plan Carriers by state It should help in situations where employees prefer to print the information with a black and white printer 25

26 100% Routine Preventive Care Coverage Covered Services Well Woman: Well woman exam: Cervical (PAP) test General Adult: Well Adult exam: Lipid profile, CBC, routine multi-channel blood test,glucose, EKG. Cholesterol Screening with or without general adult exam Hypertension Screening with or without general adult exam Osteoporosis Screening exam: Including bone mineral density tests. Adult Cancer Screening: Fecal occult blood screening; Sigmoidoscopy & Screening biopsy and polyp removal; Colonoscopy & Screening biopsy and polyp removal (including anesthesia and facility charge); Prostate Cancer Screening; PSA & Digital Rectal Exam (DRE); Mammography; Skin Cancer Screening Newborn: State required congenital screenings; PKU; hearing testing; sickle cell, hemoglobin & hematocrit, glucose, bilirubin and galactose Child: Well Child Exam: Hemoglobin and/or Hematocrit, TB, Lead, Urinalysis Adolescent: Well adolescent exam; Cervical (PAP) test starting at 18 Immunizations: Diphtheria, Tetanus. Pertussis (DPT); Hemophilus influenza B vaccine; Hepatitis A vaccine, Hepatitis B vaccine, Influenza virus vaccine, MMR (Measles, Mumps, Rubella) Pneumococcal vaccine, Poliovirus vaccine, Varicella vaccine, Cholera vaccine, Meningococcal polysaccharide vaccine, Typhoid vaccine, Yellow fever vaccine, Rotavirus and HPV Vaccine (e.g., Gardasil) 26 Here is the list of the Routine Preventive Care Services Covered under the IBM PPO, IBM PPO Plus, IBM EPO, and IBM High Deductible PPO with HSA medical options discussed on slide 5 What s NOT Covered at 100% or Deductible Free you might ask? -- If you receive screenings in the course of diagnosis or treatment for a particular condition, you may be required to meet a deductible and pay any applicable coinsurance or copayment. This means any subsequent or follow up diagnostic testing, performed as a result of findings indicated by the routine/ preventive services visit, will not be eligible for 100% reimbursement or waiver of the deductible. In terms of HMO coverage, please check with the individual HMOs your interested in to understand what their covered Preventive Care Services entail 26

27 Legal Disclaimer This presentation is intended to provide highlights of certain IBM plans and programs in which you may be eligible to participate. Complete details can be found in the official plan documents which remain the final authority in the event of a conflict. IBM reserves the right, at its discretion, to amend, change or terminate any of its plans, programs, policies, practices, as the company requires. Nothing contained in this information shall be construed as creating an expressed or implied obligation on the part of IBM. 27 This concludes our presentation Thank you for taking the time to educate yourselves on the Benefits IBM offers I hope you will take full advantage of the additional resources discussed today as you make your enrollment decisions. As we close this discussion, I want to welcome you to IBM and wish you continued success in your career with us. 27