About Your Benefits 1

Transcription

1 About Your Benefits 1 BENEFIT HIGHLIGHTS Your Benefits. Provide Immediate Eligibility for You and Your Family As a Full-time or Part-time Employee, you are eligible for coverage under most benefits on your first day of work. For more information about eligibility, refer to the next section. Offer Some Coverage Automatically, At No Cost to You If eligible, you are automatically covered under the following benefits at no cost: Employee Assistance Program (EAP) Short Term Disability Long Term Disability Business Travel Accident Insurance Basic Life and AD&D Insurance Pension Plan Let You Choose the Benefits That Are Right for You If eligible, you may elect coverage under the following benefits: Medical (including prescription drug and vision) Dental Flexible Spending Accounts Employee Supplemental Life Insurance Dependent Life Insurance Employee Supplemental AD&D Insurance Dependent Supplemental AD&D Insurance Savings Program (automatic enrollment with option to change contribution amount) Offer Tax-Effective Coverage Premiums for medical and dental benefits are deducted before-tax. You may also make before-tax contributions to the Savings Program and flexible spending accounts.

2 About Your Benefits 2 ELIGIBILITY Employee You are eligible to participate in the benefits described in this handbook if you are employed and paid as a Full-time Employee of the Company. Part-time and Temporary Employees are eligible for certain levels of benefits as listed under the Eligibility at a Glance chart. Individuals who are paid as independent contractors or who are leased from another employer are not eligible to participate in any benefits. The terms Full-time Employee, Part-time Employee and Temporary Employee are defined in the Glossary. Dependents You may choose to cover your eligible Dependents for medical (including prescription drug and vision), dental, life and supplemental AD&D benefits if you are enrolled for coverage under these benefits. Your eligible Dependents may also use the Employee Assistance Program. The term Dependent is defined in the applicable benefit booklet for each benefit or in the Glossary. Special Eligibility Rules for USEC Inc. Families If you and your spouse both work for the Company and are both eligible to participate in the Company s benefits, you may enroll in each benefit as an employee or a spouse, but not both. In addition, only one of you may enroll your eligible Dependent children. Medical Plan Surcharges In addition to the monthly premium deduction for medical coverage, beginning January 1, 2013 you will pay a monthly surcharge, if applicable, under the following Policies: Tobacco Free Policy If you, your spouse or one of your adult dependents is covered under the USEC Inc. Health Benefit Plan and one or more of the covered adults uses tobacco, the employee will pay a monthly surcharge regardless of the number of tobacco users covered in the family. Spousal Surcharge Policy If your spouse maintains full-time employment and is eligible for health benefits coverage through his/her employer and is enrolled under the USEC Inc. Health Benefit Plan, you will pay a monthly spousal surcharge. This surcharge has become more prevalent in the market and it allows the Company to offer affordable coverage while giving you the ability to cover your spouse if you choose to do so.

3 About Your Benefits 3 Eligibility at a Glance This chart provides a brief overview of the eligibility requirements for each benefit. Refer to the applicable benefit section and/or benefit booklets provided by the Company and/or the insurer for complete information regarding eligibility. When You Are Eligible Benefit Full-time Employee (Regular) Part-time Employee (Regular) Temporary Employee (Full-time and Part-time) Medical (including prescription drug and vision) On your first day of work On your first day of work* Not eligible Dental On your first day of work On your first day of work* Not eligible Employee Assistance Program Flexible Spending Accounts On your first day of work On your first day of work On your first day of work On your first day of work Not eligible Not eligible Short Term Disability On your first day of work Not eligible Not eligible Long Term Disability On your first day of work Not eligible Not eligible Basic Life and AD&D Insurance Supplemental Life and AD&D Insurance Dependent Life and Supplemental AD&D Insurance Business Travel Accident Insurance On your first day of work Not eligible Not eligible On your first day of work Not eligible Not eligible On your first day of work Not eligible Not eligible On your first day of work On your first day of work On your first day of work Pension Plan** On your first day of work On your first day of work On your first day of work Savings Program On your first day of work On your first day of work On your first day of work * Part-time Employee eligibility for benefits depends upon hours scheduled to work as outlined in the applicable benefit booklet or, if none, the benefit section of this handbook. **Refer to Pension section for information on the eligibility requirements.

4 About Your Benefits 4 ENROLLMENT Many benefits are available to you through the Company s Benefit Program. Although some benefits are provided automatically, enrollment is necessary for others. If eligible, you are automatically enrolled in the following benefits: Employee Assistance Program Short Term Disability (Basic) Long Term Disability (Basic) Basic Life and AD&D Insurance Business Travel Accident Insurance Pension Plan Savings Program (automatic enrollment with option to change contribution amount) If eligible, you may elect to enroll in the following benefits when you are first eligible: Medical (including prescription drug and vision) Dental Flexible Spending Accounts Supplement Life and AD&D Insurance Dependent Supplemental Life and AD&D Insurance To enroll for any of these benefits, except the Savings Program as outlined below, you must go online to the USEC Benefit Service Center at to: Enroll yourself and eligible Dependents and Authorize the Company to deduct from your pay your share of the premium for the coverage you elect. When you begin work for the Company, the Savings Program trustee and record-keeper will be notified of your employment and mail an activation kit explaining how to use the Savings Program Information Line and Internet features and how you initiate setting up your account. Refer to the Savings Program section for more information on the enrollment process.

5 About Your Benefits 5 When you enroll in the life and AD&D benefits or the Savings Program, you will be asked to complete a beneficiary form on which you name a beneficiary (e.g., a person, organization, or trust) to receive any benefits that may become payable in the event of your death. You must return all beneficiary forms to Human Resources. It is important to keep your beneficiary designations up-to-date to ensure that any benefits payable in the event of your death are paid to the beneficiary of your choice. WHEN COVERAGE BEGINS New Hires If you are eligible and you enroll as a new employee, your coverage for each benefit will begin as described below. If you are not actively at work on the date your coverage would otherwise be effective, your coverage will begin on the day you return to work. Any coverage you elect for your eligible Dependents will begin on the same day your coverage begins. Medical (Including Prescription Drug and Vision) Full-time Employees and Eligible Part-time Employees: Coverage begins on your first day of work, provided you enroll within 31 days of that date. Dental Full-time Employees and Eligible Part-time Employees: Coverage begins on your first day of work, provided you enroll within 31 days of that date. Employee Assistance Program Coverage begins on your first day of work. Flexible Spending Accounts Full-time Employees: Coverage begins on your first day of work. You may request reimbursement for eligible expenses incurred on or after your first day of work. Payroll deductions begin as soon as administratively possible following your election. Short Term Disability Full-time Employees: Coverage begins on your first day of work. Long Term Disability Full-time Employees: Coverage begins on your first day of work. Basic Life and AD&D Insurance Full-time Employees: Coverage begins on your first day of work.

6 About Your Benefits 6 Employee Supplemental Life Insurance and AD&D Full-time Employees: Coverage begins on your first day of work if your date of hire is the first day of the month; otherwise, coverage begins on the first day of month following your date of hire, provided you enroll within 31 days. Dependent Life and Supplemental AD&D Insurance Full-time Employees: Coverage begins on your first day of work if your date of hire is the first day of the month; otherwise, coverage begins on the first day of month following your date of hire, provided you enroll within 31 days. Business Travel Accident Insurance Coverage begins on your first day of work. Pension Plan If you are eligible, coverage begins on your first day of work. Savings Program You will automatically be enrolled in the Savings Program. Contributions in the form of payroll deductions will begin as of the first payroll period ending 60 days after your date of hire. If you do not wish to make contributions to the Savings Program or if you wish to contribute at a different level than the automatic enrollment rate, you may change your election within the first 60 days after your date of hire (or at any time thereafter). You may elect to change your automatic enrollment contributions before they begin or stop your contributions within 90 days of your first contribution to receive a return of contributions, as adjusted for earnings and losses. Refer to the Savings Program section for more information about the automatic enrollment process.

7 About Your Benefits 7 WHEN YOU MAY ELECT COVERAGE You may elect benefits coverage when you first become eligible. In addition, you may enroll for some benefits during open enrollment periods as described in the chart. Benefits Enrollment & Coverage If You Are Eligible, You May Enroll For.. Open Enrollment Typically.. For Coverage Effecting on the Following.. Medical (including prescription drug and vision) Near end of the year January 1 Dental Near end of the year January 1 Flexible Spending Accounts Near end of the year January 1 When You May Change Your Elections Coverage you purchase with after-tax contributions: You may change or cancel these coverages at any time. Coverage you purchase with before-tax contributions: You have an opportunity to change your elections during open enrollment each year. If you experience a qualifying life event a work status or family status change (see examples listed under Qualifying Events ) you may be able to change your benefit elections during the year. In general, you need to make such election changes within 31 days of the qualifying life event.

8 About Your Benefits 8 PAYING FOR YOUR BENEFITS The Company pays for some of the cost of your benefits package. For some benefits, such as basic life and AD&D, EAP, disability, and business travel accident insurance, the Company pays the full cost. For other benefits, you and the Company share the cost or you pay the full cost of coverage. Benefit The Company Pays the Full Cost of Coverage You Share the Cost of Coverage with the Company through... You Pay the Full Cost of Coverage through Medical (including prescription drug and vision) Before-tax contributions Dental Before-tax contributions Employee Assistance Program * Flexible Spending Accounts Short and Long Term Disability Benefits (Basic) * Before-tax contributions Basic Life and AD&D Insurance * Supplemental Life and AD&D Insurance Dependent Life and Supplemental AD&D Insurance Business Travel Accident Insurance * After-tax contributions After-tax contributions CHANGES AT OTHER TIMES Qualifying Life Events After open enrollment, you may change your elections for benefits that you purchase with before-tax contributions during the year only on account of and consistent with a qualifying life event or upon certain changes in cost or coverage. A qualifying life event includes: Marriage, legal separation, annulment, or divorce The birth or adoption (or placement for adoption) of your child The death of a spouse or child

9 About Your Benefits 9 The loss or gain of benefit eligibility of your child The termination or commencement of employment of you, your spouse or child A significant reduction or increase in hours of employment for you, your spouse or child, including a switch between part-time and full-time or commencement of return from unpaid leave of absence A change in health coverage due to your spouse s employment A special enrollment period for group health benefits as required by law A qualified medical child support order that requires your child to be covered under the medical and/or dental benefit You, your spouse or child becomes eligible (or loses eligibility) for Medicare or Medicaid You move outside of the network covered under the medical benefit or Involuntary loss of other group health plan coverage. The following are a few examples of election changes that are consistent with a qualifying event: With This Qualifying Event... You Can Make These Changes, if Consistent*... Marriage, birth, adoption or placement for adoption of a child Divorce, legal separation, or annulment Death of your spouse or child Involuntary loss of other group medical coverage Your child ceases to be a Dependent (such as due to age, marriage or employment) You move outside the coverage network Add yourself, your spouse and/or children; drop coverage if you are to be covered by your spouse s plan Drop your spouse and/or children; add coverage if you had been covered under your spouse s plan Drop coverage for spouse or child; add coverage if you had been covered by your spouse s plan Add coverage Drop Dependent coverage Change to other similar coverage (Note: you may not make changes to your medical flexible spending account as a result of this event.) * For your election to be effective, the Plan Administrator must determine that your requested mid-year change is consistent with the event.

10 About Your Benefits 10 Changes in Cost of Coverage In addition, if there is a significant change in the cost of coverage of a benefit option, you may be entitled to make a corresponding change in your election (except with respect to the health care spending account). If a new benefit option is added or significantly improved or curtailed by the Company or by your Dependent s employer, you may be permitted to make a corresponding new election. If annual enrollment for your spouse is for a period of coverage other than the calendar year, you may be permitted to make a corresponding election change under the Company s medical benefit during your spouse s enrollment period. For example, if you elect family medical coverage and, in May, your spouse elects coverage under his or her employer plan for May 1-April 30, you can drop your spouse from the Company s medical benefit by submitting an election change by May 31. If you contribute to the dependent care spending account, and there is a significant increase or decrease in the cost of services by a day care provider who is not your relative, you may be able to make corresponding changes to your contribution election for your dependent care spending account by submitting a new election within 31 days. For example, if mid-year, your mother will begin taking care of your child at no cost and you no longer need your current dependent care center, you can revoke your election to contribute to the dependent care spending account due to a significant change in coverage. HOW CHANGES AFFECT YOUR BENEFITS If You Get Married... Notify Human Resources to update your personnel records if your name and/or address changes. You must show a copy of Social Security card as proof of your name change. In addition, ask how to update payroll records. Review your spouse s benefits so you can coordinate coverage to your best advantage. Change your benefit elections within 31 days of your marriage. Consider increasing your contributions to the health care spending account, so you can pay for your spouse s unreimbursed medical, dental, drug and vision expenses with before-tax dollars. Update your life and AD&D insurance beneficiary designation. Update your Savings Program beneficiary designation. Keep in mind that if you have been married for at least one year and you want to designate someone other than your spouse as your beneficiary, you must have your spouse s written and notarized consent. Refer to the Savings Program section for more information. Consider preparing or updating your will.

11 About Your Benefits 11 If You Get Divorced... Notify Human Resources to update your personnel records if your name changes. Make sure your manager or organization knows of any address changes and ask how to update payroll records, including direct deposit information. Change your benefit elections within 31 days of the date your divorce is final. You must submit a copy of the divorce decree in order to drop coverage for your ex-spouse. Your ex-spouse is eligible to continue medical and dental coverage for up to 36 months through COBRA. You or your ex-spouse have 60 days to notify the USEC Benefit Service Center to obtain COBRA benefits. Refer to the Administrative section for information about COBRA. Add your eligible Dependents to your medical and dental coverage if a court requires you to provide coverage for Dependent children. Update your life and AD&D insurance and Savings Program beneficiary designations. Life and AD&D insurance beneficiary designation forms are available by contacting the USEC Benefit Service Center, from Human Resources, or from Intranet websites. A Savings Program beneficiary designation form is available from Human Resources, can be requested by calling the Savings Program Information Line or can be completed online at Contact the USEC Benefit Service Center if you think a court may issue a Qualified Domestic Relations Order (QDRO) granting your former spouse the right to receive any of your Pension Plan benefits or Human Resources regarding benefits from your Savings Program account. The term Qualified Domestic Relations Order is defined in the Glossary. Consider preparing or updating your will. The Employee Assistance Program is available. If You or Your Spouse Is Pregnant... Notify your manager and contact Human Resources for more details. If You Adopt a Child... Notify your manager and contact Human Resources if you would like to arrange for a family leave of absence. When Your Child Arrives... Enroll your newborn or newly adopted child for medical benefits within 31 days, so your child s medical expenses will be covered from the date of birth or adoption. Consider beginning or increasing your contributions to the flexible spending accounts, so you can pay for your child s unreimbursed medical expenses and child care expenses with before-tax dollars.

12 About Your Benefits 12 Consider updating your will and increasing your contributions to the Savings Program to save for your child s future. If You Become Disabled and Cannot Work... Notify your manager, either in person or by telephone, in advance if you cannot report to work. Remain in contact with your manager and Human Resources about how long you anticipate being away from work. Contact the insurer or Human Resources to request a claim form or instructions on how to file for short term disability benefits. If eligible, receive short term disability benefits for up to 25 weeks. Apply for other disability benefits that may be payable (i.e., Social Security, workers compensation, state or individual disability benefits and auto insurance recoveries). File forms for long term disability benefits if your disability will continue longer than 26 weeks (or 180 days). Contact the insurer for instructions on how to file for long term disability benefits. See the Disability section for more information on your short and long term disability benefits. WHAT HAPPENS TO YOUR BENEFITS IF YOU BECOME DISABLED? Here is what happens to your benefits during a disability: Medical (Including Prescription Drug and Vision) and Dental During Short Term Disability: Coverage continues. You will be invoiced for applicable benefit premiums. During Long Term Disability: Coverage continues. You will be invoiced for applicable benefit premiums. Employee Assistance Program You may continue to access the services of the Employee Assistance Program until you exit the Company payroll. Health Care Spending Account During Short Term Disability: Participation may continue as an after-tax contribution. During Long Term Disability: Participation ends unless you elect to continue contributing for the rest of the year on an after-tax basis through COBRA.

13 About Your Benefits 13 You may submit claims for health care expenses incurred before your short term disability benefits end, and for those incurred afterward, only if you continue to participate through COBRA. Dependent Care Spending Account During Short Term Disability: Participation ends. You may submit claims for expenses incurred before your disability began, up to the balance in your account. During Long Term Disability: Participation ends. You may submit claims for expenses incurred before your disability began, up to the balance in your account. Short Term Disability and Long Term Disability Short term disability benefits provide 66 2/3% of your weekly earnings, up to a maximum of $2,000 per week. Long term disability benefits provide an income of 60% of your basic monthly earnings, up to a maximum of $10,000 per month. Long term disability benefits are offset by Workers Compensation, Social Security, employer sponsored retirement plan benefits, and other group disability benefits. Basic Life and AD&D Insurance During Short Term Disability: Coverage continues. During Long Term Disability: Life insurance coverage may continue. Your life insurance coverage may be continued for a specific time and your life insurance premium may be waived if you qualify. Refer to the Life & Accident section for more information. Employee Supplemental Life Insurance During Short Term Disability: Coverage continues. You will be invoiced for applicable benefit premiums. During Long Term Disability: Your life insurance coverage may be continued for a specific time and your life insurance premium may be waived if you qualify. Refer to the Life & Accident section for more information. Dependent Life and Supplemental AD&D Insurance During Short Term Disability: Coverage continues. You will be invoiced for applicable benefit premiums. During Long Term Disability: Coverage continues. You will be invoiced for applicable benefit premiums. Business Travel Accident Insurance Coverage ends.

14 About Your Benefits 14 Pension Plan If you are eligible, you continue to earn Service Credit while you are receiving short term disability or long term disability benefits. The term Service Credit is defined in the Glossary. Savings Program During Short Term Disability: Contributions end. If you have an outstanding loan, any payments missed will be automatically deducted from your paycheck immediately upon your return to work. During Long Term Disability: If you have a long term absence or are on long term disability, you must continue to make loan payments. You have an option to repay the loan in full or receive coupons with which to continue your monthly payments. Contact Fidelity Investments to obtain a coupon book for submitting payment directly to Fidelity. Once you begin repaying your loan using a coupon book, you must continue using that method of repayment, even if you return to work. Refer to the Savings Program section for more information. IF YOU PLAN TO LEAVE THE COMPANY... Notify your manager of your resignation in writing. Notify Human Resources if your address will be changing. WHAT HAPPENS TO YOUR BENEFITS IF YOU LEAVE THE COMPANY? Here is what happens when you leave the Company: Medical (Including Prescription Drug and Vision) Coverage ends on the last day of the month in which your employment terminates. You or your Dependents may continue coverage for up to 18 months through COBRA, unless you are discharged for cause. Refer to the Administration section for more information. Dental Coverage ends on the last day of the month in which your employment terminates. However, if you are undergoing a course of treatment, benefits may be payable for charges related to that treatment that you incur after your termination. Refer to the Dental Plan section for more information. In addition, you or your Dependents may continue coverage for up to 18 months through COBRA, unless you are discharged for cause. Refer to the Administration section for more information.

15 About Your Benefits 15 Employee Assistance Program Coverage ends. You or your Dependents may continue coverage for up to 18 months through COBRA, unless you are discharged for cause. Refer to the Administration section for more information. Flexible Spending Accounts Coverage ends. You may submit health care spending account claims and dependent care spending account claims for expenses incurred before your termination no later than ninety (90) days following the end of the plan year. You may continue your health care spending account participation on an after-tax basis for up to 18 months through COBRA, unless you are discharged for cause. Refer to the Administration section for more information. Disability Coverage ends. Life and AD&D Insurance You may convert your basic and supplemental life and AD&D insurance to individual policies or port coverage. Refer to the Life & Accident section for more information. Business Travel Accident Insurance Coverage ends. Pension Plan If you are a participant and you are vested, you will receive pension benefits when you reach retirement age. Refer to the Pension Plan tab in the USEC Inc. Book of Benefits. Savings Program Contributions end. You may choose to receive a payout of your full vested account balance, or you may leave it in the Savings Program. Any outstanding loans must be repaid, otherwise, the outstanding loan balance will be treated as a taxable distribution to you. Refer to the Savings Program section for more information. Your Savings Program distribution is subject to a mandatory 20% tax withholding unless it is paid in a direct rollover into an individual retirement account or another employer s plan within 60 days. IN THE EVENT OF AN EMPLOYEE DEATH, YOUR FAMILY MEMBER SHOULD... Notify Human Resources or the USEC Benefit Service Center.

16 About Your Benefits 16 Complete a life insurance claim form and AD&D insurance claim form, if applicable. Send the completed forms, along with a certified death certificate and other supporting information, to the USEC Benefit Service Center. IN THE EVENT OF A DEATH OF A SPOUSE OR CHILD, YOU SHOULD... Notify the USEC Benefit Service Center. Complete a life insurance claim form and AD&D insurance claim form, if applicable. Send the completed forms, along with a certified death certificate and other supporting information, to the USEC Benefit Service Center. Change your medical (including prescription drug and vision), dental, flexible spending account and dependent life and supplemental AD&D insurance elections within 31 days of the death, if coverage changes are appropriate. Review all your beneficiary election forms. Remember, the Employee Assistance Program is available if you or your family members need counseling. WHAT HAPPENS TO YOUR BENEFITS IF YOU OR A FAMILY MEMBER DIES? Here is what happens to your benefits in the event of a death: Medical (Including Prescription Drug and Vision) and Dental Coverage ends the last day of the month in which your death or your Dependent s death occurs. In the event of your death, your eligible Dependents may elect to continue medical (including prescription drug and vision) and dental coverage for up to 36 months through COBRA. Refer to the Administration section for more information. Employee Assistance Program Coverage ends. In the event of your death, your eligible Dependents may elect to continue EAP coverage for up to 36 months through COBRA. Refer to the Administration section for more information. Flexible Spending Accounts Participation ends. Dependents may submit claims for health care and dependent care expenses incurred before your death. Refer to the Flexible Spending Account section for the deadline for submitting claims.

17 About Your Benefits 17 Life and AD&D Insurance You or your beneficiary will receive the following benefits, depending on the coverage elected: A life insurance benefit An AD&D insurance benefit if death is the result of a covered accident A business travel accident insurance benefit if you die in a covered accident while traveling on Company business. Pension Plan If you are a participant and you are vested, your surviving spouse/beneficiary will receive any survivor benefit. Refer to the Pension Plan tab in the USEC Inc. Book of Benefits. Savings Program Your beneficiary may receive your full account balance in a lump sum. Refer to the Savings Program section for more information. WHEN COVERAGE ENDS Unless otherwise noted, coverage under the Company s benefits for you or your Dependents will end on the earliest of the following dates: The date your employment terminates, except for medical (including prescription drug and vision) and dental coverage, which ends the last day of the month in which your employment terminates; The date the plan, policy or benefit option is cancelled; The date you no longer are in an eligible group; The date your eligible group is no longer covered; The last day of the period for which you made any required contributions; The last day you are in active employment unless continued due to a covered layoff or leave of absence or due to an injury or sickness, as described in the certificate of coverage; The date your Dependent ceases to be an eligible Dependent; For a spouse, the date of divorce or annulment; or The date of your death.

18 About Your Benefits 18 If your coverage ends, you may be eligible to extend medical (including prescription drug and vision) and dental coverage, as well as health care spending account participation under COBRA. Refer to the Administration section for information. Your participation in the Savings Program may continue (with some limitations) after you stop making contributions. Refer to the Savings Program section for more information.