NEW HIRE BENEFITS ENROLLMENT

Transcription

1 NEW HIRE S ENROLLMENT 2013

2 WELCOME TO GENERAL DYNAMICS ADVANCED INFORMATION SYSTEMS General Dynamics Advanced Information Systems (GDAIS) offers a flexible, comprehensive, competitive benefits package. Make sure you read this guide, attend a benefits orientation and understand your benefit options so you can choose the right benefits and coverage levels for you and your family. Understand what benefits you re getting and use them well As a newly hired employee of GDAIS, you may be eligible to participate in the following benefits. Benefits Medical Coverage Levels ii For details, see page: Choice of Personal Health Account Standard Plan, Personal Health Account Enhanced Plan, or a local HMO Plan (if available). 1 Dental Provides dental care, including orthodontia, with in-network and out-of-network benefits. 9 Vision Health care and dependent care flexible spending accounts Assistance Program (EAP) Basic life insurance Basic accidental death and dismemberment (AD&D) insurance Business travel accident insurance Short-term disability (STD) protection Basic long-term disability (LTD) insurance Provides eye care, including exams and corrective lenses, with in-network and out-of-network benefits. 9 Allows you to contribute up to $2,500 in the health care flexible spending account and $5,000 in the dependent care flexible spending account for eligible expenses and receive tax savings. 10 Provides assistance with personal, financial and legal situations. GDAIS provides one times annual base salary. Supplemental life insurance options also are available. 11 GDAIS provides one times annual base salary. Supplemental AD&D insurance options also are available. 11 GDAIS provides $200,000 additional life insurance coverage in case of accidental death while on business travel. 12 GDAIS provides 100% of pay for 12 weeks and 70% of pay for an additional 13 weeks. GDAIS provides 50% of pay, up to a monthly maximum benefit of $20,000. Additional LTD coverage of up to 60% of pay also is available, up to a maximum monthly benefit of $24,000. Paid Time Off (PTO) A pool of paid time off to use for vacation, sick and personal leave. 13 Retirement plan (General Dynamics 401(k) plan) Additional benefit programs A 401(k) plan that allows you to set aside additional money for your retirement. GDAIS has a number of other benefit offerings, including: Adoption assistance College savings plans Discounts for products such as automobiles, furniture, computers, and software Discounts for services such as wireless plans, auto and homeowners insurance, financial planning, long-term care, and veterinary insurance Group pre-paid legal assistance Tuition reimbursement TRICARE Supplemental Plan Weight Watchers and Nutrisystem Reimbursement Program This summary provides the high-level features of benefits for employees hired on or after January 1, Coverage begins on your first day of employment and ends on the last day of the month in which employment terminates, with the exception of short-term disability, long-term disability, accidental death and dismemberment (AD&D), and life insurance, which end on your last day of employment

3 HEALTH CARE S Your Medical Plan Choices You have two Personal Health Account Plans (PHAPs) as your choices for medical coverage. They offer similar benefits with a few distinct differences, including deductibles, coinsurance and contributions to your Health Savings Account (HSA): l The PHAP Standard does not provide employer contributions to your HSA, and you have lower payroll deductions for premiums. l The PHAP Enhanced provides employer contributions to your HSA, and you have higher payroll deductions for premiums. These medical plan choices have been designed to encourage you and your family to build healthy lives and support you as you shop smart for health care. They encourage consumerism while still providing comprehensive medical coverage and important protection from significant medical expenses. In addition, PHAPs encourage preventive care to help you catch small problems before they become big, expensive ones. PHAPs encourage you to behave in ways that will benefit you both health-wise and cost-wise. At the same time, they help you become more interested in and aware of the true cost to both you and the company of the health care you receive. Medical Plan Highlights l Most screenings and preventive care are covered at 100% with no deductible. So the company pays for your foundation for keeping healthy. l You may have to pay a Spousal Surcharge. There will be a surcharge of $19 per week to cover your spouse/same-sex spouse/same-sex partner if he or she has access to medical coverage through another employer. You can avoid this charge by attesting he or she does not have coverage when you enroll online. l Save tax-free in a Health Savings Account (HSA) and use the money toward your deductible and coinsurance. Because our Personal Health Account Plans are high deductible health plans as defined by the IRS, you are allowed to open and save tax-free dollars in a Health Savings Account. You can roll forward unused money into the next year, and you can build tax-free savings for retiree health expenses. See page 3 or go to for more information about HSAs. l Plus the company puts money in your HSA if you choose the PHAP Enhanced. The company contributes to your HSA, and you can add your own contributions (up to IRS limits), when you participate in the PHAP Enhanced. l You can save $500 off your 2013 medical premium by completing the voluntary, confidential Health Risk Assessment (HRA). You will need to enter your biometric numbers: height, weight, waist circumference, blood pressure, total cholesterol and HDL cholesterol, and answer screening questions to complete your HRA. You have 60 calendar days from your date of hire to complete the HRA and receive your premium discount. l Be sure to take advantage of the prescription cost calculator on MyPrimeTools.com. Our Pharmacy Benefit Manager, Prime Therapeutics, offers the lowest discounts through a Preferred Retail Network, and provides an online cost projection tool to help you plan your costs in advance. 1

4 l Before you enroll, spend a little time on these decisions: Do I want to buy medical coverage in 2013? If so, do I want the PHA Standard Plan or the PHA Enhanced Plan? Do I want to contribute to a Health Savings Account (HSA)? If my spouse or eligible partner has medical coverage available through work, should he/she enroll at work or in the GDAIS plan? l Then, get involved as we all up our game: by learning more as we get health care; working better with our doctors to balance being both a patient and a consumer; and perhaps most importantly building healthier days at work as well as home. Comparing the Plans STANDARD Personal Health Account Plan ENHANCED Personal Health Account Plan Company Annual HSA Contribution to your account % You Pay for Preventive Care Your Annual Deductible Coinsurance the % you pay after the deductible Your Annual Outof-Pocket Max What You Pay for an Office Visit What You Pay for a Specialist Visit What You Pay for Prescription Drugs Preferred Retail Pharmacy (30- or 90-day supply) Prime Therapeutics Network Pharmacy (30-day supply) Non-Network Pharmacy Mail Order: Prim (90-day supply) In- Network 0% no deductible Single Family Single Family Out-of- Network In- Network Out-of- Network In- Network Out-of- Network In- Network N/A N/A $600 $1,200 40% no deductible 0% no deductible 40% no deductible 0% no deductible 30% no deductible 0% no deductible Out-of- Network 30% no deductible $1,250 $2,500 $2,500 $5,000 $1,500 $3,000 $3,000 $6,000 20% 40% 20% 40% 10% 30% 10% 30% $3,750 $7,500 $7,500 $15,000 $2,300 $4,600 $4,600 $9,200 20% after deductible 20% after deductible 40% after deductible 40% after deductible 20% after deductible 20% after deductible 40% after deductible 40% after deductible 10% after deductible 10% after deductible 30% after deductible 30% after deductible 10% after deductible 10% after deductible Benefits under both plans include generic, brand formulary and brand nonformulary drugs 20% after deductible 10% after deductible 40% after deductible 30% after deductible No coverage No coverage 20% after deductible 10% after deductible 30% after deductible 30% after deductible After you reach your annual medical out-of-pocket maximum, the plan pays 100% for covered drugs 2

5 Your HSA Is Your Personal Health Account Because the PHAPs are high-deductible medical plans, tax law permits you to set up a Health Savings Account (HSA) if you participate in one. An HSA is a unique approach to tax-free savings toward medical expenses that can provide financial protection both now and in the future. You and the company can contribute to these accounts. All contributions are made on a pre-tax basis. The maximum that can be contributed to an account on an annual basis is $3,250 for an individual and $6,450 for a family. Individuals age 55 or older can contribute an additional $1,000 per year as a catch-up contribution. Money in your HSA can be used to pay health care expenses such as amounts toward the deductible or coinsurance. In addition, you can save money in your HSA for future medical expenses, rolling it forward until you need it, even in retirement. You can even use the money in your HSA for non-health expenses, although you will lose the pre-tax advantage if you do that, and you will owe a 20% tax penalty if you use the money for non-health expenses before you turn 65. If you leave GD, you can take your HSA with you and continue to invest it. Who Is Eligible to Contribute to an HSA? To contribute to a health savings account, you need to meet certain criteria: l You must be in a high-deductible medical plan like one of our Personal Health Account Plans. l You cannot be covered under any other medical plan, such as Medicare* or TRICARE, or have coverage through your spouse. l You cannot be claimed as a dependent on anyone else s tax return. More information about HSAs can be found at If you are not eligible, you may not make contributions to an HSA on a tax-deductible basis, and contributions made by the company are not excludable from your gross income. Therefore, if you are not eligible, you should enroll in either the Personal Health Account Standard Plan or no coverage so an HSA is not established on your behalf. You may experience adverse tax consequences if you enroll in a plan with an HSA feature if you are not eligible. Neither the company nor the plan is responsible for any such consequences. This should not be considered tax advice and we encourage you to talk to your personal tax advisor about the implications of participating in the Personal Health Account Plan and maintaining an HSA. * Enrollment in Medicare Part A is not automatic when you turn 65. If you are not sure if you are enrolled in Medicare, contact your local Social Security office. Further, if you are already enrolled in Medicare, and wish to contribute to an HSA (including acceptance of company contributions), you can request to withdraw your Medicare enrollment; however, there may be adverse consequences. You should contact your local Social Security office to discuss the implications of your withdrawal from Medicare. 3

6 Your Prescription Drug Benefits Through Prime Therapeutics Prime Therapeutics, our Pharmacy Benefit Manager, offers 24/7 service, a mail order prescription program, a wide-ranging network of pharmacies with good discounts, and a preferred retail network with even better discounts that includes national retailers Kmart, Kroger, Target, Walgreens and Walmart plus the Community Pharmacy Network (CPN) of independent pharmacies. Like other medical expenses, you will pay the cost of drugs up front, while you are meeting the deductible. After that, you will pay a percentage of the drug cost through coinsurance. The amount will depend on the medical plan you have elected as well as the pharmacy network, with the best discounts in the preferred retail network. You always have the choice to go to any pharmacy you want. But if you go to an out-of-network pharmacy, your prescription drug will not be covered by the plan. You will be responsible for the full cost of your prescription. Visit Prime s website, to find a list of participating pharmacies, view the formulary, and calculate the cost of your prescription, and for access to many other useful tools. Save $500 When You Complete a Health Risk Assessment You can reduce your annual medical plan premium in 2013 by $500 when you take the confidential, voluntary Health Risk Assessment (HRA) within 60 days of your hire date. You ll need to provide your biometric numbers: l Total cholesterol level l HDL cholesterol level l Blood pressure l Height l Weight l Waist circumference WHY NUMBERS? No one at the company will see your numbers, but you need to know them. Your biometric numbers are one of the best ways to discover problems while they are still small, so you can prevent them from becoming big. You can get your biometric numbers at a preventive screening through your doctor. (Preventive screenings for the biometrics in the HRA are 100% covered in-network with no deductible if you re covered by a company medical plan.) After you have enrolled in your 2013 benefits and you have your biometric numbers, go to your health plan s website (listed below) and answer the questions in the HRA. (Note that your plan may call it by another term.) The HRA should take about minutes to complete. Your premium will be reduced in equal amounts throughout Medical Plan* Blue Cross Blue Shield of Alabama To Take an HRA, Go To: Cigna Kaiser Permanente United Healthcare and sign in Click on the Health and Wellness tab; Click on Maximize Your Health ; Click on Total Health Assessment in the middle scrolling section; Click on Health Media Succeed in the first paragraph and sign in Click on Health Assessment on the home page * Those who have coverage under the following plans may not have an HRA available to them, so are not required to complete an HRA to have a reduced premium: Aetna International, CBCA Indemnity, Kaiser Hawaii, HMSA HMO, HMSA PPO, SIMNSA. 4

7 Examples EXAMPLE 1: Carla Single Coverage Carla elects single coverage. She always uses in-network providers. The following example shows you how she would fare next year in the Personal Health Account Standard Plan vs. the Personal Health Account Enhanced Plan. Carla s Costs in 2013 l Carla does not use much medical care in 2013 l Carla takes her Health Risk Assessment to save on her premium cost Actual Cost Standard PHA Plan Enhanced PHA Plan Preventive Care $225 Billed Medical Costs (in-network) 2 office $100 each, 1 $30 Carla s Out-of-Pocket Cost for Medical Expenses Carla pays the full amount because she has not yet met her deductible Carla s HSA Carla s 2013 Contribution GD s 2013 Contribution $230 $230 Plan pays 100% for covered preventive care $230 subject to deductible $230 Carla uses her HSA to pay this amount $1,250 $0 Plan pays 100% for covered preventive care $230 subject to deductible $230 Carla uses her HSA to pay this amount $900 $600 Carla s HSA Balance $1,020 rolls into 2014 $1,270 rolls into 2014 Her account balance can grow tax-free and is hers to keep for future medical expenses. 5

8 EXAMPLE 2: Bill and Kim + Child Coverage Bill elects employee + child coverage for himself and his daughter, Kim. They always use in-network providers. The following example shows you how Bill would fare next year in the Personal Health Account Standard Plan vs. the Personal Health Account Enhanced Plan. Bill and Kim s Costs in 2013 l Bill and Kim have moderate medical expenses in 2013 l Bill takes his Health Risk Assessment to save on his premium cost Actual Cost Standard PHA Plan Enhanced PHA Plan Preventive Care $450 Plan pays 100% for covered preventive care Plan pays 100% for covered preventive care Billed Medical Costs (in-network) 4 office $100 each, 4 $30 each $520 $520 subject to deductible $520 subject to deductible Bill s Out-of-Pocket Cost for Medical Expenses Bill pays the full amount because he has not yet met his deductible $520 $520 Bill uses his HSA to pay this amount $520 Bill uses his HSA to pay this amount Bill s HSA Bill s 2013 HSA Contribution $2,500 $1,800 GD s 2013 Contribution $0 $1,200 Bill s HSA Balance $1,980 rolls into 2014 $2,480 rolls into 2014 His account balance can grow tax-free and is his to keep for future medical expenses. 6

9 EXAMPLE 3: Jim and Maria + Spouse Coverage Jim elects employee + spouse coverage for himself and his wife, Maria, who does not have coverage through an employer. They always use in-network providers. The following example shows you how Jim would fare next year in the Personal Health Account Standard Plan vs. the Personal Health Account Enhanced Plan. Jim and Maria s Costs in 2013 l Jim and Maria have moderate medical expenses in 2013 l Jim takes his Health Risk Assessment to save on his premium cost Actual Cost Standard PHA Plan Enhanced PHA Plan Preventive Care $450 Billed Medical Costs (in-network) 2 office $75 each, 1 urgent care $200, 4 $250 total Jim s Out-of-Pocket Cost for Medical Expenses Jim pays the full amount because he has not yet met his deductible Jim s HSA Jim s 2013 HSA Contribution GD s 2013 Contribution $600 $600 Plan pays 100% for covered preventive care $600 subject to deductible $600 Jim uses his HSA to pay this amount $2,500 $0 Plan pays 100% for covered preventive care $600 subject to deductible $600 Jim uses his HSA to pay this amount $1,800 $1,200 Jim s HSA Balance $1,900 rolls into 2014 $2,400 rolls into 2014 His account balance can grow tax-free and is his to keep for future medical expenses. 7

10 EXAMPLE 4: Jack Family Coverage Jack elects family coverage for himself, his wife and their two children. His wife does not have coverage through an employer. They always use in-network providers. The following example shows you how Jack would fare next year in the Personal Health Account Standard Plan vs. the Personal Health Account Enhanced Plan. Jack and Family s Costs in 2013 l Jack and his family have moderate medical expenses in 2013 l Jack takes his Health Risk Assessment to save on his premium cost Actual Cost Standard PHA Plan Enhanced PHA Plan Preventive Care $1,400 Plan pays 100% for covered preventive care Plan pays 100% for covered preventive care Billed Medical Costs (in-network) 6 office $100 each, 2 specialist $100 each $800 $800 subject to deductible $800 subject to deductible Jack s Out-of-Pocket Cost for Medical Expenses Jack pays the full amount because he has not yet met his deductible $800 $800 Jack uses his HSA to pay this amount $800 Jack uses his HSA to pay this amount Jack s HSA Jack s 2013 HSA Contribution $2,500 $1,800 GD s 2013 Contribution $0 $1,200 Jack s HSA Balance $1,700 rolls into 2014 $2,200 rolls into 2014 His account balance can grow tax-free and is his to keep for future medical expenses. 8

11 Your Dental Plan Choices You and your family can elect dental coverage through Delta Dental of Virginia or waive coverage. You pay your share of dental insurance on a pre-tax basis. The program, Delta PreferredPlus, provides you two levels of network providers: Premier and Preferred. Premier offers a large network of providers with moderate discounts, while the Preferred offers a smaller network of providers with deeper discounts. Some dentists are in both networks, in which case the deeper discount applies. To find out if a dentist is in the Delta Dental network, visit the Delta Dental website at Benefit Preventive Care Basic Care Major Care Orthodontia Annual Maximum Benefit (does not include preventive care) Orthodontia Lifetime Maximum Benefit (separate from Annual Maximum Benefit) You are responsible for paying Nothing 20%, after $50 deductible 50%, after $50 deductible 50%, after $50 deductible $1,750 $2,250 You have the choice of using in-network or out-of-network providers. When you use in-network providers, you take advantage of lower, in-network fees that have been negotiated for you. When using out-of-network providers your costs may be higher because payments are applied to reasonable and customary fees rather than the negotiated fees. Your Vision Plan Choices You can elect coverage for you and your family through VSP. You pay for vision coverage on a pre-tax basis. Like the medical and dental plans, the vision plan provides you with in-network and out-of-network benefits. To find out if a provider is in the VSP network, visit the VSP website at Exams (1 per calendar year) Lenses (1 per calendar year)* Frames (1 every other calendar year) Contact Lenses (1 per calendar year)* In-Network $10 copay $20 copay $20 copay, $130 maximum allowance $20 copay, $130 maximum allowance Out-of-Network $10 copay, then up to a $35 maximum allowance $20 copay, then you receive an allowance up to: $25 Single vision $40 Bifocals $55 Trifocals Up to $35 allowance Up to $105 allowance LASIK and Other Eyewear Discounts available No discounts * Either lenses or contact lenses in any year, but not both in the same year. 9

12 Flexible Spending Accounts GDAIS offers you two flexible spending accounts the Health Care FSA and the Dependent Care FSA that help pay for certain health care and dependent care expenses with pre-tax dollars. You contribute to these accounts with pre-tax deductions from your pay. By paying for these expenses with pre-tax dollars, you save money. Health Care FSA You can contribute up to $2,500 to your Health Care FSA each year. Eligible expenses include out-of-pocket medical expenses you pay, such as coinsurance, copays and deductibles not covered by your medical, dental and vision plans, and prescription drug costs. (Per IRS regulations, over-the-counter drugs are not considered eligible expenses.) For those in the Personal Health Account Plan, you may use the Health Care FSA for dental and vision expenses only. You may use your HSA for medical expenses. With the Health Care FSA, you receive a debit card to use as an easy and convenient way to pay for health care expenses. The card electronically accesses your Health Care FSA to pay for eligible expenses you or a covered family member incurs for health care. (You may not use this card for dependent care expenses.) Dependent Care FSA You can contribute up to $5,000 annually to your Dependent Care FSA, or up to $2,500 if you are married and filing taxes separately. Eligible dependent care expenses are those incurred while you or, if married, you and your spouse work outside the home. These include child or elder care for dependents who live with you, whether provided in or outside your home. For reimbursements, you submit a paper or electronic claim to PayFlex at Under the Dependent Care FSA, you can only be reimbursed up to the amount that is in your account at the time of reimbursement. Please note: Only expenses incurred while you are making contributions to the plan are eligible for reimbursement. USE IT OR LOSE IT! Remember, you lose whatever money you don t use in that calendar year from either of your flexible spending accounts, so choose wisely when deciding how much to contribute. You have until March 31 of the following year to request reimbursement. After that, unused amounts in your account(s) are forfeited. Assistance Program Whether or not you choose coverage under the medical plan, GDAIS automatically provides Assistance Program (EAP) coverage at no cost to you. Through the EAP, administered by ValueOptions, you can receive assistance for a number of different life concerns, such as personal conflicts and financial and legal issues. The EAP provides completely confidential counseling and can refer you to appropriate resources for you and your dependents. You are eligible for up to eight free counseling sessions per issue. 10

13 WELFARE S Your Life Insurance Plan Choices GDAIS offers several different options for life insurance for you and your family. You automatically receive basic life insurance of one times your annual base salary at no cost to you. GDAIS pays the full cost, and you do not need to make an election to receive this coverage. Supplemental Insurance Options You can purchase supplemental life insurance for yourself, your spouse/same-sex partner and/or your children. You pay the full cost for supplemental insurance on an after-tax basis. Supplemental Life Spouse and Same-Sex Partner Life Dependent Life You can choose coverage between one and eight times your annual base salary. As a new employee, you can elect up to two times your annual base pay without providing evidence of insurability. You are the beneficiary for this coverage. You can choose coverage levels of $10,000, $25,000, $50,000, $75,000 or $100,000. As a new employee, you can elect up to $50,000 without providing evidence of insurability. You are the beneficiary for this coverage. You can choose coverage levels of $5,000, $10,000, $15,000, $20,000 or $25,000. Accidental Death and Dismemberment (AD&D) Accidental Death and Dismemberment (AD&D) insurance provides a benefit to your beneficiary if you die or are injured in an accident. GDAIS provides basic AD&D insurance of one times your annual base salary at no cost to you. Like life insurance, you can purchase supplemental AD&D insurance. You pay for supplemental AD&D insurance on a pre-tax basis. Supplemental AD&D Spouse and Same-Sex Partner AD&D Dependent AD&D You can choose coverage between one and 10 times your annual base salary. You are the beneficiary for this coverage. You can choose coverage levels of $10,000, $25,000, $50,000, $75,000 or $100,000. You are the beneficiary for this coverage. You can choose coverage levels of $5,000, $10,000, $15,000, $20,000 or $25,000. Please note: If you are married to another General Dynamics employee, neither of you can select spouse/ same-sex partner life or spouse/same-sex partner AD&D and only one of you can elect dependent life or dependent AD&D insurance. 11

14 Business Travel Accident Insurance (BTA) GDAIS automatically provides $200,000 additional life insurance coverage in case of accidental death while on business travel. MORE ON LIFE INSURANCE Imputed Income: If your basic life insurance coverage equals more than $50,000, the value of any amount over $50,000 is considered imputed income. The IRS assigns a value to the imputed income and that value is taxed. Evidence of Insurability: Any time that you elect to increase your coverage at annual enrollment or with a qualifying change in status for supplemental life insurance or spouse/same-sex partner life insurance, evidence of insurability (EOI) is required. Naming Your Beneficiary: Your beneficiary is the person, organization or trust that you designate to receive your life insurance benefits when you die. To designate a beneficiary, complete and submit the beneficiary designation information found on or contact the General Dynamics Service Center at GD-S ( ) to speak to a representative. Your Disability Plan Choices Short-Term Disability You are automatically enrolled in the Short-Term Disability (STD) Plan, and the cost of coverage is fully paid by GDAIS. The STD Plan pays a benefit if you are unable to work for more than seven consecutive calendar days. (The seven-day waiting period is covered under the Paid Time Off (PTO) program.) The STD benefit pays 100% of your weekly salary for up to 12 weeks following the waiting period and 70% through week 26. Long-Term Disability The Long-Term Disability (LTD) Plan pays a benefit if you suffer an illness or injury that prevents you from working more than six months. You automatically receive coverage under Basic LTD at no cost to you. If you become disabled, the Plan provides a benefit of 50% of your pay, up to a monthly maximum tax-free benefit of $20,000. Optional LTD: You can choose to purchase Optional LTD, which provides for an additional 10% for a total of 60% of your pay, up to a total monthly maximum benefit of $24,000. You pay for the additional 10% of coverage. Your contributions, as well as the company s contributions, are after-tax, which allows the benefit to be paid tax-free. For additional information, see the summary plan description (SPD) on the General Dynamics Service Center website at 12

15 PAID TIME OFF (PTO) PROGRAM The Paid Time Off (PTO) program at GDAIS combines vacation, sick and personal leave into one paid-time-off bank that you can use at your discretion. How to Accrue PTO From your date of hire up to five years of service, you are eligible for 136 hours of PTO to use each year. You accrue additional days of PTO with increased years of service. Once you accrue three times your annual PTO hours, you will not be able to accrue any additional time until you begin to use the time off. Your PTO does not include holidays, and you are not required to use PTO for bereavement, jury duty or military leave and obligation. Years of Service Less than 1 year PTO Accrual 136 hours/year (68 seeded on day one, accruing begins after six months) 1 to 5 years 136 hours/year with maximum limit in bank of 408 hours 5 to 10 years 144 hours/year with maximum limit in bank of 432 hours 10 to 15 years 152 hours/year with maximum limit in bank of 456 hours 15 or more years 160 hours/year with maximum limit in bank of 480 hours NOTE: If you are a part-time employee, the PTO program is modified according to your work schedule. Holidays You receive 80 hours of holiday time, which includes the following core holidays: New Year s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Day after Thanksgiving and Christmas Day. The remaining hours are floating holiday hours that you can use throughout the year. Your floating holiday hours will be prorated based on your hire date. Please Note: You must use all floating holiday hours before the end of the year or you forfeit them (except where prohibited by state regulation). Flexible Work Schedules & Telecommuting Provided business conditions allow, the majority of GDAIS employees enjoy a 9/80 work schedule. By lengthening your work week one hour each day, you can tip the work/life balance scale more in your favor and enjoy every other Friday off. Eligibility is position and/or contract specific. For additional information, talk to your manager or review the alternative work arrangements policy on the GDAIS HR intranet site. PTO Purchase Program You can purchase up to 40 additional hours in 10 hour increments of PTO through payroll deduction. Except where prohibited by state regulation, you must use your purchased PTO by the end of the calendar year. l If you are hired before October 1, you can elect hours to be used by the end of l If you are hired on or after October 1, you can elect hours to be used during

16 THE GENERAL DYNAMICS 401(K) The General Dynamics 401(k) plan gives you an easy and effective way to save for retirement. There are many advantages to participating in the 401(k) plan. You can: l Defer taxes by making pre-tax contributions to the plan l Be eligible to receive matching contributions from General Dynamics l Defer taxes on the investment earnings on all plan contributions You are immediately eligible to participate in the plan, and your contributions can be made on a pre-tax, Roth, or after-tax basis. You can contribute from 1% to 50% of eligible pay to your 401(k) plan account, depending on your salary, up to IRS-allowable limits. If you turn age 50 or older at any time during the calendar year, you are eligible to make additional pre-tax and/or Roth catch-up contributions. You will receive detailed General Dynamics 401(k) plan information at your home address within two weeks of your hire date. Automatic Enrollment If you take no action to enroll in or opt out of the plan within your first 30 days of employment, you will be automatically enrolled to contribute 3% of your salary on a pre-tax basis, invested in the target date fund option based on your birth date. You create your own investment mixes in 1% increments. If you would like to contribute a different amount or decline participation, contact the General Dynamics Service Center at or GD-S ( ). Company Matching Contributions When you make contributions to the 401(k) plan, you are eligible to receive a company match of $1 for $1 up to the first 3% of your eligible pay and $0.50 per $1 you contribute to the next 3%. Your company matching contributions are calculated on your contributions each pay period and are posted to your account each time your own contributions are deposited. The company match follows your investment choices. s are immediately 100% vested in company-matching contributions. 14

17 2013 IRS 401(k) Plan Limits Each year, the IRS establishes certain limits that the plan and its participants must follow. For 2013, the following limits are applicable to this plan: l Annual Contribution Limit: $17,500 Pre-tax and Roth 401(k) contributions combined. l Catch-up Contribution Limit: $5,500 Additional pre-tax and/or Roth 401(k) contributions available if age 50 or older during the plan year and reach the annual contribution limit stated above. l Total Contribution Limit: $51,000 The maximum that can be contributed annually by the employee and the Company combined. l Compensation Limit: $255,000 This is the maximum eligible compensation that can be used for purposes of calculating any plan contribution. Rollovers You may also be able to roll over balances from another eligible employer plan or individual retirement account (IRA). Loans You may borrow up to 50% of your vested account balance ($500 minimum, $50,000 maximum) through one of two different loan types: l You can take a general purpose loan for any reason, and repay the loan within five years l You can take a primary residence loan to purchase a primary residence for yourself, and repay the loan within 20 years FOR MORE INFORMATION To change your contribution level, access your account, or for additional information, go to or call the General Dynamics Service Center at GD-S ( ). Please see your retirement guide for detailed information. 15

18 GDAIS provides you with a number of supplemental benefits that you can take advantage of if and when you need them. See their descriptions below, as well as information on how to learn more or sign up for these benefits. Adoption Assistance The GDAIS adoption assistance program will help you cover expenses including various legal and adoption fees, temporary foster care, medical examinations for the child and transportation of your adopted child. There is a maximum coverage amount per child of $4,000 for full-time employees and $2,000 for part-time employees. To learn more, please visit the Supplemental Benefits page on the GDAIS HR intranet site at Source>My GDAIS>Benefits>Supplemental Benefits. Cellular Phone and Wireless Discounts GDAIS employees have access to wireless service discounts through AT&T and Verizon. To learn more, please visit the Supplemental Benefits Page on the GDAIS HR intranet site at Source>My GDAIS>Benefits>Supplemental Benefits. CollegeBoundfund The Alliance CollegeBoundfund can help you fund college education costs. It gives you access to the federal Section 529 college savings program for after-tax contributions and tax-free withdrawals. You have control over your portfolios and your beneficiaries, which can include you, your family, and non-family members. To learn more, please visit the GDAIS HR intranet site at Source>My GDAIS>Benefits>Supplemental Benefits or the GD Self Service (ESS) site at (click on the link for CollegeBoundfund, username = GENDYN and password = GENDYN529). 16

19 Commuter Benefits PayFlex GDAIS offers commuter benefits to help you save money on gas, to reduce wear and tear on your car, and to help reduce some of the stress of getting to and from work every day. It could also help ease parking issues. You may enroll and make changes on a monthly basis. Section 132 Transportation Plan GDAIS also provides a Section 132 Transportation Plan through PayFlex. With the plan, you will be able to set aside money each month on a tax-free basis and use that tax-free money to pay for qualified transportation expenses, such as taking public transportation to get to and from work. You may enroll and make changes on a monthly basis. Your contributions will be deducted from your bi-weekly paychecks. Dell Computer Purchase Program Through the Dell Computer Purchase Program, employees of General Dynamics may purchase computers and photo equipment at a discount beginning at 5%. Weight Watchers and Nutrisystem Reimbursement Program s and their spouses are eligible for partial reimbursement for completed Weight Watchers and Nutrisystem programs. Wells Fargo Mortgage Assistance Program This program provides you help in purchasing a home or financing an existing home mortgage. The comprehensive website offers easy-to-use calculators that help you determine what you can afford, the likelihood of being approved for the loan of your choice and true loan costs. It provides you the opportunity to obtain loans at a company discount with approval online, and qualify for a $350 rebate when closing a loan. To learn more, please visit or the GD Self Service (ESS) site ( GM and Ford Car Discounts You may take advantage of the GM and Ford Supplier discount for purchase or lease of select vehicles. For additional information, including the General Dynamics company code, please see the GDAIS HR intranet site at Source>My GDAIS>Benefits>Supplemental Benefits. The TRICARE Supplement Plan Government legislation prevents any company from offering the TRICARE Supplement Plan as an employerfunded medical option. GDAIS offers this plan to eligible military retirees and their family members through an employee-paid, voluntary plan. Your contributions are deducted on a pre-tax basis through payroll. If you are a current member of the TRICARE Supplement Plan, you can receive special information telling you the costs of this coverage and how you can sign up for it. 17

20 MetLaw Legal Assistance You can choose to purchase group legal coverage with MetLaw, administered by Hyatt Legal Plans. MetLaw provides you access to a network of local attorneys. When you use a Plan attorney, most eligible services are covered at 100% of cost with unlimited office and phone consultations. Available services include purchase, sale, or refinance of a primary residence, wills and estate planning, document preparation, debt matters, civil litigation defense, immigration assistance, identity theft defense and tax audits. For more information, please visit the Supplemental Benefits page on the GDAIS HR intranet site at Source>My GDAIS>Benefits>Supplemental Benefits or contact MetLaw at (Monday-Thursday 8 a.m. to 7 p.m., Friday 8 a.m. to 6 p.m. ET) or at (click on Thinking About Enrolling, password = MetLaw). Auto and Homeowners Insurance Program As an employee of GDAIS, you may qualify for low, competitive rates on auto and homeowners insurance offered by Travelers or MetLife. For additional information, visit the GD/Travelers website at or call or contact MetLife through or call GET-MET8 ( ). Tuition Reimbursement GDAIS will reimburse you for tuition costs and mandatory course-related fees for courses, degree programs, conferences, seminars, periodicals, licenses and other professional fees that are job-related and of mutual benefit to GDAIS and you. You may take a maximum of two courses per term, with approval of your manager. For additional information, please see the Educational Assistance policy in the policies section of the GDAIS HR intranet site. Veterinary Pet Insurance You also may purchase veterinary pet insurance to help you pay for your pet s treatments, surgeries, lab costs, X-rays, and much more. You can sign up for this coverage that is offered by MetLife by calling MetLife at GET-MET8 ( ). You may enroll in this benefit coverage at any time throughout the year. 18

21 You have tools available to help manage your benefits, and resources to get answers to your benefit and enrollment questions. You can find a full description of your benefit options at General Dynamics Service Center GD-S ( ) 9 a.m. 9 p.m. ET, Monday Friday For international calls, dial the out-of-country access number followed by Contact the General Dynamics Service Center for information on the following benefits: l Medical l Dental l Vision l Life Insurance: Basic, Supplemental, and Dependent l Flexible Spending Accounts Self Service (ESS) l General Dynamics 401(k) Plan l Retirement Plans l Retiree Medical l Assistance Program From the HR intranet main page or from the Internet at you can: l View your paychecks l Change your address or update your personal and work phone numbers l Change or update your emergency contact information l Change your direct deposit information l View your W-2 or print a W-2 replacement l Request employment and salary verification statements l Link to: Personal Auto and Home Insurance Home Buying Assistance College Savings Plan Credit Union Membership 19

22 Customer Service Contacts Plan Phone Website Blue Cross Blue Shield of Alabama Cigna Kaiser Permanente United Healthcare Health Equity (Health Savings Account) Prime Therapeutics (Prescription Drug Benefits) Delta Dental of Virginia (Dental Plan) VSP (Vision Plan) PayFlex (Flexible Spending Accounts) ValueOptions ( Assistance Program) generaldynamics Fidelity (General Dynamics 401(k) Plan)

23 Medical Plan Treatment Cost Calculators When you need health care during the year, look to your health plan for online tools to help make informed decisions and control your costs. These tools can help you compare treatment options, estimate out-of-pocket costs, compare doctors and medical facilities, and more. Medical Plan Blue Cross Blue Shield of Alabama Cigna Kaiser Permanente To Use a Treatment Cost Estimator, Go To: Treatment Cost Estimator Find the estimated cost to treat a variety of medical conditions with the Blue Cross Blue Shield Treatment Cost Estimator. Find Docs & Services Cigna s Find Docs & Services tool allows you to compare out-of-pocket estimates specific to your coverage plan for actual medical procedures and treatments. Plus, you can verify your plan details such as coverage, coinsurance and deductibles. Estimates show doctor and facility fees in one place, so you can more accurately compare total costs of treatment before choosing your doctor and where to receive care. Treatment Estimate Tools Click on Learn more about the new deductible HMO with HSA plan option ; Click on Using Your Plan ; Under Treatment Estimate Tools, click on Maryland, Virginia and Washington D.C. The Estimate tool helps you manage your health expenses by providing a personalized estimate of out-of-pocket costs for many common medical exams, tests and procedures. Estimates are based on your plan benefits and whether you ve met your annual deductible. United Healthcare myhealthcare Cost Estimator myhealthcare Cost Estimator allows you to estimate out-of-pocket costs for your health procedure based on your specific health plan. You can: Compare estimated costs of treatment options Discover whether prices are at, below or above market average Evaluate opportunities to reduce your out-of-pocket costs You can also use the tool to learn more about health procedures and compare treatment options, select a quality provider for a procedure and locate providers in your area. Prime Therapeutics Drug Cost Estimator MyPrimeTools.com provides a comprehensive range of tools for making informed pharmacy benefit decisions. In addition to providing a drug cost estimator, this site also offers pharmacy locations, your prescription history and information about drug interactions and possible side effects. 21

24 ENROLLMENT AND WHAT TO KNOW Who s Eligible? Your eligibility for benefits depends on your employment type and how many hours you are scheduled to work. Employment Type Full-time employees (40 scheduled hours per week) Part-time employees (32-39 scheduled hours per week) Part-time employees (20-31 scheduled hours per week) Partial-schedule employees and Student Interns (average less than 20 standard work hours per week) Temporary employees (specific short-term assignment not to exceed 180 days) Plan Eligibility All benefits All health and welfare plans Other benefit programs (e.g., PTO) may be adjusted according to your schedule All health and welfare plans Cost and coverage eligibility of those benefits will be different from that of full-time employees and part-time employees who work 32+ hours per week Other benefit programs (e.g., PTO) may be adjusted according to your schedule General Dynamics 401(k) plan Credit union membership Not eligible for benefits 22

25 Your Eligible Dependents You can enroll yourself and your eligible dependents for benefits. Your eligible dependents include: l Your legal spouse l Your same-sex spouse/partner l Your natural-born child, legally adopted child, stepchild, or legal guardian child up to age 26 l Your same-sex spouse s/partner s natural-born child, legally adopted child, or legal guardian child up to age 26 l A disabled adult child of you or your same-sex spouse/ partner Depending on the plan, the typical coverage levels you may be able to choose from include: l You only l You plus your child(ren) l You plus your legal spouse or same-sex spouse/partner l You plus your family Dependent Verification If you choose to enroll a dependent in a GDAIS health insurance plan, you must certify him or her as eligible for coverage, including proof of his or her relationship to you (for example, marriage license for spouses or birth certificates for children). You must also attest whether or not your spouse/same-sex spouse/partner is eligible for his or her employer-sponsored health insurance plan. If you enroll a dependent for health care coverage, you will receive a letter explaining the dependent verification process along with directions and required forms soon after you enroll. Mid-Year Changes Under federal law, you can enroll for your benefits only during the annual enrollment period, unless you experience a qualified change in status that affects the type of coverage you need. Your change in coverage must be consistent with your change in status. You must change your benefits within 31 days of the event. Qualified status changes include: l Marriage, divorce, legal separation, annulment, or termination of same-sex partnership; l Birth, adoption, or placement for adoption of a child; l Death of a covered dependent; l Change in your or your spouse s/same-sex partner s employment status that results in a gain or loss of benefit eligibility (for example, a change in work schedule, termination of employment or new employment); l Change in your dependent s eligibility status (for example, your child reaches an age when coverage stops); l You lose coverage provided under another plan (for example, your spouse s/same-sex partner s plan is no longer offered); l Change in location (that is, your current medical coverage is not available at your new location); or l Start or termination of employment for yourself, your spouse/same-sex partner or your dependent. 23

26 WHAT TO DO Take Action: You Must Enroll for Your Benefits! You must enroll for your benefits online at within 30 calendar days of your hire date. If you need help during the process, you can find it online at or by calling the General Dynamics Service Center at GD-S ( ) between 9 a.m. and 9 p.m. Eastern time, Monday through Friday. For international calls, dial the out-of-country access number followed by You ll also find a full description of your benefit options at If You Don t Enroll If you don t enroll for benefits when you are first eligible, you will receive the following benefits for the year. You won t be able to make any changes unless you have a qualified status change, as described on page 23. Benefit Medical Dental Vision Flexible Spending Accounts Life and AD&D Disability Default Coverage Personal Health Account Plan Standard for you only, no HSA contribution No coverage No coverage No contributions GDAIS-provided benefit only, no supplemental coverage GDAIS-provided benefit only, no supplemental coverage QUESTIONS ABOUT ENROLLMENT? Contact General Dynamics Service Center: GD-S ( ) 9 a.m. 9 p.m. ET, Monday Friday For international calls, dial the out-of-country access number followed by

27 2013 Health Insurance Carriers and Bi-Weekly Rates IMPORTANT: If you have a covered spouse/same-sex spouse/same-sex partner in a General Dynamics medical plan, you will pay an additional spousal surcharge ($19/week) unless you take action during enrollment and attest that your spouse does not have coverage through another employer. For medical plans, first look at the plan location column and find your state. (Look over the entire table as your state could be listed in more than one row.) Then find the medical plans offered in that state and the bi-weekly costs associated with each plan. If your home address is in a different state from your work location, you may be eligible for more than one carrier option. (Your eligibility for a health plan is based upon your work address, home address or a combination of the two.) Go to for more details and to confirm all the plans for which you are eligible. Following are the bi-weekly rates for medical, dental and vision coverage for 2013 for full-time employees (employees who work 32+ hours per week). MEDICAL: Full-Time s Who Complete an HRA Plan Location AL, NY, TN, Rural VA AZ, CO, DC, FL, GA, IL, IN, KS, KY, LA, MD, MI, MN, MO, MS, NC, NJ, NM, OK, PA, VA, WV CA (Northern) HI CA (Southern) Medical Plans BCBS Personal Health Account Plan Standard BCBS Personal Health Account Plan Enhanced CIGNA Personal Health Account Plan Standard CIGNA Personal Health Account Plan Enhanced Kaiser Personal Health Account Plan Standard Kaiser Personal Health Account Plan Enhanced Health Plan Hawaii Plus HMO Health Plan Hawaii Plus PPO Only + Spouse + Children Family $46.40 $ $ $ $64.52 $ $ $ $46.40 $ $ $ $64.52 $ $ $ $27.94 $98.76 $98.76 $ $46.06 $ $ $ $46.93 $ $ $ $61.31 $ $ $ Kaiser HMO (HI) $49.84 $ $ $ Kaiser Personal Health Account Plan Standard (CA) Kaiser Personal Health Account Plan Enhanced (CA) $17.91 $50.41 $50.41 $84.72 $36.37 $68.88 $68.88 $ Note: These tables show bi-weekly rates for coverage so you can see the effect on your bi-weekly paychecks. To determine monthly costs, multiply the bi-weekly rate by 26 (the number of pay periods in 2013) and divide by (Continued on next page)

28 MEDICAL: Full-Time s Who Complete an HRA (Continued from previous page) Plan Location Medical Plans Only + Spouse + Children Family CO DC, MD, VA CA, MA, NE, OH, TX, UT, WA, WI Other US Locations (Out of Area) Kaiser Personal Health Account Plan Standard (CO) Kaiser Personal Health Account Plan Enhanced (CO) Kaiser Personal Health Account Plan Standard (Mid-Atlantic) Kaiser Personal Health Account Plan Enhanced (Mid-Atlantic) UHC Personal Health Account Plan Standard UHC Personal Health Account Plan Enhanced CBCA Out-of-Area Indemnity $21.89 $62.23 $62.23 $96.53 $40.35 $80.70 $80.70 $ $17.91 $50.41 $50.41 $84.72 $36.37 $68.88 $68.88 $ $46.40 $ $ $ $64.52 $ $ $ $64.52 $ $ $ International Aetna International $74.34 $ $ $ DENTAL: Full-Time s Plan Location Dental Plan Only + Spouse + Children Family National Delta Preferred Plus $7.72 $15.43 $15.39 $21.99 International Aetna Global Dental $7.72 $15.43 $15.39 $21.99 VISION: Full-Time s Plan Location Vision Plan Only + Spouse + Children Family National Vision Service Plan $2.85 $5.71 $5.71 $8.13 Note: These tables show bi-weekly rates for coverage so you can see the effect on your bi-weekly paychecks. To determine monthly costs, multiply the bi-weekly rate by 26 (the number of pay periods in 2013) and divide by

29 Following are the bi-weekly rates for medical, dental and vision coverage for part-time employees (employees who work hours per week). MEDICAL: Part-Time s Who Complete an HRA Plan Location AL, NY, TN, Rural VA AZ, CO, DC, FL, GA, IL, IN, KS, KY, LA, MD, MI, MN, MO, MS, NC, NJ, NM, OK, PA, VA, WV CA (Northern) HI Medical Plans BCBS Personal Health Account Plan Standard BCBS Personal Health Account Plan Enhanced CIGNA Personal Health Account Plan Standard CIGNA Personal Health Account Plan Enhanced Kaiser Personal Health Account Plan Standard Kaiser Personal Health Account Plan Enhanced Health Plan Hawaii Plus HMO Health Plan Hawaii Plus PPO Only + Spouse + Children Family $64.09 $ $ $ $88.71 $ $ $ $64.09 $ $ $ $88.71 $ $ $ $44.42 $ $ $ $65.83 $ $ $ $71.33 $ $ $ $85.71 $ $ $ CA (Southern) Kaiser HMO (HI) $71.33 $ $ $ Kaiser Personal Health Account Plan Standard (CA) Kaiser Personal Health Account Plan Enhanced (CA) $31.15 $94.56 $94.56 $ $52.61 $ $ $ CO Kaiser Personal Health Account Plan Standard (CO) Kaiser Personal Health Account Plan Enhanced (CO) $37.22 $ $ $ $58.50 $ $ $ Note: These tables show bi-weekly rates for coverage so you can see the effect on your bi-weekly paychecks. To determine monthly costs, multiply the bi-weekly rate by 26 (the number of pay periods in 2013) and divide by 12. (Continued on next page) 27

30 MEDICAL: Part-Time s Who Complete an HRA (Continued from previous page) Plan Location DC, MD, VA CA, MA, NE, OH, TX, UT, WA, WI Medical Plans Kaiser Personal Health Account Plan Standard (Mid-Atlantic) Kaiser Personal Health Account Plan Enhanced (Mid-Atlantic) UHC Personal Health Account Plan Standard UHC Personal Health Account Plan Enhanced Only + Spouse + Children Family $31.00 $94.04 $94.04 $ $52.53 $ $ $ $64.09 $ $ $ $88.71 $ $ $ Other US Locations (Out of Area) CBCA Out-of-Area Indemnity $88.71 $ $ $ International Aetna International $98.53 $ $ $ DENTAL: Part-Time s Plan Location Dental Plan Only + Spouse + Children Family National Delta Preferred Plus $12.18 $24.36 $24.36 $34.67 International Aetna Global Dental $12.18 $24.36 $24.36 $34.67 VISION: Part-Time s Plan Location Vision Plan Only + Spouse + Children Family National Vision Service Plan $2.85 $5.71 $5.71 $8.13 Note: These tables show bi-weekly rates for coverage so you can see the effect on your bi-weekly paychecks. To determine monthly costs, multiply the bi-weekly rate by 26 (the number of pay periods in 2013) and divide by

31 IMPORTANT NOTICE: This brochure may contain highlights of benefits offered by General Dynamics. Complete descriptions of benefit plans are available in the actual plan documents. Every effort has been made to ensure this brochure accurately describes these benefits. However, if there is a conflict between this information and the plan documents, the plan documents will govern. In addition, participation in the benefits program does not constitute a right to continued employment with the company. Nothing in this brochure should be construed as a contract or offer to contract for employment for any specific time or under any particular terms and conditions. While it is the company s intent to continue these programs, we reserve the right to amend or terminate them at any time.

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