Benefits At A Glance July 1, 2012 - June 30, 2013 ERCOT is committed to assisting employees in maintaining a healthy, productive lifestyle for themselves and their families. We are proud to offer employees various comprehensive Health & Welfare Plans. Our Health & Welfare Plans focus on preventative health care services that protect employees and their families from the catastrophic financial loss that can result from injury or illness. Our 401(k) Plan offers pre-tax and Roth after-tax deferrals. Our 401(k) Plan also offers institutional share class mutual funds, Targeted Retirement Funds, and a Self-Directed Brokerage Account Option. Benefit Programs Health & Prescription Drug Insurance Dental Insurance Vision Insurance Basic Group Term Life and AD&D Insurance Voluntary Term Life Insurance Voluntary AD&D Insurance Short & Long Term Disability Long Term Care Insurance Flexible Spending Accounts 401(k) Retirement Savings Program Paid Time Off & Holidays Buy Vacation Option Employee Assistance Program Tuition Reimbursement Program Wellness Programs Wellness Committee Activities Onsite Wellness Center Annual Health Fair Event EAP Well Coaching Sessions CIGNA Services Urgent and Convenience Care Healthy Pregnancy/Healthy Babies Your Health First Comprehensive Oncology Go Mobile Healthy Rewards Eligibility An eligible employee is an employee who is regularly scheduled to work on a full-time basis for at least 30 hours per week and is not a limited assignment of contract worker. ERCOT, Inc. benefits begin on the 1st day of the month following date of hire. If you are hired on the 1st of the month, eligibility is that same day. Dependents eligible to enroll in our Employee Health & Welfare Plans include Spouses, qualifying same sex Domestic Partners and dependent children up to the age of 26. Our Plan Year With the exception of the 401(k) plan, the plan year for our benefits is from July 1st - June 30th of each year. An open enrollment period for benefits will be announced annually in May. The open enrollment period is your only opportunity to enroll or make changes to certain benefit programs unless you experience a permitted change event in your family. The 401(k) plan year is from January 1st - December 31st of each year. However, with this plan, deferral and investment changes can be accepted at any time. ADP s Enrollment Module ADP s Employee Self Service Enrollment Module will walk you through each benefit plan to assist you in making your benefit elections for ERCOT s group plans. You have 30 days from your date of hire to complete this process. You will be able to update your eligible dependents and life and AD&D beneficiary (ies) as well. When you are finished making your benefit elections and have reached the Benefits Summary page, be sure to click on the Submit to Administrator button. The ADP system will not record your benefits elections unless you click on the Submit to Administrator button. Service Center (877) 904-5169 ADP Portal Address https://portal.adp.com Access: Self-Service/Payroll hrservicesemployee@adp.com Access: Benefit Life Events ercotbenefits@employease.com Go Mobile Application Available to download through Portal
2 Benefit Providers Health & Prescription Drug Insurance CIGNA Dental Insurance CIGNA Vision Insurance VSP Term Life & AD&D Insurance CIGNA Short & Long Term Disability CIGNA Long Term Care Insurance UNUM Flexible Spending Accounts Conexis 401(k) Retirement Savings Plan Fidelity and AON Investment Consulting Employee Assistance Program Alliance Work Partners Questions, Issues, or Concerns? Contact Gallagher Benefit Services at (512) 499-8005 or 1-800-492-8005 and ask to speak with a Benefits Specialist. Monday - Friday: 8am - 5:00pm CST Austin.GBS.CustomerService@ajg.com 2
3 Health & Prescription Drug Insurance ERCOT offers two health plans through CIGNA s Open Access Plus network of providers. Neither plan requires a Primary Care Physician or referrals to specialists. Both plans also offer disease management programs, lifestyle management programs and wellness opportunities. Note: Deductible and maximums are calculated on a calendar year basis, not plan year. Benefit Deductible (Calendar Year) Basic Plan Buy Up Plan In-Network Out-of-Network In-Network Out-of-Network $1,250 per person ($3,750 per family) $2,500 per person ($7,500 per family) $1,000 per person ($3,000 per family) $2,000 per person ($6,000 per family) Out-of-Pocket Maximum (Calendar Year) $3,500 per person ($10,500 per family) $6,000 per person ($18,000 per family) $2,500 per person ($7,500 per family) $5,000 per person ($15,000 per family) Co-insurance & Hospital Services Inpatient and Outpatient 80% after 50% after 90% after 60% after Physician Office Visit Primary Care Physician Specialist $30 copay $40 copay 50% after $20 copay $30 copay 60% after Airrosti Office Visit Emergency Room Treatment Emergency Room Physician Charges Urgent Care Facility and Physician included in copay Preventative Care Prescription Drugs Retail - up to a 30 day supply Mail Order - up to a 90 day supply 100% no, no copay $15 copay $15 copay $150 copay $150 copay 80% 90% $50 copay $25 copay $15/$30/$50 copay $30/$60/$100 copay 50% after 100% no, no copay $10/$20/$40 copay $20/$40/$80 copay 50% after CIGNA offers several valuable services as part of your health care plan. These programs are designed to maximize your access to quality health care when you need it most. Urgent and Convenience Care Healthy Pregnancy/Healthy Babies Your Health First Comprehensive Oncology GoMobile Healthy Rewards 3 3
4 Dental Insurance Benefit Preventive Basic Major ERCOT offers a single Dental Choice (DPPO)plan through CIGNA. Through this plan you are not required to have a Primary Care Dentist and have access to In and Out-of- Network dental providers. Deductible (Calendar Year) None $50 per person $150 per family Orthodontia (Adults & Children) None Plan Pays 100% 80% 50% 50% Plan Maximums $2,000 per person per calendar year $1,500 per person per lifetime CIGNA s Treatment Cost Estimator You can estimate and plan for your dental care costs using the Treatment Plan Cost Estimator on mycigna.com. The estimator makes it easy and convenient for you and your family to utilize the benefits associated with receiving dental care. Vision Insurance - 100% Employer Paid Premium ERCOT offers the Signature Plan through Vision Service Providers (VSP). ERCOT pays 100% of the premium cost for Employee and Dependent coverage. Benefit Exam Lenses Frames Contacts (in lieu of prescription glasses) Your coverage from a VSP Provider $20 copay, once every 12 months $25 copay, once every 12 months Up to $130 allowance every 12 months Up to $130 allowance every 12 months VSP Diabetic Eyecare Program The Diabetic Eyecare Program (DEP) provides medical eyecare services for members with Type 1 Diabetes. Designed to enhance VSP s Signature Plan and reinforce the Eye Health Management message, the Diabetic Eyecare Program supports the concept that a VSP doctor should be a member s first call for all vision-related concerns and not just for a routine eye exam. VSP Contact Lens Care Program VSP s Contact Lens Care Program includes the newest and most popular contact lenses in the marketplace, including soft specialty lenses like toric, multifocal, and silicone hydrogel. In fact, the program covers more than 68% of the soft contact lenses dispensed in the marketplace today! VSP Online Ordering Program - A 24/7 Retail Eyewear Solution Today, the Internet is an integral part of our lives, including how we shop. About 14% of Americans purchase eyewear online, and this number is rising quickly. Guiding the cutting edge of technology and innovation, VSP is developing an online optical retail solution to meet the demands of this changing marketplace by offering convenient access to quality eyewear brands. The excitement has begun! In our first phase, which began July 2011, we re pleased to present: more than 100 popular brands of contact lenses with free delivery; coordination with VSP doctors to ensure quality of care and the ability to browse hundreds of the latest sunglass styles and find VSP doctors that carry their favorites; virtual try-on tools, where members can see how frames look on their face. Beginning Summer 2012, VSP doctors will begin featuring Eyeconic storefronts as extensions of their practices, 4 allowing even more options for members. But we re not stopping there. Ultimately, Eyeconic will offer a wide selection of eyewear, including prescription eyewear and sunwear.
5 Basic Group Term Life & AD&D Insurance - 100% Employer Paid Premium ERCOT provides Group Term Life and Accidental Death & Dismemberment Insurance to all benefit eligible employees at no cost to employees through CIGNA. Evidence of insurability is not required. Life Benefit: 1x Annual Salary Life Benefit Maximum: $400,000 AD&D Benefit: 1x Annual Salary AD&D Benefit Maximum: $400,000 Voluntary Term Life & AD&D Insurance Employees may apply for Additional Life and AD&D Insurance for themselves and their families to supplement the coverage provided by ERCOT. Additional Life and AD&D Insurance is also provided by CIGNA and may be purchased through payroll deductions. Employee Maximum Benefit: 5x Annual Salary or $500,000 Increments: $1,000 Open Enrollment Guarantee: $10,000 Spouse Maximum Benefit: Lesser of 100% of Employee amount or $500,000 Increments: $1,000 Open Enrollment Guarantee: N/A Child(ren) Maximum Benefits: Up to $10,000 Increments: $1,000 Guaranteed Issue Amount: $10,000 Voluntary Term Life Monthly Rate Per $1,000 of Benefits: Age Employee Spouse <25 $0.081 $0.081 25-29 $0.069 $0.069 30-34 $0.077 $0.077 35-39 $0.110 $0.110 40-44 $0.156 $0.156 45-49 $0.246 $0.246 50-54 $0.381 $0.381 55-59 $0.574 $0.574 60-64 $0.978 $0.978 65-69 $1.658 $1.658 70-74 $2.958 $2.958 75-80 $5.984 $5.984 Voluntary AD&D Monthly Rate per $1,000 of Benefits: Employee $0.025 Spouse $0.045 Child(ren) $0.045 Child(ren) Voluntary Life Monthly Rate: $0.20 per $1,000 $10,000 = $2.00 per month; insures all of your children. Our life, accident, and disability plans include several valuable programs at no additional cost to help you and your family with your health, well-being, and sense of security throughout your lifetimes. Please see your benefits book or the intranet for more information. Identity Theft Program Will Preparation Program CIGNA Secure Travel 5 Note: All of you and your family s current life and AD&D coverages have conversion and portability options. This means that you can take the policy with you if you leave ERCOT s employment.
6 Disability Benefits - 100% Employer Paid Premiums Short and Long Term Disability benefits are provided to you for your income protection in the event you become disabled and unable to work due to a non-occupational illness or injury. ERCOT provides all benefits eligible employees with Short and Long Term Disability coverage through CIGNA at no cost to employees. Short Term Disability pay may begin on the 8th calendar day of absence and the maximum benefits duration is up to 26 weeks/182 calendar days. If you meet your Short Term Disability benefit maximum, your claim may be transferred and you may continue to draw benefits under the Long Term Disability benefit option. CIGNA Is responsible for administering and reviewing your disability claims. Short Term Disability Weekly Benefit: <1 year of service 60% Weekly Income 1-2 years of service 70% Weekly Income 2-3 years of service 80% Weekly Income 3-4 years of service 90% Weekly income 4+ years of service 100% Weekly Income Benefit Elimination Period: 7-day period Maximum Benefit Duration: 26 weeks (182 calendar days) Earnings Definition: Employee s annual wage or salary excluding bonuses, commissions, overtime pay or extra compensation. Long Term Disability Monthly Benefit: 60% of monthly income 1 Maximum Benefit: $10,000 per month Minimum Benefit: $100 or 10% of benefit Benefit Elimination Period: 182-day period 2 Rehabilitation Period: Included Survivor Benefit: 3 months lump sum Maximum Benefit Duration: Social Security Normal Retirement Age Pre-Existing Conditions: 3 months prior / 12 months insured 3 Earnings Definition: Employee s annual wage or salary excluding bonuses, commissions, overtime pay or extra compensation. 1. Monthly benefits will be offset by any Social Security benefits received during the disability period and starts on the 183rd day of disability. 2. STD pay must be exhausted before LTD pay begins. 3. Pre-Existing Condition Exclusion applies to conditions for which you receive medical services within 3 months of the coverage effective date. No Long Term Disability benefits are payable for disability resulting from such a condition if the disability period begins within the first 12 months of coverage. Long Term Care Insurance - Basic Plan - 100% Employer Paid Premiums ERCOT provides Basic Long Term Care Insurance through UNUM at no cost to employees. Basic Long Term Care benefits may begin after a 90 day Elimination Period and can provide either a $1,000 per month Facility benefit, 60% Assisted Living Facility benefit or 50% Professional Home Care benefit. The Basic Lifetime Benefit Maximum is $36,000. Employees may also apply for Additional Long Term Care Insurance for themselves and their families to supplement the basic coverage provided by ERCOT. Additional Long Term Care Insurance is also provided by Unum and employee and spouse coverages are purchased through payroll deduction. 6 Note: This coverage has a portability option. This means you can take your policy with you if you leave ERCOT.
7 Flexible Spending Account Flexible Spending Accounts (FSA) help you save money by using pre-tax dollars for qualified health care and dependent care expenses. Health Care FSA (HCA) You can set aside up to $5,000 in a tax-free (from Social Security, Medicare, and Income Tax) FSA account. Use pre-tax dollars to pay for medical, dental, vision care and medications or medical supplies. You have immediate access to the entire contribution amount from the first day of the benefit year, before all scheduled contributions have been made. Your FSA may be used for eligible expenses* for any qualified dependent as defined by the IRS. Dependent Care FSA (DCA) You can set aside up to $5,000 per household in a tax-free (from Social Security, Medicare, and Income Tax) FSA account. You only have access to the contributions that have been made up to the time of your claim. Eligible expenses* include costs for daycare, day camps and elder care. You and your spouse must be working to qualify for this benefit. Plan Highlights Minimum/Maximums Annual Elections: Health Care - $100/$5,000/per employee; Dependent Care - $100/$5,000/per household Your annual elections must remain the same throughout the plan year unless you have a permitted event. HCA Grace Period You have until September 15, 2013 to incur eligible expenses and avoid the use it or lose it IRS rule. HCA and DCA Claim Run Out Period You have until September 30, 2013 to submit your claims incurred during the plan year (07/01/2012-06/30/2013). All employees participating in a HCA will have access to a stored value debit card. Additional cards and replacement cards may be requested once your account has been set up. Go to www.conexis.com to request additional cards. Reminder: The IRS Use it or Lose it rule applies to both accounts. *Reference IRS Publication 502 for healthcare expenses & IRS Publication 503 for dependent care expenses: Healthcare Expenses: http://www.irs.gov/publications/p502/ Dependent Care Expenses: http://www.irs.gov/publications/p503/ 7 7
8 401K Retirement Savings Plan ERCOT offers a 401(k) Plan through Fidelity to help employees set aside pre-tax and post-tax dollars for their retirement. Eligible employees may enroll in the 401(k) plan at any time. Employee Contributions Employees may elect in whole percentages to defer pre-tax and/or post-tax contributions. Auto-enrollment after 30 days of employment will be selected for you at a 3% deferral and invested in a Targeted Retirement Fund if you have not made a deferral or an investment election. Company Contributions Employees may contribute up to 99% of their salary each pay period subject to IRS deferral maximums. ERCOT currently matches 75% of the employee s contribution up to 6%. ERCOT currently contributes a fixed nonelective contribution at 10% of salary for all employees (regardless of employee contribution). Vesting Schedule The Company Vesting Schedule is based upon years of employment with ERCOT. Vesting Schedule for Fixed Non-Elective Contribution Completion of 1 year employment 0% Completion of 2 years employment 0% Completion of 3 years employment 100% Investments Options 15 Mutual Funds 11 Targeted Retirement Funds Self-Directed Brokerage Account (SDBA) Paid Time Off & Holidays Vacation Paid vacation time is based upon years of service with ERCOT and is accrued on a per pay period basis. Standard Paid Vacation Accrual Schedule 1st until the 5th year of continuous service 5th until the 10th year of continuous service 2 weeks (80 hours) 3 weeks (120 hours) 10+ years of continuous service 4 weeks (160 hours) Sick Leave Employees may receive up to 10 sick days per year. Sick leave is accumulated on a per pay period basis. Buy Vacation Employees can elect to buy up to forty (40) hours of vacation (increments of 8 hours) upon hire and during open enrollment periods. Vesting Schedule for Company Match Completion of 1 year employment 20% Completion of 2 years employment 40% Completion of 3 years employment 60% Completion of 4 years employment 80% Completion of 5 years employment 100% Financial Planning Session AON Investment Consulting, Inc. is available to meet with employees on a one-on-one quarterly basis to discuss your personal financial goals. Holidays ERCOT employees receive up to 12 paid holidays per year, including 8 regularly scheduled holidays and up to 4 floating holidays. New Year s Day Memorial Day Independence Day Labor Day Thanksgiving Day ERCOT Recognized Holidays Friday Following Thanksgiving Christmas Eve Christmas Day Floating Holidays Pro-rated based on date of hire for first year January 1 - February 28/29 March 1 - May 31 June 1 - August 31 September 1 - November 30 December 1 - December 31 4 floating holidays 3 floating holidays 8 2 floating holidays 1 floating holiday 0 floating holidays
9 Employee Assistance Program - 100% Employer Paid Premium ERCOT provides an Employee Assistance Program with Alliance Work Partners to all employees and their dependents at no cost to employees. The EAP provides professional counseling and confidential assistance for a variety of personal and workplace issues. There are four different programs that are accessible to you through the EAP: Counseling, Work/Life Services, Help Net and Wellness Coach. Well Coaching Sessions EAP Is available to meet with employees on a one-on-one quarterly basis to discuss your personal health and well-being concerns and questions. EAP Contact Information: Group # ERCOT Teen Hotline: 800-343-8336 or 512-328-1144 Customer Service: 800-334-3822 Customer Service Hours: 24 hours per day / 365 days per year www.alliancewp.com Tuition Reimbursement Program Traditionally, employees take advantage of tuition reimbursement to earn their undergraduate and graduate degrees, however, this benefit can also be used for all career-enhancing coursework within established guidelines that promote professional development. All active full-time ERCOT employees who have completed six months of service are eligible to receive $5,000 per calendar year to use toward educational enrichment. Management approval is required before the start of coursework and proof of successful completion is required prior to receiving reimbursement. Total Monthly Premium Employer Pays (Monthly) Employee Monthly Premium Employee Pays (Per Pay Period) Health Basic Plan Employee: $500.11 $476.11 $24.00 $12.00 Employee + Spouse/Domestic Partner:* $1,014.02 $953.02 $61.00 $30.50 Employee + Child(ren): $891.46 $838.46 $53.00 $26.50 Employee + Family: $1,445.94 $1,358.94 $87.00 $43.50 Health Buy-Up Plan Employee: $593.68 $486.68 $107.00 $53.50 Employee + Spouse/Domestic Partner:* $1,245.93 $1,009.93 $236.00 $118.00 Employee + Child(ren): $1,058.23 $858.23 $200.00 $100.00 Employee + Family: $1,716.43 $1,392.43 $324.00 $162.00 Dental Plan Employee: $30.39 $30.39 $0.00 $0.00 Employee + Spouse/Domestic Partner:* $66.84 $60.84 $6.00 $3.00 Employee + Child(ren): $54.67 $49.67 $5.00 $2.50 Employee + Family: $115.44 $107.44 $8.00 $4.00 Vision Plan Employee: $5.12 $5.12 $0.00 $0.00 Employee + Spouse/Domestic Partner:* $11.28 $11.28 $0.00 $0.00 Employee + Child(ren): $9.21 $9.21 $0.00 $0.00 Employee + Family: $19.48 $19.48 $0.00 $0.00 9 *Note: Domestic Partner rates are subject to post-tax deductions and imputed income. This brochure highlights some of the main features of your benefit programs, but does not include all plan rules, features, limitations or exclusions. The terms of your benefit plans are governed by legal documents, including insurance contracts. Should there be any inconsistencies between this brochure and the legal plan documents, the plan documents are the final authority.
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12 ERCOT, Inc. Gallagher Benefit Services, Inc. 12 Print Date: June 2012