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2012 Benefits
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• This document is intended to be a high-level overview. The terms and conditions of the benefits described are determined solely by the summary plan descriptions (SPDs) or plan documents and summaries of material modifications of the Dresser-Rand Company Welfare Plan, Pension Plan for Employees of Dresser-Rand Company and the Dresser-Rand Company Retirement Savings Plan. In the event of any inconsistent provisions, the language of the plan documents applies.
• As in the past, the Company reserves to itself, pursuant to its sole and exclusive discretion, the right to change, amend or terminate this Plan according to the terms of the applicable plan documents and subject to any collective bargaining agreements.
• Benefits described herein may not automatically apply to employees at all locations or employees covered under a labor agreement.
• Plan is subject to nondiscrimination rules that may reduce or limit the tax advantages of the plan for certain employees.
Disclaimer
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Dresser-Rand Benefits Enrollment
• Enrollment will be on-line• Benefits website:
www.dresser-rand.com/benefits• Can review benefits information on website• Can access online enrollment system by
selecting:
2012 Benefits Enrollment
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Dresser-Rand Health & Welfare Benefits
• Health• Medical/Prescription • Wellness• Dental• Vision • Health Savings Account (HSA) • Flexible Spending Accounts (FSAs)• Employee Assistance Program (EAP)
• Income Protection• Basic Life and AD&D• Optional Life • Voluntary AD&D• Business Travel Benefits• Voluntary Group Legal• Disability
• Retirement Savings Plan• Vacation Purchase Plan
Overview
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EligibilityHealth & Income Protection
• Full-time employees working over 35 hours per week AND Part-time employees working over 20 hours per week are eligible for all benefits
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Who can you cover?• Your legal spouse
• Your children (biological, adopted or step-children) until the end of the month they attain age 26
• Other children who live with you in a parent-child relationship and for whom you have legal guardianship. (Same age guidelines apply as above)
• Your children age 26 or older who are certified by BlueCross to be disabled due to mental or physical disability and who are dependent on you for financial support (the disability must be certified prior to age 26)
NOTE: If both you and your spouse work for Dresser-Rand, the plan does not allow “double coverage”. Only one of you may choose coverage for your eligible children. And if you choose an enrollment category that covers your spouse, your spouse will not be eligible to also choose duplicative coverage under any Company-sponsored Plan or program.
Eligible Dependents
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Medical Options
• MedicalPlus - A Consumer Directed Health Plan with a Preferred Provider network
• PPO – Preferred Provider Option
Medical Benefit Choices
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MedicalPlus
MedicalPlus utilizes a PPO network of providers • Choice of physicians and hospitals• BlueCross BlueShield offers the largest PPO network
in the United States• Higher level of benefits using BCBS network
providers• No claim forms to file when using network providers• Lower claim costs through negotiated network• Prescription Coverage through Caremark• Health Savings Account contribution
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MedicalPlus
In-Network Benefits• $2,500 Individual or $5,000 Family Deductible
(combined medical and prescription claims)– 10% Coinsurance (Plan pays 90%)
– After the purchase of two 30-day refills for any maintenance medication at retail pharmacies, all future refills for those prescriptions must be filled through the Caremark mail order service
• Annual Out-of-Pocket Maximum(including deductible)
– $3,000 individual or $6,000 family
• Wellness Benefits and Well Baby Benefits based on Preventive Services Task Force Guidelines (100% coverage, deductible does not apply, no maximum)
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MedicalPlus
Out-of-Network Benefits
• $3,000 Individual or $6,000 Family Deductible(combined medical and prescription claims)– 30% Coinsurance Medical (Plan pays 70%)– 35% Coinsurance Rx (Plan pays 65%)
• Annual Out-of-Pocket Maximum (including deductible)
– $5,000 individual or $10,000 family
• No Wellness Benefits
• “Reasonable & Customary” applies
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Health Savings Account (HSA)
• Tax-free spending account for qualified medical/ prescription drug, dental, vision
• Access funds using a debit card or checkbook• Gives you more control of money spent on health care• Dresser-Rand will contribute to every participant’s HSA• Employees can make additional tax-advantaged HSA
contributions through payroll deduction (Up to IRS Limits)
• Over-the-counter medication is not reimbursable unless there is a doctor’s prescription for it
• Contributions are not “use-it or lose-it”!
MedicalPlus Health Savings Account
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2012 Dresser-Rand Annual Contribution*
Employee Only $1,000
Employee + 1 $1,500
Family $2,000
*Company contributions deposited up front; prorated based on portion of calendar year remaining.
MedicalPlusHealth Savings Account
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2012 Optional Employee Contributions
Employee Only Up to an additional $2,100($3,100 if 55 Years Old by 12-31-2012)
Employee + 1 Up to an additional $4,750($5,750 if 55 Years Old by 12-31-2012)
Family Up to an additional $4,250 ($5,250 if 55 Years Old by 12-31-2012)
MedicalPlusHealth Savings Account
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PPO utilizes same network as MedicalPlus
• Choice of physicians and hospitals• BlueCross BlueShield offers the largest PPO network
in the United States• Higher level of benefits using BCBS network
providers• No claim forms to file when using network providers• Lower claim costs through negotiated network• Prescription Coverage through Caremark• No HSA Contribution
PPOBlueCross BlueShield of Illinois
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In-Network Benefits
• $300 Individual or $700 Family Deductible• 20% Coinsurance (Plan pays 80%)• Annual Out-of-Pocket Maximum (including
deductible)– $2,000 individual or $4,000 family
• Wellness Benefits and Well Baby Benefits based on Preventive Services Task Force Guidelines (100% coverage, deductible does not apply, no maximum)
PPOBlueCross BlueShield of Illinois
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Out-of-Network Benefits
• $600 Individual or $1,400 Family Deductible• 40% Coinsurance (Plan pays 60%)• Annual Out-of-Pocket Maximum
– $4,000 individual or $8,000 family (excluding out of network drugs)
• No Wellness Benefits• “Reasonable & Customary” applies
PPOBlueCross BlueShield of Illinois
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In-Network Benefits
• No Deductible• Retail Benefit (up to a 30-day supply)
– $10 co-payment for Generic Prescriptions– 35% Coinsurance for Brand Prescriptions (Plan pays 65%)– Per prescription maximum cost of $150– After the purchase of two 30-day refills for any maintenance
medication at retail pharmacies, all future refills for those prescriptions must be filled through the Caremark mail order service
• Mail Order Benefit (up to a 90-day supply)– $20 co-payment for Generic Prescriptions– 25% Coinsurance for Brand Prescriptions (Plan pays 75%)– Per prescription maximum cost of $300
• 90-day supply of maintenance medication may also be purchased at a local CVS/Retail Pharmacy at the same Coinsurance as the Mail Order
• Annual Out-of-Pocket Limit $1,250 individual or $2,500 family
PPO – PrescriptionsCaremark
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MedicalEmployee Contributions
2012 Monthly Employee Contributions
MedicalPlus• Employee Only $ 48.55• Employee + 1 $ 82.50• Family $116.00
PPO• Employee Only $110.50• Employee + 1 $206.00• Family $301.50
NEW EMPLOYEES: Complete the online Health Risk Assessment and your 2012 medical coverage contribution will be reduced by $15 per month beginning the first of the month after your questionnaire is processed.
PART-TIME EMPLOYEES: If you are a part-time employee scheduled to work at least 20 hours but less than 35 hours per week you are eligible for medical coverage at 150% of the monthly contribution rates stated here for full-time employees.
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Personal Health ManagerPersonalized Coaching Program in any or all of the following
areas:– Eating habits;– Physical activity;– Stress management;– Tobacco cessation; or– Weight management.
When you enroll you will be paired with a health professional who will develop a personalized coaching program with you through confidential, over-the-phone sessions
Completely voluntary and confidential
Wellness ProgramBlue Care Connection
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Health Risk Assessment• Online questionnaire that evaluates your health and gives you
a detailed, confidential report with action steps to help you improve your health.
• Receive a $15 discount on monthly medical contributions if you complete the online Health Risk Assessment. Your discounted rate will begin the first of the month after your questionnaire is processed.
• You will need to enter your personal biometric data– Blood pressure– Cholesterol and blood glucose levels– Body mass index
Completely voluntary and confidential
Wellness ProgramBlue Care Connection
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Deductible• Preventive Services None• Basic, Major & Orthodontic $25 individual/$75 family
Coinsurance• Preventive Services 100%• Basic Services 80%• Major Services 50%• Orthodontic Services 50%
Maximum Coverage• Dentistry $1,200 per person annual• Orthodontics* $1,200 lifetime maximum
Preventive Services DO NOT count toward annual maximum
* Note: Orthodontic coverage provided for eligible dependent children up to age 19
DentalBlueCross BlueShield Illinois
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DentalEmployee Contributions
2012 Monthly Employee Contributions
• Employee Only $25.00• Employee + 1 $51.00• Family $76.00
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VisionVSP
Voluntary Vision Program
• Benefits provided by Vision Service Plan (VSP) – Largest vision care provider in the US with over 50 years experience
• Plan provides vision benefits each year– 2 pairs of frames and lenses; or– 1 pair of frames and lenses and contacts lenses
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VisionVSP
Voluntary Vision Program
In-Network Benefits
• $10 co-payment for vision exams• $150 allowance for eyeglass frames• $10 co-payment for eyeglass lenses• Progressive & photochromic lenses & tints covered in full• $150 allowance for daily wear contact lenses
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VisionVSP
Voluntary Vision Program
Out-of-Network Benefits
• Up to $45 for vision exams• Up to $47 for eyeglass frames• Up to $45 for single vision eyeglass lenses• Up to $65 for bifocal eyeglass lenses• Up to $85 for trifocal eyeglass lenses• Up to $125 for lenticular eyeglass lenses• Up to $105 for daily wear contact lenses
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VisionEmployee Contributions
2012 Monthly Employee Contributions
• Employee Only $13.55• Employee + 1 $27.13• Family $43.66
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• Full Use Healthcare Flexible Spending Account(for PPO Enrollees)
• Limited Use Healthcare Flexible Spending Account – dental & vision expenses only (for MedicalPlus Enrollees)
• Dependent Care Flexible Spending Account – daycare expenses only
Flexible Spending Accounts (FSA)
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• Use tax-free contributions to pay for medically necessary, non-covered medical, prescription drug, dental and vision care expenses:– All healthcare deductibles and coinsurance amounts– Eyeglasses, contact lenses– Health club membership (with a doctor’s note)– Exercise equipment (with a doctor’s note)
• You may contribute from $100 to $5,000 per year • Debit card to access account• Paper claims will be required for claims not submitted
using debit card or the online claims submission process• Cannot be used with an HSA
Full Use Healthcare FSA(PPO Participants)
Important Reminders: This is a “USE IT or LOSE IT” planOver-the-counter medicine must have a doctor’s prescription in order to qualify for reimbursement.
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• Limited Use FSA coordinated with HSA• Use tax-free contributions to pay for non-
covered health (dental and vision) expenses:– Dental and vision deductibles, coinsurance
amounts and other expenses– NO medical/prescription drug expenses covered
by the Plan are allowed (must use your HSA)• You may contribute from $100 to $5,000 per
year• Debit card to access account• Paper claims will be required for claims not
submitted using debit card or the online claims submission process
Limited Use Healthcare FSAFor HSA Participants
Important Reminder: This is a “USE IT or LOSE IT” plan
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• Use tax-free contributions to pay for day care expenses for:– Children (up to age 13)– Elderly parents
• If married, both you and your spouse must work outside the home
• You may contribute from $100 to $5,000 per year*
• You can elect direct deposit for your reimbursements
Dependent Care FSA
Important Reminder: This is a “USE IT or LOSE IT” plan
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• Company-provided benefit• Free confidential counseling for employees & dependents
Depression and anxiety* Stress* Relationships* Work/life balance*Addictions and abuse* Financial servicesLegal consultation Grief and loss*
* Up to 8 company-paid sessions, per issue, per year, per family member
Employee Assistance Program
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• Dresser-Rand provides employees with:– $50,000 of Basic Life Insurance– $50,000 of Basic AD&D
• Employees can purchase additional:– Optional Life Insurance for self &
dependents– Voluntary AD&D Insurance for self &
dependents
Life Benefits
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• Employee Optional Life
– $25,000 increments, up to $500,000– Evidence of Insurability (EOI) required
for amounts elected over $250,000– EOI required for increases after initial
election
Optional Life InsuranceEmployee
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• Spouse Life– $25,000 increments, up to $250,000 or 50% of
employee amount, (combined Basic and Optional) whichever is less
– Employee must elect Optional Life in order to elect Spouse Life
– Evidence of Insurability (EOI) required for amounts elected over $25,000
• Child(ren) Life– If elected, each child will have $10,000 of Life
Insurance– Employee must elect Optional Life in order to
elect Child Life
Optional Life InsuranceDependents
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Optional Life InsuranceRates
• Employee and Spouse Rates are Based on– Age– Tobacco or Non-Tobacco use status
• Tobacco products include cigarettes, pipes, cigars, snuff and chewing tobacco
– Rate sheet are included in enrollment packets and are available on the Dresser-Rand benefits website: (www.dresser-rand.com/benefits)
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Can elect Employee or Family coverage• Employee
– $25,000 increments, up to $500,000
• Family (Benefit based on Family members)– Spouse only
• 60% of employee coverage
– Child(ren) only• Each child, 15% of employee coverage
– Spouse and Child(ren)• Spouse, 50% of employee coverage• Each child, 10% of employee coverage
Voluntary AD&D InsuranceEmployee or Family
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• Dresser-Rand provides you with:– 4 x current base salary– Minimum benefit is $100,000– Maximum benefit is $1,000,000– Covers you for death/dismemberment
while traveling on Company business
Note: If a common accident results in the death or dismemberment of more than one covered person, the maximum benefit paid to all covered people is $5,000,000
Business Travel Accident Insurance
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• Voluntary• Access to a network of over 10,000
attorneys• Services include:
– Document Preparation– Family Law– Real Estate Matters– Wills and Estate Planning– Traffic Matters
• Employee cost = $15.75 per month• Access @ www.legalplans.com
Legal Benefits
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• Short-Term Disability (pay continuation)
• Long-Term Disability
Disability Benefits
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• Dresser-Rand provides you with replacement income if you are determined to be disabled for a non work-related injury or illness.– 12 weeks at 100% of base pay (40 hrs /
wk)– 14 weeks at 60% of base pay (40 hrs /
wk)
Short-Term Disability(Pay Continuation)
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• If you remain totally disabled after the STD period expires (26 weeks), you may be eligible for coverage in the LTD program
• Employees eligible to continue fringe benefits for 36 months at current active rate
• LTD Benefit includes:– A monthly basic benefit equal to 40% of your
Dresser-Rand base earnings
• Employees are administratively terminated upon transition to LTD.
Long-Term Disability
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• You can purchase Voluntary LTD coverage for a total monthly benefit of:
– 50% (10% optional buy-up), or– 60% (20% optional buy-up) of your base
earnings
Long-Term DisabilityBuy-up Options
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Vacation & Holidays
• Vacation levels are based on years of service with Dresser-Rand
• Dresser-Rand provides 10 holidays each year
Years of Service Vacation Level
0 – 9 Years 15 Days
10 – 24 Years 20 Days
25 Or More Years 25 Days
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Vacation Purchase Plan
• Purchase an extra 5 days of vacation• Cost is based on your annual base
salary divided by 2080 multiplied by the number of hours requested
• Pre-tax deductions spread over remaining pay periods in year
• Elect 1-5 days in 4 hour (1/2 day) increments
• Enrollment form must be completed and returned within 31 days of hire date
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Retirement Savings Plan
Eligibility • You are eligible to participate in the Dresser-Rand Company Retirement
Savings Plan, as soon as administratively practicable following your hire or rehire date
Benefits Available Under the Plan• Both Tax Deferred (Pre-Tax) and Roth (After-Tax) contributions to the Plan
are allowed • A Catch-Up feature, for those age 50 or greater by year end, allows you to
save additional amounts• Company Matching Contributions depending on your paycheck deferral• Automatic Company Basic Contributions• Loans and In-Service Withdrawals are available on a limited basis
Plan Recordkeeper - Fidelity • For general assistance or enrollment contact Fidelity Retirement Service
Center (1-800-835-5097) or visit www.401k.com
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Retirement Savings Plan
Company Basic Contributions – No Enrollment needed
• All eligible participants of the Plan, will automatically receive a “Basic” contribution to their account. This contribution is paid by Dresser-Rand and equal to 3% of eligible earnings per pay period.
• Since these contributions are automatic, they will begin with your first eligible pay check – meaning you do not need to enroll in the Plan to receive them.
Vesting Schedule for Company Basic Contributions
Period of Service Percent Vested
Less than 36 months 0%
Minimum of 36 months 100%
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Retirement Savings Plan
Your Elective Deferral & Company Matching ContributionsElective Deferrals and IRS Annual Limits
You may elect to defer between 1% and 75% of eligible pay into the Plan.
However, you may not exceed the applicable annual IRS limits below:• The 2012 Elective Deferral limit is $17,000• The 2012 Catch-Up Deferral limit is $5,500 (Catch-Up Deferrals are only available to Participants age 50 or older)
These limits apply to the sum of your tax deferred and your after-tax (Roth) deferrals.
The Company Match Based on your elective deferral, a “matching” contributions will be made to your account. This contributions is paid by Dresser-Rand and equal to each dollar you contribute up to 3% of eligible earnings, then $.50 for each dollar you contribute between 3% and 5% of eligible earnings. This makes the maximum Matching contribution possible 4% if you contribute 5%.
Vesting Schedule for Elective Deferrals and Company Match
You are immediately 100% vested in the Company Match contributions made to your account and you are always 100% vested in your contributions and their earnings.
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Retirement Savings Plan
Employee Savings
Rate (per pay period)
Company Match
Basic Contribution
s
Total Contributio
n(as a % of pay)
1% 1% 3% 5%
2% 2% 3% 7%
3% 3% 3% 9%
4% 3.5% 3% 10.5%
5% 4% 3% 12%
6% 4% 3% 13%
7% 4% 3% 14%
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Retirement Savings Plan
Fidelity can assist you if you want to:• Enroll in the Plan• Change Your Investment Election• Change Your Paycheck Deferral Election• Request a Loan• Request an In-Service Withdrawal, and Loan Address
Changes• Roll Over Another Plan’s Balance into this Plan
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Retirement Savings Plan
For more information:
Fidelity Retirement Service Center
1-800-835-5097
Fidelity Web Access www.401k.com
Retirement Benefits Department
Plan Administrator:Phone: E-mail:
Michele [email protected]
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Questions
Welcome to Dresser-Rand!
