2013 Employee Benefits Open Enrollment

November 19 – December 3, 2012

Agenda• Open Enrollment Basics

• Health Care Reform – How It Impacts You In 2013

• 2013 Employee Contribution Limits

• Salient Benefits

• Benefits Insurance Providers, Medical, Dental, Vision

• FSA/HSA/HRA

• Disability

• How to Make Open Enrollment Elections

• Additional Salient Programs Offered

• Contacts/Questions

Open Enrollment Basics• Open Enrollment begins

November 19 and ends December 3

• Only time during the year you can make changes unless you have an IRS qualifying event

• Detailed information is being mailed to your home address

• Your current Insurance elections will automatically roll-over unless you make a change, excluding Flexible Spending Accounts (Health-Care and Dependent Care). You must re-enroll, if you are interested in participating in the FSA program in 2013.

• Changes must be made through the NuView system.

• Forms, information and current benefit elections are available via NuView. https://hr.salientfed.com/

Health Care Reform – How It Impacts You In 2013• The Patient Protection and Affordable Care Act (PPACA) requires Salient to

make the following changes:

• Maximum limit on Health Care Flexible Spending Accounts capped at $2,500, for 2013.

• 2012 W-2’s will display the value of your health insurance benefits.

• A mandatory Summary of Benefits and Coverage (SBC) will be distributed for Medical and Rx prior to 2013 Open Enrollment.

• Mandatory Legal Notices (e.g. Employee Notice of Exchange) will be sent out by March 31, 2013.

2013 Employee Contribution Limits

Contribution Type Annual Limit for 2013

401(k) $17,500

401(k) Age 50+ $17,500 + $5,500 Catch-up

Healthcare Flexible Spending Account* $2,500

Limited Purpose Flexible Spending Account* $2,500

Dependent Care Flexible Spending Account* $5,000

Health Savings Account*: Participation in Wellness Program

Employee Only: $2,312.50Family (2 or more): $4,575

Health Savings Account*:Non-Participation in Wellness Program

Employee Only: $2,500Family (2 or more): $4,950

*You must make your contribution election in NuView during Open Enrollment if you want to contribute to any of these accounts.

Benefits Insurance Providers

Our Medical Plan Dares to Be Different

• Optimizes both employer and employee costs today and into the future

• Helps to mitigate medical cost escalation

• Tax optimization

• Retiree health savings

Different Level of Engagement is Required

Retiree Health – What’s Ahead for You?

• How will you pay for medical expenses in retirement?

• Continue to work?

• Medicare?

• It’s never to early to begin planning!

In Sickness• Absolute out-of-pocket maximum

per year

• Drugs and medical expenses combined

• Health Savings Account to offset deductible and coinsurance expenses

• Best in class medical and Rx providers

• Freedom to choose network or non-network providers

And In Health

• Superb insurance coverage at affordable premium rates

• 100% preventive care benefit for whole family

• Absolute yearly out-of-pocket maximum costs

• Employer provider Health Savings Account that is always yours – now and into the future

CIGNA Consumer Driven Plan (CDHP)Plan Option 1:

Higher Premium/Lower Deductible • Salient Contributions to HSA

– Employee Only: $187.50 quarterly funded (up to $750)

– Employee + 1 or more: $375.00 quarterly funded (up to $1500)

• Annual Deductible– In-Network: Employee $1,500; Family $3,000– Out-of-Network: Employee $3,000; Family

$6,000• Coinsurance (You pay)

– In-Network: 10% (Plan pays 90%)– Out-of-Network: 30% (Plan pays 70%)

• Preventive Care covered at 100%• Preventive Prescription Drugs at 100%• No copayments, no office visit referrals • Administered: Cigna Choice Fund

Plan Option 2:Lower Premium/Higher Deductible

• Salient Contributions to HSA– Employee Only: $187.50 quarterly funded (up

to $750)– Employee + 1 or more: $375.00 quarterly

funded (up to $1500) • Annual Deductible

– In-Network: Employee $2,000; Family $4,000– Out-of-Network: Employee $4,000; Family

$8,000• Coinsurance (You pay)

– In-Network: 10% (Plan pays 90%)– Out-of-Network: 30% (Plan pays 70%)

• Preventive Care covered at 100%• Preventive Prescription Drugs at 100%• No copayments, no office visit referrals • Administered: Cigna Choice Fund

Prescription Drug Coverage provided by Medco Rx

Be an Informed Consumer

Tools

• Provider and facility quality designation

• Condition management database

• Health coaches

• Estimate health care expenses

• Find a provider

Tips

• Generalist vs. specialist

• Use network provider

• Consider generic drugs

• Mail order drugs for routine medications

• Obtain your preventive care!

Health Savings Accounts• Must not be covered under any

other health insurance plan (spouse/partner, VA, Tricare, COBRA, retiree plan, Medicare, etc.)

• Triple Tax Protected

• Portable

• Can be used for medical, Rx, dental and vision expenses

• May be combined with a Limited Purpose FSA for additional tax savings

HSA Qualified ExpensesWhat expenses can be paid by an HSA?

Your HSA covers a wide variety of medical expenses. These medical expenses must be necessary for the treatment or alleviation of a specific illness or injury. They may include hospital or clinic services, prescription drugs and medications, certain over-the-counter drugs, and many other health related expenses as defined by Section 213(d) of the Internal Revenue Code. Medical expenses covered under the HSA can include expenses that are not covered under the high deductible health plan such as chiropractic, dental, orthodontia, or vision expenses. For more information about eligible expenses, please consult Publication 502 available at your local IRS office or from the IRS website: www.irs.qov. Your HSA can also be used to pay premiums for COBRA, Medicare, long-term care insurance (federal limits apply), and health plan coverage you may have while receiving unemployment compensation. The following are examples of qualified medical expenses:

Acupuncture Dentures Learning Disability Psychiatric Care Alcoholism Treatment Diabetic Supplies Medical Records Charge Psychoanalysis Ambulance Diagnostic Services Medical Services Psychologist Artificial Limbs/Teeth Drug Treatment Medications/Drugs Reading Glasses Aspirin Drugs/Medicines Nursing Services Screening Tests Bandages Egg Donor Fees Obstetrical Expenses Sleep Deprivation Treatment Birth Control Pills Eye Exams/Glasses Occlusal Guards Smoking Cessation Programs Blood Pressure Monitoring Devices Fertility Treatment Operations Sterilization Procedures Blood Sugar Test Kit Flu Shots Optometrist Supplies for Medical Condition Body Scan Glucose Monitoring Devices Organ Donors Surgery Chelation (EDTA) Therapy Guide Dog Orthodontia Therapy Chiropractors Hearing Aids Osteopath Transplants Circumcision Home Care Over-the-counter Drugs/Medicines Vaccines Copays/Deductibles Hormone Replacement Therapy Ovulation Monitor Vasectomy Condoms Hospital Services Oxygen Vision Correction Procedures Contact Lenses/Related Material Immunizations Physical Exams Wheelchair Contraceptives lnclinator Physical Therapy X-Ray Fees Counseling (excludes marriage) Insulin Pregnancy Test Crutches Laboratory Fees Prescription Drugs Dental Treatment Laser Eye Surgery Prosthesis

Pharmacy: Express Scripts/Medco• Prescriptions are part of the high deductible plan

• Preventive drugs are not subject to the deductible

• All other drugs are subject to deductible and out of pocket limits

• Very large national network of pharmacies

• Once deductible is met (e.g. $1,500 for employee only or $3,000 for family) employee pays 20% of cost up to max. per below

Retail Prescription Mail Order Prescription

Generic Max of $30 Generic Max of $75

Formulary Max of $60 Formulary Max of $150

Non-Formulary Max of $100 Non-Formulary Max of $250

Don’t Forget• If you have two or more members covered on your medical plan, you

must satisfy the entire family deductible before Cigna begins to pay for qualified expenses

• Prescription drugs are part of your high deductible plan. That means that you have to satisfy your deductible before eligible drugs are paid for

• Preventive care without a medical diagnosis is free and not subject to the deductible

• Your contributions to your Health Savings Account may be changed throughout the year. You may also front load your contributions

• You may be able to pay yourself back with your Health Savings Account for expenses you had to pay for out of pocket before you accrued sufficient funds in your account

TRICARE Supplement• If you are enrolled in DEERS and TRICARE, you may elect to participate in

the TRICARE Supplement on a pre-tax basis

• Supplement provides coverage for out-of-pocket expenses associated with TRICARE Prime or Standard or Extra coverage

• For more information please visit: http://www.asicorporation.com/faq_corporate.html

• You may supplement TRICARE through Salient’ s CIGNA high deductible health plan

• No HSA, but can have a HRA (Health Reimbursement Account) with a company contribution

• May elect to have a FSA to pay for additional medical, dental or vision expenses

UCCI PPO Dental Plan• Strong network for military and Federal Government locations

• Annual Deductible: o Individual $50o Family $150

• Preventive Services: 100% (included cleaning, exams, x-rays)

• Basic Services: 80%

• Major Services: 50%

• Orthodontia: 50%, up to lifetime maximum of $2,000

Vision Service Plan (VSP)• Employee paid vision plan, offered through VSP• Largest vision network in the nation• Benefits from a VSP Participating Provider:

• Routine Vision Exams: $10 copay, every 12 months• Lenses: $25 copay, every 12 months• Frames: $25 copay, every 24 months• Contact Lens (in lieu of frames and spectacle lenses): No copay, every 12

months• Reimbursable benefits vary for non-participating providers

Note: VSP guarantees service from VSP doctors only. When you see a VSP providers, you’ll get the most out of your benefit and have a lower out-of-pocket cost.

Benefit Accounts

All of these accounts are subject to IRS rules and regulations. This chart is intended for summary purposes only.

Health-Savings Account (HSA)

Limited Purpose Flexible Spending Account (LFSA)

Health Care Flexible Spending Account (HCFSA)

Health Reimbursement Account (HRA)

Dependent Care Flexible Spending Account (DCFSA)

ER Contributes: Wellness Program Participants $937.50/$1,875OR Non-Wellness Program Participants $750/$1,500

EE Contributes (optional): Wellness Program Participants $2,312.50/$4,575OR Non-Wellness Program Participants $2,500/$4,950

ER: No Contribution

100% EE contribution

ER: No Contribution

100% EE contribution

ER: Reimburses expenses up to $750/$1,500EE: Doesn’t have an option to contribute

ER: No Contribution

100% EE contribution

ER Contributes: Wellness Program Participants $937.50/$1,875OR Non-Wellness Program Participants $750/$1,500

EE Contributes (optional): Wellness Program Participants $2,312.50/$4,575OR Non-Wellness Program Participants $2,500/$4,950

$2,500.00 pre-tax limit $2,500.00 pre-tax limit $750/1,500.00 per the plan document

$5,000.00 pre-tax(current ATSC elections will remain)

Rollover unused funds to the next year/Portable

Use or lose/not portable Use or lose/not portable Rollover unused funds to the next year/not portable

Use or lose/not portable

Can be used for medical, dental and vision expenses

If enrolled in a HSA plan: used for dental and vision expenses only

Can be used for medical, dental and vision expenses

Can be used for medical, dental and vision expenses

Day-care/Summer-camp/After-school program

Enrolled in CIGNA (domestic) w/no other coverage

Enrolled in company HSA Not enrolled in company HSA Enrolled in CIGNA (domestic) w/additional health coverage outside of Salient

N/A

MetLife Life and Disability Plans• Basic Life insurance: 1 x Base Salary, up to $100k (Salient paid - Core Benefit)

• Basic AD&D insurance: 1 x Base Salary, up to $100k (Salient paid - Core Benefit)

• Supplemental Life insurance coverage: (100% Employee paid)

• Employee coverage of $160,000 Guarantee Issue; up to 5x your annual salary, up to maximum of $500,000

• Spouse coverage of $25,000 and Child(ren) coverage of $10,000 Guarantee Issue (Note: Prior approval by MetLife is needed for coverage above the guaranteed issue limits.)

• Voluntary Short-Term Disability (100% employee paid; post-tax)

• 60% of salary, capped at $2,500 weekly maximum benefit

• Core Long-Term Disability (100% Salient paid- Core Benefit; post or pre-tax)

• 40% of salary; LTD coverage capped at $10,000 monthly maximum benefit• No Action Needed! As a Salient employee, you are automatically covered under the core

LTD plan, provided you remain eligible for benefit.

• Buy-up Long-Term Disability (100% employee paid; post or pre-tax)

• Additional 20% of LTD coverage is available to you, total benefit of 60% of LTD coverage

How to Make Open Enrollment Elections

NuView Enrollment• To make your Open Enrollment elections you will need to log into NuView

at https://hr.salientfed.com

• You will be able to view/update the following:

• Update/review your home address and demographic information

• Add covered dependents, beneficiaries and emergency contacts

• Make your 2013 benefit elections

• Enroll in HealthCare and Dependent Care FSAs

• Enroll in Supplemental Life plan elections

• Make sure to print a copy of your 2013 benefit elections!

• Retain your copy as proof of enrollment.

Launching the Open Enrollment Wizard• When you login to NuView you will see the Things To Do panel in the

middle of the Home Page. There you will find the Benefit Open Enrollment link. This will launch the Wizard that will walk you through the enrollment process.

Address & Demographic Updates• As part of the Open Enrollment Wizard you will be given the opportunity to

update your Address and Demographic information.

• Please note that these data items are not immediately updated in the system. There is an HR approval process that takes place to update the data so you will not see the updated information reflected until then.

Make Your 2013 Benefit Elections• On the Benefit Election page you will see most of the benefits plans that

you are eligible to participate in. The Chosen flag will appear for those plans that you are currently enrolled in as all elections will carry over with the exception of the FSA HealthCare and Dependent Care plans as you must re-elect those each year.

FSA Elections

• You must elect the benefit plan and then enter the annual goal on the next page (Benefit Details) in the Wizard.

Supplemental Life Insurance Coverage Amounts• If you enroll in or modify your current Supplemental Life Insurance plan(s) you

should check your coverage amounts to make sure they meet your needs as well as make any updates to your beneficiaries.

• You must elect the benefit plan(s) and then enter the insurance coverage amount, dependents covered and beneficiary elections on the next page (Benefit Details) in the Wizard.

Work-Life Benefits

401(k) Diversified Investments • Eligibility

• Must be age 21 or older and meet the 30 day waiting period• Participation begins on the first of the month following a 30-day waiting period• TO ENROLL: Contact Diversified Investment at 800-755-5801 or enroll online at www.divinvest.com

• Automatic Enrollment • Automatically enrolled at a 3% contribution rate

o Will automatically increase every January by 1% until 6% is reachedo Funds are invested in one of our T. Rowe Price Target Date Fundso You can opt out of the automatic enrollment through logging into www.divinvest.com

• Maximum Annual IRS 401k Contribution Limit• $17,500 • $5,500 Catch-up Contribution (Employees who will reach age 50 before the end of the calendar end year and employees

over the age of 50)

• Elective Deferral Amount (Pre-tax or Roth)• 0% - 100% of pre-tax payroll deductions, up to IRA allowable annual amount• 32 investment fund options to choose from

• Employer Match• $0.50 per $1.00, up to 6%

• Administered: Diversified Investment Advisors

Building Your Retirement Account

• The convenience and automated features offered by Salient’ s 401(k) plan make it easier for you to save -- you may hardly miss the additional savings going toward your future

• By saving your own money, you build a larger retirement account, you receive the company’s matching contribution and you save Federal, State and FICA taxes

WageWorks Commuter Benefits• Pay for your commuting expenses with pre-tax contributions• There’s no annual enrollment period, so you can enroll anytime!

• Change your contribution to your transit and/or parking account(s) on a monthly basis.

• Unlike other pre-tax programs, no need to worry about spending your account balance by the end of the year.

• No worries about forfeitures! Any leftover dollars are automatically rolled over into the next plan year for your use.

• Qualified Commuting Expenses – tax free!• Transit and vanpool expenses up to $125 per month ($1,500 per year)

and• Qualified parking expenses up to $240 per month ($2,880 per year)

CIGNA Employee Assistance Program (EAP)- Core BenefitProvided by Salient at no additional cost to youCIGNA EAP program is designed to help you find solutions for everyday challenges of work and home, as well as for more serious issues involving your emotional and physical well-being

• Personal Relationship Management • Child/Eldercare Referrals

• Financial Planning Management • Stress Management

• Career Management/Development • Online Health Tools

• Legal Consultation with Licensed Attorneys

To take advantage of this benefit, call 1.877.622.4327 or Log on to www.cignabehavioral.com and enter the Employer ID: Salient

Wellness Pays!• Salient is committed to providing comprehensive, affordable benefits and

helping sustain and improve the overall health and well-being or you and your family. Salient Wellness is designed to fit into your everyday schedule and lifestyle. www.salientfed.limeade.com

Level-Points

  Tasks/Challenges Awards Per Individual (Employee or Spouse/Partner)

Level 1 - 1500 Points

  1. Complete the Health Risk Assessment 2.Annual Physical – Health Wellness Slice

•HSA/HRA Contribution: $187.50

•Non-CIGNA Participants: $25 AMEX Gift Card or donate the $25 to charity

Level 2-

2500 Points

  1. Satisfy goals from Level 12. Selection from Health Wellness Slice3. At least one additional participation in other slices

•CIGNA Participants and Non-CIGNA Participants: $25 AMEX Gift or donate the $25 to charity

Level 3-

3500 Points

  1. Satisfy goals from Level 1 and Level 2 2. Selection from Health Wellness Slice3. At least one additional participation in other slices

•CIGNA Participants and Non-CIGNA Participants: $25 AMEX Gift or donate the $25 to charity

 

Motivano Discounts• Effective: January 1, 2013

• Motivano offers Salient employees access to exclusive discounts from thousands of top brands.

• Apparel (e.g. Aeropostale, Banana Republic, Eddie Bauer, DSW, etc.)

• Beauty & Fragrance (e.g. Sephora, Elizabeth Arden, Walgreens, etc.)

• Computers & Electronics (e.g. Dell, Apple, TurboTax, Sony, etc.)

• Health & Wellness (e.g. Camping World, Gold’s Gym, GNC, WeightWatchers, etc.)

• Automotive (e.g. Advance Auto Parts, Avis Rental Cars, Liberty Mutual, etc.)

• Home, Garden, Pets (e.g. Pet Insurance, Home Insurance, Brookstone, Ace Hardware, etc.)

• New discounts are added daily.

• Allows you to save on everyday purchases.

• Also offers live customer care support.

• For more information please visit http://www.salientfed.com/benefits-2/

Employee Leisure Discount ProgramsTickets-at-Work Discounts

• Employees can take advantage of discounts and special offers to popular theme parks and entertainment attractions nationwide. Discounts are available for Walt Disney World Resort, Universal Studios, SeaWorld, Six Flags, Cirque du Soleil, Las Vegas and New York City performances, movie tickets and much more!

• Company Code: Salient

Coming Soon in 2013!

Proudly introducing our new Benefits Partner

• Early in 2013, Salient will introduce its new Voluntary Benefits program

• Supplemental Term Life Insurance: MetLife

• Supplemental Accidental Death & Dismemberment Insurance: MetLife

• Critical Illness Insurance: Unum

• Accident Insurance: Unum

*Pet, Home and Auto Insurance may be purchased at a discounted rate via Motivano

Support for Open Enrollment• Insurance Provider Support:

• Detailed questions regarding type of coverage or level of coverage may be best directed to the insurance provider

• Refer to Insurer Contact information chart

• Salient Human Resources Support:

• Questions on how to enroll online

• Open Enrollment Hotline Number: 800-823-7290

• 7:00 A.M. EST to 7:00 P.M. PST

• E-mail: openenrollment@salientfed.com

• NuView Support: nuviewsupport@salientfed.com

Get EngagedSubject Date Time Webinar LinkOE Presentation 11/05/2012 1 – 2 p.m. EST https://meetlync.com/salientfed1/dee.bailey3413M919

OE Presentation 11/07/2012 1 – 2 p.m. EST https://meetlync.com/salientfed1/dee.baileyMPSGC5ZW

OE Presentation 11/7/2012 8 – 9 p.m. EST https://meetlync.com/salientfed1/dee.bailey7RCZ0DSV

OE Presentation 11/9/2012 1 – 2 p.m. EST https://meetlync.com/salientfed1/dee.bailey69771G5V

Cigna Town Hall Meeting

11/16/2012 1:30 – 2:30 p.m. EST

https://meetlync.com/salientfed1/dee.bailey73S7GJM9

Cigna: Are You Leaving Money on the Table

11/20/2012 1:30 – 2:30 p.m. EST

https://meetlync.com/salientfed1/dee.baileyG66N7K1Y

Instruction for calling into sessions: Dial 1-866-866-2244; Participant Code 7186308#

Slides will be available to download at least 24 hours prior to the presentation – http://www.salientfed.com/benefits-2

Bottom Line

Must Do:

• Read your Open Enrollment materials thoroughly

• If you want a Healthcare or Dependent Flexible Spending Account, you must make your election during Open Enrollment

Should Do:

• Review your medical and Rx expenses and determine if you need to change your HSA contribution

• Review covered dependents and update enrollment records

Vendor Contact InformationInsurance Provider Customer

ServiceWeb Address

Medical – CIGNA Healthcare 800-401-4041 www.mycignaplans.com

Rx – Express Scripts/Medco 800-711-0917 www.express-scripts.com

Dental – United Concordia (UCCI) 800-332-0366 www.ucci.com

Vision – VSP 800-877-7195 www.vsp.com

Tricare Supplement – ASI Corporation (administrator)

800-950-0105 www.asicorptricaresupp.com

FSA Accounts – WageWorks 800-950-01015 www.wageworks.com

401(k) – Diversified Investment Advisors

800-755-5801 www.divinvest.com

FINAL QUESTIONS?