Severance Pay Plan February 2016 AGENDA Notice and Severance Pay - PowerPoint PPT Presentation

Notice and Severance Pay Plan February 2016

AGENDA Notice and Severance Pay Plan (NSPP) Other Retirement Plans • • Medical, Dental, Retiree Medical, COBRA Employee Stock Purchase Plan • • Flexible Spending Accounts Long-Term Incentive Plan • • Health Savings Accounts Vacation • • Life Insurance and Disability Coverages Health Advocate – EAP • • Savings Plan Health Advocate – Advocacy • • Supplemental Retirement Plan II Other Programs • •  Educational Assistance Supplemental Savings Plan •  Matching Gifts 2

NOTICE AND SEVERANCE • Payments on regular paydays in regular base pay amount • Payroll deductions continue (i.e., taxes, benefit deductions) Payroll direct deposit continues • • All benefits continue through Notice; medical and dental through Severance • Health Advocate services continue through Severance  Employee Assistance Program (EAP)  Advocacy 3

NOTICE AND SEVERANCE – OPTION A Notice (two months) • • Severance • Full vesting in Savings Plan • Medical and Dental continue through Severance • Enhanced Retiree Medical Eligibility Requires signed “Separation Agreement and General Release” • to receive Severance Service calculation for Severance •  Based on service through end of Notice Period  Rounds to nearest whole year: For example, 4 years + 5 months = 4 years  4

NOTICE AND SEVERANCE – OPTION A Provides two months Notice Pay plus Severance Pay up to ten • months depending on years of CRC service (includes Oxy service) Years of Service ice Not otice ice Severa erance nce Less than 4 years 2.0 months 1.0 month 4 years 2.0 months 1.5 months 5 years 2.0 months 2.0 months 6 years 2.0 months 2.5 months … … … 20 or more 2.0 months 10.0 months 5

NOTICE AND SEVERANCE – OPTION B Notice only (two months) • • No Severance • Full vesting in Savings Plan • Participation in all benefit plans and programs ceases at end of Notice • Regular Retiree Medical Eligibility Age 55 with 10 years of service  6

MEDICAL AND DENTAL COVERAGE – OPTION A ONLY • During Severance Payments  If you or your covered dependent(s) will not be eligible for Medicare at the end of Severance payments  Participation in medical and dental plans continues at employee rates on an after-tax basis  May change from HMO to Aetna plan if relocate out of service area 7

MEDICAL AND DENTAL COVERAGE – OPTION A ONLY During Severance Payments •  If prior to the end of Severance, you or a dependent will be eligible for Medicare and you will not be eligible for retiree medical and dental coverage  Participation in medical and dental plans continues at employee rates on an after-tax basis  May change from HMO to Aetna plan if relocate out of service area 8

MEDICAL AND DENTAL COVERAGE – OPTION A ONLY • During Severance Payments If prior to the end of Severance, you or a dependent will be eligible for  Medicare and you will be eligible for retiree medical and dental coverage  Participation in the dental plan at employee rates continues on an after-tax basis and continues to be deducted from NSPP payments  Medical payroll deductions cease at the end of Notice  Continued medical coverage will be under the CRC Retiree Medical Plan immediately following Notice  Monthly contributions for retiree medical coverage will be sent to PayFlex (CRC’s billing administrator)  You and/or your Medicare-eligible dependent(s) should enroll in Medicare Part B, to be immediately effective following Notice (or attainment of Medicare eligibility, if later) 9

RETIREE MEDICAL AND DENTAL ELIGIBILITY – OPTION A – ENHANCED ELIGIBILITY • Enhanced eligibility 30 or more years of service  Age 50 or older with at least 5 years of CRC service, with combined age and  service = 65+  Example: Age 51 years, 8 months Age 58 years, 5 months + Service 14 years, 6 months + Service 7 years, 6 months = 66 years, 2 months = 65 years, 11 months 10

RETIREE MEDICAL AND DENTAL ELIGIBILITY – OPTION B • Immediate enrollment (first of the month following Notice) Age 55 with 10 years service   If you waive Retiree Medical Coverage at this time, you must show proof of loss of other coverage before you may enroll for CRC Retiree Medical Coverage 11

RETIREE MEDICAL COVERAGE Two options available under the CRC Retiree Medical Plan •  Aetna Option - Plan similar to the Aetna Core medical plan option for active employees  Once eligible for Medicare, Medicare becomes your primary coverage and the CRC plan becomes secondary Kaiser Option –   Traditional Plan (same as the Kaiser plan for active employees) for non-Medicare eligible participants, and  Senior Advantage Plan (a Medicare Advantage HMO) for Medicare-eligible participants You and/or your spouse must enroll in Medicare Part A (hospital) • and Part B (medical) as soon as you become eligible for Medicare. If you do not timely enroll for Medicare Part B, Medicare will impose a lifetime financial penalty • You do not need to enroll in a Medicare Part D prescription coverage plan 12

RETIREE MEDICAL CONTRIBUTIONS • Retiree Medical Plan contributions are multiple of the Retiree Medical Base Rate based on a combination of age and service as of the last day of NSPP payments Points ts Non-Medica edicare Medicar icare e Eligible ible Eligible ible 65 – 69 4 times 2 times 70 – 74 3 times 2 times 75 – 79 2 times 2 times 80 or more 1 times 1 times 2016 Monthly thly Ret etiree iree Medical ical Base e Rates es Ret etiree ee Only Ret etiree ee + One Family ily Aetna $120 $240 $360 Kaiser $90 $180 $270 13

RETIREE DENTAL COVERAGE Aetna is the only available Retiree Dental Plan option •  Plan similar to the Aetna Dental Plan for active employees Retiree dental coverage is not subsidized, so retirees pay the full • cost of coverage 2016 Monthly thly Ret etiree iree Denta tal Rates es Retiree Only Retiree + One Family $47 $94 $141 14

MEDICAL AND DENTAL PLANS – COBRA COBRA continuation coverage available following NSPP payments •  Up to 18 months  COBRA notice mailed to home at end of NSPP payments  Charge is 102% of full cost  If you are eligible for retiree dental coverage, you may elect COBRA dental for up to 18 months prior to enrolling in retiree dental coverage 2016 Monthly thly COB OBRA RA Rates es Employee Only Employee + One Family Aetna Core $618.12 $1,236.24 $1,854.36 Aetna High Deductible $519.18 $1,038.36 $1,557.54 Kaiser $439.88 $879.76 $1,407.61 United Healthcare $574.75 $1,149.47 $1,850.69 Aetna Dental $39.78 $79.56 $138.72 15

FLEXIBLE SPENDING ACCOUNTS Elected 2016 contributions continue through Notice • • Expenses incurred during the period contributions are made may be submitted for reimbursement • Reimbursement rules:  Health Care – as incurred through end of Notice, up to full election amount  Dependent Care – as incurred through end of Notice, up to balance in account • After Notice, Health Care FSA election may continue (after-tax) through COBRA • Ultimate submission deadline for 2016 spending accounts is March 31, 2017 16

HEALTH SAVINGS ACCOUNT Payroll deduction of HSA contributions will cease at end of • Notice • You may continue to make direct contributions to your HSA on an after-tax basis, as long as you are enrolled in a high deductible health plan • You will be responsible for the monthly administration fee beginning after Notice, currently $4.00/month • Your account is eligible to be moved to other banking institutions that offer HSA accounts 17

LIFE INSURANCE PLANS Basic Life coverage continues through the end of Notice •  Conversion to individual policy available – Contact Prudential within 31 days after coverage ends at 800-562-9874 • Occupational Accidental Death & Dismemberment continues through end of Notice Accidental Death & Dismemberment continues through end of • Notice  Coverage may be cancelled or reduced at any time by contacting CRCBenefits@CRC.com  Conversion to individual policy available – Contact AC Newman within 31 days after coverage ends at 877-226-8711 18

GROUP UNIVERSAL LIFE (GUL) Deductions continue through end of Notice • • Portable to individual policy • Contact Prudential at 800-562-9874, to change or arrange continuation of coverage • You may cancel your coverage at any time by contacting Prudential 19

SHORT-TERM DISABILITY (STD) AND LONG-TERM DISABILITY (LTD) • Coverage ceases at the end of Notice • Conversion to an individual policy not available 20

CRC SAVINGS PLAN Contributions and Match continue through Notice •  Applies to accrued vacation payout Vesting •  Employee and Company matching contributions – always 100% vested  Company retirement contributions – 100% vested at the end of Notice 21