BP short-term disability (STD) plan

Transcription

1 BP short-term disability (STD) plan IMS#65525

2 Table of Contents BP Short-Term Disability (STD) Plan 1 Eligibility and participation 2 How the plan works 5 Extended work-related STD benefits 8 Lifetime maximum 9 Holiday and vacation pay 10 State-mandated disability programs 11 Seattle-mandated use of STD benefits to care for an ill family member or for other purposes 12 State-mandated use of STD benefits to care for an ill family member 13 When benefits end 14 Tax considerations 15 Offsetting benefits 16 Eligible/ineligible expenses 17 Leaving BP 18 Administrative information 19

3 BP Short-Term Disability (STD) Plan BP's Short-Term Disability (STD) Plan provides income protection if you are ill or injured and unable to work Through BP s Short-Term Disability (STD) Plan, the company offers you the security of continuing income on a short-term basis if you are ill or injured and are unable to work. STD benefits are generally available for up to 26 weeks a year, beginning on the first regularly scheduled workday you are unable to work. If your injury is work related, you may be eligible to receive extended STD benefits if you qualify. BP administers the STD Plan and pays the full cost of STD coverage. In some instances, individual business units or locations may have developed policies, practices and/or procedures differing from, or in addition to, the STD plan described here and in those situations the individual business unit's or location's policies, practices and/or procedures will govern. BP reserves the right to interpret the provisions of its policies and plans and such interpretation will be final and binding. Notwithstanding anything contained herein to the contrary, this plan is not intended to constitute an express or implied promise or contract between BP and an employee. Also, each employee is an "at-will" employee. Just as any at-will employee may terminate his/her employment at any time for any reason, BP may terminate any at-will employee at any time, with or without cause and without prior notice. BP reserves the right to amend or terminate a plan at any time without advance notice. The decision to do so may be a result of changes in federal or state laws governing benefits, or any other factor. Publication date: January /Dec/17 21:11 The most up-to-date information is available online at Page 1 of 20

4 Eligibility and participation Learn about the eligibility rules governing the short-term disability plan Who is eligible You are eligible to participate in the STD Plan if you are classified as a full-time, part-time or temporary employee* of a participating employer. Participating employers are: ARCO Aluminum Inc. Atlantic Richfield Company BP America Production Company BP Amoco Chemical Company BP Corporation North America Inc. BP Exploration (Alaska) Inc. BP Lubricants USA Inc. BP Pipelines (North America) Inc. BP Products North America Inc. BP Sakhalin Inc. BP Solar and Wind Castrol Industrial North America Inc. Dome Petroleum Corp. Full-time employee: An employee assigned to a position that: Requires full-time service as determined by BP; Is established to fill regular and ordinary employment requirements; and Is expected to continue for an indefinite period of time. Part-time employee: An employee assigned to a position that is: Regular and ordinary in nature; Expected to continue for an indefinite period of time; and One in which the employee works a schedule that is less than that of a full-time employee but is at least 20 hours a week. Temporary employee: An employee assigned to a position that: Requires full-time or part-time (not occasional) service as determined by BP; Requires a regular schedule of hours; and Will continue for a specified period of time or until the occurrence of a specified event, such as the return to work of a regular employee or the completion of a special assignment or project. Interns and co-ops are considered occasional employees. * As required by the Seattle Paid Sick and Safe Time Ordinance (PSST), occasional employees who reside in Seattle are eligible to participate in the BP STD Plan. 31/Dec/17 21:11 The most up-to-date information is available online at Page 2 of 20

5 Who is not eligible Regardless of your employee classification, you are not eligible to participate in the BP STD Plan if you are: An occasional employee.* An employee of BP Products North America, Inc. employed in the Elite Customer Solutions Center USA (ECSC) after June 30, 2005, with the exception of an employee who was an eligible employee participating in the plan as of June 30, 2005, has continuously remained an eligible employee under the plan after June 30, 2005, and became employed by ECSC before January 1, A salaried employee of BP Products North America, Inc. below Level I hired after August 31, 2005, in support of the U.S. Convenience Operations site payroll and benefits. A member of a collective bargaining unit (union), unless your collective bargaining agreement provides that you may participate in the STD Plan. An at-site retail employee. An employee who is a participant in the BP Retirement Resource Account under the BP Retirement Accumulation Plan, even if temporarily assigned (for not more than 12 months) to a position in support of U.S. Convenience Retail operations for which the employee would otherwise be eligible under this plan. Not classified as an employee on a participating employer s payroll, even if reclassified as a common-law employee by any third party. Occasional employee: An employee who works: An irregular schedule of hours that may include periods of full-time work, part-time work, and work that is less than 20 hours a week and that is expected to continue for either a definite or an indefinite period of time. The key with this type of occasional employee is that the work schedule is irregular or infrequent in nature; or A regular schedule that is less than 20 hours a week and that is expected to continue for either a definite or an indefinite period of time. * As required by the Seattle Paid Sick and Safe Time Ordinance (PSST), occasional employees who reside in Seattle are eligible to participate in the BP STD Plan. An employee s classification in BP s payroll records controls eligibility regardless of whether the individual is later reclassified. An employee s classification is determined at the time of hire. If later changed, the new classification will only apply prospectively, regardless of the actual schedules or hours worked under the initial classification. How to enroll You do not have to enroll for coverage. As an eligible employee, you are automatically covered. Paying for coverage BP pays the full cost of your STD coverage. When coverage begins If you are a temporary employee, coverage begins after six months of continuous employment. You must be actively at work for coverage to begin. For all other eligible employees, you are automatically covered on your date of hire or the date you become eligible for the plan if you are actively at work on that day. Otherwise, coverage begins on the first day you are actively at work. 31/Dec/17 21:11 The most up-to-date information is available online at Page 3 of 20

6 When coverage ends Your STD coverage ends as of the earliest of the following events: You have received the maximum STD Plan benefits. You are no longer injured or ill and unable to work. You fail to provide required medical documentation within the required time period. You fail to return to work after being offered a light-duty assignment that meets your medical restrictions. You fail to obtain and follow medical advice or treatment that is recommended by a competent medical authority. You fail to keep all scheduled appointments with company-approved doctors, including a return-to-work physical. You begin a leave of absence. Your BP employment ends. You start receiving LTD benefits in connection with your disability. You cease to be in an eligible employee class. There are no continuation or conversion provisions for STD coverage. 31/Dec/17 21:11 The most up-to-date information is available online at Page 4 of 20

7 How the plan works Important information about how the short-term disability plan works Short-Term Disability (STD) pays you a percentage of your base pay if you are injured or ill and are unable to work. The benefit you receive depends on: Your base pay. Your years of credited service with BP. Whether your illness or injury is work related. Short-Term Disability (STD) benefits begin on the first day you are unable to work due to an illness or injury, and may continue for up to 26 weeks. Short-Term Disability (STD) benefits are paid in your regular paycheck. If there is a question whether your illness or injury is work related, you will receive STD benefits according to the non-work-related schedule. If it is later determined that your illness or injury is work related, you will receive work-related STD benefits reduced by the amount of nonwork-related STD benefits you have already received, retroactive to the beginning of your STD benefit payments. The same illness or injury cannot be both work related and non-work related. If your illness or injury is work related For work-related incidents resulting in an illness or injury, you receive STD benefits equal to 100% of your base pay for up to 26 weeks. 31/Dec/17 21:11 The most up-to-date information is available online at Page 5 of 20

8 If your illness or injury is non-work related For non-work-related illnesses or injuries, STD benefits equal a percentage of your base pay based on your years of credited service*. The maximum total benefit period is 26 weeks per year. Here s the schedule for non-work-related short-term disability (STD) benefits:** Years of credited service* Weeks of STD benefits paid at 100% of base pay Weeks of STD benefits paid at 50% of base pay Less than At least 6 but less than but less than but less than but less than but less than but less than but less than but less than but less than or more 22 4 STD benefits for maternity will be for a minimum period of 8 weeks, up to 10 weeks, based on need. If complications develop, the benefits could extend to the remaining maximum period allowed. Benefits are based on a calendar year. This means you are eligible for up to 26 weeks of STD benefits on the first workday in January. If you are not actively at work, you are eligible for up to 26 weeks of STD benefits once you return to work. STD benefits are described in hours and weeks based on a traditional full-time five-day per week eight-hour per day schedule. Part-time employees are eligible for the same number of weeks as full-time employees; hours are based on the normal number of hours per week you are scheduled to work. An employee who works an alternative schedule, for example a 4/12 work schedule, may have benefits that differ but are comparable as determined by the company to those set out in this summary. Base pay is your BP salary or straight-time pay, not including overtime, bonuses or incentives. * Credited service For the Short-Term Disability (STD) Plan, vacation policy and service awards, the continuous amount of time you have been employed as a full-time, part-time, temporary or term-contract employee by BP (or Amoco, ARCO, Vastar or CH-20), from your most recent hire date. Time worked as an occasional employee is not recognized as credited service. No period of employment before your current period of employment with BP will be included as credited service unless a specific provision has been made, as in connection with the acquisition of another company. Except for interns/co-ops who return to active pay status from an educational leave of absence, credited service is not adjusted for time spent on an unpaid leave. There is no adjustment to credited service for time worked as a part-time employee. However, any adjustments to credited service dates that were made before April 1, 2000, under the previous credited service policy will remain in effect. Credited service is not the same as "vesting service" under either the BP Employee Savings Plan or the BP Retirement Accumulation Plan. ** North Slope employees BP Exploration (Alaska) Inc. North Slope employees working a one week on / one week off or a two week on / two week off work rotation have a different schedule. STD benefits are administered according to the following schedule: Years of credited service* Days Full pay hours Weeks Days Half pay hours Weeks 31/Dec/17 21:11 The most up-to-date information is available online at Page 6 of 20

9 Less than At least 1 but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than or more /Dec/17 21:11 The most up-to-date information is available online at Page 7 of 20

10 Extended work-related STD benefits If you are still unable to work at the end of 26 weeks due to a work-related illness or injury, you may be eligible for extended work-related STD benefits. This special feature is designed to ensure you continue to receive 100% of pre-disability base pay, if you qualify. You are eligible to receive extended work-related benefits if: You are a full-time or part-time employee. Your illness or injury occurred as part of a work-related accident. You are receiving Long-Term Disability Plan benefits, but the total of the payments from all sources (including LTD benefits, worker s compensation and Social Security) do not equal 100% of your pre-disability base pay. If you meet eligibility requirements, your LTD payments may be supplemented by BP. The benefit amount you receive will be the difference between your base pay at the time of illness or injury and the total of all other disability benefits. How long extended work-related STD benefits are payable Extended work-related benefits are payable for up to 26 weeks (six months) after regular work-related STD benefits have ended. However, benefits may continue for up to an additional 18 months if a workers compensation settlement has not been reached at the end of the original 26 week extended work-related STD period. Once a settlement is agreed upon, extended work-related benefits will end. At the end of the 24-month period, your BP employment ends regardless of whether a settlement has been reached. Months 1 6 of disability Months 7 30 of disability 30+ months of disability You receive regular work-related STD payments. If your workers compensation claim has not been settled with your BP employer and you have been determined to be disabled for LTD plan purposes, you receive extended workrelated STD benefits. If you continue to be disabled for LTD plan purposes, you receive Long-Term Disability benefits. Qualifying for extended work-related benefits To receive any extended work-related STD benefits, you must apply for LTD coverage within 120 days of your initial injury or illness. If you do not apply for LTD benefits or provide required documentation, you will not be eligible for extended work-related benefits and your STD benefits will end after the original six month benefit period (even if you later qualify for LTD or have unused STD benefits available). If you apply for LTD benefits and your request is denied due to the nature of your health condition, you may be eligible to receive any remaining STD benefits available. 31/Dec/17 21:11 The most up-to-date information is available online at Page 8 of 20

11 Lifetime maximum A one-time-only lifetime maximum of four additional weeks of STD benefits at 50% of base pay is available if: You have not yet qualified for Long-Term Disability (LTD) benefits. You use all 26 weeks of STD benefits. You use all of your vacation benefits. The lifetime maximum benefit is available for work-related or non-work-related illnesses or injuries. Working partial days If you are ill or injured and, due to the illness or injury, only able to work a portion of a workday, your benefits will be paid as follows: Hourly Non-Exempt Employees: You will receive regular pay for all time worked and, if eligible, STD benefits for those regularly scheduled work hours that you are unable to work. If your available STD benefits are at 50% of base pay, you will receive regular pay for all time worked and half pay for the work hours that you are unable to work. For example, if you work four hours out of an eighthour day, you will receive four hours regular pay and four hours of STD benefits at 50% of base pay, totaling six hours of full pay for the day. Exempt and Salaried Non-Exempt Employees: If the period during which you will work partial days is expected to exceed a full pay period, your employment status will be changed from exempt to non-exempt during this period and you will receive pay as described in the above "Hourly Non-Exempt" paragraph. When you are able to return to a schedule of full workdays, your prior status will be restored. If the period during which you will work partial days is expected to last less than two weeks, you will receive full pay for each day you work a partial day, even if your available STD benefits are at 50% of base pay. 31/Dec/17 21:11 The most up-to-date information is available online at Page 9 of 20

12 Holiday and vacation pay If a scheduled company holiday occurs while you are receiving STD benefits and you receive STD benefits for both regularly scheduled workdays before and after the holiday, you will receive STD benefits for the holiday instead of holiday pay. If you work or choose to schedule vacation or a personal choice holiday on either one of the regularly scheduled workdays before or after the holiday, you will receive holiday pay for the scheduled holiday. If you have unused vacation benefits that you are not able or do not elect to carry over into the new year and you are receiving STD benefits near the end of the year, your STD benefits will stop and be replaced with available vacation pay. This allows you to use your vacation benefits and reduce the number of STD days you use from your current bank. Note: This provision does not apply to California employees. 31/Dec/17 21:11 The most up-to-date information is available online at Page 10 of 20

13 State-mandated disability programs In some states (for example, New York, New Jersey and California), employees are eligible for state-mandated disability benefits and may be required to pay the cost of mandated disability coverage. In states where BP not the employee pays for the state-mandated disability benefit coverage, BP STD benefits will be reduced by any state disability benefits received where permissible by law. If you work in a state where disability insurance is mandated, the company will provide information about the applicable program and claimfiling requirements. 31/Dec/17 21:11 The most up-to-date information is available online at Page 11 of 20

14 Seattle-mandated use of STD benefits to care for an ill family member or for other purposes Per the Seattle Paid Sick and Safe Time Ordinance (PSST), up to 72 hours of your available STD benefits can be used as follows: Sick time can be used for personal illness or preventive care and care for a family member's illness or preventive care (child, grandparent, parent, parent-in-law, spouse and registered domestic partner). Safe time can be used for survivors of domestic violence, sexual assault or stalking and closure of workplace or child's school or place of care by public official to limit exposure to infectious agent, biological toxin or hazardous material. 31/Dec/17 21:11 The most up-to-date information is available online at Page 12 of 20

15 State-mandated use of STD benefits to care for an ill family member California Kin Care benefits Under California law, if you work in California, you are entitled to use half of your accrued STD benefits annually to attend to the illness of a child, parent, spouse or registered domestic partner. The use of accrued STD benefits for this purpose is referred to as Kin Care. (Kin Care may not be used to bond with a new child.) Kin Care is subject to the same provisions of the STD plan that apply to your own health conditions. Washington state benefits If you work in Washington state, you are permitted by state law to use your available STD benefits to care for a) your child with a health condition that requires treatment or supervision, or b) your spouse, parent, parent-in-law or grandparent who has a serious health condition or emergency condition. Employees in Washington state who use STD benefits for Kin Care must provide medical documentation in support of the request. Other states Laws mandating availability of employer-provided employee disability benefits to care for an ill family member also exist in other states. Contact your appropriate HR representative regarding any process requirements associated with use of these benefits. 31/Dec/17 21:11 The most up-to-date information is available online at Page 13 of 20

16 When benefits end STD benefits stop as of the earliest of the following events: You have received the maximum STD Plan benefits. You are no longer injured or ill and unable to work. You fail to provide required medical documentation within the required time period. You fail to return to work after being offered a light-duty assignment that meets your medical restrictions. You fail to obtain and follow medical advice or treatment that is recommended by a competent medical authority. You fail to keep all scheduled appointments with company-approved doctors, including a return-to-work physical. You begin a leave of absence. Your BP employment ends. You start receiving LTD benefits in connection with your disability. You cease to be in an eligible employee class. 31/Dec/17 21:11 The most up-to-date information is available online at Page 14 of 20

17 Tax considerations Because BP pays the full cost of your STD coverage, STD benefit payments are considered taxable income. Consequently, your normal authorized and required tax and other payroll deductions, including Social Security and Medicare, are withheld from your STD benefit payments. 31/Dec/17 21:11 The most up-to-date information is available online at Page 15 of 20

18 Offsetting benefits Under the STD Plan, if you receive any disability benefits from other sources, such as Social Security or a state disability plan (excluding California), your STD benefits are reduced so that your total benefit does not exceed the amount you would receive under the STD Plan alone. With respect to work-related illnesses or injuries, STD benefits will be paid in lieu of workers compensation where permitted by state law. If not permitted, workers compensation will be used to offset STD benefits. 31/Dec/17 21:11 The most up-to-date information is available online at Page 16 of 20

19 Eligible/ineligible expenses STD benefits will not be paid for any illness or injury resulting from: Working for another employer or yourself. Willful intent to hurt yourself or another person. Commission of a crime. Your intoxication or improper use of drugs (excluding any period during which you are participating in an approved rehabilitation program for substance abuse). Participation in an act of war or a riot, unless you are an innocent bystander. In addition, you will not be eligible to receive STD benefits while you are on: Vacation. A leave of absence other than a family medical leave. Suspension. Layoff. Extended work-related STD benefits You will not be eligible to receive extended work-related STD benefits if you are not approved for LTD benefits by the date your non-extended STD benefits expire. Extended work-related STD benefits will end as of the earliest date: You reach the maximum benefit allowed under the plan (24 months). You fail to provide the LTD claims administrator with any required ongoing documentation. You fail to submit to any required medical examination(s) after you have been approved for LTD benefits. You are determined not to be disabled for LTD benefit purposes. Your injury or illness has been determined not to be work related. A workers compensation settlement has been reached. Your BP employment ends. If you work in New York, New Jersey or Hawaii, you are covered by a statutory short-term disability plan insured by Cigna Group Insurance. In order to receive your statutory benefits, you must call Cigna as soon as you know you will be away from work for more than seven days in a row. BP reserves the right to terminate your STD benefits if you work in New York, New Jersey or Hawaii and do not apply for statutory benefits within 30 days. If you are ill or injured on the last workday in December and your absence carries over into a new calendar year, you will continue to be paid from the remaining prior year's 26-week allowance. You must return to active work duty before you are eligible for another 26 weeks of benefits. If you qualify for Family Medical Leave for your personal injury or illness, your leave will run concurrently with your receipt of STD benefits. 31/Dec/17 21:11 The most up-to-date information is available online at Page 17 of 20

20 Leaving BP What happens to benefits if you leave How to continue coverage You cannot continue your coverage if your BP employment ends for any reason. How to convert coverage Your coverage cannot be converted to an individual policy. 31/Dec/17 21:11 The most up-to-date information is available online at Page 18 of 20

21 Administrative information Your ERISA rights The STD Plan is not governed by the Employee Retirement Income Security Act of 1974 (ERISA). How to file a claim If you have a dispute regarding your eligibility to receive STD benefits, contact your local HR representative. No right to employment Your eligibility for or your right to benefits under BP s benefit plans is not a guarantee of continued employment. BP s employment practices are determined without regard to the benefits offered as part of your total compensation package. In addition, and subject to legal and contractual considerations, BP reserves the right to terminate your employment at any time or for any reason. Future of the plan The company reserves the right to change or end the plan at any time without advance notice. If you are disabled and receiving STD benefits when the plan ends, payments may cease. 31/Dec/17 21:11 The most up-to-date information is available online at Page 19 of 20

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