2012 BMC Software U.S. Benefits Guide BENEFITS THAT FIT BMC Software U.S. Benefits Guide

Transcription

1 2012 BMC Software U.S. Beefits Guide BENEFITS THAT FIT 2012 BMC Software U.S. Beefits Guide

2 2012 BMC Software U.S. Beefits Guide Table of Cotets BMC Beefits that Fit Beefits Overview... 2 A Shared Resposibility Take Cotrol Erollig & Makig Chages Accessig Your Beefits... 4 Eligibility Chagig Your Electios If You Leave BMC Health Beefits Medical Plas Health Savigs Accout Prescriptio Drugs Detal Visio Employee Assistace Program Life, Accidet & Log-Term Care Basic Life Isurace Supplemetal Life Isurace Supplemetal AD&D Isurace Busiess Travel Accidet Global Emergecy Services Flexible Spedig Accouts Health Care FSA Limited Use FSA Depedet FSA Usig Flexible Spedig Accouts Fiacial Beefits BMC 401(k) Pla Employee Stock Purchase Pla (ESPP) Paid Time Off & Holidays

3 2012 BMC Software U.S. Beefits Guide Disability Beefits Short- & Log-Term Disability Supplemetal Log-Term Disability Workers Compesatio Family Medical Leave Act Work/Life Solutios Group Prepaid Legal Group Auto/Homeower s/property Isurace Pet Health Isurace Tuitio Reimbursemet BMC Scholarship Program Adoptio Assistace Fitess Reimbursemet Program Pla Cotact Iformatio Appedices Gettig Help With Eligibility & Claims COBRA: If You ad Your Depedets Lose Health Care Coverage Terms to Kow About This Guide

4 2012 BMC Software U.S. Beefits Guide BMC Beefits That Fit Beefits Overview Wealth accumulatio. Healthy livig. Fiacial protectio agaist large medical bills. Fiacial security for your family. Sigificat tax advatages. These are just a few of the valuable features of your employee beefits at BMC Software a sigificat part of your total compesatio. We cotiually look for ways to offer a comprehesive beefits package that represets cotemporary thikig i beefit pla desig ad at the same time provides a importat combiatio of fiacial protectio ad security to address both your short-term eeds ad your log-rage goals. BMC beefits that fit lets you build a idividual program featurig protectio ad security that best meets your idividual ad family eeds. Our programs provide support for you ad your family i three mai categories: Health ad Welless: Promote healthy lifestyles for employees ad their families, esure quality of care ad offer excellet prevetive beefits all at a competitive cost. Programs iclude medical, detal ad visio plas, flexible spedig accouts, ad welless ad health icetives. Fiacial Well-Beig: Eable ad ecourage employees ivolvemet i maagig ad securig their fiacial future. Programs iclude the 401(k) pla, life isurace, stock purchase pla, ad log-term care isurace. Work/Life Solutios: Balace the persoal eeds of employees while maitaiig ad improvig productivity ad cliet satisfactio. Beefits iclude group prepaid legal, auto/homeower s isurace, ad eve pet health isurace. 2

5 2012 BMC Software U.S. Beefits Guide A Shared Resposibility Your beefits represet a partership betwee you ad BMC: The compay offers a soud, comprehesive beefits program for you ad your family ad equips you with tools ad resources so you ca make appropriate decisios for your persoal situatio. You are resposible for uderstadig the beefits you choose ad the rules of each pla the similarities ad differeces amog your choices ad makig the best decisios to provide you ad your family with the most appropriate coverage at the most reasoable cost. Take Cotrol You have the chace to build a persoalized beefits package each year. Beefits that fit offers you: Choice. Three types of medical plas, various coverage levels for life isurace ad other persoal protectio plas. Tax advatages. The Health Savigs Accout allows you to pay for health care expeses with tax-free moey ad roll over uused moey i your accout from year to year, helpig you grow a utaxed resource for future medical expeses. The Flexible Spedig Accouts allow you to pay for health care ad depedet care expeses with tax free moey. The BMC 401(k) Pla gives you the ability to grow your wealth while shelterig your savigs ad ivestmet earigs from curret taxes. Or, you may choose through the Roth optio to pay taxes o the cotributios ow ad shelter future earigs from taxes. Gais o the sale of BMC stock purchased through the Employee Stock Purchase Pla (ESPP) may receive preferetial capital gais tax treatmet based o the legth of time you ow your shares. Flexibility. Because your beefit eeds chage from year to year, you ca choose differet beefits coverage durig aual erollmet, or eve durig the year if your family situatio chages. You ca adjust your Health Savigs Accout cotributios ad your 401(k) savigs rate ad ivestmet choices at aytime ad your ESPP cotributios twice a year. Easy, real-time access. For health care ad other beefits, log o aytime to Your Beefits Resources website to fid detailed iformatio about beefit choices ad coverages. For the 401(k) ad ESPP, log o to Fidelity Netbeefits ( to eroll, keep track of your accout balaces, ad make savigs ad ivestmet chages. 3

6 2012 BMC Software U.S. Beefits Guide Erollig & Makig Chages Accessig Your Beefits Detailed, persoalized iformatio about your BMC beefits is available from two websites: Your Beefits Resources ( health ad isurace beefits ad costs Fidelity Netbeefits ( 401(k) Pla ad Stock Purchase Pla. The Your Beefits Resources website is your oe-stop locatio for beefits iformatio. Usig Your Beefits Resources gives you two ways to make or chage your beefit electios olie at yourbeefitsresources.com/bmc or by telephoe at BMC Fidelity Netbeefits makes maagig your 401(k) savigs ad stock accouts as simple as possible. It gives you easy access to view ad maage your portfolio ad to take actio o your accouts, ad the olie tools ca help you determie your retiremet readiess. Need Help? Call BMC-4849 Eter your idetificatio ad password Select Health ad Isurace Say represetative You will be routed directly to someoe that ca help you. Represetatives are available from Moday through Friday, 8 a.m. to 9 p.m., Easter time. 4

7 2012 BMC Software U.S. Beefits Guide Eligibility You are eligible to participate i all BMC beefits if you re a active, full-time, regular employee scheduled to work at least 30 hours a week. All of your beefits begi o your first day of employmet. You receive full medical beefits with o waitig periods ad o pre-existig health coditio exclusios. Your depedets may also be erolled i BMC beefits if they meet eligibility requiremets. Eligible depedets iclude your: Lawful spouse Same- or opposite-geder domestic parter with whom you are i a log-term relatioship (at least six moths) ad your parter s legal depedet childre Childre uder the age of 26 regardless of whether they are married or a full-time studet, icludig atural or legally adopted childre, foster childre, step-childre, gradchildre i your court-ordered custody, ad ay other child who lives with you i a paret-child relatioship, or whose paret is covered as a depedet uder the pla Umarried disabled childre of ay age who deped o you for support Newly Hired Employees If you do t eroll yourself or your eligible depedets withi 31 days of your hire date, you re automatically covered by these BMC beefits: Employee-oly Aeta HSA Medical Basic Life Isurace Short-Term Disability Basic Log-Term Disability Busiess Travel Accidet Employee Assistace Program 5

8 2012 BMC Software U.S. Beefits Guide Chagig Your Electios Geerally, ay beefit choices that you make upo joiig BMC as a ew employee remai i effect for the etire caledar year. I some situatios, you ca make limited chages to your coverage durig the year. Those situatios are called qualified family status chages (life evets). You have 31 days from the date of the qualified family status chage (life evet) to make ew beefit electios for the remaider of the year. Chages are allowed oly for the beefit coverages that are cosistet with the chage. (For example, the birth of a child allows you to add your ew depedet to your health pla ad to add depedet life isurace.) The followig evets may qualify as family status chages (life evets): Makig Beefit Chages Olie 1) Go to (available aytime from ay computer with Iteret access). 2) O the mai meu uder Health ad Isurace, click Your Beefits Resources. 3) Hover over Health ad Isurace ad select TAKE ACTION Chage Coverage. 4) Select the life evet from the drop-dow meu. 5) Follow the istructios. Telephoe Access Call Your Beefits Resources by dialig BMC Represetatives are available betwee 8 a.m. ad 9 p.m. (Easter time) Moday through Friday. Marriage or divorce Formatio or dissolutio of a domestic partership Birth, adoptio or placemet for adoptio of a child Death of your spouse, domestic parter or depedet Chage i your spouse s/domestic parter s employmet Loss of other health care coverage (if you elected No coverage because other coverage was available) Your child loses eligibility as a depedet Loss of COBRA coverage A Qualified Medical Child Support Order (QMCSO) or other court order is issued You or your spouse/domestic parter goes o or returs from a upaid leave of absece Sigificat chage i coverage or cost of coverage provided to your spouse/domestic parter by his or her employer You, your spouse/domestic parter or depedet becomes eligible for Medicare or Medicaid 6

9 2012 BMC Software U.S. Beefits Guide If You Leave BMC If you leave BMC, you may be eligible to cotiue your health care coverage uder the Cosolidated Omibus Budget Recociliatio Act (COBRA). Iformatio about cotiuatio of coverage ad the coditios ad requiremets for obtaiig this coverage will be set to your home address. I additio, you ca call Your Beefits Resources at BMC-4849 to speak with a Beefits Represetative. See page 56 or go olie to Your Beefits Resources website. Life isurace, short-term ad log-term disability ad prepaid legal beefit coverage eds o your last day worked at BMC, but health isurace coverage eds o the last day of the moth i which ay of the followig occur: Your employmet status chages from full-time to part-time You termiate employmet Your depedets are o loger eligible The beefit pla is discotiued Keep Your Pla Iformed of Address Chages Be sure to keep your curret address ad your depedets addresses o file with Your Beefits Resources Beefits Ceter. It is critical that you maitai your curret address ad other cotact iformatio o Employee Direct Access (EDA) so that you receive beefits commuicatios i a timely maer. You ca access EDA through the Oracle logo lik o the BMC itraet home page ( 7

10 2012 BMC Software U.S. Beefits Guide Health Beefits Medical Plas BMC offers three distict medical pla choices: Aeta HSA (Health Savigs Accout) A high-deductible health pla with a tax-free Health Savigs Accout. This medical pla offers you a choice of medical care providers similar to a traditioal PPO pla ad provides i- ad out-of-etwork beefits. I additio, BMC makes a aual cotributio to your HSA for you to use durig the year to pay your share of health-related expeses. Uused moey i your HSA rolls over from year to year for you to use for future health expeses. Prescriptio drug coverage is provided through Medco. You pay prescriptio drug costs util you reach the pla deductible. The pla covers certai prevetive prescriptio drugs at 85%, which meas you pay oly 15% of the costs before you satisfy the pla deductible. Aeta PPO (Preferred Provider Orgaizatio) A medical pla that lets you decide where to receive care each time you eed it. If you use a provider i the PPO etwork, you pay less for health services. If you receive care from a o-etwork provider, you pay a larger portio of the cost, ad the cost itself is higher. Prescriptio drug coverage is provided through Medco. Kaiser HMO (Health Maiteace Orgaizatio) Available oly i Califoria. A maaged care medical pla that provides medical ad prescriptio drug beefits oly whe you receive care withi the HMO etwork ad whe the care is coordiated by your primary care physicia. 8

11 2012 BMC Software U.S. Beefits Guide Here is a Sapshot of the Medical Pla Choices AETNA HSA AETNA PPO KAISER HMO You Receive Care From: Ay provider you choose; i-etwork services cost you less Ay provider you choose; i-etwork services cost you less Providers i the etwork Claim Forms ad Paperwork Are Filed By: I- Network: Your doctor Out-of- Network: You I- Network: Your doctor Out-of- Network: You I-Network: Your provider Maagig Your Health You coordiate your care You coordiate your care Primary care physicia coordiates care with you Out-of-Area Participat Coverage Yes Yes Emergecies oly check with pla Your Cost Share Health Savigs Accout (HSA) Your mothly premium is lower, but you pay for all medical services (except prevetive) ad prescriptio drug costs (except 15% of certai prevetive prescriptio drugs) util you reach the deductible. After you reach the deductible, the cost is shared betwee BMC ad you. A HSA accout is automatically opeed for you. You receive employer cotributios, ad you may make your ow before-tax payroll cotributios up to the aual IRS limit. See page 19 for more iformatio. Your mothly premium is higher; you oly pay a copay for doctor s visits ad prescriptio drugs. Certai services are subject to a deductible, ad the the cost is shared betwee BMC ad you. Not eligible to participate Your mothly premium is higher; you oly pay a copay for most services. Not eligible to participate Health Care Flexible Spedig Accout (FSA) You may make before-tax cotributios to a limited use accout for detal ad visio care. After you have reached your deductible, you may also receive reimbursemet for medical claims icurred after that date. See page 33 for more iformatio. You may make before-tax cotributios to a Health Care Flexible Spedig Accout for all eligible health expeses allowed by the IRS Publicatio 502. See page 32 for more iformatio. You may make before-tax cotributios to a Health Care Flexible Spedig Accout for all eligible health expeses allowed by the IRS Publicatio 502. See page 32 for more iformatio. See details about beefits uder each pla o pages 13 through 18. 9

12 2012 BMC Software U.S. Beefits Guide Welless at BMC Whe you ad your family members take actio to get healthy ad stay healthy, you feel better, you re happier ad you ejoy a better quality of life. Takig good care of ourselves ad seekig prevetive care improves our overall well-beig. It also leads to better health outcomes. That s why BMC will ehace our focus o welless i 2012 by itroducig a ew health maagemet program. The ew program will provide you with tools ad a support system to improve or maitai your health. You will be ivited to participate i a health assessmet ad health screeigs i 2012, providig iformatio tha ca help you maage eve mior health issues before they get out of cotrol. If you get a health screeig ad complete the Well Beig Assessmet (WBA) by July 31, 2012, you will receive $25 per pay check (up to $600) to help pay for your 2013 medical coverage. If you are hired betwee May 1 ad October 15 ad complete the WBA by October 31, 2012, you will receive $12.50 per pay check (up to $300). The welless program is completely cofidetial. BMC ever has access to idividual, persoal health iformatio, such as your aswers to the WBA. 10

13 2012 BMC Software U.S. Beefits Guide Fidig a Network Provider It s easy to locate etwork providers for the Aeta HSA, the Aeta PPO ad the Kaiser HMO. You ca fid a list of participatig providers o the Aeta website ( ad o the Kaiser website ( or you ca cotact Aeta ad Kaiser directly by phoe to request a provider directory. You ca also access the applicable provider directory through the Your Beefits Resources website (www. yourbeefitsresources.com/bmc). O the mai meu uder Health ad Isurace, click Your Beefits Resources, the hover over Health ad Isurace ad select TAKE ACTION Fid A Doctor. If you are erolled i oe of the Aeta coverage optios ad you choose ot to use a etwork provider for your medical services, your out-of-pocket costs will be higher (for a compariso of i- ad out-ofetwork coverage, see the charts begiig o page 13). You may also have to file a claim form to receive reimbursemet for services withi 12 moths of the date of the service. Prescriptio drug claims through Medco must be processed by a Medco i-etwork pharmacy or through Medco s mail-order program. If you choose ot to use a Medco etwork pharmacy, your beefit will be reduced to 50% of the drug cost ad you will eed to submit a claim form for reimbursemet. If you are erolled i the Kaiser HMO coverage optio, o beefits are payable for services or prescriptio drugs provided by facilities, providers or pharmacies outside of the Kaiser etwork except i certai emergecy situatios. This icludes coverage for depedets livig outside the coverage area ad certai emergecy situatios for all covered members. Please check with Kaiser directly about this coverage. Deductible ad Out-of-Pocket Maximum Uder the Aeta medical plas, you have a deductible to meet each pla year (the Kaiser HMO has o aual deductible). The deductible is fully paid by you. Oce the pla deductible is met, the provider begis payig at the appropriate level. The Aeta PPO Pla ad the Aeta HSA Pla have separate deductibles for i-etwork ad out-of-etwork coverage. See the charts o pages for the deductible ad coisurace levels for each pla. It is importat to ote differeces i how the family deductible works uder the Aeta HSA Pla ad the Aeta PPO Pla. Sice the Aeta HSA Pla is a qualified High Deductible Health Pla (HDHP), IRS guidelies specify that if you elect coverage for oe or more family members, idividual deductibles do ot apply. You must meet the family deductible before the pla begis payig for ay covered idividual (except prevetive care ad certai prevetive prescriptio drugs). Uder the Aeta PPO, after you or a covered family member meet the deductible, the pla begis payig for ay covered idividual. However, whe meetig the family deductible, the expeses applied by each covered perso may be o greater tha their idividual deductible amout. For example, if your idividual deductible is $500 ad you have expeses of $800, oly $500 of those expeses would be applied to the family deductible. If you reach the aual deductible, BMC pays 85% of eligible i-etwork expeses, ad you pay the rest through coisurace. Oce you reach the out-of-pocket maximum, BMC pays 100% of most eligible i-etwork expeses for the rest of the year. If you are i the Aeta HSA pla ad have family coverage [employee plus spouse, employee plus child(re) or employee plus family] the idividual out-of-pocket maximum does ot apply. You will eed to satisfy the family out-of-pocket maximum before BMC pays 100% of the cost. 11

14 2012 BMC Software U.S. Beefits Guide Medicare & Your BMC Medical Beefits If you are a active employee or covered depedet ad you become eligible for Medicare, you ca choose to: Cotiue primary coverage uder the BMC plas. You ca also eroll i Medicare, but Medicare will be the secodary payer. You ca eroll i both Medicare Part A ad Part B, or eroll i Part A oly ad delay erollmet i Part B. Drop coverage uder the BMC plas ad have Medicare as your primary source of coverage. If you delay erollmet i Medicare beyod age 65 because you are covered by the BMC plas, you will be able to eroll i Medicare later (after you are o loger covered by BMC) without the usual late erollmet pealty. Typically, you will have a special erollmet period of eight moths from the time you o loger have employer-based coverage to eroll i Medicare. If you wait loger tha eight moths to eroll, you will lose your special erollmet rights ad will have to wait util the oce-a-year aual erollmet period, ad you will pay higher Medicare premiums. Additioal rules apply cocerig COBRA coverage ad Medicare. For more iformatio, please see page 56. If you are already Medicare-eligible or expect to be shortly, please cotact the Social Security Admiistratio at the Web address or phoe umber listed i the Pla Cotact Iformatio sectio of this guide. Special Rules for Medicare & Erollees i the Aeta HSA Pla Employees age 65 ad older who waived erollmet i Medicare may be eligible to cotribute to a HSA ad to receive BMC s HSA cotributios. Accordig to Iteral Reveue Service (IRS) Publicatio 969, a idividual ceases to be eligible for the HSA ad BMC s HSA cotributios startig with the moth he or she becomes eligible for ad erolls i Medicare. It is the employee s resposibility to cofirm with Social Security that they have ot erolled i ay of the Medicare plas (A, B, C, D). Participatio i a HSA while etitled to beefits uder Medicare will result i tax implicatios. Remember, if you are erolled i Medicare, you are ieligible to cotribute to a HSA ad therefore, you are ieligible to be covered uder the Aeta HSA Pla. Becomig eligible for Medicare is cosidered a life evet, ad you will be able to select aother pla optio withi 31 days of the life evet. If you have a existig HSA ad you eroll i Medicare, you ca o loger cotribute to the HSA ad you should o loger be erolled i the Aeta HSA Pla. This also applies to your spouse or domestic parter if they eroll i Medicare ad are also covered uder your Aeta HSA Pla. However, fuds ca be used for reimbursemet for services ad paymet of premiums for Medicare Part B, but they caot be used for premiums for Medicare Supplemetal plas. 12

15 2012 BMC Software U.S. Beefits Guide Aeta HSA Pla PLAN FEATURE IN-NETWORK OUT-OF-NETWORK Aual Deductible $1,500 idividual/$3,000 family $3,000 idividual/$6,000 family Aual Out-of-Pocket Maximum (icludes deductible ad copays) $3,000 idividual/ $6,000 family Lifetime Maximum Beefit Ulimited Ulimited Geeral Medical Expeses Primary & Specialist Doctor Office Visit (icludes materity care) Ipatiet Hospital Care (requires preauthorizatio) $6,000 idividual/ $12,000 family (excludes amouts above usual ad customary) 85% covered after deductible 65% covered after deductible Hospitalizatio 1 85% covered after deductible 65% covered after deductible Ipatiet Physicia ad Surgeo 85% covered after deductible 65% covered after deductible Services 1 Ipatiet Lab ad X-ray 85% covered after deductible 65% covered after deductible Materity ad Delivery Services & Newbor Nursery Services² Outpatiet Care 85% covered after deductible 65% covered after deductible Outpatiet Surgery 85% covered after deductible 65% covered after deductible Outpatiet Laboratory Services & X-ray Services Prevetive Care Aual Physical Exam & Immuizatios Well-Baby & Well-Child Exams ad Immuizatios Well-Woma Exam Other Prevetive Care & Cacer Screeigs³ 85% covered after deductible 65% covered after deductible 100% covered per exam (o deductible applies) 100% covered per exam (o deductible applies) 100% covered per exam (o deductible applies) 100% covered per exam (o deductible applies) 65% covered after deductible 65% covered after deductible 65% covered after deductible 65% covered after deductible (1) For trasplat services, the i-etwork beefit is reduced to 65% per admissio after caledar year deductible if services are ot performed at a Istitute of Excellece (IOE) facility. (2) Your ewbor is automatically covered uder the pla for the first 31 days. You must add your ewbor as a depedet o your medical isurace through Your Beefits Resources withi 31 days of birth i order for your child to have coverage after this period. (3) Other prevetive exams ad cacer screeigs may have age ad time limit restrictios. Review your medical pla details o the Your Beefits Resources website. Click o Mai Meu, the Your Beefits Resources, hover over Kowledge Ceter ad select Pla Iformatio. (Aeta HSA Pla cotiues o page 14) 13

16 2012 BMC Software U.S. Beefits Guide Aeta HSA Pla (cotiued) PLAN FEATURE IN-NETWORK OUT-OF-NETWORK Emergecy Services Hospital Emergecy Facility 85% covered after deductible 85% covered after deductible No-Emergecy Care i a Hospital Emergecy Room Urget Medical Care (at a o-hospital free stadig facility) Chiropractic Services Spial Maipulatio Short-Term Rehabilitatio Therapy 4 Outpatiet Physical, Speech, Occupatioal Therapy Metal Health, Substace Abuse Care Metal Health: Ipatiet & Outpatiet Coverage Not covered Not covered 85% covered after deductible 65% covered after deductible 85% covered after deductible ($1,500 maximum per year) 85% covered after deductible; 60-visit combied maximum per year 65% covered after deductible ($1,500 maximum per year) 65% covered after deductible; 60-visit combied maximum per year 85% covered after deductible 65% covered after deductible Rehab ad Detox: Ipatiet & Outpatiet Coverage Residetial Treatmet Facility (stays i a residetial treatmet facility for treatmet of metal disorders, alcoholism or drug abuse) Other Beefits Disease Maagemet Prescriptio Drugs Health Savigs Accout 85% covered after deductible 65% covered after deductible 85% covered after deductible 65% covered after deductible Aeta Health Coectios SM disease maagemet program offers support for over 30 commo medical coditios, icludig diabetes, cacer ad pregacy. Prescriptio Drugs are covered through Medco ad ot through Aeta. Please see page 22 for more iformatio. You will have a Health Savigs Accout opeed for you through UMB Bak. BMC deposits employer cotributios, ad you may choose to deposit your ow cotributios ito this accout. Please see pages 19 through 21 for more iformatio. (4) Additioal pla authorizatio review required after the first 25 visits. 14

17 2012 BMC Software U.S. Beefits Guide Aeta PPO Pla PLAN FEATURE IN-NETWORK OUT-OF-NETWORK Aual Deductible $500 idividual/$1,000 family $1,500 idividual/$3,000 family Aual Out-of-Pocket Maximum (icludes deductible ad office visit copays oly) $2,000 idividual/ $4,000 family $6,000 idividual/ $12,000 family (excludes amouts above usual ad customary) Lifetime Maximum Beefit Ulimited Ulimited Geeral Medical Expeses Primary Doctor Office Visit $25 copay 65% covered after deductible Specialist Office Visit $40 copay 65% covered after deductible Ipatiet Hospital Care (requires preauthorizatio) Hospitalizatio 1 85% covered after deductible 65% covered after deductible Ipatiet Physicia ad Surgeo 85% covered after deductible 65% covered after deductible Services 1 Ipatiet Lab ad X-ray 85% covered after deductible 65% covered after deductible Outpatiet Care Outpatiet Surgery 85% covered after deductible; if performed as a part of a office visit ad billed by a physicia applicable copay applies 65% covered after deductible Outpatiet Laboratory Services & X-ray Chiropractic Services Spial Maipulatio 85% covered after deductible; if performed as part of a office visit ad billed by a physicia applicable copay applies $40 copay ($1,500 maximum per year) 65% covered after deductible 65% covered after deductible ($1,500 maximum per year) Prevetive Care Aual Physical Exam & Immuizatios Well-Baby & Well-Child Exams & Immuizatios 100% covered 65% covered after deductible 100% covered 65% covered after deductible Well-Woma Exam 100% covered 65% covered after deductible Other Prevetive Care & Cacer Screeigs² 100% covered 65% covered after deductible (1) For trasplat services, the i-etwork beefit is reduced to 65% per admissio after caledar year deductible if services are ot performed at a Istitute of Excellece (IOE) facility. (2) Other prevetive exams ad cacer screeigs may have age ad time limit restrictios. Review your medical pla details o the Your Beefits Resources website. Click o Mai Meu, the Your Beefits Resources, hover over Kowledge Ceter ad select Pla Iformatio. (Aeta PPO Pla cotiues o page 16) 15

18 2012 BMC Software U.S. Beefits Guide Aeta PPO Pla (cotiued) PLAN FEATURE IN-NETWORK OUT-OF-NETWORK Materity Care³ Office Visit: Preatal/Postatal I-Hospital Delivery & Newbor Nursery Services $25 copay, iitial visit oly 65% covered after deductible 85% covered after deductible 65% covered after deductible Short-Term Rehabilitatio Therapy 4 Outpatiet Physical, Speech, Occupatioal Therapy Emergecy Services 85% covered after deductible; 60-visit combied maximum per year 65% covered after deductible; 60-visit combied maximum per year Hospital Emergecy Facility No-Emergecy Care i a Hospital Emergecy Room 85% covered after deductible ad after $100 copay Not covered 85% covered after deductible ad after $100 copay Not covered Urget Medical Care (at a o-hospital free stadig facility) No-Urget Use of Urget Care Provider (at a o-hospital free stadig facility) 85% covered after $40 copay 65% covered after deductible 85% covered after deductible 65% covered after deductible Metal Health, Substace Abuse Care Metal Health/Rehab & Detox Outpatiet Coverage Metal Health/Rehab & Detox Ipatiet Coverage $40 copay 65% covered after deductible 85% covered after deductible 65% covered after deductible Residetial Treatmet Facility (stays i a residetial treatmet facility for treatmet of metal disorders, alcoholism or drug abuse) 85% covered after deductible 65% covered after deductible Other Beefits Disease Maagemet Prescriptio Drugs Aeta Health Coectios SM disease maagemet program offers support for over 30 commo medical coditios, icludig diabetes, cacer ad pregacy. Prescriptio Drugs are covered through Medco ad ot through Aeta. Please see page 22 for more iformatio. (3) Your ewbor is automatically covered uder the pla for the first 31 days. You must add your ewbor as a depedet o your medical isurace through Your Beefits Resources withi 31 days of birth i order for your child to have coverage after this period. (4) Additioal pla authorizatio review required after the first 25 visits. 16

19 2012 BMC Software U.S. Beefits Guide Kaiser HMO (Norther ad Souther Califoria) 1 PLAN FEATURE Aual Deductible IN-NETWORK $0 idividual/$0 family Aual Out-of-Pocket Maximum Lifetime Maximum Beefit Geeral Medical Expeses Primary & Specialist Doctor Office Visit $1,500 idividual/$3,000 family Ulimited $20 copay Ipatiet Hospital Care (requires preauthorizatio) Hospitalizatio 100% covered Ipatiet Physicia ad Surgeo Services Ipatiet Lab ad X-ray Materity ad Delivery Services & Newbor Nursery Services² Outpatiet Care Outpatiet Surgery Outpatiet X-ray & Laboratory Services Emergecy Services Emergecy Room Urget Care Cliic Ambulace Services Prevetive Care Aual Physical Exam & Immuizatios Well-Baby & Well-Child Exams & Immuizatios Well-Woma Exam Other Prevetive Care 100% covered 100% covered 100% covered $20 copay 100% covered $50 copay if ot admitted to hospital/$0 if admitted directly to hospital $20 copay $50 per trip 100% covered 100% covered 100% covered 100% covered (1) Review your medical pla details o the Your Beefits Resources website. Go to Your Beefits Resources, click o Mai Meu, the Your Beefits Resources, hover over Kowledge Ceter ad select Pla Iformatio. (2) Your ewbor is automatically covered uder the pla for the first 31 days. You must add your ewbor as a depedet o your medical isurace through Your Beefits Resources withi 31 days of birth i order for your child to have coverage after this period. (Kaiser HMO cotiues o page 18) 17

20 2012 BMC Software U.S. Beefits Guide Kaiser HMO (Norther ad Souther Califoria) (cotiued) PLAN FEATURE Metal Health, Substace Abuse Care Metal Health: Outpatiet Coverage IN-NETWORK $10 copay for group visit; $20 copay for idividual visit Metal Health: Ipatiet Coverage Detox Rehab: Outpatiet Coverage Detox Rehab: Ipatiet Coverage Other Beefits Durable Medical Equipmet Home Health Care Skilled Nursig Facility Chiropractic Services Covered Ifertility Treatmet Prescriptio Drugs 100% covered $5 copay for group visit; $20 copay for idividual visit 100% covered 20% coisurace 100% covered (up to 100 visits per caledar year) 100% covered (up to 100 days per beefit period) $10 copay (up to 30 office visits per caledar year) plus a $50 allowace per caledar year for chiropractic appliaces 50% coisurace Prescriptio drug coverage is provided through Kaiser. See page 22 for details. 18

21 2012 BMC Software U.S. Beefits Guide Health Savigs Accout The Aeta HSA medical pla offers some uique features ot available with the other medical plas. Whe you eroll i the Aeta HSA Pla, you receive a BMC cotributio that s based o who you cover ad your base salary. IF YOUR BASE SALARY IS: AND YOU CHOOSE: Employee-Oly Coverage Other Coverage Levels $75,000 or less BMC s Cotributio for 2012 is: $750 $1500 More tha $75,000 $500 $1000 Please ote: You are eligible for BMC s HSA cotributio if you are actively employed by BMC o the date the compay cotributio is deposited to your HSA. (See page 20 for compay cotributio dates). You ca also make your ow before-tax cotributio ito your HSA accout through payroll deductios, or you ca make a persoal check deposit ito your HSA. The IRS limits total aual cotributios (employee ad employer) to a HSA; the limit i 2012 for employee-oly coverage is $3,100 ad $6,250 for family coverage. If you are age 55 or older, you ca make a additioal catch-up cotributio of $1,000. If you elect both payroll deductios ad make a persoal check deposit ito your HSA, ad that results i you exceedig the aual limits, BMC will ot automatically tur off your payroll deductios. You are resposible for moitorig the balace i your HSA ad cotactig Your Beefits Resources to discotiue regular payroll deductios. The moey i your accout is always yours to keep, ad it s up to you to decide whether you wat to use your HSA to cover day-to-day health care expeses, as a savigs vehicle for the future, or a combiatio of both. The moey i your HSA always belogs to you ad ca t be forfeited, eve if you leave BMC. The HSA ca be either a effective way to save for retiremet medical expeses or a meas to cover copaymets ad deductibles today. The choice is yours. 19

22 2012 BMC Software U.S. Beefits Guide Your HSA Accout Whe you eroll i the Aeta HSA Pla, a HSA accout through Your Spedig Accout ad UMB Bak will be opeed. This process occurs automatically with your erollmet i the pla. I most istaces, you will ot eed to take ay additioal actio to ope your HSA accout; you will receive a HSA welcome kit alog with your debit card whe the accout opeig process is complete. However, sometimes UMB Bak will eed additioal iformatio from you i order to ope the accout (verificatio of birth date, Social Security umber or other iformatio). If this occurs, you will receive otificatio i the mail at your home address from UMB Bak that additioal iformatio is eeded. If you do ot respod to this request withi 60 days, your HSA accout will automatically close, ad you will be ieligible to make your ow cotributios or receive compay cotributios. Oce your accout is ope, BMC will deposit half of the compay cotributio i Jauary ad half i July. Newly hired employees will receive prorated amouts. Those hired betwee Jauary 1 ad Jue 30 will receive the etire aual amout, half withi 30 days of whe they become eligible ad the other half i July. Those hired betwee July 1 ad December 1 will receive 50 percet of the aual amout withi 30 days of eligibility. You are eligible for BMC s HSA cotributio if you are actively employed by BMC o the date the compaycotributio is deposited to your HSA. Oe of the mai advatages of the Aeta HSA Pla is the opportuity to save ay uused dollars i your accout. If you do t sped all the moey i your accout durig the year, the balace rolls over ito the ext year ad is added to ay future amout you elect to cotribute. Your HSA will ear iterest at competitive moey market rates ad be credited each moth. Oce your HSA balace reaches $2,000, you ca ivest i a variety of HSA fuds. Complete iformatio about your accout, ivestmet optios, fees ad legal cosideratios ca be foud o the UMB HSA website ( For more iformatio, read IRS Publicatio 969 Health Savigs Accouts ad Other Tax Favored Health Plas. Eligible Expeses Uder Your HSA You ca use your HSA for qualified health-related expeses as allowed by the IRS. Some expeses may ot be covered by your health pla but are cosidered eligible expeses for paymet with HSA dollars. Some typical examples iclude: Medical deductibles Diagostic services ot covered by your pla Detal ad visio care ot covered uder a isurace pla Braces Log-term care premiums LASIK eye surgery Some ursig services Health care supplies Certai classes of over-the-couter drugs with a prescriptio (Your HSA Accout cotiues o page 21) 20

23 2012 BMC Software U.S. Beefits Guide Easy Access to Your HSA You will receive a Your Spedig Accout HSA debit card that allows easy access to your HSA fuds. You ca use the debit card to pay for all legitimate, permitted medical expeses uder federal law. The choice of whe ad how to use the HSA debit card or ot to use it at all ad let your HSA fuds accumulate is etirely up to you. You ca also track your accout balace, trasfer fuds to your persoal checkig accout, ad view deposit activity ad iterest earigs o the Your Spedig Accout website. If you cotribute to a Limited Use FSA, you will use this same debit card to pay out-of-pocket expeses from this accout. Your Spedig Accout Trasferrig your JPMorga Chase Health Savigs Accout to UMB Startig Jauary, 1, 2012, UMB Bak replaces JPMorga Bak as the custodia for the Health Savigs Accout BMC employees ow. If you would like to move your Health Savigs Accout from JPMorga Chase to UMB, complete a Trustee to Trustee trasfer form ad follow the istructios. If you keep your HSA with JPMorga Chase, you will be resposible for the mothly accout fees begiig March 1, For more iformatio, visit YourBeefits Resources or read IRS Publicatio

24 2012 BMC Software U.S. Beefits Guide Prescriptio Drugs Prescriptio drug coverage is a beefit that allows you ad your eligible depedets to obtai covered prescriptio drugs at egotiated prices. What you pay for prescriptios depeds o: The medical pla you choose Whether you purchase more costly brad-ame medicatios or less costly geeric equivalets Here s a Sapshot of Your Prescriptio Drug Beefits: Medco admiisters the Prescriptio Drug beefit for all employees erolled i the Aeta HSA ad Aeta PPO Plas. You will receive a separate ID card for this beefit from Medco. Certai prescriptio smokig cessatio ad weight reductio medicatios will be covered uder the Aeta HSA ad Aeta PPO Plas. Refer to Medco s drug formulary listig for more iformatio. If you eroll i the Aeta PPO, the diabetic isuli copaymet will be $20 whe obtaied at a retail pharmacy ad $50 for mail order (90-day supply). The copaymets for diabetic supplies uder the Aeta PPO ad Aeta HSA plas are $10 for retail pharmacy ad $25 for mail order. The Aeta HSA Pla covers certai prevetive prescriptio drugs like isuli ad blood pressure medicie at 85% before the pla deductible. You pay 15% coisurace for these medicies eve if you have t satisfied the aual pla deductible. However, the coisurace you pay for prevetive prescriptio drugs does ot cout toward meetig the Aeta HSA aual deductible or out-of-pocket maximum. Prescriptio drug expeses uder the Aeta HSA Pla will cout toward satisfyig your aual out-of-pocket maximum, whereas expeses uder the Aeta PPO Pla will ot cout toward your out-of-pocket maximum. If you eroll i the Kaiser HMO, prescriptios will be covered through Kaiser pharmacies oly. If you are prescribed a log-term medicatio, ask your doctor for two prescriptios: Oe for a 30-day supply that ca be filled right away at a pharmacy, ad aother for a 90-day supply that you ca submit for coveiet ad cost effective mail-order service. Retail prescriptios covered uder the Aeta HSA ad the Aeta PPO plas that are ot purchased at a Medco etwork pharmacy will cost you more. You will pay 50% of the cost if you do ot use a Medco etwork pharmacy. (Prescriptio Drugs cotiues o page 23) 22

25 2012 BMC Software U.S. Beefits Guide Here is a sapshot of your prescriptio drug beefits ad what you pay: Pharmacy Beefit Maager MEDCO 1 KAISER PERMANENTE Medical Pla Beefit Geeric AETNA HSA 2 AETNA PPO KAISER HMO Retail Mail Order Retail Mail Order Retail Mail Order I-Network: 15% coisurace after deductible 15% coisurace after deductible (90-day supply) I-Network: $4 copay $10 copay (90-day supply) I-Network: $10 copay (100-day supply) $10 copay (100-day supply) Formulary Brad I-Network: 15% coisurace after deductible 15% coisurace after deductible (90-day supply) I-Network: 20% coisurace ($30 mi/$75 max copay) 20% coisurace ($60 mi/$150 max copay) (90-day supply) I-Network: $25 copay (100-day supply) $25 copay (100-day supply) No-Formulary Brad I-Network: 15% coisurace after deductible 15% coisurace after deductible (90-day supply) I-Network: 50% coisurace ($60 mi/$150 max copay) 50% coisurace ($120 mi/$150 max copay) (90-day supply) I-Network: $25 copay (100-day supply) $25 copay (100-day supply) Specialty Drugs (Formulary) I-Network: 15% coisurace after deductible 15% coisurace after deductible (30-day supply) I-Network: 20% coisurace ($30 mi/$75 max copay) 20% coisurace ($60 mi/$150 max copay, prorated for less tha 90-day supply) Varied, refer to pla Varied, refer to pla Specialty Drugs (No-Formulary) I-Network: 15% coisurace after deductible 15% coisurace after deductible (30-day supply) I-Network: 50% coisurace ($120 mi/$150 max copay) 50% coisurace ($120 mi/$150 max copay, prorated for less tha 90-day supply) Varied, refer to pla Varied, refer to pla (1) If there is a geeric equivalet for your prescriptio ad you choose to purchase the formulary or o-formulary brad, the you will pay the formulary or o-formulary brad regular copay amout plus the differece i the cost betwee the geeric equivalet ad the formulary or o-formulary drug. This pealty will be waived for oe year if your doctor writes a letter to Medco statig that it is medically ecessary for you to use a brad ame drug. You ca also appeal prior pealties that you have paid. Call Medco at for details. (2) The Aeta HSA Pla covers certai prevetive prescriptio drugs like isuli ad blood pressure medicie at 85% before the pla deductible. You pay 15% coisurace for these medicies eve if you have t satisfied the aual pla deductible. However, the coisurace you pay for prevetive prescriptio drugs does ot cout toward meetig the Aeta HSA aual deductible or out-of-pocket maximum. For more iformatio o your prescriptio drug beefits, the drug cost category for your prescriptio (geeric, formulary, o-formulary or specialty), ad mail-order programs, please visit the Medco website ( or Kaiser s website ( 23

26 2012 BMC Software U.S. Beefits Guide Detal Whether you eed major detal services or regular prevetio with semi-aual cleaigs, the Detal PPO pla ca help you take care of your smile. The Detal PPO pla, admiistered by Aeta, is simple. You ca see ay detist, but your savigs will be greater if you use a PPO provider. Seeig PPO detists ca be more coveiet as well, sice most providers will file claims for you ad you beefit from egotiated fees, reducig your out-of-pocket expeses. If you visit a o-ppo detist, you ll pay for your services up frot, ad the submit a claim withi 12 moths of the date of service to receive reimbursemet for eligible expeses. The BMC Detal PPO pla also provides orthodotia coverage for you ad your eligible depedets. The pla reimburses 50% of usual ad customary expeses up to a lifetime maximum of $1,500 for each covered perso. If you are covered by the Aeta HSA or Aeta PPO, you will use the same ID card for both medical ad detal. If you are erolled i the Kaiser HMO pla, you ll receive a separate detal ID card. If the cost of your treatmet is expected to be more tha $300, cotact Aeta for a predetermiatio of beefits. You share the cost of your detal coverage with BMC ad make your cotributios with before-tax payroll deductios. Detal Pla Highlights Aual Deductible Aual Maximum Beefit Prevetive Care (two exams each caledar year; icludes routie exams, X-rays ad three cleaigs) Aual Fluoride Treatmet (uder age 19 oly) Basic Restorative Services (icludes filligs, extractios, root caals ad deture repairs) Major Restorative Services (icludes ilays, crows, bridges ad detures) Orthodotics (adults ad childre) $50 per perso $1,500 per perso 100%, o deductible 100%, o deductible 80% after deductible 50% after deductible 50%, o deductible - Lifetime maximum up to $1,500 per covered perso For more iformatio about the Detal PPO pla admiistered by Aeta, go to the Aeta website ( or call Aeta at

27 2012 BMC Software U.S. Beefits Guide Visio If you or ayoe i your family wears cotacts or glasses, the BMC visio care pla, admiistered by VSP (Visio Service Pla), ca help you brig thigs ito focus. Uder the pla, you ca visit ay provider. You ll receive the greatest beefit ad coveiece by usig participatig VSP providers ad ever have to file a claim. You pay for the cost of your visio coverage through before-tax payroll deductios. Usig a Participatig VSP Doctor VSP does ot require idetificatio cards to obtai services. If you choose a participatig doctor, you pay oly a $15 copaymet for examiatios ad a $15 copaymet for leses ad frames (special frames or tited leses will cost more). Based o a limited fee schedule, VSP will reimburse you for examiatios ad leses oce every 12 moths ad for frames oce every 24 moths. No claim form is eeded. Whe you call to make a appoitmet for yourself or your covered depedets, idetify yourself as a VSP member ad as a employee of BMC Software; the provide your Social Security umber. The VSP doctor will obtai the ecessary authorizatio ad iformatio about your eligibility ad coverage. To fid the VSP doctor closest to you or to check if a doctor is a VSP provider, cotact VSP at or go olie to Usig a Noparticipatig Doctor If you choose to use a oparticipatig doctor, VSP will reimburse you based o a limited fee schedule described o page 26. Whe submittig a claim to VSP from a oparticipatig doctor, use the BMC out-of-etwork VSP claim form ad file your claim withi six moths of the date of service. Claim forms are available at (Visio cotiues o page 26) 25

28 2012 BMC Software U.S. Beefits Guide Visio (cotiued) PLAN BENEFITS Visio Exam (oce per caledar year) Eyeglass Leses (oce per caledar year) Frames (every two caledar years) Necessary Cotacts² (oce per caledar year) Cotact Les Evaluatio, Fittig Fees ad Cotact Leses Elective Cotacts³ (oce per caledar year) Cotact Les Evaluatio, Fittig Fees ad Cotact Leses VSP PROVIDER BENEFITS 100% after $15 copay Up to $40 NON-VSP PROVIDER REIMBURSEMENT AMOUNTS 100% after $15 copay 1 Up to $40 (Sigle Visio) Up to $60 (Bifocal) Up to $80 (Trifocal) Up to $125 (Leticular) 100% after $15 copay (up to $150) Up to $45 100% after $15 copay Up to $210 Up to $135 Up to $105 (1) Special frames ad tited leses will cost more. (2) Necessary cotacts required after cataract surgery; to correct extreme acuity problems that caot be corrected with glasses; for certai coditios of aisometropia ad keratocous. (3) Elective cotacts for ay other reaso tha stated above ad are covered istead of leses ad frames. 26

29 2012 BMC Software U.S. Beefits Guide Employee Assistace Program (EAP) At some time durig the course of your employmet, you or a family member may experiece a persoal difficulty. Problems arisig from illesses, day care issues, loss of a loved oe, relatioship coflicts or fiacial difficulties ca affect your life at home ad at work. Through the Employee Assistace Program (EAP), you ad your immediate family members ca receive cofidetial couselig ad referrals at o cost to you. Ay help you receive is completely cofidetial ad ot shared with BMC. The EAP is desiged to provide a assessmet of the problem ad ofte a referral to a local resource for follow-up couselig. BMC provides the first six visits with a couselor at o cost to you. After that, your visits may be covered by your medical isurace. Whe to Use the EAP Couselig is available through the EAP for persoal difficulties such as: Family or marital problems Grief over the death of a loved oe or other losses Paretig cocers Coflicts at work Emotioal difficulties such as depressio, axiety ad guilt Job stress Crisis situatios Drug ad alcohol depedece Questios about legal or fiacial cocers Questios about child or elder care How to Use the EAP If you eed assistace, you ca call ad speak to a EAP couselor. Sometimes a telephoe call is all it takes. However, if you eed additioal couselig, you ca schedule a appoitmet with a EAP couselor. BMC will pay for up to six couselig sessios each year. The EAP ca also provide referrals to other providers or commuity sources if you eed additioal assistace. I additio to traditioal couselig sessios either i perso or over the phoe, our Employee Assistace Program icludes the followig additioal beefit: Fiacial Services Oe-half hour iitial cosultatio with a selected pla fiacial couselor o up to three ew fiacial couselig topics each pla year related to credit repair, debt maagemet or debt cosolidatio. The EAP website (mylifevalues.com); (Userame: BMC, Password: EAP) also icludes various other resources ad educatioal materials o health ad welless topics, metal health, stress, substace abuse ad daily life maagemet. It also features a discout ceter where you ca take advatage of Aeta s pre-egotiated discouts o a wide variety of products ad services atiowide. 27

30 2012 BMC Software U.S. Beefits Guide Life, Accidet Isurace BMC Software provides you with a firm foudatio of icome protectio beefits. I additio, you ca supplemet your compay-provided coverage to further protect your icome should you die or become disabled. Life ad Accidetal Death ad Dismembermet (AD&D) isurace is admiistered by Liberty Mutual. Busiess Travel Accidet Isurace is admiistered by AC Newma & Co. Basic Life Isurace Beefits: Two times your aual base salary, rouded to the ext highest $1,000* Maximum Beefit: $2 millio *If you are workig at age 70, your beefit will be reduced by 35%; at age 75, it will be reduced by 50%. Uderstadig Imputed Icome The IRS cosiders the value of life isurace over $50,000 to be taxable icome. This value is referred to as imputed icome. If you have coverage over $50,000, you will see the value of such coverage reported o your aual W-2 statemet. It will also be subject to FICA taxes ad is reflected each payroll period o your paycheck stub as GTL, which stads for group term life. Accessig Livig Beefits This importat beefit is provided at o cost to you ad is desiged to help a termially ill employee receive part of his or her life isurace beefits for medical expeses ad ogoig care. Paymet of this beefit is subject to approval by Liberty Mutual ad certificatio by a doctor that your life expectacy is less tha 12 moths. I geeral, the beefit pays up to 80% of the value of your basic life isurace coverage, with a maximum of $500,000. You will receive the moey i a sigle lump-sum paymet. 28

31 2012 BMC Software U.S. Beefits Guide Supplemetal Life Isurace Depedig o your idividual eeds, you ca purchase additioal life isurace for yourself ad your family. The amouts of coverage you ca purchase are listed below: EMPLOYEE SPOUSE/DOMESTIC PARTNER Oe to five times your aual base salary (combied maximum with basic life isurace is lesser of seve times base salary or $2 millio). You ca purchase life isurace for your spouse/domestic parter i $25,000 icremets up to the lesser of your total life isurace amout or $250,000. If you do ot purchase supplemetal employee life isurace, you ca still purchase spouse/domestic parter life isurace. CHILDREN* You ca purchase life isurace for your eligible childre i the amout of $5,000, $10,000 or $15,000. Please ote: Coverage amout for ewbor childre 14 days through six moths of age is $1,000. *If you purchase life isurace for your childre, the coverage amout you select will apply to each of your eligible childre. For example, if you have a so ad a daughter ad select $10,000 as your depedet life isurace amout, both of your childre will have depedet life isurace i the amout of $10,000. Evidece of Isurability The amout of supplemetal employee ad spouse life isurace coverage elected determies whether you ad your spouse/domestic parter are required to show evidece of isurability (EOI). Evidece of Isurability is Required: AT EMPLOYMENT AT ANNUAL ENROLLMENT If coverage amouts elected are greater tha $500,000 whe combied with basic life isurace amout (employee) or greater tha $25,000 (spouse/domestic parter). For ay amouts if coverage was ot elected at time of employmet, or for ay icrease i coverage if coverage was elected at time of employmet. Need Help Filig for Beefits? For assistace filig a life isurace claim, speak with a Beefits Represetative by callig Your Beefits Resources at BMC

32 2012 BMC Software U.S. Beefits Guide Supplemetal AD&D Isurace This beefit is paid if a accidet causes a death. Beefits also are paid if a serious ijury is suffered. Such beefits are paid as follows: If, as the result of a accidet, the perso dies withi 365 days of the accidet, the beeficiary will receive AD&D beefits equal to 100% of the isurace amout i additio to life isurace beefit. If the perso ijured is i a accidet ad suffers the loss of a limb ad/or eyesight, the beeficiary will receive a portio of the full beefit amout, based o the extet of the loss, as idicated below: LOSS Both hads or both feet or both eyes, or oe had ad oe foot, or oe had ad oe eye, or oe foot ad oe eye Oe had or oe foot or oe eye BENEFIT 100% of isurace amout 50% of isurace amout A complete list of loss evets ad beefits is available olie o the Your Beefits Resources website ( click o Mai Meu, the Your Beefits Resources, the hover over Kowledge Ceter ad select Pla Iformatio. The Life ad Accidet Isurace beefits are described i the Life Isurace Certificate of Coverage. WHO YOU CAN COVER Employee Employee + Family LEVEL OF COVERAGE Oe to five times your aual base salary (maximum beefit of $500,000) 50% of employee amout for your spouse or domestic parter 15% of employee amout for each child 30

33 2012 BMC Software U.S. Beefits Guide Busiess Travel Accidet This pla provides a beefit if you are accidetally ijured while travelig o behalf of BMC Software. BMC provides this beefit at o cost to you. LOSS Life Both hads or both feet or both eyes, or oe had ad oe foot, or oe foot ad oe eye, or oe eye ad oe had, or both speech ad hearig BENEFIT Up to two times your aual base salary (maximum beefit of $1.5 millio) 100% of life isurace beefit Oe had or oe foot or oe eye; or speech or hearig 50% of life isurace beefit Thumb ad idex figer of same had 25% of life isurace beefit Global Emergecy Services Icreased busiess travel meas icreased istaces of illess or ijury while away from home. With oe phoe call, you ca get immediate emergecy travel assistace whe you travel o BMC busiess more tha 100 miles from home or to ay foreig coutry. Emergecy travel assistace is provided by Assist America. A global etwork of Assist America s emergecy medical dispatch-certified persoel are o call 24-hours-a-day, 365-days-a-year to help you with a wide rage of assistace services at o cost to you. Services iclude: Medical cosultatio ad evaluatio Emergecy message service Hospital admissio guaratee Emergecy medical evacuatio Critical care moitorig Prescriptio replacemet assistace Medically supervised trasportatio home upo discharge Trasportatio for a fried or family member to joi hospitalized patiet Care for mior childre Emergecy room trauma couselig Assistace i the retur of a vehicle Legal ad iterpreter referrals All services must be arraged ad paid for by America Assist. How To Use This Service Before you travel, be sure you have your: Assist America Global Emergecy Services wallet card with BMC referece umber BMC medical ad/or prescriptio ID card(s) Durig a medical emergecy, call 911 i the U.S. or local emergecy services, ad the call the Assist America Operatio s Ceter as soo as possible (oce your situatio is o loger life threateig). Oce you are uder the care of a physicia or medical facility, your BMC medical coverage applies. 31

34 2012 BMC Software U.S. Beefits Guide Flexible Spedig Accouts You ca set aside before-tax moey throughout the year i a flexible spedig accout (FSA) to pay for aticipated health care ad/or depedet care expeses. You ll ot oly build a balace of fuds to pay expected medical, detal, visio ad depedet care bills icurred durig that caledar year, but you ll also lower your taxes. There are two types of flexible spedig accouts associated with health care expeses a regular Health Care Spedig Accout ad a Limited Use Flexible Spedig Accout. If you select the Aeta PPO, the Kaiser HMO or opt out of BMC medical coverage, you are eligible to cotribute to the Health Care Flexible Spedig Accout. If you select the Aeta HSA Pla, you are eligible for the Limited Use FSA. The Limited FSA ca be used to pay eligible detal, visio ad other omedical expeses. Health Care FSA If you eroll i the Aeta PPO Pla or the Kaiser HMO Pla, you ca make before-tax cotributios to the Health Care FSA which ca be used to pay for eligible medical, detal, prescriptio drug ad visio care expeses, health care supplies ad certai over the-couter (OTC) medicatios (oly with a prescriptio). Such expeses may iclude: Copaymets Deductibles Prescriptio medicatios Isuli ad diabetic supplies Charges for services or supplies that are ot covered (or ot fully paid) by your health pla, such as braces, hospital bills ad speech therapy You ca cotribute from $240 to $10,000 each year to the Health Care FSA. Your deductio per pay period is based o 24 pay periods for the year. If you joi BMC durig the year, deductios for your elected cotributio amout are divided evely amog the pay periods remaiig i the year at the time you eroll. Eligibility for Health Care FSA reimbursemets is limited to you ad your legal spouse ad childre. Federal law prohibits the use of FSA fuds for reimbursemet of expeses for your domestic parter ad your parter s childre. 32

35 2012 BMC Software U.S. Beefits Guide Limited Use FSA This FSA is available oly if you eroll i the Aeta HSA medical pla. You ca cotribute from $240 to $2,500 each year to the Limited FSA. A Limited Use FSA gives you the optio to use before-tax moey to pay for omedical expeses without tappig ito your HSA fuds, which you may be accumulatig for retiremet. There are two ways to use the Limited Use FSA. 1) Before you meet your Aeta HSA medical pla deductible, your Limited Use FSA fuds are available oly for certai omedical expeses, icludig: Detal care ad orthodotia, such as filligs, X-rays, braces, caps ad mouth guards (ot oral surgery) Visio care, icludig eyeglasses, cotact leses, solutios ad supplies, ad LASIK eye surgery 2) After you meet your deductible, your Limited Use FSA fuds are available for all FSA-qualified health care expeses icurred after the date you met your deductible, icludig coisurace ad copaymets just like a Health Care FSA. Fid more iformatio o the Limited Use FSA o the Beefits Resources website ( Select Other Beefits, the Your Spedig Accout. The Limited FSA is available oly if you eroll i the Aeta HSA medical pla. 33

36 2012 BMC Software U.S. Beefits Guide Depedet Care FSA Your before-tax cotributios to the Depedet Care FSA ca help you pay for depedet daycare expeses that allow you (or you ad your spouse or domestic parter) to work. However, uder Iteral Reveue Code rules, reimbursemet is ot available for depedet care of a child of your domestic parter. If you re married ad your spouse does ot work, you are ot eligible for this program uless your spouse is disabled or is a full-time studet. For the purposes of this pla, the IRS defies eligible depedets as: Your child(re) uder age 13 OR Other depedets (such as a spouse, paret, brother, sister or child over age 13) who sped at least eight hours i your home each day ad are icapable of self-care Depedet care expeses are for services such as professioal day care; they do ot iclude medical expeses for depedets. Geerally, you ad your spouse ca cotribute from $240 up to $5,000 aually to the Depedet Care FSA ($2,500 if you are married ad file separate tax returs). Your deductio per pay period is based o 24 pay periods for the year. If you joi BMC durig the year, deductios for your elected cotributio amout are divided evely amog the pay periods remaiig i the year at the time you eroll. Reimbursable expeses iclude: Day care expeses I-home services provided by a babysitter, ursig aid or attedat Services provided by a housekeeper or maid, if that perso is resposible for the care of a eligible depedet durig the day Services provided by a licesed day care facility for childre or adults Care provided outside your home Expeses icurred for depedet day care while the employee is o a upaid leave ad expeses for overight camp are ieligible for FSA reimbursemet. Special Note: Whe you request reimbursemet from your Depedet Care FSA ad whe you file your federal icome tax retur, you will eed to provide your caregiver s Social Security or tax idetificatio umber. 34

37 2012 BMC Software U.S. Beefits Guide Usig Your Flexible Spedig Accout Use It or Lose It It s importat that you carefully estimate your aticipated health care ad depedet care expeses so that you ca elect the most appropriate level of aual cotributios. I compliace with the Iteral Reveue Service Code, ay moey ot used by the ed of the year must be forfeited the use it or lose it cocept. Health Care FSA If you have a Health Care FSA, you ca use the moey i that accout to pay for out-of-pocket expeses. Use the Your Spedig Accout card like a debit card or file a claim. To view your balace, see the Your Spedig Accout (YSA) page o the Your Beefits Resources website (yourbeefitsresources.com/bmc). Select Other Beefits, the Your Spedig Accout. Expeses paid usig the Your Spedig Accout debit card do ot require you to submit a paper claim. Substatiatio of your expese(s) may be required at ay time, so keep all receipts ad/or Explaatio of Beefit forms. YSA will otify you if itemized receipts or additioal documetatio is required to validate your purchase. You ll have 90 days to provide the requested documetatio. Special Note To get help estimatig how much to cotribute, use the Flexible Spedig Accout Estimator o Your Beefits Resources. Check your spedig accout or Health Savigs Accout balaces olie o Your Beefits Resources. Select Other Beefits, the Your Spedig Accout. Limited Use FSA/Health Savigs Accout You will use a sigle debit card to access fuds from both your Health Savigs Accout ad from your Limited Use FSA, if you cotribute to this accout. Expeses paid from your Limited Use FSA may require substatiatio. Expeses paid from the Health Savigs Accout do ot require substatiatio. View your Health Savigs Accout or Limited FSA balace o the Your Beefits Resources website ( Select Other Beefits, the Your Spedig Accout. If you have a Health Savigs Accout ad cotribute to a Limited Use Flexible Spedig Accout, here s how the YSA card works to pay for eligible expeses: Whe you use the YSA card to pay for Detal ad visio care expeses* Medical services ad prescriptio drugs Fuds are take from your Limited Use Flexible Spedig Accout Health Savigs Accout * You ca begi payig for eligible medical services ad prescriptio drugs with your Limited Use FSA oce you reach the Aeta HSA deductible for the year ad call BMC-4849 ad speak with a represetative of Your Spedig Accout, the ew admiistrator for Flexible Spedig Accouts ad the Health Savigs Accout. Direct Deposit Whe you file a claim, you ca choose to have your reimbursemet set to you i a check or directly deposited ito your checkig or savigs accout. Complete the olie direct deposit authorizatio form, available o the Your Beefits Resources website ( Select Other Beefits, the Your Spedig Accout. 35

38 2012 BMC Software U.S. Beefits Guide Thigs To Kow About Flexible Spedig Accouts Whe makig your cotributio decisio, take the time to carefully evaluate your persoal situatio, cosult with your tax advisor ad cosider the followig facts: Your Health Care FSA ad your Depedet Care FSA must be maitaied separately; you caot trasfer moey betwee the two accouts. You caot claim a tax credit or deductio for ay expeses reimbursed from your accouts. However, you ca claim a tax credit or deductio for ay ureimbursed expeses, subject to IRS regulatios. Cosult with your tax advisor to determie which optio is more beeficial to you. The list of services eligible for reimbursemet ca chage from time to time. For complete details, see IRS Publicatio 502 (health care) or 503 (depedet care). See more iformatio ad a complete list of qualified health care expeses o Your Beefits Resources ( Select Other Beefits, the Your Spedig Accout. Oce you eroll i the Health Care FSA or Depedet Care FSA, you caot chage your cotributio level util the ext aual erollmet period, uless you have a qualifyig chage i family status (life evet) that complies with IRS requiremets (See page 6). If you leave the compay, you ca cotiue to file claims agaist your Health Care FSA balace for expeses icurred before your employmet with the compay eded. If you make after-tax cotributios, you also may be eligible to cotiue your participatio i the Health Care FSA uder COBRA ad icur reimbursable expeses util the ed of the caledar year i which your employmet with BMC termiated. If you termiate your employmet with the compay ad do ot elect to cotiue cotributios to your Health Care FSA uder COBRA or you are ot eligible to do so uder COBRA, you must submit ay outstadig claims withi 90 days of your termiatio. If you termiate your cotributios to the Health Care FSA because of a qualified family status chage (life evet), you will be reimbursed oly for claims icurred prior to the date you stopped cotributios, ad for ay claims to be eligible for reimbursemet, they must be submitted withi 90 days of the status chage. If you eroll i oe or both accouts because of a qualified family status chage, oly expeses icurred after the erollmet date are acceptable. If you have ay questios about your participatio i a flexible spedig accout, call Your Spedig Accout at BMC Gettig Claims Help Participat Advocacy Team The Participat Advocacy service is available to help you resolve ay coflicts you may have with your medical, detal or health care/depedet care FSA claims ad carriers. Call Your Beefits Resources at BMC-4849 ad ask to speak with the Advocacy Team represetative. All calls are cofidetial. 36

39 2012 BMC Software U.S. Beefits Guide FSAs ad HSAs Compared The Flexible Spedig Accouts (FSAs) ad Health Savigs Accouts (HSAs) are a affordable way to save moey o health care. FSAs ad HSAs operate differetly. Here s how. Who ca participate What happes to uused cotributios Cotributio type Depedet Care FSA If you aticipate eligible depedet day Health Care FSA If you eroll i the PPO or HMO Limited Use FSA If you eroll i the Aeta HSA Pla Subject to the use it or lose it rule; you forfeit them at the ed of the year Before-tax cotributios Health Savigs Accout If you eroll i the Aeta HSA Pla Ay uused cotributios remai i your accout for future health care expeses. How much ca I cotribute Cotribute from $240 to $5,000 per year Cotribute from $240 to $10,000 per year Cotribute from $240 to $2,500 per year Idividual: $3,100 Family: $6,250 If you are 55 or older, you ca deposit up to a additioal $1,000. What expeses are eligible Whe ca I chage the cotributio amout Whe are expeses reimbursed Ay eligible depedet day care expeses as qualified by the IRS ad icurred durig the year A full rage of qualified medical expeses as qualified by the IRS ad icurred durig the caledar year Detal ad visio expeses oly (util you meet your deductible) ad a limited rage of expeses after you meet your deductible) as qualified by the IRS ad icurred durig the caledar year. The amout you cotribute caot chage durig the year uless you have a qualified status chage (life evet). All eligible expeses are reimbursed whe you file a claim. However, reimbursemets ca oly be made as fuds become available from payroll deductios. All eligible expeses are reimbursed whe you use your debit card or file a claim up to the full amout of your aual cotributio, regardless of the actual amout of moey that has bee deposited ito your accout through payroll deductios. All eligible expeses are reimbursed whe you use your debit card or file a claim up to the full amout of your aual cotributio, regardless of the actual amout of moey that has bee deposited ito your accout through payroll deductios. A full rage of qualified medical expeses as qualified by the IRS Chage cotributio amouts aytime All eligible expeses are reimbursed whe you file a claim or use your debit card. However, reimbursemets ca oly be made as fuds become available from payroll deductios or compay cotributios are deposited. 37

40 2012 BMC Software U.S. Beefits Guide Fiacial Beefits BMC 401(k) Pla Wealth accumulatio ad fiacial security durig retiremet are top log-rage objectives for most people. The BMC Software, Ic. Savigs ad Ivestmet Pla (a 401(k) pla) gives you a distict head start o reachig your fiacial goals. Whe you eroll i the pla, you elect to defer a certai percetage of your pay as a cotributio to the pla. Your cotributios may be made o a before-tax basis, aftertax basis, or through Roth 401(k) cotributios. The pla s combiatio of before-tax savigs, compay matchig cotributios ad wide rage of ivestmet alteratives makes it oe of the most attractive savigs opportuities available. You are eligible to eroll i the BMC 401(k) Pla o your date of hire. Oce your ew hire iformatio is submitted to Fidelity ad a accout is set up, you ca eroll at aytime. You will see the chage i your deductios i oe to two pay periods. To eroll i the BMC 401(k) Pla go to Fidelity NetBeefits ( or call Erollig i Your BMC 401(K) Pla Log o to or call Your Beefits Resources at BMC-4849, (optio Savigs ad Ivestmets), or Fidelity directly at to eroll, to make your catchup cotributio electio ad/or to chage ay existig electio. Allow oe week from your date of hire before callig. If you are a curret participat, the chages will take effect withi oe to two pay periods. Your Cotributios You ca cotribute betwee 1% ad 35% of your pla earigs ito a before-tax or Roth accout, up to the aual IRS dollar limit (for 2012 this limit is $17,000). I additio, you ca cotribute up to 10% of your pla earigs ito a after-tax accout. Pla earigs geerally iclude all elemets of cash compesatio (such as base salary, bouses, overtime ad commissios) ad exclude equity compesatio, allowaces, prizes, awards ad disability pay. If you are age 50 or older or will reach age 50 durig the caledar year, you ca make catch-up cotributios to your accout i additio to your regular cotributios, up to the aual IRS dollar limit (for 2012 this limit is $5,500). Please Note: The total of all cotributios to your accout caot exceed $50,000. This icludes ay before-tax, Roth, after-tax ad compay matchig cotributios made to the pla (excludig catch-up cotributios). 38

41 2012 BMC Software U.S. Beefits Guide Your Accout Your Choice The BMC 401(k) Pla allows you to make tax-advataged cotributios three differet ways to a beforetax accout, a Roth 401(k) accout or to a after-tax accout. If you are woderig which cotributio type is better for you tax-deferred savigs ow (through the before-tax cotributios), tax-free i the future (through the Roth feature) or defer taxes o earigs o after-tax moey look at the chart below. You ca go to Fidelity NetBeefits ( for more iformatio o all of these optios. You may also wat to cosult with a persoal tax advisor about the path that might be best for you. BEFORE-TAX CONTRIBUTIONS AFTER-TAX CONTRIBUTIONS ROTH CONTRIBUTIONS Tax Treatmet of Cotributios Cotributios reduce taxable icome. Cotributios are deducted after taxes ad therefore do ot reduce curret taxable icome. Cotributios are deducted after taxes ad therefore do ot reduce curret taxable icome. Tax Treatmet of Earigs Earigs grow tax-deferred util take as a distributio. Earigs grow tax-deferred util take as a distributio. Earigs grow tax-deferred util take as a distributio. Tax Treatmet of Distributios, If Not Rolled Over Early Withdrawal Pealties Distributios are fully taxable at the time of withdrawal. DistrIbutios take before age of 59½ are subject to a 10% tax pealty uless you termiate service after attaimet of age 55. Distributios of the after-tax cotributios are ot taxable; however, the earigs o the cotributios are taxable at the time of withdrawal. Earigs withdraw prior to age 59½ are subject to a 10% excise tax. Distributios are ot taxable as log as you are at least 59½ years old ad it has bee at least 5 years sice your first year of Roth 401(k) cotributios. DistrIbutios of Roth earigs take before age 59½, or with less tha 5 years from the first cotributio, are subject to at 10% tax pealty. I-Service Withdrawal I-service withdrawal optios are oly a loa or hardship withdrawal prior to age 59½. After-tax cotributios ad earigs may be take as a i-service withdrawal. I-service withdrawal optios are oly a loa or hardship withdrawal prior to age 59½. Cotributio Limit (2012) $17,000 (combied with Roth cotributios) 10% of pay (coordiates with other cotributios ad match to ot exceed $50,000 i 2012) $17,000 (combied with before-tax cotributios) Catch-Up Cotributio Limit (age 50 or older) $5,500 (combied with Roth catch-up) N/A $5,500 (combied with before-tax catch-up) 39

42 2012 BMC Software U.S. Beefits Guide Compay Cotributios BMC helps your retiremet savigs grow by matchig your before-tax or Roth 401(k) cotributios. BMC matches 100% of every dollar you cotribute, up to 5% of your eligible pay each pay period. Please Note: Compay matchig cotributios are made each pay period with your payroll cotributios. There is o compay match o after-tax or catch-up cotributios. The BMC 401(k) Deferral Calculator is available o Fidelity NetBeefits ( Click o 401(k), the Pla Iformatio. This tool ca help you determie your maximum cotributio amout ad help you maximize compay cotributios to your accout. If you pla to cotribute more tha 5% of your eligible earigs, ote that as soo as your cotributios reach the aual IRS dollar limit ($17,000 i 2012), your cotributios ad matchig cotributios will ed. I additio, whe you reach the aual IRS dollar limit o pla earigs ($250,000 i 2012), your participatio for the year will stop. Check your year-to-date cotributios by reviewig your pay stubs or by goig olie to Fidelity NetBeefits ad ruig a year-to-date statemet. You ca chage your cotributio rate at ay time. Vestig You are always 100% vested i your ow cotributios ad i ay earigs o those cotributios. You will be 100% vested i the compay matchig cotributios ad earigs whe you have reached two years of service. BMC matches 100% of every dollar you cotribute, up to 5% of your eligible pay each pay period. 40

43 2012 BMC Software U.S. Beefits Guide Loas & Withdrawals The BMC 401(k) Pla icludes a loa provisio, allowig you to borrow moey from your accout. If you are i eed of fuds that are t readily available elsewhere, you ca borrow up to 50% of your vested accout balace or $50,000, whichever is less, mius the highest outstadig loa balace durig the last 12 moths. BMC 401(k) Pla participats who take loas from the pla will be resposible for associated admiistratio fees. Uder limited circumstaces, you ca make withdrawals from the pla. You ca make withdrawals at ay time o your after-tax cotributios made to the pla after Jauary 1, You ca make withdrawals at ay time o rollover fuds from prior employer plas that you deposited ito the BMC 401(k) Pla. I case of fiacial hardship, you may be eligible for a special hardship withdrawal of fuds from your 401(k) accout if you have previously borrowed moey from your accout. Your Ivestmet Choices To help you meet your fiacial goals, the pla offers you a rage of ivestmet optios, icludig coservative, moderately coservative ad aggressive optios. The pla also offers the Fidelity Freedom K Fuds, each oe offerig a bled of stocks, bods ad short-term ivestmets withi a sigle fud. Each Freedom Fud s asset allocatio is based o the umber of years util the fud s target retiremet date. The Freedom Fuds are desiged for ivestors who wat a simple approach to ivestig for retiremet. If you do ot choose a ivestmet electio, your cotributios will default to the Fidelity Freedom K Fud that has a target retiremet date closest to the year you might retire based o your curret age, assumig retiremet at age 65, util you provide further ivestmet istructio. You ca lear more by cotactig Your Beefits Resources at BMC-4849, (optio Savigs ad Ivestmets), or Fidelity directly at For those who prefer a more hads-o approach to maagig their accout, the pla provides a idividual brokerage optio that permits purchases of a wide rage of mutual fuds plus idividual stocks ad bods. The Fidelity Portfolio Advisory Services (PAS) a optioal feature puts your 401(k) accout uder professioal ivestmet maagemet. There is a aual fee to maitai the accout, ad it varies based o your accout balace. 41

44 2012 BMC Software U.S. Beefits Guide Employee Stock Purchase Pla (ESPP) The BMC Employee Stock Purchase Pla (ESPP) eables eligible employees to purchase shares of BMC Software stock at a 15% discout off the fair market value. Your ESPP is a qualified pla uder Sectio 423 of the Iteral Reveue Service Code. This meas that for stock purchased uder the pla, all icome taxes are deferred util you sell your shares. Upo sale, a portio of your gai will be taxed at the more favorable capital gais tax rate, provided you hold the stock for at least two years after the start of the offerig period. There are two purchase offerigs each year, oe begiig Jauary 1 ad oe begiig July 1. Erollmet for the ESPP occurs twice a year before the begiig of a ew erollmet widow. Erollmet rus from May 15 to Jue 15 ad from November 15 to December 15. To participate i the pla, you must be regularly scheduled to work more tha 20 hours each week. You ca eroll i the ESPP durig the first erollmet widow followig your date of hire. Whe you are first eligible to participate, you will receive a with a ESPP Welcome Guide from Your Beefits Ceter at Fidelity Ivestmets. If you do ot receive the , call Your Beefits Resources at BMC-4849, (optio Savigs ad Ivestmets), or Fidelity directly at ESPP PURCHASE PRICE EXAMPLE Average Share Price at the Begiig of the Offerig Period Average Share Price o the Last Day of the Offerig Period (purchase date) $50 $55 Share Price of ESPP (lesser of two above prices) $50 15% Discout Amout $7.50 Your Discouted Purchase Price $42.50 This represets a purchase price 23% lower tha the curret share price! (Employee Stock Purchase Pla cotiues o page 43) 42

45 2012 BMC Software U.S. Beefits Guide ESPP (cotiued) You ca cotribute up to 10% of eligible compesatio (base pay, overtime, commissios ad bouses). Or, istead of a percetage, you ca elect to cotribute a specific dollar amout per pay period. Please ote that either electio (a percetage or a specific dollar amout) must equal at least $25 per pay period. However, if you wish for your deductios to be take from all of your pay, icludig overtime, commissios ad bouses, you must elect a percetage. Your total cotributios caot exceed $21,250 per caledar year. Your cotributio electio must remai i place through the etire six moth offerig period. You ca elect to withdraw accumulated cotributios i the middle of a offerig period; however, o purchase will be made for you at the ed of the period, ad you must actively re-eroll if you wish to rejoi the ESPP. Your cotributio electio will automatically carry over ito each subsequet purchase offerig period uless you chage it, opt out of the pla or make a withdrawal. If you ed your participatio ad later wish to rejoi the ESPP, you must actively re-eroll durig the erollmet widow of a future offerig period. Ay icome taxes o the gais o the shares purchased through the ESPP are deferred util you sell your shares. Upo sale, a portio of your gai will be taxed at the more favorable capital gais tax rate, provided you hold the stock for at least two years after the start of the offerig period. If you hold your shares less tha two years, your gais will be subject to ordiary icome tax rates. Please review the BMC ESPP Prospectus, located o the Fidelity NetBeefits website ( uder Pla Iformatio & Documets, for more iformatio o the tax implicatios of the sale of your shares purchased through the ESPP. You ca also read IRS Publicatio 525 Taxable ad Notaxable icome, or cosult with your tax advisor. To eroll i the ESPP or to maage your accout, log o to Fidelity NetBeefits ( or call Your Beefits Resources at BMC-4849, (optio Savigs ad Ivestmets), or Fidelity directly at You ca maage all elemets of your ESPP accout olie: erollmet, withdrawals, chage cotributio rates or sale of purchased shares. Please Note: All sales of BMC Software stock through the ESPP are subject to the BMC Software Securities Tradig Policy, which prohibits the buyig ad sellig of stock at certai times, icludig scheduled blackout periods. The status of the Tradig Widow is posted o BMC s itraet home page. Certai employees of BMC are subject to additioal restrictios ad must receive approval from the legal departmet before executig a trasactio. If you have ay questios about our Isider Tradig Policy, please cotact the legal departmet. 43

46 2012 BMC Software U.S. Beefits Guide Paid Time Off & Holidays BMC recogizes that i order to do your work well, you also eed time away from work to refresh ad reew. That s why BMC offers you paid time off from work. How PTO/Vacatio Works Our Paid Time Off (PTO)/Vacatio program provides each eligible employee a amout of paid time off based o legth of service, employmet status ad hours worked per week. PTO/Vacatio provides employees with cotrol ad flexibility ad may be used for ay reaso, such as persoal travel to care for a family member, for persoal busiess or just a day off. Depedig o your reaso for takig time off uder the PTO/Vacatio program, you may also be eligible for FMLA leave. See page 48 for more iformatio. Durig the first partial caledar year of BMC employmet, eligible full-time employees will accrue (ear) the pro-rata equivalet of 15 days per year, calculated o a daily basis (.041 days of vacatio time per caledar day). Begiig i the first full caledar year after your hire date, PTO eligibility is as follows: YEARS OF SERVICE ANNUAL ACCRUAL DAILY ACCRUAL 1 to 4 15 days to 9 20 days days (maximum).068 Exempt employees ca use vacatio time i full-day or half-day icremets. No-exempt employees ca use vacatio time i hourly icremets. 44

47 2012 BMC Software U.S. Beefits Guide PTO/Vacatio Eligibility Part-time employees workig betwee 20 ad 40 hours per week are eligible for a prorated amout of PTO hours based o the percetage of hours worked. For example, if you have less tha five years of service ad work 24 hours a week (60% of the work week) you will be eligible for ie days of vacatio time aually (60% of the full time allowace of 15 days). Part-time employees workig less tha 20 hours per week do ot receive ay PTO/vacatio time. Carry-Over You must use your PTO/Vacatio time durig the curret caledar year uless you are a Califoria employee. Uused PTO/Vacatio ot take by December 31 will be lost. Califoria employees may carry over uused accrued PTO/Vacatio, up to the maximum days available i a caledar year based o years of service. If you are uable to complete your previously scheduled ad approved vacatio by December 31, because of heavy workload or aother busiess reaso, maagemet may, at its discretio, grat a extesio through Jauary of the followig year. Termiatio If you leave BMC for ay reaso, volutary or ivolutary, you will be paid for uused vacatio time you eared to date. Califoria employees will be paid for PTO/Vacatio time eared to date plus ay accrued PTO/Vacatio time carried over from the prior year, subject to the maximum accrual amout. Questios about PTO payouts at termiatio should be directed to Ask-HR at ASK (2275) or or log a help desk ticket at ASKHR Help Desk Ticket. Holidays BMC schedules ie holiday days each year i the U.S. I additio, employees receive oe floatig holiday of their choice. You ca view the holiday schedule o the HR U.S. Coutry Site uder the Global People Portal o the BMC itraet. All full-time ad part-time employees are eligible for holidays. Holidays ca t be carried over ito the ext year, ad employees do ot receive pay for uused holidays, although some employees who are required to work o scheduled holidays may be eligible for substitute time off agreed to i advace with the maager. Employees o a leave of absece are ot eligible for holiday pay. Part-time employees must be scheduled to work o the holiday to receive holiday pay. Employees who record their time usig Oracle Time ad Labor (OTL) should eter the hours they would have ormally worked o the timesheet as holiday (ot to exceed 8 hours). 45

48 2012 BMC Software U.S. Beefits Guide Sick Time Full-time employees scheduled to work 40 or more hours per week are eligible for sick time beefits. You may use sick time for persoal illess, ijury or for persoal doctor or detist appoitmets whe you ca t schedule them aroud work hours. You may be required to provide medical documetatio to support your eed to be out of the office. If you will be off work loger tha three busiess days due to illess, you should file a FMLA claim with Liberty Mutual for your leave. If your illess exteds to five busiess days or loger, you must file a disability claim with Liberty Mutual. See pages for more iformatio o FMLA ad disability beefits. Other Paid Leave I additio to PTO ad holidays, you may be eligible for other forms of paid leave. Bereavemet or Fueral Leave I the evet of a death i your immediate family (your spouse, domestic parter, child, stepchild, paret, siblig, step-siblig, gradparet, mother-i-law or father-i-law, or brother-i-law or sister-i-law), you will eligible for paid time off. Full-time employees are eligible for three busiess days off, ad part-time employees are eligible for leave for the scheduled work hours that fall withi the three-day leave period. You will receive full pay ad beefits for the bereavemet leave. Please call your maager immediately to iform him or her of your loss ad impedig absece. If your absece will last loger tha the leave grated above, you may request additioal time off i the form of upaid leave or PTO/Vacatio time. Jury Duty Your pay ad beefits cotiue while you are o jury duty. You also may keep ay paymets made by the court for jury duty service. Please otify your maager as soo as possible after you receive otice to report for jury duty. Your maager may ask you to provide a copy of your jury duty summos. Job Abadomet It is importat to keep your maager iformed of the reaso for your leave ad the legth of time you will be away from work. If you do ot otify BMC of your leave ad you are abset for three cosecutive days, BMC will cosider that you have abadoed your positio ad volutarily resiged. 46

49 2012 BMC Software U.S. Beefits Guide Disability Beefits Short- & Log-Term Disability BMC s sick time ad disability programs work together to help pay your household expeses if you become disabled ad caot work. BMC pays 100% of the cost of this coverage, ad erollmet is automatic. The chart show below illustrates your beefits uder our sick time ad disability programs. ABSENCE PERIOD PROGRAM PROGRAM ADMINISTRATOR PROGRAM BENEFIT* First five busiess days (Week 1) Sick time (see page 46) BMC Payroll 100% of base salary Weeks 2 ad 3 Short-term disability Liberty Mutual 100% of base salary Weeks 4 through 6 Short-term disability Liberty Mutual 75% of base salary Weeks 7 through 26 Short-term disability Liberty Mutual 66 2/3% of base salary Week 26 ad oward Log-term disability Liberty Mutual 60% of total cash compesatio (base salary, bous ad commissio**) * Beefits are offset by ay amouts received uder workers compesatio ad/or a state disability pla. ** Updated aually You must apply ad be approved for Short-Term Disability (STD) beefits before or immediately after you are abset for illess. You ca eve start your claim i advace of your estimated leave date if you are scheduled for surgery or childbirth. Your STD beefits will be paid to you directly from Liberty Mutual, BMC s admiistrator ad paymet aget for STD. All statutory withholdigs will be deducted, ad beefits may be offset by ay statutory sickess or disability beefits payable to you. Durig your illess absece, you will be billed directly for your portio of beefits cotributios by BMC s beefits admiistrator, Ao Hewitt. You ca apply for STD beefits olie at (Claimat ID # BMC2008) or by callig Liberty Mutual is also our FMLA admiistrator, so you ca also file your FMLA claim (if you are eligible) at the same time you apply for your disability beefits. I order to be approved for Log-Term Disability (LTD) beefits, you must be permaetly ad totally disabled ad uable to perform your ow occupatio for the first two years of disability. After two years, the defiitio of disability chages ad you must be uable to hold ay job that is reasoably appropriate give your educatio level, traiig, or experiece. LTD beefits cotiue util you are o loger disabled, the date you tur 65, or util your death. If you are approved for LTD beefits, you will o loger be covered uder the BMC beefit plas; however you will be eligible for COBRA cotiuatio beefits for medical, detal, visio ad health care FSA coverage. 47

50 2012 BMC Software U.S. Beefits Guide Supplemetal Log-Term Disability (LTD) You ca purchase supplemetal coverage of a additioal 15% of total pay (base salary, bous ad commissio), resultig i a combied beefit of 75% of total pay (base salary, bous ad commissio). You pay the cost of supplemetal LTD through after-tax payroll deductios. Due to the mothly beefit maximum of $15,000 for both basic ad supplemetal LTD, there will be o chage i your gross LTD coverage amout if you select the supplemetal optio. However, your et mothly beefit will be greater with the supplemetal LTD optio because you will be payig for a portio of the total beefit with aftertax dollars. For more iformatio about how tax rules apply to supplemetal disability coverage, see the Group Disability Icome Policy o Your Beefits Resources posted uder Pla Iformatio. Please Note: LTD beefits will be offset by Social Security, Workers Compesatio ad ay other statutory beefits available to you. The overall maximum beefit a basic ad supplemetal isurace combied maximum payable uder this pla is $15,000 per moth. Workers Compesatio BMC provides all active U.S. employees with workers compesatio isurace coverage accordig to the state laws that apply. These laws geerally provide employees who are ijured o the job with compesatio for medical expeses ad for lost wages due to the ijury. Ay ijury that occurs o BMC property or while o compay busiess should immediately be reported to your maager ad your local Huma Resources represetative. Medical expeses resultig from work-related ijuries are ot covered through the group health pla, but istead through the workers compesatio isurace carrier. Family Medical Leave Act (FMLA) The Family Medical Leave Act (FMLA) is a federal law that allows idividuals up to 12 weeks leave durig a 12-moth period based o specified family ad medical reasos for self, child, spouse or parets or to care for a ewbor or ewly adopted child. Additioal FMLA leave beefits may be available for you if you have a family member who has bee called to active military duty or who has bee ijured as a result of active military duty. You are eligible for FMLA if you have worked at BMC for at least 12 cosecutive moths ad at least 1,250 hours. FMLA rus cocurretly with our sick time ad disability programs, if you are eligible. All accrued PTO/ Vacatio time must be used durig your FMLA leave if you are ot receivig sick time or disability beefits. Upo expiratio of your FMLA leave, reasoable efforts will be udertake by the compay to retur you to the same positio, or a equivalet positio, held by you prior to departure, subject to the compay s policy of at-will employmet. To apply for FMLA, please call Liberty Mutual at

51 2012 BMC Software U.S. Beefits Guide Work/Life Solutios I additio to health care, icome protectio ad savig beefits, BMC Software offers the followig programs to eable you to build a customized beefits program that meets your lifestyle eeds. Group Prepaid Legal The BMC Legal Services Pla, uderwritte by Hyatt Legal Services (MetLife), offers easy access to experts regardig your legal eeds. For erolled pla members, most services are provided at o cost, while others are provided at a sigificatly reduced rate. Services are available olie, by phoe or by i perso cosultatio. The pla ca provide assistace regardig: Idetity theft Family issues Persoal property Estate plaig Real estate owership or retal For additioal iformatio, go to Hyatt Legal Plas ( or call Group Auto/Homeower s/property Isurace MetLife Auto & Home provides you with access to isurace coverage for your persoal isurace eeds. The program gives you access to special group rates ad policy discouts. With a MetLife home policy, you re eligible for full replacemet cost coverage. It is what most people thik they have, but whe their home suffers losses, they fid out their isurace wo t really put thigs back the way they were. It s differet with MetLife Auto & Home you get full replacemet cost, whatever the cost. Call GET-MET-8 ( ) for a free quote. BMC employees ca choose from several coveiet paymet optios, icludig payroll or checkig accout deductios. You may eve receive a policy discout for selectig this type of paymet method. 49

52 2012 BMC Software U.S. Beefits Guide Pet Health Isurace What s Covered i a VPI Pet Health Isurace Policy? A VPI pet health isurace policy provides reimbursemet coverage for your pet s eligible medical treatmets, surgeries, lab fees, X-rays, prescriptios ad more, so that you ca make optimal health care decisios for your pet, based o your veteriaria s recommedatio rather tha o the cost of treatmet. Take Cotrol of Veteriary Expeses VPI offers you a fiacial solutio to maagig your veteriary costs by reimbursig your eligible expeses for accidets, illesses ad routie prevetive care, icludig office visits, lab fees, X-rays, surgeries, diagostic testig, prescriptios, hospitalizatio ad much more. Which Level of Coverage is Best for You? Get the health care protectio that s right for your pet by selectig the VPI Pla ad oe of our pet WellCare protectio riders for optioal routie care. TREATMENTS VPI PLAN VPI PLAN WITH WELLCARE CORE VPI PLAN WITH WELLCARE PREMIER Accidets & Illesses X X X MRI, CAT Scas & X-rays X X X Surgeries X X X Cacer Treatmets X X X Prescriptio Medicatio X X X Hospitalizatio X X X Vacciatios X X Heartworm, Prevetive X X Prescriptio Flea Cotrol X X Urialysis Detal or Spay Service X X Additioal iformatio is available through MetLife at GET-MET-8 ( ) or at Metlife 50

53 2012 BMC Software U.S. Beefits Guide Tuitio Reimbursemet Active, full-time employees may be reimbursed for expeses resultig from college-level studies. The maximum beefit is $5,500 per caledar year; however, to be eligible to receive reimbursemet, you must receive a grade of C or better (B i the case of some graduate schools). Expeses for academically accredited courses of a job-related degree program (udergraduate ad graduate) are cosidered for reimbursemet approval by your maager ad director if the course: Relates to your preset job; Prepares you for additioal resposibility; or Relates to a future potetial assigmet withi BMC. Eligible expeses iclude tuitio, textbooks ad all laboratory ad computer fees related to the approved course. Ieligible expeses iclude items such as parkig, ad buildig ad library fees. I additio, all certificates ad semiar-related expeses are ot eligible uder this program ad should be reimbursed uder professioal developmet. To obtai pre-approval for tuitio reimbursemet, you must complete the Tuitio Reimbursemet form olie at Your Beefits Resources ( Select Other Beefits, the Your Spedig Accout. Prit the form ad obtai the proper sigatures before begiig your course(s). Oce you have completed your course(s), submit the siged Educatio Assistace Approval Form (alog with all additioal required documetatio) to Your Spedig Accout. 51

54 2012 BMC Software U.S. Beefits Guide BMC Scholarship Program Each year, BMC Software offers up to six college scholarships to sos ad daughters of BMC employees. Wiers are selected i cojuctio with the Natioal Merit Scholarship Corporatio ad receive a maximum award of $2,500 per year for up to four years of udergraduate college study. Adoptio Assistace The compay will provide fiacial assistace of $5,000 whe you adopt a child. This assistace is iteded to help you offset legal ad other adoptio-related expeses, such as agecy fees ad court costs. Reimbursemet is made to active employees oce the adoptio is fial. The request must be submitted withi 30 days from the fial adoptio date. For more iformatio ad to submit your claim, visit Your Beefits Resources ( Select Other Beefits, the Your Spedig Accout. Fitess Reimbursemet Program The BMC Fitess Reimbursemet Program helps you improve your health or keep i shape by providig up to $225 each year to help pay for fitess activities outside your home. Requests for reimbursemet of expeses icurred durig a caledar year ca be submitted at ay time, but must be received by the program admiistrator by March 31 of the followig year. You must be a active employee durig the period you icurred expeses ad o the date you submit a reimbursemet request. Complete the olie reimbursemet form, available o Your Beefits Resources ( Select Other Beefits, the Your Spedig Accout. 52

55 2012 BMC Software U.S. Beefits Guide Pla Cotact Iformatio PLAN CONTACT PHONE NUMBER WEB SITE All plas Your Beefits Resources BMC Medical Isurace Aeta Plas Prescriptio Drug Coverage for Aeta Medical Plas Medical Isurace & Prescriptio Drug Coverage Kaiser Pla Aeta Medco Kaiser Permaete Detal Aeta Visio VSP Flexible Spedig Accouts & Health Savigs Accout Your Spedig Accout BMC-4849 Employee Assistace Program Aeta (effective Jauary 1, 2012) Global Emergecy Travel Services 401(k) Pla & Employee Stock Purchase Pla Assist America (withi USA) (outside USA) at: assistamerica.com Select Other Beefits, the Your Spedig Accout. Userame: BMC, Password: EAP Referece Number: 01-AA-ACN Fidelity Short-term & Log-term Disability & FMLA reportig Liberty Mutual Claimat ID: BMC2008 Group Prepaid Legal Assistace Hyatt Legal Plas Group Auto/Homeower s/ Property Isurace MetLife GET-MET-8 Pet Health Isurace MetLife GET-MET-8 (follow the pet isurace lik) Participat Advocacy (Help with medical, detal, visio or FSA claims) Your Beefits Resources BMC

56 2012 BMC Software U.S. Beefits Guide Appedices Gettig Help With Eligibility & Claims The plas have a review process that is followed wheever you submit a beefit claim or a eligibility claim. There are dedicated teams to assist you with both beefit ad eligibility issues. Whe you file a claim, the claims admiistrator reviews the claim ad, i accordace with pla provisios, either approves or deies the claim (i whole or i part). The claims admiistrator will otify you of this actio. I some situatios, the pla may eed a extesio of time to process the claim (for example, if the pla eeds additioal iformatio). I these cases, you ll be otified of the extesio ad the additioal iformatio eeded. Gettig Eligibility Help Claims ad Appeals If you have a issue with your claim dealig with eligibility for you or a covered depedet, Claims ad Appeals ca help. Claims ad Appeals is a special group of Your Beefits Resources represetatives dedicated to assistig you with your eligibility claims issues. Call Your Beefits Resources at BMC for assistace. Claims ad Appeals will coduct a iitial review ad determiatio. Gettig Claims Help Participat Advocacy Team BMC Software wats you to get the most out of your health care beefits. The Participat Advocacy service is available to help you resolve ay coflicts you may have with your medical, detal or health care/ depedet care FSA claims ad carriers. Defiitio of Beefit Claim & Eligibility Claim A Beefit Claim is a request for a particular beefit uder a optio (for example, a claim for a certai type of surgery uder the medical plas). A beefit claim typically icludes your iitial request for beefits. A Eligibility Claim is a request to eroll, diseroll or chage your participatio i a specific optio or coverage category outside of the erollmet guidelies stated i this guide. Eligibility claims are filed by callig Your Beefits Resources at BMC

57 2012 BMC Software U.S. Beefits Guide What Is Participat Advocacy? Participat Advocacy will help you with uresolved health pla access or claims issues. The Advocate Team will research your issue ad work with your health pla to resolve it o your behalf. The Advocate Team helps esure that your issue is give the attetio it deserves ad is cosidered fairly. However, cotactig the Advocate Team does ot guaratee the resolutio you wat the terms of the pla still apply. The service is available to employees erolled i medical, visio, prescriptio drug, metal health care, detal ad the health care/depedet care FSA plas. How Ca I Reach the Advocacy Team? Call Your Beefits Resources at BMC-4849 ad ask to speak with a Advocate Team represetative. All calls are cofidetial. Before you request assistace, you must make at least oe attempt to resolve the issue directly with your health pla. This attempt does ot eed to be i writig. If your issue is still uresolved after you ve discussed it with the health pla s customer service, call Your Beefits Resources Beefits Ceter. If you cotact the Beefits Ceter before talkig to your health pla, your issue will ot be passed o to the Advocate Team. Istead you will be directed to cotact your health pla. A Beefits Represetative will review the issue to determie ext steps. If the issue requires advocacy assistace, the Beefits Represetative will pass your issue o to the Advocate Team to begi research. A advocate will cotact you withi two busiess days to follow up. Have the Followig Iformatio Ready Whe You Call the Beefits Ceter Issue descriptio Health care provider Date(s) of service Claim amout Health pla s respose 55

58 2012 BMC Software U.S. Beefits Guide COBRA: If You ad Your Depedets Lose Health Care Coverage If you lose your BMC medical, detal ad visio coverage, i certai situatios you may be able to cotiue coverage o a after-tax basis. This opportuity to cotiue coverage is provided by the Cosolidated Omibus Budget Recociliatio Act (COBRA), a federal law. COBRA coverage is a temporary cotiuatio of health care coverage whe it otherwise would ed because of a life evet, kow as a qualifyig evet. After a qualifyig evet, COBRA cotiuatio coverage is offered to each qualified beeficiary. You, your spouse/domestic parter ad your depedet childre could become qualified beeficiaries if coverage uder the health care plas is lost because of the qualifyig evet. You pay a mothly premium for cotiuatio of coverage. BMC does ot pay for or cotribute toward the premium, so coverage is more expesive tha health coverage for active employees. COBRA applies to these plas: Medical isurace Detal isurace Visio isurace Health Care Flexible Spedig Accout Employee Assistace Program For additioal iformatio about your rights ad obligatios uder federal law ad uder BMC s group health care plas medical (icludig prescriptio drugs), detal ad visio coverage ad the Health Care FSA cotact Your Beefits Resources (YBR) Beefits Ceter at BMC Coverage Optios Whe you or a qualified beeficiary chooses to cotiue coverage, coverage optios iclude: Keep the same level of coverage you had as a active employee or choose a lower level of coverage Chage coverage (if erolled withi the iitial 60-day erollmet widow) i either of the followig circumstaces: Durig the aual erollmet period If you or your depedet has a qualified status chage (life evet) or aother chage i circumstaces recogized by the Iteral Reveue Service (IRS) ad BMC Eroll ay ewly eligible spouse or depedet child uder the health care pla s rules 56

59 2012 BMC Software U.S. Beefits Guide Whe You Ca Elect COBRA Coverage The followig charts show how log you ad your eligible depedets (qualified beeficiaries) ca cotiue COBRA coverage. IF YOU LOSE COVERAGE BECAUSE YOU CAN CONTINUE COVERAGE FOR You are o loger eligible due to termiatio of your employmet or your work hours are reduced below 30 regularly scheduled hours per week 18 moths You are o loger eligible due to termiatio of your employmet ad either you or a depedet is disabled (accordig to the Social Security defiitio) at ay time durig the first 60 days of COBRA coverage 29 moths Edig Coverage COBRA coverage uder a group health care pla eds before the maximum cotiuatio period if: You or your covered depedet fails to make timely premium paymets or cotributios You or your covered depedet become etitled to Medicare You or ay of your covered depedets become covered uder aother health care pla ot offered by the compay Durig a exteded period of COBRA coverage due to a disability (ad assumig there has ot bee a secod qualifyig evet), a fial determiatio is made by the Social Security Admiistratio that the qualified beeficiary is o loger disabled For more iformatio about your rights uder the Employee Retiremet Icome Security Act of 1974 (ERISA), icludig COBRA, the Health Isurace Portability ad Accoutability Act of 1996 (HIPAA) ad other laws affectig group health care plas, cotact the earest regioal or district office of the U.S. Departmet of Labor s Employee Beefits Security Admiistratio (EBSA) i your area, or visit the EBSA website ( (Addresses ad phoe umbers of regioal ad district EBSA offices are available through EBSA s website). 57

60 2012 BMC Software U.S. Beefits Guide Terms to Kow A uderstadig of these terms will help you gai a greater uderstadig of your beefits. Allowable amout. The amout allowed by the pla for a give service, supply or procedure. Aual dollar maximum. Each perso ca receive pla reimbursemets up to a caledar-year limit. Aual dollar maximums apply as a sigle amout to i-etwork ad out-of-etwork services combied. Balace billig. Whe the allowable amout is less tha a health care provider usually charges, a provider ca bill the patiet for the amout ot paid by the pla. If this occurs with a etwork provider, you are ot resposible for the additioal amout. With a o-etwork provider, you are resposible for paymet, ad the amout of the balace bill does ot apply to your out-of-pocket maximum. Coisurace. The portio of covered expeses the pla pays after the deductible is met. Coisurace is expressed as a percetage. Copaymet (copay). The dollar amout you must pay for specific supplies or services. Deductible. The portio of covered expeses you pay each caledar year before the pla begis to reimburse you for all eligible expeses. Drug Formulary. A list of prescriptio drugs, both geeric ad brad ame, that are approved by the health pla. Health Savigs Accout (HSA). A before-tax accout feature of a high-deductible medical pla that you use to pay your health-related expeses each year. BMC cotributes to the accout, ad you may also make volutary before-tax cotributios each year. High-Deductible Health Pla (HDHP). A optio that provides comprehesive health care coverage for you ad your family alog with a tax-advataged Health Savigs Accout that lets you save to pay for your curret ad future out-of-pocket health care expeses. The HDHP/HSA gives you greater flexibility ad discretio over how you use your health care beefits. Network provider. A doctor, hospital or other health care provider who is a active member of a particular pla s provider etwork. No-etwork provider. A doctor, hospital or other health care provider who is ot a active member of a particular pla s provider etwork. Out-of-pocket maximum. Whe the amout of coisurace you pay for expeses has reached a stated aual maximum, the pla will reimburse 100% of covered expeses for the rest of the caledar year. You must still pay all required copaymets (if ay). (Terms to Kow cotiues o page 59) 58

61 2012 BMC Software U.S. Beefits Guide Terms to Kow (cotiued) Preferred Provider Orgaizatio (PPO). A PPO is a maaged care orgaizatio of medical doctors, hospitals ad other health care providers who have cotracted with a isurer or a third-party admiistrator to provide health care at reduced rates to the isurer s or admiistrator s cliets. Prevetive Prescriptio Drug. Medicatios prescribed for disease prevetio. To view medicatios that are cosidered prevetive uder the Aeta HSA pla, please see the list o Your Beefits Resources ( uder Pla Iformatio. Specialty pharmacy. A specialty pharmacy is a pharmacy that provides specialty medicatios. Specialty medicatios ofte require special storage ad hadlig that most retail pharmacies caot maage. These medicatios iclude ijectable, ifused ad selected oral therapies. A specialty pharmacy offers these medicatios, ad a i-house compoudig pharmacy lets pharmacists create forms of medicatio that are ot available i stores. Patiets may have trouble stickig to their therapy schedule ad ofte have side effects from their medicatios. This is why specialty medicatios require a pharmacist or registered urse to moitor the treatmet. BMC strogly recommeds that all specialty medicatios be obtaied through either the Medco or Kaiser Specialty Pharmacy services. Usual ad customary (U&C) (allowable charges). Charges that fall withi a acceptable rage based o the most commo fees for similar services i a give local area, as determied by Aeta usig Health Isurace Associatio of America (HIAA) rates. Additioal factors such as the complexity ad complicatios of a procedure may also be cosidered. If your expeses exceed the U&C charge, you will pay the excess amout. Usual ad customary charges for services withi the PPO etwork are predetermied you should ot be billed for the excess amout. 59