Life and AD&D Flexible Spending Long-Term Care Insurance Retirement & Savings Plan Vacation Sick Leave Holidays

Transcription

1 2016 employee benef its Medical Dental Vision Travel & Accident Employee Assistance COBRA Benefits Disability Life and AD&D Flexible Spending Long-Term Care Insurance Retirement & Savings Plan Vacation Sick Leave Holidays

2 table of contents Welcome Welcome to the Fluor Federal Petroleum Operations Benefits Handbook. Our goal is to help you choose the benefits that are right for you so you can use your benefits to your best advantage. Take a few minutes to become familiar with your benefits package by reviewing this handbook. If you have benefit questions, please contact , ext Employee Benefits Department benefits program your benefits medical insurance medical chart dental insurance vision insurance travel accident insurance employee assistance plan (EAP) COBRA benefits disability insurance life and AD&D flexible spending accounts (FSAs) long-term care retirement & savings paid time off vacation sick leave holidays questions & answers important terms

3 benef its program Life today is complex. That s why Fluor Federal Petroleum Operations Co. (FFPO) offers you a package of benefits and programs to help you simplify and enrich your life. FFPO offers a comprehensive benefits package one that protects you and your family. FFPO pays the full cost of several benefits for employees. These benefits are an important element of your total company compensation. About Your Benefits FFPO provides a wide variety of benefits. Some are provided automatically at no cost to you. Other benefits are available if you choose them. What combination of benefits fits your (and your family s) needs? Benefit Medical Insurance Dental Insurance Vision Insurance Exam only for Employees Materials Basic Life and Accidental Death & Dismemberment Insurance Supplemental Life Short-Term Disability Insurance Core Plan Buy-Up Plan Long-Term Disability Insurance Flexible Spending Accounts Health Savings Account Employee Assistance Plan FFPO Retirement and Savings Plan 401(k) Plan Business Travel Accident Insurance Long-Term Care Insurance Who pays the cost? FFPO & You FFPO & You FFPO You FFPO You FFPO You FFPO & You You FFPO & You FFPO FFPO & You FFPO You How Your Benefits Work Eligibility Information The following benefits information overview is available to all full-time permanent employees of FFPO who regularly work thirty (30) or more hours per week. You may choose to enroll employee only, employee plus spouse/domestic partner, employee plus children/step and employee plus family: Medical Insurance Dental Insurance Vision Insurance Supplemental Dependent Life Insurance Long-Term Care Insurance You may also elect to waive any of these coverages. When Benefits Start Benefits are effective on the first of the month following your date of hire. 2

4 your benefits Family Status Change The following family status changes must be added to your health plan within 31 days of the event: Marriage, divorce Birth of baby Adoption or placement of child Change in eligibility 3 Choosing Your Benefits Some benefits like basic life insurance are automatic. You don t have to choose them because FFPO pays the entire cost. However, you must actively choose any benefit that you pay for. Your part of the cost is automatically taken out of your paycheck. There are two ways that your contributions are deducted. Before-tax: Medical, Dental and Vision premiums, Flexible Spending Account contributions, Health Savings Account contributions and 401(k) deductions. After-tax: Supplemental Life, Long-Term Care and Short- and Long- Term Disability Insurance premiums. Making Changes Generally, you can only change your benefits choices during the annual benefits enrollment period. However, you can change your applicable benefit plans during the year if you have a family status change. Family status changes include: Your marriage Your divorce or legal separation Birth, adoption or placement for adoption of an eligible child Death of your spouse/domestic partner (dp*) or covered child Change in your (or your spouse s/dp s) work status that affects benefits eligibility (for example: starting a new job, leaving a job, changing from part-time to full-time, a strike or lockout, starting or returning from an unpaid leave-of-absence) A significant change in your (or your spouse s/dp s*) health coverage attributable to your spouse s/dp s* employment A change in your child s eligibility for benefits Becoming eligible for Medicare or Medicaid during the year If you have a family status change, you must notify the FFPO Benefits Administrator within 31 days of the change. Depending on the type of change, you may need to provide proof of the change (for example: a copy of a marriage license or birth certificate). If you do not notify the Benefits Department within 31 days, you will have to wait until the next annual enrollment period to make benefits changes unless you have another family status change. Any changes you make to your benefit choices must be directly related to the family status change. * dp = domestic partner When Coverage Ends The Employee Assistant Program (EAP), Medical, Dental and Vision plans end on the last day of the month of employment. Life and Disability coverage ends on the last day of employment. Long-Term Care, Supplemental Life and Dependent Life also end on the last day of employment but the coverages are portable so that you can be billed at home.

5 medical insurance For most people, Medical Insurance is no longer a want it s a need. We ve all seen the cost of medical care skyrocket over the years, so we need insurance to help protect not only our physical health, but our financial health as well. That s why FFPO offers you two Medical plan options including a Traditional PPO and a PPO with HSA. Traditional PPO Plan A PPO plan is very flexible because: You can go to any doctor you choose and receive benefits. If you choose to go to a network doctor, you pay less out-of-pocket expenses. You can go straight to a specialist without a referral. Preventive care (including well-child care, check-ups and mammograms) are covered expenses. The prescription drug benefits include a low-cost mail-order program for drugs you take regularly (like allergy or insulin medications). PPO with an HSA A Health Savings Account (HSA) works in conjunction with a qualified health plan such as the PPO with a high deductible. The HSA has four tax advantages: The money contributed is tax-free. Your balance can earn interest, which is also tax-free. When you pay for qualified expenses with the money in your HSA, you don t pay taxes on those withdrawals. Upon retirement at age 65, you can use the funds for nonqualified medical expense withdrawals with no penalties. You ll need to cover your plan s deductible with out-of-pocket funds, or the money in your HSA. So, you ll want to make sure to budget and plan ahead. The maximum HSA contribution for 2016 is $3,350 for single coverage and $6,750 for a family. About Your Medical Plan The charts shown on the next page illustrate the plan benefits for certain services. The deductible, out-of-pocket maximum(s) and copayments are your responsibility. Coinsurance is shared between you and the plan as illustrated. Copays and coinsurance for mental health benefits are not applied toward out-of-pocket maximums. The information on the next page is not a complete listing of covered services. Please see your Summary Plan Description (SPD) for a more complete list. If there is a question of coverage, the Summary Plan Description (SPD) is the final determinant of coverage. To learn more about the PPO or HSA plan visit 4

6 medical insurance Benefit Traditional PPO Plan HSA Plan In-Network Out-of-Network In-Network Out-of-Network Annual Deductible Individual Family $750 $2,250 $1,500 $4,500 $1,500 $3,000 $3,500 $6,000 HSA Fund Individual Family $500 $1,000 Prorated for midyear election Out-of-Pocket Maximum Individual Family $2,750 $5,500 $5,500 $11,000 $4,250 $8,500 $9,000 $17,000 Doctor s Office Visits (including specialists and surgery done in the doctor s office) $25/visit 50% after deductible 80% after deductible 50% after deductible Outpatient Lab & X-Ray 90%, no deductible 50% after deductible 80% after deductible 50% after deductible Benefits for Children Well-Child Office Visits Well-Child Immunizations No charge No charge 50% after deductible 50% after deductible No charge No charge 50% after deductible 50% after deductible Adult Preventive Care (including routine physicals, GYN exams, prostate exams, mammography) No charge 50% after deductible No charge 50% after deductible Hospital Care (Inpatient and Outpatient Care) 80% after deductible 50% after deductible 80% after deductible 50% after deductible Emergency Treatment Emergency Room Ambulance Service $100 copay (waived if admitted) 80% after deductible $100 copay (waived if admitted) 80% after deductible 80% after deductible 80% after deductible 80% after deductible 80% after deductible Prescription Drugs (Retail) (31-day Supply) Generic Formulary Non-Formulary $15.00 $45.00 $ % after deductible; certain preventive drugs 20% of discounted cost, deductible waived Prescription Drugs (Mail-Order) (90-day Supply) Generic Formulary Non-Formulary $ % after deductible; certain preventive drugs 20% of discounted cost, deductible waived Mental Health Services Inpatient Outpatient 80% after deductible $25 copay 50% after deductible 50% after deductible 80% after deductible 80% after deductible 50% after deductible 50% after deductible Therapies (Physical, Speech and Occupational)(Up to 20 visits per therapy, per year) $25 copay 50% after deductible 80% after deductible 50% after deductible Maximum Benefits Dependent Coverage Up to age 26 Up to age 26 Up to age 26 Up to age 26 * All overnight stays and some outpatient procedures must be approved before you check into the hospital. This is not a complete list of covered services. Please see your Summary Plan Description (SPD) for a complete list. 5

7 dental insurance The FFPO Dental plan covers a full range of services, including dependent and adult orthodontia. About Your Dental Insurance The FFPO Dental plan covers the four main types of dental expenses: Preventive and diagnostic care (routine exams and cleanings, fluoride treatments, sealants, bitewing X-rays) Basic treatment (full mouth X-rays, pulling teeth, fillings) Major treatment (root canals, oral surgery, gum disease treatment, crowns, dentures and implants) Orthodontia 12 month waiting period The chart shown below illustrates how much the plan pays for certain dental services. Keep in mind that if your dentist charges more than the reasonable and customary charge for a particular service, you are responsible for the extra amount. If you choose a dentist in network, you will not be charged an amount in excess of the reasonable and customary fees. Benefit Annual Deductible Individual Family You pay... $50 $150 Preventive & Diagnostic Care $0 (Plan pays 100%) Basic Treatment 20% after deductible Major Treatment 50% after deductible Orthodontia Treatment 50% Annual Maximum Benefit $1,500 Lifetime Orthodontia Benefit $1,500 6

8 vision insurance About Your Vision Insurance Vision care is an employee benefit that serves the employer as well as the employee. Employees with healthy vision are more productive and perform better. That is why FFPO offers a vision plan to all eligible employees. Vision benefits are available for benefit-eligible employees and their dependents. Coverage includes benefits for eye examinations, lenses, frames and contact lenses. Your vision is important to your health. Whether your vision is 20/20 or less than perfect, everyone needs to receive regular vision care. That is why FFPO covers all employees for an eye exam every 12 months, even if you waive coverage. The chart shown below is designed to let you clearly see the benefits that FFPO offers you. Benefit Frequency of Service Network Provider Copay Out-of-Network Benefit Max. Exam* Once every 12 months $20 copay $29.75 allowance Frames Once every 24 months No copay $38 allowance Lenses (any one type) Single vision Once every 12 months No copay $21.25 allowance Bifocal vision Once every 12 months No copay $34 allowance Trifocal vision Once every 12 months No copay $46.75 allowance Once every 12 months $105 allowance Elective contact lenses (in lieu of lenses) * Provided to all full-time FFPO employees with no premium deduction. $100 allowance When Are You Covered? For TA coverage, a business trip begins when you leave your office or home. It ends when you return to your office or home, whichever comes first. Normal commuting to and from work is not considered a business trip. 7 travel accident insurance Business Travel Accident Insurance Travel Accident (TA) insurance, or Business Travel Accident (BTA), is extra insurance coverage for you whenever you travel on company business. If you die while traveling, your beneficiary will receive payment from the TA plan. You will receive a payment from the plan if you are seriously injured (for example: if you lose an arm or your hearing). The amount of the payment depends on the extent of your injury. Insurance to cover travel-related incidents is provided at no cost to you by FFPO. All active employees designated by FFPO as business travelers have coverage at 2.5x their base annual salary up to a maximum of $300,000 for business-only travel. Also, included with this benefit are travel assistance services including language interpreters, replacement of lost medication or eyeglasses, medical referrals, medical evacuation and repatriation, and emergency travel plan assistance.

9 employee assistance plan (EAP) Sometimes balancing work and family activities creates stress that s hard to handle on your own. To help you through those times, you can receive counseling and referrals through the Employee Assistance Plan (EAP) at no cost to you. You and your immediate family members can use the program. This service is administered by private firms specializing in employee assistance programs. Any assistance you receive is completely confidential and not shared with FFPO. When to Use the EAP Counseling is available through the EAP for personal difficulties such as: Family or marital problems Parenting concerns Emotional difficulties like depression, anxiety and guilt Drug and alcohol dependence Grief over the death of a loved one or other losses Eating disorders like anorexia Conflicts at work Job stress Crisis situations Questions about legal or financial concerns Questions about child or elder care How to Use the EAP If you need assistance, you can call and speak to an EAP counselor. Sometimes a telephone call is all it takes. But if you want or need additional counseling, you can schedule an appointment with an EAP counselor. Coverage includes five face-to-face counseling sessions each year. The EAP can also provide referrals to other providers or community resources if you need additional assistance. If you re referred to a provider outside the EAP, the cost of that treatment is not covered by the EAP. However, the treatment may be covered by the Medical plan. For more information about Medical plan mental health benefits, please see the Summary Plan Description (SPD). Need Help? For confidential assistance with personal issues, contact MHN at or visit the website at www. members.mhn.com. 8

10 COBRA benefits What is COBRA? COBRA gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan. Continuing Your Coverage Under certain circumstances, you may continue your health care coverage after you leave FFPO. This is called COBRA coverage. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of COBRA contains provisions giving certain former employees, retirees, spouses and dependent children the right to temporary continuation of health coverage at group rates. However, this coverage is only available in specific instances. You will be responsible for the entire cost of the plan plus administration costs. If you lose coverage because... you are no longer eligible due to termination of employment you are no longer eligible and either you or a dependent is disabled (according to the Social Security definition) within 60 days of your loss of eligibility of your death If your dependent loses coverage because... you become eligible for Medicare after your COBRA election begins you and your spouse divorce he or she is no longer a dependent (because of age or marriage) You continue coverage for months 29 months Your dependent can continue coverage for months 36 months 36 months 36 months The charts shown above illustrate how long you can continue your COBRA coverage. COBRA applies to these plans: Medical Insurance Dental Insurance Vision Insurance Employee Assistance Plan (EAP) Flexible Spending Account When COBRA Ends COBRA coverage will end before the end of the eligibility period if: You do not make premium payments on time You become entitled to Medicare FFPO benefits are discontinued You become covered under another group health plan after you elect COBRA coverage If you have any questions about COBRA, please contact the FFPO Benefits Administrator. 9

11 disablity insurance How would you pay bills if you are unable to work due to a disability? A surprising number of people will unexpectedly find themselves hurt or sick and unable to work even if only for a short time. But would a month seem like a short time if you had no income? FFPO s disability plans work together to help you pay your household expenses if you become disabled and cannot work. FFPO s disability plans are: Short-Term Disability Insurance Long-Term Disability Insurance Short-Term Disability (STD) Insurance This benefit is offered to full-time active employees. The Core Plan is paid for by FFPO and the Buy-Up Plan is paid for by you. Details Core Plan Buy-Up Plan Weekly benefit 60% of salary 66.7% of salary Weekly maximum Up to $750 Up to $1,750 Benefit duration 26 weeks 26 weeks When Are You Disabled? You don t have to be bed-ridden to be considered disabled. You do have to be under a doctor s care and your doctor must certify that you cannot do your job at FFPO, and you need to be seeing a doctor regularly for treatment. If you are still disabled two years after LTD benefits start, the definition of disabled changes. After two years, you must be unable to hold any job that is reasonably appropriate (given your education level, training or experience). Long-Term Disability (LTD) Insurance If your disability lasts longer than the length of coverage you have under Short-Term Disability, then you may be eligible to receive LTD benefits. Waiting period Details Percent you will receive Monthly maximum Benefit duration Benefit 180 days 60% of salary $5,000 (hourly)/$10,000 (salaried) Until you are no longer considered disabled or you reach Social Security normal retirement age, whichever comes first What s Your PDQ? Your PDQ (Personal Disability Quotient) calculates your chance of being injured or becoming ill. Learn what you can do to prevent disability from taking a financial toll on your family at 10

12 life and AD&D To paraphrase a television ad, Life Insurance isn t for you; it s for the ones you leave behind. Life and Accident Insurance do their work in the background. You probably won t even notice until, of course, you need it. Life Insurance works for you if other people depend on you for support. FFPO Provides: Basic Life Insurance for you at no cost to you Basic Accidental Death and Dismemberment Insurance for you at no cost The option of buying additional insurance for you and your dependents Basic Life Insurance To get you started, FFPO provides the following insurance policies as long as you are a full-time employee. Life insurance for you $65,000 for hourly employees; 2x base pay (up to a maximum of $200,000) for salaried employees. Accidental death and dismemberment insurance for you 2x base pay (up to a maximum of $200,000). What is Evidence of Insurability? Evidence of Insurability is a medical questionnaire provided by the carrier to assess if you are insurable for higher levels of life insurance. You are required to complete an EOI form if you apply for coverage above the guaranteed issue amount or if you enroll outside of your initial eligibility period. 11 Life Insurance and Income Taxes Since FFPO pays for your Basic Life and Accident Insurance, any coverage of more than $50,000 is considered income by the IRS. When you receive your W-2 form each January, the value of this benefit will be included in your taxable earnings. These earnings are called imputed income. This imputed income is taxed just like your regular pay. We calculate imputed income per pay period. What is Accidental Death & Dismemberment (AD&D) Insurance? Accidental Death and Dismemberment Insurance is similar to regular Life Insurance. If you die in an accident (for example: an automobile accident), your beneficiary will receive the amount of your AD&D coverage in addition to your Life Insurance benefit. AD&D Insurance also pays a benefit if you are seriously injured in an accident. Part of your benefit may be paid to you if you lose a limb (like your arm) or the ability to see, hear or talk, or become physically disabled (for example: if you are paraplegic). Supplemental Life Insurance If you want additional financial protection for you and your family, you can purchase: Benefit Benefit Amount Supplemental Life Insurance for you Any multiple of $10,000 up to $500,000 Supplemental Life Insurance for your spouse 50% of employee amount Supplemental Life Insurance for each dependent child Any multiple of $2,000 up to $10,000

13 flexible spending accounts (FSAs) Through the Flexible Spending Accounts (FSAs) you may use tax-free dollars to pay for: Most medical, dental and vision care expenses (like copayments and deductibles) Dependent care expenses (like day care, babysitters or after-school programs) Saving Money With Flexible Spending Accounts Let s look at an example below of how your Flexible Spending Accounts may save you money: Assume that you pay about $1,500 each year on prescriptions, copayments, deductibles, and other medical expenses and you spend another $4,000 on child care. As you can see in the charts below, by utilizing both the health care and dependent care spending accounts, you can reduce your taxable income and increase your spending money by $1,210. How Much to Contribute The trick to using FSAs is figuring out how much to contribute each pay period. If you contribute less than the amount of your actual eligible expenses, you miss out on some tax savings. If you contribute more than the amount of your actual eligible expenses, you give up the extra money. So, it s best to estimate a little low when deciding how much to contribute. How the Accounts Work Each pay period, you simply make a contribution to your Health Care Spending Account and Dependent Care Spending Account, just like you would a savings account when you need money, you take it out. Just fill out a form, attach your receipts and the Plan Administrator will send you a check for the amount of the expense. Some medical expenses can be automatically processed. If you participate in FFPO S Medical plan and you contribute to the FSA medical account, your reimbursements will be automatically processed. How to Contribute The FSA yearly contributions limits are: Health Care Min. $650 Health Care Max. $2,500 Dependent Care Max. $5,000 NOTE: You have the option, but are not required, to participate in either Health Care and Dependent Care Flexible Spending Accounts. Health Care Spending Account Participation Benefit If You Participate If You Don t Participate Annual Salary Before Taxes $25,000 $25,000 Less: Health Care Spending Account Deposit -$1,500 -$0 Taxable Income $23,500 $25,000 Less: Income Taxes & Social Security -$5,170 -$5,500 Take-Home Pay $18,330 $19,500 Less: Health Care Spending -$0 -$1,500 Net Pay You Can Spend $18,330 $18,000 Tax Savings $330 $0 Dependent Care Spending Account Participation Benefit If You Participate If You Don t Participate Annual Salary Before Taxes $25,000 $25,000 Less: Dependent Care Spending Account Deposit -$4,000 -$0 Taxable Income $21,000 $25,000 Less: Income Taxes & Social Security -$4,620 -$5,500 Take-Home Pay $16,380 $19,500 Less: Dependent Care Spending -$0 -$4,000 Net Pay You Can Spend $16,380 $15,500 Tax Savings $880 $0 12

14 long-term care Why Long- Term Care? Long-Term Care Insurance helps protect two generations: parents and children. Unfortunately, Americans over the age of 65 have a 40% chance of entering a nursing home for long-term care (LTC) services. Since this type of care can span years, it can become very expensive jeopardizing pensions, stocks and other family resources. In fact, 72% of people needing long-term care end up in poverty! That s why, as a valued employee of FFPO, insurance is available so that you can protect your family and your assets. About Long-Term Care Insurance Whether care is received at home, in the community, in a residential care or assisted living facility, or in a nursing facility, our policy will provide a solution that is right for you and your family. Once you or your loved one is qualified, services include the full daily benefit (1/30th of the monthly benefit) selected for each day of service, regardless of the expenses incurred. Receipts and vouchers are not required and there is no coordination of benefits with Medicare or other insurance plans. Therefore, you decide the best way to spend each benefit dollar. Eligibility to Receive Benefits The long-term care coverage includes the chronically ill. Being chronically ill means that you are unable to perform at least two Activities of Daily Living (ADLs) such as bathing, dressing, toileting, transferring, continence and eating without substantial assistance. It may also mean that you suffer from a severe cognitive impairment requiring substantial supervision to protect you from threats to health and safety. Elimination Period The Elimination Period is 90 days. An Elimination Period is the number of days the insured would pay for care while chronically ill before the policy benefits are payable. The benefit payments begin after the Elimination Period has been satisfied. The Elimination Period only needs to be satisfied once in your lifetime. Monthly Benefit This policy pays the Monthly Benefit amount purchased, regardless of the cost of care or the number of services per day. Once qualified, you receive the full daily benefit (1/30th of the monthly benefit) for each day of services. You do not need to submit receipts for expenses incurred and can use the benefit dollars to pay for whatever needs are most important. You can choose a benefit from $2,000 to $9,000 per month in $1,000 increments. You also choose the benefit duration period(s): 3 years, 6 years, or a lifetime. 13

15 retirement & savings Saving money for retirement can be a daunting task for those of us who are not independently wealthy. That is why FFPO also has a 401(k) plan available for those that would like to participate. You may contribute up to 70% of your pretax income subject to IRS limits. Your contributions are made through payroll deductions, which can be increased or decreased anytime. About the Plan The FFPO 401(k) Plan has a company match and retirement contribution. Earnings from plan contributions (yours and FFPO s) are tax-deferred until they are distributed from your 401(k) account. All contributions are immediately vested. Company Match and Retirement Contribution FFPO will contribute $1 to your account for every $1 you contribute, up to 4% of your eligible pay. Each payroll period FFPO will make a retirement contribution equal to 3.6% of base pay compensation. Please note, you are immediately 100% vested in the employee and the employer contributions made to the plan. When You Are Covered You are eligible to participate the first day of the pay period following your date of hire. How to Enroll Enrollment information will be provided to you during your benefits orientation. This information will provide all the details on your plan and instructions on how to enroll. Online enrollment will be available. You must complete the enrollment process within 30 days after you become eligible. If you haven t completed the enrollment process within that time, you will be automatically enrolled in the plan at a pretax rate of 4%. Your Investment Options Your investment choices are outlined in the enrollment material. How You Access Information You have access to your account information in many ways: Quarterly Account Statements Toll-free telephone access is available 24/7 You can speak to a representative between the hours of 6:00 a.m. and 10:00 p.m., EST, Monday Friday Web access Loans Loans are permitted under the plan. The minimum amount is $1,000 not to exceed 50% of your vested account balance or $50,000. You cannot have more than two loans outstanding at the same time. Hardship Withdrawals Hardship withdrawals are permitted in accordance with IRS regulations. 14

16 paid time off Vacation FFPO recognizes that in order to do your work well, you also need time away from work to refresh and renew. That s why FFPO offers you paid vacation time for you to spend at your discretion. The following table illustrates the breakdown of vacation accrual per years of service. Years of Service Bi-weekly Accrual Rate Annual Vacation Award At 6 months 40 hours At 6 months + 1 day 3.1 hours 80 hours 5th year 4.6 hours 120 hours 15th year 6.2 hours 160 hours 20th year 7.7 hours 200 hours * Vacation is calculated in 8-hour days As a new employee, you will not accrue vacation for the first six months of employment. After six months, you will receive 40 hours of vacation award, which is immediately available for use. You will then begin to accrue vacation hours per the vacation award accrual schedule above. It is FFPO s policy to allow employees to carry 1 year of vacation credits earned. Approval to use vacation must be given by your immediate supervisor or manager. Sick Leave As a new employee, you will be given 8 hours of sick leave after one month of employment. Each bi-weekly pay period after that will accrue 3.1 hours of sick leave to total 80 hours annually. Each year following, you will accrue 3.1 hours in each of 25 bi-weekly pay periods and 2.5 in one adjustment period to total 80 hours each year. Sick leave can be used in the event of an employee s or immediate family member s injury or illness. Approval to use sick leave must be received by your supervisor or manager. 15 Holidays FFPO observes the following holidays: New Year s Day Martin Luther King Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day (3) Floating Holidays* * Floating holidays awarded to new employee; see chart on right. Floating Holidays Hire Date Jan. 1 Apr. 30 May 1 Aug. 31 Sept. 1 Dec. 31 Award 24 hours 16 hours 8 hours In the second and all subsequent calendar years of employment, the employee will be awarded the full complement of 24 hours of floating holiday leave.

17 questions & answers Question: When am I eligible for health benefits? Answer: A full-time employee who regularly works thirty (30) or more hours per week will be eligible to enroll for coverage under this plan. Other employees such as interns, part-time, temporary or seasonal will not be eligible to enroll for coverage under this plan. The first day of the month following your hire date. Question: How do I enroll in benefits? Answer: You will receive an orientation packet with instructions and deadlines to enroll. Question: Do I have to complete any paperwork for benefits? Answer: No, you will enroll online through the benefits system. Question: If I only want medical coverage and not dental can I just elect medical coverage? Answer: Yes, all the health plans are independent of each other. You may elect all, some or none of the benefits. Question: If I elect Domestic Partner coverage, are my benefits the same as those provided to non-domestic partner members? Answer: Yes. The benefits are exactly the same. However, there are tax consequences since these members are not IRS-qualified dependents. Please see the Benefits Department for more information. Question: Will I receive ID cards for my benefits? Answer: A medical ID card will be mailed to your home address. A dental ID card will be included with your orientation packet. The vision coverage does not have an ID card. Question: Will I receive confirmation of my benefits? Answer: No. You must review your pay stub during the month in which your benefits are effective. If you notice any difference between what you elected and what you are being charged, you must contact the Benefits Department to correct any errors. Question: How can I check my pay stub? Answer: You can access a copy of your pay stub through the Employee Self Service (ESS) System available on the FFPO intranet. From My SPR, select SAP Portal under Web Applications. This will bring you to a screen that says Please log on to the SAP system. Enter your login ID and your password. This information will be provided to you upon your hire. Once in the system, click on payment, then paycheck inquiry, then display results. Question: Who can I cover as a dependent? Answer: You may cover your legal spouse/dp. You may also cover your children up to age 26. Question: Once I elect the coverage, when can I cancel it? Answer: You are limited as to when you may cancel coverage. You may cancel your coverage if you become eligible for other coverage either through your spouse/dp becoming eligible with their employer for coverage or if you become eligible with another employer. You may also cancel coverage during the annual open enrollment period. 16

18 important terms COBRA A federal law that allows workers and dependents who lose their medical, vision, dental or Flexible Spending Account coverage to continue any of those coverages for a specified length of time. Coinsurance The percentage of the medical or dental charge that you owe after you pay the deductible. Copayment A flat fee that you pay for medical services, regardless of the actual amount charged by your doctor or another provider. This generally applies to physicians office visits and prescription drugs. Deductible The amount you pay toward medical and dental expenses each calendar year before the plan begins paying benefits. Dependent: A dependent is defined under the FFPO Plan as a legal spouse, same sex spouse or same or opposite sex domestic partner and children younger than the age 26. In-Network/Out-of-Network: In-network refers to those physicians, labs, hospital and other medical facilities, which have been contracted under a health care plan to provide services to their members. Staying in network allows lower charges and a smaller percentage of out-of-pocket expenses. Reasonable and Customary (R&C) Limit The usual amount charged by most doctors for a particular medical service. The R&C limit may be different in two different geographic areas or if the service was provided under different circumstances (for example, in an emergency versus a non-emergency). R&C charges may apply only if you use out-of-network providers. Conversely, going out of network generally means charges are higher and you will have to pay a greater percentage of out-ofpocket expenses. Notes Insurance Terms Because not everyone is familiar with insurance terms, we ve included a brief dictionary (left). Knowing the terminology can help you make betterinformed benefit choices. 17

19 About This Guide This guide describes the benefit plans and policies available to you as an employee of FFPO. The details of these plans and policies are contained in the official plan and policy documents, including some insurance contracts. This guide is meant only to cover the major points of each plan or policy. It does not contain all of the details that are included in your Summary Plan Description (as required by ERISA). If there is ever a question about one of these plans and policies, or if there is a conflict between the information in this guide and the formal language of the plan or policy documents, the formal wording in the plan or policy documents will govern. Please note that the benefits described in this guide may be changed at any time and do not represent a contractual obligation on the part of Fluor Federal Petroleum Operations LLC /16 Copyright 2016 Mercer LLC. All rights reserved.