2015 Summary of OUC Benefits and Hybrid Retirement Program

Transcription

1 2015 Summary of OUC Benefits and Hybrid Retirement Program BENEFITS AVAILABLE UPON EMPLOYMENT MEDICAL, DENTAL AND PRESCRIPTION INSURANCE PROGRAMS (Health Plan): OUC offers three different medical plans with a variety of benefit levels for employees to choose from based on your individual and family needs. The medical plan choices are designed to help you take charge of your health care and manage your health care costs. Health care is a personal decision and so is the plan you choose for yourself and your family. It is all about finding the plan that best suits your needs. The three plan choices consist of a $300 Deductible Choice (Premium Plan), $1,000 Deductible Choice (Core Plan) and a $3,000 Deductible Choice. The $3,000 Deductible Choice has a $925 Health Reimbursement Account (HRA Plan) which is funded by OUC. The $1,000 and $3,000 Deductible Choice Plan have the same prescription three-tier prescription copay structure whereas the $300 has a different copay structure. For additional information see the OUC Summary of Health Plan Options. DEPENDENT ELIGIBILITY: Full-time employees may elect medical coverage for their eligible dependents which include: spouse, samesex domestic partner and dependent children under age 26. Part-time employees are not eligible for dependent medical coverage. REQUIRED DOCUMENTS: If you choose to elect coverage for your dependent(s), please refer to the Required Dependent Eligibility Documentation form which is included in this packet. These documents are required before coverage can begin. DENTAL INSURANCE PLAN provides network and non-network benefits. Annual deductible and co-insurance benefits are the same for in-network and out-of-network. Employees will benefit more by utilizing network providers with lower out-of-pocket costs due to negotiated rates and no balance billing. Aetna is the insurance carrier for the dental insurance coverage. COMPREHENSIVE PRESCRIPTION PROGRAM is offered through Aetna. The Plan has a three-tier copay structure when accessing prescriptions through network pharmacies. By ordering maintenance medications through the Aetna Home Delivery, your 90-day supply will cost you only two co-pays instead of three retail co-pays. You are able to go to any CVS pharmacy to fill your 90-day prescription at the same price as the mail order co-pay. For specialty pharmacy prescriptions, please refer to the Aetna Comprehensive Medical Insurance. AETNA VISION ONE DISCOUNT PROGRAM: You will receive special discounts on routine eye exams, eyeglasses, contact lenses and solutions, LASIK and other eye-care services and accessories. The program is included with your Aetna health benefits plan. Visit to find a participating professional Medical, Prescription and Dental Insurance Premiums GROUP CORE PLAN ($1,000 DED.) HRA PLAN ($3,000 DED.) PREMIUM PLAN ($300 DED.) Employee No premium No premium $ weekly Employee plus one $53.58 weekly $34.86 weekly $ weekly Employee plus family $ weekly $68.24 weekly $ weekly HEALTH REIMBURSEMENT ACCOUNT (HRA): To help subsidize the $3,000 Deductible Choice, OUC will deposit $925 into an Annual Health Reimbursement Account (HRA) at the beginning of the plan year each year the employee enrolls in the $3,000 Deductible Choice. The HRA reimburses employee and covered dependent(s) for approved eligible medical expenses, including deductibles and co-pays. If you enroll in the $3,000 Deductible Choice Plan, you and eligible dependents are permitted to use the OUC Health Reimbursement Account. All remaining balances at the end of the year will roll over to the next calendar year. This will allow you to accumulate funds to cover your out-of-pocket costs. This document is intended for summary purposes only. To have full detailed knowledge of any benefit listed on this summary, please refer to the Employee or Benefit Handbook or Summary Plan Descriptions (SPD) posted on the 0UCweb

2 OUC HYBRID RETIREMENT PROGRAM: The Hybrid Retirement Program consists of a Defined Contribution Plan (DC), Cash Balance Plan (CB) and a Health Reimbursement Account (HRA). These three components will provide employees an income replacement which is needed at their retirement. The Cash Balance and the Health Reimbursement Account is fully funded by OUC. When the employee becomes a participant in the DC Plan, the employee will automatically make a 4% (mandatory) contribution of base pay to the DC Plan. OUC will make an Employer Contribution in amount equal to 4% of your base pay. To provide more retirement savings, the employee may defer 2% pre-tax or up to 10% - 12% post-tax in the Defined Contribution Plan. Fidelity Investments acts as the Trustee and Plan Administrator to the DC Plan. See attached Summary of Enhanced Retirement Program for more details. FLEXIBLE SPENDING ACCOUNT (FSA): You have the option to contribute to a Flexible Spending Account, which allows payment for un-reimbursed health care related expenses and dependent care on a pre-tax basis. If you participate in a Medical Flexible Spending account you will receive an FSA Debit Card. The Aetna FSA debit card is electronically linked to your FSA so your co-pays and coinsurance amounts are deducted directly from your FSA. For more locations, visit the Aetna website. The debit card system automatically identifies what is eligible and what is not. LIFE INSURANCE: OUC provides you with life insurance in the amount of two times your annual base earnings, up to a maximum of $500,000. The benefit is underwritten by Reliance Standard Life Insurance. ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE: OUC provides each full-time employee with $50,000 minimum benefit coverage for accidents resulting in death. Part-time employees are not eligible for AD&D insurance. VOLUNTARY SUPPLEMENTAL INSURANCE PLAN: Additional accident or illness insurance coverage is provided through Allstate. Four different plans are available for your protection: Group Accident Plan, Group Supplemental Hospital Indemnity, Group Specified Critical Illness and Group Cancer Plan. VOLUNTARY TERM LIFE INSURANCE: In addition to the basic life insurance provided by OUC, you may purchase supplemental Term Life Insurance for you and your eligible dependents. Upon employment and no later than 31 days after hiring, new employees under the age of 60, may apply for up to $100,000 guaranteed in increments of $10,000 and spouse $50,000 in increments of $10,000. Employees age 60 to 70 may apply for up to $5,000 guaranteed. Based on evidence of insurability, a maximum benefit amount up to $500,000 is available for employee and spouse. Two thousand dollars of coverage is available for eligible dependent children age 14 days to 6 months, and coverage of $5,000 or $10,000 is available for children age 6 months to 26 years. DEFERRED COMPENSATION PLANS (457 Plan): In addition to the OUC Hybrid Retirement Program, Voya or Nationwide offers additional pre-tax retirement plans to employees. EMPLOYEE ASSISTANCE PROGRAM: The Employee Assistance Program enables the employee and family members to solve personal or work-related problems with the help of licensed professional counselors. The program allows confidential assistance for relationship, legal, financial, parenting or dependent care problems; substance abuse or stress. HOLIDAYS: Observed holidays at OUC: New Year s Day Memorial Day Labor Day Day after Thanksgiving Christmas Day Martin Luther King Day Independence Day Thanksgiving Day ½ Day Christmas Eve TIME OFF: Jury duty, military leave, funeral/bereavement. Review Employee Handbook for eligibility requirements. SAFETY PRESCRIPTION EYEGLASSES PROGRAM: To supplement and encourage full time eye-protection protection on the job, the Commission pays a portion for employee s ANSI rated safety eye-wear. SAFETY SHOES PROGRAM: To supplement protective foot equipment for specific job categories, the Commission pays a portion for employee s ASTM rated safety shoes. EMPLOYEE PARKING: OUC provides employee parking at no charge. This document is intended for summary purposes only. To have full detailed knowledge of any benefit listed on this summary, please refer to the Employee or Benefit Handbook or Summary Plan Descriptions (SPD) posted on the 0UCweb

3 OUC FITNESS CENTER: Available for employees for a nominal fee. RECREATION FACILITIES: Recreational areas are available to employees and their families at The Pines at Windermere facility in Windermere, at the Indian River Power Plant intake fishing area, and at the Apollo Campground facility. VOLUNTEER PROGRAM: Employees are encouraged to volunteer in eligible organizations and may received OUC Bucks or monetary donations to the agency in which they volunteer. DISCOUNTS & OFFERS: Visit the OUCweb to view various discounts and offers on movie tickets, local attractions, car rentals, hotels and more! BENEFITS AVAILABLE AFTER 90 DAYS OF EMPLOYMENT SICK LEAVE FOR PERSONAL ILLNESS OR PERSONAL ACCIDENT: After 90 days of employment, full-time OUC employees earn forty (40) hours of paid sick leave and an additional forty (40) hours on the first employment anniversary date. Thereafter, eighty (80) hours of paid sick leave earned on each subsequent anniversary date. Sick leave may be accumulated. ACCIDENT LEAVE FOR ON THE JOB INJURY: After 90 days of employment, full-time OUC employees earn forty (40) hours of paid accident leave and an additional forty (40) hours on the first employment anniversary date. Thereafter, eighty (80) hours of paid accident leave on each subsequent anniversary date. Accident leave is accumulated to a maximum of 260 days. ADDITIONAL HOLIDAYS: Three (3) Floating Holidays of the employee s choice per calendar year. PLEASE NOTE: For all time accruals (Holiday, Vacation, Sick, Accident, etc.), part-time employees working 20 hours per week will receive 4 hours per day. Part-time employees working 30 hours per week will receive 6 hours per day. EDUCATION ASSISTANCE PROGRAM: Financial assistance is provided to OUC employees who wish to participate in the various educational programs offered at approved colleges, universities, vocational/technical/trade schools and other institutions of learning. Please refer to the Employee Benefits Handbook for details. SHORT TERM DISABILITY PAY: For off the job accident or illness, 60% of base weekly earnings are paid for a maximum benefit period of 52 weeks. This benefit is for full-time employees only. Part-time employees are not eligible for short term disability pay. BENEFITS AVAILABLE AFTER SIX (6) MONTHS OF EMPLOYMENT VACATION: Years of Service Vacation Days Years of Service Vacation Days 6 months 5 Days 10 to 14 years 18 days 1 to 4 years 10 days 15 to 20 years 21 days 5 to 9 years 15 days 21 or more years 25 days BENEFITS AVAILABLE AFTER ONE (1) YEAR OF EMPLOYMENT LONG TERM DISABILITY PAY: For an off the job accident or illness disability, a 60% of basic monthly earnings benefit is paid provided the disability has continued for 12 or more months from the date of injury or illness. SERVICE AWARDS: OUC has a formalized process to recognize the faithful service of its employees. The service award program provides recognition, based on years of service, beginning with the employee s five-year anniversary. Awards are continued every five years thereafter. This document is intended for summary purposes only. To have full detailed knowledge of any benefit listed on this summary, please refer to the Employee or Benefit Handbook or Summary Plan Descriptions (SPD) posted on the 0UCweb

4 ORLANDO UTILITIES COMMISSION HYBRID RETIREMENT PROGRAM SUMMARY PLAN DESCRIPTION Effective May 1, 2011, revised effective July 22, 2014 INTRODUCTION Orlando Utilities Commission (OUC) has established a Hybrid Retirement Program (the Program) consisting of the: OUC Defined Contribution Pension Plan (Defined Contribution Plan) OUC Cash Balance Pension Plan (Cash Balance Plan) Medical Subsidy provided through a Health Reimbursement Account (HRA) This Program is for employees who are actively employed on or after May 1, 2011, and enrolled in the OUC Defined Contribution Plan. The Program shall have an effective date of May 1, 2011, with benefits accruing to plan participants retroactive to their current date of hire. The plan year for the Program shall be OUC s fiscal year, October 1 through September 30. Participation in the Program shall be a mandatory for all eligible participants. This Summary is intended to be a plain language summary of the administration of benefits provided by OUC under the Program. While efforts have been made to provide an accurate summary, this document is not the official Plan document. If there is any conflict between this summary and the actual Plan documents, the actual plan documents will prevail. What is the official name of the plan? OUC Hybrid Retirement Program Who is the Plan Sponsor? Orlando Utilities Commission Who is the Plan Administrator? Orlando Utilities Commission located at Reliable Plaza 100 West Anderson Street Orlando, Fl

5 ELIGIBILITY AND PARTICIPATION The following employees are eligible for participation: Employees who are employed on May 1, 2011, and are active participants in the OUC Defined Contribution Plan. Employees hired on and after May 1, 2011, who are employed in regular OUC positions, including employees hired under Employment Agreements, unless such Agreement specifically excludes eligibility to the Program. Employees rehired on and after May 1, 2011, who were previously participants in the Defined Contribution Plan or the Defined Benefit Pension Plan. Commissioners whose service began on or after January 1, 2006 and who serve a minimum of eight years of service are eligible to participate in the Medical Subsidy. The following employees are not eligible for participation: Employees hired under temporary positions, temporary employment periods, or through staffing agencies or as independent contractors shall not be eligible for participation. If the individual is subsequently hired as an eligible employee, the period of temporary employment shall not accrue for contributions or service credits under the Program. Employees who met regular retirement criteria and have retired under the standalone DC Pension Plan are eligible to receive the medical subsidy benefits provided through the HRA based on their years of service. RETIREMENT ELIGIBILITY Employees will earn normal retirement benefits when one of the hybrid plan retirement criteria has been met as follows: Age 62 with a minimum of five years of continuous eligible service 30 Years of continuous eligible service. Previous service for rehired employees is not eligible toward the 30 continuous years of service. In the event of the death of an eligible employee while in active service, the employee shall immediately vest in the Program, and the beneficiary will receive all accrued benefits through the date of the employee s death. 2

6 DEFINED CONTRIBUTION PLAN Participation in the Defined Contribution Plan shall continue as currently provided in the Defined Contribution Summary Plan Description with the following conditions and modification: Vesting: Vesting at 100 percent of account balance is after one year of service. Mandatory Employee Contribution: Mandatory 4 percent pre-tax contributions based on an employee s eligible compensation. The amount of the annual pension contribution made by OUC on behalf of the employee is based on a percentage of an employee s regular base wages paid during the plan year excluding any bonus, deductions for absences, commissions, shift differential, overtime, or other forms of nonrecurring compensation paid to the employee. OUC Match Contribution: OUC will match the employee s 4 percent pre-tax contribution with a deposit directly to the employee s Defined Contribution Account. Employee Optional Pre-tax Contribution: Employee may make an additional 1 percent to 2 percent pre-tax contribution. This election is irrevocable and must be made within two years of employment. Employees who have elected the pre-tax election will not be eligible to change this election upon implementation of the Program, but will continue with the same elected optional pre-tax contribution. Employee Optional Post-tax Contributions: Employees can make 1 percent to 12 percent post-tax contributions on a voluntary basis. In total, optional contributions (pre tax and post tax) can not exceed 12 percent of base pay. Post-tax elections may be changed by the employee with 30 days notice. OUC Match Optional Pre-tax Contribution: OUC has been matching the first 2 percent of optional contributions. Effective May 1, 2011, this optional match will be discontinued. The Trustee of the Defined Contribution Plan: Fidelity Management Trust Company is the Trustee of the Defined Contribution Plan. CASH BALANCE PLAN Participation in the Cash Balance Plan shall be automatic. Contributions to the Cash Balance Plan will be limited to contributions from OUC and will be determined based on eligible employee compensation. Annual contributions will be determined based on an employee s eligible compensation and the pay-credit scale below. The pay-credit scale is determined based on an employee s age and years of service. The amount of the annual pension contribution made by OUC on behalf of the employee is based on a percentage of an employee s regular base wages paid during the plan year excluding any bonus, deductions for absences, commissions, shift differential, overtime, or other forms of nonrecurring compensation paid to the employee. Effective May 1, 2011, lump sum merit awards as defined in the personnel policies of the OUC shall be considered eligible compensation for the calculation of the annual pension contribution for the Cash Balance Plan. 3

7 A service credit is earned for every plan year in which the employee earns a minimum of 1,000 hours of eligible regular pay. A service credit is earned for FMLA, military leave, or approved paid leave. In order to receive credit for an approved leave of absence, the plan participant must return to work on the first business day on or before the last scheduled day of the approved leave. A service credit can be earned for an approved leave of absence up to 12 months; approved leaves exceeding 12 months will not be eligible for additional service credits. Service credit beyond 12 months may be approved for military service. Age is defined as the age of the employee on the most recent birthday immediately preceding the annual contribution date. Contributions will be made by OUC based on the table below. In all circumstances, an employee will receive the pay credit component based on their age. Earned service credits will be determined based on eligible hours within a fiscal year. Age Plus Service Pay Credit (% of pay) Age Plus Service Pay Credit (% of pay) % % % % % % % % Sample Cash Balance Plan Calculation Employee & other information Age plus Starting salary 25, % Interest Rate 4% % Age at hire date % % Sample Determination of Pay Credit Sample Accumulation of Benefits Estimated salary Years of Service Age Age & Service credt Pay credits Beginning balance Service credits earned Interest earned Ending balance $ 25, % $ - $ 1,500 $ 30 $ 1,530 26, % 1,530 1, ,245 28, % 3,245 1, ,127 29, % 5,127 1, ,190 31, % 7,190 1, ,448 33, % 9,448 2, ,261 35, % 12,261 2, ,333 37, % 15,333 2, ,683 39, % 18,683 2, ,331 42, % 22,331 2,957 1,012 26,299 4

8 The Cash Balance Plan will earn annual interest credits with a floor of 4 percent. The rate of interest shall be credited by December 31, of each year with an effective date of the preceding October 1 and shall be based on the Net rate of Return earned by the Defined Benefit Pension Trust as of the September 30 end of the preceding Plan Year. The following interest formula shall apply: Plan Investment Return Interest Rate 4.0% % > 4.0% and 8.0% % > 8.0% and 12.0% % > 12.00% % At implementation, the reach back portion of the Cash Balance Plan will earn interest credits at the floor rate of 4 percent. The guaranteed interest for inactive vested cash balance notional accounts shall be the established minimum interest rate. The contributions and interest credits will be made by OUC on an annual basis, after the close of the plan year, September 30. Contributions for participants retiring or terminating during the plan year shall be prorated for their final year of service. Participants will receive an annual statement with their account balance as of the end of the plan year. Vesting for the Cash balance will be five years of continuous service. The Trustees of the OUC Pension Plan shall be the Trustees for the Cash Balance Plan In the event of the death of an eligible employee while in active service, the employee shall immediately vest in the Medical Subsidy Plan, and the beneficiary can submit for medical expense reimbursements for the employee or eligible dependent(s) who is enrolled in the OUC Health Plan. MEDICAL SUBSIDY The medical subsidy benefit will be provided through a Heath Reimbursement Account (HRA) similar to a Flexible Medical Savings account. The retiree will be eligible to receive reimbursement of eligible medical expenses, including premiums; reimbursements will not be subject to income taxes. Medical subsidy benefits will be provided through a separate benefit funded with contributions of $400 for each year a service credit is earned. Prospectively, annual contributions will be adjusted for inflation. Commissioners whose service began on or after January 1, 2006 are eligible to receive an adjusted contribution so that the eight year length of service is equivalent to the employee s thirty year service. Prospectively, individual amounts will earn interest credits at rates consistent with the Cash Balance Plan. Medical subsidy benefits will be available only if an employee meets retirement eligibility and only for retiree and eligible dependents medical costs. 5

9 Upon retirement, the accumulated value of the contributions and interest credits will be placed in an HRA for the use of the retiree and eligible dependents. The balance of the HRA will not be subject to being forfeited at end of the calendar year but will roll over from year to year until exhausted. The Trustees of the OUC Pension Plan shall be the Trustees of the Medical Subsidy Benefit. TERMINATIONS RETIREMENT Employees who meet retirement eligibility will receive retirement benefits as follows: Defined Contribution Plan Lump sum distribution of the accumulated balance. Employee may elect a rollover option or other option as provided by the Defined Contribution Plan Administrator. Cash Balance Plan Lump sum distribution of the accumulated balance or the conversion of the lump sum amount to an annuity option. Medical Subsidy Lump sum distributions to HRA only. SEPARATION An employee who is separated from employment, voluntarily or not, prior to meeting retirement eligibility but meeting vesting requirements of each of the pension plans will receive benefits as follows: Defined Contribution Plan Lump sum distribution subject to one year vesting of employer contributions. Employee may elect a roll over option or other option as provided by the Defined Contribution Plan Trustee. Cash Balance Plan Benefits are forfeited if the separation is prior to the five year vesting. If vested, benefits will remain in the Cash Balance Plan, earning annual interest credits, until such time as the participant meets retirement eligibility, e.g. 62 years of age. OUC reserves the right to execute a lump sum distribution in the event of death or based on account balance prior to age 62. Medical Subsidy The medical subsidy is only available to participants who meet and retire under regular retirement eligibility provisions of the Program. REHIRE When a former employee is rehired, the employee s service tenure will restart and previous years of service will not be consolidated and/or combined. Service tenure also will restart for the purposes of meeting retirement eligibility. Former Vested and Non-vested Defined Benefit Plan Employee A rehired employee who was a participant in the closed Defined Benefit Plan will be enrolled in the Program effective on their date of rehire. Upon retirement, the employee will receive benefits earned under the Program and if applicable, the Defined Benefit Pension Plan. 6

10 Former Defined Contribution Plan Employee A rehired employee will be enrolled in the Program effective on their date of rehire. If the employee has retained their Defined Contribution Plan account after their initial separation, the account will be reopened for new contributions. Benefits received under the Defined Contribution Plan will be the accumulation of benefits vested during each of their employment periods. Former Vested Hybrid Retirement Program Employee A rehired employee will be enrolled in the Program effective on their date of rehire. If the employee has maintained the Defined Contribution Plan account after initial separation, the account will be reopened for new contributions. In addition, the Cash Balance Plan Account will be reestablished for new contributions. Upon retirement, the employee will receive those benefits earned under the Program for all vested periods of employment. Former Non-vested Hybrid Retirement Program Employee A rehired employee will be enrolled in the Program on the date of rehire. If the employee has maintained the Defined Contribution Plan account after the initial separation, the account will be reopened for new contributions. A new Cash Balance Plan account and HRA account will be established with no contributions for prior service credited. Upon retirement, the employee will only receive those benefits earned under the Program for the most recent period of employment. BENEFICIARY A beneficiary for the Program will be the person or entity designated by the employee to receive benefits, if any, payable upon the employee s death. Notwithstanding, the beneficiary will be the employee s spouse at the time of death unless: (a) (b) (c) (d) the employee has no spouse at the time of death, or the employee s spouse consents in writing to the designation of an alternate beneficiary in the manner prescribed in Section 4.09(b)(2), or the employee s spouse cannot be located. If no other person designated as beneficiary survives the employee, the beneficiary shall be the employee s estate. 7