DAVITA HEALTHCARE PARTNERS INC. EDUCATIONAL BENEFITS PLAN

Transcription

1 DAVITA HEALTHCARE PARTNERS INC. EDUCATIONAL BENEFITS PLAN 1. Purpose: DaVita HealthCare Partners Inc. ( DaVita ) maintains the DaVita HealthCare Partners Inc. Educational Benefits Plan (the Plan ) to allow DaVita and participating Employers to provide educational reimbursement and assistance benefits to Eligible Teammates. The purpose of the Plan is to pay for all or a portion of the costs of certain educational benefits. The Plan is intended to meet the requirements of a qualified educational assistance program under Code Section 127. To the extent that the amounts paid are not excludable from the Teammate s income under Code Section 127, it is intended that the amounts be treated as excludable under Code Section 132, to the extent permitted under that Section. To the extent that amounts are not excludable from the Teammate s income under Code Sections 127 or 132, such amount will be paid, at the discretion of the Employer, on a taxable basis. The Plan provisions as applied to one or more Employers may be modified by Appendices to the Plan. The terms and provisions of each Appendix are a part of the Plan and supersede the Plan s provisions to the extent necessary to eliminate inconsistencies between the Plan and the Appendix. The purpose of any Appendix shall be to customize the application of the Plan with respect to the Teammates covered by the supplement by providing, among other things, the following: 1.1. Any minimum time period a Teammate must work in order to be eligible to participate in the Plan and other restrictions on eligibility or participation, paid The maximum benefit amount and any limits on what expenses will be 1.3. Any limit on the number of courses a Teammate can take in a given time period or restrictions on the types of courses for which Plan payments will be available Any requirement of successful course completion and continued employment upon which payment may be conditioned, either wholly or partially. This Plan is amended and restated, effective January 1, Definitions: 2.1. Administrator means the individual or individuals as specified in the applicable Appendix who are appointed by the Benefits Committee to administer the Plan Accredited Institution means any college or university the primary function of which is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where its educational activities are regularly carried on, and which has been accredited 1

2 by a regional or national accrediting agency recognized by the United States Secretary of Education Benefits means the direct payment, advances or reimbursement of Covered Costs incurred by a Participant as specified in the Plan or applicable Appendix Benefits Committee means a committee appointed by the board of directors of the DaVita to administer the Plan Cause is defined in the discretion of the Employer Code means the Internal Revenue Code of 1986, as amended Covered Costs means Covered Educational Costs and any other costs eligible for reimbursement specified in the Plan or applicable Appendix Covered Educational Costs means the tuition, fees and similar payments and the cost of books paid for or incurred by a Participant in taking an Educational Course. Covered Educational Costs shall not include: the costs of any tools or supplies (other than textbooks) purchased by a Participant that the Participant may retain after a course has ended; the cost of meals, lodging or transportation incurred by a Participant incidental to taking an Educational Course; or expenses for courses involving sports, games or hobbies unless the education is reasonably related to the Employer s business or is required as a part of a degree program; provided that the phrase sports, games or hobbies does not include education that instructs Teammates how to maintain and improve health, so long as such education does not involve the use of athletic facilities or equipment and is not recreational in nature Educational Course means any undergraduate or graduate course taken by a Participant at an Accredited Institution Eligible Teammate means a Teammate who meets the eligibility requirements of the Plan or applicable Appendix Employer means DaVita HealthCare Partners Inc. and any affiliated companies which adopt this Plan with the agreement of the Benefits Committee Participant means any Teammate who has satisfied the eligibility requirements of Section 3.1 or an applicable Appendix. Plan Plan means the DaVita HealthCare Partners Inc. Educational Benefits Plan Year means the calendar year. 2

3 2.15. Teammate means any employee if the employee is reported on the payroll records of the Employer as a common-law employee. This term does not include any other common-law employee, independent contract or leased employee (as described in Code Section 414(n)). No benefits shall be provided under the Plan on a retroactive basis to any person who has performed services for an Employer as an independent contractor or as a leased employee, even if such person subsequently becomes a common-law employee of an Employer (or is deemed, by a government agency, court or other third party, to have been a common law employee of an Employer). Dependents of Teammates are not considered Teammates for purposes of this Plan and are not eligible to receive benefits under this Plan. 3. Eligibility and Participation: Only Eligible Teammates of the Employer may participate in the Plan to the extent declared eligible by the Employer or applicable Appendix, and subject to the conditions and limitations of the Plan or Appendix adopted by the Employer. Notice of the availability and terms of the Plan shall be provided to each Eligible Teammate within a reasonable period of time after the Teammate becomes eligible for Benefits under the Plan. Information on the procedures an Eligible Teammate must follow to participate in the Plan and to obtain Benefits will be distributed each Plan Year. Participation shall terminate upon the earliest of termination of the Plan, termination of employment with the Employer, or the failure to qualify as an Eligible Teammate under the Plan. 4. Benefits: 4.1. Except as otherwise limited in an Appendix or in Section 5, there is no annual benefits limitation on the Benefits an Employer can provide to each Participant A Participant shall be entitled to Benefits under this Plan only for Covered Costs incurred after he or she becomes a Participant in the Plan A Participant who desires to receive a Benefit under the Plan shall submit substantiation to the Administrator or its delegate for such Benefit no later than 30 days after the beginning of the Educational Course or Course(s) for which such Benefit is requested. Such request shall include: of enrollment; the name of the educational institution to be attended, and evidence the course or courses such Participant wishes to take; the tuition or other cost of such course; whether the Teammate is receiving any other public or private financial assistance for such education; any approvals, if required in an applicable Appendix. 3

4 an agreement to submit evidence of completion of such courses and the grade attained within 90 days after the end of the semester If the Covered Costs are approved, the Administrator will notify the Participant in writing of the approval. Until a Participant has received written approval, the Participant should consider a request for Benefits unapproved The Employer shall pay the Participant the Benefit the Participant is entitled to receive under the Plan within an administratively feasible period of time after determination. Reimbursement amounts are considered paid in the calendar year in which actual payment is made, regardless of when the Educational Course is taken. Paperwork related to an Educational Course that is received after December 15 of a calendar year will not be processed and paid until the following calendar year Within 90 days after the end of each semester, the Participant agrees to provide substantiation of the following: evidence of completion of the Educational Course; evidence of the grade received; expenses appropriate invoices and receipts showing actual costs and Failure to submit the required documentation within the required timeframe will result in a denial of reimbursement If a Participant ceases participation in the Plan for any reason: no Benefits shall be paid to the former Participant for expenses incurred after the date of such termination; and unless the former Participant voluntarily terminated employment or was discharged for Cause, requests for Benefits may be made within 90 days after the date of termination for Covered Costs incurred prior to such date. 5. Limitation on Benefits: 5.1. Other Sources: Covered Educational Costs shall not be reimbursed under this Plan to the extent that they are paid or payable by a third party source (e.g., student financial aid, grants, G.I. Bill, scholarships, fellowships) for which the Participant has no obligation to repay Requirements under Code Section 127: This Plan is intended to provide educational benefits to Eligible Teammates in accordance with Code Section

5 In no event shall a Participant be entitled to receive any Benefit under this Plan in lieu of any other compensation he or she might otherwise be entitled to from the Employer A Participant may not receive more than the maximum exclusion permitted under Code Section 127(a)(2) (currently $5,250) in Benefits for Covered Educational Costs under the Plan for the calendar year Not more than five percent of Benefits for Covered Educational Costs paid or incurred each year under the Plan shall be attributable to principal (5%) shareholders or owners of the Employer in accordance with Code Section 127(b) Any Benefits for Covered Educational Costs paid or incurred by the Employer that are excludable under this Section 5.2 shall not discriminate in favor of Teammates who are highly compensated employees (within the meaning of Code Section 414(q)) or their dependents Requirements under Code Section 132: Only to the extent that a Benefit cannot be excluded from a Teammate s income under Code Section 127, any remaining unreimbursed expenses for Covered Costs may be excludable from income under Code Section 132, to the extent such Covered Costs qualify as a working condition fringe benefit Any Benefits that cannot be allocated or coordinated in a manner to maximize the tax exclusions under Code Section 127 or 132 or to eliminate prohibited discrimination may instead, at the Employer s discretion, be paid as fully taxable benefits. 6. Administration: The Plan is administered by the Benefits Committee and/or such individuals as it or DaVita may designate to carry out any or all of its duties and responsibilities for administering the Plan. The Benefits Committee, from time to time, may adopt rules and regulations as may be necessary or desirable for the proper and efficient Plan administration and as are consistent with the Plan s terms, including rules and regulations relating to the initial and continuing eligibility requirements, the application process and the selection process. The Benefits Committee shall have the discretionary authority to construe and interpret the Plan including any supplements to the Plan adopted by an Employer and make factual determinations thereunder, including the authority to determine Teammate eligibility and the amount of Benefits payable under the Plan, and to decide claims under the Plan s terms. Any Plan interpretation and any decision on any matter within the discretion of the Benefits Committee, a designee or an Employer made in good faith shall be binding on all persons. 7. Claims Procedure: A Teammate who believes he or she is entitled to a Benefit under the Plan may submit a claim for Benefits to the Administrator. The claim shall be in writing and shall state the Teammate s name and the nature of Benefits payment under the Plan in a form acceptable to the Administrator. The Administrator will review and approve or deny the claim within 90 days of receiving it. If the claim is denied in whole or in part, the denial notice shall be in writing and shall specify a reason for the denial. Upon receipt of the written notice of denial, a Teammate shall have the right to a full and fair review of the claim by the Benefits Committee. To be so entitled, the Teammate or the Teammate s authorized 5

6 representative must submit a request for review to the Benefits Committee within 60 days after the receipt of the notice of denial. The Benefits Committee will act upon the review of the claim denial within 60 days after receipt of the written request for review. 8. Amendment and Termination: 8.1. The Plan may be amended by DaVita at any time or from time to time by action of its board of directors or its delegate, with prospective or retroactive effect, provided, however, that no amendment will reduce or eliminate Benefits retroactively The Plan, as applied to all Employers, may be terminated at any time by action of the board of directors of DaVita, or its delegate. The Plan as applied to any single Employer may be terminated at any time by such Employer provided that advance written notice of the termination is given to DaVita. Any Teammate enrolled in an approved course at the time of termination shall be reimbursed in accordance with the Plan s terms. 9. Miscellaneous: 9.1. No Contributions or Cash Option: Teammates are not required or permitted to contribute to the Plan Duplicate/Erroneous/Excess Payments: Teammates are responsible for making a full repayment of any duplicate, erroneous or excess payment from the Plan. If full repayment is not received, a Teammate will not be eligible to participate in the Plan in the future and will not be able to obtain any additional Benefits under this Plan. The Employer also is entitled to take any other actions it deems necessary to obtain reimbursement Funding: The Employer shall contribute the amount required to pay Benefits under this Plan out of the general assets of the Employer at the time such Benefits are to be paid. Unless otherwise specified in an Appendix, Benefits shall be paid to or for Participants upon the submission and approval of a claim for Benefits. There shall be no special fund out of which Benefits shall be paid Information To Be Furnished to the Committee: Eligible Teammates must retain and, when requested, furnish the Administrator, Benefits Committee or their Employer with such evidence, data or information as the Administrator, Benefits Committee or Employer considers necessary or desirable to administer the Plan. A fraudulent misstatement or omission of fact may be used to deny claims for Benefits Uniform Rules: The Benefits Committee shall administer the Plan on a reasonable and nondiscriminatory basis and shall apply uniform rules to all persons similarly situated Gender and Number: Where the context permits, words in the masculine gender shall include the feminine and neuter genders, the singular shall include the plural, and the plural shall include the singular. 6

7 9.7. Controlling Law: The taxation of amounts paid under this Plan shall be determined under the Code and applicable state income tax laws. Except to the extent superseded by the laws of the United States, the laws of Colorado shall be controlling in all other matters relating to the Plan. The Plan is not an employee welfare benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended Interests Not Transferable: Except as otherwise expressly permitted by the Plan or as may be required by the Code or any state s income tax act, Benefits under the Plan are not in any way subject to the debts or other obligations of the persons entitled thereto and may not be voluntarily or involuntarily sold, transferred, alienated, assigned or encumbered Severability: In the event that any provision of the Plan is held to contravene the provisions of the Code or the regulations thereunder, or any other applicable federal or state law, the remaining provisions of the Plan will nonetheless continue in full force and effect, and this Plan will be construed as though any invalid provisions hereunder had not been included herein, as of the earliest date that such invalid provision first came into conflict with the Code or any final regulations issued thereunder, or any other applicable federal or state law Employment Rights: Employment rights of a Teammate shall not be deemed to be enlarged or diminished by reason of establishment of the Plan, nor shall establishment of the Plan confer upon any Teammate any right to be retained in the service of an Employer or promoted by an Employer. IN WITNESS WHEREOF, DaVita HealthCare Partners Inc. executed and restated this Plan as of the date stated below. DaVita HealthCare Partners Inc. By: Title: Date: 7

8 APPENDIX A TUITION REIMBURSEMENT PROGRAM A-1. Introduction. This supplement to the DaVita HealthCare Partners Inc. Educational Benefits Plan sets forth the specific Plan provisions as they apply to the Benefits paid by the Employer to Eligible Teammates who continue their education by taking job-related courses or courses that fall within an approved career path. A-2. Eligibility. Any actively working Teammate in a benefit-eligible position employed by DaVita with more than 90 days of continuous service is eligible to participate in the Plan. To be eligible to participate, each Tuition Reimbursement Program Participant must maintain a satisfactory work performance level and must be actively at work in a benefit-eligible position during the duration of the course. A Teammate may not participate in Appendix A and Appendix C at the same time. A-3. Administrator. The Administrator is the delegate of the Benefits Committee. A-4. Application and Approval. Although not required, all requests for reimbursement should be submitted to the Teammate s supervisor for discussion and approval prior to the Teammate enrolling in an educational course. Requests for reimbursement for those educational courses not previously approved by a Teammate s supervisor may be denied. A Teammate must obtain the signature of the teammate s supervisor on the application for reimbursement of Covered Educational Costs. Generally, approval for reimbursement under the Tuition Reimbursement Program will be given only for Teammates taking job-related Educational Courses, or Educational Courses, including undergraduate and graduate courses, that fall within an approved career path. Special reimbursement arrangements may be necessary for programs structured in a non-traditional manner. Outside development courses and certification programs are not covered under this Tuition Reimbursement Program. All coursework must be completed on personal time and should not interfere with a Teammate s day-to-day work schedule. Participants also must complete, and receive a grade of C or better in the Educational Course to receive reimbursement. For those Educational Courses not graded on a traditional A-F scale, a passing grade is required to receive reimbursement. A-5. Amount of Benefits. Eligible teammates will receive 100% reimbursement (up to a maximum of $3,000 per calendar year) for Covered Educational Costs. A-6. Timing of Benefits. Reimbursements will be paid after satisfactory completion of each course or semester and after receipts and grades are submitted to the Administrator or its delegate. A-7. Reimbursable Educational Expenses. In order for an Education Course to be reimbursable, coursework must begin after meeting the eligibility requirements of the Program. Costs for coursework completed after termination of employment with DaVita is not reimbursable. 8

9 APPENDIX B LICENSING RENEWAL/CERTIFICATION REIMBURSEMENT PROGRAM B-1. Introduction. This Appendix to the DaVita HealthCare Partners Inc. Educational Benefits Plan sets forth the specific Plan provisions as they apply to Benefits paid for license reimbursement, and specific certification examinations for eligible Teammates. This Appendix has been approved only for the 2013 Plan Year, but can be continued for future years by action of the Benefits Committee. B-2. Eligibility. Any regular, full-time or part-time Teammate who provides direct patient care is eligible to submit an application to participate in the Program. Each Participant must maintain a satisfactory work performance level (Rating of 3, 4, or 5) and must successfully complete the requirements of the Program. B-3. Program. Administrator. People Services License Partners is the Administrator of this B.4 Application and Approval. Each Appendix B applicant must submit a completed program application, and submit documentation required by the Administrator. The application and all required documentation must be submitted to the Administrator (1) in the case of a license renewal, within 60 days of the license renewal date, or if later, August 30, 2013; or (2) in the case of a certification, within 60 days of passing the initial examination or the date of recertification. B-5. Amount of Benefits. Appendix B Participants who satisfy the requirements of the Plan and this Appendix shall be eligible for reimbursements. B-6. Timing of Benefits. Reimbursements of Covered Costs will be paid within a reasonable period of time after the Administrator receives all required documentation. Payment is conditioned on the Participant being actively employed at the time reimbursement is paid. B-7. Reimbursable Educational Expenses. For purposes of this Appendix B, Covered Costs shall only include: (1) fees for RN/LPN/LVN/RD/SW state license renewals due in 2013 for the Teammate s home state (including a national license renewal if the home state requires the Teammate to maintain both state and national licenses); (2) fees for Patient Care Technician initial and renewal certifications due in 2013 for the Teammate s home state (including a national certification if the home state requires the Teammate to maintain both state and national certifications). 9

10 APPENDIX C REDWOOD SCHOLARS EDUCATION ASSISTANCE PROGRAM C-1. Introduction. This Appendix C to the DaVita HealthCare Partners Inc. Educational Benefits Plan sets forth the specific provisions of the Redwood Scholars Education Assistance Program as they apply to payments for its Eligible Teammates who continue their education by pursuing nursing, associates, undergraduate, graduate or other job-related degrees. C-2. Eligibility. Any full-time or part-time Teammate (with a minimum of 24 hours per week) who has been employed continuously by DaVita HealthCare Partners Inc. ( DaVita ) for a minimum of one year as of the date of application is eligible to submit an application to participate in the Redwood Scholars Education Assistance Program. The Benefits Committee or its delegate may add any additional eligibility criteria that it deems necessary to ensure that the Teammate will be able to use education to directly benefit DaVita. A Teammate may not participate in Appendix A and Appendix C at the same time. C-3. Administrator. The Administrator is the Award Selection Committee, which shall be a committee of at least five but not more than seven Teammates appointed by the Benefits Committee, or the Award Selection Committee s delegate. C-4. Application and Approval. Each Redwood Scholars Education Assistance Program applicant must submit a completed application for the Redwood Scholars Education Assistance Program. Approval of the Redwood Scholars Education Assistance Program application is determined solely in the discretion of the Administrator. Application and approval are conditioned upon: a. the Participant s execution of and adherence to the Successful Completion Program Agreement b. the Participant s execution of and adherence to the Service Commitment Agreement c. the Participant s execution of and adherence to the Demand Promissory Note C-5. Amount of Benefits. Redwood Scholars Education Assistance Program Participants who satisfy the requirements of the Plan and this Appendix C shall be eligible for direct payment to the school or reimbursement of the Teammate s Covered Educational Costs up to a maximum as set forth below: Amount of tuition awarded: Teammate Pursuing an Undergraduate Eligible full-time Teammates: 75% of Covered Educational Costs, up to $25,000 per academic year Eligible part-time Teammates: 75% of Covered Educational Costs, up to $5,000 per academic year 10 Teammate Pursuing a Graduate Degree Eligible full-time Teammates: 50% of Covered Educational Costs, up to $25,000 per academic year Eligible part-time Teammates: 50% of Covered Educational Costs, up to $5,000 per academic year

11 Service Commitment 2 years after completion of the degree 3 years after the completion of the degree For purposes of the maximum award, full-time status will be determined at the time the application is approved. C-6. Timing of Benefits. Benefits will be paid upon submission of documentation required by the Administrator, showing the Teammate s acceptance to the approved program and total education costs. C-7. Reimbursable Educational Expenses. For purposes of this Appendix C, Benefits are conditioned upon meeting the requirements of the Successful Program Completion Agreement and Service Commitment Agreement. C-8. Repayment to DaVita HealthCare Partners Inc. If a Redwood Scholars Education Assistance Program Participant receives Benefits but fails to meet the requirements in the Successful Completion Agreement or Service Commitment Agreement or is involuntarily terminated for Cause then that Participant must repay DaVita in accordance with the terms of the Demand Promissory Note. C-9 No Guarantee of Future Benefits. No Teammate shall at any time have the right (a) to be selected as a Participant in this Program for any Plan Year, (b) if so selected, to be entitled automatically to Benefits, or (c) if selected as a Participant in one Plan Year, to be selected as a Participant in any subsequent Plan Year. A Teammate must reapply for Benefits each academic year with a complete application. 11