Guide for new employees BMO Nesbitt Burns Introducing your benefits January 2018 As a BMO Nesbitt Burns (BMO NB) employee, you have access to a wide range of benefits to help you plan for and respond to different events in your life. Through our benefits program, BMO Nesbitt Burns provides you and your family with access, choice, education and financial support to: Stay healthy Protect your income Find balance in your life and Save for the future Your benefits are a valuable part of your total rewards at BMO Nesbitt Burns. You may be eligible for all or many of these benefits: Health and security benefits These include medical, dental, insurance and income protection benefits. Wellness and work-life effectiveness programs These include vacation, leaves of absence, LifeWorks and Best of BMO. Retirement and savings These include the Employee Retirement Plan, Employee Share Ownership Plan (ESOP) and the health and insurance benefits that begin when you retire from BMO Nesbitt Burns. Our vision is to be the bank that defines great customer experience. Our focus is clear, and every dollar counts in achieving our commitment to our customers. Therefore, we ensure that our benefits plans provide value in the most costeffective way. Our philosophy is that benefits are a partnership: the cost is shared by both BMO Nesbitt Burns and its employees. This helps to focus everyone s attention on managing benefits costs and using benefits wisely. This gives us the flexibility to create opportunities for you to buy additional cost-effective coverage to meet the benefits needs of you and your family. We are pleased to provide this overview of the benefits that will be available to you as an employee of BMO Nesbitt Burns. When you are hired, you will have online access to detailed benefits information through myhr on the HR Intranet and mybenefits. Your health and security benefits Page 2 Your wellness and work-life effectiveness benefits Page 6 Retirement and savings programs Page 8 1
Your health and security benefits BMO Nesbitt Burns lets you create a benefits package that meets the unique needs of you and your family. Each year, you will receive flex dollars based on the cost of a standard package of dental, medical and life insurance benefits for you and your eligible dependants. You use these flex dollars to help pay for the cost of a customized package of benefits that you choose for you and your family. If the cost of your chosen package is more than your flex dollars, you pay the difference through payroll deductions. If your needs change, you can adjust your benefits choices during annual enrolment, and whenever your family status changes ( a qualifying life event ), such as a marriage or the birth of a baby. You are eligible to join BMO Nesbitt Burns benefits program on your first day of employment if you are a regular employee with FTE 20% or higher*. The following pages outline the program. You will be notified via email of your benefits enrolment opportunity in mybenefits. Definitions Full-time equivalent (FTE) This is the percentage of full-time hours that you work. An employee with FTE 100% works 35 hours per week; FTE 20% means 20% of full-time hours (i.e., 7 hours per week). If you work less than 50% of full-time hours, you may have less coverage or fewer choices than an employee who works full-time. Spouse Your spouse is the person to whom you are legally married, or a person with whom you have lived openly in a common-law relationship for at least 12 months. Eligible Child * Unless Eligible indicated children otherwise, include the benefits natural, outlined adopted in this guide or step-children are not available who to Temporary are under employees. age 21 (or under 25 and attending school full-time). Adult children with disabilities who are dependent on you may also be eligible, at any age, if their disability existed while they would have met BMO Nesbitt Burns definition of a child. * Unless indicated otherwise, the benefits outlined in this guide are not available to Temporary employees. 2
Your health and security benefits (cont d) Your flex dollars Medical Plan NOTE: Proof of good health is not required for BMO s Medical Plan. Any option can be selected without restriction. Employees: FTE 50% to 100% Choice of 5 options, all include the Emergency Travel plan. Highlights from those options: Core: Catastrophic emergency coverage only Basic: 50% of eligible expenses, including: private duty nurse (to $25,000 every 3 years) semi-private hospital room up to $400 per year combined for psychologists and social workers up to $400 per year combined for paramedical practitioners, including 80% vision (to $250 every 2 years) Comprehensive*: 80% of eligible expenses, including: private duty nurse (to $25,000 every 3 years) semi-private hospital room up to $800 per year combined for psychologists and social workers up to $800 per year combined for paramedical practitioners, including 80% vision (to $300 every 2 years) Enhanced*: 90% of eligible expenses, including: private duty nurse (to $50,000 every 3 years) semi-private or private hospital room up to $1,500 per year combined for psychologists and social workers up to $1,500 per year combined for paramedical practitioners, including 80% vision (to $400 every 2 years) You must remain in this option for 2 years Spousal Coordination: (designed for employees with access to another medical plan) 20% of eligible expenses, including: private duty nurse (to $25,000 every 3 years) semi-private hospital room up to $200 per year combined for psychologists and social workers up to $200 per year combined for paramedical practitioners, including Cover the cost of the employee portion for Comprehensive, and half the cost for the dependant portion if family coverage selected. * Québec residents: This plan covers all prescription drugs mandated by provincial legislation. Also, eligible children are covered to age 26. 3
Your health and security benefits (cont d) Your flex dollars Medical Plan BC MSP Dental Plan Employees: FTE 20% to 49.9% 50% of eligible expenses, including private duty nurse (to $25,000 every 3 years) up to $400 per year combined for psychologists and social workers up to $400 per year combined for paramedical practitioners, including 80% of semi-private hospital room 40% vision (to $125 every 2 years) emergency travel plan If you live in British Columbia, BMO pays 50% of your provincial Medical Services Plan premium. Employees: FTE 50% to 100% You can elect No Coverage or one of the following options: Basic: 50% basic/preventive, 0% major restorative up to $600 per year combined Comprehensive: 80% basic/preventive, 50% major restorative up to $1,500 per year combined Enhanced: 90% basic/preventive, 60% major restorative up to $2,000 per year combined; 50% orthodontia up to $2,000 per lifetime You must remain in this option for 2 years Spousal Coordination: 20% basic/preventive; 50% major restorative (designed for employees with access to another dental plan) Employees: FTE 20% to 49.9% You can elect No Coverage or Basic: 50% basic/preventive, 30% major restorative up to $600 per year combined Cover the cost of the employee portion and half the cost for the dependant portion if family coverage selected. No flex dollars are provided. Cover the cost of the employee portion for Comprehensive, and half the cost for the dependant portion if family coverage selected. Cover the cost of the employee portion of Basic and half the cost for the dependant portion if family coverage selected. Health Spending Account Survivor Benefits Business Travel Accident Insurance If you have flex dollars remaining after selecting your benefits, they are deposited to this account to spend on medical, dental or vision care expenses that are not covered by your options. Flex dollars are tax-free when deposited to this account. You may elect to have excess flex dollars paid to you as taxable cash. Your survivors may continue access to BMO Nesbitt Burns medical and dental benefits, LifeWorks and Best of BMO at no cost for 12 months in the event of your death. Provides accident coverage for you while you are on business anywhere in the world in addition to any personal accident coverage you may have purchased through the Employee, Spouse or Child accident insurance plans. This coverage is automatically applied from your first day of your employment, and no enrollment is required. Basic benefit: 3 x your Benefits Base Rate to a maximum $600,000. ** Your Benefits Base Rate reflects your base pay, commissions and incentives. 4
Your health and security benefits (cont d) Your flex dollars Life Insurance Accident Insurance Short-Term Disability (STD) Plan Long-Term Disability (LTD) Plan Employee: Coverage options from $10,000 to 10 times your Benefits Base Rate*. Proof of good health not required at initial enrolment. Spouse: Coverage options up to $250,000. Your spouse does not need to provide proof of good health if you enroll your spouse when you first join BMO. Child: Coverage options up to $20,000. Employee: Coverage options up to $1 million. Spouse: Coverage options up to $600,000. Child: Coverage options up to $200,000. If you are unable to fulfill the duties of your job due to illness or injury for a period of time, you may be eligible for a level of income protection under the STD plan for up to 26 weeks. BMO Nesbitt Burns provides this protection at no cost to you. Participation is mandatory. At your first enrollment, you may elect any LTD option without providing proof of good health. Any subsequent change to a higher LTD option will require proof of good health. Choice of 5 options: Comprehensive and Enhanced options available with cost-of-living (COLA) protection against inflation. Maximum LTD benefit is $18,400/month. Cover the cost of 1 x your Benefits Base Rate (BBR). No flex dollars provided. If coverage is selected, paid by you through payroll deductions. Not applicable. No flex dollars provided. Premiums are paid by you through payroll deductions. Basic: 45% of first $40,000 of BBR; 30% of the balance up to $150,000 BBR Comprehensive No COLA: 55% of first $40,000 of BBR; 40% of the balance up to $150,000 BBR Comprehensive With COLA: 55% of first $40,000 of BBR; 40% of the balance up to $150,000 BBR + COLA feature Enhanced No COLA**: 65% of first $40,000 of BBR; 50% of the balance up to $150,000 BBR Enhanced With COLA**: 65% of first $40,000 of BBR; 50% of the balance up to $150,000 BBR + COLA feature ** Top-up available: 40% of BBR over $150,000 to $500,000 ** COLA is applied at 100% of the consumer price index (CPI) to a maximum of 5% each year. ** Your Benefits Base Rate reflects your base pay, commissions and incentives. 5
Your wellness and work-life effectiveness benefits In addition to the health and security benefits, BMO Nesbitt Burns provides a wide variety of ways to help you manage your family and personal commitments, goals and financial plans. Vacation Employees begin earning vacation on the first day of employment. The number of paid vacation days is determined by grade and accumulated years of service with BMO. Accumulated years of service with BMO 1 or more years to less than 10 years 10 or more years to less than 20 years Vacation entitlement in hours * Grades 1 to 6 Grades 7 and above In days In hours In days In hours 15 days 105 20 days 140 20 days 140 20 days 140 20 or more years 25 days 175 25 days 175 The chart above is for a full-time employee (35 hours/week).vacation is prorated based on standard hours for part-time employees. Example for a part-time employee: A grade 4 employee scheduled to work 25 hours per week is entitled to 75 hours of vacation per year, calculated as follows: Full-time annual entitlement hours X Standard hours/week Vacation entitlement for the year of hire is prorated based on the employee s start date. All vacation must be taken between January 1 and December 31 each year. Vacation not taken is not paid out and can only be carried over with prior approval from management. / 35 hours = Prorated annual entitlement hours 105 x (25 / 35) = 75 People Care Days Compassionate Care Leave and Leave Related to Critical Illness Paid time off for a few hours or a few days, at the discretion of your manager, to help you balance work and family commitments (e.g., to manage family issues, education-related activities, and participation in community or charity events). Eligible employees who require time away from work to provide care or support to someone close to them who is gravely ill are eligible for leave. * If your FTE is less than 100%, vacation time and pay will be prorated to reflect your FTE. 6
Your wellness and work-life effectiveness benefits (cont d) Pregnancy Leave Birth mothers are eligible for up to 17 weeks of Maternity/Pregnancy Leave and may qualify for Employment Insurance (EI) benefits To recognize a period of post-partum recovery, top-up payments are provided for the first six weeks after delivery Benefits can continue during this period Note: Different provisions exist under the Quebec Parental Insurance Plan. Parental Leave Birth mothers can elect between a Parental Leave of up to 35 weeks or up to 61 weeks. Adoptive parents, mothers, and fathers can elect between a Parental Leave of up to 37 weeks or up to 63 weeks. While on leave, employees may be eligible for EI benefits Benefits can continue during this period BMO has a six-week top-up payment program for all employees who are eligible for EI benefits while on parental leave Note: Different provisions exist under the Quebec Parental Insurance Plan. Tuition Reimbursement Program LifeWorks 100% reimbursement of tuition costs for undergraduate-level courses and specialized programs to a maximum of $5,000 per calendar year. 80% reimbursement of tuition costs for graduate-level courses and EMBA programs to a maximum of $8,000 per calendar year. LifeWorks is a comprehensive resource centre that offers information and practical solutions to help you be productive on the job while caring for loved ones and meeting personal needs. It is available to you and your family, 24 hours a day, 7 days a week. LifeWorks offers many services, including: the Employee Assistance Program (EAP), which provides confidential, short-term counselling and support to help you manage and resolve personal issues BMO s Back-up Child Care program, which enables you to maintain your focus on the customer and other workplace priorities by offering short-term emergency child care if your regular child care arrangements break down.* Best of BMO Best of BMO provides employees with specialized service and offers on a wide range of products and services including: Employee banking BMO Mastercard Mortgages Lines of credit Loans Investment products BMO Insurance products * The use of this service is a taxable benefit. 7
Retirement and savings programs BMO Nesbitt Burns provides several ways to help you save for the future and prepare for retirement. Savings programs Employee Share Ownership Plan The Employee Share Ownership Plan (ESOP) provides an opportunity for you to become an owner of BMO through the purchase of BMO common shares. As an owner, you can benefit from the value that you help to create, while saving for your retirement and longterm goals. There is no waiting period to join. When you contribute a percentage of your Benefits Base Rate (BBR) as little as 1% of your BBR* you receive matching contributions from BMO Nesbitt Burns. BMO Nesbitt Burns matches 50% of the first 6% of your contributions, up to a maximum of $3,000 per year. Your contributions are made through bi-weekly payroll deductions and can be directed to a Registered Retirement Savings Plan (RRSP), a Tax-Free Savings Account (TFSA) or a non-registered, taxable Employee Profit Sharing Plan (EPSP). BMO Nesbitt Burns contributions are directed to a tax-sheltered account, unless you have them directed to the EPSP. BMO Nesbitt Burns monitors its contributions and will automatically redirect them to the EPSP once the tax-sheltered limit is reached. Withdrawal penalties may apply depending on how long you have participated in ESOP and when you make the withdrawal. Employee Savings Program You can accumulate savings for the future with both a Registered Retirement Savings Plan and a non-registered Savings Plan. Investment options are: BMO Mutual Funds Bank of Montreal Guaranteed Investment Certificates (GICs) As a BMO Nesbit Burns employee, if you receive a Short-Term Incentive Award, you have the option to transfer all or a portion of it to Registered Retirement Savings Plan under this program. * Maximum BBR of $100,000 8
Retirement and savings programs (cont d) Employee Retirement Program The Employee Retirement Program consists of core contributions and a matched voluntary component. The program helps you accumulate retirement savings based on your contributions, BMO Nesbitt Burns contributions and total investment earnings. Your retirement income from the program will depend on your accumulated balance and the cost of annuities at the time of your retirement. You will be automatically enrolled in the program and begin participating on the next available pay period following six (6) months of continuous employment. Retiree benefits You will be eligible for Retiree Benefits if immediately before retirement if you: are a member of the Employee Retirement Plan; were covered by the employee benefit plan; have reached the age 55+; are working 20 hours or more per work week; and are living in Canada and covered under a provincial health care plan. BMO Nesbitt Burns pays for your retiree benefits. Dental Medical Life Insurance Best of BMO and LifeWorks Coverage for preventive and major dental services. Annual maximum of $1,500 per person per calendar year. Combined lifetime maximum for medical and dental of $20,000 each for you and your dependants. Coverage for prescription drugs, hospital, paramedical practitioners, private duty nursing, vision care, hearing care, other medical supplies and services and out-of-country emergency medical. Specific coverage limits apply. $25 deductible on prescription drugs. Combined lifetime maximum for medical and dental of $20,000 each for you and your dependants. Flat $7,500 benefit You continue to participate when you retire from BMO Nesbitt Burns. This document does not confer any contractual rights or obligations. The actual benefit plan terms are governed by official contracts and plan documents. If any discrepancies between the contents of this document and the official documents should arise, the terms of the contracts and plan documents will apply in all cases. BMO Nesbitt Burns reserves the right to suspend, amend or terminate any or all benefits and change rates at any time. 9