BENEFITS SUMMARY GUIDE This guide offers an overview of benefits offered to our employees and is intended to answer many benefits questions in one simple place. 2017 **Disclaimer: If a discrepancy exists between this guide and plan documents, Plan Documents are the final authority.
MEDICAL PLAN HIGHLIGHTS MMC offers two medical plans, giving you the opportunity to choose the plan that best fits your needs. Both plans are part of an Open Access network which allows you to visit more than 700,000 network providers and 6,000 network hospitals in the United States. When you need care, you simply go to your network provider of choice. You do not need to select a primary care clinic and you do not need referrals to see a specialist. Your plan may also allow you to see an out-of-network provider for a higher copay. Full-time employees are eligible for coverage the first of the month following employment. First, here are some healthcare definitions to help you navigate the information: Annual Deductible: Amount you pay in a calendar year before certain benefits are available. Annual Out-of-Pocket Limit: Maximum amount you pay for covered services each calendar year. The deductible and coinsurance apply to the limit - however copayments do not. Once your limit is met, most services are covered in full through the end of the calendar year. Copayments: Fixed dollar amounts (for example, $45) you pay for covered health care, usually when you receive the service. Coinsurance: Your share of the costs of a covered service, calculated as a percent of the allowed amount for the service, until you reach your annual out-of-pocket limit. Plan I This traditional plan provides network access to many services like: Convenience and online care Specialty care no referrals needed Prescription medicines Preventive care This plan provides coverage with a lower annual deductible and lower maximum out-of-pocket limit than Plan II, and includes prescription coverage and co-pays Plan II Plan II is a great option if you re looking for more control over your health care dollars. This plan combines a health savings account (HSA) with a high deductible health plan (HDHP) to give you full coverage. Plus, the money in your HSA is yours to keep, even if you change employers. This plan has a higher deductible and higher maximum out-of-pocket than Plan I. Because it is a HDHP, nearly all expenses (with the exception of preventive care) are subject to the deductible. 2
HEALTH SAVINGS ACCOUNT How does an HSA work? Think of an HSA as your bank account for medical costs. You can use the money in your HSA to pay for expenses under your plan's deductible or coinsurance. You can also use your HSA to pay for many other medical costs like: dental care, braces, vision care and LASIK surgery, hearing aids and tools to help you quit smoking. How does money get into my HSA? There are a couple of ways to put money into your HSA: Deductions from your paycheck Direct deposits that are allowed until April 15 of the next year Every dollar you put into your HSA is not taxed. As this amount grows over time, you can save it or spend it on eligible medical expenses tax free! Midwest Machinery will also contribute to your HSA! All participants receive a set amount each month deposited into their HSA. These funds are yours to keep and use as you see fit. How much can you put into your HSA? Each year the IRS sets limits on how much money you may contribute into your HSA that is linked to a high-deductible plan. FLEXIBLE SPENDING (SECTION 125)PLANS Midwest Machinery Company offers its employees a flex spending plan allowing participants to pay for company-sponsored health/dental insurance with pre-tax* dollars. Employees can also elect to defer pre-tax dollars to pay for eligible expenses for medical and/or dependent care. Full time employees are eligible to participate the first of the month following employment. Medical FSA A plan that allows you to pay your unreimbursed medical, dental, and vision expenses with pre-tax dollars. The current maximum election amount is $2,600 per year and is subject to change. Dependent Day Care FSA A plan that allows you to pay your dependent care expenses with pre-tax dollars. The maximum allowable reimbursement per IRS regulations is $5,000 per year. *Pre-tax means you pay no federal tax, no state income tax, and no social security tax on premiums or on any dollar amount set aside in the qualified plans and reimbursement accounts 3
DENTAL PLAN HIGHLIGHTS Available to all full-time employees the first of the month following employment. You pay nothing for: 20% Paid by Employee 50% Paid by Employee PREVENTATIVE SERVICES BASIC SERVICES MAJOR SERVICES Teeth cleaning, exams, dental x-rays Fillings Surgical periodontics and fluoride treatments Simple extractions Complex oral surgery Sealants Non-surgical periodontics Restorative crowns & onlays Endodontics (root canal therapy) Bridges, dentures & partial dentures Annual deductibles apply. Orthodontic care for dependents under age 19. ENHANCED COVERAGE FOR OUR LITTLE PARTNERS Network services for children 12 years old and under will be covered at 100% without deductible, annual maximum, or frequency limitations. Excluded services: Orthodontics, dental implants, and services that are not covered for all members. DIABETES AND PREGNANCY Additional periodontal services (exams, cleanings, scaling and root planning, and debridement) for members who are diabetic and/or pregnant are covered at 100% in-network. Employee Assistance Program (EAP) Your health and wellbeing are important to Midwest Machinery Co. Our EAP benefit includes a comprehensive array of counseling and web services that can be accessed 24/7 by our employees and their family members when facing a challenge. All services ae completely confidential and include unlimited phone calls and up to three face-to-face visits per incident. 4
401(K) RETIREMENT PLAN PLAN OVERVIEW As a participant in the plan, you will be allowed to defer from 0% to 100% of your gross pay up to a maximum federal limit toward your retirement. You have a choice on your deferral option. TRADITIONAL OR ROTH? Traditional contributions to our retirement plan are pre-tax and earnings grow tax-deferred until some future distributable event. The Roth option provides an alternative tax benefit to the traditional pre-tax model. With Roth contributions, you secure the tax benefit when you take the money out of the plan. As such, Roth contributions are contributed on an after-tax basis but withdrawals are tax-free. EMPLOYEE CONTRIBUTION Newly-hired employees who are at least 18 years of age will be automatically entered into the Traditional 401(k) plan at 3% beginning with the first paycheck of the month following 60 days of employment. In addition, following 1 year of employment, there will be an automatic increase of 1% per year up to 10%.Employees may chose to opt-out of both options. VESTING Vesting means that you have earned the right to a portion of the full amount of your Participant account. Once you have vested a portion of or the full amount of your account, that amount cannot be forfeited or taken away. All contributions you make, plus any investment earnings are always 100% vested. Employers matching contributions are vested according to a six year vesting schedule. EMPLOYER MATCH Minnesota Ag Power Inc. will make a matching contribution immediately upon enrollment. PAID TIME OFF (PTO) The company recognizes that employees need scheduled time away from normal work duties for their personal well-being. The company grants time off with pay to full-time employees through a bi-weekly accrual process that begins on the first date of hire. Employees earn additional time off on subsequent anniversary dates as their tenure with the company progresses. OBSERVED HOLIDAYS The company normally recognizes the following paid holidays: New Year s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day. 5
EMPLOYEE VOLUNTEER PROGRAM As a company we value the relationships we have with local organizations and recognize that the participation of employees in volunteer activities are positive and often vital roles. To support employees engaged in local volunteerism, all full-time employees are given time to volunteer at approved volunteer organizations. GROUP LIFE INSURANCE Group life insurance is provided to all full-time employees. Premiums for group life insurance are paid in full by the company. This coverage includes a term life policy with an AD&D rider. This coverage becomes available on the first of the month following your hire date. SHORT TERM DISABILITY Midwest Machinery Company provides all full-time employees Short Term Disability Income Protection Insurance. Coverage begins the first of the month following employment and there is no cost to our employees. If you experience an injury or illness outside of work you can earn 60% of your weekly earnings (up to $1,000 per week) for up to 12 weeks following a 7 day waiting period. SUPPLEMENTAL COVERAGE Midwest Machinery Co. has partnered with a third party vendor to offer the following supplemental insurance plans to meet the needs of your family. The following coverages are voluntary and paid by the employee. Long Term Disability Replaces 60% of your monthly earnings up to age 65 following a 90 day waiting period. Accident Helps with out of pocket costs incurred if an accident occurred. Critical Illness Pays out a lump sum benefit upon diagnosis of a covered condition. Whole Life Gives you the opportunity to add additional life insurance coverage for you, your spouse, child(ren) and grandchild(ren). 6
OTHER GREAT BENEFITS PROTECTIVE EYE-WEAR REIMBURSEMENT MMC will reimburse employees for the purchase of prescription safety eyewear for those employees whose positions require safety eyewear. TOOL ALLOWANCE Employees who, as a requirement of their position, provide their own set of tools will have available an annual dollar benefit to assist in replacing personal tools. DEALERSHIP DISCOUNT Employees may purchase parts or personal use items, such as lawn mowers, tools, etc. at a discounted price from retail. Employees or spouses outside business or farm use will not qualify. Parts and whole goods are to be sold at regular retail selling prices for outside business and farm use. Service work on personal-use items is also provided at a discount. REFERRAL/RECRUITMENT BONUS Employees who refer candidates for employment with MMC will receive a cash bonus provided certain conditions are met by the referred employee. UNIFORMS / MMC LOGO WEAR To project a consistent and professional image to our valued customers, uniforms are worn in many areas. Depending on your role within the organization, cost sharing for garments or laundering is offered. MMC also provides a clothing benefit for non-uniformed staff toward logo wear. Employees can have personal clothing embroidered with the MMC logo at no cost. 7