Insurance and Pension Benefits for your Employees

Insurance and Pension Benefits for your Employees

Bermuda s Legal Requirements & Overview of Argus Benefits Health Insurance What the law requires: Under the terms of the Health Insurance Act 1970 and its regulations, an employer is required to insure his employees and their non-working spouses for at least the Standard Hospital Benefit and to pay 50% of the legislated premium for this benefit. The Standard Hospital Benefit consists primarily of: in-hospital public ward accommodation, emergency and out-patient services, ground ambulance and 40 days of hospital accommodation per calendar year for mental and nervous disorders. What Argus offers: In addition to the Standard Hospital Benefit, Argus offers a comprehensive group health plan, including coverage for local and overseas expenses, to meet the needs of your employees. See page 5 for our Group Health benefits. Pensions What the law requires: Under the National Pension Scheme (Occupational Pensions) Act 1998, all employers are required to establish a pension plan for employees who are Bermudians or the husband or wife of a Bermudian, have reached the age of 23 years and have worked a minimum of 720 hours in any given calendar year. The assets of the plan must be held separately from the assets of the employer in order to protect them from creditors. 5 8 In addition to the above mandatory employer pension plan, employees must also be covered under the Bermuda Government Contributory Pension Fund administered by the Social Insurance Department. What Argus offers: Our Financial Institution Pension Plan for employers and our Prescribed Retirement Product for portability of benefits are fully compliant with the Act and its regulations. Our plans provide a full range of services including record keeping, administration, investment and retirement planning. See page 8 for our Pension plans. Argus Insurance and Pension Benefits

Life Insurance What the law requires: The Employment Act 2000 requires an employer to pay up to a maximum of 26 weeks wages upon the death of an employee from an occupational disease or accident resulting from that employment. It is not mandatory for employers to purchase a life insurance policy for their employees, however the Act specifically allows an employer to use life insurance benefits to meet his legal obligations in the event of 11 the death of an employee. 12 What Argus offers: Under the Argus Group Life Insurance plan, benefits are paid regardless of how death occurs. Our policy requires that employees work full-time for the employer for a minimum of 20 hours per week in order to qualify for coverage. See page 11 for our Group Life Insurance plan. Workers Compensation What the law requires: The Workers Compensation Act 1965 and its amendments states that an employer is liable to pay compensation in accordance with the provisions of the Act in the event of the death or temporary or permanent incapacity of an employee due to an occupational disease or accident resulting from that employment. Compensation can include any or all of the following: medical expenses, wage replacement while off work, benefits in the event of death and benefits in the event of permanent total incapacity. What Argus offers: Coverage for medical costs incurred through jobrelated accidents or illnesses, reimbursement of lost wages if an employee becomes temporarily disabled and benefits in relation to a work-related death or permanent disability. See page 12 for our Workers Compensation benefits. Table of Contents The Argus Advantage... 4 Payroll Tax Under the Payroll Tax Act 1995 employers must pay taxes on the value of all forms of remuneration including employee benefits, unless those benefits have been approved by the Tax Commissioner. To view all Bermuda s laws, visit www.bermudalaws.bm Argus Health... 5 Argus Pensions... 8 Group Life Insurance... 11 Workers Compensation... 12 Disability Insurance... 13 Contact Us at Your Convenience... 14 Other Products & Services... 15 Argus Insurance and Pension Benefits

The Argus Advantage Argus Group Holdings Limited and its subsidiaries, commonly known as the Argus Group, is Bermuda s oldest locally owned insurance company. Argus is a multi-line insurance and financial services organization offering a full range of insurance, pensions and investment products. We are proud to have protected our Bermuda based and International customers over the last 60 years and will continue to protect them in the future with innovative and attractive products and market leading customer service. Financial Security Argus is one of the largest and most financially secure local insurers in Bermuda. Serving Over 20,000 Customers in Bermuda Representing a third of the population, Argus designs its insurance and investment solutions with our customers in mind: In recognizing that it needed to do more than simply pay for the medical expenses of its customers, Argus introduced the first insuranceled wellness programme in Bermuda in response to growing concerns over rising health care costs. Our People Our customers tell us that it is our people who separate us from our competitors. They have come to expect friendly, efficient and professional service from our 150 staff at Argus who are recognized as being experts in the industry and who are well trained and highly respected by their industry peers. Argus is the leading provider of pensions in Bermuda and offers a full range of plans to satisfy the most sophisticated buyer. It was the first local insurance company to offer employees the opportunity to invest in mutual funds and to provide online access to pension balances. Argus Insurance and Pension Benefits

Health Argus Health Our Group Health Insurance Policy provides your employees with comprehensive coverage, access to quality care around the world and enables you to control premiums. Clarity and Choice Our benefits are clearly defined and our claim procedures are easy to understand. We offer multiple levels of healthcare to suit the various needs of each client. Competent Staff and Stateof-the-art Computer System Well trained and professional claims staff Excellent turnaround time for over 350,000 claims each year Employees reimbursed for out-of-pocket expenses within seven days of submitting their claim Medical consultants from United States and Canada to assist in difficult cases Access to extensive health knowledge databases that assist in paying claims The Argus Health Advantage Accurate and fair claims process Neo-natal care (see page 7) Well-baby care including routine examinations and immunizations Extensive overseas network on 7 continents and in 130 countries Coverage for dependent children up to age 19 (or 26 if a full-time student) Annual health examinations either in Bermuda or overseas Immunizations for adults and children Nutrition, diabetes and asthma education Pre-existing condition limitations apply to overseas treatment only Automatic conversion to an individual policy for your employees or their dependents on termination of their benefits Great Value As an established and respected insurer, our significant buying power enables us to obtain significant discounts at many of the world s finest healthcare facilities. We control premium increases by implementing cost-sharing alternatives, promoting responsible healthcare decisions and encouraging preventive care and healthy lifestyles. Our flexible policy enables you to choose the best combination of benefits for your employees and the vigilance of our claims professionals minimizes fraud and abuse that can increase costs. Argus Insurance and Pension Benefi ts 5

Health Our modular approach to health insurance makes our health plan easy to understand Argus Health Local Treatment & Services Comprehensive and flexible coverage of hospital, surgical, anaesthesia, medical and diagnostic treatment obtained in Bermuda Overseas Treatment & Services Emergency, referred and elective coverage of hospital, surgical, anaesthesia, medical and diagnostic treatment obtained outside Bermuda Worldwide Treatment & Services Benefits that can be obtained either in Bermuda or Overseas Health Insurance Act Benefits Health Insurance Act Benefits Prescription Drug Supplementary In-Hospital Major Medical Supplementary Miscellaneous Maternity Preventive & Diagnostic Home & Office Standard Major Medical benefits include: Emergencies covered at 100% provided that Argus Health is notified within 48 hours All other treatment within the Argus Network covered at 100% All other treatment outside the Argus Network covered at 80% Alternative overseas options are available. Pre-approval is required for maximum reimbursement Dental Vision Care Substance Abuse Rehabilitation Outpatient care in Bermuda Inpatient and outpatient care overseas Available to groups of 25 employees or more Visit our website at www.argus.bm for a current list of Preferred Provider facilities in the Argus Network 6 Argus Insurance and Pension Benefi ts

Optimize the physical and emotional wellbeing of your workforce! The Argus Wellness Programme We believe that the physical and emotional wellbeing of your workforce is paramount. Our products, services and the Argus Wellness Programme all exist to support and encourage your employees in their endeavours to achieve wellbeing in their lives. The Argus Group provides the Argus Wellness Programme FREE of charge to all Argus Health clients. We know that healthy employees are not only more productive, but also help to stabilize escalating healthcare costs. Argus Wellness Programme privileges include: Access to HealthMedia s online Health Risk Assessment, intervention strategies and tools Monthly Welllness Challenges and the monthly WellNotes Newsletter Worksite wellness strategy consultations Membership to the Argus Wellness Committees Network Benefits include: Less absenteeism Improved productivity Increased morale Reduced health claims submissions Argus Canadian Network Costs for premature babies and those with congenital birth defects can run well over one million dollars. That is why Argus partnered with Canada s premier children s hospitals to create the Argus neo-natal network. Canada has a fundamentally different billing structure and consequently fees are about half the cost that premier U.S. children s hospitals charge for comparable care. Feedback from both parents and physicians has been very positive. In addition, Argus has partnered with the Ottawa Heart Institute to open this world-class cardiac care facility to Bermuda patients. Argus Insurance and Pension Benefi ts 7

Health Pensions Argus Pensions All employees will need an income at retirement. One of the best ways to accumulate funds for retirement is through an employer-sponsored pension plan. Experience With over 50 years of experience, the Argus Pensions team administers more plans than any other provider in Bermuda. The Argus Pensions Advantage Administering your group pension plan is easy with Argus Secure online access to pension information including account balances and fund fact sheets Clear and concise communication, via presentations and employee booklets, ensures your employees understand the features and benefits of your plan Flexible pension payment options available at retirement Employee assistance with retirement planning in groups or individually Ongoing assistance with matters pertaining to compliance with pension legislation Focus on Client Service A dedicated Argus relationship manager and pensions administrator are assigned to your account Records are carefully maintained and updated Our reports and employee statements are easy to understand, timely and accurate We provide you with an administration manual for your human resources and/or payroll departments Contribution schedules and payments can be made electronically Fully Compliant Our Financial Institution Pension Plan for employers and our Prescribed Retirement Product for portability of benefits are fully compliant with the National Pension Scheme (Occupational Pensions) Act 1998 and its regulations. 8 Argus Insurance and Pension Benefi ts

Defined Contribution Plans The majority of the plans that Argus administers are Defined Contribution. This type of plan requires a set contribution to be invested until retirement when pension payments typically commence. Contributions Under defined contribution plans the total contribution, required by law, is currently a minimum of 10% of pensionable earnings Employers and employees must share contributions equally Termination of Service After two years of membership in the employer s pension plan, all required contributions will be vested and locked-in ; earlier vesting is allowed On termination, the value of an employee s benefit or his account balance must be transferred to the new employer s pension plan or an approved plan, or used to provide a life annuity commencing at retirement The employee s right to any cash payment is restricted to any cash option available prior to 2000 under the rules of the Plan Death Prior to Retirement If a member dies prior to retirement, the value of his contributions plus vested employer contributions are paid to his beneficiary. The Argus Website www.argus.bm As an employer you have access to a number of features including summary reports updated weekly and benefit details. Your employees can access their account information including account balances, contribution details and fund fact sheets. Other Plans Argus Pensions also administers: Defined Benefit Plans Deferred Compensation Plans Retirement Savings Plans Non-Bermudian Plans Profit Sharing Plans Trusteed or Unbundled Plans Retirement Normal retirement occurs at age 65 and early retirement is allowed from age 55. A member who continues employment after age 65 may elect to continue making contributions and the employer must match these contributions. Argus Insurance and Pension Benefi ts 9

Investment Management Global solutions to enhance your financial well-being About AFL Investments AFL is a Bermudian wealth management company that offers financial planning and investment services. AFL has grown to be one of the largest independent private wealth management companies in Bermuda with assets under administration as of March 31, 2010 just under $1 Billion. AFL is a joint venture between the Argus Group and Cidel Bank & Trust Inc., a global financial investment firm. AFL provides investment solutions to Argus Pensions, the island s largest pension provider, as well as to endowments, trusts, companies and individuals. For companies we offer enhanced cash management solutions as well as investment solutions specifically designed to meet your investment objectives. AFL brings world-class investment expertise to Argus and the Bermuda market by leveraging the investment experience and infrastructure of Cidel. The AFL Advantage At AFL, we focus on wealth management not just investment products. We strongly believe in the power of education when it comes to managing wealth. AFL supports Argus Pensions by providing marketing and pension investment updates to employee groups. These sessions are designed to educate employees on general market conditions, forecasts, and the performance of their pension funds and are delivered in an easy to understand format. These seminars can be scheduled through your pension administrator. Determining which pension strategy to select is sometimes difficult for employees. AFL has a dedicated financial consultant on staff to assist employees in selecting an appropriate investment strategy. In addition to pension seminars, AFL also offers lunch time financial learning sessions for your employees to help them manage and enhance their total financial well being. These seminars are free of charge and can be scheduled directly through AFL Investments. The Argus Select Funds The Argus Select Funds ( ASF ) offer a full range of actively managed multi-manager funds to meet your pension needs. These globally diversified funds are designed to minimize volatility within each risk tolerance and to generate consistent and stable returns in the long-term. Comprehensive monthly fund fact sheets are available on line at www.argus.bm. The security of your pension funds is paramount and AFL takes every opportunity to protect your assets in the following ways: An independent fund administrator sets weekly net asset values for the funds. The funds are audited annually The underlying allocations within the funds are actively managed to respond to changing market conditions Institutional funds are used exclusively to reduce total expense ratios The objective of ASF is to enhance your employees pensions through long-term absolute returns, not short-term relative performance. Underlying asset managers are selected based upon their long-term history of sound judgment and performance that is both predictable and appropriate. The funds focus on capital preservation and minimize risk through diversification of asset classes and risk/reward factors. AFL Investments 294-5715 www.aflinvestments.bm AFL Investments Limited is regulated and licensed to conduct investment business by the Bermuda Monetary Authority. 10 Argus Insurance and Pension Benefi ts

Group Life Insurance A Group Life Insurance policy permits an employer to respond in a meaningful way to the untimely death of an employee regardless of how the death occurs. Future Security Life insurance is protection. By insuring your employees you are providing their dependents with financial security through a plan that is both appropriate and affordable. Benefit Levels Multiple of Salary - typically one, two, three or four times annual salary Flat Benefit - such as $10,000, $50,000 or $100,000 Non-Medical Limit Each eligible employee will be entitled to a maximum amount of insurance without submitting Evidence of Insurability. Evidence of Insurability For employees eligible for benefits above the non-medical limit, a medical questionnaire must be completed by the employee and submitted for approval before coverage is granted. Additional Highlights Living Assurance Benefit An insured employee suffering from a terminal illness may receive up to 50% of the life insurance benefit (to a pre-set maximum) while still living. Payment will be made to the insured employee subject to all the terms and conditions of the policy. The amount of life insurance payable upon the death of the insured employee will be reduced by any Living Assurance Benefit payment. Voluntary Employee & Spouse Life Insurance In addition to life insurance for employees, we offer options for employees to purchase additional amounts of life insurance for themselves as well as for their spouse. If an insured dependent spouse dies while insured for Voluntary Life Insurance benefits, payment of the benefit will be made to the insured employee. Dependent Education Benefit Under our Accidental Death and Dismemberment policy, if an insured employee dies as a result of an injury, a benefit will be paid each consecutive year up to a maximum of four years for each of the insured s dependent children who is enrolled as a full time student and continues his education on a full time basis. Rehabilitation Benefit Under our Accidental Death and Dismemberment policy, if an insured employee incurs a covered loss as a direct result of an injury and requires participation in a formal rehabilitation programme in order to return to active employment, a benefit up to a maximum of $5,000 will be provided. Argus Insurance and Pension Benefits 11

Security Workers Compensation It is your duty to protect your employees; it is our responsibility to protect you. As an employer you are obligated to pay compensation in respect of accident, injury or illness to all active and full-time employees, arising out of and in the course of their employment, regardless of the type of work the individual does. Medical Benefits We protect your interest by offering coverage for medical costs incurred through job-related accidents or illnesses. Medical costs arising out of and in the course of employment which are required to be covered under the Workers Compensation Act 1965 and its amendments are excluded under a Group Health Policy. The advantage of having your workers compensation plan and health insurance plan with Argus is that these benefits are integrated. Compensation for Temporary Incapacity If an employee is disabled and unable to work, our standard disability benefit pays according to the Workers Compensation Act and is currently a flat amount per week. Alternative benefits, usually a percentage of salary up to a maximum of 75%, are available. The maximum duration of payments in the event of temporary incapacity is eight years. Compensation for Permanent Total Incapacity A sum equal to the actual earnings of the employee in the four years prior to the incident or four years of Bermuda s average annual per capita income, whichever is the lesser, is paid to your disabled employee. Compensation for Fatal Injury Your plan awards, to dependents, compensation that is equal to the actual earnings of the deceased in the three years prior to the incident or three years of Bermuda s average annual per capita income, whichever is the lesser. 1 Argus Insurance and Pension Benefi ts

Disability Insurance Few events have a greater impact on an employee than being disabled by sickness or an accident. We believe that an employee s return to a productive lifestyle, where possible, benefits the employer, the employee and the community as a whole. We can assist both you and your employees through a managed approach to disability. An Integrated Approach to Short and Long Term Disability At Argus, we focus on ensuring that your disability plans are integrated so that continuity of benefits is guaranteed. Short Term Disability Our Short Term Disability policy provides a weekly income benefit to employees who are unable to work due to injuries or illnesses. Long Term Disability Our Long Term Disability (LTD) policy provides a monthly income benefit for the protection of your employees should they become totally or partially disabled. Protection Against the Impact of Inflation Some disabilities may, unfortunately, last for years. Our LTD benefit protects the disabled employee from the impact of long-term inflation by indexing the benefit through the optional Cost of Living Adjustment feature. Return to Work Through our Partial Disability and Rehabilitation benefits, we encourage employees to return to work and, depending on the type of disability or the rehabilitation required, an employee s expenses during rehabilitation may be covered. Argus Insurance and Pension Benefits 13

Contact Us at Your Convenience Relationship Manager A dedicated relationship manager will assist you in establishing and administering your plans including giving employee presentations. Customer Service Centre Our Customer Service Centre provides one point of contact for your most frequently asked questions. Our highly trained customer service representatives take care of routine transactions in person and over the telephone. Please Contact our Customer Service Centre at 298-0888 or insurance@argus.bm 14 Argus Insurance and Pension Benefits

Other Products & Services In addition to meeting your employee benefit requirements, Argus can also meet your individual and commercial insurance needs as well as provide valuable investment services. Property & Casualty Insurance Commercial Fire Commercial Vehicle Business Interruption Theft Home and Contents Private Car & Motorcycle Travel Investment Services AFL Investments Limited provides a range of investment solutions to private and institutional investors. These services include: Discretionary portfolio management Custody and administration of third party funds Investment consulting and advisory services Comprehensive financial planning solutions For more information on any of our products or services, call a Relationship Manager or our Customer Service Centre at 298-0888 Argus Insurance and Pension Benefits 15

You ll enjoy our company Please call our Customer Service Centre at 298-0888 The Argus Group The Argus Building 14 Wesley St., P.O. Box HM 1064 Hamilton HM EX, Bermuda Tel: (441) 295-2021 Fax: (441) 292-6763 e-mail: insurance@argus.bm www.argus.bm