RBC Wealth Management Benefits Highlights for Non-Financial Advisors - 2017 RBC Wealth Management offers competitive, comprehensive benefits, many of which are briefly described below. To be eligible for Health and Welfare benefits, you must be on RBC s U.S. payroll and regularly scheduled to work 20 or more hours per week. All employees on RBC s U.S. payroll are generally eligible to participate in the 401(k) Plan. Health and Welfare Benefits Medical (premium rates provided on pages 4-5) Employees may choose from five medical options administered by BlueCross BlueShield of Minnesota: Consumer Directed Health Plan (CDHP) Plan A with Health Savings Account (HSA) Plan B with HSA Basic (Preferred Provider Organization) Premium High Indemnity All medical options provide coverage for the same services, such as preventive care, hospital and physician services, mental health and chemical dependency services; however, each option may cover these services at different levels. Coverage is available to employees and eligible dependents, including children, spouses or domestic partners, and the children of spouses or domestic partners. Coverage begins on the first day of employment. All options offer an unlimited lifetime maximum benefit and do not require referrals for specialists. Health Savings Account (HSA) Employees who elect coverage under one of the CDHP medical options will have an HSA established.* This account can be used to pay for eligible health care expenses on a pre-tax basis. RBC contributes $500 per year for single coverage and $1,000 per year for all other coverage levels, whether or not the employee contributes additional amounts. Note: HSAs are not available to employees enrolled in Medicare or receiving Social Security benefits. Prescription Drug Employees who elect coverage under one of RBC s medical options automatically receive coverage under the Prescription Drug program at no additional cost. The program is administered by Express Scripts and includes a number of features to help employees save money on their prescriptions, including low copayments under most options for generic drugs and mail-order service for long-term medications. Vision (premium rates provided on pages 4-5) The Vision program provides coverage for many routine eye care needs, including annual comprehensive eye exams, eyeglass frames and lenses, or contact lenses. Dental (premium rates provided on pages 4-5) Employees may choose from two dental options administered by Delta Dental of Minnesota. Both the Premium and Basic options include complete coverage for preventive services. Once employees meet the annual deductible, both options cover most basic services at 80 percent of allowable levels. The Premium option also includes a benefit for major services, such as crowns, bridges, implants and orthodontics. Benefit levels are the same whether employees use a dentist who is part of the Delta Dental network or not, although allowable limits may apply when non-network dentists are used. Flexible Spending Accounts (FSA) RBC offers three types of FSAs that let employees pay for eligible expenses with pre-tax dollars, reducing taxable income and increasing take-home pay. FSA options include: Traditional Health Care FSA employees enrolled in a non-high deductible health plan at RBC or elsewhere; Limited Purpose Health Care FSA employees enrolled in one of RBC s high deductible health plans; Dependent Care FSA. Commuter Spending Accounts The Commuter Spending Account (CSA) program allows employees to pay for eligible mass transit and/or parking expenses on a pre-tax basis. The IRS allows participants to contribute up to $255 per month for each type of expense. After-tax contributions are also available. Short-Term Disability (STD) The STD policy provides short-term income protection. This coverage is provided at no cost to employees, and coverage begins on the first day of employment. The first five days of an approved short-term disability are deducted from the employee s accrued paid time off or are unpaid. After five days, the plan provides income for eligible disabilities for up to 12 weeks. The amount of STD benefit an employee receives is based on length of service as outlined below. Length of Service (as of the first day of absence) Weeks of STD Coverage at 100% of Pay Weeks of STD Coverage at 60% of Pay Less than 3 months 0 12 3 months < 12 months 3 9 1 year < 3 years 7 5 3 years < 5 years 9 3 5 or more years 12 0 Page 1 of 5
Long-Term Disability (LTD) Employees have two LTD coverage levels to choose from. The Basic Plan provides 50% coverage and is paid for by RBC. The Premium Plan provides 60% coverage and is available at an additional cost. This program provides pay replacement for disabilities lasting longer than 90 days. If an employee is disabled and the claim is approved, LTD benefits begin on the 91 st day and last as long as the employee remains disabled, according to plan provisions. The maximum eligible covered earnings are $300,000 per year. Basic Life RBC provides term life insurance under the Basic Life program at no cost to the employee. Coverage is equal to one times the employee s annual covered earnings*, up to a maximum benefit of $300,000. Supplemental Life Employees have the option to enroll in supplemental life insurance through the Supplemental Life program. The program offers coverage from one to eight times annual covered earnings*, up to a maximum of $2 million. Employees may also elect coverage for their spouse/domestic partner up to $1 million, and up to $10,000 for their dependent children. Guaranteed issue amounts are available up to certain coverage amounts. Rates depend on age, tobacco-use status, and coverage amount. An employee must elect coverage for him/herself under the program in order to enroll a spouse/domestic partner or child. Business Travel Accident Insurance RBC provides eligible employees with Business Travel Accident coverage equal to three times annual covered earnings*, with a maximum benefit of $300,000. This benefit is provided at no cost to employees. Domestic Partner Benefits RBC offers employees the option of covering an eligible domestic partner (of the same or opposite sex) on RBC s medical, dental, vision, and dependent life insurance programs. Premiums for this coverage are deducted throughout the year on an after-tax basis and RBC s contributions are treated as taxable income to the employee, as required by the IRS. RBC provides employees with a lump sum tax equivalency payment at the end of each calendar year to cover the cost of taxes for domestic partner medical, dental and vision coverage. The payment includes the estimated amounts owed by the employee for federal, state and city taxes. The payment is made to employees who were enrolled during part or all of the calendar year and remain employed as of December 31. Accidental Death and Dismemberment Employees may elect coverage in the Accidental Death and Dismemberment (AD&D) program from $10,000 to $1,000,000, up to a maximum of ten times annual covered earnings*. This optional program allows employees to cover themselves and their families in the event of death or dismemberment resulting from an accident. Special Note about Retiree Medical/Dental Benefits At RBC, we determine eligibility for retiree health care benefits based on age and length of service at the time of retirement. If an employee is at least 55 years old and has a minimum of ten years of service at RBC, then the employee, their spouse/domestic partner and their eligible dependent children may enroll in the RBC Retiree Medical and Dental programs. RBC U.S.A. Retirement and Savings Plan (401(k)) Employees who are paid by RBC in the U.S. are generally eligible to participate in the 401(k) plan upon hire and will be automatically enrolled at 3% unless they opt out. The 401(k) Plan gives employees the option to contribute up to 50% of eligible compensation on a pretax basis, on an after-tax basis as Roth contributions, or as a combination of pre-tax and Roth contributions up to the IRS contribution limit for the year ($18,000 in 2017). In addition to pre-tax and Roth contributions, employees may contribute up to 5% of their eligible compensation on an after-tax basis, up to the IRS compensation limit ($270,000 in 2017). Employees who will be age 50 or older in 2016 may elect to make catch-up contributions and/or Roth catch-up contributions, up to the IRS catchup contribution limit ($6,000 in 2017). Employees are eligible to receive company matching contributions on the first day of the month after they have completed one year (12 months) of employment. The company match is a fixed, dollar-for-dollar match on the first 6 percent of pay that an employee contributes to the plan, up to the IRS compensation limit. Both pre-tax and Roth 401(k) contributions are eligible for the company match, up to a combined total of 6 percent. Restrictions may apply based on job title. Employees are always 100% vested in their own 401(k) contributions. Employer matching contributions are vested according to a 5-year vesting schedule. RBC s 401(k) Plan offers a range of mutual fund investment options, the RBC company stock fund, Target Date Funds, and a self-directed mutual fund brokerage account. Living Well RBC s Living Well program provides employees with tools and resources to help make positive changes in their health and life. Additionally, employees can earn incentives for participating in Living Well activities throughout the year. Page 2 of 5
Additional Benefits Holidays RBC Wealth Management follows the holiday schedule of the securities industry as defined by the New York Stock Exchange. Generally, the firm is closed on the following designated holidays. New Year s Day Martin Luther King, Jr. Day Presidents Day Good Friday Memorial Day Fourth of July Labor Day Thanksgiving Day Christmas Day Additionally, employees receive one floating holiday to be used during the year. Paid Time Off RBC provides Paid Time Off (PTO) for eligible employees for the purpose of rest, relaxation, occasional illness, personal and family needs. PTO accrues monthly (daily, in California only) and accrual amounts are determined by an employee s work schedule, exemption status (non-exempt or exempt), position level and length of service. Annual PTO Accrual for employees with a 40-hour per week work schedule Service Anniversary Years 1* & 2 *year 1 is pro-rated Non-Exempt Employees Exempt Employees Executive Level 16 days 20 days 30 days Years 3 through 9 20 days 24 days 30 days Years 10 through 19 25 days 27 days 30 days Years 20 + 30 days 30 days 30 days Leaves of Absence The company has various leave of absence policies including, but not limited to, Bereavement, Jury Duty, Military, Personal and Family Medical Leave. See below for more information on Maternity Leave. Maternity Leave The company provides birth mothers with twelve weeks of Maternity Leave paid at 100 percent. For commission- and/or fee-based employees, earnings in excess of $200,000 are not covered by this policy. Coverage begins on the first day of employment. Parental Leave The company provides Parental Leave for eligible employees, other than birth mothers, upon the birth, adoption or foster care placement of a child/children in their own family (birth mothers receive maternity leave). Employees with a minimum of one year of service can receive pay for up to two weeks of parental leave. Employee Assistance Program RBC s EmployeeCare program provides personal resources and practical solutions to help manage various aspects of work and personal life. This program offers employees and their qualifying dependents support on everyday issues, as well as confidential, professional counseling for urgent or complex life situations. Whether employees need help managing stress or relationships, preparing for a new baby or for retirement, RBC EmployeeCare can help. RBC EmployeeCare also provides access to referrals for community resources, online articles, newsletters, booklets and audio recordings. It s confidential and available 24/7 at no additional cost. Gift Matching The company offers an Employee Gift Matching program which matches contributions made by RBC Wealth Management employees to help meet the financial needs of qualified non-profit organizations and educational institutions. Employee Volunteer Grants RBC offers individual and team Employee Volunteer Grant programs to recognize employees and teams who volunteer their time with qualified non-profit organizations in their community. Employees and teams who volunteer at least 40 hours with a charitable organization during the fiscal year can apply for a grant for their organization. Tuition Reimbursement RBC offers a tuition reimbursement program to eligible employees with at least one year of service and has an overall performance level of high performing or better. Annual reimbursement is based on manager approval as well as length of service and may be up to $15,000. Career Opportunities RBC is committed to supporting employees pursuit of professional growth and development within the company. Employees can explore opportunities within RBC Wealth Management and across RBC through internal job postings. Employee Referral Program Employees can earn a cash bonus by referring qualified candidates hired for open positions within RBC. Adoption Assistance The company provides financial assistance to employees who are adopting by providing up to $3,000 per child for adoption-related expenses, as well as a resource and referral program. Page 3 of 5
Medical, Dental and Vision Monthly Employee Premiums for 2017 To encourage healthy lifestyles, RBC charges non-tobacco users $40 per month less for medical premiums. It s proven that using tobacco has long-term detrimental effects on health. Non-tobacco users have longer life expectancies and generally experience lower risk of developing serious health conditions in the future. NON-TOBACCO USER RATES Medical (includes Prescription Drug Coverage) Dental Vision Plan A Plan B Employees earning less than $50,000 per year Basic Premium High Indemnity Basic Premium Employee Only $35 $17 $58 $124 $502 $13 $23 $6.12 $82 $41 $129 $270 $1,058 $28 $52 $13.16 Employee + Children $64 $33 $102 $221 $843 $28 $47 $9.94 Employee + Family $173 $87 $240 $428 $1,460 $40 $82 $17.46 Employees earning between $50,000 and $150,000 per year Employee Only $72 $37 $99 $216 $609 $13 $23 $6.12 $159 $81 $215 $453 $1,277 $28 $52 $13.16 Employee + Children $126 $63 $170 $356 $1,016 $28 $47 $9.94 Employee + Family $310 $155 $390 $712 $1,764 $40 $82 $17.46 Employees earning between $150,001 and $250,000 per year Employee Only $93 $46 $122 $248 $672 $13 $23 $6.12 $186 $94 $243 $502 $1,387 $28 $52 $13.16 Employee + Children $157 $78 $203 $405 $1,118 $28 $47 $9.94 Employee + Family $356 $178 $441 $784 $1,919 $40 $82 $17.46 Employees earning more than $250,000 per year Employee Only $99 $49 $130 $263 $715 $13 $23 $6.12 $197 $100 $259 $533 $1,474 $28 $52 $13.16 Employee + Children $167 $83 $216 $430 $1,188 $28 $47 $9.94 Employee + Family $379 $189 $468 $833 $2,040 $40 $82 $17.46 Page 4 of 5
TOBACCO USER RATES Medical (includes Prescription Drug Coverage) Dental Vision Plan A Plan B Employees earning less than $50,000 per year Basic Premium High Indemnity Basic Premium Employee Only $75 $57 $98 $164 $542 $13 $23 $6.12 $122 $81 $169 $310 $1,098 $28 $52 $13.16 Employee + Children $104 $73 $142 $261 $883 $28 $47 $9.94 Employee + Family $213 $127 $280 $468 $1,500 $40 $82 $17.46 Employees earning between $50,000 and $150,000 per year Employee Only $112 $77 $139 $256 $649 $13 $23 $6.12 $199 $121 $255 $493 $1,317 $28 $52 $13.16 Employee + Children $166 $103 $210 $396 $1,056 $28 $47 $9.94 Employee + Family $350 $195 $430 $752 $1,804 $40 $82 $17.46 Employees earning between $150,001 and $250,000 per year Employee Only $133 $86 $162 $288 $712 $13 $23 $6.12 $226 $134 $283 $542 $1,427 $28 $52 $13.16 Employee + Children $197 $118 $243 $445 $1,158 $28 $47 $9.94 Employee + Family $396 $218 $481 $824 $1,959 $40 $82 $17.46 Employees earning more than $250,000 per year Employee Only $139 $89 $170 $303 $755 $13 $23 $6.12 $237 $140 $299 $573 $1,514 $28 $52 $13.16 Employee + Children $207 $123 $256 $470 $1,228 $28 $47 $9.94 Employee + Family $419 $229 $508 $873 $2,080 $40 $82 $17.46 The company s benefit plans are governed by the summary plan descriptions (SPD), carrier contracts and company policies. In the event of a discrepancy between this document and the SPDs, contracts or policies, the language in the SPDs, contracts or policies will govern. Additional information about RBC U.S.A. Benefit Plans will be provided to you upon employment. *Covered Earnings are defined as your 401(k)-eligible earnings for the prior 12-month period ending September 30 or your current base salary (whichever is higher). Your 401(k)-eligible earnings include base salary, overtime, short-term incentive and commissions. Your covered earnings are automatically updated each January 1. Earnings are prorated for employees who have worked with RBC for less than 12 months. Page 5 of 5