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2014 Employee Benefits Open Enrollment

October 14 – November 1

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Great News for 2014!• New plans• More choices• 0% increase for medical,

dental and vision• Opportunity to

decrease medical premium expenses

• Personalized enrollment help for everyone

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Mountain Top ViewHeading into our third year of our high deductible health plans, we can unequivocally say that our three fold strategy is working!

• Goal #1: To beat down health care trend to stabilize premium costs for the company and for our employees even in the midst of healthcare reform– Healthcare trend increases for high deductible health plans averages 6 – 8%, PPO

increases range 8 – 12% and HMO increases range from 12 – 15%

• Salient Results: We have averaged a 1.7% increase per year over the three years even when healthcare reform was adding costs into our plans

• 0% increase at 1st anniversary• 5% increase at 2nd anniversary• 0% increase at 3rd anniversary

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Mountain Top View (continued)• Goal #2: Provide an opportunity for our employees to begin saving for

future retiree health expenses using Health Savings Accounts (HSAs)– Salient’s contribution to employees’ HSA accounts is on the “high

side” of industry averages • Average is $500/$1,000• Salient contributes $750/$1,500

• Salient Results:– Employees’ account balances have steadily increased

• PEACE OF MIND – accumulated savings can be built up to offset any potential out-of-pocket expenses in a given year

• SAVINGS FOR THE FUTURE – with the increased account balances, employees are putting money away that can be used for future expenses (retiree healthcare or COBRA)

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Mountain Top View (continued)• Goal #3: Provide high-quality insurance plans which offer

choice along with both short- and long-term protections• Salient Results:

– Salient’s coinsurance after the deductible is met and underlying insurance plan is on the “high” side of industry averages.

• Industry average is 80%/60% ; Salient’s plan is 90%70%• Robust insurance protections

– Adding third medical plan for 2014 to offer additional choice, lower premiums and provide simplicity

• Lowest premiums for employees! Salient is paying an additional 10% towards premiums for the Value Plan

• Once deductible is met, eligible expenses are paid at 100% for remainder of year• As HSA balances have grown, employees have opportunity to “afford” higher

deductible

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Ground-level View • It’s all about personal

choice– Adding third medical plan– Raised deductible and

out-of-pocket in Standard Plan with a resulting 7% drop in premium costs

– Adding additional voluntary insurance plans to help protect against deductible expenses

• Engage me!– New wellness program

with easy to use tools– Improved pricing tools

on Cigna site to predict healthcare costs

– Open Enrollment road show

– Concierge benefit enrollment experience

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What’s Not Changing in 2014?• Our commitment to your health and well being• Our continued belief in the value of consumerism• Providing you a full complement of products and

services• Premiums for medical, dental, vision• Benefit partners for medical, dental, vision, life, and

disability

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What’s New in 2014?New Benefit DescriptionAddition of new medical plan(Once deductible is met, all covered expenses paid at 100%)

Value PlanIn Network Deductible & OOP -- $3,750/$7,500Out of Network Deductible & OOP -- $7,500/$15,000Lowest premiums and highest company contribution

Accidental Death & Dismemberment Insurance

Insurance that pays in the event of an accidental death or loss of limb, eyesight, etc.

24-Hour Accident Insurance Serves as supplement to medical plan and pays regardless of other coverage; Helps minimize out-of-pocket expenses due to accidents (dislocations, fractures, burns, concussions, etc.)

Critical Illness Insurance Protects against serious health problems such as stroke, heart attack or cancer; Benefit pays a lump sum upon first diagnosis of a covered condition

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What’s Changing in 2014?Current Benefit New BenefitHigh Premium/Low DeductibleLow Premium/High Deductible

Name Change to Premium PlanName Change to Standard Plan

Low Premium/High DeductibleIn Network Deductible -- $2,000/$4,000Out of Network Deductible -- $4,000/$8,000In Network Out of Pocket -- $4,000/$8,000Out of Network Out of Pocket -- $8,000/$16,000

Standard PlanIn Network Deductible -- $2,500/$5,000Out of Network Deductible -- $5,000/$10,000In Network Out of Pocket -- $5,000/$10,000Out of Network Out of Pocket -- $10,000/$20,000Premiums decreased by 7%

Short-term Disability Plan Same benefit but moving to new set of rates based on age

WageWorks for FSA/HRA/Transit/COBRA New Partner – Flores & AssociatesEnhanced services

Chase Bank for HSA Accounts New Partner – HSA Bank for HSA AccountsTransfer information at OE appointments

HSA Company Contributions$750/$1,500 per yearExtra $187.50 or $375 for wellness award

HSA Company Contributions$562.50/$1,125 per yearExtra $187.50 or $375 for wellness award

Limeade Wellness Program MotivateMe! Wellness Program

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2014 Contribution LimitsContribution Type Annual Limit for 2014401(k) $17,500

401(k) Age 50+ $17,500 + $5,500 Catch-up

Healthcare Flexible Spending Account* $2,500

Limited Purpose Flexible Spending Account* $2,500

Dependent Care Flexible Spending Account* $5,000

Health Savings Account*: Participation in Wellness Program

Employee Only: $2,550Family (2 or more): $5,050

Health Savings Account*:Non-Participation in Wellness Program

Employee Only: $2,737.50Family (2 or more): $5,425.00

*You must make your contribution election through a Benefit Educator if you want to contribute to any of these accounts.

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2014 Benefit PartnersBenefit Partner401(k) Transamerica Retirement Services

Medical Cigna Healthcare

Pharmacy Express Scripts

Dental United Concordia

Vision Vision Service Plan

Life, Disability, Supp Life and Supp AD&D MetLife

Health Reimbursement Accounts, Flexible Spending Accounts, Commuter and COBRA

Flores & Associates

Health Savings Accounts HSA Bank

Accident and Critical Care Insurance UNUM

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Health Care ReformHow it Impacts All of Us

• The Patient Protection and Affordable Care Act requires Salient to:– Cap healthcare FSA contributions at $2,500– Display the value of your health insurance benefits on your

W-2– Provide a Summary of Benefits and Coverage (SBC) prior to

open enrollment– Provide the Health Insurance Marketplace Coverage

Options notice by October 1– New fees added into premium rates

Our Medical PlanDares to Be Different

Optimizes both employer and employee costs today and into the future

– Medical cost escalation– Tax optimization– Retiree health savings

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A Plan For Today and TomorrowHealth Savings

Account

Helps Pay Deductible

Tax Deductible Deposits

Tax Free Growth

Tax Free Medical,

Dental and Vision Care

High Deductible Health Plan

Excellent Insurance Protection

Safety Net For Big Medical

Bills

Limited Purpose Flexible

Spending Account

Can be paired with HDHP and used for

dental and vision

expenses

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A Great Plan In Sickness

• Absolute out-of-pocket maximum per year– Drugs and medical

expenses combined• Health Savings Account to

offset deductible expense• Best in class medical and Rx

provider• Freedom to choose network

or non-network providers

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And a Great Plan In Health• Superb insurance coverage

at affordable premium rates• 100% preventive care

benefit for whole family• Absolute yearly out-of-

pocket maximum costs• Employer provided Health

Savings Account that is always yours – now and into the future.

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Value Plan Details• One and Done

– Deductible and Out of Pocket are the exact same

– After satisfying deductible, expenses are paid at 100% for rest of year

• HSA Wellness Contribution for employee + spouse/partner

• Lowest premium plan– Rates more highly

subsidized by Salient (81% for employee only and 69% for employee + other)

• Same excellent medical and Rx coverage

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The Tax Man Cometh

• Important tax rules governing all pre-tax accounts

• Understand the rules and apply them to your best advantage

• There are many options – spend time during your enrollment session discussing how to optimize your tax savings.

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Health Savings Accounts• Salient will contribute

– Up to $750 for employee– Up to $1,500 for

employee + 1 or more– Wellness contribution

only for the Value Plan• Opportunity for you to save

taxes while setting aside money to pay for deductible and out of pocket expenses

• Must not be covered under any other health insurance plan (spouse/partner, VA, Tricare, COBRA, retiree plan, Medicare, etc.)

• Triple Tax Protected• Portable – always yours• Can be used for medical, Rx,

dental and vision expenses• May be combined with a

Limited Purpose FSA for additional tax savings

Benefit Accounts

All of these accounts are subject to IRS rules and regulations. This chart is intended for summary purposes only.20

Health Savings Account (HSA) Health Reimbursement Account (HRA)Eligibility: Must be enrolled in CIGNA domestic plan and must not have any other insurance (TRICARE, VA, Spousal Plan, Retiree, etc.)

Eligibility: Must be enrolled in CIGNA domestic plan. May have additional health coverage outside of Salient.

Salient contributes to Premium and Standard Plans:$750/$1,500 if wellness activities completed$562.50/$1,125 if wellness activities are not completedEmployee May Contribute:$2,550/$5,050 if wellness activities completed$2,737.50/$5,425 if wellness activities not completed

Salient contributes to Premium & Standard Plans:$750/$1,500 if wellness activities completed$562.50/$1,125 if wellness activities are not completed

Salient contributes to Value Plan:$187.50/$375 if wellness activities completedEmployee May Contribute:$3,112.50/$6,175.00 if wellness activities completed$3,300.00/6,550.00 if wellness activities not completed

Salient contributes to Value Plan:$187.50/$375 if wellness activities completed

IRS Pretax Limit for 2014 for all contributions:$3,300 – Employee Only$6,550 – Employee + One or More

Limited to Employer Contributions Only

Balance rolls from year to year and portable upon leaving. Balance rolls from year to year. Balance upon termination from plan is forfeited to Salient.

Can be used for medical, Rx, dental or vision expenses Can be used for medical, Rx, dental or vision expenses

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Which Plans Work TogetherSalient Medical Plan Election Eligible for HSA or

HRAEligible for General FSA

or Limited FSAPremium Plan (high premium/low deductible)

HSA Limited FSA

Standard Plan (low premium/high Deductible)

HSA Limited FSA

Value Plan (lower premium/higher deductible

HSA Limited FSA

Decline Salient Medical Insurance Neither General FSA

Any Salient Medical Plan and Medical Plan with another provider (TRICARE, spouse’s plan)

HRA General FSA

Pharmacy: Express Scripts• Prescriptions are part of the high deductible plan

– Preventive drugs are not subject to the deductible– All other drugs are subject to deductible and out of pocket

limits– Very large national network of pharmacies

• Once deductible is met (e.g. $1,500 for employee only or $3,000 for family) employee pays 20% of cost up to max. per below

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Retail Prescription Mail Order PrescriptionGeneric Max of $30 Generic Max of $75

Formulary Max of $60 Formulary Max of $150

Non-Formulary Max of $100 Non-Formulary Max of $250

TRICARE Supplement• If you are enrolled in DEERS and TRICARE, you may elect to

participate in the TRICARE Supplement on a pre-tax basis– Supplement provides coverage for out-of-pocket expenses associated

with TRICARE Prime or Standard or Extra coverage– For more information please visit:

http://www.asicorporation.com/faq_corporate.html• You may supplement TRICARE through Salient’s CIGNA high

deductible health plan– No HSA, but can have a HRA (Health Reimbursement Account) with a

company contribution– May elect to have a FSA to pay for additional medical, dental or vision

expenses

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UCCI PPO Dental Plan• Strong network across the U.S.• Same Coverage for In- or Out-of-Network Provider• Preventive Services- covered at 100% (includes

cleanings, exams, x-rays)• Basic Services - covered at 80% • Major Services - covered at 50%• Orthodontia - covered at 50%, lifetime maximum

benefit of $2000.00; coverage available for adults and children

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UCCI PPO Dental Plan

• Plan Year Deductible - Individual $50- Family $150

• Annual Maximum - $2000 per member• Dental deductible plan year currently runs April 1

through March 31• 2014 will be a short plan (April 1 through December 31)• Beginning 2015, the dental deductible will run calendar

year (January 1 through December 31)

Vision Service Plan (VSP)• Employee paid vision plan, offered through VSP• Largest vision network in the nation• Benefits from a VSP Participating Provider:

– Routine Vision Exams: $10 copay, every 12 months– Lenses: $25 copay, every 12 months– Frames: $25 copay, every 24 months– Contact Lens (in lieu of frames and spectacle lenses): No

copay, every 12 months – maximum benefit $130.00 annually

• Reimbursable benefits vary for non-participating providers

Note: VSP guarantees service from VSP doctors only. When you see a VSP provider, you’ll get the most out of your benefit and have a lower out-of-pocket cost.

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Life and Disability Plans

Name of Plan Benefit DetailsBasic Life 1 x base salary up to $100k; company paid core benefit

Basic AD&D 1 x base salary up to $100k; company paid core benefit

Voluntary Life EE - Up to 5 x base salary to maximum of $500,000; $160k guarantee issue at hireSP - Benefit available up to $250,000; guarantee issue $25,000CH - Maximum guarantee issue $10,000

Voluntary AD&D EE – Lesser of 10x annual salary or $500,000EE + SP – 50% of Employee amountEE + SP + CH – Spouse 40% of employee amount, each child, 10% of employee amountEE + Child(ren) – each child 15% of employee amount

Voluntary Short-term Disability

60% of base salary capped at $2,500 weekly maximum benefit

Long-term Disability 40% of base salary capped at $10,000 monthly maximum; company paid core benefit

Voluntary Buy-up to LTD Additional 20% on top of company-paid 40%; total of 60% of base salary capped at $10,000 monthly maximum

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Voluntary STDCurrent STD Plan• Salient’s rates are coming off

a three year rate guarantee based on a very low average age and very favorable experience

• Salient STD premium was a single premium for everyone

• ATS employees remained on age-banded premium rates

• High utilization rates for both groups

2014 STD Plan• STD Plan moving to age

banded rates for everyone• Keeping same 7 day waiting

period• Rates are increasing for

everyone– Less impact to ATS

employees

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Accident Insurance• Protects against a wide

range of accidents including dislocations, fractures, burns, concussions etc.

• Coverage for employee, spouse and/or dependent(s)

• Scheduled lump sum payout based on type of accident

• Pays regardless of other insurance

• Minimizes high deductible exposure due to accidents

• No health questions• Fully portable

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Critical Care Insurance• Protects against serious health problems such as stroke, heart

attack or cancer• Lump sum benefit paid upon first diagnosis of a covered

condition• Coverage available for employee, spouse or dependent(s)• Fully portable

Work-Life Benefits

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Building Your Retirement Account• The convenience and

automated features offered by Salient’s plan make it easier for you to save -- you may hardly miss the additional savings going toward your future

• By saving your own money, you build a larger retirement account, you receive the company’s matching contribution and you save Federal, State and FICA taxes

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401(k)

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Eligibility Must be 21 or older and meet the 30 day waiting periodParticipation begins the first of the month following the 30-day waiting periodEnroll at sfs.trsretire.com or 1-800-755-5801

Automatic Enrollment

All new employees automatically enrolled at 3% contribution rate after 90 days of employment. Beginning January 1, 2014, contributions will auto increases each November 1 by 1% until 6% is reachedYou may opt out of auto enrollment at sfs.trsretire.com

Maximum Contribution

$17,500 Employees who reach age 50 before the end of the calendar year may contribute an additional $5,500 – Max contribution of $23,000

Elective Deferral

You may contribution 0% - 100% of pre-tax payroll deductions up to annual limit

Employer Match

50% of up to 6% of your eligible contributions

Partner Transamerica Retirement Services

Flores Qualified Transportation Expense Account

• Participation via pre-tax payroll deductions – reduce your taxable income now

• There is no annual enrollment period, so you can enroll anytime.– Change your contribution to your transit and/or parking account(s) on a

monthly basis.– Unlike other pre-tax programs, there is no need to worry about spending

your account balance by the end of the year. Any leftover dollars are automatically rolled over into the next plan year for your use. No Forfeitures!

• Qualified Commuting Expenses – tax free (subject to 2014 approval)– Transit and vanpool expenses up to $245 per month ($2,940 per year)

and– Qualified parking expenses up to $245 per month ($2,940 per year)

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CIGNA Employee Assistance Program

• Provided at no cost to you• Variety of services

including:– Personal relationship

management;– Financial planning;– Career management– Legal consultation– Child/Eldercare referrals– Stress Management

Call 1-877-622-4327 or log into www.cignabehavioral.com Employer ID: Salient

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Motivate Me!

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For 2014 Salient has partnered with Cigna’s Motivate Me! Program to provide an interactive, exciting Wellness Program.

Salient is committed to providing comprehensive, affordable benefits and helping sustain and improve the overall health and well-being or you and your family. Salient Wellness is designed to fit into your everyday schedule and lifestyle.

More information coming soon!

Motivano Shopping DiscountsMotivano offers Salient employees access to exclusive discounts from thousands of top brands.• Apparel (e.g. Aeropostale, Banana

Republic, Eddie Bauer, DSW, etc.)• Beauty & Fragrance (e.g. Sephora,

Elizabeth Arden, Walgreens, etc.)• Computers & Electronics (e.g. Dell, Apple,

TurboTax, Sony, etc.)• Health & Wellness (e.g. Camping World,

Gold’s Gym, GNC, WeightWatchers, etc.)• Automotive (e.g. Advance Auto Parts, Avis

Rental Cars, Liberty Mutual, etc.)• Home, Garden, Pets (e.g. Pet Insurance,

Home Insurance, Brookstone, Ace Hardware, etc.)

Save on everyday purchases: https://intranet.salientfed.com/Main/AppPages/Home.aspx Click on Salient Employee Discounts

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Employee Leisure Discount Programs• Employees can take advantage of

discounts and special offers to popular theme parks and entertainment attractions nationwide.

• Discounts are available for:– Walt Disney World Resort– Universal Studios– SeaWorld– Six Flags– Cirque du Soleil - Las Vegas and

New York City performances – Movie Tickets

• Company Code: Salient

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Open Enrollment Basics

• Open Enrollment begins October 14 and ends of November 1

• Only time during the year you can make changes unless you have an IRS qualifying event

• All employees must enroll either through the call center or through a benefit educator

• 2013 benefit elections will not carry forward to 2014

• Current benefit elections are available via NuView https://hr.salientfed.com

• Forms are available at www.salientfed.com/benefits-2

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What Am I Required to Do?

• All employees must make their 2014 elections through a benefit educator

• Insurance elections and spending account benefits from 2013 will not rollover into 2014

• You must have an IRS qualifying event to make benefit changes after open enrollment

• If hired on or after October 14, 2013 you will have the opportunity to enroll for the 2013 and 2014 plan year

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How Do I Enroll in Benefits?• Enroll by phone through a benefit educator• Enroll with an on-site benefit educator (at

selected sites)• Schedule your appointment at:www.enrollappointments.com/salient

We’re Here to Help YouInsurance Provider Support:

• Detailed questions regarding type of coverage or level of coverage may be best directed to the insurance provider

• Refer to Insurer Contact information chart on slide 43.

Salient Human Resources Support:

• Questions on how to enroll • Open Enrollment Hotline Number: 800-

823-7290 • 7:00 A.M. EDT to 7:00 P.M. PDT• E-mail:

openenrollment@salientfed.com

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Vendor Contact Information

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Insurance Provider Customer Service

Web Address

Medical – CIGNA Healthcare 800-401-4041 www.mycigna.com – Current Cigna Participantswww.mycignaplans.com – New 2014 Cigna Participants

Rx – Express Scripts 800-711-0917 www.express-scripts.com

Dental – United Concordia (UCCI) 800-332-0366 www.ucci.com

Vision – VSP 800-877-7195 www.vsp.com

Tricare Supplement – ASI Corporation (administrator)

800-950-0105 www.asicorptricaresupp.com

FSA Accounts – Flores & Associates 1-800-532-3327 www.flores247.com

401(k) – Transamerica Retirement Solutions

800-755-5801 sfs.trsretire.com

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Final Questions?