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My SAIC BenefitsAnnual Enrollment Update

Our 2017 Benefits Program

September 2016

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Here are some quick highlights; details can be found inside.

• We are increasing the wellness incentive to Health Savings Accounts (HSAs). The maximum incentive you can earn will be based on your base salary as of Jan. 1, 2017. Employees who earn less can earn more incentive dollars to help pay out-of-pocket health care expenses.

• Expectant mothers who complete the pregnancy wellness program will have the ability to earn an additional wellness incentive – up to $2,000 when enrolled in their first trimester.

• To help you manage prescription drug out-of-pocket expenses, we are decreasing the employee coinsurance for brand formulary drugs from 30 percent to 20 percent after you have met the deductible. This lower coinsurance applies to participants enrolled in the Advantage and Essential Plans.

• The orthodontia benefit is improving – employees will have a higher lifetime limit for care.

• A comprehensive leave cash-out feature provides greater flexibility with managing paid leave – making SAIC’s comprehensive leave program one of the most flexible among our market peers.

Annual Enrollment Is Nov. 2 – Nov. 18, 2016

We extended this year’s enrollment period to give you more time to consider your choices and make elections. Review this brochure carefully as you prepare to make your selections during annual enrollment.

Our 2017 benefits program responds to what many of you have told us are important to you. We are providing enhancements to prescription drug and orthodontia benefits, more flexibility for paid leave and greater support for wellness. SAIC will continue to provide many benefits and programs that you and your family have come to count on.

Continuing Our Investment in SAIC Benefits and Programs

In 2016, SAIC invested $9 million to offer important benefit program improvements, such as additional paid leave for many employees and increased wellness incentives. For 2017, the company will make another significant investment to the benefit programs – an additional $7.5 million to provide greater support to employees and to help absorb some of the year-over-year increase in medical costs. This investment is a reflection of our commitment to providing a competitive benefits program while balancing employee needs, preferences and program costs.

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2017 Changes At-A-Glance

Here’s a preview of some of the key changes for 2017 which are largely in response to your feedback. On the following pages, we provide more information to help you prepare for the upcoming enrollment period, Nov. 2 - 18, 2016.

Benefit What’s Changing

Wellness Program

• Annual incentives increasing significantly and the maximum incentive opportunity will be determined by base salary as of Jan. 1, 2017 – Up to $1,000 if base salary is under $100,000– Up to $500 if base salary is $100,000 or more

• Additional opportunity to earn $2,000 wellness incentive for expectant moms who complete the pregnancy wellness program

Health Savings Account (HSA)

• Annual individual HSA contribution limit increasing to $3,400 and the family limit of $6,750 is staying the same. These limits include your contribution and company wellness incentives to your HSA.

• $2 monthly HSA bank account maintenance fee charged by BNY Mellon will be paid by SAIC for 2017

Prescription Drug Benefit

• Coinsurance decreasing for brand formulary drugs – from 30 percent to 20 percent once you have met the deductible for the Advantage and Essential Plans

Dental • Orthodontia lifetime maximum for an individual increasing from $1,500 to $2,500 for the Aetna Dental PPO Plan

Paid Leave • Eligible employees can cash out up to 40 hours of comprehensive leave in 2017. Elections are made during annual enrollment and payable in June 2017.

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Where We’re Investing More in 2017We listened and are responding with changes that can help you pay your out-of-pocket costs for health care and provide more flexibility to our Comprehensive Leave Program.

An Additional Incentive for Expectant Moms – Having a baby can be great joy, but it can be expensive too! SAIC will provide a new wellness incentive to help with out-of-pocket maternity expenses. In 2017, expectant moms enrolled in the Advantage and Essential Plans who are HSA eligible can earn up to $2,000 in company HSA dollars by completing the pregnancy wellness program. This market leading activity connects expecting moms with a registered nurse experienced in prenatal and postnatal care.

Earn More for Wellness in 2017SAIC is significantly increasing incentives to complete activities as part of the SAICCare Wellness Program. The maximum you can earn in 2017 will be based on your base salary as of Jan. 1, 2017. The company recognizes that an employee who earns under $100,000 can have the same out-of-pocket costs for care as an employee who earns more than $100,000 – but less income to meet those expenses. The change to the incentive structure puts more money in everyone’s HSA.

When you complete 2017 wellness program activities, you earn more:

Up to $1,000 if your base salary is

under $100,000

Up to $500 if your base salary is $100,000 or more

If you enroll in the Advantage or Essential Plans in 2017 and are eligible for a Health Savings Account (HSA), wellness incentives will go into your HSA to pay out-of-pocket health care expenses. If you don’t enroll in an SAIC medical plan or are not HSA eligible, you can still participate, take healthy steps and have the chance to win great prizes too!

For purposes of compliance, an employee may not be able to earn the full wellness incentive if it exceeds the allowable amount set forth by regulations.

Power of Wellness Incentives SAIC’s Consumer Directed Health Plans (CDHPs) already compare favorably with many of our peer competitors. The value of these plans are further amplified when you factor in the company HSA incentives you can earn by completing Wellness Program challenges. The chart below shows how your healthy actions lead to lower costs and big savings for you and your family by using your HSA dollars to pay for eligible medical expenses – resulting in a net reduction in your deductible and out-of-pocket maximum.

Plan Without Incentives

With Wellness IncentivesBase Salary Under

$100,000

With Wellness IncentivesBase Salary $100,000

or More

Advantage Plan

Deductible $1,300 Individual$2,600 Family

$300 Individual$1,600 Family

$800 Individual$2,100 Family

Out-of-Pocket Maximum $3,000 Individual$6,000 Family

$2,000 Individual$5,000 Family

$2,500 Individual$5,500 Family

Essential Plan

Deductible $2,000 Individual$4,000 Family

$1,000 Individual$3,000 Family

$1,500 Individual$3,500 Family

Out-of-Pocket Maximum $6,000 Individual$12,000 Family

$5,000 Individual$11,000 Family

$5,500 Individual$11,500 Family

Expecting moms can further reduce out-of-pocket costs by up to $2,000 by participating in the pregnancy wellness program.

Look for details about the 2017 SAICCare Wellness Program in January.

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A Closer Look at What’s New

SAIC Covers HSA FeeSAIC will continue to cover the HSA fee assessed by BNY Mellon for 2017 allowing you to keep more of your HSA dollars and use them for out-of-pocket health care expenses.

Where We’re Investing More in 2017

Health Savings Account (HSA) The annual limit set by the IRS for individuals is increasing to $3,400, allowing you to put more money aside that you can use for medical expenses later, including when you retire. The money grows in your account tax-free, and you can even invest it once your account balance grows large enough. Many HSA participants set aside the maximum to help their account grow. The annual limit for families will stay at $6,750 in 2017.

Mandated IRS LimitsIt is important to note that SAIC’s deductible and out-of-pocket maximums are in line with or are richer than the IRS mandated limits for Consumer Directed Health Plans (CDHPs). As shown in the table below, the Advantage Plan deductible is the lowest allowed by law. It is also lower than many companies in our market. The Plan’s out-of-pocket maximums are also significantly lower than the mandated IRS maximum.

Plan 2017 SAIC 2017 Mandated Limits

Advantage Plan

Deductible $1,300 Individual$2,600 Family

$1,300 Individual (minimum)$2,600 Family (minimum)

Out-of-Pocket Maximum $3,000 Individual$6,000 Family

$6,550 Individual$13,100 Family

Essential Plan

Deductible $2,000 Individual$4,000 Family

$1,300 Individual$2,600 Family

Out-of-Pocket Maximum $6,000 Individual$12,000 Family

$6,550 Individual$13,100 Family

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Save Money on Medical Procedures and ServicesUse Anthem’s Cost Estimator Tool to find costs for procedures, lab tests and surgery before you go. Compare costs and quality ratings for local hospitals and facilities and determine which facility is right for you. Register on Anthem.com/ca.

Check for Lower-Cost MedicationsVisit the Express Scripts website and use the Price a Medication tool. Enter or select a drug name and get information such as brand name and generic alternatives, estimated cost and whether or not the drug is covered under the plan. Simply look up the name of a medication to find lower-cost alternatives and potential savings. Then, print out the list of alternatives and savings and ask your doctor whether a lower-cost generic or preferred brand-name is right for you.

Help with Your Prescription Drug ExpensesAs you have likely seen in national media, the cost of prescription drugs in the U.S. continues to rise at an alarming rate. For 2017, SAIC will help employees enrolled in the Advantage and Essential Plans with out-of-pocket prescription drug expenses. Your share of prescription costs, or coinsurance, for brand formulary drugs is decreasing – from 30 percent to 20 percent. After you meet the annual deductible, you will pay a lower percentage of the cost for medication on the Express Scripts formulary.

Enhanced Orthodontia BenefitEmployees who enroll in the Aetna Dental PPO will have more help with orthodontia. The lifetime maximum for an individual is increasing from $1,500 to $2,500. This new higher maximum is extremely competitive based on benchmark data from our peer group. The increase gives SAIC’s families greater coverage and reduces the potential out-of-pocket costs for a valued dental service.

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Comprehensive Leave Cash-Out Feature The feedback we received from many of you this year reinforced the value of SAIC’s paid leave benefit. We heard that you want more flexibility with managing paid leave, and we’re responding. During annual enrollment, eligible employees will have the opportunity to declare the number of comprehensive leave hours – select as little as 8 hours or up to the maximum of 40 hours – that you want to cash out during 2017. SAIC is pleased to provide this opportunity and is one of only a few employers within our industry that provides a comprehensive leave cash-out feature.

What’s Important to Know:

• You must maintain a minimum balance of at least 120 hours.

• If the number of hours you elect to cash out reduces your balance to below 120 hours (at the time hours are cashed out in 2017), you will not be able to cash out the full amount. Fewer hours may be cashed out and paid to you, as long as your balance does not fall below 120 hours

• Cash-out payments will be made in the last paycheck in June 2017. You will receive the hours you cash out at 100 percent of your straight time rate of pay, based on IRS guidelines.

• Senior executives are not eligible for the cash-out feature.

Any cash-out election you make during annual enrollment cannot be changed after the enrollment period. If you make no election during annual enrollment, you will have to wait until the next annual enrollment to make a comprehensive leave cash-out election.

Did You Know?

SAIC’s maximum comprehensive leave accrual limit of 320 hours is well above most of our peer competitors. Survey data shows that companies typically maintain a maximum limit ranging from 160-240 hours.

Did you know that SAIC offers a way for employees to purchase SAIC stock at a discount and without any fees?The Employee Stock Purchase Plan (ESPP) is a convenient way to own a piece of SAIC and share in our success as the company grows and continues to be a premier technology integrator.

Through the ESPP, you can contribute one to ten percent of eligible compensation through convenient after-tax payroll deductions to purchase shares quarterly at a discount, which is currently five percent.

Go to www.saicespp.com to watch an instructional video about the plan and a tutorial on how to enroll.

A Closer Look at What’s NewWhere We’re Investing More in 2017

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Your Contributions for Health Care Coverage

For 2017, we have worked hard to manage cost while providing benefits that are market competitive and respond to the needs of our employees and their families.

Benefit Employee Premium Contributions

Advantage and Essential Medical Plans

• Employee only – increase of $0 to $3 per paycheck

• Employee plus child(ren) – increase of $9 to $12 per paycheck

• Employee plus spouse – increase of $0 to $2 per paycheck

• Employee plus family – increase of $13 to $18 per paycheck

Kaiser Plans • Employee only – no change in premium contributions

• Employee plus child(ren) – increase of $0 to $8 per paycheck

• Employee plus spouse – increase of up to $8 per paycheck

• Employee plus family – increase of up to $34 per paycheck

Tricare Supplement Plan • Decrease ranging from $1 to $2 per paycheck

Cigna International Plan • No change in premium contributions

Dental Plan • Increase of $0 to $4 per paycheck

Vision Plan • Increase of up to $1 per paycheck

When You Cover a Spouse or Domestic PartnerOn average, spouse and domestic partner claims are more than 60 percent more expensive than employee medical claims in the Advantage and Essential Plans. SAIC will continue to offer coverage to all spouses and domestic partners but at a somewhat higher cost to help cover the additional expense.

During annual enrollment, consider all of your medical plan options (SAIC and others) and select the plan that works best for you and your family. You may find that you can save money by having some family members covered by SAIC’s medical plan and others covered by the medical plan offered to your spouse or domestic partner.

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We’ve Got You Covered

You don’t have to go it alone when it comes to managing your benefits. SAIC provides great support to help you understand your benefits, compare your options, find answers to benefit questions and save money!

Visit mysaicbenefits.com The My SAIC Benefits website is your online resource for both annual enrollment and benefit support during the year. During annual enrollment, be sure to check out:

• New 2017 Virtual Benefits Presentation

• New Benefits Highlights and How-To Guide – expanded to include help for common “How do I?” benefit questions, such as how to avoid health care billing mistakes, find an in-network provider, use decision-support tools and make benefit changes during the year

• Enrollment checklist

• Carrier websites and tools, such as Anthem’s Estimate Your Cost and Express Scripts’ Price a Medication tools

• Frequently Asked Questions

Medical Cost Modeler ToolWhen enrolling in medical coverage make sure to compare the value of each plan by using the Medical Cost Modeler tool on the medical plan enrollment page. This tool helps you understand how personal medical utilization directly impact your health care costs. It allows you to compare the expected medical expenses for you and your family within each medical plan to see which plan is right for you. Armed with this information, you can better understand what health care really costs and select a plan that optimizes your enrollment choices.

More information on how to utilize this tool is included in the Highlights and How-To Guide.

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Employee Benefits Fairs Coming this FallAttend a live or virtual fair in October and early November. Hear more about your 2017 benefits and ask questions. Spouses are welcome! Get prepared to choose during annual enrollment. To attend an upcoming benefits fair, refer to your electronic invite or contact the Shared Services Center Human Resources (SSC HR) at sschrbsd@saic.com or via telephone at 866-955-7242 (option 3). Assistance is available Monday – Friday, 8 a.m. – 6 p.m. ET. Extended hours from 8 a.m. to 8 p.m. will be in place between Nov. 2 - 18, 2016.

Get One-on-One Enrollment HelpFor personalized support during annual enrollment, you can make an appointment with a Shared Services Center Human Resources (SSC HR) benefits representative at sschrbsd@saic.com or via telephone at 866-955-7242 (option 3). Request a meeting if you have questions about your benefits or need help enrolling.

Assistance is available Monday – Friday, 8 a.m. – 6 p.m. ET. Extended hours from 8 a.m. to 8 p.m. will be in place between Nov. 2 - 18, 2016.

Look for Benefit Lunch and Learn Sessions in 2017Our benefits team will begin conducting quarterly lunch and learn sessions next year. Whether you need a refresher on your benefits or want to increase your benefits IQ, here’s another great opportunity for support. Look for details in early 2017.

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Enroll Starting Nov. 2

There are no changes to the enrollment process. You will enroll through the benefits enrollment website during the annual enrollment period. If you take no action during the enrollment period, all elections, excluding Flexible Spending Account (FSA), will automatically roll over for 2017. During the year, come back if you need to confirm coverage or make changes to your benefits if you have a qualified status change, such as loss of other coverage, marriage, divorce or birth of a child.

How to Log On

Visit www.saicbenefits.com or direct link from ISSAIC

• Returning User: If you have logged in previously, use your previously established user ID and password to login. If you forgot your user ID or password, click the appropriate link to obtain your credentials.

• New User: If you have not logged into the system before, your initial user ID is your 6-digit employee ID number (you may need to add a “0” in front to make your ID 6-digits). Your initial password is the month and day of your date of birth (formatted as MMDD) and the last 4 digits of your SSN.

For example: If your Employee ID is 052345, the last 4 digits of your SSN are 6789 and date of birth is 05/25/1961, you would use 052345 as your User ID and 05256789 as your password.

You are required to change your user ID and password once you login the first time.

I.D. Cards Reducing environmental impact – Because our health care plans are not changing, new insurance ID cards for your medical, prescription drug and dental coverage will NOT be issued for 2017. Only new members or employees changing plans will receive new ID cards.

Dependent Eligibility VerificationIf you enroll a dependent for the first time, you will receive a request to verify the eligibility of your dependent to participate in SAIC’s benefit plans. You are required to verify eligibility and are encouraged to respond to this request promptly to ensure your dependent does not lose coverage.

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What’s Next

Take Action When

Visit mysaicbenefits.com to find:

• A 2017 Virtual Benefits Presentation

• A Benefits Highlights and How-To Guide

• Enrollment Checklist

• FAQs

Now

Attend a local in-person or virtual Benefits Fair Oct. 4 to Nov. 10, 2016

Enroll in 2017 benefits at www.saicbenefits.com Nov. 2 to Nov. 18, 2016

Your 2017 benefits take effect Jan. 1, 2017.

Learn, plan and choose. Attend a benefits fair, use online resources to help you decide, then enroll beginning Nov. 2. Visit mysaicbenefits.com for more information about your 2017 benefits.

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SAIC has made a reasonable attempt to ensure the accuracy of this information. If there is any discrepancy between this newsletter and the insurance contracts or other legal documents, the legal documents will always govern. As with all of its benefits, SAIC reserves the right to amend or discontinue the benefits described in this document in the future, as well as change how eligible employees and the company share the cost at any time. This newsletter does not create any employment agreement of any kind or a guarantee of continued employment with SAIC.

Enrollment Checklist

If you recently moved, remember to update your home address in the PeopleSoft system by Oct. 18, 2016.

Remember, you must provide a Social Security Number for any dependent enrolled in a medical plan.

Plan now. Annual enrollment begins Nov. 2 and ends on Nov. 18. There are several enhancements to your benefits. Review your benefit choices, consider whether your family situation has changed. Use the available benefit resources to get ready!

When enrolling online, be sure to print a confirmation statement of your 2017 elections.

Questions?Contact the Shared Services Center Human Resources (SSC HR) at sschrbsd@saic.com or via telephone at 866-955-7242 (option 3). Assistance is available Monday – Friday, 8 a.m. – 6 p.m. ET. Extended hours from 8 a.m. to 8 p.m. will be in place between Nov. 2 - 18, 2016.