AARP Benefits Overview _Jan24

2008 Benefits Guide ThinkSmart . ThinkAhead Revised: 1/14/2008 The power to make it better. Table of Contents How to Use This Guide As a resource throughout the year for benefit questions As a quick reference for benefit contacts To clarify your role — and the role of HR — in handling benefit claims Be an Active Participant in Your Benefits . . . . . . . . . . . . . .1 Where to Go for More Information . . . . . . . . . . . . . . . . . . .2 Your AARP Employee Benefits . . . . . . . . . . . . . . . . . . . . .3 Medical Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Point-of-Service (POS) Plan Options . . . . . . . . . . . . . . .5 Kaiser HMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Indemnity/Out-of-Area Plan . . . . . . . . . . . . . . . . . . . . . .8 Contributions for Your Medical Coverage . . . . . . . . . . . .8 Your Prescription Drug Benefits . . . . . . . . . . . . . . . . . . . . .9 Your Vision Benefit Options . . . . . . . . . . . . . . . . . . . . . . .10 Your Dental Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Your Flexible Spending Accounts . . . . . . . . . . . . . . . . . . .12 Your Transit Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Income Protection Benefits . . . . . . . . . . . . . . . . . . . . . . . .15 Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Your 401(k) Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Your Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Additional Benefits and Programs . . . . . . . . . . . . . . . . . . .20 Paid Time Away from Work . . . . . . . . . . . . . . . . . . . . . . . .22 Updates to this Guide: • New Domestic Partner Eligibility Guidelines for 401(k), Pension, Health and Income Protection Benefits • Pension Plan multiplier changed to 1.0% for employees hired on or after 1/1/08 • Legal Insurance through Legal Resources in addition to the legal benefit already available to employees as members Revised: 1/14/2008 Be an Active Participant in Your Benefits Take an active part in your AARP benefits: Read this guide to understand basic information about your benefits. Learn more about the plans AARP offers you through the benefit overviews and the Summary Plan Descriptions on InfoNet and the carrier websites. Review the benefits and coverage that are right for you (and your family) each year during Open Enrollment. Find the benefit forms you need on InfoNet. Use the health resources available on your carrier’s website (UHC or Kaiser). If you are traveling, remember you can use in-network providers/facilities in other states. If you are traveling outside of the U.S., please take an international reimbursement claims form (available on InfoNet) with you. Call a carrier directly if you have questions about your coverage, before you receive a treatment or test if you are unsure of coverage, or about a specific claim. If you are dissatisfied with the carrier’s response, or if you still have questions, contact the Benefits team. Think Smart... It is important to ensure that you (and your family) have the coverage you need when you need it most. Think Ahead... Because we all have different needs, AARP offers you a choice of benefits to fit your lifestyle. From medical plans to life insurance, you select the programs and benefit levels that meet your needs. Revised: 1/14/2008 1 Where to Go for More Information For Information or Questions About... How to enroll Contact HR Service Delivery Representatives By Phone and/or Email Online phone: 1-202-434-2800 email: HRBlueTeam@aarp.org HRGreenTeam@aarp.org phone: 1-562-496-5212 email: HRPurpleTeam@aarp.org 1-800-922-9945 HR Lakewood Team 401(k) Dental Flexible spending accounts Leave programs T. Rowe Price www.rps.troweprice.com www.deltadental.com Delta Dental CBIZ Payroll and Flex Andrew Palomino AARP Benefits Department Aetna 1-800-932-0783 1-800-815-3023, option 4 www.myflexonline.com 1-562-496-5306 email: apalomino@aarp.org Life and accidental death & dismemberment Medical (including Prescriptions) 1-800-523-5065 www.aetna.com UnitedHealthcare (POS only) (PPO and Indemnity) Kaiser (Mid-Atlantic) Kaiser (California) 1-866-844-4864 1-866-633-2482 1-800-777-7902 1-800-464-4000 (English) 1-800-788-0616 (Spanish) 1-800-922-9945 www.myuhc.com www.kaiserpermanente.org Pension Transit program – Mass transit option T. Rowe Price HR Service Delivery Representatives www.rps.troweprice.com phone: 1-202-434-2800 email: HRBlueTeam@aarp.org HRGreenTeam@aarp.org phone: 1-562-496-5212 email: HRPurpleTeam@aarp.org 1-800-815-3023, option 4 www.myflexonline.com 1-800-877-7195 www.vsp.com HR Lakewood Team Transit program – Parking option Vision CBIZ Payroll and Flex Vision Service Plan Voluntary Benefits Long-Term Care Insurance: Legal Resources Benefit: Call MetLife – 1-800-438-6388 Legal Resources – call 1-800-728-5768 or email legalresourcesplan.com Still Not Sure? If you have questions about your covered benefits or benefit payments and cannot find the answer in the Summary Plan Descriptions (SPDs) on InfoNet, call the carrier or contact the Benefits team for more information. 2 Revised: 1/14/2008 Your AARP Employee Benefits At AARP, we are committed to providing a flexible, comprehensive benefits package for our employees. Each year, you have the opportunity to select the benefits — such as medical, dental, life insurance, and transit — that make the most sense for you (and your family). AARP provides the choices; you make the decisions. Qualifying Status Change In certain situations you may be permitted to change your benefit elections during the year. The Internal Revenue Service (IRS) imposes restrictions on the kinds of changes you may make to certain coverages outside of the annual Open Enrollment Period. According to these restrictions, you cannot change your elections during the plan year, except in the case of a qualifying status change that results in a “change in family or work status” or in the case of certain cost or coverage changes, including changes under another employer’s plans. Also, the new election that you make must be on account of and consistent with the change in coverage or reason for the change in coverage. Who is Eligible for Benefits? You are eligible for benefits if you are a full-time or part-time employee* who is scheduled to work at least 21 hours per week (or at least 14 hours per week in an approved job share arrangement). If you are eligible, your spouse and dependent children are also eligible until age 19, or age 25 if a full-time student. If you and/or your dependents lose eligibility, you may be eligible to continue certain benefits through COBRA or other continuation. Please refer to the applicable SPD posted on InfoNet for more details. Domestic Partner Eligibility Any employee eligible to participate in medical, vision, dental or life insurance coverage offered through AARP may elect to cover a domestic partner — same or opposite sex — or children of a domestic partner under those plans. The value of premium contributions made by AARP toward a domestic partner is considered taxable income for the employee. Also, employee contributions toward domestic partner coverage must be made on a post-tax basis. Details regarding domestic partner eligibility and the enrollment process are found on InfoNet or from your HR Service Delivery Representative. Effective January 1, 2008, a domestic partner covered under the medical vision, dental and/or life insurance plans offered through AARP will be considered a domestic partner under the 401(k) and pension plans. See page 19 for further information under Beneficiary Information. When Are You Eligible for Benefits? Benefit Enrollment Benefit Medical Dental Stand-Alone Vision 401(k) Long Term Disability* Legal Resources Benefit Long-Term Care Insurance Life Insurance Short-Term Disability Flexible Spending Accounts Business Travel Accident When 1st of the month following date of hire (as long as enrollment deadlines are adhered to) Immediately 1st of the month following 6 months of employment 1st of the month following 60 days of employment 1st of the month following approval by MetLife New Hires When Can You Change Your Benefit Elections? Benefit Enrollment Benefit Changes to: Medical Stand-Alone Vision Life insurance Flexible Spending Accounts Legal Resources Benefit Dental Changes to: 401(k) Long-Term Care Insurance When Annual open enrollment period, or an eligible “qualifying status change” (see InfoNet for further details) Annual open enrollment following a 24-month waiting period unless you have a “qualifying status change” Any time Any time Current Employees * Long term disability insurance has different eligibility — you must be regularly scheduled to work at least 26.25 hours per week to be eligible for long term disability. Revised: 1/14/2008 3 ThinkAhead Medical Benefits Your medical plan options include the following: AARP provides a variety of medical plan options. You choose what plan best meets your (and your family’s) needs. Do you know about the vast array of information and tools available on your carrier’s website? Check it out. UnitedHealthcare Choice Plus includes two national Open Access Point-of-Service (POS) medical options: “Standard” and “High.” These options cover both in-network and out-of-network coverage. Your costs are generally less when you receive care from in-network providers. Kaiser Permanente Health Maintenance Organization (HMO): covers the MidAtlantic area (parts of Maryland, Virginia, and Washington D.C.), and California only. Kaiser provides comprehensive coverage (much of it at 100%), but only when you receive care from Kaiser providers. UnitedHealthcare Indemnity/Out-of-Area option: available in general only to those employees who live in a location that is deemed “medically underserved” by the Office of Personnel Management (OPM). There are exceptions to this general rule though, and for more details about eligibility for the Indemnity/Out-of-Area Plan, refer to page 8 of this guide. If you are eligible to participate in the Indemnity/Out-of-Area Plan, you may see any provider (similar to the POS Plan). Please note that out-of-network providers can bill you for charges in excess of the reimbursement maximums. Comparing Medical Option Benefit Features The table below provides a high-level, side-by-side comparison of the 2008 AARP medical options. For more details on each medical option, refer to pages 5-9 of this guide. 2008 AARP Medical Options Annual deductible UHC Standard Open Access POS In-Network Out-of-Network* UHC High Open Access POS In-Network Out-of-Network* UHC Indemnity/ Out-of-Area* Kaiser HMO Mid-Atlantic California None Individual: $500 (per covered member) Family: $1,500 (for all covered members) None Individual: $500 (per covered member) Family: $1,500 (for all covered members) None None None Primary care office visits Specialty care office visits 100% after $20 co-pay 100% after $30 co-pay 70% after deductible 70% after deductible 70% after deductible 100% after $15 co-pay 100% after $25 co-pay 100% 70% after deductible 70% after deductible 70% after deductible Individual: $3,500 (per covered member) Family: $10,500 (for all covered members) 90% 90% 90% 100% after $15 co-pay 100% after $25 co-pay 100% 100% after $10 co-pay 100% after $10 co-pay 100% 90% What the plan pays for most other covered services Individual: Annual out-of$1,750 (per pocket maximum (includes deductible)** covered Individual: $3,500 (per covered member) member) Family: $5,250 Family: $10,500 (for all covered (for all covered members) members) None Individual: $1,750 (per covered member) Family: $5,250 (for all covered members) Individual: $3,500 (per covered member) Family: $9,400 (for all covered members) Individual: $1,500 (per covered member) Family: $3,000 (for all covered members) * Benefits for out-of-network services are “capped,” based on a formula that uses area “reasonable & customary” charges as a basis. ** Excludes all co-pays, out-of-pocket expenses resulting from charges above R&C, and other out-of-pocket expenses for mental health/substance abuse benefits. 4 Revised: 1/14/2008 UHC Point-of-Service (POS) Plan Options* The UHC Standard Open Access POS and High Open Access POS options are all about choice. Both options are “open access,” which means you do not have to select a primary care physician when you enroll, and you may see any provider in UHC’s POS network to receive the in-network level of benefits. Find a Doctor… To find a doctor or to see if your doctor participates in UnitedHealthcare's POS provider network, go to www.myuhc.com. Select “UnitedHealthcare Choice Plus” as the health plan. In-Network Benefits When you visit any provider in the UHC POS network, you will receive in-network benefits. Providers in the network are physicians or other medical professionals who have agreed to honor your membership card and bill UHC directly for services rendered based upon contracted rates or discounts. Out-of-Network Benefits You are also free at any time to visit providers who do not participate in a UHC network. You are still covered, but your out-of-pocket costs will be higher. If you visit a provider outside the UHC network, you may be responsible for paying your provider in full at the time services are rendered. You will then need to submit a claim to UHC to receive reimbursement. You must first meet the $500 per calendar year deductible. After that reimbursement for eligible charges is based on a maximum that is tied to “reasonable and customary” charges (R&C) for each service. It is important to note that out-of-network providers can bill you for charges that exceed the program reimbursement level. If the actual charge is more than the R&C amount, you pay 100% of the difference between the actual charge and the R&C amount, in addition to any applicable deductible and coinsurance amounts. Consequently, in order to know what your out-of-pocket liability is, you may want to compare what your out-of-network provider will charge you for a procedure with what UHC’s “reasonable and customary” charge is for the same procedure before undergoing the procedure. Out-of-Network and Indemnity/Out-of-Area benefits are based on R&C charges established in your area. R&C charges are based on what most providers in your area charge for a particular service. For information on how to calculate approximate costs of selected health care services by area, go to www.myuhc.com and click on Estimate Health Care Costs. More About Reasonable and Customary (R&C) Charges Out-of-network and Indemnity/Out-of-Area benefits are based on R&C charges established in your area. R&C charges are based on what most providers in your area charge for a particular service. UHC Preferred Provider Organization (PPO) Options* UHC offers a PPO network instead of a POS network in certain areas due to contractual limitations in the states — Idaho, Montana, Pennsylvania (Harrisburg only), Puerto Rico, and the U.S. Virgin Islands. The PPO benefits are the same as POS benefits. The only difference is that employees will use the PPO network instead of a POS network in these areas. Employees living in Hawaii have a separate PPO Plan that complies with state regulations. How UHC Deductible, Coinsurance, and Out-of-Pocket Maximums Work When deductibles and coinsurance apply, in order for benefits to be paid, you must first satisfy an annual deductible (based on eligible charges). Once you have satisfied this deductible, the plan will pay a percentage of eligible charges, and you will pay a percentage (called coinsurance) until you reach the out-of-pocket maximum (also based on eligible charges). After you have satisfied the out-of-pocket maximum, the plan pays 100% of eligible charges for the remainder of the year. (You will still be responsible for certain out-of-network charges.) *Prior notification may be required before you receive certain services. Refer to the Summary Plan Descriptions on InfoNet for further information. Revised: 1/14/2008 5 UHC POS & Indemnity/Out-of-Area Plans Benefit Highlights Feature Annual deductible None UHC Standard Open Access POS In-Network Out-of-Network* UHC High Open Access POS In-Network Out-of-Network* UHC Indemnity/ Out-of-Area* Individual: $500 (per None covered member) Family: $1,500 (for all covered members) Individual: $3,500 (per covered member) Family: $10,500 (for all covered members) None (there are no in-network out-ofpocket costs except for co-pays) Individual: $500 (per None covered member) Family: $1,500 (for all covered members) Individual: $3,500 (per covered member) Family: $10,500 (for all covered members) Individual: $1,750 (per covered member) Family: $5,250 (for all covered members) Annual out-of-pocket Individual: $1,750 (per maximum (includes covered member) deductible)** Family: $5,250 (for all covered members) Office visits Doctor’s office Specialist office Routine physical exams*** Maternity care Well baby care*** Outpatient care X-ray, lab tests Outpatient surgery Inpatient mental health/ substance abuse (up to a 30 day maximum for combined in- and out-of-network) Outpatient mental health/ substance abuse (up to a 50 visit maximum for combined in- and out-of-network) Emergency care $20 co-pay $30 co-pay 100% 90% after $30 co-pay (first visit only) 100% 70% after deductible 70% after deductible 70% (no deductible) 70% after deductible 70% (no deductible) $15 co-pay $25 co-pay 100% 70% after deductible 90% 70% after deductible 90% 70% (no deductible) 100% 100% after $25 co-pay 70% after deductible 90% (first visit only) 100% 70% (no deductible) 100% 90% 90% 70% after deductible 70% after deductible 100% 100% 70% after deductible 90% 70% after deductible 90% 90% 70% after deductible 100% 70% after deductible 90% 100% after $25 co-pay for individual session and $15 for group session 70% after deductible 100% after $20 co-pay for individual session and $10 for group session 70% after deductible 90% 100% after $75 co-pay (waived if admitted) 70% after deductible if non-emergency care. Emergency care covered at in-network level 70% after deductible 100% after $75 co-pay (waived if admitted) 70% after deductible if non-emergency care. Emergency care covered at in-network level 100% after $75 co-pay for true emergency. 90% for non-emergency Inpatient hospital 90% services (including maternity) Lifetime maximum Unlimited 100% 70% after deductible 90% Unlimited Unlimited Unlimited Unlimited * Benefits for out-of-network services are “capped,” based on a formula that uses area “reasonable & customary” charges as a basis. ** Excludes all co-pays, out-of-pocket expenses resulting from charges above R&C, and other out-of-pocket expenses for mental health/substance abuse benefits. *** Additional information on these wellness benefits can be found on InfoNet. Kaiser Permanente HMO Kaiser Permanente HMO is available to those in the Mid-Atlantic area and most employees in California (varies based on residence). It includes comprehensive benefits, which are covered at 100% after you pay a co-pay. There are no deductibles or claim forms to file. However, when you enroll, you will choose a Kaiser facility at which you wish to receive your care. Once you have enrolled in Kaiser you may select a doctor within that center who will coordinate your care. Most of your care will be provided within your chosen Kaiser facility. Kaiser offers in-network benefits only. Refer to the Kaiser website (see page 2) for a list of the Kaiser facilities near you. Note that no Kaiser benefits are available out-of-network, except in emergencies. Health Care Coverage Categories When electing medical or dental coverage (or if you elect the vision-only option), you can elect coverage for: Yourself only (Employee) Kaiser HMO Plan Benefit Highlights Feature Mid-Atlantic Kaiser HMO California Annual deductible Annual out-of-pocket maximum None Individual: $3,500 (per covered member) Family: $9,400 (for all covered members) None Individual: $1,500 (per covered member) Family: $3,000 (for all covered members) Office visits Doctor’s office Specialist office Routine physical exam Maternity care Well baby care Inpatient Mental health Substance abuse $15 co-pay $25 co-pay 100% $15 co-pay (initial visit only) 100% $10 co-pay $10 co-pay $10 co-pay $10 co-pay $5 to 23 months, $10 thereafter $100 co-pay per admission, 100% thereafter Detox: $100 co-pay; Transitional Residential Recovery Service (TRRS) in a non-medical setting: $100 co-pay, up to 60 days per calendar year, but no more than 120 days in any 5 consecutive calendar year period Yourself and one dependent (Employee + 1) Yourself and your family (Employee + 2 or more) $100 co-pay per admission, 100% thereafter $100 co-pay per admission, 100% thereafter Outpatient Mental health $20 co-pay for individual sessions and $10 co-pay for group $20 co-pay for individual sessions and $10 co-pay for group 100% $25 co-pay $50 co-pay (waived if admitted) Substance abuse $10 co-pay for individual session, $5 for group - up to 20 days per year* $10 co-pay for individual session, and $5 co-pay for a group 100% $10 co-pay $50 co-pay (waived if admitted) You can choose different coverage levels or cover different dependents under each benefit. For example, you can elect medical coverage for yourself, but dental coverage for yourself and your family. Outpatient care X-ray, lab tests Outpatient surgery Emergency care Inpatient hospital services, including maternity $100 co-pay per admission, $100 co-pay per admission, 100% thereafter 100% thereafter * No day limit for Mental Health Parity Diagnosis Revised: 1/14/2008 7 UHC Indemnity/Out-of-Area Plan The UHC Indemnity/Out-of-Area Plan is a traditional plan that does not include a network. You may see any provider you wish. Indemnity/Out-of-Area Plan benefits are subject to a “cap,” based on R&C charges for covered services. Note that even in areas where this plan is offered and no network is available, some providers may be UHC providers. The Indemnity Plan is offered only in the following states: Remember, when you receive services from a provider who does not contract with UnitedHealthcare, benefits are subject to the “R&C” charges in your area, up to AARP’s cap. Alabama South Carolina Michigan Alaska South Dakota Mississippi Arizona Vermont Missouri Idaho West Virginia Montana Kentucky Wisconsin New Mexico Louisiana Wyoming North Dakota Employees who live in these states may choose either a UHC POS/PPO Plan, or the Indemnity Plan depending on availability of network providers. Your Contributions for Medical Coverage The amount you pay for medical coverage depends on the plan option you select, the number of people you cover (whether you are covering just yourself or your family as well), and your salary level. If your salary level changes during the Plan Year, you will be charged a different rate according to the table below. The following table shows your contributions per pay period, based on the option you choose. Contributions are deducted from your pay twice per month. Note: If you cover a domestic partner, a portion of your employee contribution will be deducted on an after-tax basis. See InfoNet for more details. Employee Pre-Tax Contributions 2008 Medical Plan Options (includes prescription drug and vision benefits) Total 2008 annual cost* UHC Standard Open Access POS, or Indemnity/ Out-of-Area employee employee +1 UHC High Open Access POS Kaiser Mid-Atlantic HMO Kaiser California HMO employee employee employee employee +2 or +2 or employee employee employee employee +2 or employee employee +2 or more more more more +1 +1 +1 $5,336.88 $9,988.92 $16,987.32 $5,631.48 $10,539.60 $17,926.20 $4,486.44 $8,973.00 $13,021.80 $4,084.68 $8,169.24 $11,856.36 If your annual salary is... Per pay period, you will pay... less than $35,000 $16.47 $30.87 $52.58 $23.61 $35,000-$44,999 $45,000-$54,999 $55,000-$69,999 $70,000-$99,999 $100,000 or more $24.70 $32.94 $41.18 $49.41 $57.65 $46.31 $61.74 $77.18 $92.61 $108.05 $78.86 $105.15 $131.44 $157.72 $184.02 $35.41 $47.22 $59.02 $70.83 $82.63 $44.29 $66.44 $88.58 $110.73 $132.87 $155.02 $75.42 $113.12 $150.84 $188.54 $226.26 $263.96 $16.39 $24.59 $32.79 $40.98 $49.18 $57.38 $32.63 $48.95 $65.26 $81.58 $97.89 $114.20 $47.46 $71.18 $94.91 $118.64 $142.36 $166.09 $16.54 $24.82 $33.09 $41.36 $49.63 $57.90 $32.93 $49.40 $65.87 $82.33 $98.80 $115.26 $47.89 $71.84 $95.78 $119.73 $143.67 $167.62 * Annual cost reflects both employee and AARP contributions. In general, AARP’s share of the annual cost is 75%; the employee’s 25%. 8 Revised: 1/14/2008 Your Prescription Drug Benefits Prescription drug benefits are included in your medical plan coverage. Benefits are available for generic drugs, preferred brand-name drugs (those on the preferred drug list) and non-preferred brand-name drugs (those not on the preferred drug list). UHC Prescription Drugs If you are enrolled in a UHC medical plan option, you can fill your prescriptions at a participating retail pharmacy or, for maintenance medications, through the UHC Home/Mail Delivery Pharmacy Service, administered by Medco with the following co-pays: Type of Prescription Generic Preferred brand-name Non-preferred brand-name Medication Delivered to Your Home With the UHC medical plans, you can have a 90-day supply of your maintenance medication mailed directly to your home. This will save you money — you will get triple the supply of medication for just twice the price! Just ask your provider for a 90-day mail order prescription. Retail (up to a 30-day supply) $5 $15 $25 Home/Mail Delivery Service (up to a 90-day supply) $10 $30 $50 What is a Preferred Drug List? A preferred drug list (also called a “formulary”) is a list of recommended prescription medications that is created, reviewed, and regularly updated by a team of physicians and pharmacists, based on clinical performance and cost-effectiveness. All are FDAapproved. Your doctor can use this list to select medications for your health care needs to help you maximize the Plan’s prescription drug benefits. A preferred drug list is available by calling Medco at 1-877-842-6048, or by visiting www.365wellst.com. Kaiser HMO Prescription Drugs If you are enrolled in either the Mid-Atlantic or California Kaiser HMO, you can fill your prescription at a Kaiser Permanente Pharmacy or, for maintenance medications, through Kaiser Mail Order. Mid-Atlantic Kaiser HMO prescription drug co-pays: Type of Prescription Kaiser Pharmacy Non-Kaiser Center Pharmacy Retail (up to a 60-day supply) $5 generic, $15 brand-name $11 generic, $27 brand-name Mail Order (up to a 60-day supply) $3 generic, $13 brand-name N/A California Kaiser HMO prescription drug co-pays: Type of Prescription Kaiser Pharmacy Non-Kaiser Center Pharmacy Retail Mail Order (up to a 100-day supply) (up to a 100-day supply) $5 generic, $15 brand-name not covered $5 generic, $15 brand-name N/A Revised: 1/14/2008 9 Your Vision Benefit Options If you are enrolled in AARP medical, you are automatically enrolled in AARP Vision coverage. You can also elect vision coverage separately if you choose not to enroll in AARP medical. The AARP Vision program provides benefits for many services including eye exams, lenses, frames and contact lenses. The program includes a network of vision care providers. You receive a higher level of benefits when you visit a provider in the Vision Service Plan (VSP) network. Your network provider takes care of all paperwork and you do not have to file a claim form. If you receive covered services from an out-of-network provider, you will have to file a claim form. Find a Provider... To find a participating provider for your vision needs in the VSP network, go to www.vsp.com. Vision Benefits Highlights Covered Services Annual Exams (12 months) Eyeglass lenses or contact lenses* Single vision lenses, per pair Bifocal lenses, per pair In-Network No co-pay $25 co-pay $25 co-pay $25 co-pay Up to $120 allowance Out-of-Network Up to $35 allowance Up to $25 allowance Up to $40 allowance Up to $55 allowance Up to $105 allowance Using VSP... There are no ID cards with the VSP Plan. Just call a VSP provider to make an appointment. Trifocal lenses, per pair Contact lenses, per pair – Disposable – Nondisposable Frames (24 months) Up to $120 allowance Up to $45 allowance * You may choose between glasses or contact lenses. If you choose contact lenses, you will be eligible for frames twelve months after you obtain your contact lenses (frames are available every 24 months). Your Contributions for Vision Coverage If you are covered under the AARP medical program, you are automatically enrolled in the AARP Vision program, and your vision coverage cost is included in your medical coverage contributions. If you waive AARP medical coverage, you can still enroll in vision coverage separately. The following per-pay-period contributions will apply: 2008 Contributions Vision only employee employee +1 employee +2 or more $4.64 $9.27 $13.90 10 Revised: 1/14/2008 Your Dental Plan The AARP Dental Plan is a preferred provider organization (dental PPO) that offers both in-network and out-of-network benefits through Delta Dental. There are three levels of benefits available: Delta Dental PPO (formerly Delta Preferred Option), Delta Dental Premier®, and Out-of-Network. Your benefits are the highest (and your out-of-pocket expenses the lowest) when you use Delta Dental PPO dentists. When you visit a Delta Dental Premier dentist, you will receive a moderate level of benefits and you’ll save on your out-of-pocket costs — though not as much as you would if you visit a Delta Dental PPO dentist. If you visit an out-of-network dentist, you are still covered, but your out-of-pocket expenses will generally be higher than they would be if you visited a Delta Dental dentist. Find a Dentist… To find a dentist or to see if your dentist participates in Delta’s Dental provider networks, go to www.deltadental.com. Dental Benefit Highlights Feature In-Network Delta PPO (formerly Delta Preferred) Option Annual deductible Individual Family Annual benefit maximum Preventive and diagnostic care* (e.g., routine exams, cleanings, x-rays and fluoride treatments) Out-of-Network Delta Premier Important Note: If You Waive Dental Coverage If you waive dental coverage for yourself (or any of your eligible dependents) when first eligible, you (and your dependents) may not enroll in the dental plan until the Open Enrollment following a 24-month waiting period, unless you have a “qualifying life event.” $25 per person $75 per family Unlimited 100%*** $50 per person $150 per family Unlimited 80%*** $50 per person $150 per family $2,000 per person 80%*** Basic restorative care (e.g., oral surgery, extractions, amalgams and composite fillings, periodontics, denture repair & relining) 80%*** 65%*** 65%*** Major restorative care (e.g., dentures, crowns, bridgework, inlays and onlays) Orthodontia (child & adult)* Separate lifetime maximum TMJ Separate lifetime maximum 50%*** 40%*** 40%*** 50%*** $2,000 per person 50% $3,000 per person 50%*** $2,000 per person 50% $3,000 per person ** Not applicable** 0% Not applicable** * Preventive, diagnostic and orthodontic care are not subject to the deductible. ** Benefit levels for orthodontia provided by an out-of-network orthodontist are applicable only if there is no Delta Dental PPO or Delta Dental Premier orthodontist within a 20-mile radius of your home address. Benefits are provided at 50% coinsurance with a $2,000 lifetime maximum. *** Percentages based on Delta Dental’s Maximum Plan Allowance or dentist’s actual fee, whichever is less. Current Year Contributions for Dental Coverage If you want dental coverage, the following per-pay-period contributions will apply: 2008 Contributions Dental employee employee employee +2 or more +1 $4.14 $9.23 $18.02 Revised: 1/14/2008 11 Your Flexible Spending Accounts You probably have health care bills that are not completely covered by your medical or dental plans. Or maybe you need to pay for day care for a dependent while you work. Participating in a Flexible Spending Account (FSA) can help. Flexible Spending Accounts (FSAs) let you set aside funds on a pre-tax basis to pay for anticipated out-of-pocket health care and dependent care expenses not covered under a health care plan. You must estimate how much you think you will spend on out-of-pocket health care and dependent care expenses during the year. Your FSA contributions will be deducted from each paycheck on a pre-tax basis. Unused monies in your FSAs will not be refunded to you. Any money you set aside, but do not spend by year-end, will be forfeited pursuant to the terms of the Plan and IRS requirements. (You have three months after the end of the year to file claims for that year.) Consequently, it is critical that you plan carefully and obtain both a quote and assurance that you are a candidate for certain elective surgeries (e.g. Lasik, dental) before setting aside money in an FSA. Once you enroll in a Flexible Spending Account, you may only change your election during the plan year if you have a change in family status. CBIZ is the administrator for AARP’s Flexible Spending Accounts. Pay for Your Over-The-Counter Medications Tax-Free! You can use your Health Care FSA to reimburse yourself — tax-free — for the cost of certain overthe-counter (OTC) medications. These include antacids, pain relievers, cold medicines, allergy medicines, and other non-prescription drugs used to treat injury or sickness. Toiletries, cosmetics, vitamins, and other dietary supplements are not included. For more information, go to www.myflexonline. com or call CBIZ directly at 1-800-815-3023, option 4. 12 The Health Care FSA The Health Care FSA helps you reduce your taxable income by allowing you to pay for eligible medical expenses tax-free. Each year, you can set aside up to $10,000 in pre-tax earnings to pay for eligible medical, dental, prescription, and/or vision expenses that are not covered under a health care plan for yourself (your spouse and your dependents even if they are not covered under your AARP plan). You can set up a Health Care FSA even if you elect to waive medical and/or dental coverage in a year. Note: Domestic partner expenses are not eligible for reimbursement through a health care FSA unless your domestic partner is also your tax dependent. Eligible medical expenses include deductibles, co-pays, coinsurance, certain over-thecounter drugs, eyeglasses and contact lenses, orthodontia, and even laser surgery for vision correction. For a complete list of eligible expenses, refer to IRS Publication 502, available at www.irs.gov or from your local IRS office. In addition, you can refer to the “Bank on a Tax Break” brochure posted on InfoNet for examples of eligible expenses. The Dependent Care FSA The Dependent Care FSA allows you to set aside up to $5,000 in pre-tax earnings each year to cover eligible dependent care and elder care expenses incurred while you and your spouse are at work, or while you are at work and your spouse is attending school full-time or is disabled. For a complete list of eligible expenses, refer to IRS Publication 503, available at www.irs.gov or from your local IRS office. In addition, you can refer to the “Bank on a Tax Break” brochure posted on InfoNet for examples of eligible expenses. You must actively re-enroll in the FSAs every year if you wish to participate. Revised: 1/14/2008 Planning Your FSA Contributions When considering how much to set aside in the Health Care and/or Dependent Care FSAs, it is important to plan wisely. Because FSAs provide an opportunity to save on taxes, the IRS requires that any money remaining in an FSA at the end of the year must be forfeited. As you think about what FSA contributions might work best for you, here are some questions you may want to consider: How much did you spend last year out of your own pocket for expenses (e.g., deductibles, co-pays, and coinsurance) not covered under a medical plan? Often, how we use medical plan services today can be a good predictor for our needs in the future. Will you need to arrange for dependent care and/or elder care services so that you and your spouse can work? If you know now that you will need these services during the calendar year, a little advance planning can lower your out-of-pocket expenses and reduce your income tax for the upcoming year. You and your spouse together may not set aside more than $5,000 for 2008. Using Your Health Care FSA for Orthodontia Expenses If you plan to use your Health Care FSA to pay for orthodontia expenses, remember the plan generally reimburses eligible expenses (such as regular monthly payments) incurred in the plan year during which you make contributions. Many orthodontia treatments extend beyond one year, so you may want to consult with your orthodontist and be sure to estimate your Health Care FSA contribution based on the orthodontia expenses you expect to incur this year. Getting Reimbursed When you have eligible FSA expenses, generally you pay the bills and then submit claim forms (only the last 4 digits of your SSN are required to process the claims form) and receipts to CBIZ, the FSA plan administrator, for reimbursement. The cut-off for submitting claims is March 31 of the year following the year in which you incurred the expenses. CBIZ can mail you a check for reimbursement or you can enroll in direct deposit by using the form available on InfoNet for CBIZ. The AARP FSAs are enhanced by the Take Care Card as a reimbursement option. This is a Visa debit card. Your Take Care Card can be used nationwide wherever Visa is accepted, and if the merchant is an authorized merchant for purposes of health care and/or dependent care services. Examples of authorized merchants include pharmacies, doctor’s offices, vision care centers, dentist offices, hospitals, and day care centers. You (and your spouse upon request) will receive a Take Care Card when you enroll in a FSA. When you use the Take Care Card, direct payment is made from your FSA to the provider of services. CBIZ may still require you to submit receipts from transactions using the Take Care Card, so it is important to retain all of your receipts. If you do not submit a receipt requested by CBIZ within 30 days, your card will be deactivated. Additional information on FSAs, the Take Care Card, and claim forms is available on InfoNet, or by calling CBIZ at 1-800-815-3023, option 4. You can also check your account balance and account activity at www.myflexonline.com. Spending Account Health Care Flexible Spending Account Dependent Flexible Spending Account 2008 Annual Limit $10,000 $5,000 Revised: 1/14/2008 13 Your Transit Program AARP understands that commuting to and from work can be expensive. That is why AARP offers the Transit Program, which allows you to set aside pre-tax dollars to pay for eligible commuter-related parking and/or public transportation expenses. Parking Reimbursement You must submit your claims for reimbursement within 180 days of the date the expenses were incurred. The Transit Program is not a “use it or lose it” plan. You can carry over to the next year any unused contributions from the current year, regardless of whether you choose to participate in the parking program in the next year. If you enroll in the Transit Benefit, you may also enroll in the Parking Reimbursement Account if you will have commuter-related parking expenses as well. Parking Reimbursement Benefit In 2008, you may contribute up to $220 per month for work-related parking expenses. All full-time and part-time employees in any AARP location are eligible. The minimum monthly contribution is $20. Pre-tax deductions will be taken equally from your paycheck twice a month. When you have eligible parking expenses, you will generally pay for the expense, then submit a claim form and receipts to CBIZ, the plan administrator, for reimbursement. You must submit claims for parking reimbursement within 180 days of the date the expense was incurred. CBIZ will mail you a check for reimbursement. Transit Benefit The transit benefit allows you to purchase monthly mass transit passes on a tax-free basis. The transit benefit is available only in Washington D.C., New York, Boston, and Chicago. The amount you contribute toward transit benefits should reflect your monthly transit expenses, but may not exceed $115 per month. The minimum contribution is $20 per month. Pre-tax deductions will be taken equally from your paycheck twice a month. NOTE: If you are in the Washington, D.C. area, your monthly transit benefit election must be divisible by $5.00. If not, it will automatically be rounded down to the closest increment of $5.00. You may elect either: Metrochecks from Petty Cash or Smart Benefits which must be downloaded by the end of each month to your smart card or you will lose the benefit for that month. Changing Transit Program Expenses You may cancel your transit program enrollment at any time, to be effective the first of the month following your request if you submit your request by the tenth of the month. You may not otherwise change or enroll except during annual Open Enrollment unless certain circumstances apply (such as a change in residence). You must actively re-enroll in the Transit Program every year if you wish to participate. 14 Revised: 1/14/2008 Income Protection Benefits Providing protection from the unexpected for you and your family is an important part of the AARP benefits program. AARP income protection benefits include life insurance, accidental death and personal loss coverage, business travel accident coverage, and short-term and long-term disability income protection. Life Insurance AARP offers different levels of life insurance coverage, so you can select the combination of coverage that is right for you and your family. AARP provides the basic level of coverage and you can opt to add supplemental coverage for yourself and/or your eligible dependents. All premiums for the supplemental life insurance programs are deducted from your pay on a post-tax basis. Aetna is the insurer for the AARP life insurance program. Do You Have Sufficient Income Protection for You and Your Family? Basic and supplemental life insurance can help you achieve this additional financial security. Basic Coverage Basic life insurance coverage is equal to one and a half times your base pay (or annual salary) and is provided at no cost to you. The basic life insurance maximum is $500,000. If you would like additional life insurance, you may increase your coverage by electing supplemental life insurance. You will be taxed based on the value of the benefit for basic life insurance coverage to the extent that your coverage exceeds $50,000. Supplemental Coverage for You If you want more insurance than the basic coverage provides, you may elect to purchase supplemental life coverage for yourself at one to five times your annual salary. You pay the full cost of any supplemental coverage you elect on an after-tax basis. Your contributions are based on your age and the amount of coverage you elect. Your combined Basic and Supplemental Life coverage cannot exceed $2,000,000. If you are a new hire or newly eligible for life insurance, you may elect 1,2,3,4 or 5 times your salary up to $300,000 without Evidence of Insurability (EOI). If you elect more than $300,000, you will be contacted and provided with instructions and an EOI form to complete for amounts that require EOI. If you are already enrolled in Supplemental Life, you will be able to increase your coverage each year during the Fall Open Enrollment for one times your salary up to a maximum of $300,000 without EOI. If you (1) have not selected Supplemental Life coverage in the past and are enrolling during Open Enrollment, (2) elect to increase current supplemental coverage by more than one times your salary or (3) elect supplemental coverage that exceeds $300,000; you will need to provide EOI to Aetna Life Insurance before such coverages is approved. You will be contacted directly by Aetna, via mail, and provided with instructions regarding application and approval for amounts that require EOI. Your Contributions for Supplemental Life Insurance Supplemental Life Insurance Your age as <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 >85 of 1/1/08 Monthly cost per $1,000 of coverage .045 .050 .070 .080 .090 .140 .230 .400 .590 1.140 1.850 2.600 4.370 6.550 Revised: 1/14/2008 15 Life Insurance for Your Dependents Spouse/Domestic Partner (registered with AARP) You can purchase life insurance for your spouse or domestic partner (registered with AARP) in increments of $10,000 up to 50% of your own combined Basic and Supplemental Life insurance coverage (or $250,000, if less). If you are a new hire or are electing life insurance for your newly eligible spouse or domestic partner due to a qualifying status change, you may elect up to $50,000 without EOI. If you elect more than $50,000, you will be contacted and provided with instructions and an EOI form to complete for amounts that require EOI. During Open Enrollment if your spouse is already enrolled, you will be able to increase your spouse life insurance coverage by $10,000 up to $50,000 without Evidence of Insurability (EOI). If you (1) have not selected life insurance coverage on your spouse in the past and are enrolling during Open Enrollment, (2) elect to increase current spouse coverage by more than $10,000 or (3) elect spouse coverage that exceeds $50,000; you will need to provide EOI to Aetna Life Insurance before such coverage is approved. You will be contacted by Aetna, via mail, and provided with instruction regarding application and approval for amounts that require EOI. Life Insurance for Spouse or Domestic Partner Spouse’s age as of 1/1/08 Monthly cost per $1,000 of coverage <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 >85 .063 .063 .072 .090 .135 .225 .360 .558 .846 1.314 2.080 3.230 8.470 8.920 Child Coverage You can insure your child(ren) up to age 19 (until age 25 if a full-time student). Coverage of $10,000 will be provided for each enrolled child. The premium for your children’s coverage is $1.10 per month, regardless of the number of children you cover. Coverage After Termination Please note that if your employment with AARP is terminated and you wish to continue your life insurance coverage (either through conversion or portability), you may contact Aetna at 1-800-826-7448. Accidental Death and Personal Loss You are automatically covered if you are covered under Basic Life. If you die as the result of an accident (within 365 days of the accident) while your life insurance benefit under AARP is in force, accidental death benefits will equal 150% of your annual salary (to a maximum of $500,000). In addition, if you suffer certain losses as the result of an accident (e.g. the loss of a hand, foot, etc.), personal loss benefits may provide an amount up to 150% of your annual salary, depending upon the nature of the loss. Business Travel Accident Insurance (BTA) AARP’s Business Travel Accident (BTA) insurance plan provides employee-only coverage for accidental bodily injury resulting in death, dismemberment or loss of sight, speech, or hearing while you travel anywhere in the world on AARP-related business. BTA also provides a limited medical treatment benefit. You are automatically eligible for coverage under the BTA Plan as of your first day of employment, regardless of your 16 Revised: 1/14/2008 employment status. AARP pays the entire cost of your coverage under the BTA Plan. For more information about Business Travel Accident Insurance, refer to InfoNet. Beneficiary Information When you become eligible for life insurance coverage, you will need to designate a beneficiary(ies), the person (or persons) who will receive life insurance benefits in the event of your death. You are automatically designated as the beneficiary for spousal/ domestic partner and dependent life insurance. You may name, add, or change your beneficiary(ies) at any time. To do so, you can go online to www.aetna.com/group/aarp and either make your changes online, or you can download a form to complete and mail directly to Aetna. Disability Coverage A disabling illness or injury can be financially devastating. That’s why AARP provides you with disability coverage to provide replacement income if you are out of work due to an eligible non-work-related injury or illness. There is no cost to you for this coverage. You are considered totally disabled if you are limited from performing the material and substantial duties of your regular occupation due to your sickness or injury. Aetna is the plan administrator of AARP’s disability plans. For more information about disability coverage, refer to InfoNet. Short-Term Disability (STD) Coverage Short-Term Disability (STD) coverage protects your income in the event of a sickness or injury that prevents you from working for a period of time, up to a maximum of 26 weeks. There is an elimination period before approved STD benefits would begin: Zero days for disability due to an injury, or Seven days for disability due to an illness. If you are approved for STD, your benefits would begin the first day after your elimination period or the first day of your disability if due to an injury. You would receive 66 2/3 % of your annual base salary, to a weekly maximum of $3,462, for approved STD leave and be paid bi-weekly through payroll. Benefit contributions will be deducted from your bi-weekly disability paycheck, and federal and state taxes according to your most recent withholding forms will also be withheld from your disability pay. Long-Term Disability (LTD) Coverage To be eligible for long-term disability, you must be regularly scheduled to work at least 26.25 hours per week. Long-Term Disability (LTD) coverage pays benefits if you are out of work due to an approved disability for more than six months. If approved, monthly benefits begin the day after the six-month elimination period at 66 2/3 % of monthly salary, to a maximum benefit of $15,000 per month. Note for all Disability Coverage: AARP pays the full cost of this coverage, and as a result when disability payments are made, they will be subject to taxes. Please refer to InfoNet for more information regarding the disability programs. To File a Disability Claim Details on filing a disability claim can be found on the InfoNet under Disability Leave. Revised: 1/14/2008 17 Retirement Benefits Did you know that if you are contributing less than 5 percent of your eligible pay to your 401(k) you are leaving money on the table by not taking advantage of AARP’s generous match of 100% of the first 3 percent contributed and 50% of the next 2 percent? As our mission states, AARP is dedicated to enhancing quality of life for all as we age. AARP is proud to offer a 401(k) plan with an employer match, a generous pension plan (ranked in the top 25% as compared to similar organizations), and retiree medical coverage. Offering all three of these programs reflects AARP’s commitment to giving our employees resources they need to build their retirement security. AARP Employees’ 401(k) Plan AARP offers a 401(k) Plan to all employees. There are no specific age or service requirements to start contributing. Start Saving Today New Hires receive, via mail, a PIN and instructions about how to enroll from T. Rowe Price. Once you receive these instructions, you may contact T. Rowe Price at 1-800-9229945 to enroll by phone, or log onto the myRetirementPlan website at rps.troweprice.com. New Hires who do not enroll or or do not waive enrollment in the 401(k) Plan within 45 days of their hire date, will be automatically enrolled at 3 percent of their salary in the age appropriate TRP Retirement Fund. Contributions will begin as soon as administratively possible after this 45-day period. How it Works AARP offers you the opportunity to contribute to a savings plan with the boost of matching contributions from AARP. The 401(k) Plan helps you save money by allowing you to make pre-tax contributions, which lowers your annual income taxes. Saving money in the 401(k) Plan is convenient because your contributions are automatically deducted from your paycheck. You choose how to invest your money by selecting from a variety of investment funds. The value of your account is based on your contributions, AARP’s contributions and investment performance. You can learn more about each of these funds through the T. Rowe Price website at rps.troweprice.com. Your Contributions The 401(k) Plan allows you to make pre-tax and/or after-tax contributions from 1% to 50% of your eligible pay by electing the percentage of pay or a flat dollar amount per pay period, up to the IRS maximum limit each year. You can also designate a different contribution amount for your incentive pay. For 2008, the IRS limits are: $15,500 in pre-tax contributions ($20,500 if you are age 50 or over) $46,000 in combined pre-tax, after-tax and employer matching contributions ($51,000 if you are age 50 or over.) Matching Contributions — Immediately 100% Vested AARP matches 100% of your pre-tax contributions up to 3 percent of your eligible pay, plus 50 percent of your pre-tax contributions on the next 2 percent of your eligible pay. That means that by contributing to your 401(k) account, you’re getting free money in your account through AARP’s matching contributions. Catch-Up Contributions If you are age 50 or over by the end of the year, you are eligible to contribute additional pre-tax “catch-up” contributions, over and above other limits imposed by the provisions of the 401(k) Plan or applicable laws. The catch-up contribution limit is $5,000. To sign up for catch-up contributions, please complete the “Catch-up” Contribution Enrollment form available on InfoNet and return it to your HR Service Delivery 18 Revised: 1/14/2008 Representative. Faxed forms will be accepted. You will not need to complete a new enrollment form each year: your enrollment rolls over from year to year. Beneficiary Information Your beneficiary for the 401(k) Plan is automatically your legal spouse if you are married or your AARP registered domestic partner. If you would like to change your beneficiary, you must obtain notarized consent from your legal spouse or your AARP registered domestic partner. Information about the definition of a domestic partner, the rights of a registered domestic partner or registering a domestic partner with AARP can be found on InfoNet. If you are single, you must name your beneficiary by completing the beneficiary form found on the InfoNet and returning the form directly to T. Rowe Price. Pension Benefits Calculator You can project your pension benefits using the pension benefits calculator available on the myRetirementPlan website at rps.troweprice.com using variables you select such as expected retirement date and employment separation date. Just access your personal account with your user name and password and click the "Pension Benefits" link (right next to the "AARP Employees' Pension Plan" link). AARP Employees’ Pension Plan Eligibility Participation in the pension plan is automatic. You are automatically enrolled in the pension plan as a participant on the January 1 or July 1 that coincides with or follows the first anniversary date of your date of hire if you have completed at least 1,000 hours of service by your anniversary date. You receive a credited year of service for each calendar year in which you worked at least 1,000 hours. Highest Average Compensation Highest average compensation is the average annual compensation paid to you during the five consecutive calendar years that produce the highest average compensation. Benefit Formula The longer you work for AARP, the larger your retirement benefit could be. If you are a pension plan participant hired on or after January 1, 2008, your age 65 benefit is 1.0% times your highest average compensation times your years of credited service If you are a pension plan participant hired January 1, 2005 through December 31, 2007, your age 65 benefit is 1.4% times your highest average compensation times your years of credited service. If you are a pension plan participant hired prior to January 1, 2005, your age 65 benefit is 1.65% times your highest average compensation times your years of credited service. Special rules apply if you are a rehired employee. Vesting Under the current pension plan provisions, you are fully vested at the earlier of your completion of five years of credited service prior to termination, or attainment of age 65 (you must be a pension plan participant). Normal Retirement Date Your normal retirement date is the first day of the calendar month that coincides with or next follows the date you attain age 65. If you decide to continue to work at AARP, you may elect to receive your pension benefits at age 65, or you can defer the receipt of your pension benefits until a later date. Please refer to InfoNet for more detail. Beneficiary Information Your beneficiary for the Pension Plan is automatically your legal spouse if you are married or your AARP registered domestic partner. Information about the definition of a domestic partner, the rights of a registered domestic partner or registering a domestic partner with AARP can be found on InfoNet. For single participants, in the event of your death prior to benefits commencing, no pension benefit will be payable from the Pension Plan to anyone else on your behalf. Revised: 1/14/2008 19 Additional Benefits and Programs Please refer to InfoNet for more detailed information on these programs. AARP Membership Employees of AARP are also members and can partake of many of the same benefits as our members. AARP Recognizes You This program provides recognition to employees via points that can be used to redeem various gifts at service milestones; for referring talent to AARP that is hired; and to recognize employees in a manner more significant than praise or thanks. Adoption Benefit Employees who legally adopt a child are eligible for reimbursement of eligible expenses up to $3,000 per child. Bank of America Employees are eligible for fee-free checking accounts with direct deposit of pay. Other banking-related discounts are available, as well. CDW Computer Centers Employees can receive discounts on personal online purchases of hardware, software, and electronic products through this program. Credit Unions Employees are eligible to join a credit union in D.C. (Engraving and Printing Federal Credit Union) or Lakewood (LBS Financial Credit Union), and take advantage of the many financial benefits credit union membership offers. Empire State College Employees can earn an Associate and Bachelor degree through this distance learning program of the State University of New York (SUNY). The program is delivered over the Internet and through faculty visits to our headquarters. The program is managed and financed by AARP. There is no cost to employees for this program. Employee Active for Life Program AARP offers employees the opportunity to participate in various health and wellness activities, including “Walking Wednesdays,” annual flu shots, Weight Watchers, health fairs, and more. Evercare Connections This program helps employees manage the challenges of caring for an aging parent, relative, or spouse. Employee Crisis Fund This fund, operated through the AARP Foundation, may provide financial assistance up to a maximum of $5,000 to eligible employees in the event of a catastrophic and unanticipated financial crisis (e.g. as a result of the sudden death of a family member, illness, fire, catastrophic medical expenses, etc.), if all liquid and other financial resources have been exhausted. Retiree Medical Coverage AARP offers retiree health coverage (medical, prescription drugs, and vision care) to employees who, at the time they separate, are at least 55 years old, have 15 years of credited service as defined by the pension plan, and are enrolled in an AARP health plan. 20 Revised: 1/14/2008 Fitness Credit Reimburses employees up to $100 per year for participation in fitness activities of their choice, from personal training to weight management programs. Flexible Work Arrangements Various options may be available to employees regarding the scheduling of work arrangements, including teleworking. Global Fit Membership Provides employees a range of convenient, affordable healthy living programs, including access to discounted fitness club memberships. Legal Insurance Employees may purchase legal insurance from Legal Resources for such services as legal counsel, will preparation, attorney fees for buying and selling homes, family law, credit issues, traffic issues and court representation. LifeWorks (EAP) Available to employees as a confidential consultation and referral service to assist with a variety of personal, family, and work issues. Long-Term Care Insurance Employees may purchase long-term care insurance from MetLife, subject to evidence of insurability. You may not be subject to evidence of insurability if you enroll within 90 days from your hire date. Performance Plus Bonus Employees who demonstrate extraordinary individual or team accomplishment may be nominated and approved to receive a monetary award through this program. Phased Retirement This program offers eligible employees opportunity to “ease into” retirement through a number of options, including reduced hours, flexible work options, stepping into positions of less responsibility and specifically identified phased-retirement positions. Savings Bonds Employees may purchase savings bonds through convenient payroll deductions. Software Purchase Program Employees may purchase Microsoft products at substantial discounts through this program. Tuition Assistance Employees may receive up to $4,000 in annual tuition reimbursement for enrollment in a position-relevant degree or certification program at an accredited educational institution. United Buying Service (UBS) Employees in the D.C. Metropolitan area are eligible to participate in this program and purchase a vehicle at a pre-negotiated rate. Working Advantage This is a savings portal available to employees that offers discounts for many different activities such as amusement parks, movie tickets, sporting events, etc. Revised: 1/14/2008 21 Did you know about all of the benefits AARP offers you as an employee, in addition to those included in your AARP membership? Check InfoNet for more information. Paid Time Away from Work AARP has a wide range of paid time off programs. The following is a brief explanation of these programs. Vacation Time Regular employees begin accruing vacation leave on their first day of employment at a rate based on a 35-hour work week, according to the following schedule: Accrual Rates for Full-Time Employees Years of Service Less than 4 years: From the first day of employment through the end of the third complete year of service 4 - 6 years: From the beginning of the fourth year through the end of the sixth complete year of service Per Pay Period Annual Maximum Accrual 4.04 hours 15 workdays or 105 hours 15 workdays or 105 hours 5.38 hours 20 workdays or 140 hours 20 workdays or 140 hours More than 7 years: From the beginning of the seventh year 6.73 hours through remaining employment 25 workdays or 175 hours 25 workdays or 175 hours Once the maximum accrual is reached, the employee will stop accruing leave until the balance is reduced by taking leave. Part-Time Accruals — Part-time employees accrue vacation leave on a prorated schedule. Contact your Human Resources service delivery representative for details or assistance. Accrual of Vacation Leave during Unpaid Leave — Vacation leave does not accrue while an employee is on leave-without-pay status. Carryover from Year to Year Employees may carry over unused vacation leave from year to year until they reach the maximum accrual balance allowed for their years of service. (See the chart above.) 22 Revised: 1/14/2008 Sick Leave Regular employees begin accruing sick leave on their first day of employment at the rate of one average workday per month (e.g., seven hours for a full-time employee). Sick leave does not accrue while an employee is on leave-without-pay status. Carryover from Year to Year and Maximum Accrual Amounts Employees can accrue up to 12 workdays of sick leave and carry it over from year to year. Part-time employees accrue sick leave on a pro-rated schedule. Once the maximum accrual has been reached, sick leave stops accruing until the balance is reduced by taking leave. Hourly Accrual Rates and Maximum Accrual Balances Scheduled hours per pay period Accrual rate in hours per pay period Maximum accrual amount in hours 70 56 42 28 14 3.23 84.0 2.58 67.2 1.94 50.4 1.29 42.0 .65 33.6 For additional detail on Leave Programs, please refer to InfoNet. Holidays AARP observes nine organization-wide holidays and two individual holidays. Nine of the eleven annual AARP holidays are fixed: New Year’s Day Martin Luther King, Jr. Day President’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Day after Thanksgiving Christmas Day Individual Holidays In addition to the nine annual AARP holidays, all employees receive two additional paid individual holidays that can be used for any reason. Employees receive these paid individual holidays (not to exceed 14 hours) at the beginning of each calendar year. Part-time employees receive individual holiday pay for only those hours they are normally scheduled to work on the day they use their individual holidays. If individual holidays are not used during the calendar year, the holidays are forfeited. Employees cannot receive pay in lieu of individual holidays. Revised: 1/14/2008 23 Parental Leave AARP offers three weeks of paid leave to birth and adoptive parents to care for a new baby or child. This leave is in addition to any other benefits currently offered to AARP employees upon the birth or adoption of a child. During parental leave, eligible employees are paid their regular base salary, plus any shift or geographic premiums in effect at the time of leave. This program covers employees who have recently given birth, whose spouse or domestic partner has given birth, or with whom a child has been placed for adoption. The policy covers full-time employees who have been with AARP for a minimum of one year at the time of the birth or placement of adoption. Renewal AARP’s Renewal Program offers eligible employees a dedicated period of paid time away from work — four weeks — to disconnect, refresh, and replenish their inner reserves. Renewal leave must be taken in a four-week block. Employees may extend Renewal with accrued vacation leave, with manager approval. The Renewal must be completed within 24 months, starting June 1 of the year in which the date the invitation is extended, or the Renewal is forfeited. To be eligible, you must be an employee in good standing, have completed at least seven consecutive years as a full-time employee, and meet other requirements listed in detail on InfoNet. 24 Revised: 1/14/2008 Notes ThinkSmart . ThinkAhead This Guide provides an overview of your benefits effective January 1, 2008, but it is only a summary. Full details for each program described here can be found in the appropriate Summary Plan Descriptions (SPDs) or Plan documents. If there is any discrepancy between this Guide and the SPDs or Plan documents, the SPDs and/or Plan documents will govern. While AARP intends to continue these plans indefinitely, the company reserves the right to change or discontinue them at any time for any reason. The power to make it better.