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Who is eligible to enroll in benefits

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									2010 Benefits
   Manual


    ResCare Incorporated
   9901 Linn Station Road
    Louisville, KY 40223
        502.394.2100
    2010 BENEFITS MANUAL




                                             Table of Contents

CHAPTER 1                                                                       CHAPTER 6
Introduction                                                                    Part-time Benefits
Purpose & Scope ....................................................... 3       Overview .................................................................. 28
                                                                                Part-time Benefits Enrollment & Eligibility ............... 28

CHAPTER 2
                                                                                Waiting Periods ........................................................ 28
                                                                                Enrollment Periods .................................................. 29
Benefits Contacts                                                               Part-time Benefit Plans ............................................ 29
                                                                                                                                    3
Resource Center ........................................................ 4
Employee Benefits Line ............................................. 5
                                                                                CHAPTER 7
CHAPTER 3
                                                                                401K Retirement Savings and Employee Stock
                                                                                Purchase Plan
HR Rep Responsibilities                                                                                                11
                                                                                401K Retirement Savings ........................................ 31
Health and Welfare Overview .................................... 6              Employee Stock Purchase Program ........................ 33
Benefit Enrollment Information ................................... 6

                                                                                CHAPTER 8
Ordering Materials ...................................................... 7
Benefits Enrollment/Orientation Meetings .................. 7
Enrollment Periods and qualifying events .................. 8                   Frequently Asked Questions
Processing/Sending Paper Enrollment Forms ......... 11                          FAQ’s ....................................................................... 35
Annual Open Enrollment .......................................... 12
Transferring Benefits ................................................ 13
Termination of Benefits ........................................... 14
Audit Reports ........................................................... 15
Missed Deductions ................................................... 15
Change of Address .................................................. 16
Qualified Medical Child Support Orders ................... 16
COBRA..................................................................... 17


CHAPTER 4
Benefits Eligibility and Enrollment for Full-
time Employees                                                                                                                        6
Benefits Enrollment Eligibility ................................... 19
Waiting Periods ........................................................ 19


CHAPTER 5
Overview of Full-Time Benefits                                                                                                        3
Major Medical Health Insurance .............................. 21
HMO Health Insurance ............................................. 22
Supplemental Health Insurance ............................... 22
Flexible Spending Accounts ..................................... 22
Life Insurance ........................................................... 23
Short-term Disability ................................................. 25
Long-term Disability ................................................. 26




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2010 BENEFITS MANUAL




Chapter 1:

Introduction
Purpose & Scope
The 2010 Benefits Manual is intended as a reference tool for Human Resources
Representatives. It provides basic information about the benefit plans ResCare offers its
employees and about the HR Rep’s responsibilities in relation to benefits. The Benefits
Manual consolidates and simplifies much of the information found in various other policy
and plan documents, providing HR Reps with a single source for basic benefits
information. It is intended for use in conjunction with specific plan documents and with
the Human Resources Policy & Practice Manual.
The Benefits Manual provides a variety of information regarding ResCare benefits.
Included are:
              Resource Center benefits contact information.
              Explanation of the HR Rep’s benefits-related responsibilities.
              Guidelines for employee benefit eligibility and enrollment.
              Basic overview of various benefit plans.
              Frequently asked questions about benefits.




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Chapter 2:

Benefits Contacts
Resource Center
Listed below are your contacts in the People Department at the Resource Center.
Contact the Benefits Team for various benefit questions and issues, including those
about benefit information, qualifying events, deductions, transfers, and rehires. To
reach any of these individuals, dial ResCare’s toll-free number (1-800-866-0860) and
select the appropriate extension. You can also fax these individuals at 1-502-394-
2235. The mailing address for the Resource Center Benefits Team is: ResCare
Resource Center, 9901 Linn Station Road, Louisville, KY 40223.

        Name                               Title                        Extension/E-mail
Terri Board              Director of Benefit Services—Health                   2278
                         and Welfare Plans                              tboard@rescare.com
Carol Masters            Benefit Services Analyst—Health and                   2442
                         Welfare Plans: FMLA, Customer                 cmasters@rescare.com
                         Service Support, including qualifying
                         events and eligibility
Jeff Jecker              Benefit Services Coordinator—Health                   2390
                         and Welfare Plans: Life, STD, and LTD,         jjecker@rescare.com
                         Qualified Medical Child Support Orders
                         contact, Customer Service Support,
                         including qualifying events and eligibility
Bernetta Manning Retirement Services Manager—401K,                             2173
                 FSA, Employee Stock Plan                              bmanning@rescare.com
Margaret Bast            Retirement Services Analyst—401K,                     2208
                         FSA, Employee Stock Plan                       mbast@rescare.com
LaShonda Baker           Retirement Services Analyst—401K,                     2629
                         FSA, Employee Stock Plan                       lbaker@rescare.com




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Renee Krebs              HRIS Benefits Systems Manager—                     2379
                         Enterprise                                  rkrebs@rescare.com

Keith Henglein           HRIS Benefits Financial Analyst—Billing,           2277
                         Vendor Extracts                            khenglein@rescare.com
Kim Williams             HRIS Benefits Analyst—Enterprise HRIS              2356
                         support for Northern, Southern and         krwilliams@rescare.com
                         Southwest Regions, Pharmacy
                         Alternatives, Rest Assured
Beth Masters             HRIS Benefits Analyst—Enterprise HRIS              2280
                         support for Central, PacWest Regions and    bmsters@rescare.com
                         ETSG
Open Position            HRIS Benefits Coordinator – Enterprise
                         HR Support


Jackie Bell              HRIS Benefits Analyst – Enterprise,                2139
                         Vendor extracts                             jmbell@rescare.com
Sarah Cotton             HRIS Benefits Analyst—Enterprise                   2550
                         Reports                                     scotton@rescare.com


Employee Benefits Line
Contact the Employee Benefits Line for ALL claims and provider issues.
                             ResCare Employee Benefits Line
Lisa Day or Dorothy          Assists employees with claims issues 1-866-737-4232
Blackburn                    and plan design questions relating to
                             the Health and Welfare Plans.




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Chapter 3:

HR Rep Responsibilities
Health and Welfare Overview
The HR Rep is responsible for managing all aspects of employee benefits at the operation.
Responsibilities include:
     Benefit Enrollment;
     Qualifying Events and Status Changes;
     Ordering benefit materials;
     Conducting benefit enrollment/orientation meetings;
     Collecting benefit enrollment forms, including HMO enrollment forms where
      applicable;
     Completing Personnel Action Forms (PAF) in a timely manner;
     Contacting the Benefits Team at the Resource Center to transfer benefits;
     Sending all Qualified Medical Child Support Orders to the Resource Center for
      processing;
     Understanding and complying with COBRA; and
     Reviewing all insurance reports and audits

This chapter provides a review of duties associated with these benefit responsibilities.

Benefit Enrollment Information

The HR Rep is responsible for providing a ResCare Enrollment Guide to every
benefits-eligible employee at his/her location. The HR Rep must also present a
Benefit Acknowledgment Form to the employee with the enrollment guide and obtain
a signature from the employee. This acknowledgment form should be kept in the
employee’s file for proof that he/she received the benefit information. HR Reps
should remind employees that they have sixty (60) days from the initial hire date to
enroll in benefits. Personalized information will be available online after 30 days.
Employees must enroll online at www.rescarepeopleconnect.com. Instructions for the
online enrollment are included in the Enrollment Guide.

Other Enrollment materials available upon request:
 Anthem Booklet (provider directories are available on-line at www.anthem.com)
 HMO packet/enrollment form (California employees - Kaiser plan only)


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     MetLife booklets – short-term and long-term disability, life insurance
     Starbridge brochure for part-time/PRN/On-call employees is available in .pdf
      format upon request.

Ordering Materials
The HR Rep at each location should keep a supply of enrollment guides on hand for
new hires. To order a supply of enrollment guides, please contact Standard Register.
You will need to order enrollment guides according to the Benefit Program assigned
to your location. To request additional enrollment materials such as Anthem booklets,
MetLife booklets, or Starbridge brochures, contact Jeff Jecker.

Benefits Enrollment/Orientation Meetings
Benefits enrollment/orientation meeting must be scheduled with each new employee.
A sign-in sheet is recommended to track attendance.
The HR Rep must:
       Present Benefits Enrollment Guide to employee.
       Provide a Benefit Acknowledgement Form to the employee. Have him/her
          sign and date the form and return it to you at the end of the meeting.
       Remind the employee that all benefit elections must be made within the
          first thirty (60) days of the initial date of hire. They will have 30 days to
          review the guide and 30 days to enroll online.
       Provide an overview of current benefit options. CD’s and PowerPoint
          presentations are suggested and can be obtained from the Resource Center.
       Explain the importance of employee benefit elections and make clear that the
          enrollment form is a binding document—once benefits are elected or
          declined, pre-tax benefits cannot be dropped or changed until the following
          annual enrollment period (with the exception of a status change or qualifying
          event).
       Make clear that Starbridge elections are binding as well. Coverage cannot be
          changed or dropped until the following annual enrollment period or unless of
          qualifying event. A reduction in hours is not a qualifying event for the medical
          and dental/vision plans. Employees enrolled in the Starbridge STD plan who
          fall below 25 hours per week will not be eligible for that program.
       Allow the employee time to ask questions.




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After the meeting, the HR Rep must:
       Review the attendance log to confirm that all employees attended an enrollment
          meeting, as the HR Rep is responsible for ensuring that every benefits-eligible
          employee is informed of his/her right to enroll in benefits.
       File the Benefit Acknowledgement Form in the employee’s benefit file.

While attendance at enrollment meetings should be mandatory, extenuating
circumstances exist, and an employee may be unable to attend. In this situation, the
HR Rep must contact the employee and present the benefits packet in a timely
manner, as the 60-day rule to enroll still applies.

Enrollment Periods
Initial Enrollment – New Hires
Employees will have the opportunity to enroll themselves and their eligible
dependents in benefits within the first 60 days of employment. All employees will
have access to the online enrollment system known as e∙Enrollment after 30 days. So
technically, they have 30 days to review and 30 days to enroll. They must make their
selections within 60 days of their hire date. The employee should log on to
www.rescarepeopleconnect.com. Instructions for the online enrollment are in the
Enrollment Guide.

Status Changes
Employees who experience a change in status must complete a paper enrollment form
and submit it to the HR Rep within 30 days of the change in status. The HR Rep
must provide the employee with the appropriate enrollment guide and have the
employee sign the acknowledgment form to confirm receipt of the guide. The HR
Rep must complete the PAF for the status change so that benefit elections can be
entered in to Enterprise.

          Changing from Full-time to Part-time

An employee who changes status from full-time employment to part-time
employment is no longer eligible for full-time benefits and must complete a new
enrollment form. Coverage in the full-time plans ends on the last day of the pay
period in which the status change from full-time to part-time occurs. If the employee
is enrolled in benefits that are offered to both full-time and part-time employees such
as the cancer and VSP vision plan, these plans will continue without interruption for
the part-time employee. This is a requirement under Section 125.



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If the employee wishes to enroll in part-time benefits, he/she may elect to enroll in
benefit plans offered through Starbridge. If the 3 month waiting period has already
been satisfied as a full-time employee, coverage will begin on the first day of the
following pay period.

          Changing from Part-time to Full-time
An employee who changes status from part-time to full-time is no longer eligible for
the Starbridge plans and must complete a new enrollment form. Coverage in the part-
time plans ends on the last day of the pay period in which the status change from
part-time to full-time occurs. If the employee is enrolled in benefits that are offered to
both full-time and part-time employees such as the cancer or VSP vision plan, these
plans will continue without interruption for the full-time employee. This is a
requirement under Section 125.

If the employee wishes to enroll in full-time benefits, he/she may elect to enroll in the
new full-time benefit offerings (excluding Cancer, VSP vision plans). If the 3 month
waiting period has already been satisfied as a part-time employee, coverage will begin
on the first day of the following pay period.

          Changing from FT to PT and back to FT; or PT to FT and back to PT
If the employee makes multiple status changes in a calendar year, his/her benefits will
automatically be reinstated upon the change in status if elections were made for that
calendar year. However, benefits will not begin until the first day of the following pay
period. The HR Rep must notify the Benefits Team at the Resource Center
within 30 days of the status change.

Qualifying Events
Employees who experience qualifying events may enroll themselves and their eligible
dependents in benefits or make changes to benefits elections outside of the initial and
annual open enrollment periods if they experience a qualifying event that is
consistent with the enrollment/change. Employees must complete a paper
enrollment form. The HR Rep should provide the employee with the paper form
upon notification of the qualifying event. All qualifying events must be reported to
HR with the supporting documentation within 30 days of the event. All forms
must be reviewed and approved by the Benefits Team at the Resource Center.
A qualifying event is defined as:
                Marriage, divorce, legal separation, annulment or the death of a spouse
                Birth, adoption, placement for adoption or death of a dependent child


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                The beginning or ending of employment for employee, employee’s
                 spouse’s, or employee’s dependent that results in a change to benefit
                 offerings
                Commencement of, or return from, an FMLA leave
                A dependent child becoming eligible or ineligible for coverage
                A change in residence or work location for employee, employee’s spouse,
                 or employee’s dependent child that results in a change to the medical plan’s
                 coverage area
                A special enrollment rights event under HIPAA
                      Employee declined coverage as a new hire/at open enrollment
                       because he/she had other coverage and then lost that coverage
                       through no fault of his/her own
                      Employee obtains a new dependent through marriage, birth, or
                       adoption
                      Employees have a 60 day special enrollment period if they lose
                       eligibility for Medicaid or the Children’s Health Insurance Program
                       (CHIP); or become eligible for premium assistance from the state to
                       pay for ResCare group health coverage.
                A court order (Qualified Medical Child Support Order) requiring the
                 employee to provide coverage for a child
                Entitlement to Medicare of employee, employee’s spouse, or employee’s
                 dependent child
                Unpaid leave of absence taken by employee’s spouse when coverage is
                 through spouse’s employment

A qualifying event must meet the consistency requirement—the qualifying event must
affect eligibility or the need for the benefit and the election change must be on
account of and consistent with the change. The consistency requirement does not
apply to birth, marriage, and/or adoption. In general:
                 Upon divorce, death of a spouse, or loss of dependency status, coverage
                  may only be dropped for the individual involved. However, the employee
                  may elect coverage that was lost as a result of the event.
                 If an individual becomes newly eligible for coverage under another
                  employer’s plan, the employee may only elect to drop coverage for the
                  individual if the employee provides documentation that the individual has
                  elected other coverage.
                 Medical flexible spending account elections cannot be changed based on
                  changes in group health plan coverage.


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The HR Rep must inform employees of the necessary documentation required to
support the qualifying event and change to benefit elections. Any supportive
documentation must be provided to the HR Rep within 30 days of the event. Benefit
elections cannot be changed until the documentation has been received from the
employee. Changes in benefit elections must be consistent with the qualifying event
that has occurred (e.g., adding a spouse to health care coverage would be consistent
with marriage as a qualifying event).
The effective date of any benefit change is based on the date that the written
notification is received from the employee, not the actual event date. In cases of
HIPAA special enrollment, including birth, loss of coverage, adoption, and death, the
effective date is considered the actual date of the event.
Examples of documentation:
1. Birth of baby - birth certificate or birth record from hospital
2. Marriage - marriage license
3. Loss or gain of coverage - letter from employer or insurance provider that includes
name of individual(s) covered, type of coverage, and effective date.
4. Divorce - Copy of divorce decree. Employee can drop coverage for spouse. They
can only add coverage if coverage is lost.
5. Legal guardianship - must receive court appointed guardianship paperwork
6. CHIPS - approval or denial letter from state agency
7. FMLA - employees may make changes upon commencement of or return from
FMLA. Employee must be coded as FMLA in the Enterprise system.

An employee who fails to notify the HR Rep within 30 days of the qualifying
event cannot enroll in benefits or change benefit elections until the next annual
open enrollment period.

Processing/Sending Paper Enrollment Forms                                        for
Status Changes and Qualifying Events only
The HR Rep is responsible for reviewing all completed benefit enrollment forms.
Employees who decline coverage must also complete an enrollment form indicating
they have waived coverage. The ResCare enrollment form should be sent directly to
your contact person at the Resource Center. Please do not fax forms. In California,
the Kaiser Enrollment Form should also be sent to the Benefits Department. A
copy of the ResCare enrollment form and HMO form, if applicable, should be kept in
the employee’s benefit file to be maintained at the appropriate work location.


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All forms must be completed accurately by the employee and reviewed by the HR
Rep. The Benefits Team is not responsible for reviewing the enrollment forms.
The HR Rep will be held accountable for completion of all forms.


Outlined below are the HR Rep’s responsibilities for processing paper benefits
enrollment forms.

    Confirm that employee has completed the correct enrollment form(s).
    Obtain/complete any missing information. Dependents cannot be enrolled
     without a Social Security Number and date of birth.
    Make sure employee has signed the enrollment form. The HR Rep then signs and
     dates where indicated.
    Send the ResCare enrollment form and any required documentation to the
     Resource Center.
    Maintain copies of all documents at your location.
    Send Kaiser HMO forms, if applicable, to the Benefits Department.
    Please contact the Resource Center for further instructions.

Annual Open Enrollment
ResCare employees may enroll themselves and their eligible dependents in benefits or
change existing benefit elections during the annual open enrollment period, which is
generally held in October and November. Enrollments and changes to elections
made during annual open enrollment take effect on January 1 of the following plan
year. Employees who have not met the waiting periods for benefits coverage will still
have to satisfy those waiting periods even if their initial elections are made during
open enrollment. (Example: An employee begins full-time employment on October
15, 2009—during open enrollment. His medical and dental benefits coverage will not
begin until February 1, 2010—the first of the month following three months of full-
time service—rather than on January 1, 2010). Any benefit requiring evidence of
insurability is effective on the first of the month following vendor approval.


Evidence of Insurability
If an employee enrolls in a benefit plan that requires a statement of health, the
statement of health form will be sent directly to the employee’s home address. The
employee should complete the statement of health form and return it directly to the


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2010 BENEFITS MANUAL



vendor. HR Reps should no longer distribute or accept statement of health forms due
to HIPAA regulations
Life Insurance
Keep in mind that new hires may elect up to 3x optional life without completing a
statement of health..
During open enrollment, employees can only elect to increase their supplemental life
election 1X each year. Employees who elect 4X or 5X will always need to complete
the statement of health and obtain approval from the carrier. See the MetLife booklet
and/or the Enrollment Guide for more information.
Cancer Plan
If you do not elect to enroll in the Cancer plan as a new hire, you will be required to
complete a statement of health to enroll at a later date.


Transferring Benefits
When an employee transfers from one work location to another, his/her benefits
must be transferred as well. The employee can make changes to his/her benefit
elections only if there is a change to the medical plan’s coverage area. A transferring
employee must complete a new enrollment form at the new location to elect changes.
Maintaining continuous active employment status is critical so that there is no
interruption in the employee’s benefits. The employee should not be terminated in
the HR/Payroll system.
The HR Reps at both the old and new location must take steps to ensure transfer of
benefits.
HR Rep at Location from which Employee is Transferring Must:
    Contact the HR Rep at the new location with the employee’s last date of
     employment at the old location.
    Send a copy of the employee’s current enrollment form to the new location.
    Complete a PAF and enter the data into the HR/Payroll system. DO NOT
     terminate the employee in the HR/Payroll system.
    Send employee’s benefit file to new location.



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HR Rep at Location to which Employee is Transferring Must:
 Verify with HR Rep at old location that a PAF was completed and entered into the
  HR/Payroll system.
    Complete a PAF for employee’s new address and enter data into the HR/Payroll
     system.
    Review employee’s enrollment form to confirm availability of benefits in which
     employee is currently enrolled. If benefits are not available, have the employee
     complete a new benefits enrollment form changing only medical. All other benefits
     remain the same.
    Notify the Benefits Team of any changes in benefits.

Termination of Benefits
Terminating Employees
For an employee with health and welfare benefits who terminates employment with
ResCare, coverage ends on the last day of the pay period in which the termination
occurs. Benefits deductions will be taken as long as there are hours worked within
that pay period. Health, dental, cancer, and vision coverage may continue at post-tax
rates under COBRA. See the COBRA section for information on continuation of
coverage.
If an employee terminates and is rehired within a thirty-day (30-day) period, benefits
will be reinstated with no waiting period. However, there will be a lapse in coverage.
The HR Rep must notify the Benefits Team at the Resource Center of the employee’s
rehire.
If an employee terminates employment and is rehired within 30 days and has had a
change of family status while not employed with ResCare, the employee must submit
proof of the change and an enrollment form based on the rehire date within thirty
(30) days of rehiring. Otherwise, the employee must keep the elections made prior to
termination.
If rehired after thirty (30) days, the employee is treated as a new hire, must complete a
new enrollment form, and may make new elections with appropriate waiting periods.




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Insurance Reports & Audits
The HR Rep is responsible for completing and submitting a Personnel Action Form
(PAF) for each new employee. The PAF is entered into Enterprise at the location
level by the HR Rep or Payroll Assistant. Completing and entering each PAF into
Enterprise correctly is critical to the integrity of Enterprise data. The HR Rep or
Payroll Assistant will receive payroll reports after each pay cycle and is responsible for
auditing each report for accuracy. If you identify an error while auditing the payroll
reports, you must submit documentation to your payroll processor at the Resource
Center to have the data corrected in Enterprise. The Benefits Team must be
copied on all documentation related to any correction that will affect an
employee’s benefits.

All Benefit Enrollment Forms are entered into Enterprise at the Resource Center by
the HRIS Benefits Team. The Enterprise data drives the monthly insurance expenses
charged back to each location. Benefits data are transmitted electronically from
Enterprise on a weekly basis to notify vendors of eligible participants. The HR Rep
should process the Enterprise Benefits Audit Report (RCBN0110) for auditing
purposes during open enrollment and monthly thereafter to audit benefits for new
hires and terminations. If you identify an error, contact the Resource Center Benefits
Team immediately. Vendors will only allow up to 60 days for retroactive credit for
terminated employees.

The Benefits Team will make all premium payments to the appropriate vendors. If
you have any questions regarding your location’s benefit expenses, please contact
Keith Henglein, Benefits Financial Analyst, at x2277.




Missed Deductions (Non-FMLA)
Part-time/PRN/On-call Employee
Employees that are enrolled in a health plan and fail to receive a paycheck for any
period during the calendar year, are responsible to continue to pay the employee
portion of the premium amount as if it were still coming out of his/her check. This
will prevent a lapse in coverage. If the employee fails to make a premium payment,
ResCare will take the following action:
If one (1) deduction is missed, ResCare will terminate the coverage as of the date of
the last pay period in which a full premium payment was deducted from the
employee’s paycheck. Coverage may be reinstated upon receipt of premiums due so

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long as it is within 30 days. If no premium payment is made within a 30 day period,
re-instatement will not be allowed until the next annual enrollment period.
Termination of coverage due to non-payment of premiums is not a COBRA
qualifying event.

Full-time Employee
Employees that are enrolled in a health plan and fail to receive a paycheck for any
period during the calendar year, are responsible to continue to pay the employee
portion of the premium amount as if it were still coming out of his/her check. This
will prevent a lapse in coverage. If the employee fails to make a premium payment,
ResCare will take the following action:
If one (1) deduction is missed, ResCare will request that a back deduction be taken
from the next paycheck. If two (2) consecutive deductions are missed, ResCare will
terminate coverage as of the date of the last pay period in which a full premium
payment was deducted from the employee’s paycheck. Coverage may be reinstated
upon receipt of premiums due so long as it is within 30 days. If no premium payment
is made within a 30 day period, re-instatement will not be allowed until the next
annual enrollment period. Termination of coverage due to non-payment of premiums
is not a COBRA qualifying event.
**See Policy and Procedure Manual for additional information relating to
FMLA, Leave of Absence, and Benefit Premiums during LOA. Rules are
subject to change in accordance with policy provisions.


Change of Address
An employee’s home address must always be current in the HR/Payroll system as well
as with any vendor through which the employee has coverage. All benefits-related
correspondence is mailed to the employee’s home mailing address listed in the
HR/Payroll system. Identification cards and explanations of benefits are mailed to
the home address listed on the enrollment form. 401K plan general information is
also mailed directly to the employee’s home address.
When an employee has an address change, the HR Rep must complete a Personnel
Action Form (PAF) and enter the data into the HR/Payroll system.


Qualified Medical Child Support Orders
A qualified medical child support order (QMCSO) is an order or judgment from a
state court that mandates a parent to elect coverage for a dependent child(ren) under

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that parent's health insurance plan. The purpose of a QMCSO is to provide coverage
for an employee’s dependent(s) based on a prior legal agreement. If ResCare receives
a QMCSO for any full-time or part-time employee, that employee is legally bound to
adhere to the order as defined in the Omnibus Budget Reconciliation Act of 1993
(OBRA 93). All dependents for whom a QMCSO’s is received must be enrolled as
ordered by the court and required by OBRA 93. Enrollment is immediate and is not
required to be within the annual open enrollment period. Standard waiting periods
apply.
When a QMCSO is received by the Benefits Team, the employee and dependent(s)
must be enrolled even if prior election was not made. If the employee is currently
enrolled, the dependent(s) must be added to the current plan. If the employee is not
currently enrolled, the employee is given the opportunity to enroll in the plan of
his/her choice (as long as it meets the conditions specified in the QMCSO). If the
employee does not select coverage within 10 days of notification, ResCare will select
the coverage in which to enroll the employee and dependent(s). ResCare usually
selects the most inexpensive plan.
The HR Rep should forward all QMCSO’s to the Benefits Coordinator on the
Benefits Team. The Benefits Coordinator will process each QMCSO and
appropriately enroll the employee and dependents. Initial notification will be sent to
the employee offering a choice of insurances. If the employee does not respond to
the initial notification, the Benefits Coordinator will automatically enroll the employee
and dependents. The Benefits Coordinator will send a letter informing the employee
and court of the new enrollment.


COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires
employers with more than 20 employees to offer employees and their eligible
dependents a temporary extension of health coverage at group rates in certain
situations in which coverage would otherwise end. COBRA is governed by federal
regulations that must be followed.

CobraGuard is the COBRA administrator for ResCare. Employees can
contact CobraGuard directly at 866-442-6272


COBRA is available to all full-time and part-time employees and their eligible
dependents/beneficiaries who were participating in a medical, dental, cancer, vision
plan or healthcare reimbursement account at the time of an applicable qualifying

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event. (Healthcare reimbursement account through COBRA may be continued only
through the end of the year in which the qualifying event occurs.) Qualifying events
that cause loss of coverage include:
    Termination of employment
    Reduction of hours (full-time employee changing to part-time/PRN/On-call)
    Divorce or legal separation
    Death of employee
    Employee’s Medicare entitlement
    Dependent child ceasing to be a dependent


HR Rep Role
The HR Rep is responsible for initially reporting employee termination or other
qualifying event through the Personnel Action Form (PAF). A PAF should be
completed and entered as soon as possible after an employee terminates. The
HR Rep should also make and retain a copy of the PAF.

Notification
Based on the termination/qualifying event date on the PAF, CobraGuard
automatically generates and mails initial notices of rights to continuation of coverage,
employee notification of qualifying event, notification to affected beneficiaries, and
continued health care coverage election form.
Eligible employees must receive COBRA packets within 44 days of the qualifying
event. CobraGuard sends COBRA packets by certificate of mailing to employees’
home addresses. Employees must elect COBRA coverage within 60 days of date of
loss of coverage or from the date the notice is mailed. Employees and
beneficiaries/dependents may elect coverage separately. They have 45 days from the
date of election to pay any retroactive premiums.

Documentation
CobraGuard is responsible for maintaining all COBRA documentation on all
COBRA-eligible employees. Documentation includes all forms mailed to employees
and their beneficiaries/dependents, and copies of certificate of mailing.

Premium Payments
Employees and beneficiaries/dependents who elect COBRA coverage must make
monthly premium payments. Payments should be sent to CobraGuard. CobraGuard will
administer tracking of COBRA premiums, correspondence, and related issues.



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Chapter 4:
Benefits Eligibility and Enrollment for
Full-time Employees

Full-time Benefits Enrollment Eligibility
Full-time ResCare employees and their eligible dependents are eligible to enroll in a
variety of health and welfare benefits. (See ―Chapter 6: Part-time Benefits‖ for
information on health and welfare benefits for part-time employees.)
A full-time employee is one who is regularly scheduled to work 32 or more hours per
week. If an employee is not ―regularly scheduled‖ to work 32 or more hours per
week but consistently works 32 or more hours, the employee must be classified as
benefits eligible in accordance with our legal plan document. Employees regularly
scheduled to work less than 32 hours per week are eligible only for particular part-
time benefits (See Chapter 6).
Eligible dependents of full-time employees are:
           The legal spouse of the full-time employee
           The unmarried child(ren) to age 19 (unless otherwise specified by the plan)
            of a full-time employee, including biological, adopted, or any other children
            the employee supports in a parent/child relationship due to legal
            guardianship
           Stepchild(ren) to age 19 (unless otherwise specified by the plan) of a full-
            time employee who live with the full-time employee and rely on the full-
            time employee for primary financial support
           Child(ren) to age 23 (unless otherwise specified by the plan) enrolled full-
            time (12+ hours) in an accredited college and dependent on the full-time
            employee for primary financial support

Waiting Periods
For full-time employees who enroll in benefits as new hires, coverage in medical and
dental insurance plans and participation in flexible spending accounts (for healthcare
and dependent care reimbursement) begins on the first day of the month following
three months of full-time employment. (Example: If an employee begins working full-
time at ResCare on April 1, 2010, his/her benefits will begin on July 1, 2010.) Three

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full months of full-time service must elapse before benefits begin. (Example: If an
employee begins working on April 2, 2010, his/her benefits will begin on August 1,
2010) Other waiting periods apply.
The table below details waiting periods for full-time employees:


Plan Type                     Full Time – Salaried                  Full Time – Hourly
                              32 + Hours/Week                       32 + Hours/Week
                              Voca Union = 35 + Hours/Week          Voca Union = 35 + Hours/Week
Medical
                                      Deduction Begin Date                  Deduction Begin Date
                                1st of month following 3 months       1st of month following 3 months
Dental                                   from Hire Date                        from Hire Date

FSA Health Care & Dependent              Coverage Begin Date                   Coverage Begin Date
Care                            1st   of month following 3 months     1st   of month following 3 months
Cancer Plan                                from Hire Date                        from Hire Date

Vision Plan – VSP


MetLife
                                      Deduction Begin Date                  Deduction Begin Date
Supplemental Life
                                1st of month following 6 months       1st of month following 6 months
Spouse Life
                                         from Hire Date                        from Hire Date
Dependent Life
                                       Coverage Begin Date                   Coverage Begin Date
                                1st of month following 6 months       1st of month following 6 months
                                         from Hire Date                        from Hire Date


MetLife
                                      Deduction Begin Date                  Deduction Begin Date
Optional STD
                                1st of month following 6 months       1st of month following 6 months
                                         from Hire Date                        from Hire Date

                                       Coverage Begin Date                   Coverage Begin Date
                                1st of month following 6 months       1st of month following 6 months
                                         from Hire Date                        from Hire Date




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Chapter 5:
Overview of Full-time Benefits
Many employers provide some sort of benefits to their employees in addition to
compensation. These benefits can take many forms, including insurance (e.g.,
medical, dental, life, and disability), paid time off, flexible spending accounts, and
contribution to retirement plans. While some benefits are company-paid, some are
employee-paid or partially employee-paid. The remainder of this chapter provides
brief descriptions of some common benefits, all of which ResCare offers.

Major Medical Health Insurance
Major medical health insurance plans cover a broad range of health care services.
Participants in major medical plans usually pay co-payments, deductibles, and co-
insurance. Major medical plans usually offer some freedom of choice in doctors and
hospitals although participants may spend more to go ―out of network.‖

HMO Health Insurance
Health Maintenance Organizations (HMOs) also cover a broad range of health care
services. Unlike major medical health insurance plans, HMOs require participants to
elect a Primary Care Physician (PCP) and to obtain referrals to see a specialist.
Participants make co-payments but do not have deductibles. In general, participants
must use in-network doctors and hospitals in order to receive benefits. Participants
who visit out-of-network doctors and hospitals are usually fully responsible for the
costs. Kaiser is the only HMO plan and is offered to employees in California due to
state mandates.

Supplemental Health Insurance
Supplemental health insurance plans do not provide as much coverage as major
medical and HMO plans. Instead, supplemental health insurance plans pay a set
amount for certain healthcare services, leaving the participant responsible for paying
the difference (e.g., the insurance company pays $40 for each office visit and the
participant pays the difference between the $40 and the actual charge). Supplemental
health plans also impose yearly maximums for each covered person enrolled in the
plan. At ResCare, an employee cannot enroll in both a supplemental health insurance
plan and a major medical or HMO plan. This plan is not credible coverage.


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Dental Insurance
Dental insurance is designed to help participants receive routine preventive dental
care. In general, dental insurance pays a larger percentage of fees for preventive care
(e.g., regular cleanings, x-rays) and a smaller percentage for minor (e.g., fillings, simple
extractions) and major (e.g., crowns, prosthetics) dental procedures. Often, dental
insurance limits the kinds of services covered and places an annual cap (limit) on the
benefits paid. There is a 12 month waiting period for major and orthodontic services.


Voluntary Insurance Plans
Voluntary Insurance Plans are independent of the medical insurance plans ResCare
offers. Employees may enroll in any of these plans regardless of whether they are
enrolled in other benefit plans. Paycheck deductions for the American Heritage
Cancer Plan and the VSP Vision Plan are pre-tax. Paycheck deductions for
supplemental life insurance and short-term disability insurance are post-tax.


Long Term Care
Full-time employees are eligible to enroll in a long-term care plan during open
enrollment only. Benefits are provided through UNUM. More information about the
long-term care benefits can be found in the Open Enrollment Guide. Employees
should contact the Employee Benefits Line for assistance.

Flexible Spending Accounts
Healthcare Flexible Spending Accounts (FSAs) allow employees to set aside pre-tax
dollars to pay for otherwise uncovered medical expenses. Dependent Care FSAs
allow employees to set aside pre-tax dollars to pay daycare expenses for dependent
children or dependent adults. (Note: This is not healthcare for a dependent.)
Because money for FSAs is taken from employees’ checks before taxes are taken,
employees who participate are taxed on a lower amount and, therefore, increase their
spendable income.

     Healthcare Reimbursement Account
    Permits you to set aside up to $5,000 each year on a pre-tax basis.
    Reimburses for eligible healthcare expenses for the employee and dependents –
     any medical expenses not covered by a medical or dental plan and some over-the-
     counter drugs.

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     Dependent Care Reimbursement Account
    Permits you to set aside up to $5,000 each year on a pre-tax basis (maximum per
     family).

    Reimburses eligible daycare expenses (such as child or adult care center that
     complies with state and local regulations; babysitting inside or outside of your
     home) for a child under 13 (unless he/she is incapable of self-care) who is claimed
     as a dependent for income tax purposes, a spouse or legal dependent of any age
     who is physically or mentally incapable of self-care, or an elderly parent or elderly
     dependent who is physically or mentally incapable of self-care.

Restrictions on Healthcare and Dependent Care Reimbursement
Accounts
    Pre-tax elections remain in effect for the entire plan year.

    Healthcare and/or dependent care expenses cannot be claimed on income tax.

    Reimbursement requests must be made no later than March 31, 2011.

    The deadline for incurring claims is March 15, 2011.

    A dependent care reimbursement account may not be used when an employee is
     on leave of absence.

    The money in reimbursement accounts is “use it or lose it.” If an employee does
     not submit for reimbursement by the March 31 deadline, any money left in his/her
     account is automatically surrendered. (Surrendered funds are transferred to the
     company and are used exclusively to pay administrative costs of reimbursement
     accounts.)

    Upon termination of employment, your debit card will be cancelled. You can still
     file paper claims for up to 90 days for services incurred prior to your
     termination date.

Life Insurance
Life insurance replaces loss of income that occurs when the covered person dies. If
the covered person dies, the insurance company pays a specified amount of money to
the person’s beneficiary/beneficiaries. The type of life insurance ResCare offers is
group term life insurance. An employee who leaves the company can convert this
insurance to a personal policy.

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ResCare provides core life insurance for full-time employees. This core life insurance
benefit is paid for by ResCare. Employees may also purchase supplemental life
insurance in addition to the employer-paid core benefit. Participation in the core life
insurance benefit is not optional.

Core Life Insurance
    Provided for all full-time employees through MetLife
    All full-time employees receive a benefit amount of 1x the employee’s annual
     earnings up to a maximum of $350,000.
    All amounts are rounded to the next higher multiple of $1,000 if not already a
     multiple of $1,000.
    Overall maximum benefit for Core and Supplemental is $850,000.

Supplemental Life Insurance
    Supplements the core benefit paid for by the company.
    Newly hired employees can elect supplemental life insurance up to 3x their annual
     salaries without completing a MetLife Statement of Health Form. All employees
     who elect 4x or 5x their annual salaries must complete the statement of health.
    Employees can elect spouse life insurance for spouses up to age 70 ($5,000 of
     coverage). (Employees whose spouses also work for ResCare cannot elect spouse
     coverage.) Employees can also elect life insurance for dependents ($500 of
     coverage for each dependent 0-6 months and $5,000 of coverage for each
     dependent over 6 months of age) to age 19 or to age 23 for full-time students.

    An employee who did not previously elect supplemental, spouse, or dependent life
     insurance or who is electing 4x or 5x supplemental life insurance will be required
     to complete a MetLife Statement of Health Form and may be required to take a
     physical exam as evidence of insurability.

    To contact MetLife regarding a life insurance claim, please call 800-638-6420




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Short-term Disability Insurance

Short-term disability benefits provide compensation when you cannot work because
of a non-work-related injury or illness. All hourly and salaried full-time employees are
offered disability plans through MetLife after six months of continuous employment.
Employee may be required to use accrued PTO/ELR or vacation/sick time during
the elimination period. There is a 3/12 pre-existing clause for the short-term disability
plans (excludes the core plan). This means that the carrier will look back 3 months at
time of enrollment. No benefits will be paid for any condition that is pre-existing for
12 months. See Short-term Disability policy for more information.

Core STD Plan for Officers – VP level and above
All officers (VP level and above) are automatically eligible for a core STD benefit
amount of 60% of annual earnings up to a maximum of $500.00 per week. Officers
are not subject to the six month waiting period.
Core STD Plan for all other Resource Center, ETSG and Salaried CSG
Employees
All other Resource Center and ETSG employees, as well as salaried CSG employees,
are automatically eligible for core STD benefit amount of 60% of annual earnings up
to a maximum of $200 per week.
Supplemental STD Plan for Resource Center, ETSG, and Salaried CSG
Employees
In addition to the core benefit ResCare provides, you may elect to purchase
supplemental STD coverage from MetLife. Your benefit from the optional plan is
reduced by any amount you may receive from the core plan. The supplemental STD
plan pays 60% of your annual earnings up to a maximum of $1,615.00.
Optional STD Coverage for Hourly CSG Employees
Hourly CSG employees are eligible for the optional STD plan from MetLife. The
optional STD plan pays up to 50% of your regular pay, up to a maximum of $500 per
week. Benefits begin after you have been disabled for 14 calendar days, and may last
for up to six months.




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Other information regarding short-term disability

If you are able to earn some paid income while you are disabled, your STD benefit
will be reduced if your total income (including plan benefits) is greater than what you
were earning before you became disabled. There are exclusions and limitations to
benefits in certain situations. You can find these listed in the STD plan certificate.
STD coverage in states with mandated benefit programs
Four states, along with Puerto Rico – have state- or territory-mandated benefits that
supersede the benefits described above. Here is a brief outline:
California - Pays up to 55% of your regular pay, to a maximum of $917 per week.
Benefits begin after 7 days and may last up to 52 weeks. (Not administered by
MetLife.)
Hawaii - Pays up to 58% of your regular pay, to a maximum of $489 per week.
Benefits begin after 7 days and may last up to 26 weeks.
New Jersey - Pays up to 66.67% of your regular pay, to a maximum of $524 per
week. Benefits begin after 7 days and may last up to 26 weeks.
New York - Pays up to 50% of your regular pay, to a maximum of $200 per week.
Benefits begin after 7 days and may last up to 26 weeks.
Puerto Rico - Pays up to 65% of your regular pay, to a maximum of $113 per week.
Benefits begin after 7 days and may last up to 26 weeks.
Note: This information is subject to change. Check your local state laws.

Long-Term Disability (LTD) benefits for salaried employees
All Resource Center, ETSG, and salaried CSG employees are eligible for company-
paid long-term disability benefits after 6 months of continuous employment. LTD is
an extension of benefits to provide compensation to you after your STD benefits end.
Your Human Resources representative can give you a detailed summary of the LTD
program at your location.

    Pays 60% of an employee’s eligible annual pay up to $7,000 per month.
Long-term disability payments begin after an employee has been disabled for one
hundred eighty (180) consecutive days.

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To file an STD claim with MetLife, the employee should call 1-800-858-6506


                                      Core STD Plan
                  For Resource Center, ETSG and Salaried CSG Employees
                                            Benefits begin after 14 consecutive
Elimination Period
                                            calendar days of disability
Maximum Benefit Period                      24 weeks
                                            60% of annual pay, up to $200 per week;
Benefit Amount
                                            Officers – VP and above - $500 per week
                                            First of the month after six months of
Coverage Effective Date
                                            continuous employment

                                 Supplemental STD Plan
                  For Resource Center, ETSG and Salaried CSG Employees
Elimination Period                          Benefits begin after 14 consecutive
                                            calendar days of disability
Maximum Benefit Period                      24 weeks
Benefit Amount                              60% of annual pay, up to $1,615 per week
                                            (including the Core benefit)
Coverage Effective Date                     First of the month after six months of
                                            continuous employment

                                    Core STD Plan
                               For Hourly CSG Employees
Elimination Period                          Benefits begin after 14 consecutive
                                            calendar days of disability
Maximum Benefit Period                      24 weeks
Benefit Amount                              50% of annual pay, up to $500 per week
Coverage Effective Date                     First of the month after six months of
                                            continuous employment




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 Chapter 6:

Part-time/PRN/On-call Benefits
Overview
ResCare’s part-time/PRN/on-call employees and their eligible dependents are able to
participate in benefit plans offered through the CIGNA Network otherwise known as
Starbridge. Starbridge offers part-time/PRN/on-call employees the opportunity to
enroll in medical, dental, vision, and short-term disability insurance (STD for
employees only, not dependents). Part-time employees and their dependents are also
eligible to participate in the American Heritage Cancer and Specified Disease plan and
the VSP vision plan.


Part-time/PRN/On-call Benefits Enrollment &
Eligibility
A part-time/PRN/on-call employee is one who is scheduled to work 31 or fewer
hours per week; or is scheduled on an as-needed basis.
Eligible dependents of part-time employees are:
           The legal spouse of the part-time employee.
           The unmarried child(ren) to age 19 (unless otherwise specified by the plan)
            of a part-time employee, including biological, adopted, or any other children
            the employee supports in a parent/child relationship due to legal
            guardianship.
           Stepchild(ren) to age 19 (unless otherwise specified by the plan) of a part-
            time employee who live with the part-time employee and rely on the part-
            time employee for primary financial support.
           Child(ren) to age 23 (unless otherwise specified by the plan) enrolled full-
            time (12+ hours) in an accredited college and dependent on the part-time
            employee for primary financial support.

Waiting Periods
For part-time employees who enroll in benefits as new hires or who become newly
eligible for benefits, coverage begins on the first day of the month following three
months of employment (Example: If an employee begins working part-time at
ResCare on April 1, 2010, his/her benefits will begin on July 1, 2010.) Three full

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months of full-time service must elapse before benefits begin. (Example: If an
employee begins working on April 2, 2010, his/her benefits will begin on August 1,
2010) Some plans also establish minimum hourly requirements for part-time
employees.
The table below details waiting periods for part-time employees:


Plan Type                Hourly           PT Sal                          PT Hrly
                                          20-31 + Hours/Week              20-31 + Hours/Week
                         Requirement      Voca Union = 16-34 + Hrs/Week   Voca Union = 16-34 + Hrs/Week
Starbridge Medical
                              N/A              Deduction Begin Date           Deduction Begin Date
                                              1st of month following 3       1st of month following 3
Starbridge                                    months from Hire Date          months from Hire Date
                              N/A
Dental/Vision
Starbridge STD                                  Coverage Begin Date            Coverage Begin Date
                          25 hours/week
                                              1st of month following 3       1st of month following 3
                                              months from Hire Date          months from Hire Date
Cancer, VSP Plans             N/A




Enrollment Periods
Details for initial enrollment, open enrollment, and qualifying events for part-time
benefits are the same as for full-time benefits. See Chapter 4 for further details.

Benefit Plans
Medical Plans
Employees are eligible to enroll in one of three medical plans offered by the
Starbridge Network. Employees choose one of three levels of coverage and can
choose coverage for themselves only or include eligible dependents. All three plan
levels offer a life insurance benefit at no extra cost and have no minimum hourly
requirement. Deductions for the medical plans are pre-tax, and elections are binding
for the plan year. A reduction in hours is not a qualifying event to drop coverage.
Starbridge medical plans offer:

      Illness Coverage
      Injury/Accident Coverage
      Supplemental In-Hospital Cash Coverage – Injury or Illness Related (Same All
       Levels)
      Prescription Benefit – Level 3 only. Discount program for Level 1 and 2.

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      Family Term Life Coverage (Same All Levels)

Short-term Disability
Part-time employees may also elect short-term disability coverage through Starbridge.
The STD plan is offered to employees only, not to dependents, and requires an
employee to work 25 hours or more each week to be eligible. The STD option may be
purchased alone or with the medical and/or dental/vision coverage.
The Starbridge STD option is not available to employees in California, New York,
New Jersey, Hawaii, Rhode Island, or Puerto Rico due to state mandates. It will not
cover pre-existing conditions until the employee has been enrolled for 12 months.

Dental/Vision Plan
Starbridge also offers part-time employees the opportunity to participate in a
combined dental and vision plan. Employees may enroll in this plan whether they
participate in the medical and/or STD plans. The dental/vision plan has no minimum
hourly requirement.
Dental
     Participants may see any licensed dentist.
     Participants are responsible for an annual $25 deductible before the plan starts
      paying.
     The plan covers 45 different dental procedures. The rate at which the plan pays
      depends upon the procedure.

Vision
     Provides participants with discounts of up to 60% on eye exams, frames, lenses,
      and contacts.
     To receive benefits, participants must utilize one of the 6,500 Vision One
      locations nationally.




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Chapter 7:

401K Retirement Savings & Employee
Stock Purchase Plan
401K Retirement Savings
ResCare’s 401(k) retirement savings plan is designed to help employees save money
on a pre-tax basis for retirement. To be eligible to participate in the plan, an
employee must complete 1,000 hours of service and 12 months of employment.
PRNs hired after 12/31/2002 are excluded.
    Employees can set aside on a pre-tax basis between 1-25% of their gross income
     (with an annual cap of $16,500 in 2010).
    ResCare does not match employee contributions.
    Eligible employees can enter the 401(k) plan quarterly. The deadline for
     enrollment is 4:00pm EST on the last business day of the month prior to the end
     of the quarter to be effective the 1st of the following quarter.
    Contributions are immediately 100% vested.
    Bank of America is the trustee and The Hartford is the record keeper for the
     ResCare 401(k) plan. Employees can access their 401(k) information by calling the
     401(k) Plan Voice Response line at 1-800-854-0647 or by logging on to the web
     site at www.thehartford.com/retirementplans/access
    To access the 401(k) Plan Voice Response Line you must first enter your Social
     Security Number and PIN when prompted. Your default PIN is your 4-digit date
     of birth in MMDD format. To access the website for the first time your username
     is your 9-digit Social Security number and your password is your 4-digit date of
     birth in MMDD format.




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HR Rep Responsibilities
The HR Rep is responsible for providing basic 401K plan information and
documentation to the employees. Responsibilities include:

      Answering basic 401K plan questions
      Providing New Hires with printable ResCare Plan Highlights
      Providing Enrollment Packets to Newly Eligible employees
      Providing 401K forms to employees upon request
      Providing the 401K Voice Response Line and Web site information to
       employees for enrollment and to assist them with questions
      Contacting the ResCare Resource Center for assistance and to order additional
       Enrollment Packets


Rollover Contributions

Employees who will become eligible are allowed to roll funds into ResCare’s 401K
plan before meeting the plan’s eligibility requirements. Funds must be rolled over
from a conduit IRA or other qualified plan. The employee is responsible for
providing necessary information from his/her former employer and for obtaining an
IRS determination letter.

401K Loans
Active ResCare employees may request loans on their 401K accounts and can borrow
at a reasonable interest rate (Bank of America sets the interest rate at Prime + 1%).
To qualify for a loan, an employee must be actively working at the time of loan
inception. Loan rules and regulations:
    Employees may borrow up to 50% of the vested amount up to $50,000.
    Minimum of $1,000 loan is required.
    Repayment of loan is through payroll deductions over a period of no more than 5
     years.
    Employees may only have 1 loan outstanding at a time.
    Employees pay interest back to their accounts. The interest rate on 401K loans will
     be the Prime Rate plus 1%.
    A $100.00 origination fee is deducted from an employee’s 401(k) Balance.


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Hardship Withdrawals

ResCare employees with 401K retirement savings accounts may withdraw in case of
an approved hardship. IRS-approved reasons for hardship withdrawals are:

    Purchase of a primary place of residence.
    Pay for upcoming post-secondary education for the employee or a dependent.
    Medical or hospital expenses for employee or a dependent (no 10% penalty).
    Prevent eviction or foreclosure of principal residence.
    Burial or funeral expenses for your deceased parents, spouse, child, or qualifying
     dependent;
    Expenses to repair damage to your principal residence that would qualify as a
     casualty loss deduction.

Employees who apply for hardship withdrawals must provide documentation to
support their requests and must have a 401K loan in place or be ineligible for a loan.
Employees can only take one hardship withdrawal per year and their 401K
contribution will be suspended for six months. An employee is responsible for
restarting his/her 401K contribution.

Employee Stock Purchase Program
The ResCare Employee Stock Purchase Plan allows ResCare employees to purchase
shares of ResCare stock without paying broker fees. These shares are purchased once
a month and are kept in an account for the employee until they choose to withdraw
them. Employees can request to withdraw their shares once per calendar year during
open enrollment. The shares do not earn dividends and will sell at the market price
on the day the employee chooses to sell them.
Employees who work 6 months and at least 20 hours per week can enroll at the
beginning of the next calendar quarter (i.e., January 1, April 1, July 1, and October 1).
Once a quarter, a notification/congratulations letter for each newly eligible employee
and a general notice for employees are sent to the HR Rep at each operation. The HR
Rep should send newly eligible employees a copy of their notification/congratulations
letters and post the general notice for all employees. Stock purchase enrollment
packages should be distributed to those newly eligible employees who request them.
Employees may submit their enrollment forms to the HR Rep or directly to the
Benefits Team at the Resource Center.



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Employees can make changes to their stock purchases (e.g., change amount of
payroll deductions, terminate participation) quarterly by completing the
Employee Stock Purchase Plan Election/Modification and Beneficiary
Designation Form. Share withdrawals are also processed quarterly by
completing the Share Withdrawal Form. Active employees can take only one
share withdrawal in a 12-month period.




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Chapter 8:
Frequently Asked Questions
FAQ #1:
Why can’t an employee enroll in benefit plans or make changes to his/her
benefit plans anytime he/she wants?
          The Internal Revenue Service (IRS) allows employers to deduct from an
          employee’s paycheck on a pre-tax basis money used to pay premiums for health
          insurance, dental insurance, health care reimbursement, dependent care
          reimbursement, and other benefits. After money to pay for these premiums is
          taken out of an employee’s check, his/her taxable salary is reduced, and the
          employee ends up paying less in taxes than he/she would have if those
          premiums had not been taken out. (For example, an employee who grosses
          $800 on his paycheck but pays $75 in benefits premiums is taxed on only $725.)
          Because the IRS allows this pre-tax advantage, it imposes certain regulations on
          benefits enrollment and changes. One of these regulations limits enrollment in
          and changes to benefits plans to the annual open enrollment period.

          If an employer allows employees to enroll in benefit plans or make changes to
          benefits plans outside of the open enrollment period, the IRS could take away
          the employer’s right to offer employees the chance to pay premiums on a pre-
          tax basis. If an employer lost this right, the money to pay benefits premiums
          would come out of an employee’s check after taxes had already been taken out,
          and the employee’s take-home pay would be reduced. (The employee in the
          example above would first be taxed on $800, and then $75 would come out of
          the remaining amount.) Making an exception for just one employee could end
          up costing all ResCare employees this pre-tax advantage. It’s not worth the
          risk to ignore the IRS’s regulations.

FAQ #2:
Who should the employee contact regarding claims issues?
The employee should contact the Employee Benefits Help Line toll-free at 1-866-737-
4232.




Last Revised 4/15/2010                                                                 35
2010 BENEFITS MANUAL



FAQ #3:
How can an employee obtain a copy of his/her insurance card?

First, verify the employee’s address in the system and make any necessary corrections.
The employee should contact the carrier directly or may visit the Web site via the
Internet. Below are examples of various carrier phone numbers and Web site
addresses:
       Anthem - 1-866-333-1095; www.anthem.com
          Note: Anthem issues one (1) ID card per member up to two (2) cards
          (additional cards may be requested from Anthem)
       Delta Dental - 1-800-955-2030
          Note: Delta Dental issues one (1) ID card per family
       Nationwide - 1-800-635-6585
          Note: Nationwide Basic Plan issues two (2) cards: Nationwide card for medical
          services and HMG discount card for prescription, vision, and 24-hour
          nurseline.
          Nationwide Enhanced Plan issues two (2) cards: Nationwide card for medical
          services and HMG discount card for prescription, vision, and other services.


FAQ #4:
Why can’t an employee close his/her 401K savings plan and take out the
money if he/she no longer wishes to participate in the plan?

          Just like the premiums for health insurance, 401K contributions are taken from
          an employee’s paycheck on a pre-tax basis, and because the IRS allows this pre-
          tax advantage, it imposes regulations on 401K retirement savings plans as well.
          For example, the IRS sets an annual limit on the amount employees can
          contribute to their 401K savings accounts (to prevent highly compensated
          employees from abusing the pre-tax advantages). The IRS also specifies when
          money may and may not be taken out of a 401K account. According to the
          IRS, an employee may withdraw money from his/her 401K account only at the
          age of 59 ½ or in case of the employee’s death, termination of employment,
          retirement, disability, or approved hardship (see FAQ #3 on hardship
          withdrawals). These withdrawals before age 59 ½ are usually subject to taxes
          and penalties (20% withholding and 10% penalty tax).



Last Revised 4/15/2010                                                                   36
2010 BENEFITS MANUAL




FAQ #5:
How can an employee take a loan from his/her 401K?
     Active ResCare employees may request loans on their 401K accounts and can
     borrow at a reasonable interest rate (Bank of America sets the interest rate at
     Prime + 1%). To qualify for a loan, an employee must be actively working at the
     time of loan inception. Loan rules and regulations:
       You may borrow up to 50% of the vested amount up to $50,000.
       Minimum of $1,000 loan is required.
       Repayment of loan is through payroll deductions over a period of no more than
          5 years.
       You may only have one loan outstanding at a time.
       You pay interest back to your account.
       A $100.00 processing fee is deducted from your requested loan amount.

FAQ #6:
If an employee doesn’t qualify for a loan, can he/she take a hardship
withdrawal from his/her 401K?
     Yes, an employee who is not eligible for a loan may take a hardship for IRS-
     approved reasons. (The IRS permits employers to allow hardship withdrawals
     from 401K accounts, but the IRS does not require employers to provide hardship
     withdrawals.) At ResCare, employees with 401K retirement savings accounts may
     withdraw in case of an approved hardship. IRS-approved reasons for hardship
     withdrawals are:

       Purchase of a primary place of residence.
       Pay for upcoming post-secondary education for the employee or a dependent.
       Medical or hospital expenses for employee or a dependent (no 10% penalty).
       Prevent eviction or foreclosure of principal residence.
       Burial or funeral expenses for your deceased parents, spouse, child or qualifying
      dependent;
    Expenses to repair damage to your principal residence that would qualify as a
      casualty loss deduction.
Employees who apply for hardship withdrawals must provide documentation to
support their requests. Employees can only take one hardship withdrawal per year
and their 401K contribution will be suspended for six months.

Last Revised 4/15/2010                                                                 37
2010 BENEFITS MANUAL




FAQ #7:
If an employee terminates, what date does his/her health coverage end, and
when do premium deductions end?
Coverage ends on the last day of the pay period in which the employee terminates.
Deductions will continue through the last pay period end date in which the
termination occurred. If you are enrolled in a Flexible Spending Account, your
coverage ends on date of termination. You must file any claims that incurred prior to
your termination within 90 days.




Last Revised 4/15/2010                                                              38

								
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