BWXT 2020 Benefits Fall 2019 BWXT Benefits Main

BWXT 2020 Benefits Fall 2019

BWXT Benefits Main objectives for providing benefits: o Provide a comprehensive and competitive benefit offering while maintaining a positive value proposition for employees o Comply with regulatory requirements o Limit complexity o Control costs for employees and BWXT o Must have executive approval § The BWXT health plans are “self-funded” – this means that the over $50 million budgeted spend for medical and dental expenses each year are paid by BWXT » For example, Anthem, the medical administrator, pays for a hospital stay of a BWXT employee or their covered family member based on the BWXT medical plan. After the claim is paid, Anthem invoices BWXT for the amount that was paid to the hospital.

2020 Benefits – Medical Coverage Overview The Consumer Choice Plan If you enroll in the comprehensive, high deductible Consumer Choice Plan: o Employee (payroll) contributions will be lower than the PPO Plan o Eligible medical and pharmacy expenses will accumulate towards the deductible and out -of-pocket maximums o You will receive a company contribution to your Health Savings Account (HSA) § $500 for “Single” and $1, 000 for “Family” deposited in January of 2020 o You may contribute your own, pre-tax monies through payroll deductions to your HSA o Healthcare Flexible Spending Account (FSA) can only be used to help pay for eligible dental and vision expenses – unless the HSA is not opened o Your HSA monies are never forfeited – they are yours to spend, even if you change plans or after you retire / terminate employment o If you have Medicare, Veterans Affairs (VA), Tri. Care or other coverage that deems you ineligible for an HSA, you may still enroll in the Consumer Choice Plan but the IRS will not allow for company contributions or your own deferrals into an HSA account § ‘Disability’ rating from the VA and not enrolled in Tri. Care = HSA-eligible

2020 Benefits – Medical Coverage Overview The PPO Plan If you enroll in the comprehensive PPO Plan: o The employee (payroll) contributions are higher than the Consumer Choice Plan because the plan pays more for up-front expenses § The PPO Plan has copayments which do not exist in the Consumer Choice Plan and lower deductibles than the Consumer Choice Plan o Out-of-pocket expenses for each visit are more predictable because of copayments o Medical and Prescription drug copays apply only to the out-of-pocket maximum o The Healthcare Flexible Spending Account (FSA) can be used to get reimbursement for medical, dental and vision out-of-pocket expenses o The IRS requires that if you elect the Consumer Choice Plan (HSA) while you have a remaining balance in your HRA, the HRA funds are forfeited

2020 Benefits – What’s New? Medical Plan o Expanding the definition of covered Orthotics o Adding Consumer. Medical, which provides two (2) services to our covered members: § A $400 incentive to receive a clinical review of your medical records (aka, second opinion) prior to having these specific surgeries: back surgery, knee or hip replacement, a hysterectomy or bariatric surgery § High-touch clinical support by a team of healthcare professionals who address all conditions and challenges. This robust solution offers: » One-on-one support from a physician-led team of RNs and medical professionals — available at any point during your or your covered family member’s medical journey » Unbiased answers to medical questions, evidence-based treatment information curated for each covered member, tailored questions to ask doctors, and multiple support touchpoints » Matching of covered members to the highest-quality in-network providers o Expanded Express Scripts Utilization Management § Covered members may be asked to complete a pre-authorization, go through a ‘step therapy’ process, or be limited to a certain number of pills for prescriptions previously received § Express Scripts will send a letter to impacted members prior to January

2020 Benefits – What’s New? Medical Plan Employee (Payroll) Deductions o The medical plan deductions will increase by approximately 4% for 2020: Tier o PPO Consumer Choice Monthly Weekly Bi-Weekly Semi-Monthly Increase Employee only $5. 00 $2. 00 $1. 15 $0. 46 $2. 31 $0. 92 $2. 50 $1. 00 Employee + spouse $10. 00 $4. 00 $2. 31 $0. 92 $4. 62 $1. 85 $5. 00 $2. 00 Employee + child(ren) $8. 00 $3. 00 $1. 85 $0. 69 $3. 69 $1. 38 $4. 00 $1. 50 Employee + family $13. 00 $4. 00 $3. 00 $0. 92 $6. 00 $1. 85 $6. 50 $2. 00 Part-time employees re-defined as “regularly scheduled to work at least 20 hours per week” for specific classifications § § Part-time participants will pay the same rates as full-time employees Definition applies to all plans except the Thrift Plan (no change to eligibility for Thrift Plan)

2020 Benefits – What’s New? Other Plans o Dental § Adding adult Orthodontia to “Plus Plans” § No rate changes o Adding Parental Leave benefit § § § o 2 weeks of base pay paid at 100% for either parent Administered in conjunction with Family Medical Leave (FML) Parental leave can be used in 1 week increments based on regular work schedule, but must be used within three (3) months of the birth, adoption or foster placement date The benefit is not retroactive (only applies to new family additions on/after 1/1/20) All leaves should be coordinated with your Supervisor and local human resources department Parental Leave must be initiated by the employee through Cigna (1 -888 -842 -4462) Short-Term Disability (STD) § In addition to Parental Leave described above, expanding STD maternity benefits: » » o 6 weeks of base pay paid at 100% for employee who gives birth to a new child Any additional weeks of approved disability paid at 67% of base pay per existing STD policy No plan design or rate changes for Vision, Long-Term Disability (LTD), Supplemental Life and Personal Accident Insurance (PAI)

2020 Benefits – What’s New? New Voluntary Product: identity theft detection, prevention and resolution offered by Info Armor o Identity and credit monitoring o High-risk transaction alerts o Dark web monitoring o 24/7 Privacy Advocate remediation o Social media monitoring o Financial threshold monitoring o Digital exposure reports o $1 million identity theft insurance policy * o $9. 95 per employee / month or $17. 95 per family / month § “Family” refers to anyone “under your roof or under your wallet” » § As long as the dependent lives within an employee’s household, or is supported by the employee financially, they are eligible to be enrolled Enroll during annual enrollment or at any time during the year (no life event required) * Identity theft insurance underwritten by insurance company subsidiaries or affiliates of AIG. The description herein is a summary and intended for informational purposes only and does not include all terms, conditions and exclusions of the policies describe. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.

2020 Benefits – Refresher Live. Health Online o o o A private, secure video visit with a board-certified doctor on your smartphone, tablet or computer (webcam required) Available 24/7 for issues such as: pink eye, colds, flu, fevers, allergies, sinus infection and other common medical conditions An affordable and convenient alternative to urgent care or emergency room visits For the PPO plan, the cost of service is a $10 copay per visit For the Consumer Choice plan, the cost of service is $49 § § $49 is applied to annual deductible; or Employee pays $9. 80 (20% of $49) if the deductible has already been met o To avoid delays when you need to use the service, create your account now by signing up on livehealthonline. com or download the free app to your mobile device For questions: Call toll free at 888 -Live. Health (548 -3432) or email help@livehealthonline. com

2020 Benefits – Refresher Health Care Flexible Spending Account (FSA) o The Health Care FSA allows employees to carry over up to $500 of unused monies into the following year § This option allows greater flexibility and reduces the amount lost as a result of the IRS ‘use-it-or-lose-it’ rule 2020: 2020 Annual contribution amount: Amount used: $1, 000 - $700 Carry over balance to 2020: “Lost” contribution: $300 $0 2021: Carry over balance from 2020: $300 + 2020 Annual contribution amount: $700 Total Available 2020 Healthcare FSA: $1, 000 Amount used: - $200 Ending balance, Dec 31, 2020: $800 2022: Carry over balance from 2021: “Lost” contribution: $500 $300

2020 Benefits – Administration Annual Enrollment period will be Oct 14 th through Oct 25 th o BWXT Enrollment Center, provided by b. Swift, is the provider of our on-line and phone enrollment process § § Electronic distribution of ERISA disclosures notice Ask Emma – optional Enrollment Decision Support Tool If you do not enroll during Annual Enrollment, your 2019 elections will rollover to 2020 except for the following, which must be selected for 2020: o Health Care Flexible Spending Account (FSA) elections {limited to $2, 700} o Dependent Day Care FSA elections {limited to $5, 000} o Health Savings Account (HSA) § If you are electing to defer your own, pre-tax monies, you must go through annual enrollment » § § Including BWXT Contributions … EE Only limited to $3, 050; All Others limited to $6, 100 • Employees at or above age 55 in 2020 can contribute an additional $1, 000 to either limit If you elect the Consumer Choice Plan, your HSA account is re-activated or activated (if new enrollee) as a part of the enrollment process If you do not go through annual enrollment you must activate/re-activate your 2020 account by calling b. Swift at 1 -844 -708 -1088 any time after annual enrollment o Group Legal

2020 Benefits – Summary Annual Enrollment Overview Week of Oct. 7 Oct. 14 thru Oct. 25 Early Dec. Jan. 1 Materials Received at Employee Homes Annual Enrollment Period Statements Mailed New Plan Year Begins • Passive Enrollment OK • Corrections Allowed Service / Questions Anthem BCBS – call 844 -344 -7419 or visit www. anthem. com Express Scripts – call 844 -567 -8518 or visit www. express-scripts. com Health Advocate – call 866 -695 -8622 or visit www. healthadvocate. com/members Live. Health Online – call 888 -548 -3432 or email help@livehealthonline. com or visit www. livehealthonline. com o BWXT Enrollment Center – call 844 -708 -1088 or visit www. bwxt. com/enrollment o o