2011 benefits wellsville bargaining unit employees

2011 BenefitsWellsville Bargaining Unit Employees

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• This document is intended to be a high-level overview. The terms and conditions of the benefits described are determined solely by the summary plan descriptions (SPDs) or plan documents and summaries of material modifications of the Dresser-Rand Company Welfare Plan, Pension Plan for Employees of Dresser-Rand Company, Dresser-Rand Company Retirement 401(k) Plan. In the event of any inconsistent provisions, the language of the plan documents applies.

• As in the past, the Company reserves to itself, pursuant to its sole and exclusive discretion, the right to change, amend or terminate this Plan according to the terms of the applicable plan documents and subject to any collective bargaining agreements.

• Benefits described herein may not automatically apply to employees at all locations or employees covered under a labor agreement.

• Plan is subject to nondiscrimination rules that may reduce or limit the tax advantages of the plan for certain employees.

Disclaimer

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Dresser-Rand Benefits Enrollment

• Enrollment will be on-line• Benefits website:

www.dresser-rand.com/benefits• Can review benefits information on website• Can access online enrollment system by

selecting:

2011 Benefits Enrollment

http://www.dresser-rand.com/benefits

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Dresser-Rand Benefit Programs

• Health• Medical/Prescription • Wellness• Dental• Vision • Health Savings Account (HSA) • Flexible Spending Accounts (FSAs)• Employee Assistance Program (EAP)

• Income Protection• Basic Life and AD&D• Optional Life • Voluntary AD&D• Business Travel Benefits• Voluntary Group Legal• Disability

• Pension Plan• 401K

Overview

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EligibilityHealth & Income Protection

• Full-time employees working over 35 hours per week AND Part-time employees working over 20 hours per week are eligible for all benefits

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Who can you cover?• Your legal spouse

• Your unmarried children (biological, adopted or step-children) until the end of the month they attain age 26

• Other unmarried children who live with you in a parent-child relationship and for whom you have legal guardianship. (Same age guidelines apply as above)

• Your unmarried children age 26 or older who are certified by BlueCross to be disabled due to mental or physical disability and who are dependent on you for financial support (the disability must be certified prior to age 26)

NOTE: If both you and your spouse work for Dresser-Rand, the plan does not allow “double coverage”. Only one of you may choose coverage for your eligible children. And if you choose an enrollment category that covers your spouse, your spouse will not be eligible to also choose duplicative coverage under any Company-sponsored Plan or program.

Eligible Dependents

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Medical Options

• MedicalPlus - A Consumer Directed Health Plan with a Preferred Provider network

• PPO – Preferred Provider Option

Medical Benefit Choices

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MedicalPlus

MedicalPlus utilizes a PPO network of providers • Choice of physicians and hospitals• BlueCross BlueShield offers the largest PPO network

in the United States• Higher level of benefits using BCBS network

providers• No claim forms to file when using network providers• Lower claim costs through negotiated network• Prescription Coverage through Caremark• Health Savings Account contribution

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MedicalPlus

In-Network Benefits• $2,500 Individual or $5,000 Family Deductible

(combined medical and prescription claims)– 10% Coinsurance (Plan pays 90%)

– After the purchase of two 30-day refills for any maintenance medication at retail pharmacies, all future refills for those prescriptions must be filled through the Caremark mail order service

• Annual Out-of-Pocket Maximum(including deductible)

– $3,000 individual or $6,000 family

• Wellness Benefits and Well Baby Benefits based on Preventive Services Task Force Guidelines (100% coverage, deductible does not apply, no maximum)

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MedicalPlus

Out-of-Network Benefits

• $3,000 Individual or $6,000 Family Deductible(combined medical and prescription claims)– 30% Coinsurance Medical (Plan pays 70%)– 35% Coinsurance Rx (Plan pays 65%)

• Annual Out-of-Pocket Maximum (including deductible)


• No Wellness Benefits

• “Reasonable & Customary” applies

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In-Network• $2,500 Individual or $5,000 Family Deductible

(combined medical and prescription claims)– 10% Coinsurance (Plan pays 90%)

– After the purchase of two 30-day refills for any maintenance medication at retail pharmacies, all future refills for those prescriptions must be filled through the Caremark mail order service

• Annual Out-of-Pocket Maximum(including deductible)


MedicalPlus – PrescriptionsCaremark

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• You pay the full, undiscounted cost at the pharmacy and must submit a paper claim form

• You are eligible for up to 65% reimbursement

• No prescription drug out-of-pocket maximum

MedicalPlus – PrescriptionsCaremark

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Health Savings Account (HSA)

• Tax-free spending account for qualified medical/ prescription drug, dental, vision, health club membership (with a doctor’s certification), and exercise equipment (with a doctor’s certification)

• Access funds using a debit card or checkbook• Gives you more control of money spent on health care• Dresser-Rand will contribute to every participant’s HSA

(FSA if Medicare eligible)• Employees can make additional tax-advantaged HSA

contributions through payroll deduction(Up to IRS Limits)• Over-the-counter medication is not reimbursable unless

there is a doctor’s prescription for it• Contributions are not “use-it or lose-it”!

MedicalPlus Health Savings Account

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2011 Dresser-Rand Annual Contribution*

Employee Only $1,000

Employee + 1 $1,500

Family $2,000

*Company contributions deposited up front; prorated based on portion of calendar year remaining.

MedicalPlusHealth Savings Account

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2011 Optional Employee Contributions

Employee Only Up to an additional $2,050($3,050 if 55 Years Old by 12-31-2011)

Employee + 1 Up to an additional $4,650($5,650 if 55 Years Old by 12-31-2011)

Family Up to an additional $4,150 ($5,150 if 55 Years Old by 12-31-2011)

MedicalPlusHealth Savings Account

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Further HSA information:

• Account must be activated – watch your mail for information from ACS/Mellon

• Interest Rate of 0.1% (as of 7-1-2009)• Monthly fee of $2.25 for accounts with balances

under $3,000 (fee taken from account)• Electronic statements are encouraged - $0.75

monthly fee for paper statements• Once you have accumulated a balance of $1,500 or

more, you can transfer excess balance into one of the Dreyfus mutual fund investment options

• You can visit www.HSAmember.com for more information

MedicalPlus Health Savings Account

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PPO utilizes same network as MedicalPlus

• Choice of physicians and hospitals• BlueCross BlueShield offers the largest PPO network

in the United States• Higher level of benefits using BCBS network

providers• No claim forms to file when using network providers• Lower claim costs through negotiated network• Prescription Coverage through Caremark• No HSA Contribution

PPOBlueCross BlueShield of Illinois

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In-Network Benefits

• $300 Individual or $700 Family Deductible• 20% Coinsurance (Plan pays 80%)• Annual Out-of-Pocket Maximum (including

deductible)– $2,000 individual or $4,000 family

• Wellness Benefits and Well Baby Benefits based on Preventive Services Task Force Guidelines (100% coverage, deductible does not apply, no maximum)


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• $600 Individual or $1,400 Family Deductible• 40% Coinsurance (Plan pays 60%)• Annual Out-of-Pocket Maximum

– $4,000 individual or $8,000 family (excluding out of network drugs)

• No Wellness Benefits• “Reasonable & Customary” applies


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In-Network Benefits

• No Deductible• Retail Benefit (up to a 30-day supply)

– $10 co-payment for Generic Prescriptions– 35% Coinsurance for Brand Prescriptions (Plan pays 65%)– Per prescription maximum cost of $150– After the purchase of two 30-day refills for any

maintenance medication at retail pharmacies, all future refills for those prescriptions must be filled through the Caremark mail order service

• Mail Order Benefit (up to a 90-day supply)– $20 co-payment for Generic Prescriptions– 25% Coinsurance for Brand Prescriptions (Plan pays 75%)– Per prescription maximum cost of $300

• Annual Out-of-Pocket Limit $1,250 individual or $2,500 family

PPO – PrescriptionsCaremark

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• You pay the full, undiscounted cost at the pharmacy and must submit a paper claim form

• You are eligible for up to 65% reimbursement

• No prescription drug out-of-pocket maximum

PPO – PrescriptionsCaremark

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MedicalEmployee Contributions

2011 Monthly Employee Contributions

MedicalPlus• Employee Only $ 19.40• Employee + 1 $ 33.00• Family $ 46.40

PPO• Employee Only $ 44.20• Employee + 1 $ 82.40 • Family $ 120.60

NEW EMPLOYEES: Complete the online Health Risk Assessment and your 2011 medical coverage contribution will be reduced by $6.00per month beginning the first of the month after your questionnaire is processed.

PART-TIME EMPLOYEES: If you are a part-time employee scheduled to work at least 20 hours but less than 35 hours per week you are eligible for medical coverage at 150% of the monthly contribution rates stated here for full-time employees.

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Both medical options pay certain pediatric & adult preventive care benefits

• Preventive care services based on Preventive Services Task Force guidelines

• Wellness screenings, routine exams, immunizations, etc. are Covered 100%, no annual limit, not subject to deductible

Preventive Care

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Condition ManagementNurse health coach is assigned to help you:

– Follow your doctor’s plan of care;– Understand how your medications work;– Determine necessary screenings and

tests; and– Answer questions about the illness or

condition.

Wellness ProgramBlue Care Connection

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The Condition Management program is available if you have been diagnosed with one or more of the following:

– Asthma;– Congestive heart failure;– Coronary artery disease;– Chronic obstructive pulmonary disease (COPD);– Diabetes;– Hypertension;– Hyperlipidemia; or– Low back pain.

Completely voluntary and confidential

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Personal Health ManagerPersonalized Coaching Program in any or all of the following areas:

– Eating habits;– Physical activity;– Stress management;– Tobacco cessation; or– Weight management.

When you enroll you will be paired with a health professional who will develop a personalized coaching program with you through confidential, over-the-phone sessions



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Health Risk Assessment• Online questionnaire that evaluates your health and gives you a detailed, confidential report with action steps to help you improve your health.

• Receive a $6.00 discount on monthly medical contributions if you complete the Health Check and submit a Physician Form to Nationwide Better Health. Your discounted rate will begin the first of the month after your questionnaire is processed.

• You will need to enter your personal biometric data– Blood pressure– Cholesterol and blood glucose levels– Body mass index



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Nurse Line

Provides immediate telephone access to registered nurses for health care information, advice and medical guidance for you and your family.

Available 24/7• Answer your questions about symptoms and health-related topics• Help you decide how and where to get the care you need• Help you determine what questions to ask your doctor before an appointment.

Not a substitute for your regular physician, health care specialist or routine preventive exams. In the event of a medical emergency, seek immediate medical attention from the nearest emergency facility or call 911.



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Healthy ExpectationsOffers support for expectant mothers

Helps you understand the active role you can take to give your baby the greatest chance of being born strong and healthy by providing:– Educational material specific to your needs– Access to a 24/7, toll-free BabyLine staffed by maternity nurses– E-mail newsletters– An online health information library

The first step is to call the number on the back of your BCBS ID card


Wellness ProgramBCBS Illinois

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Deductible• Preventive Services None• Basic, Major & Orthodontic $25 individual/$75 family

Coinsurance• Preventive Services 100%• Basic Services 80%• Major Services 50%• Orthodontic Services 50%

Maximum Coverage• Dentistry $1,200 per person annual• Orthodontics* $1,200 lifetime maximum

Preventive Services DO NOT count toward annual maximum

* Note: Orthodontic coverage provided for eligible dependent children up to age 19

DentalBlueCross BlueShield Illinois

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Preventive Services• Oral examinations• Routine scaling and polishing• Routine bitewing x-rays• Fluoride treatments (children through age 18)• Sealants (children through age 15)

Basic Services• Fillings and Extractions• Stainless steel crowns• Relining of dentures• Repair of crowns, bridges, and removable dentures

Major and Restorative Services• Inlays, onlays, and crowns (other than temporary crowns or stainless

steel)• Full mouth rehabilitation

Preventive Services DO NOT count toward annual maximum

DentalBlueCross BlueShield Illinois

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DentalEmployee Contributions


• Employee Only $25.00• Employee + 1 $51.00• Family $76.00

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VisionVSP

Voluntary Vision Program

• Benefits provided by Vision Service Plan (VSP) – Largest vision care provider in the US with over 50 years experience

• Plan provides vision benefits each year– 2 pairs of frames and lenses; or– 1 pair of frames and lenses plus contact lenses

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VisionVSP


In-Network Benefits

• $10 co-payment for vision exams• $150 allowance for eyeglass frames• $10 co-payment for eyeglass lenses• Progressive & photochromic lenses & tints covered in full• $150 allowance for daily wear contact lenses

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VisionVSP



• Up to $45 for vision exams• Up to $47 for eyeglass frames• Up to $45 for single vision eyeglass lenses• Up to $65 for bifocal eyeglass lenses• Up to $85 for trifocal eyeglass lenses• Up to $125 for lenticular eyeglass lenses• Up to $105 for daily wear contact lenses

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VisionEmployee Contributions


• Employee Only $13.55• Employee + 1 $27.13• Family $43.66

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Maintenance of Benefits

• If you or your dependents are covered under more than one medical or dental plan– Plans work together to coordinate benefits

• BCBS will maintain the level of benefit based on the plan you choose– The allowable expense is limited to the amount the

BCBS plan would have paid if there were no other medical or dental benefit coverage in effect

• This is called Maintenance of Benefits

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• Full Use Healthcare Flexible Spending Account(for PPO Enrollees)

• Limited Use Healthcare Flexible Spending Account (for MedicalPlus Enrollees)

• Dependent Care Flexible Spending Account – daycare expenses only

Flexible Spending Accounts (FSA)

Important Reminder: These are “USE IT or LOSE IT” plans

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• Use tax-free contributions to pay for medically necessary, non-covered medical, prescription drug, dental and vision care expenses:– All healthcare deductibles and coinsurance amounts– Eyeglasses, contact lenses– Health club membership (with a doctor’s note)– Exercise equipment (with a doctor’s note)

• You may contribute from $100 to $5,000 per year • Debit card to access account• Paper claims will be required for claims not submitted

using debit card or the online claims submission process• Cannot be used with an HSA

Full Use Healthcare FSA(PPO Participants)

Important Reminders: This is a “USE IT or LOSE IT” planOver-the-counter medicine must have a doctor’s prescription in order to qualify for reimbursement.

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• Limited Use FSA coordinated with HSA• Use tax-free contributions to pay for non-

covered health (dental and vision) expenses:– Dental and vision deductibles, coinsurance

amounts and other expenses– NO medical/prescription drug expenses covered

by the Plan are allowed (must use your HSA)• You may contribute from $100 to $5,000 per

year• Debit card to access account• Paper claims will be required for claims not

submitted using debit card or the online claims submission process

Limited Use Healthcare FSAFor HSA Participants

Important Reminder: This is a “USE IT or LOSE IT” plan

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• Use tax-free contributions to pay for day care expenses for:– Children (up to age 13)– Elderly parents

• Not for your dependent’s non-covered healthcare!

• If married, both you and your spouse must work outside the home

• You may contribute from $100 to $5,000 per year*

• You can elect direct deposit for your reimbursements

* Employees classified as Highly Compensated will be limited to $4,000 per year.

Dependent Care FSA

Important Reminder: This is a “USE IT or LOSE IT” plan

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• Company-provided benefit• Free confidential counseling for employees & dependents

Depression and anxiety* Stress* Relationships* Work/life balance*Addictions and abuse* Financial servicesLegal consultation Grief and loss*

* Up to 8 company-paid sessions, per issue, per year, per family member

Employee Assistance Program

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• Dresser-Rand provides employees with:– $50,000 of Basic Life Insurance– $50,000 of Basic AD&D

• Employees can purchase additional:– Optional Life Insurance for self &

dependents– Voluntary AD&D Insurance for self &

dependents

Life Benefits

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• Employee Optional Life

– $25,000 increments, up to $500,000– Evidence of Insurability (EOI) required

for amounts elected over $250,000– EOI required for increases after initial

election

Optional Life InsuranceEmployee

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• Spouse Life– $25,000 increments, up to $250,000 or 50% of

employee amount, (combined basic and optional) whichever is less

– Employee must elect Optional Life in order to elect Spouse Life

– Evidence of Insurability (EOI) required for amounts elected over $25,000

• Child(ren) Life– If elected, each child will have $10,000 of Life

Insurance– Employee must elect Optional Life in order to

elect Child Life

Optional Life InsuranceDependents

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Optional Life InsuranceRates

• Employee and Spouse Rates are Based on– Age– Tobacco or Non-Tobacco use status

• Tobacco products include cigarettes, pipes, cigars, snuff and chewing tobacco

– Rate sheet will be included in enrollment packets and are available on the Dresser-Rand benefits website: (www.dresser-rand.com/benefits)


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Employee & Spouse Optional LifeMonthly rate per $1,000 of coverage

Age Non-Tobacco User Tobacco User

<25 $0.051 $0.087

25-29 $0.069 $0.110

30-34 $0.086 $0.143

35-39 $0.094 $0.154

40-44 $0.111 $0.176

45-49 $0.162 $0.264

50-54 $0.249 $0.408

55-59 $0.471 $0.760

60-64 $0.720 $1.157

65-69 $1.389 $2.226

70-74 $2.255 $3.610

75+ $3.661 $5.873

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Can elect Employee or Family coverage• Employee

– $25,000 increments, up to $500,000

• Family (Benefit based on Family members)– Spouse only

• 60% of employee coverage

– Child(ren) only• Each child, 15% of employee coverage

– Spouse and Child(ren)• Spouse, 50% of employee coverage• Each child, 10% of employee coverage

Voluntary AD&D InsuranceEmployee or Family

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2011 Monthly Employee Contribution Rates– Employee only $0.025 per $1,000– Family $0.040 per $1,000

Voluntary AD&D InsuranceEmployee or Family

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• Dresser-Rand provides you with:– 4 x current base salary– Minimum benefit is $100,000– Maximum benefit is $1,000,000– Covers you for death/dismemberment

while traveling on Company business

Note: If a common accident results in the death or dismemberment of more than one covered person, the maximum benefit paid to all covered people is $5,000,000

Business Travel Accident Insurance

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• Cigna Medical Benefits Abroad (MBA)– Provides access to medical care when

traveling outside the U. S. on business

• International Assistance– Provides assistance with medical,

personal, travel, security issues and legal problems on international business trips or assignments outside the U.S.

International Travel Benefits

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• Voluntary• Access to a network of over 10,000

attorneys• Services include:

– Document Preparation– Family Law– Real Estate Matters– Wills and Estate Planning– Traffic Matters

• Employee cost = $15.75 per month• Access @ www.legalplans.com

Legal Benefits

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• Short-Term Disability (pay continuation)

• Long-Term Disability

Disability Benefits

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• Dresser-Rand provides you with replacement income if you are determined to be disabled for a non work-related injury or illness.– 12 weeks at 100% of base pay (40 hrs /

wk)– 14 weeks at 60% of base pay (40 hrs /

wk)

Short-Term Disability(Pay Continuation)

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• If you remain totally disabled after the STD period expires (26 weeks), you may be eligible for coverage in the LTD program

• Employees eligible to continue fringe benefits for 36 months at current active rate

• LTD Benefit includes:– A monthly basic benefit equal to 40% of

your Dresser-Rand base earnings

Long-Term Disability

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• You can purchase Voluntary LTD coverage for a total monthly benefit of:

– 50% (10% optional buy-up), or– 60% (20% optional buy-up) of your base

earnings

Long-Term DisabilityBuy-up Options

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Monthly Employee Contributions

• 50% (10% Buy-up) option $.135 per $100 of benefit

• 60% (20% Buy-up) option $.325 per $100 of benefit

Long-Term DisabilityBuy-up Options

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Enrollment

• Enroll at www.dresser-rand.com/benefits from any computer with Internet access


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Vacation & Holidays

• Vacations to each employee who has accumulated seniority

• Vacation calculation based on employee’s base rate of pay

• Dresser-Rand provides 10 holidays each year

Years of Service Vacation Level

6 months but less than 8 years 80 hours = 2 weeks

8 years but less than 15 years 120 hours – 3 weeks

15 years but less than 25 years 160 hours – 4 weeks

25 years of more of continuous service 200 hours – 5 weeks

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Pension Plan

I.A.M. National Pension Fund• Dresser-Rand will contribute to the I.A.M.

National Pension Fund as outlined in the collective bargaining agreement

• Contribution is $1.15 per hour worked, limited to forty (40) hours per week*

• Contributions begin after 60 calendar days*contribution will increase to $1.25 per hour worked

effective 8/15/2011 and for the duration of the contract.

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Pension Plan

Sources of Information• If you have any questions regarding

your plan benefits please contact the following Retirement Team Members:

• Darlene Pfeiffer – Pension Analyst (716) 375-3704• Michele Benjamin – Pension Analyst (716) 375-4317• Email – [email protected]

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Retirement Savings Plan

Eligibility • As a bargaining unit employee of Dresser-Rand, you are

eligible to participate in the Dresser-Rand Company Retirement 401(k) Plan, as soon as administratively practicable following your hire or rehire date

Benefits Available Under the Plan• The Plan allows you to tax deferred a portion of your eligible

compensation • A Catch-Up feature, for those age 50 or greater by year end,

allows you to save additional amounts• Loans and In-Service Withdrawals are available on a limited

basis

Plan Recordkeeper - Fidelity • For general assistance or enrollment contact Fidelity

Retirement Service Center (1-800-835-5097) or visit www.401k.com

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Your Savings

Elective Deferrals and IRS Annual Limits

You may elect to defer between 1% and 75% of eligible pay into the Plan.

However, you may not exceed the applicable annual IRS limits below:

• The 2011 Elective Deferral limit is $16,500

• The 2011 Catch-Up Deferral limit is $5,500(Catch-Up Deferrals are only available to Participants age 50 or older)

Vesting Schedule for Elective Deferrals

You are always 100% vested in your contributions and their earnings.

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Fidelity can assist you if you want to:• Enroll in the Plan• Change Your Investment Election• Change Your Paycheck Deferral Election• Request a Loan• Request an In-Service Withdrawal, and Loan Address

Changes• Roll Over Another Plan’s Balance into this Plan

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Enrollment is easy…• Within 10 days of your hire date with Dresser-

Rand you will receive a packet mailed to your home from Fidelity with instructions to enroll in the Plan.

• After you receive the enrollment packet, you can enroll via the internet or by telephone.

• If you have not received your enrollment packet 10 days after your start date, please contact Steve Rehler at (716) 375-3559.

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For more information:

Fidelity Retirement Service Center

1-800-835-5097

Fidelity Web Access www.401k.com

Retirement Benefits Department

Plan Administrator:Phone: E-mail:

Steve [email protected]

mailto:[email protected]

mailto:[email protected]

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Questions

If you have any questions, contact your local Human Resources Representative.

2011 benefits wellsville bargaining unit employees

Documents

benefits enrollment

companysponsored plan

employees of dresser

applicable plan documents

benefits information

consumer directed health

overview slide

eligible children