BorgWarner 2017 Benefits Enrollment Presenter's Name Presentation/Event Name 4/16/2018 BorgWarner 2017 Benefits Enrollment November 2016

BorgWarner Benefits Overview Keep in mind, you can view this video at any time by going to the BorgWarner.com/benefits website.

It’s Here! 2017 Open Enrollment Welcome to our 2017 Benefits Open Enrollment session! During this meeting, we’ll review our benefits, go over everything you’ll need to know for a successful enrollment, including: Summary of what’s changing for 2017 and a look at 2017 rates Recap on how to enroll in or make changes to your benefits or dependents And what you need to do to make sure you get the right coverage for you and your family. Let’s start with the basics: This year Open Enrollment will run from November 16th to December 5th. This means you have 3 weeks to elect your 2017 benefits and make any changes to your dependents. Any elections you make during Open Enrollment will go into effect January 1, 2017 and remain in effect for all of 2017. unless you have a qualifying life event, like if you get married or divorced, give birth or adopt a child. Nov. 14 – Dec. 2 Elections/changes are effective Jan. 1, 2017 - Dec. 31, 2017 unless you have a qualifying life event Nov. 14 - Dec. 2

Do You Know the Value of Your Benefits? Before we begin, I want to spend a minute sharing the true value of your BorgWarner benefits… A recent study by Towers Watson shows that BorgWarner employees pay a significantly lower share of total healthcare claims costs compared to the amount paid by employees of our industry peers. As you can see here, where most companies have their employees pay a total of 34% of medical costs through payroll deductions and out-of-pocket costs – such as deductibles, copays and coinsurance – you only pay 21% - 17% if you enroll in the Basic Plan and earn your wellness points. We aim to continue offering comprehensive and affordable coverage, but to do so we need your help – by choosing and using your healthcare wisely and by actively taking steps to better your health, you can make an individual difference toward helping keep our costs manageable! In that spirit, lets start out by taking a look at a brief video that will inform you about your benefits… BorgWarner employees pay a significantly lower share of total healthcare claims costs compared to the amount paid by employees of our industry peers. 2017 Estimates

Health and Wellness Benefits Overview Keep in mind, you can view this video at any time by going to the BorgWarner.com/benefits website.

Complying with New Regulations Reducing the taxable cash reward for chronic disease management program from $200 to $100 Complies with new maximum incentive rules Wellness Incentive Opportunity no longer requires HRQ completion to earn cash This means you can begin to earn the individual cash rewards for various healthy activities immediately, without first completing the HRQ

Medical Plan Enhancements Presenter's Name Presentation/Event Name 4/16/2018 Medical Plan Enhancements Addition of an Employee +1 coverage tier

Medical Plan Enhancements Patient Care Rewards Program Rewards you for choosing lower-cost, high-quality providers for elective procedures (i.e., imaging and outpatient surgeries) Call Patient Care and they will provide you with names, cost and quality information of up to three qualifying providers within 7 days As long as you don’t select the highest cost option provided, you earn a taxable cash reward in your paycheck — 20% of the calculated savings, up to a maximum of $1,000 per procedure/service

Medical Plan Enhancements Patient Care Rewards Program Here’s an example of how it works:

Medical Plan Enhancements Telehealth Program Alternative to emergency room or urgent care visits Services are offered at a reduced office visit cost as part of your medical plan — giving you on-demand access to cost-effective, quality care (including prescriptions) National network of licensed, board-certified U.S.-based doctors, including pediatricians Talk with a doctor anytime day or night via phone or video conferencing to discuss any minor, non-life-threatening medical condition You will receive more information on how this works in January.

Medical Plan Enhancements Cigna 90 Now Program Offers more choice and greater savings opportunities Now able to fill your 90-day supply/maintenance medications at Cigna 90-day retail pharmacies in addition to the current mail-order option. Both options offer discounted 90-day fills Access Cigna’s network of 29,000 “long-term fill” pharmacies, including CVS, Target, Walmart, Kroger and more Find other participating 90-day retail pharmacies by visiting: Cigna.com/Rx90network There will be no disruption in your benefit coverage and no changes to your copays or the formulary

2017 Medical Contribution Costs As you see here, you can continue to earn a $0 contribution plan under the BASIC PLAN by earning 5 or more incentive points through the Shift Into Better Health Premium Incentive Program. However, contributions for both medical plans at all other levels of coverage will increase for 2017, due to increased claims. All the more reason to take advantage of the Shift Into Better Health Premium Incentive Program! Keep in mind, the total number of points earned as of October 31, 2016 will be used to determine your medical premiums for 2017. No changes to dental and vision

Reminder: Working Spouse Rule 4/16/2018 Reminder: Working Spouse Rule If your spouse is eligible for, but chooses not to enroll in, his/her own employer’s group plan, he/she WILL NOT be eligible for dependent medical benefits provided as secondary coverage under the BorgWarner plan. If you have a working spouse who is enrolled for healthcare coverage through their own employer* and you want to add them as a dependent to your BorgWarner healthcare coverage, the BorgWarner plan will pay secondary coverage ONLY. The spouse’s employer’s plan will be their primary coverage. If you enroll in both plans please realize you may be required to pay two premiums. In addition, the benefits you receive under each plan are coordinated. BorgWarner’s policy is that the total reimbursement from both plans cannot be more than the allowable under the BorgWarner plan. Let’s look at an example… Working spouse is required to enroll in the medical coverage offered through their employer to be added to a BW plan Here’s How It Works If your spouse is eligible for, but does not to enroll in, their own employer’s group plan, they WILL NOT be eligible for BW coverage If your spouse is enrolled in their employer’s plan, you may add them as a dependent to BW plan, but the BW plan will pay secondary coverage ONLY If you enroll in both plans, benefits under each plan are coordinated. The total reimbursement from both plans cannot be more than the allowable benefit under the BW plan

Health Assessment (HRQ) Completion Rules [Read through slide] If you (and/or your spouse) are not enrolled in one of our health plans currently in 2016, but you (and/or your spouse) will be enrolling effective Jan. 1, 2017:

Financial Wellness Benefit Overview Keep in mind, you can view this video at any time by going to the BorgWarner.com/benefits website.

Enhancing Financial Protection Life Insurance Increased Basic Life Benefit BW is doubling the Basic Life benefit to provide added financial protection to our employees and their families in the event of unforeseen circumstances It will increase from 1 times base annual salary (up to a maximum benefit of $500,000) to 2 times base annual salary (with a minimum of $50,000 up to a maximum of $1 million) TIP: You may want to evaluate your level of Optional Life coverage with this improvement. Go to www.metlife.com/mybenefits to review your coverage and/or enroll in Optional Life. Expanded Coverage Options for Spouse Life Insurance You will now have the additional options of $75,000 or $100,000 coverage levels

Enhancing Financial Protection Presentation/Event Name Presenter's Name 4/16/2018 Enhancing Financial Protection 3 key points to this slide: Company provided LTD reduces from 60% to 50% Can maximize income during a disability by purchasing option coverage (here’s what I had to offer) If you’re concern about additional cost, then consider lowering your optional life insurance since the basis is now 2x Long Term Disability BorgWarner-provided LTD reduces from 60% to 50% of base salary. Some employees are still at risk for not having enough coverage in the event of a long-term disability How Do You Maximize Your Income in the Event Of a Disability? - By purchasing the Optional LTD70 Plan for a greater benefit Optional LTD70 offers a higher level of disability take-home pay because it is calculated on base pay AND bonus When combined with the core LTD coverage paid for by the Company, employees can gain peace of mind that they and their families are protected TIP: Concerned about the additional cost? Consider lowering your optional life insurance level and use the premium savings towards the Optional LTD70.

Consider Your Options: Upgrade Your LTD Walk through the schematic pointing out the differences among the two plans: Key Points: 60% only covers 60% of BASE comp only 70% covers 70% of base PLUS bonus For an addition $17 a month, you can get $822 more [Presenters: If you want more information, use the slide in the appendix for a side-by-side comparison.] Base Salary: $45,000 Bonus: $4,500 Disability is more prevalent than you think! - Over 1 in 4 of today's 20 year-olds will become disabled before they retire. - Most disabilities are caused by illnesses rather than accidents – close to 90%! - 68% of American adults have NO savings set aside for emergencies.

Enhancing Financial Protection Voluntary Critical Illness Benefit If you want additional financial protection and peace of mind related to unforeseen medical events Provides a lump-sum payment in the event of a diagnosis of a serious illness, such as heart attack, stroke, cancer, organ transplant or kidney failure Coverage options include: $10,000, $20,000 or $30,000 Rates are age-banded with tobacco users paying more for coverage. Rates can be found in your Open Enrollment packets

Enhancing Financial Protection Voluntary Critical Illness Benefit How you can use your benefit:

Enhancing Financial Protection New Voluntary AD&D Benefit If you would like additional financial protection beyond the BW- provided Basic Life and AD&D you can purchase Voluntary AD&D for you, your spouse and/or your children If you want coverage for: Coverage Yourself: 1 to 8 times your base annual earnings, up to a maximum of $1 Million. Your spouse and children Spouse: Child(ren): 50% of your coverage amount 20% of your coverage amount Your spouse only 60% of your coverage amount Your children only 25% of your coverage amount Some additional benefits that may be included in your VAD&D Insurance coverage include: Air bag benefit, child care center benefit and seat belt benefit

Enhancing Financial Protection Presenter's Name Presentation/Event Name 4/16/2018 Enhancing Financial Protection No EOI – everyone who wants to gets it New Voluntary AD&D Benefit You pay the full cost, but have access to more favorable group rates than if you purchased outside of BW You can elect coverage at any time but will need to enroll directly through MetLife at www.metlife.com/mybenefits Coverage begins the first of the month following enrollment Voluntary AD&D Coverage Monthly Cost per $1,000 of Coverage Employee Only $0.022 Employee & Family $0.030

Reminder: Dependent Care FSA Presenter's Name Presentation/Event Name 4/16/2018 Reminder: Dependent Care FSA If you participate in the Dependent Care Flexible Spending Account and your base pay and bonus equal more than $120,000/year, your contribution is limited to $3,500 per year (per IRS rules)

Contact HR Link for questions about dependent eligibility Enrolling Online To close out our meeting, I’ll recap some important points about the enrollment process. [walk through slide content] Everyone MUST Go ONLINE and Do One of the Following: Elect to keep coverage the same as 2017 Change coverage Elect to “Waive Coverage” OR … Contact HR Link for questions about dependent eligibility 1-844-292-5465 hrlink@borgwarner.com

Supporting Your Enrollment There are a lot of materials aimed at helping you make wise decisions during enrollment so be sure to take advantage of them. Your enrollment packet should have included the highlights piece, Spouse HRQ instructions and the Workday online enrollment instructions. You can also find these items and the more detailed 2017 Benefits Reference Guide -- all posted online at the benefits page. If you have questions throughout enrollment, please contact your HR Link representative. Thanks you for your time today! www.borgwarner.com/benefits hrlink@borgwarner.com

Are there any questions?

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Presentation/Event Name Presenter's Name Presentation/Event Name Premium Points for 2017/2018 4/16/2018 Earn at least 5 Points by 10/31/17 for the lowest cost premium for 2018!

Health Care FSA Timeline for 2017 If you want a more detailed timeline, there’s one in the appendix you can use Note: all expenses must be incurred by December 31, 2017 2017 claims must be submitted to Cigna by March 31, 2017

Enhancing Financial Protection Long Term Disability

Enhancing Financial Protection Critical Illness Benefit Note: If you use tobacco, rates will be higher.

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