1. 2016 Employee Benefits

2. 2016 Employee Benefits Overview  Medical Rates increased 20+% across all plans  Move to Simpler Medical Plan Offering  Three Plan Choices  Simple “composite” rates for each plan  Addition of a Flexible Spending Account  Minimal Change on Dental, Life and Disability

3. Seek Thermal 2016 Medical Plans

4. Health Savings Accounts What are HSAs? It’s a Federally Tax Favored Savings Account. Funds contributed through payroll or manually deposited by account holder Funds accessed through debit cards Funds accessed through checks Payments for qualified expenses are tax free

5. Health Savings Accounts (cont.) Qualified Expenses – Partial List Medical and Prescription Drug Costs Dental and Orthodontia Chiropractic, Acupuncture, Acupressure, etc. Eye Glasses & Laser Surgery for Vision Counseling & Mental Health Services COBRA & Long Term Care Expenses

6. Dental Coverage - Principal Life (No Change)  Diagnostic & Preventive – 100% Coverage  Basic Services & Perio & Endo – 80% Coverage  Major Services – Crowns, Bridges – 50%  $50 Deductible for Basic & Major  $1,500 Per person Annual Max

7. VSP Vision Plan  Much Greater Benefits in Network  Exams every 12 months - $10 co-pay  Frames & Lenses every 12 months - $25 co- pay  $150 frame allowance then a 20% discount  Includes bi and Trifocals & standard lenses  40% discount on second pair & more  Contacts in lieu of glass - $150 allowance + 15% discount

8. 2016 Benefits Rates Per Pay Period: based on a bi-weekly payroll, 26 pay periods/year

9. Life & Long Term Disability – Principal Life (no change)  100% Employer Paid  Life - $50,000 Life and Accidental Death  Disability  90 Day Waiting Period  60% Benefit  Benefits Payable to Age 65 or SS Retirement Age

10. Disability Statistics  3 in 10 workers will be disabled before retirement  1 in 7 workers between 35-65 will be disabled for 90 days or longer  Once disabled 90 day the average duration = 3 yrs  It’s 50 times more likely to lose your home to foreclosure due to disability than death

11. New Benefit: Flexible Spending Account-FSA What is a FSA? Section 125 Cafeteria Plan  Pre-Tax Dollars may be used for;  Medical Expenses  Dental Expenses  Glasses  Dependent Care  FSA Video (4 minutes) - FSA Video

13. Employee Assistance Program  Telephone Consultations 24/7 w/ Licensed Mental Health Professionals  E-Chat  Referrals  Help for Stress, Grief, Depression, Relationships, etc.  More info at www.magellanhealth.com/member www.magellanhealth.com/member

14. Next Steps  Open Enrollment – Can add/drop family members  FSA/ Payroll Withholding Form Completed by 12/14/15  Employee Election Form & Plan Details Available at:  http://wp.me/P2ByZS-8C http://wp.me/P2ByZS-8C  Or Paper copy from Deb  Complete Election form to be return to Deb by 12/14/2015

15. Peters & Milam Contact Information Dave Peters – dave@petersmilam.comdave@petersmilam.com Leticia Barbin – leticia@petersmilam.comleticia@petersmilam.com  Detailed Plan Information available at:  Seek Thermal Online Info: http://wp.me/P2ByZS-8Chttp://wp.me/P2ByZS-8C  Phone (805) 687-3225 Fax (805) 687-3247