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

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

3. 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 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, Dec. 31, unless you have a qualifying life event
Nov Dec. 2

4. 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

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

6. 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

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

8. 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

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

10. 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.

11. 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

12. 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

13. 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

14. 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:

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

16. 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, up to a maximum of $1 million)
TIP: You may want to evaluate your level of Optional Life coverage with this improvement. Go to 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

17. 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.

18. 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.

19. 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

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

21. 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

22. 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
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

23. 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)

24. 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

25. 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!

26. Are there any questions?

27. Presentation/Event Name
4/16/2018
Presenter's Name

28. 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!

29. 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

30. Enhancing Financial Protection
Long Term Disability

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

32. Presentation/Event Name
4/16/2018
Presenter's Name