2011 U.S. Health and Welfare Benefits Enrollment Presentation

1. 2011U.S. Health and Welfare Benefits Enrollment Presentation

2. Annual Enrollment for 2011 You only need to complete an enrollment form if… you want to enroll in or make changes to your current medical, dental, vision or voluntary (employee paid) benefit elections, you want to enroll, or re-enroll, in FSAs Your enrollment form must be submitted to your local human resources team by… 5:00 P.M. local time on Friday, November 12, 2010

3. No Health and Welfare Benefit Changes for 2011 • Medical Plan Benefits & Plan Options • Dental Plan Benefits • Voluntary Vision Plan Benefits • Company Paid Life, AD&D & LTD Insurance Coverage • Optional Life Insurance for me, my spouse and my child(ren) • Voluntary Short Term Disability • AXA Travel Assistance • Cigna Employee Assistance Program • Company Provided Business Travel Accident Policy • Voluntary Benefits through MetLife • Auto, Homeowners, Personal Liability Insurance • Pet Insurance • Pre-Paid Legal (Hyatt Legal) Health Reform Law (PPACA)

4. Health and Welfare Benefit Cost Changes for 2011 • Medical • Dental • Employee Paid Life and Short-term Disability Insurance • Employee Paid Vision Care Cost Increase No Cost Increase No Cost Increase No Cost Increase

5. U.S. Group Medical Insurance Costs Over time Average Annual Worker and Employer Contributions to Premiums and Total Premiums for Family Coverage, 1999-2010 Average Annual Worker Premium Contributions Paid by Covered Workers for Single and Family Coverage, 1999-2010 * Estimate is statistically different from estimate for the previous year shown Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2010.

6. Medical Plan Benefits • Two Group Medical Plans • Core Medical Plan (you assume more responsibility for minor medical costs and enjoy lower payroll contributions) • Buy-up Medical Plan (plan assumes more responsibility for minor medical costs and you assume higher payroll contributions) • Open Access Plus Network • Direct access to care – any provider can be used, but out-of-network costs may be higher • No referrals needed for specialists • No claim forms – in-network claims filed by provider • Ask Cigna questions directly – • Call 800-564-7642 Our group medical plans are “Grandfathered” as defined by the PPACA (this means that our plans are required to comply with some, but not all, provisions of the new law). You have received a regulatory required notice of the plan’s Grandfathered status by mail and/or by email in the coming weeks – the notice is for your information only and no action is required on your part.

7. Medical Plan Benefits Grandfathered plan benefit requirements under PPACA include… • Removal of lifetime dollar limits on essential health benefits • No pre-existing conditions limitations for children under age 19 • Coverage for adult children up to age 26; regardless of financial dependency; unmarried or married; must not have access to other coverage • You may pay deduct, or pay pre-tax, for your child’s health insurance premiums and medical expenses through the end of the tax year in which your child turns age 27 -- not subject to IRS dependent child age and residency requirements • Expanded mental health and substance abuse benefits Detailed medical plan information can be found at pegshr.com

8. Prescription Drug Plan Mail order pharmacy saves you time and money-- go towww.mycigna.com - pharmacy - Rx tab for details.

9. Dental Plan Benefits • Dental PPO • Administered by • Large network of providers • Additional savings by using a network dentist • In-network dentists file claims • NO ID cards for dental! • http://mybenefits.metlife.com • To register and create your password you will need to provide ss# and date of birth • 800-942-0854

10. Dental Plan Benefits • Deductible • $50 individual • $150 family • Covered Expenses • Preventative care 100% • Basic restorative 80% (after deductible) • Major restorative 50% (after deductible) • $1,500 annual dental maximum per participant • Orthodontia • 50% (after deductible) • $1,500 lifetime maximum per participant • Dependent children only up to age 19

11. Vision Care Benefits

12. Coverage 2011 Core Medical Plan 2011 Buy-up Medical Plan Monthly Monthly EE Only $44.23 $110.22 EE + Spouse $158.65 $261.07 EE + Child(ren) $143.71 $243.91 EE + Family $195.44 $372.68 Employee Contributions to Medical Coverage New Federal tax law allows personal tax deduction , or pre-tax payment, of health insurance premiums to cover children through the end of the tax year in which your child turns age 27. You may cover your children under our medical and dental insurance programs up to age 26, unless they have access to their own insurance (i.e. through their own employer)

13. Employee Contributions to Dental Coverage

14. Employee Contributions to Vision Coverage

15. Employee Assistance Program Confidential Login instructions are posted on pegshr.com

16. Flexible Spending Accounts You must re-enroll each year to participate!!! Don't throw your card away! • You may put between $100 and $5,000 in your Health Care FSA • You may put between $100 and $5,000 in your Dependent Care FSA • Child Day Care • Elder Day Care • Not Health Care Current cards are reloaded for 2011 Effective Jan 1, 2011, over the counter medications can no longer be reimbursed through FSAs unless you provide Adviant with a valid physician’s prescription • Merchants will not accept your FSA debit card when purchasing over the counter medications – you’ll need to submit a paper claim to Adviant to be reimbursed • Plan ahead – Health Care FSA annual maximum is reduced to $2,500 in 2013

17. Life and AD&D Insurance Basic Life / Accidental Death & Dismemberment Insurance (company paid) • 1X salary up to $50,000 (minimum coverage = $15,000) • Optional Life Insurance (employee paid) • Employee • 1X, 2X, or 3X salary up to $1 million • EOI required for any changes or additions to coverage • Spouse (employee must elect at least 1X salary in optional) • Up to 100% of employee supplemental life benefit up to $250,000 • EOI required for any changes or additions to coverage • Children (must elect at least 1X salary in optional) • $5,000 or $10,000 • $0.40 or $0.80 per month • EOI required for any changes or additions to coverage

18. Disability Insurance • Short-term Disability (employee paid) • 14-day elimination period • 60% of salary up to $1,000 per week (minimum = $25/week) • After-tax premiums = tax-free benefit • Benefit paid for 24 weeks (168 days) after elimination period • Seamless transition from short- to long-term disability • EOI required for any new elections • Long-term Disability (company paid) • 60% of salary up to $11,000 per month (minimum = $100/mo.) • 180-day elimination period • Benefits received are taxable

19. AXA Travel Assistance • Covers you and your eligible dependents when you are 100 miles or more from your home • Key Services: • Medical Referrals & Appointments/Hospital Admission Guarantee • Emergency Evacuation • Critical Care Monitoring • Medically Supervised Repatriation • Emergency Message Transmission • Legal Referrals • General Travel Info (visa, passport, local customs) • Lost Document/Luggage Assistance • Emergency Cash/Bail Assistance • Political Evacuation • Card/Brochure w/contact number on www.pegshr.com • Eligible dependents DO NOT have to be traveling with employee to be covered.

20. Pre-Paid Legal (Hyatt Legal) All 2011 enrollment changes (new elections, and terminations) must be self-administered… • go to http//mybenefits.metlife.com; or • call 1-800-GET-MET8 All enrollments are for the entire calendar year – no changes can be made during the year 2011 rate will be $26.95per month ($13.48 per pay pd.) 2011 cancellations must be made by the close of business on November 12, 2010

21. Other Benefits • Employee Banking • Metpay Home and Auto Insurance • Pet Insurance (no kidding!)

22. 401(k) Deferral Limit No Changes for 2011 • The IRS has not increased the maximum amount you may defer into your plan in 2011 ($16,500 – same as 2010) • As in 2010, employees 50 yrs of age or older in 2011 may defer an additional $5,500 in “catch-up” contributions (over-and-above the normal deferral amount) • The IRS has not increased the compensation limit for 2011 ($245,000 – same as 2010) All 401(k) plan changes must be made directly into Milliman’s system at www.millimanbenefits.com before midnight on 12/31/2010 in order to be effective during the first quarter of 2011. This includes plan participants who elected catch-up contributions for 2010 and want to dis-enroll for 2011 -- be aware that your catch-up contribution election will automatically roll-over for plan year 2011, unless you go out to the Milliman web site and dis-enroll yourself.

23. Annual Enrollment for 2011 Your 2011 Benefits Enrollment Form is available now at www.pegshr.com. You only need to complete an enrollment form if… • you want to enroll in or make changes to your current medical, dental, vision or voluntary (employee paid) benefit elections, • you want to enroll, or re-enroll, in FSAs Your enrollment form must be submitted to your local human resources team by… 5:00 P.M. local time on Friday, November 12, 2010

24. 2011 Benefit Election Confirmation Statements Statements will be mailed to your office location the week of November 29th. You should… • review your statement to determine there are no data entry errors on our part, • correct any data entry errors by making the pertinent changes on the statement, and • sign and date the statement and return it to the benefits office in Dallas The Benefits office in Dallas must receive your corrected statement by5:00 p.m. (CST) on December 17, 2010 If everything is correct, then no further action is required on your part

25. Get your questions answered quickly! (214) 234-4604 kelly.tyler@pegs.com Help!!!