2013 Benefits Overview Webinar

1. 2013 Benefits Overview Webinar

2. 2013 Open Enrollment Dates:11/1/12-11/8/12 • All employees eligible for benefits need to go through the online benefits process via ESS and complete the online process by 11/8/12. • This process will only take about 10 minutes, and we need everyone to log in and make benefit elections for 2013 to ensure they are covered under the plans of their preference • Employees also should complete this process even if they don’t want to make any insurance changes for 2013, or if they want to waive insurance coverage for 2013. • All changes made during Open Enrollment will be effective 1/1/2013 • Open Enrollment is the only time employees can make changes to their insurance benefits, unless they have a qualifying event (ex: marriage, divorce, child birth, adoption, etc) occur during the plan year.

3. 2013 Online Open Enrollment • Intranet Resources for Online Benefits: • Ulti Pro Quick Tips: Making Open Enrollment Elections • 2013 Open Enrollment Details sheet with Rates • 2013 Benefits Guide • ESS is now available outside of the bank, so you can make benefit elections online on the Internet. • https://www2.ultiproworkplace.com/Login.aspx • Any employees, departments, or branches having trouble following the instructions sheet to make benefit elections online should contact HR as soon as possible

4. Benefits Overview • Medical Insurance – BCBS of SC • Continuing Self-Funded Plan effective 1/1/2013 • Adding HSA Plan option for 2013 • Continuing current PPO and HRA, members will continue to use their current ID cards; • Those who change plans or enroll in the HSA for 2013 will receive new ID cards in late December/early January in the mail at their home address • Dental Insurance – changed to Delta Dental 1/1/12, and will continue in 2013 • New dental insurance cards will only be issued to new dental participants • Vision Insurance – continue with Spectera • Life Insurance & LTD – The Standard • Flex Spending Accounts - ProBenefits • 401(k) Plan • ESPP • Colonial

5. Medical Plan for 2013 • We will continue with our Self-Funded Plan with BlueCross BlueShield of South Carolina as our medical insurance Administrator in 2013 • The Bank’s Medical Insurance Claims increased by 33%, and pharmacy claims have increased over 15% from 2011 to 2012 • National Healthcare costs are expected to increase 8% in 2013, with the Bank spending $85,000 on average per week on medical insurance claims.   • Therefore, we have made modest plan design changes, added a Health Savings Account Plan option, and increased employee contributions so that we can manage the increased claims experience and rising costs of healthcare. • 84% of all companies will have to make plan design changes in 2013. The changes to our plan, listed below, are modest compared to the changes most companies are making in 2013.

6. Medical Plan for 2013 PPO • No plan design changes for the PPO plan (copays, deductible, and OOP will remain the same for 2013) • Increase employee contributions HRA (Health Reimbursement Account) • Increase OOP Max as follows: • Single:  From $3,000 to $4,000 In-Network (from $5,500 to $8,000 Out-of-Network) • 2 Person:  From $4,300 to $4,500 In-Network (from $7,300 to $9,000 Out-of-Network) • Family:  From $4,300 to $5,000 In-Network (from $9,200 to $10,000 Out-of-Network) • The deductible will remain the same • Increase employee contributions *NEW* HSA (Health Savings Account) • SCBT will be adding a 3rd medical plan option in 2013 – Health Savings Account (HSA) • An HSA is a High Deductible Health Plan (HDHP) • You will have a High Deductible Medical Plan with an Health Savings Account • You will receive a BCBS Id card in the mail • The bank will make quarterly deposits into your HSA as long as you are actively employed at the beginning of each quarter; funds in your HSA do not expire, and you can take them anywhere you go and use them in retirement • You will receive a banking card and have the option of paying your medical expenses from your HSA or out of your pocket • Premium for HSA is a little higher than 2012 HRA rates, but would be the lowest cost option of all 3 medical plans in 2013 in terms of payroll deduction amount • If you switch from the HRA Medical Plan to the HSA Medical Plan pleffective 1/1/13, your HRA company paid funds that have built up will not carry over • You can also elect to put funds from your paycheck towards your own HSA via payroll deduction • 2013 HSA Max for Self-Only:  $3,250 • 2013 HSA Max for Family:  $6,450 • 2013 Catch Up for those over 50:  $1,000 • You are responsible to the IRS for ensuring charges to your HSA are legitimate HSA eligible expenses • There is a separate on demand webinar covering the HSA plan details available for your review on the Intranet

7. Health Reform Impact for 2013 • Dependent Eligibility • Our PPO medical, dental, and vision insurance plans cover adult children up to age 26 (until the dependent’s 26th birthday) with out college verification if they are not eligible for other employer based coverage • The HRA and HSA plans cover adult children up to age 26 (until the dependent’s 26th birthday) without college verification • There are no pre-existing condition exclusions for children under age 19 • Lifetime maximum on medical plan • Unlimited • Health Care Flexible Spending Account maximum cap will be lowered from $4,000 to $2,500 effective 1/1/13

8. Preferred Blue PPO Plan with BCBS of SC Copay is $35 for In-Network Primary Care Copay is $65 co-pay for In-Network Specialists Out of Network Physicians: 50% for services after the deductible has been met Deductible is $900 per individual or $2,700 per family Out of Pocket Expense is $3,600 per person or $6,150 per family for In-Network; $6,150 per person or $9,225 per family for Out of Network Prescription Co-Pays: Generic: $25 Brand Name: $50 Non Preferred: $80 Mail Order Prescription Co-pays (3 month supply): Generic: $30 Brand Name: $75 Non-Preferred: $100 Wellness benefits: Adult Annual Physical : $35 co-pay Well Child Care : $35 co-pay The following are 100% covered if participant sees a preferred provider: Routine Mammogram Routine Pap Smear Routine Prostate Screen Routine OB/GYN Medical Insurance – PPO Plan

9. PPO Plan Effective 1/1/13 Benefits apply to an Unlimited Lifetime Maximum. This Benefit Summary is only a brief, non-legal outline of the benefits offered. Please refer to the employee handbook for further details, or consult with your Human Resource Department.

11. Full Time Employees Single: $115.00 2 Person: $500.00 Family: $750.00 Part Time Employees Single: $221.04 2 Person: $680.64 Family: $967.44 PPO Plan Monthly Employee Contributions

12. HRA Medical Plan(Health Reimbursement Account) • Consumer driven plan with BCBS of SC • Same preferred providers as PPO Plan • With an HRA, an account is set up for participants that has a designated amount of dollars to fund medical expenses • Unused HRA dollars will be applied towards the next plan year • Less expensive monthly premiums than the PPO Option

13. Used by employees for qualified healthcare expenses determined by employer. Health Reimbursement Account Employer contribution to an employee’s health reimbursement account (HRA). $750 Deductible $1,650 Once the HRA is exhausted, an employee is responsible for paying out-of-pocket “bridge” to meet the remaining deductible. Bridge $900 Medical Plan Coverage Coverage takes effect when expenses exceed deductible. Employer provides coverage above the deductible. Coinsurance HRA Single Coverage Model

14. HRA Coverage Levels

15. No co-pays (for Doctor Visits or Prescriptions) Check with Doctor and Pharmacy for costs Wellness benefits: The following are 100% covered if participant sees a preferred provider: Adult Annual Physical Routine Mammogram Routine Pap Smear Routine Prostate Screen Routine OB/GYN Well Child Care Out of Pocket Expenses In-Network: $4,000 per person, $4,500 for 2 Person, $5,000 for Family Out of Network: $8,000 for Single, $9,000 for 2 Person, and $10,000 for Family HRA Medical Plan

16. HRA Plan Effective 1/1/13 Benefits apply to an Unlimited Lifetime Maximum.

18. Full Time Employees Single: $85.00 2 Person: $325.00 Family: $440.00 Part Time Employees Single: $140.97 2 Person: $389.80 Family: $509.88 HRA Medical Plan Monthly Employee Contributions

19. Health Savings Account (HSA) • New plan option for 2013 • Created to help individuals save for qualified medical and retiree health expenses on a tax-free basis. • Combines a High Deductible Health Plan (HDHP) with a savings account for eligible individuals to help pay for qualified medical expenses. • You own your HSA. If you leave the bank you can take your HSA with you to use with another HDHP. • Account balances can be carried over from year to year. • Participants receive a regular BCBS ID card as well as HSA checks and a debit card. When you receive the bill from your doctor or pharmacy, you could elect to pay for it with funds from your HSA. • Those who are on Medicare AND over age 65 cannot be in the HSA plan. • Employee is responsible to IRS for ensuring charges to HSA are legitimate HSA eligible expenses.

20. Health Savings Account (HSA) Plan • Quarterly bank funded deposits into HSA for participants actively employed at beginning of each quarter; funds in HSA do not expire, and the employee can take them anywhere they go and use them in retirement. • For the year, the Bank will fund: • $300 for individual • $600 for two-person • $900 for family • Premium for HSA is the lowest cost option of all 3 medical plans in 2013 in terms of monthly payroll deduction amount. • Employee can also elect to put pre-tax funds from their pay check towards their own HSA via payroll deduction. • 2013 HSA Contribution Max for Individual-Only:  $3,250 (includes bank contributions) • 2013 HSA Contribution Max for Family:  $6,450 (includes bank contributions) • 2013 Catch Up for those over 55:  $1,000 • HSA participants cannot use HSA in conjunction with an FSA or HRA plan. • If you switch from the HRA plan to the HSA plan, you cannot take the HRA money with you into your HSA account.

21. Health Savings Account (HSA) Plan Process for Opening Your HSA: • If you elect to enroll in the HSA medical plan for 2013, you will also need to elect the amount (if any) you want to contribute to your own HSA via payroll deduction (this is separate from your HSA medical insurance deduction). • HR will follow up with you after open enrollment in late November / early December and provide a form with specific instructions on how to go to your local FSR and set up your HSA.

22. Full Time Employees Single: $60.00 2 Person: $295.00 Family: $410.00 Part Time Employees Single: $134.56 2 Person: $358.48 Family: $468.57 HSA Medical Plan Monthly Employee Contributions

23. Dental Insurance • Effective 1/1/12, the bank’s dental vendor changed to Delta Dental. • We will continue with Delta in 2013 • Delta Dental is the nation’s largest dental benefits administrator • Over 75% of practicing dentists participate in one of Delta’s networks • Delta Dental will mail new participants a dental card to their home address in late 2012/early 2013; if you currently have a Delta Dental card, please continue to use it. • If you would like to enroll, cancel, or change your coverage level in our dental insurance plan for 2013, you will need to make the corresponding election in the online benefits system.

24. Dental Plan • Deductible: $50 per individual; $150 for Family • Annual Maximum Benefit: $1,000 • Diagnostic and Preventative Services (covering two examinations including cleanings and routine x-rays annually) are paid at 100% of usual and customary charges (deductible waived) • Basic dental services are paid at 80% of prevailing charge after deductible • Major dental services are paid at 50% of prevailing charge after deductible • Orthodontic services are paid at 50% up to $1,500 • Only for Dependents up to Age 19

25. Full Time Employees Single: $5.31 2 Person: $39.85 Family: $73.54 Part Time Employees Single: $12.50 2 Person: $47.04 Family: $80.73 Dental Insurance Monthly Premiums

26. Vision Insurance • We will continue with Spectera Vision Insurance during 2013. • No vision card; just tell your provider that you have Spectera vision coverage and ask them to file the claim (if your provider is a preferred provider) • Preferred providers can be viewed at www.spectera.com • Voluntary benefit 100% paid by employee via payroll deduction • If you would like to enroll, cancel, or change your level of coverage in the Vision Insurance Plan in 2013, you will need to make the corresponding election in the online benefits system.

27. Vision Insurance Plan • Service Frequency: • Exam: 12 months • Lenses: 12 months • Frames: 24 months • Co-pays: • $15 Exam • $15 Materials (includes lenses/frames or contacts) • Preferred Providers: • Includes Wal-Mart and H Rubin • Go to www.spectera.com for preferred provider list

28. Covers a Comprehensive Vision Exam ($15 copay once every 12 months) Materials Pair of standard lenses for eyeglasses once every 12 months ($15 copay) Eyeglass frames once every 24 months ($15 copay) $50 wholesale frame allowance at private practice providers $130 frame allowance at retail chain providers Materials Continued Contact Lenses in lieu of eyeglasses once every 12 months If covered disposable contact lenses are chosen, up to 6 boxes (depending on prescription) are included when obtained from a network provider Most common contacts are covered in full Special contacts (ex: toric, gas permeable, and bifocal contacts) are outside of the covered-in-full selection, and a $150 allowance would apply Vision Plan

29. Vision Benefits at an Out-of-Network Provider

30. Vision Benefits at an Out-of-Network Provider • Receipts for services and materials purchased on different dates must be submitted together at the same time to receive reimbursement • Receipts must be submitted within 12 months of the date of service • Send copy of receipt, along with your Name, DOB, and Address to: Spectera Claims Department PO Box 30978 Salt Lake City, UT 84130 OR fax to: 248-733-6060

31. Vision Insurance Monthly Premiums • Full Time and Part Time Employees • Single: $7.51 • 2 Person: $13.79 • Family: $23.31

32. Life Insurance and LTD • The bank provides term life insurance through The Standard to each employee that works 20 or more hours per week • The face value of each employee’s coverage is as follows: • Senior Officers (VP and above): 3x annual salary • Junior Officers: 2x annual salary • Other employees: 1 ½ x annual salary • Our Group Life Insurance policy maximum is $1,000,000, which includes the combination of bank paid coverage plus any Additional/Optional coverage you may have elected.

33. Life Insurance and LTD • Additional Life coverage can be purchased at a rate of $0.37 per thousand in the following increments: • Senior Officers: one, two, or three times salary • Junior Officers: one or two times salary • Other Employees: one times salary *Maximum Life Insurance amount is $1,000,000, which includes the combination of bank paid coverage plus any Additional/Optional coverage you may have elected • Dependent Life coverage is available to eligible employees in the amount of $10,000 for a spouse and $5,000 per child. This is at the expense of the employee at a rate of $2.75 per month.

34. Life Insurance and LTD • Long Term Disability (LTD) is furnished to all full-time employees (30 hours per week) at no cost to the employee. • LTD coverage is with The Standard. • Basic coverage under Long Term Disability will provide the disabled employee in conjunction with Social Security disability 60% of average monthly earnings after the first 90 days of disability. Benefits are still payable until age 65.

35. Flexible Spending Accounts • ProBenefits will continue as our FSA vendor for 2013 • Must enroll each year for FSA’s if you want to participate • You can enroll in a Health FSA and/or a Dependent Care FSA • An FSA is a great way for you to pay for certain medical and dependent care needs by receiving a tax advantage • Determine amount you would like to contribute to your FSA for 2013, then this money would be deducted from your paycheck PRE-TAX in each of your paychecks in equal amounts • $4.50 per month Administrative Fee (payroll deducted) • Participants can use the money in their Health FSA at any time during the plan year. If you would like an FSA debit card for your Health FSA and do not currently have one, please complete the request form located on the intranet • Plan carefully, because if you do not use the money you set aside for the plan year during the plan year, then you lose it • If enrolling in the HRA plan, an FSA is a great way to fund the “Bridge” portion that is paid by the participant

36. Flexible Spending Accounts • ProBenefits will issue new debit cards to all Health FSA participants who request a debit card (form is on the intranet) • If you have a ProBenefits debit card from 2012, you can continue to use it in 2013 unless it has expired • ProBenefits will automatically mail out debit cards to former participants with expired cards for next year if they re-enroll in the new plan year. • Debit cards are not issued for Dependent Care FSA’s • If you submit manual FSA claims, and would like direct deposit reimbursement, please remember to complete the direct deposit form (separate from the online benefits enrollment process) located on the SCBT intranet. Direct deposit reimbursements are processed weekly. • If you submit manual FSA claims, and would like your reimbursement in the form of a check, please realize that reimbursement checks are processed monthly. • Note: FSA Health Maximum has been reduced to $2,500 for 2013 due to federal regulations (see next slide)

37. Minimum & Maximum FSA Contribution Amounts*note lower maximum for Health FSA for 2013

38. 401(k) Can change deferral % anytime online at www.retirementfocus.com Deferral % changes made online will go into effect the 1st day of the following month as administratively feasible The bank currently matches 100% on the 1st 5% of employee contributions Pre Tax plan with Roth (After Tax) option Must be 21 to participate ESPP Employee Stock Purchase Plan Can change deferral % monthly; need to return change form prior to the first day of the month Can defer up to 10% of base pay (max of $25,000 of common stock per yr) Stock is bought at a 5% discount After Tax plan www.computershare.com 401(k) and ESPP

39. Colonial Life • Our Colonial agents will visit each branch sometime between September and December • Branch visit dates and times are set up by each branch manager, with the exception of Gervais and Orangeburg Main • Gervais: 11/14/12 (9am-12pm) in Richland Conference Room • Orangeburg Calhoun: 11/13/12 (9am-4:30pm) in Board Room • If you cannot attend your branch’s Colonial day, and would like to speak with an agent, please let Allison Cain know and she will connect you with our agents • Remember that Colonial is voluntary insurance, and mostly offers Universal Life, Cancer, and Short Term Disability policies. If you enroll in any of these policies, the premium will be payroll deducted

40. FINAL REMINDERS • All employees need to go through the online benefits process to either enroll or waive coverage in medical insurance, dental insurance, vision insurance, and Flexible Spending Accounts • Flexible Spending Accounts (FSA’s): participants must re-enroll in this each year, so if you want to participate in 2013, remember to sign up online! • Remember to complete your online Open Enrollment by 5pm on Thursday, 11/8/12. • Please contact Allison Cain or anyone in Human Resources with any questions!