2020 Benefits Guide

Stockton 12 Honda

Benefits Guide 2

2020

Enrollment ..................................................................................4

Eligibility ......................................................................................6

Medical ........................................................................................7

Medical Coverage / MD Live

Walking Program / Prescriptions ..........................................8

Health Savings Account ...........................................................9

Voluntary Vision ......................................................................10

Dental ........................................................................................11

Life/AD&D .................................................................................12

Disability ....................................................................................14

Aflac Hospital Indemnity .......................................................15

Aflac Critical Illness .................................................................16

Aflac Accident Coverage........................................................17

Employee Assistance Program ............................................18

401(k) .........................................................................................19

Contact Information ...............................................................21

For the most current information, visit my.adp.com or lhm.com/benefits

Note: This publication is only a partial summary of benefits and is provided for informational purposes only. It does not describe all elements of the summarized programs. For complete information regarding the benefits, plan provisions, limitations, and exclusions, and for a description of grievance procedures and binding arbitration of disputes, refer to the subscriber certificate that will be provided to you after enrollment. In the event of a discrepancy or conflict between the information contained in this publication and the benefit plan provisions, the plan documents and insurance contracts will govern. Copies of these documents are available for your review from your Human Resources or People & Culture Department. No rights shall accrue to you and/or your dependents because of any statement, error, or omission in this publication.

Table of Contents Table of Contents

Benefits Guide 3

2020

DEAR STOCKTON 12 HONDA EMPLOYEE:

We are pleased to present the 2020 Stockton 12 Honda Benefits Guide. This guide is intended to clarify the benefit options available to you and to help you make informed choices that best suit your needs. This guide summarizes each benefit and illustrates the significance of your benefits package as part of your total compensation. Remember, the guide only serves as an overview of your benefits. Please refer to the Summary Plan Document for a complete benefit description.

We’d also like to make you aware that the IRS has rules that require employers to strictly enforce enrollment deadlines with regard to receiving benefit enrollment before an employee’s effective date. This means we cannot accept benefit elections made on or after the effective date. Further, if you experience a qualifying event allowing you to add, drop, or modify coverage mid-year, you have 30 days from the event date to make the change.

We are pleased to be able to offer these valuable benefits to you. Thank you for being a partner in our success!

Benefits Guide 4

2020

In addition to your compensation, the Stockton 12 Honda Benefits Package helps in a major way to further your financial wellness, including benefits such as vacation, sick leave, contributions to your 401(k), workers’ compensation, and social security. The value of the Stockton 12 Honda Package adds approximately 40% or more to your income. Together, this is a solid package demonstrating the value of working for Stockton 12 Honda! These important benefit coverages provide a financial safety net for you and your family in the event of unexpected and potentially catastrophic events. The benefit programs are structured around life events that trigger the need for coverage such as the following:

• Caring for your physical well-being and that of your dependents in case of illness or injury.

• Protecting your earnings in the event you are disabled. • Providing for your family in the event of your death or the death

of an enrolled spouse or family dependent. • Supplementing your retirement income.

Complete plan descriptions can be accessed at my.adp.com or lhm.com/benefits.

The benefits package is designed to take advantage of IRS provisions under section 125 that allow portions of some benefit premiums to be deducted from your paycheck on a pretax basis. This saves you money! If you participate in the Roth 401(k) plan, your contributions are deducted from your paycheck on an after-tax basis. Please read all the information carefully and become familiar with your benefits; ask questions and become an active participant in the delivery of your benefits; and review your benefits package with appropriate representatives and family members prior to making your selections.

The choices you make will remain in force during the entire 2020 plan year (unless there is an IRS-approved qualifying event).

Notice: If you have Medicare or will become eligible for Medicare in the next 12 months (age 65), federal law gives you more choices about your prescription drug coverage. See your Human Resources or People & Culture Representative for more information.

Welcome to the Stockton 12 Honda Benefits Package. We are pleased to offer you and your family members a comprehensive benefits package including medical, vision, prescription drugs, dental, life, disability insurance, Employee Assistance Program, health savings accounts, hospital indemnity plan, critical illness, and accident coverage, and a 401(k).

The value of the Stockton 12 Honda Benefits Package adds approximately 40% or more to your income.

Enrollment

Benefits Guide 5

2020

Each fall, during a designated time period, Stockton 12 Honda conducts an annual enrollment period for the upcoming calendar year. During this enrollment period, eligible employees are invited to review the upcoming benefits package in greater detail.

This is an important time because it is the one time during the year you may change your benefit elections and/or add or delete family members from benefit coverages without documenting a qualifying event. There may be benefit programs that require an additional application and approval by the insurance carrier. Your enrollment elections will not be accepted on or after your benefit effective date.

After the enrollment deadline, benefit elections cannot be changed or canceled until the next enrollment period, unless a qualifying event occurs. A qualifying event is a change in family or employment status if:

• You get married or divorced. • You add a dependent child through birth, adoption, or change in legal custody. • Your spouse or dependent dies. • Your dependent loses eligibility for coverage. • Your spouse loses or qualifies for health coverage through

his/her employer.

When you have a qualifying event, change in family or employment status, you have 30 days from the event date to make the change. Changes are then effective on the qualifying event date.

ENROLLMENT

This guide is designed to be a companion to your confirmation statement. Subsequent pages give detailed explanations concerning your benefits and include all the information you will need to enroll in your benefits. Please remember to have the birth dates and social security numbers for all covered dependents when you complete your form.

DEPENDENTS

A dependent is defined as your legal spouse through marriage and legal dependent children (this includes children through adoption, step-children through marriage, and court-appointed legal custody). Parents, divorced spouses, and grandparents are not considered dependents and are not eligible for any of the benefits provided by Stockton 12 Honda. Individual benefits have specific rules, age, and eligibility requirements regarding dependents listed as follows:

• When you elect family coverage for medical, vision, dental, and life insurance coverage, your eligible legal dependent child(ren) are covered up to age 26.

• Unmarried, disabled dependent children over age 26 may be eligible for continuous coverage when certification has been approved.

After the enrollment deadline, benefit elections cannot be changed or canceled until the next enrollment period, unless a qualifying event occurs. All enrollment elections must be made PRIOR to the effective date.

Enrollment

Benefits Guide 6

2020

ELIGIBILITYIn order to enroll in or maintain eligibility for medical benefits, you must be considered a full-time employee (working continuously 30 hours or more per week). Benefits will begin according to the following time schedule and eligibility requirements:

• Medical, Dental, Vision, Life, Basic AD&D, Short-Term Disability, Hospital Indemnity Plan, Critical Illness, Accident Coverage, and Health Savings Account: Benefits begin on the first of the month following 60 days of continuous full-time employment. When you elect medical benefits, your eligible, legally dependent child(ren) are covered up to age 26.

• Long-Term Disability: You become eligible for Long-Term Disability coverage after you have completed 12 consecutive months of full-time employment. Employees are enrolled in the basic benefit, and you may elect to buy-up an additional, supplemental benefit on January 1 or July 1, whichever date comes first after eligibility requirements are satisfied. The premium for the basic benefit is paid entirely by your employer. The Long-Term Disability Buy-Up supplemental benefit is paid completely by the employee.

• 401(k) Plan: You are eligible to participate in the 401(k) plan the first of the month following 60 days of continuous full-time employment. Part-time employees are eligible to participate only after accruing 1,000 hours in a previous 12-month period. In addition, you must be at least 21 years old before you are eligible to participate in the 401(k) plan.

Employees hired after the plan year begins who have met eligibility requirements can select their coverage choices for the remainder of that plan year.

Eligibility

Benefits Guide 7

2020MedicalStockton 12 Honda is pleased to offer an HSA plan that can help you earn, save, and grow your health savings. Partnering with MotivHealth will help you understand how to become empowered consumers of health care by maximizing your health benefits.

Medical

Medical Benefits Motiv HealthConditions & LimitsConditions & Limits In-NetworkIn-Network Out-of-NetworkOut-of-Network

Calendar Year Deductible Individual $2,000* Individual $4,000

Family $4,000* Family $8,000

If more than one person in a Family is covered under the policy, the individual Deductible does NOT apply. Instead the Family Deductible applies and no medical expenses will be paid by the plan (other than covered preventative care) until the Family Deductible is met.

Out-of-Pocket Maximum Individual $6,350**

Family $12,700** Family $25,400

If any family member reaches the Individual out-of-pocket maximum then the out-of-pocket maximum is satisfied for that family member. If any combination of family members reach the Family out-of-pocket maximum then the out-of-pocket maximum is satisfied for the entire family.

Office Services

Routine Preventive Care Covered 100% No Coverage

Office Visits – Primary Care

80% AD60% AD

Office Visits – Specialists

Office Visits – Chiropractic

Outpatient Surgery

MD LIVE

Minor Lab/X-Ray (In Office)

Major Lab/X-Ray

Urgent Care

Ambulance

Emergency Room Use Participating Benefit

Hospital Services (Hospital, Physician, Surgeon, & Anestesiologist)

Inpatient Services

80% AD 60%Outpatient Services

Maternity

Mental Health

Inpatient Services

80% AD 60%Outpatient Services

Office Visits

Prescription Drugs (Retail)

Generic

80% AD 60% ADPreferred

Non-Preferred

Specialty

* Deductible is Not Embedded-Family Deductible must be met for individual coverage ** Out-of-Pocket Maximum is embedded-Individuals only need to meet Individual OOP Max. AD: After Deductible

Monthly Contributions Motiv Health

EmployeeEmployee EmployerEmployer

Employee $94 $213.26

Employee & Spouse $452 $285.28

Employee & Children $261 $260.20

Employee & Family $593 $420.67

Benefits Guide 8

2020M

edicalMEDICAL COVERAGEThe Stockton 12 Honda medical benefit plan covers both in-network and out-of-network services as provided by medical doctors, specialists, hospitals, lab, and x-ray. Before you need care, be sure to find a doctor, provider, or place of service that is in-network to maximize your medical benefit.

Visit: motivhealth.com to find a medical provider

MD LIVEEver find yourself or your child sick in the middle of the night or while traveling away from home? Is your regular doctor unavailable? Stockton 12 Honda’s medical insurance makes it easy, convenient, and cost-effective for you to contact a doctor by phone or virtual visit. All you need is online access to your insurance account (motivhealth.com) and you’re virtually there! Set up your account at www.mdlive.com, find a doctor, make an appointment, receive your service, and make your payment. Save time and money. It’s that simple!

WALKING PROGRAMEnrolled employees, and any enrolled spouses, can earn wellness incentives just for walking 8,000 steps a day. Walk 8,000 steps a day, 20 days in a month and you can earn $20 per month ($40 if your spouse is enrolled). Earn up to $250 per year on a Single plan and $500 on a Family plan. MotivHealth will reward you with an extra $10 in the month of December. If you already have a fitness device, call MotivHealth to find out if it’s one they can support. If you don’t have a device, MotivHealth will give you one for free. MotivHealth provides options to grow the balance in your HSA account, which you can use to pay for qualified health services or save for future health care costs.

PRESCRIPTIONSAn important message regarding your prescription drug benefits: Be aware there may be changes to insurance carriers’ drug lists, such as prescriptions changing from preferred to generic. Some prescriptions may be available over-the-counter and no longer covered by insurance.

Benefits Guide 9

2020

Stockton12 Honda makes a Health Savings Account available to you which is administered by Health Equity.

A Health Savings Account (HSA) is a tax advantaged account that can be used to pay eligible medical expenses not covered by an insurance plan, including deductibles and coinsurance. You can fund your HSA with pretax dollars.

Who is eligible for a Health Savings Account? Anyone who satisfies all of the following: • Covered by a Qualified High Deductible Health Plan (QHDHP); • Cannot be covered under another medical plan; • Not enrolled in Medicare A or Medicare B benefits; and, • Not eligible to be claimed on another person’s tax return.

What is a deductible? It is a set dollar amount, determined by your plan that you must pay out-of-pocket or from your HSA account before insurance coverage for medical expenses can begin.

What is the difference between an HSA and Flexible Spending Account (FSA)? • An HSA can rollover unused funds from year to year indefinitely. • FSA contribution limits are lower than for HSAs. In addition, not all FSAs have a rollover feature, and those

that do can only rollover a limited amount.

When do I use my HSA? After visiting a physician, facility, or pharmacy, request that they submit your claim to your medical carrier for payment. You should make sure that your provider has your most up-to-date insurance information. Once the claim has been processed, any out-of-pocket expenses will be billed. At this time, you may choose the following options: • Use your HSA debit card to pay for any out-of-pocket expenses; • You may choose to write a personal check, receiving reimbursement at a later date; • You can choose to save your HSA dollars for future medical expenses.

You should always ask that your claim be submitted to the health plan before you seek reimbursement from your HSA. This procedure will ensure that provided discounts are applied. Also, remember to keep all medical receipts and Explanation of Benefits (EOBs) to support your personal tax record. You should keep these records for at least four years.

How much can be contributed to an HSA? As noted by federal law, the annual contribution limits are:

Type of Coverage 2020 MAXIMUM ANNUAL CONTRIBUTION

Individual $3,550

Employee + Spouse, Employee + 1 Child, and Family $7,100

Individuals age 55 or older may be eligible to make a catch-up contribution of $1,000 in 2020.

HSA—Health Savings AccountH

ealth Savings Account

Benefits Guide 10

2020Voluntary Vision Stockton 12 Honda offers a reimbursement vision plan administered by Matrix Healthcare. Members may use ANY vision provider and be reimbursed at the maximum benefit level. After receiving vision care services, submit your itemized receipt for prompt reimbursement using one of these methods: scan and email, fax, or regular mail.

Vision Benefits Matrix Healthcare

Eyeglass Exam with Dilation as Necessary

Plan pays up to $50Contact Exam

Standard Contact Fitting

Lenses

Single Vision/Bifocal/TrifocalPlan pays up to $75

Standard Progressive Lens

Lens OptionsLens Options

Standard Polycarbonate (Adults & Children under 19)

Plan pays a combined benefit up to $100

Scratch Resistant Coating

UV Treatment

Tint (Solid and Gradient)

Anti-Reflective Coating

FramesFrames

Allowance Based on Retail Pricing Plan pays up to $150

Contacts (In Lieu of Glasses Benefit)Contacts (In Lieu of Glasses Benefit)

Disposable / Conventional Plan pays up to $150

FrequencyFrequency

Exams/Lenses/Contacts/Frames Once Every Calendar Year

Monthly Contribution

EmployeeEmployee Employee & SpouseEmployee & Spouse Employee & 1 ChildEmployee & 1 Child FamilyFamily

Monthly Premium $5.11 $10.70 $10.20 $17.12

 

Vision

Benefits Guide 11

2020D

ental

DentalStockton 12 Honda offers two preferred provider dental benefit plans administered by CIGNA. Both plans allow you to choose your provider; however, you will have less out-of-pocket expenses when choosing an in-network provider.

Both plans include preventive services such as cleanings, x-rays, and exams; basic or restorative services including extractions, fillings, endodontic, and periodontal care; and major dental services involving crowns, bridges, and dentures. There is a $1,250 calendar year maximum per member for these services. The only benefit difference between these plans is the children’s orthodontia benefit included in Plan 1.

Dental Benefit Highlights

Plan 1 In- and Out-of-Network

Plan 2In- and Out-of-Network

Deductible $50 Per Individual/$150 Per Family $50 Per Individual/$150 Per Family

Annual Maximum $1,250 Per Person $1,250 Per Person

Type A* Preventive:Type A* Preventive: Includes Oral Examinations, Prophylaxis (Cleanings), Topical Fluoride Applications, X-Rays, Space Maintainers, and Sealants.

Insurance Pays: 100% In-Network 80% Out-of-Network

Insurance Pays: 100% In-Network 80% Out-of-Network

Type B* Basic:Type B* Basic: Includes Fillings, Simple Extractions, Bridge Repair, Endodontics, Oral Surgery, Periodontics, and General Anesthesia.

80% After Deductible 80% After Deductible

Type C* Major:Type C* Major: Includes Bridges, Dentures, Inlays, Onlays, and Crowns. 50% After Deductible 50% After Deductible

Type D Orthodontia:Type D Orthodontia: Children to Age 19 50% to $1,250 Lifetime Maximum Not Covered

* Subject to the negotiated fee that participating dentists have agreed to accept as payment in full. The term “In-Network Benefits” refers to benefits when services are rendered by a participating contracted provider. “Out-of-Network Benefits” refers to benefits when services are rendered by a non-participating provider. Please refer to your benefits booklet for a complete list and description of covered services.

PREFERRED PROVIDER NETWORK While you may use any dentist of your choice, the plan provides certain advantages when you use a participating dentist. Participating dentists file your claim forms and accept payment directly from the insurance carrier. Participating dentists agree not to charge the difference between their fee and the contracted allowed amount, with the exception of applicable deductibles and coinsurances.

Monthly Contribution

Dental Monthly RatesDental Monthly Rates EmployeeEmployee Employee & SpouseEmployee & Spouse Employee & 1 ChildEmployee & 1 Child FamilyFamily

Plan 1:Plan 1: With Child Orthodontia Benefit

Employee Cost: NA N/A $50 $79

Stockton Cost: NA N/A $22 $31

Total Rate: NA N/A $72 $110

Plan 2Plan 2: No Orthodontia Benefit

Employee Cost: $10 $35 $25 $48

Stockton Cost: $20 $17 $27 $25

Total Rate: $30 $52 $52 $73

 

Benefits Guide 12

2020Life/Accidental Death & DismembermentStockton 12 Honda provides Basic Life, Dependent Life, and Accidental Death & Dismemberment (AD&D) insurance at no cost to you through Mutual of Omaha. A voluntary supplemental life plan is also available.

A. Basic Life and AD&D Insurance—100% Paid by Stockton 12 Honda. Provides a death benefit payable to the insured employee’s named beneficiary if death occurs while you, the employee, are insured under this plan. All full-time eligible employees are covered with $25,000 of term life insurance. Along with your basic life insurance benefit, Stockton 12 Honda also provides an Accidental Death and Dismemberment policy that matches your basic coverage if you die accidentally or are dismembered. Stockton 12 Honda provides $5,000 of coverage for your spouse and for each child up to age 26. Coverage will end at termination of employment.

B. Voluntary Term Employee Life Insurance—100% Employee Paid. This insurance is not sponsored or paid for by the employer, but it is available at affordable group rates. Voluntary Group Life Insurance is available for five times your annual salary in increments of $10,000 up to a maximum of $1,000,000. If you enroll when you are first eligible (the first day of the month after 60 days of full-time employment), you may purchase up to five times your salary or $350,000 of insurance (whichever is less) without medical underwriting. At annual enrollment, you have the opportunity to apply for additional voluntary life insurance. You, your spouse, and your dependent(s) are NOT covered until your application(s) have been approved by the life insurance carrier. If you terminate employment, coverage will end and you will have the option of converting your voluntary life policy to an individual policy.*

C. Voluntary Term Spouse Life Insurance—100% Employee Paid. You may also purchase additional life insurance for your spouse and children. Spouse coverage is available in increments of $5,000 up to $250,000, not to exceed 50% of the employee’s coverage. When first eligible, you can select up to $50,000 without medical underwriting. If you terminate employment, coverage will end and you will have the option of converting your voluntary life policy to an individual policy.*

Voluntary Life Insurance — Employee and Spouse

Age TableAge Table Rate Factor Per $1,000 of CoverageRate Factor Per $1,000 of Coverage

Under 30 $0.055

30–34 $0.064

35–39 $0.092

40–44 $0.147

45–49 $0.258

50–54 $0.387

55–59 $0.654

60–64 $0.737

65–69 $1.382

70–74 $2.211

75+ $7.278

*All life insurance benefits reduce to 65% at age 65, 50% at age 70, and 35% at age 75. ** Benefits require the employee to be actively at work on his/her first eligibility date.

Use Applicant’s Age for Calculations

1. Amount of coverage I want: $_________

÷ 1,000

2. Divide the amount written in line 1 by $1,000: = $_________

3. Locate your age from the age table and multiply the amount of coverage rate factor by the amount written on line 2: x $_________

The answer is your monthly cost of insurance: $_________

Example: $100,000 of coverage divided by $1,000 = $100 X $0.147 (age 40) = $14.70

Life / AD&

D

Benefits Guide 13

2020Life / AD

&D

D. Voluntary Term Dependent Life Insurance—100% Employee Paid. Dependent coverage is available from live birth for $5,000 or $10,000. When first eligible, this covers all eligible children without medical underwriting. If you terminate employment, coverage will end, and you will have the option of converting your voluntary life policy to an individual policy. Contact your Payroll Administrator for more information.

Voluntary Dependent Life Insurance

Insurance AmountInsurance Amount Monthly Cost of InsuranceMonthly Cost of Insurance

$5,000 $0.92

$10,000 $1.84

Use Applicant’s Age for Calculations

1. The monthly rate is: $_________

(Rate is regardless of the number of children.)

GETTING THE MOST OUT OF YOUR BENEFITS:

How Much Life Insurance Do You Really Need?There is no perfect way to decide exactly how much life insurance you will need—this amount is different for everyone and changes according to each person’s family situation and financial goals. However, the following formula can give you an estimate of your needs:

Short-Term Needs (expenses, outstanding debts, emergency cash reserve, etc.) + Long-Term Debts (mortgage balance, children’s college tuition, family maintenance expenses, etc.) - Resources (your current savings and salary) = Your Life Insurance Needs

If your life insurance needs exceed your current budget, go through the formula again and make adjustments to your original figures. The following questions can help you to decide how much is right for you:

• How many people depend on your income to sustain their lifestyles? • How much money does your spouse make? • How much debt would need to be repaid in order for your family to get by without you?

The more important your income is to your family’s lifestyle, the more life insurance coverage you should consider electing. Being aware of your financial goals is the most important thing you can do when deciding how much life insurance to select.

Benefits Guide 14

2020DisabilityStockton 12 Honda provides Long-Term Disability coverage at no cost to you through Mutual of Omaha and a Voluntary Long-Term Disability Buy-Up option. Voluntary Short-Term Disability insurance is also available to full-time eligible employees.

A. Long-Term Disability—100% Paid by Stockton 12 Honda. Long-Term Disability (LTD) coverage replaces a percentage of your income on a monthly basis in the event you are unable to work due to a non-work-related accident or illness. Stockton 12 Honda pays the entire premium of LTD insurance. The coverage provides income replacement up to 50% of annual compensation up to a monthly benefit of $5,000 (as based on W-2 earnings) for up to two years. There is a 90-day waiting period after the disabling event. At this time, if LTD is approved by the carrier, benefits will be provided. Employment with Stockton 12 Honda will cease at the time LTD is approved. You are eligible for coverage on January 1st or July 1st following 12 months of full-time employment.

B. Voluntary Long-Term Disability—100% Employee Paid. You have the option to buy-up your Long-Term Disability (LTD) based on 60% of your W-2 earnings up to a maximum monthly benefit of $10,000. You are eligible for coverage on January 1st or July 1st following 12 months of full-time employment.

Voluntary Long-Term Disability

Insurance BenefitInsurance Benefit Monthly Cost of InsuranceMonthly Cost of Insurance

60% of your W-2 earnings Monthly income ÷ 100 x $0.184 = Your Premium

C. Voluntary Short-Term Disability—100% Employee Paid. Short-Term Disability (STD) is optional coverage for full-time eligible employees for non-work-related illness and non-work-related accidents. While this insurance is voluntary, it is available at group rates and paid by you on a post-tax basis. Premiums are based on the weekly benefit amount of coverage you elect. If a disability should occur, your benefit is based on the coverage you elected, up to 40% or 60% of your salary to a weekly maximum of $1,500. Coverage is available on the first of the month after 60 days of full-time employment.

Voluntary Short-Term Disability*

Age TableAge Table Rate Factor Per $1,000 of CoverageRate Factor Per $1,000 of Coverage

Under 40 $0.0177

40–44 $0.0205

45–49 $0.0245

50–54 $0.0314

55–59 $0.0368

60–64 $0.0443

65–69 $0.0477

70+ $0.0784

*Benefits require the employee to be actively at work on his/her first eligibility date.

1. Indicate your weekly earnings: $_________

2. Check your desired benefit amount: 40% 60%

3. Multiply your weekly earnings by your benefit amount: $_________

4. If the amount above is greater than $1,500, write $1,500. Otherwise, please write the amount from line 3: $_________

5. Multiply the amount on Line 4 by your age rate factor.

The answer is your monthly cost of insurance: $_________

Example: Weekly earnings = $1,000. Desired benefit = 40% x $1,000 = $400 x $0.0205 (age 40) = $8.20/month

Note: The maximum benefit period for a short-term disability is 13 weeks, including a seven-day waiting period for sickness or injury. The duration of an approved claim is determined by the insurance carrier and may be approved for less than the 13-week maximum. For example, the benefit resulting from a maternity disability is generally approved for a four-week duration. Benefits are subject to applicable pre-existing condition limitations.

Disability

Benefits Guide 15

2020Aflac H

ospital Indemnity Plan

Aflac Hospital Indemnity PlanStockton 12 Honda makes this hospital indemnity plan available to you, which is administered by Aflac. This plan provides a cash benefit that helps pay for some of the costs—medical and nonmedical—associated with a covered hospital stay due to a sickness or accidental injury.

Aflac Hospital Indemnity Coverage

Hospital Admission Benefit (once per covered sickness or accident per calendar year for each insured)

$1,000 per confinement

Hospital Confinement (maximum of 31 days per confinement for each covered sickness or accident for each insured)

$150 per day

Health Screening Benefit $50/Year/Insured

Monthly Premiums

Employee $20.36

Employee + Spouse $40.74

Employee + Child(ren) $32.46

Employee + Family $52.84

Please see product brochure for full benefit descriptions and limitations/exclusions.

Benefits Guide 16

2020Aflac Critical IllnessStockton 12 Honda makes critical illness coverage available to you, which is administered by Aflac.

Critical Illness Coverage Benefits

Heart attack – Employee / dependents $20,000 / $10,000

Coronary artery by-pass surgery – Employee / dependents $5,000 / $2,500

Stroke – Employee / dependents $20,000 / $10,000

Major organ transplant – Employee / dependents $20,000 / $10,000

End stage renal failure – Employee / dependents $20,000 / $10,000

Cancer-internal or invasive – Employee / dependents $20,000 / $10,000

Carcinoma in situ (25%) – Employee / dependents $5,000 / $2,500

Reoccurrence benefit

Pays 100% of previously paid base policy benefit (occurrences must be separated by 6 months. An insured must always be in complete remission and treatment free

to be eligible for cancer reoccurrence benefit.)

Additional occurrence (different condition) Pays 100% of previously paid base policy benefit (occurrences must be separated by 6 months)

Skin cancer $250 per calendar year

Spouse coverage Up to 100% of insured

Dependent coverage 50% of insured (no charge for this coverage)

Guaranteed issue amounts $30,000 / $30,000 for 3 years (requires active selection online enrollment)

Participation Waived (requires active selection online enrollment

Pre-existing condition exclusion None

Wellness $50 annually for insured and spouse for approved wellness exam

Additional covered conditions

$20,000 / $10,000 for advanced Parkinson’s, severe burns, benign brain tumor, coma, paralysis and complete loss

of hearing, sight, or speech. $5,000 / $2,500 for advanced Alzheimer’s.

Monthly Premiums

AgeAge EE/EE+CHEE/EE+CH EE+SP/EE+FEE+SP/EE+F

18–24 $5.98 $9.73

25–29 $7.88 $12.58

30–34 $9.23 $14.61

35–39 $12.21 $19.07

40–44 $15.46 $23.95

45–49 $19.82 $30.49

50–54 $35.87 $54.56

55–59 $33.46 $50.95

60–64 $57.78 $87.43

65+ $124.61 $187.68

Aflac Critical Illness

Please see product brochure for full benefit descriptions and limitations/exclusions.

Benefits Guide 17

2020Aflac Accident CoverageStockton 12 Honda makes accident coverage available to you, which is administered by Aflac.

24-Hour Accident Coverage

Accident death - Employee / spouse / child $50,000 / $25,000 / $10,000

Common carrier - Employee / spouse / child $100,000 / $50,000 / $20,000

Dismemberment - Employee / spouse / child Up to $12,500 / $5,000 / $2,500

Dislocations and fractures Up to $4,000

Emergency room services $100

Urgent care $100

Physician treatment $50

X-rays $25

Ambulance – Regular ambulance / air ambulance $200 / $600

Hospital Confinement– Initial hospital confinement – Hospital confinement – Intensive care

$625

$150 per day $200 per day

Lacerations $25–$400

Burns – Less than 10% of the body surface – More than 10% of the body surface

$75–$750

$150–$15,000

Appliance $20–$200

Accident follow-up treatment $25 per day (6 per accident)

Physical therapy $25 per day (10 per accident)

Rehabilitation $50 per day (up to 31 days per confinement)

Transportation $100-$250 per trip (up to 3X per accident)

Family lodging benefit $100 per night (for up to 30 days)

Wellness / Outpatient Physician $25 (per covered family member per year for any wellness screening )

Monthly Premiums

Employee $10.00

Employee + Spouse $16.02

Employee + Child(ren) $18.24

Employee + Family $24.28

Aflac Accident Coverage

Please see product brochure for full benefit descriptions and limitations/exclusions.

Benefits Guide 18

2020Employee Assistance ProgramAt Stockton 12 Honda, we consider our employees to be our most valuable asset. This is one reason why we provide you and your family access to an Employee Assistance Program, administered by Mutual of Omaha.

The Employee Assistance Program provides you with confidential and professional resources designed to help individuals cope with a variety of personal and job-related issues. Being healthy goes beyond physical exercise and eating right. Emotional wellness, strong personal relationships, and positive attitudes are important building blocks of health that need to be maintained. Yet, there are times when we may feel unable to resolve the decisions, personal problems, family issues, or job difficulties we face. In those times, it’s a relief to have somewhere to turn.

You have access to an Employee Assistance Program (EAP) when you need to talk with someone in strictest confidence regarding a family or work-related problem. Call the EAP if you or a member of your family has an issue with drugs or substance abuse, sexual harassment, or even money issues. Each member of your family is eligible to receive unlimited telephonic counseling sessions and three face-to-face sessions each year. Simply call 800-316-2796. These services are easily accessible, confidential, and available 24 hours a day at no out-of-pocket cost to you or your family members. All discussions between you and the EAP counselor are completely confidential. Personal information is never shared with anyone, including Stockton 12 Honda employees, at any time without your direct knowledge and approval. (Exceptions are made only in cases governed by law to protect individuals threatened by violence.)

Call 1-800-316-2796 to reach an Employee Assistance Counselor.

GETTING THE MOST OUT OF YOUR BENEFITS:

EAP Services are provided for a wide range of issues such as:

• Abuse• Depression• Marriage• Aging

• Finances• Sexual Harassment• Alcohol/Drugs• Grief

• Stress/Anxiety• Child/Elder Care• Legal Needs• Workplace issues

Employee Assistance Program

Benefits Guide 19

2020401(k)

401(k) Prepare for your future! The Larry H. Miller Associates Retirement Plan provides you with the opportunity to systematically save for your retirement goals, with company matching on your 401(k) contributions. The plan is administered by Merrill Lynch.

Employees are eligible to participate in the 401(k) Plan the first of the month following 60 days of full-time employment. Part-time employees are eligible to participate only after accruing 1,000 hours in a previous 12-month period. In addition, you must be at least 21 years old before you are eligible to participate in the 401(k) plan. All newly eligible participants will be automatically enrolled with a 1% minimum salary contribution into the Target Date GoalManager Fund.

Participants are encouraged to contribute more in order to receive the maximum matching contribution (50 cents for every dollar up to the first 6% of an employee’s income) from Stockton 12 Honda and to achieve your retirement goals. Once enrolled, a participant may change his/her contribution on a monthly basis.

Eligible participants always have the option to “opt out” of automatic enrollment prior to their effective date.

All participant account information (including balances, contribution amounts, investments, changes, and loans) can be located at benefits.ml.com

Saving through your 401(k) retirement plan is a smart way to invest your money for the long term. The Larry H. Miller Associates Retirement Plan offers you a Traditional 401(k) and Roth 401(k) retirement plan. These options provide you an opportunity to systematically save for your retirement goals, with company matching on your 401(k) contributions.

• The Traditional 401(k) plan is a tax-deferred plan. That means, your contributions, along with the company’s matching contribution and investment earnings, grow “tax-deferred” in your Traditional 401(k) account until the money is withdrawn; then it is taxed.

• The Roth 401(k) plan allows you to set aside money for retirement. However, you pay taxes on those contributions now instead of when you withdraw the money at retirement. Qualified Roth 401(k) withdrawals during retirement are then “tax-free.” The company’s matching contribution is deposited into your Traditional 401(k) account. A qualified Roth 401(k) withdrawal requires a participant to wait a minimum of five years from their first contribution and after attaining age 59½. You might seek the advice of a qualified tax professional when planning for your retirement. Ultimately, each individual will determine which option best fits his or her individual circumstances.

CONTRIBUTING TO YOUR ACCOUNT

You can authorize a payroll deduction between 1% and 50% of your eligible compensation or up to the IRS limit. You may change the percentage of your contribution monthly. Contributions, both yours and the company’s, are subject to certain limitations under federal tax law, including an annual maximum limit on your contributions.

• Catch-Up Contribution: If you are age 50 or older during the plan year and make the maximum allowable pretax contribution to your plan, you are entitled to make an additional “catch-up contribution” to help make up for smaller contributions made earlier in your career. The maximum catch-up contribution is $6,000.

• Saver’s Tax Credit: If your household income is less than $50,000, you may be eligible to receive a tax credit of up to 50% on the first $3,000 you contribute to the plan. The amount of the credit depends on several factors, including the amount you contribute to the plan, your adjusted gross income for the year, and your tax filing status. If you qualify, this credit is allowed in addition to the other tax benefits you may receive by contributing to the plan. For more information or to see if you qualify for this credit, consult a tax advisor.

Benefits Guide 20

2020

INVESTMENT OPTIONS

The Larry H. Miller Associates Retirement Plan provides you the opportunity to choose where you want to invest your contributions. As a participant, you may elect a “self-directed” method where you select your personal portfolio. Subsequently, you are responsible to manage and/or rebalance those funds. You may also choose a “pre-defined” option from the GoalManager model or the Target Date GoalManager model.

GoalManager is a predefined, diversified model of funds. Each of the five GoalManager model portfolios invest in a predetermined allocation ranging from conservative to aggressive using a diversified array of mutual funds. Once you have determined your investment style and the level of risk you are comfortable with, simply select the GoalManager portfolio model that you believe may help you achieve your financial goals. The portfolios are rebalanced back to their target allocations (percentages) on a semi-annual basis. You have the choice to modify your selection in any one of the portfolios at any time using online tools or by calling the customer service center.

Target Date GoalManager models provide a combination of investment choices that balance stability and growth and adjust as you prepare for and approach retirement age. Target Date GoalManager models allow you to select a time period when you believe you will be retiring. Each target date portfolio invests in a predetermined allocation based upon the amount of time you have before you actually retire. While the target date allocations are comprised from GoalManager models, your investments will automatically rebalance over time to a more conservative asset allocation as you get closer to retirement age.

Remember, you always determine your contribution and where your money is invested.

MANAGING YOUR ACCOUNT

As a plan participant, you are always in charge of your investment direction. You can access your account by contacting your Plan Administrator.

• Loans: You will be permitted to borrow against your plan account balance if you experience an extreme financial hardship. You can borrow 50% of your vested balance. There is a non-refundable loan application fee of $50. Your loan is paid back through payroll deduction, and you can choose the length of the loan from one year to five years.

• Hardship Withdrawals: While the plan is intended to serve you primarily as a retirement saving mechanism, you can withdraw funds prior to your separation from service if you experience an extreme financial hardship. You must have a loan before you can request a hardship withdrawal. You are permitted to borrow for only one of the following reasons: purchase a primary residence, preventing eviction from or foreclosure on your home, college tuition for yourself or immediate family member, immediate family funeral expenses, and medical expenses not covered by insurance. Financial hardships, as defined by the government, are for the same purposes as listed for a loan. An IRS tax penalty will apply for hardship withdrawals.

• Distributions: You may receive a distribution on your account balance following your separation from service due to retirement, death, or termination of employment. An IRS tax penalty will apply for early distributions.

401(k)

Benefits Guide 21

2020

2020 Benefit ContactsMEDICAL MotivHealthGroup ID: STOCKT1SN(844) 234-4472motivhealth.com

VIRTUAL VISITS(800) 400-MDLIVE (6354)mdlive.com

DENTALCIGNA Group ID: 3317312(800) 244-6224mycigna.com

SUPPLEMENTAL VISIONMatrix HealthcareGroup ID: LHM01012019(435) 563-0613matrixhc.com/forms

ACCIDENT, CRITICAL ILLNESS, AND HOSPITALAFLACGroup ID: 24620(800) 433-3036aflacgroupinsurance.com

HEALTH SAVINGS ACCOUNTHealth Equity(866) 346-5800healthequity.com

LIFE AND DISABILITY Mutual of OmahaGroup ID: G000283ALife Claims: (800) 775-8805 Disability Claims: (800) 877-5176mutualofomaha.com 401(K) PLAN Merrill Lynch Group ID: 201430 Participant Service Center: (800) 228-4015 To Reach an Advisor: (800) 777-7576 benefits.ml.com

COLONIAL HOSPITAL INDEMNITY PLANGroup ID: E5321963(855) 455-4469coloniallife.com

EMPLOYEE ASSISTANCE PROGRAMMutual of Omaha(800) 316-2796 mutualofomaha.com/eap MY EMPLOYEE BENEFITSEmployee Self Servicemy.adp.com BENEFITS CONSULTANT Moreton & Co. (801) 531-1234 moreton.com

Do you have questions? Visit my.adp.com or lhm.com/benefits.

my.adp.com • lhm.com/benefits

8.08.19