Benefits Summaries

Non-Bargainig Employees

The program of Employee Benefits is applicable to full time employees, and part time employees regularly scheduled to work at least 20 hours per week. Medical, dental and life insurance benefits are effective on the first day of work and end the last day of the month in which employment ends. Short and Long Term Disability protection are available after 1 year of service. Participation in the 401(k) Plan and Retirement Account begins on the first day of work.

1.  Medical and Dental Insurance

Office visits are provided for a $15 co-payment from participating providers.

Prescriptions for up to a 34-day supply are provided with a $10 co-payment for generic, formulary drugs; $20 co-payment for formulary brand name; $40 co-payment for non-formulary drugs, or if a formulary brand drug is dispensed when a generic drug is available. For maintenance drugs, a 90-day mail order supply is available for a $20 co-payment for generic; $40 for brand name formulary; and $80 for non-formulary drugs.

Inpatient hospital services are paid 80%, with a maximum out of pocket $1,500 individual/$3,000 family expense.

Routine eye examinations are provided once per 12-month period from participating providers for a $10 co-payment, and glasses are available for a $20 co-payment once per 24 month period.

Up to 12 chiropractic, naturopath, or acupuncture visits (combined) per year can be obtained for a $15 co-pay per visit from any licensed practitioner.

A Health Savings Account with a high deductible health plan is also available for employees who seek to control their health care costs and save money for medical expenses during retirement. There is no monthly cost share for you to make, and ERMS will make a contribution to your Health Savings Account. The same dental insurance described above is included.

With proof of other insurance, you may waive medical and medical/dental insurance and receive up to $250/mo. in additional taxable wages.

Medical and Dental Plan Comparison - PDF.

2.  Life Insurance

The Company provides life insurance coverage for each management employee equal to 2 times their annual base salary, up to $500,000. Accidental Death and Dismemberment (“AD & D”) insurance is also provided; if death occurs due to an accident, an additional 2 times annual base pay is paid. AD&D also pays a benefit if a hand, foot, or eyesight is lost. Additional amounts of life insurance may be purchased at group rates; new employees do not have to complete a medical questionnaire. Business travel insurance is also provided.

3.  Short Term Disability (STD)

Employees are eligible for 40 hours of paid sick leave per year. After 1 year of service, if a management employee must be absent due to non-work related illness or injury, up to 26 weeks at 66 2/3% of base pay is provided.

4.  Long Term Disability

This plan provides 60% of base pay if a disability is so severe as to last longer than 6 months. In cases of total disability, the plan may pay until the employee is eligible to draw retirement benefits. Employees must have at least 1 year of service at the time disability begins in order to qualify for this benefit. The Company pays for the entire cost of the plan.

5.  Retirement Program

401(k) Plan - You may contribute up to $16,500 in 2010 on a pre-tax basis. A portion of an employee’s contributions is matched by the Company (100% of first 5% contributed). Employees age 50 and over may defer up to an additional $5,500 under a “catch-up” program. (There is no Company match on the “catch-up” program.) You direct the investment of your savings and can choose from 14 investment options, including a self-directed account. Also, the plan allows participants to borrow from their accounts. There is no monthly participant fee to you - the Company pays that cost. Effective date of hire, employees are automatically enrolled with a 5% deferral unless they opt out.

Retirement Account – You receive a year-end contribution from the Company of 3% of your pay (including premium pay and profit participation), and are vested for this benefit after 3 years of service. As with the 401(k) Plan, you direct the investment of your account, choosing from the same investment options as the 401(k) Plan. (Effective for new employees hired after 8/31/05; employees hired before 9/1/05 participate in Pension Plan.; bargaining employees who promote to management retain bargaining unit pension benefits for bargaining unit service and receive OSM Pension Plan benefits for management service.)

6.  Vacation

Paid vacation can first be taken in the calendar year following the year of hire and is a pro-rata portion of 2 weeks, depending on how long employed during the first year. Thereafter, 2 weeks are available at the first of each year. You move to 3 weeks per year in the year in which your 6th anniversary occurs; to 4 weeks the year in which your 10th anniversary occurs; and to 5 weeks the year your 25th anniversary occurs.

7.  Holidays

10 holidays per year are observed, as scheduled by the Vice President/General Manager. The holidays normally observed are New Year’s Day, Good Friday, Memorial Day, July 4, Labor Day, Thanksgiving Day, the day after Thanksgiving, Christmas Eve, Christmas Day, and New Year’s Eve.

8.  Educational Assistance

The Company encourages its employees to seek additional training and education by reimbursing up to 100% of tuition, fees and books for classes taken at accredited schools and colleges. The Company must agree that such study will help the employee in his or her present position, or in some other position at the Company that the employee might hold in the future.

9.  Employee Assistance Program

Employees and family members in need of personal counseling or assistance receive up to 5 visits per incident. It is administered by an outside professional firm. All services provided are treated confidentially and the identity of clients is not revealed to the Company.

10.  Flexible Spending Accounts

These accounts let you use pre-tax money to pay for family medical, dental, and vision expenses not covered by insurance, e.g., co-payments and deductibles, up to $5,000 per year. They can also be used for child/eldercare expenses up to $5,000 per year. There is no monthly participant fee to you - the Company pays that cost.

11.  Long Term Care Insurance

This is custodial care for people who are unable to perform activities of daily living. You are able to purchase the insurance at group rates and are automatically eligible (for 30 days from hire) regardless of your health history.

This is a summary only. For more complete information, please refer to the Summary Plan Descriptions.

Bargainig Employees

The program of Employee Benefits is applicable to full time employees. Medical, dental and life insurance are effective on the first day at work and end the last day of employment. Sickness and Accident protection is available after 1 year of service, and Long Term Disability after 5 years of service. Participation in a Pension Plan begins on the first day of work. Eligibility for a 401(k) Thrift Plan, including a Company matching contribution, also begins on the first day of work.

1.  Health Care Insurance

Office visits are provided for a $15 co-payment from participating providers.

Prescriptions for up to a 34-day supply are provided with a $10 co-payment for generic, formulary drugs; $20 co-payment for formulary brand name; $40 co-payment for non-formulary drugs, or if a formulary brand drug is dispensed when a generic drug is available. For maintenance drugs, a 90-day mail order supply is available for a $20 co-payment for generic; $40 for brand name formulary; and $80 for non-formulary drugs.

Inpatient hospital services are paid 80%, with a maximum out of pocket $1,500 individual/$3,000 family expense.

Routine eye examinations are provided once per 12-month period from participating providers for a $10 co-payment, and glasses are available for a $20 co-payment once per 24 month period.

Up to 12 chiropractic, naturopath, or acupuncture visits (combined) per year can be obtained for a $15 co-pay per visit from any licensed practitioner.

Dental insurance is provided through ODS. Expenses for diagnostic and preventive services are paid at 100% when services are obtained from a Dental Preferred Provider (“PPO”), or 90% from a non-PPO dentist. Basic services are paid at 70% or 50% depending on whether a PPO is used, and major services are paid at 60% or 40% depending on whether a PPO is used. On basic and major services, an annual deductible of $25 per person (maximum $75 family) must be met if using PPOs; the deductible is $50 per person (maximum $150 family) if not using PPOs. The maximum benefit in a calendar year is $1,500 per person. Orthodontic services have a maximum lifetime benefit of $1,500, and are provided for dependent children up to age 19.

With proof of other insurance, you may waive medical and medical/dental insurance and receive up to $250/mo. in additional taxable wages.

Medical and Dental Plan Comparison - PDF.

2.  Life Insurance

The Company provides life insurance coverage for each employee equal to 2 times their annual base pay. Accidental Death and Dismemberment (“AD & D”) insurance is also provided; if death occurs due to an accident, an additional 2 times annual base pay is paid. AD&D also pays a benefit if a hand, foot, or eyesight is lost. Additional amounts of life insurance may be purchased at group rates; new employees do not have to complete a medical questionnaire.

3.  Sickness and Accident Coverage

After 1 year of service, an employee who must be absent due to non-work related illness or injury receives this benefit. The amount of weekly benefit is 40 times the employee’s average hourly wage, based upon the following: 80% for the first 30 calendar days, 70% for the second 30 calendar days, and 60% for the remainder of time not to exceed 6 consecutive months of disability (182 days from the date of disability). Benefits begin on the 8th day following illness or accident, or 1st day following overnight hospitalization.

4.  Long Term Disability

This plan provides 50% of base salary if a disability is so severe as to last longer than 6 months. In cases of total disability, the plan may pay until the employee is eligible to draw retirement benefits. Employees must have been at work for least 5 years of service at the time disability begins in order to qualify for this benefit. Not being an active employee for 90 calendar days due to layoff will require a new 5 year period.

5.  Retirement Programs

Pension Plan - This Plan provides a monthly annuity at retirement age, which is 65, or age 62 with at least 15 years of service. With 15 years of service, a reduced pension can begin as early as age 55. A pension benefit of $65 per month per year of service is provided, and an employee is fully vested for this benefit after 5 years of service. The Company pays all costs to maintain the plan.

401(k) Thrift Plan - Employees may defer up to $16,500 in 2010 on a pre-tax basis. A portion of employees' contributions is matched by the Company (50% of first 4% contributed), and the monies can earn on a tax deferred basis. Employees age 50 and over may defer up to an additional $5,500 under a “catch-up” program. (There is no Company match on the “catch-up” program.) Employees direct the investment of their savings and can choose from a wide variety of investment options. Also, the plan allows participants to borrow from their accounts in certain circumstances. Benefits can be distributed at termination of employment or retirement. Eligibility begins at date of hire, and employees are automatically enrolled into a managed retirement trust fund with a 2% deferral unless they opt out.

6.  Vacation

Paid vacation can first be taken in the calendar year following the year of hire and is a pro-rata portion of 2 weeks, depending on how long employed during the first year. Thereafter, 2 weeks are available at the first of each year. An employee is eligible for 3 weeks per year in the year in which the 7th anniversary occurs, becomes eligible for 4 weeks in the year in which the 17th anniversary occurs, and 5 weeks in the year in which the 30th anniversary occurs.

7.  Holidays

10 holidays per year are observed. The holidays are usually New Year’s Day, Good Friday, Memorial Day, July 4, Labor Day, Thanksgiving Day, the day after Thanksgiving, Christmas Eve, Christmas Day, and New Year’s Eve.

8.  Educational Assistance

The Company encourages its employees to seek additional training and education by reimbursing up to 100% of tuition, fees and books for classes taken at accredited schools and colleges. The Company must agree that such study will help the employee in his or her present position, or in some other position at the Company that the employee might hold in the future.

9.  Employee Assistance Program

Employees and family members in need of personal counseling or assistance can take advantage of this Program. It is administered by an outside professional firm. All services provided are treated confidentially and the identity of clients is not revealed to the Company.

10.  Flexible Spending Accounts

These accounts let you use pre-tax money to pay for family medical, dental, and vision expenses not covered by insurance, e.g., co-payments and deductibles, up to $5,000 per year. They can also be used for child/elder care expenses up to $5,000 per year. There is no monthly participant fee to you – the Company pays that cost.

11.  Long Term Care Insurance

This is custodial care for people who are unable to perform activities of daily living. You are able to purchase the insurance at group rates and are automatically eligible (for 30 days from hire) regardless of your health history.