1. Please note that Caterpillar policy does not allow
for All Employee Meetings or other meetings
to be recorded with smart phones or other devices unless
specific approvals have been sought
and granted prior to the beginning of the meeting.
In the event that the content of this presentation or any representations made by any person regarding the plans conflict with or are inconsistent with the provisions of the plan documents, the provisions of the plan documents are controlling. To the fullest extent permitted by law, Caterpillar Inc. reserves the right to amend, modify, suspend, replace or terminate any of its plans, policies or programs, in whole or in part, at any time and for any reason, by appropriate company action.

2. 2015 Total Rewards Update/Health & Welfare Benefits Enrollment Active Employees

3. Agenda 2015 Healthcare annual enrollment (November 17-28)
Healthcare coverage overview
2015 Healthcare premiums
Flexible Spending Accounts
Tools & resources for enrollment
Review Other Total Rewards Benefits

4. 2015 Healthcare Annual Enrollment

5. 2015 Healthcare Annual Enrollment
Caterpillar Benefits Center at Aon Hewitt will conduct the 2015 healthcare annual enrollment November 17 – 28
Employees will receive a postcard mailed to their home as a reminder of the enrollment window
Two ways to enroll:
Online
Single sign on link available through > Compensation & Benefits tab > Annual Enrollment Center
Link directly to Your Benefits Resources™
By phone Caterpillar Benefits Center
Annual enrollment begins November 17.
The annual enrollment website will be available beginning Nov 17. You can access the Annual Enrollment Center on Cat at Work now to review additional resources to help you prepare for annual enrollment
If you decline coverage or do not enroll by the deadline, you and your eligible dependents will not have medical (including vision and prescription drug benefits) or dental benefits coverage nor will you be able to participate in FSA, unless you experience a qualified status change during the year
You must enroll > 2013 enrollments will not be converted
Mention that don’t have to have kit to enroll.
Things to consider, additional resources regarding Flexible Spending Accounts.

6. 2015 Healthcare Coverage Overview

7. Healthcare Options - UnitedHealthcareNo
Changes
Same UnitedHealthcare options available in 2015 – Options B and C.
No changes to deductible, maximum out of pocket (MOOP), and coinsurance amounts for Same levels as 2014.

8. Prescription Drug Coverage - OptumRxNo
Changes
Mail order required for maintenance drugs
Remember to mention, that while there are no changes to deductible, copay, or co-insurance amounts there may be normal annual changes to the formulary and/or providers so make sure that you aware of what is covered under the benefit and the providers you are using are considered network.
** The prescription drug benefit for Options B and C requires a separate annual deductible, $50 per person for retail prescriptions only; there is no additional deductible required for mail-order drugs.
*** Mail order is mandatory for all maintenance drugs.

9. Vision Coverage - UnitedHealthcareNo
Changes
Bundled with medical plan option
$150 lump-sum vision benefits
The benefit is available on a rolling 24-month cycle
Can be used for routine vision services and supplies
Benefit maximum applies to age 18 and older
Frames are excluded from coverage
Bundled with medical plan option you elect.
Eligible every 24 months for new benefit
Consider using a Flexible Spending Account (FSA) for additional out-of-pocket vision expenses

10. 2015 Dental Coverage - CignaNo
Changes
$50/$100 annual deductible (except for preventive care)
$1,500 annual max benefit per covered person 18 and over
$1,500 orthodontia lifetime max (age 21 and under)
Preventive focused
Preventive (no deductible) 100%
Basic Dental %
Major Restorative %
Prosthodontic %
No changes to maximums or coinsurance levels for 2015
Enroll same dependents in medical (can’t opt out of dental).
Your medical premium includes the dental.
Not required to use network dentists to receive the highest level of reimbursement. If you choose a network dentist you may experience lower out of pocket expenses due to Cigna’s negotiated rates.

11. Spousal/Partner surcharge will remain $145
Healthcare Premiums
Spousal/Partner surcharge will remain $145
Premiums are staying relatively flat for 2015.
Spousal surcharge remains at $145 a month (33.46 weekly)
Premiums reflect ActiveHealth participation. If do not complete $75 employee, $75 spouse (weekly 7.30 or 34.62).
* Premiums are shown as a monthly amount and reflect completion of the health risk assessment with ActiveHealth.

12. Spousal Surcharge Applies
If your spouse/partner has access to group insurance coverage, declines and is enrolled in a Caterpillar option
Does not apply
Your spouse/partner isn’t employed
Your spouse/partner is not enrolled in a Caterpillar healthcare option
Your spouse/partner is employed but doesn’t have access to group insurance coverage
Your spouse/partner enrolls in other group insurance coverage and also enrolls in a Caterpillar option
Be sure that it’s clear when the surcharge applies and when it does not, it applies when….
It does not apply when….
You must update your spousal surcharge election if/when your circumstances changed.

13. Flexible Spending Accounts
There is a change to the healthcare flexible spending account rules next year so this is good time to review what flexible spending accounts are, advantages of participating, and the change.
Flexible Spending Accounts

14. Flexible Spending Account (FSA)
A benefit that allows you to set aside money on a pre-tax basis for eligible healthcare or dependent daycare expenses
Contributions are set aside via payroll deduction
Reduces your taxes while paying for services you would have to pay for anyway
To take advantage of the pre-tax savings you are required to enroll each year
Two types:
Healthcare spending account
Dependent care spending account
Eligible expenses must be filed by March 31 of the next plan year
Start with what an FSA is..
A benefit that allows you to set aside money via payroll deduction on a pre-tax basis for eligible healthcare (medical, prescription drug, dental, vision, hearing) or eligible dependent daycare expenses.

15. Flexible Spending Accounts – Two Types
Healthcare spending account
Used for medical, dental, prescription drugs, vision and hearing expenses not covered by health plans for you, your spouse/partner and your dependents
Examples: Deductibles, co-insurance, prescription drug co-pays, vision expenses and other out-of-pocket costs
Dependent care spending account
A separate account for dependent daycare expenses while both parents are working, looking for work or are in school full-time
Examples: Common dependent care expenses (Licensed nursery schools, Adult daycare facilities, after-school programs)
You cannot use this account for dependent healthcare costs
Review the two types of FSAs, what used for, and a few examples of eligible expenses.
Healthcare spending account – used specifically for medical expenses not covered by health plan for you, your spouse/partner and eligible dependents.
Examples of allowable expenses for healthcare FSA: Deductibles, co-insurance, prescription drug co-pays, over-the-counter medications, vision expenses and other out-of-pocket costs
Dependent care spending account - used specifically for dependent daycare expenses while both parents are working, looking for work or are in school full-time
Note to Speaker: Make sure to point out the differences between the Health Care Spending Account and Dependent Care Spending Account. The dependent care spending account is not for dependent healthcare costs. You would enroll in the healthcare spending account to receive reimbursement for eligible dependent healthcare costs.

16. Flexible Spending Account (FSA)
Healthcare spending account
Annual Contribution Limits — $75 - $2,500 per employee
Dependent care spending account
Annual Contribution Limits — $75 - $5,000 annually per household
Administered by UnitedHealthcare
Automatic claim reimbursement, unless you opt out
Enrolled in UnitedHealthcare option
OptumRx prescription drug
Cigna dental
Review the annual contribution limits for each account.
FSA plans are administered by UnitedHealthcare.
Discuss how auto reimbursement works for healthcare FSA. Promote auto more.
Do not have to be enrolled in Caterpillar’s healthcare plan options in order to enroll in an FSA. Just need to have eligible expenses for reimbursement and be actively at work.

17. Healthcare Flexible Spending Account Carryover
The Internal Revenue Service (IRS) has modified the “use-or-lose” rule for healthcare Flexible Spending Accounts (FSA)
The plan now allows up to $500 of unused healthcare FSA funds remaining at the end of a plan year to be carried over into the next plan year
Employees may contribute the maximum allowable $2,500 to a healthcare FSA for the 2015 plan year and also carryover up to $500 from their 2014 healthcare FSA
The healthcare FSA carryover will apply to future plan years as well. For example, up to $500 of unused healthcare FSA funds for the 2015 plan year may be carried over to the 2016 plan year.
This may be one of the reasons you choose not to participate in an FSA plan, the use-it-or-lose it feature. The IRS has made a change to allow for up to $500 of unused healthcare FSA funds to be carried over the next plan year.
If you are participating in the healthcare FSA today, you have $500 or less of unused funds that you don’t believe you will use by the end of the year and you plan to participate next year, you don’t have to rush out and get services or incur costs that you wouldn’t necessarily to use those funds. Have the ability to carryover into next year.
Must enroll in the healthcare FSA for 2015 to use any carryover money from 2014.
You must enroll in the healthcare FSA for 2015 to use any carryover money from 2014

18. Take Action and Review Your Choices
Review materials and resources
Postcard mailed to your home
Annual Enrollment Center on and Your Benefits Resources Web site
Make sure you have the following information when you go to enroll:  
Your user ID and password
Names, birth dates and Social Security Numbers of the eligible dependents whom you wish to enroll
Social Security Numbers required for dependents age six months or older
Select the healthcare benefit option best for you – make changes if necessary
Add eligible dependent(s) to your account and then enroll them in coverage
If enrolling a spouse/partner make your spousal surcharge election
Choose to participate in a Flexible Spending Account
Each year we ask you to review your healthcare plan options, evaluate your needs, review your dependents and make necessary changes base on your personal needs.
You will default into the same healthcare plan option you are enrolled in 2014
Coverage will be terminated at the end of the plan year for dependents age six months and older if the Social Security number has not been provided before the child reaches six months of age.
If enrolled in a healthcare plan option, be sure to review the plan to be sure it is still the best option for you based on your needs.

19. What To Expect If Don’t Take Action
You will remain in the same healthcare plan option as 2014
You will not be enrolled in a Flexible Spending Account
Dependents age six months or older will be removed from coverage if Social Security Number is not provided
Next opportunity to make changes will be the next annual enrollment, unless you experience a qualified change in status
Coverage will be terminated at the end of the plan year for dependents age six months and older if the Social Security number has not been provided before the child reaches six months of age.

20. Qualified Change in Status
If you experience a qualified status change such as marriage or the birth/adoption of a child, you must contact the Caterpillar Benefits Center within 31 days of the qualified status change to make the necessary updates to your benefits
If changes are not made within 31 days, the next opportunity will be the next annual enrollment period
Certain qualified status changes may also allow you to make changes to your current enrollment status, including your Flexible Spending Account enrollment elections, but changes must be made within 31 days
We are talking about annual enrollment being the time to make changes but you may also be eligible to make changes to your elections during the year if you experience a qualified change in status. Important to remember that you must contact the Caterpillar Benefits Center within 31 days of the qualified status change to make the necessary update to your benefits.

21. Tools & Resources For Enrollment

22. Caterpillar Benefits Center – Aon Hewitt
Health & Welfare
Benefits eligibility
Qualified status changes
Dependent coverage (add/drop)
FSA enrollment
Pension
Investments
Retirement
Retiree address changes
Summary Plan Description
Phone Number: Mon-Fri 8:00 a.m. - 6:00 p.m. (Central time) > Compensation & Benefits > Caterpillar Benefits Center at Aon Hewitt OR CatHealthBenefits.com > Aon Hewitt (Pension & Retirement, Eligibility & Enrollment)
While you use the Caterpillar Benefits Center and the Your Benefits Resources website for annual enrollment, it is also the source to perform any other healthcare and pension, investment, and retirement services. You can access a number of services online or you can call and speak direction to a representative.

23. How to Compare Healthcare Options (Available November 17)
Review the plan comparison chart on Your Benefits Resources™ > Health and Insurance tab > Enroll in your benefits
When you go the Your Benefits Resources website to begin annual enrollment you should see a page similar to this that provides you with the steps to help you through the annual enrollment process. You will find information, tools, resources, helpful hints/tips within each step.

24. Click on Compare Plan details
One step in particular to show you is the Plan Comparison tool. You will find this tool under the Compare Plan Details step. A tool that will allow you to compare features of the two healthcare plan options available to you. Use the comparison feature to help understand what option might be the best option for you.

25. How to Compare Healthcare Options
Step 1: select the plans you would like to compare. You have two options so would select Options B and C.
Step 2: Select features, services, costs under each of the plans that you would like to compare. You can select to Compare all of the data points or you can select only certain services that are of interest to you and then select the Compare Plans button.

26. How to Compare Healthcare Options
You will see a side by side comparison of the plans and information you selected on the previous page.

27. Shift gears from healthcare and talk about other benefits that are part of your Total Rewards package
Other Benefits 27

28. ActiveHealth - Health Risk Assessment
The myactivehealth.com/caterpillar website provides participants with personalized health information to help identify potential health risks and offers resources to improve health, such as:
Health Risk Assessments with immediate, targeted feedback
You and spouse/partner complete annually in the first and third quarter
Informed Care Management to assist individuals with chronic health conditions
Active Lifestyle Coaching to help you reach your health goals
Tobacco cessation
Fitness, nutrition and weight management resources
Drug interaction and symptom checkers
Resource Center with tools, trackers, videos and health in the news
Complete the HRA twice a year to avoid additional $75 monthly premium.
Through ActiveHealth we will have access to a number of services:
- Health Risk Assessments provider immediate targeted feedback to improve health based on how we answer the questions.
Informed Care Management services assist with more chronic conditions (Blood pressure, Heart Disease, Diabetes to name a few)
Active Lifestyle coaching (nutrition, stress Tobacco use, exercise)
Access to a number of voluntary resources/programs by simply registering on the myactivehealth website. Once registered you can immediately enroll in a number of the programs that are offered like tobacco cessation. But there is some action that you are required to take in regards to the Health Risk Assessment and healthcare premiums.
Services provided are telephonic
Learn more about Caterpillar’s Health and Wellness Programs at CatHealthBenefits.com, myActiveHealth.com/caterpillar or by calling

29. Employee Assistance Program (EAP)
Administered by Chestnut Global Partners (CGP)
Full-time employees and eligible dependents enrolled in healthcare coverage are also eligible for EAP at no cost
Offers confidential assessment, counseling, and referrals to assist in resolving personal and work-related problems
Services are available through a network of EAP professionals near employees’ home and work.  
Services are voluntary, confidential and free to employees and dependents
24 hour assistance, call toll free: CAT-0565
Chestnut Global Partners (CGP) is our EAP vendor who manages the network of licensed mental health professionals to provide clinical counseling/EAP services for employees at all of our US facilities. They insure that employees are offered appointments in a timely manner (within 3 business days) and at a location that is close to their home, provided there are established resources in that particular area.
Those eligible for the services are full-time employees and in addition to employees those eligible dependents (spouse/partner and children) you have enrolled in your healthcare coverage. Employees are eligible regardless of enrollment in the healthcare plan.
Offered confidential assessment of the presenting problem, counseling and referrals to assist in resolving personal or work-related problems.
Currently, network has over 50 providers in the state of Wisconsin. In the Milwaukee metro area, they have 16 providers and 8 of these are located in the southern Milwaukee suburbs, including South Milwaukee proper.
CGP has been providing services in the Milwaukee area for our management and support employees and we have not yet been made aware of any gaps in service or the locations in which these services are provided.
Services are confidential. To access EAP services, including information about the program and to schedule counseling appointments, call 866#. Representatives are available 24/7
or access information about the benefit via the Summary Plan Description that you will receive after January 1 or Cathealthbenefits.com website.
Initial call ask a set of questions to identify the presenting problem in order to assess how to proceed initially.
In general, the program is very similar to the program that you have access to today. There maybe some differences in number of sessions allowed or other minor differences in protocols/providers or things like that but very similar to current program.

30. Employee Assistance Program (EAP)
EAP provides help in the following areas:
Depression and anxiety
Marital or relationship difficulties
Help finding child and elder care
Child and adolescent issues
Work-related / performance issues
Grief and loss
Stress management
Financial issues
Legal problems
Drug, alcohol and other addictions
There are clinical counseling type of services the program also offers work-life services (assistance finding child and elder care) financial counseling services.

31. Other Benefits Adoption Assistance Benefit
A maximum adoption benefit of $5,000 per eligible child for qualified adoption expenses
Must submit claim within 90 days after the date adoption is finalized
Qualified adoption expenses based on IRS definition
Your Choice Voluntary Benefits and Discounts through Marsh
Employee discounts
Auto, Home, Identity Theft, Long Term care, Pet insurance and Group Legal Service Plan
Adoption assistance benefit > reminder benefit is available. May be eligible for up to $5,000 per eligible child for qualified adoption expenses once the adoption is finalized.
Voluntary Benefits/Discounts available through Marsh. Go to to find more information regarding employee discounts or go directly to Marsh website.

32. Health Promotion Exams
To help you manage your health, Caterpillar facilities offer a
confidential health promotion exam benefit, based on your age 25, 28, 31, 34, 37, 40, 43, 46, 49 and each year after 49 until retirement
The exam provides evidence-based preventive services and testing either in local Health Service Units or at designated local medical providers
Participation in the program is voluntary. If you have any questions, contact local HR or Caterpillar Medical at
Eligible for an exam every three years up to the age of 49. After age 49 annual exam until you retire.
Exam includes blood test that will measure blood sugar, cholesterol levels and other important information. A physical exam.

33. Life Insurance Basic Life Company paidNo
Change
Basic Life
Company paid
$50,000 Tobacco users pay a portion of the premium
AD&D
$50,000
Optional life
$50,000 or $100,000 Non-tobacco and tobacco rates apply
New elections will require Evidence of Insurability (EOI)
Spousal life
$15,000 (up to age 70)
Dependent life
$5,000
You are considered a tobacco user if you have used tobacco products within the past 24 months. Rates may change depending on age band but no changes to the benefit amounts available.
Premiums you pay in January for your optional life insurance reflect that age you will be on Dec 31, For example, if you attain age 60 in December 2015 you will begin paying the age 60 rate in January 2015.

34. Life Insurance
Review your life insurance rates, coverage and beneficiary by visiting or by calling
If you have optional term life insurance, you also have access to free Will and Estate Resolution Services
Reminder that can visit metlife website or call them to review life insurance rates, coverage and to review/update beneficiaries.
One additional benefit to mention, if you are enrolled in optional life insurance you also have access to Will and Estate Resolution Services. If you would like to understand more about those services you can call MetLife.

35. 401(k) 35

36. Deferral Limits – Employee Contributions
Roth and pre-tax 401(k) accounts
Defer up to 70% of eligible compensation
Defer on a pre-tax or Roth (after-tax) basis or both
Annual combined contribution limit of $18,000 for both
2015 IRS annual contribution limits:
$18,000 if under age 50
$6,000 additional catch-up contribution if age 50 or over
Two types of 401(k) accounts (Roth and pre-tax 401(k))
May defer your pay into only one or both
There are legal limitations on what an employee can defer in their 401(k) plan.
- Defer up to 70% of eligible compensation
- For 2015 the contribution limit is $18,000 if under age 50
- Additional $6000 if age or over
If contribute to both the Roth and pre-tax accounts the limits apply to the combination of both.

37. What’s The Difference? Roth 401(k) Contributions
Pre-Tax 401(k) Contributions
Roth 401(k) Contributions
Your contributions don't reduce taxable income now because they're made on an after-tax basis
Contributions and earnings can be withdrawn tax-free in retirement, provided that you're age 59-1/2 or older and your Roth 401(k) account is at least 5 years old
You get a tax savings now because your taxable income is reduced by the amount of your contributions in the year you make them
Contributions and earnings will be taxed when you withdraw them in retirement, at the tax bracket you're in at that time
What’s the difference between the pre-tax 401(k) and the Roth?
Depending on your situation, you'll need to evaluate whether you prefer a tax savings now or tax-free income during retirement.
Other Factors to Consider
Whether to make Roth 401(k) or before-tax 401(k) contributions will depend on your individual circumstances. Here are other factors to think about.
Your Tax Bracket Now Versus Retirement
If you think you'll be in a higher tax bracket at retirement than now, Roth 401(k) contributions may offer the greatest tax advantage. Conversely, if you believe you'll be in a lower tax bracket at retirement than now, then before-tax contributions may offer the best tax advantage.
Your Time Until Retirement
Think about when you want to retire and how many years it will take until you reach this goal. Roth 401(k) contributions may be beneficial if you have a while until you retire. You have a greater potential for more earnings the longer you're away from retirement, and the earnings on Roth 401(k) contributions are tax-free when you retire at 59-1/2 or later and your account is at least 5 years old.

38. Company Match Contributions
Caterpillar provides dollar for dollar (100%) match of your employee contributions up to a maximum of 6% of pay
Matching contributions are contributed to the plan at the close of each payroll period
100% vested in matching contributions
Example: Pre-tax base 4% and Roth base 4%, your contributions total 8%, company will match 6%.
The company provides matching contributions on the deferrals that you make. If not currently participating or not participating at 6% you are leaving money on the table. Should consider at least participating at 6% to take advantage of the full company match contributions available to you.

39. New 401(k) Investment Options
December 15, 2014
401(k) becoming primary retirement vehicle, and plan participants want help
Recent industry reviews and benchmarking have led to changes to the fund options
New investment options offer opportunity to simplify investment decisions and provide quality investment options that meet participants’ needs
As 401(k) plans become primary retirement vehicle, Many employees are asking for help in with investment decisions.
The new options offer the opportunity to simplify investment decisions.

40. New 401(k) Investment Options
New custom line-up of investment funds
Current Model Portfolios and other core investment funds will be replaced with:
Target Retirement Funds, and
Menu of 11 core investment funds
Caterpillar Stock Fund
Self-Directed Brokerage Account
Replacing the existing Model Portfolios and the core investment funds with Target Retirement Funds and menu of 11 core investment funds.
You will continue to be able to elect to invest in Caterpillar Stock Fund and the Self-Directed Brokerage Account

41. New 401(k) Investment Options
November 24 –
December 5, 2014
Do-It-For-Me:
Target Retirement Funds are a diversified, professionally managed, automatic investment option intended for all of your retirement plan assets
Each fund automatically changes to become more conservative as you approach your target retirement date
Do-It-Yourself:
Menu of 11 core investment funds
Select your own mix of funds
Target Retirement investment funds provide investment options managed for specific date in the future. Each fund has a date in it’s name the Funds Target Date designed to be the years closest to when you plan to retire and begin withdrawing from your account. When you approach your funds retirement date, your funds investment automatically become more conservative .
For those that don’t take any action during the Nov 24 – Dec 5 window, current and future balances will be invested into the Target Retirement Fund closest to the year when you turn age 65.
Or you can select your own mix of funds which you will need to monitor and make adjustments to as your circumstances change.
You can change your investment elections any time after December 16, 2014

42. Your Total Rewards “To Do” List for Fall
2015 Healthcare Benefits Enrollment
When? Nov
Where? resources.hewitt.com/cat
Learn more about the options available to you by reviewing materials and resources:
Postcard mailed to your home
and Your Benefits Resources
Review plan comparisons online during enrollment window
Review dependent coverage (add/remove)
Review spousal/partner surcharge
Enroll in healthcare benefit option best for you
Enroll in Flexible Spending Accounts
Your elections will be effective January 1, 2015
New 401(k) Investment Options Re-election
When? Nov. 24 – Dec. 5
Where? resources.hewitt.com/cat
Review 401(k) Investment Changes and Re-election Instructions brochure
Go online to learn more about the new investment options, including the Target Retirement Funds (website and video describe in more detail)
Understand what will happen to your current balances and future contributions if you take no action and default to a Target Retirement Fund
May choose new investment funds during the re-election window
December 15, 2014, current balance and future contributions invested in new investment choices
You may change your investment elections any time after December 16, 2014

43. Thank you for participating! Questions