1. Benefit Coordinators Corporation (BCC) | 3838 Camino del Rio North, Suite 380, San Diego, CA 92108 | 619.624.9500 | 100 Ryan Court, Suite 200, Pittsburgh, PA 15205 | 412.276.1111 | www.benXcel.com Flexible Spending Account Section 125 Plans rev. 10.25.2012

2. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 2 Advantages of Section 125 Plans  Through Section 125, your premium contributions for medical, dental and vision plans can be paid with pre-tax dollars.  In addition, you will also be able to pay for eligible unreimbursed health care and dependent care expenses with pre-tax dollars.  The biggest advantage of a Flexible Spending Account is the tax savings. © 2012 Benefit Coordinators Corporation. All rights reserved.

3. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 3 Features: Health Care Reimbursement Account  The Health Care Reimbursement Account allows you to pay for qualified, medically necessary medical, dental and vision expenses that are not covered, or only partially covered, by the insurance plans. Examples include deductibles, copayments for doctor office visits, prescriptions, over the counter drugs, and most medical/dental expenses not completely reimbursed at 100% by the insurance company. © 2012 Benefit Coordinators Corporation. All rights reserved.

4. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 4  To participate in the Unreimbursed Medical Account, you should conservatively estimate the out-of-pocket expenses you, your spouse and children will incur during the plan year. This includes qualified medical, dental and vision expenses not covered by insurance for you, your spouse and dependents. The maximum amount you can contribute during a plan year is $2,500. Features: Health Care Reimbursement Account © 2012 Benefit Coordinators Corporation. All rights reserved.

5. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 5  Be conservative in estimating expenses If you fail to use your flex dollars by the end of the play year, you forfeit your account balance under the IRS “Use It or Lose It” rule.  Be aware that when you reduce your taxable income, you are also reducing your Social Security contributions. This reduction of Social Security (FICA) contributions may affect future retirement or disability benefits. Features: Health Care Reimbursement Account © 2012 Benefit Coordinators Corporation. All rights reserved.

6. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ The BCC Debit Card (powered by the Alegeus Technologies Flex Convenience Debit Card system) allows you to directly pay for qualified FSA expenses at the point of service.  Use your debit card at eligible FSA locations wherever MasterCard is accepted – from physician and dental offices to pharmacies and optical shops and dependent care providers  Approved expenses are automatically deducted from your pre-tax account  No need to submit claim forms and wait for a reimbursement NOTE: Always save your itemized receipts. While there is no requirement for you to complete claim forms, additional documentation may be requested in some cases in order to confirm the eligibility of some debit card purchases. This is in accordance with IRS regulations. 6 Debit Card Convenience © 2012 Benefit Coordinators Corporation. All rights reserved.

7. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 7 Features: Dependent Care Reimbursement Account  The Dependent Care Account allows you to contribute up to $5,000 annually ($2,500 if married but file taxes separately) toward eligible day care expenses. Day care expenses are defined as those which are necessary in order for you and your spouse, if married, to continue to work.  You may contribute annually up to $5,000 in the Dependent Care Account to offset day care expenses for eligible child(ren) or elderly dependents.  Elections cannot be changed once the plan year has started unless you or a covered dependent experience a qualifying life event (ex. birth, adoption, change in spouse’s employment status). Refer to your plan SPD for a complete listing. © 2012 Benefit Coordinators Corporation. All rights reserved.

8. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 8 Dependent Care Flowchart © 2012 Benefit Coordinators Corporation. All rights reserved.

9. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 9 Summary  Once you have authorized your deduction, you cannot change your contribution mid-year unless you have a qualifying family status change. Note: the change in election must be consistent with the change in family status. © 2012 Benefit Coordinators Corporation. All rights reserved.

10. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 10 An In-depth Look at Qualifying Expenses  Abortion  Acupuncture  Adoption, pre-adoption medical expenses  Alcoholism treatment  Ambulance  Artificial limbs  Artificial teeth  Asthma treatments  Bandages, elastic, gauze pads, liquid adhesives for small cuts  Blood pressure monitoring devices  Breast pumps and lactation supplies  Carpal tunnel wrist supports  Chiropractors Circumcision Co-insurance amounts  Cold/hot packs  Contact lenses, materials and equipment  Contraceptives  Co-payments  Crutches  Deductibles  Dental sealants  Dental treatment (excludes cosmetic procedures)  Dentures and denture adhesives  Drug addiction/overdose treatment  Egg donor fees  Eye examinations and eyeglasses First aid (creams and kits) Flu shots GIFT (Gamete Intra ‐ Fallopian Transfer) Guide dog Hearing aids  Hospital services  Immunizations  Laboratory fees  Lasik eye surgery  Medical information plan charges  Medical monitoring and testing devices Medical records charges Norplant insertion or removal Obstetrical expenses Occlusal guards to prevent teeth grinding Operations (excludes cosmetic procedures) Organ donors Osteopath fees Oxygen Physical exams Physical therapy Preventive care screenings Prosthesis Psychiatric care Radial keratotomy Shipping and handling fees Sterilization procedures Taxes on medical services and products Thermometers Transplants Transportation expenses for person to receive medical care Usual and customary charges, excess Vaccines Viagra Walkers Wheelchair X-ray fees Eligible Expenses  Arthritis gloves  Braille books and magazines  Breast reconstruction surgery following mastectomy Expenses Requiring Letter of Medical Necessity  Chelation therapy  Flouridation devices or services  Learning disability, instructional fees  Allergy medicine  Analgesics  Antacids  Antibiotic ointments  Antihistamines  Anti-itch creams  Aspirin  Bactine  Calamine lotion  Claritin  Cold medicine  Decongestants  Diabetic supplies  Diaper rash ointments & creams  Diarrhea medicine  Ear wax removal products  Expectorants  Eye drops  Fever-reducing medications  Headache medications  Hemorrhoid treatments  Insect bite creams & ointments  Laxatives  Menstrual pain relievers  Motion sickness pills  Nicotine gum or patches  Pain relievers  Pregnancy test kits  Rubbing alcohol  Sleep deprivation treatment  Smoking cessation meds & programs  Sunburn creams and ointments  Sunscreen with high SPF  Toothache and teething pain relievers  Wart remover treatments  Yeast infection medications  Medical alert bracelet or necklace  Patterning exercise  Television or telephone for hearing Expenses Requiring Medical Prescription © 2012 Benefit Coordinators Corporation. All rights reserved.

11. ©2011 Benefit Coordinators Corporation. All rights reserved. ~ Private & Confidential ~ 11 FAQs  What if I have other questions? 100 Ryan Court, Suite 200 Pittsburgh, PA 15205 1-800-685-6100 www.benxcel.com © 2012 Benefit Coordinators Corporation. All rights reserved.