HUMAN RESOURCES ADMINISTRATION LISA TOLSON V.P. of Human Resources HUMAN RESOURCES ADMINISTRATION

Director Compensation/Travel Employee Benefits Healthcare Update AGENDA Director Compensation/Travel Employee Benefits Healthcare Update

DIRECTOR COMPENSATION REVIEW Policy 203 - Compensation of the Board of Directors Per Diem as established by the Board of Directors, plus travel from the director’s home and out-of-pocket expenses, will be paid to directors when attending board, committee, member, and other meetings or on official Cooperative business. Regardless of the number of meetings attended in a single day, only one per diem will be paid. Directors shall be reimbursed for all legitimate expenses for attendance at such meetings upon submission of a detailed expense account, with appropriate receipts attached. No expenses will be paid for spouses of directors accompanying them to meetings. Travel shall be reimbursed by the most reasonable method of travel. Mileage reimbursement, plus toll costs, for use of personal automobile shall be at the IRS standard mileage rate. Directors are authorized to use the Cooperative’s credit card to pay for authorized expenses incurred while on business.

Policy 203 – Continued The Cooperative will reimburse for reasonable business and/or casual entertainment expenses which meet all standards of ethical business conduct related to special guests invited by the directors. Reimbursement of expenses will be made on a monthly basis following the meeting at which expense sheets were submitted. In order to guarantee accommodations, reservations may be made for directors before they are contacted by the Cooperative and any cost incurred for reservations that are subsequently canceled will be borne by the Cooperative. The director will be responsible for any cancellation fees for their spouse. Any cancellation made by the director after confirming attendance that has any cost associated may be billed to the director with the exception of unforeseeable situations. Legislative Activities: directors are not eligible to receive a per diem if they attend legislative activities

DIRECTOR TRAVEL PACKET EXAMPLE

Expense Sheet

EXAMPLE

Airline Schedule EXAMPLE

Hotel Confirmation EXAMPLE

Meeting Registration EXAMPLE

EXAMPLE Meeting Agenda

EXAMPLE

Benefit Package Provided by Cooperative

Employee Fringe Benefits Health Insurance Current Plan: 100% premium for Employee Only Deductibles: Employeee - $1,500 in-network / $3,000 out-network Family - $3,000 in-network / $6,000 out-of-network Out-of-Pocket: Employeee - $1,500 in-network / $4,250 out-network Family - $3,000 in-network / $8,500 out-of-network Renewal Rate 2.21% increase HSA - $1,000 contribution Statewide Average: Employee 100% (18 Coops) Dependent Coops 100% 3 90-99% 1 75-89% 4 50-74% 12 1-49% 3 0% 3 Renewal Rate: 5.11% increase

Employee Fringe Benefits Retirement Security (RS) Current Plan: 100% employee contribution 2018 Contribution Rate = 29.48% 30 yrs or Age 62 1.5% benefit w/Cost-of-living Adjustment (COLA) Statewide Average: 1.7 % benefit Formula: 1.5% X Average Salary X Years of Service Example: 1.5% X $50,000 X 30 = $22,500 annual

Employee Fringe Benefits 401k / SelectRE Pension Current plan: 2% base salary contribution Statewide Average: 3% base salary 3% matching

Employee Fringe Benefits Life Insurance Current Plan: 100% premium – coverage includes: Employee = three (3) times base salary Spouse = $25,000 Child = $10,000 Statewide Average: Emp = 100% premium (24 coops) Dep = 100% (5 coops)

Employee Fringe Benefits Long-Term Disability Current Plan: 100% premium 50% benefit base salary (not off-set by SSDI) Statewide Average: 100% - 19 1-89% - 3 0% - 4 Business Travel Accident (BTA) Current Plan: 100% premium $50,000 benefit Statewide Average: 100% - 26 coops

Employee Fringe Benefits Paid Time Not Worked Current Plans: Vacation 320 hrs. maximum Sick 1,040 hrs. maximum Holiday 9 days annually Personal 1 day Statewide Average: Vacation 295 hrs. maximum Sick 717 hrs. maximum Holiday/Personal 10 days annually

Employee Fringe Benefits Current Policy Pay for unused vacation leave: 100% at termination of employment

Employee Fringe Benefits Current Policy Pay for unused sick leave: 25% at retirement

Employee Fringe Benefits Current Policy Pay for unused personal leave: 0% anytime

Employee Fringe Benefits

Employee Fringe Benefits 5-Year History of Gross Payroll These figures do not include wages for overtime or time not worked (ex: holiday, vacation, sick, etc).

Employee Fringe Benefits

Employee Fringe Benefits

Employee Fringe Benefits

Employee Fringe Benefits

Employee Fringe Benefits

Employee Fringe Benefits

Employee Fringe Benefits 2018: 59.92% Statewide Average: 71%

HealthCare Update Employee Fringe Benefits Cadillac Tax - Affordable Care Act Subject to an excise tax Effective – 2018, 2020, 2022 Thresholds projected - $11,200 for single coverage / $30,150 for family Equal to 40 percent of health benefits exceeding thresholds projected to be indexed to growth in the consumer price index in subsequent years. Thresholds will be higher for plans with more-expensive-than-average demographics, retirees ages 55 to 64, and workers in high-risk professions. Applies not only to health insurance premiums, but also to contributions to health saving accounts, health reimbursement arrangements, and medical flexible spending accounts.

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