2016 Benefit fb

Benefits At-A-Glance At Topcon we value each employee’s health and well being. We are proud to offer a spectrum of plans that safeguard your physical and financial health at a reasonable cost.

Goals for this session Completing the overview of benefits: • What they are • How they work • Eligibility for benefits • Understanding your benefits to make an informed choice • How to enroll • What the cost is • Immediately following this session enrolling in benefits

Benefits At-A-Glance Overview of your Topcon Benefits • Health Care Plans: • Work/ Life Balance: • Medical • Employee Assistance Plan • Dental • Tax Savings: • Vision • Dependent Care Spending • Flexible Spending Accounts Account • Accident Insurance • Commuter Benefit Plan • Critical Illness Insurance • Income Security: • Life Insurance / AD&D • Short-Term Disability • Long-Term Disability • Workers’ Compensation • Retirement- 401k

Health Plans Medical Plans – Dealing With Alphabet Soup! Topcon offers HMO’s, PPO’s, and a HDHP. These plans are bundled with dental and vision coverage to give you a complete package. HDHP HMO PPO

HDHP HMO PPO Things to consider when deciding on a medical plan include: • Is my current doctor in the network? • What is my comfort level with not being able to go to any doctor I choose? • Are there any health issues that require a specialist that is out of network? • Will the deductible be an issue if I have a health emergency? • Can I afford the premium? Remember, no matter which medical plan you choose, you will receive dental and vision coverage at no extra cost!!

HDHP HMO PPO High Deductible Health Plan (HDHP) – Key Considerations Basic Features: Key Considerations: • Can go to any doctor you want in/out-of- • How often do you go to the doctor? network. • If your doctor is out-of-network are you • Has a deductible of $4,000/single and $8,000 willing to pay the higher fees after the for family. deductible is met? • Comes with a tax-free Health Savings Account (HSA) which you can use to cover medical • Do you or your dependents have any expenses such as deductibles and other chronic conditions? expenses not covered by the health plan. • Are you or your dependents on any daily • Topcon contributes $2,000/single and $4,000 medication? for family into this Health Savings account. • Do you have young children? • Can you afford to pay the initial $4k/$8k How it Works: deductible? • In order to get the benefits, you must first pay the deductible. i.e. all expenses are paid at 100%, including prescriptions, until the deductible is met. • Once the deductible is met, you simply pay the co-pays.

HDHP HMO PPO HDHP Example Ex: Child breaks arm $250 for office visit $2000 visit to set arm in cast $135 prescription $500 for follow up visits $900 for physical therapy $3,785 You would be responsible for the full amount if the deductible has not yet been met.

HDHP HMO PPO Using your HDHP & HSA - Example But, you aren’t going to worry about the $3,785 because…. • Topcon has deposited $1,500 to date in your Health Savings Account (HSA). • You have deposited an additional $2000 into your HSA. • Meaning you have $3,500 in your HSA to use. You pay the $3,500 out of your HSA account and are then only responsible for the $285 difference. Yes! Additional Advantages of the HSA: • You own the account, so you determine when you want to spend the funds. • You never lose the funds - they are yours to keep even if your employment changes. • Funds are deposited tax free, the funds grow tax-deferred, and they remain tax free.

HDHP HMO PPO Health Maintenance Organization (HMO) plans - CA and WI employees • Kaiser is offered exclusively to California employees. • Dean HMO is offered exclusively to Wisconsin Employees. • There is no deductible. • There is a deductible with Dean Care; $750 • There are co-pays charged for most services. for single and $1,500 for family. • You have to pick a primary care doctor. • You have to pick a primary care doctor. • To see a specialist you need a referral from your • To see a specialist you need a referral from doctor. your doctor. • Kaiser acts as self-contained unit. The majority of • There are no out-of-network benefits. You the time you can get seen by a doctor, get lab must utilize Dean network physicians, tests, x-rays, and prescriptions all in the same pharmacies, and locations. building and all in the same day. • If you go outside of Dean you are • There are no out-of-network benefits. You must responsible for 100% of the cost. utilize Kaiser network physicians, pharmacies, and locations. • If you go outside of Kaiser you are responsible for 100% of the cost.

HDHP HMO PPO Blue Shield Preferred Provider Organization (PPO) Basic Features Key Considerations • Can go to any doctor you want in/out-of- • How often do you go to the doctor? network. • If you stay in-network there are lower fees, • If your doctor is out-of-network are you willing to pay the higher fees after the deductible is resulting in less out of pocket costs to you. met? • Has a deductible of $300 for single coverage • Do you or your dependents have any chronic and $900 for family. conditions? • In addition, there is a $250 Rx deductible for • Are you or your dependents on any daily non-generic prescriptions. medication? • Do you have young children? • Can you afford to pay the initial $300 / $900 How it Works: deductible? • In order to get the benefits, you must first pay the deductible. • Once the deductible is met, you simply pay the co-pays.

HDHP HMO PPO Blue Shield Preferred PPO HMO Nationwide plan -(Non-CA / WI) Basic Features Key Considerations • This plan is equivalent to an HMO plan • Do you like having the freedom to go to for employees outside of California and Wisconsin, but does allow you to use out- any doctor you want? of-network providers. • Is your current doctor part of the • There is no deductible if you stay in- network? If not you can still see them but network the rates will be higher and you will be • Outside of the network there is a $3,500 subject to the deductible. deductible. • There is also an Rx deductible of $250 for non-generic prescriptions for all members. How it Works • You choos

HDHP HMO PPO Health Insurance Cost • Your health insurance is bundled, meaning that the medical, dental, and vision come as a package. • It is an ‘all or none’ plan. The cost depends on the level of coverage you pick as well as the plan. • All premiums are charged on a pre-tax basis and deducted from each paycheck. Coverage Blue Shield Kaiser HMO Blue Shield Blue Shield Level HDHP HMO (outside PPO CA/WI) Employee only 1.5% of salary. Max 2.5% of salary. Max 2.5% of salary. Max of 3.5% of salary. Max of of $2,500 a year. of $3,750 a year. $3,750 a year. $3,750 a year. Employee + One 2.0% of salary. Max 3.0% of salary. Max 3.0% of salary. Max of 4.0% of salary. Max of of $3,250 a year. of $4,500 a year. $4,500 a year. $4,500 a year. Family (2 or more 2.5% of salary. Max 3.5% of salary. Max 3.5% of salary. Max of 4.5% of salary. Max of dependents) of $4,000 a year. of $5,500 a year. $5,550 a year. $5.500 a year.

HDHP HMO PPO Health Insurance Cost - Wisconsin Employees Coverage Blue Shield HDHP Dean HMO Blue Shield PPO Level Employee only 1.5% of salary. Max of $61.02 $61.02 $2,500 a year. Employee + 2.0% of salary. Max of $110.44 $110.44 Spouse $3,250 a year. Employee and n/a $99.37 $99.37 Child(ren) Family 2.5% of salary. Max of $155.24 $155.24 $4,000 a year.

HDHP HMO PPO Working with your plans • Your benefits are effective your first day of employment. • Regardless of what plan you are on, cards generally take 7-10 business days to arrive. • If you need an appointment sooner, you can call the Benefits Helpline at 800-542-3737 to see if they have received your information. • Domestic partners are not covered.

Guardian Dental Basic features • You can go to any dentist you choose, but in-network has more benefits / less out-of-pocket expenses. • Preventative services, such as cleanings are covered at 100% and not subject to deductible. • Maximum benefit is $2,000 per person per year, outside of Orthodontia. • Orthodontia has a lifetime benefit of $2,500 per person for adults and covered children up to age 26. • Dental implants are covered. How it works • Go to any dentist you like. • There is a $50 deductible per person outside of cleanings. • Once the annual deductible is met up to three family members, no further deductibles apply. • If you need a more in-depth procedure done, you can have the expenses in excess of $200 reviewed by Guardian for a pre-estimate of benefits prior to proceeding with dental work. • Plan ID is 325096. Cards are not mailed, but can be downloaded on website – www.guardiananytime.com.

Eyemed Vision Plan Basic Features • Nationwide network, including LensCrafters, Sears Optical, Pearle Vision, and JCPenny Optical. • Can go to any eye doctor you choose, but in-network has more benefits / less out-of-pocket expenses. How it works • Can go to an eye doctor for an exam once every twelve months. • Lenses are covered every 12 months, while frames are covered every 24 months. • Contacts are covered every 12 months. • Some HMO plans have some limited vision coverage -this is intended to offer broader, more comprehensive options. • Group number is 9900887. Cards are not mailed, but can be printed from the website - www.eyemed.com

Flexible Spending Accounts Flexible Spending Accounts (FSAs) enable you to set aside money on a pre-tax basis to pay for your out-of-pocket expenses related to your health care, dependent care, and work commute. How it Works • Every pay period you put money aside pre-tax through payroll contribution. • A debit card will be sent to you after your initial enrollment which is used to pay for expenses. • Depending on what type of account you have, you can pay up front and then send in a claim form to get reimbursed. Or, you can use the debit card to pay for items directly from your account. • Health care and Limited Purpose FSA money can be used right away, even if you haven’t contributed your full amount through payroll deductions. Dependent Care and Commuter FSA’s are the opposite- you must have the money in your account before you are allowed to claim reimbursement. Key Considerations • If you do not enroll in any of our medical plans you can still participate in the FSA plans. • This is a use-it or lose-it plan. You have until March 15, 2017 to incur the expense, and up to May 14, 2017 to submit the claims. Otherwise, the money is forfeited. • Before you decide how much to put aside, think about how much you plan to spend. Will you have daycare expenses? Medical visits / prescriptions? Commuting expenses? If you are not sure of upcoming expenses it is best to be conservative.

Healthcare FSA The Healthcare FSA is used to pay for eligible health-related expenses. You can think of it as an interest-free loan you pay yourself back with over the year! • Examples of eligible expenses include: • Medical / Dental deductibles, co-payments, and co-insurance • Prescription drugs, copayments, and deductibles • Eye examinations, glasses, contacts, Lasik • For a complete list of eligible expenses, visit the Benefit Resources website (www.BenefitResource.com) • The maximum you can contribute is $2,550 annually. The Limited Purpose FSA is only for those who are enrolled in the HDHP. The Limited Purpose plan is only allowed to reimburse you on dental and vision expenses – not medical • You can still contribute the same plan maximum. • Employees with the HDHP account can still elect the Dependent Care and Commuter FSA plans.

Dependent Care FSA The Dependent FSA allows you to pay for dependent daycare while you are at work. If you have dependent children under the age of 13 or dependents of any age who are unable to care fore themselves, you can enroll in this plan. Examples of eligible expenses include: • Day care facility fees • Before-school and after-school care • Local day camp • Nurse or caregiver for elderly dependents The maximum you can contribute is $5,000 annually (or $2,500 if married and filing separately). The grace period rules apply to this plan.

Commuter FSA The Commuter FSA allows you to save on your daily commute to work if you use public transportation. You can put aside up to $130 per month pre-tax for Mass Transit and up to $250 per month for parking. • Monthly changes in elections are allowed for this benefit if there is a change in work schedule, residence, or worksite. • Any unused cash balance in an account at the end of a plan month will be carried forward to the subsequent plan month. • Elections may be temporarily reduced to $0 to allow excess account balances from prior months to be used. • Highway tolls, Fastrak, bridge tolls, commuting mileage, taxicab fares, and fuel are not eligible commuting expenses. Only qualified workplace commuting expenses are eligible. • Claims must be filed within 180 days of the provided service. Any unused cash balance remaining in the account at month end will be carried forward to the subsequent plan month.

Benefit Resource, Inc BRI administers our Flexible Spending plans. Their website allows you to do many things that will save you time, including: • Setting up direct deposit for claims reimbursement yourself, alleviating the need for paper forms. • Checking on balances, status of pending claims • In addition, BRI offers a smartphone app that lets you check balances, review transactions, and even use your phone’s camera to upload a receipt and submit your claims. To get started, register at www.benefitresource.com • Company Code is Topcon • Member Number is your full social security number, • Password is your zip code. Participant support is available via a toll free number (8am to 8pm EST) at 800-473-9595 Live online chat is available at www.benefitresource.com

What If I Don’t Need Topcon’s Healthcare Coverage? Opting Out of Benefits How it works • It is a requirement of Federal Law that all eligible employees have health coverage. • If you choose to waive health coverage in favor of spousal or parental coverage, the Company will pay $200 per month in the first payroll period of each month. • You must show proof of other coverage to receive this benefit. Key considerations • This amount is taxable income and is reported on your annual W-2. • If you choose to “Opt-Out”, you will not be waiving your Basic Life Insurance, Accidental Death and Dismemberment (AD&D), or your Short and Long-Term Disability coverage. • You are still eligible to participate in the FSA. • Employees may choose to Opt-Out at any time during the year but may only re-join the benefits programs during Open Enrollment or during a qualifying event.

Accident Insurance Most of us do not plan or budget for accidents. Accident Insurance can help pay for charges that pile up while you are out of work. Basic Features • Can enroll in this plan only during annual Open Enrollment. • Can also buy coverage for your spouse up to age 64 and dependent children up to age 26. • There are no health questions to answer. If you apply, you automatically receive coverage under the plan. Eye injuries • • Broken Bones • Covered injuries include : • Burns • Concussion • Cuts needing stitches • It is portable - You own the coverage and can continue coverage at the same rate if you leave. How it works • This is an optional benefit. It pays benefits regardless of any other insurance you have. • If you or a covered dependent have a covered injury, you file a claim and submit. • Upon approval you receive a check and decide how YOU want to spend it. • Prices ranges from $7.52 per pay employee only to $18.68 for family coverage.

Critical Illness Insurance Unum offers a voluntary plan for critical illness’s such as cancer, heart attack, major organ failure, or stroke. Similar to Accident Insurance, this plan is only available during Open Enrollment. Basic Features • You choose the level of coverage. • Employees can receive up to $50k in coverage in $5k increments. • Spouses can receive up to $30k in $5k increments. • Children can get up to 25% of the employee coverage amount at no cost. • Anyone in the plan receives a $50 wellness benefit for each covered person who participates yearly in a wellness screening. • Critical Illness coverage Stroke • Cancer • Coma • includes: • Heart Attack • Paralysis • Brain • Blindness • Major organ failure Tumor How it works • This benefit is not automatically approved. You and your dependents must apply and get approval if you would like to get coverage above the existing guaranteed issue amount. – Guaranteed issue is $10k for employees and $5k for spouse. • With Critical Illness Insurance, if you are diagnosed with a covered illness, you get a lump-sum cash benefit upon diagnosis, even if you receive benefits from other insurance. • Premiums vary and are based on age and tobacco use.

Work/Life Balance Employee Assistance Plan Balancing work and life can be tough. The EAP can help you find solutions for the everyday challenges you face at work and home. Some topics that they can help on include: • Childcare and/or eldercare referrals • Personal relationship information • Legal consultations with licensed attorneys • Financial planning assistance • Stress management • Career development How it works: • Call the 1-800 number to get unlimited access to master’s-level consultants. • Three face-to-face visits with a consultant are available if needed. • Services are confidential and available 24/7. • Resources and tools are available online. www.unum.com/worklifebalance 800-854-1446

Benefits Advocate Center For any benefit-related questions, the Benefits Advocate Center (BAC) is available for you. A team of benefits professionals are available to help you understand and better utilize your Topcon benefits, handle complicated claims for you and get you the information you need. They act as an extension of the HR department. Some of the issues they can assist with are: • Explanation of Benefits • Eligibility Issues / Questions • Provider Search Assistance • Order ID Cards • COBRA Guidance • Language Line / Interpretation Services If you need help researching and understand you benefits, the BAC is just a telephone call away. Call them at 800-542-3737 between 6 a.m. and 6 p.m. PST, or you can email them at [email protected].

Income Security Basic Life Insurance/ Accidental Death and Dismemberment • All full-time employees receive $40,000* of basic term life insurance and accidental death and dismemberment through Unum at no cost. • Beneficiary’s can be changed at any time. • You are automatically enrolled in this benefit and do not need to sign up. *Benefits are reduced to 65% at age 70 and 50% at age 75

Supplemental Life Basic Features • You can purchase up to $500k in additional life insurance (or 5x your salary, whichever is less) in increments of $10k for yourself and your spouse. • Guaranteed issue (amount of coverage you can get without medical underwriting) is $150k for employees and $25k for spouses. • Evidence of Insurability (EOI) is required for amounts over the Guaranteed Issue. • Children can be covered up to $10k in increments of $2k. How it works • Employees must be enrolled in Supplemental Life in order to obtain coverage for their spouse and/or children. • If the requested amount is above the guaranteed issue, an Evidence of Insurability Form is required. The form must be completed and submitted to the carrier for approval. • Depending on the amount requested, medical underwriting may be necessary. This generally involves a nurse coming to your home and taking your vitals (blood pressure, weight, etc..) and could also include requesting urine and/or blood samples. • Premiums paid for the child coverage is based on the cost of coverage for one child, regardless of how many children the employee has.

Supplemental Life Rates for: Employee Spouse Age Range Rate per $1k Rate per $5k 15 to 24 $0.07 $0.35 25 to 29 $0.08 $0.35 30 to 34 $0.09 $0.40 35 to 39 $0.14 $0.45 40 to 44 $0.23 $0.70 45 to 49 $0.40 $1.15 50 to 54 $0.71 $2.00 55 to 59 $0.92 $3.55 60 to 64 $1.34 $4.60 65 to 69 $2.32 $6.70 70 to 74 $3.93 $11.60 Child rate is $0.22 per $1k. Premium paid for child coverage is based on cost of coverage 75+ $0.07 $19.62 for one child, regardless of how many children covered.

Short-Term Disability (STD) There are times when either through illness, medical procedures, or pregnancy, your physician may put you out on disability. This company paid benefit allows you to continue receiving income while on leave. Basic Features • Provides income while you are disabled due to an off-the-job incident. • Upon approval, 60% of your weekly earnings will be paid, not to exceed $3,462 per week. • There is no income tax on short-term disability payments. How it works • If you reside in a state that has State Disability Programs (CA, NJ, NY, RI, and HI), the State Disability Insurance is the primary insurance. Any payments from Unum will be coordinated with any disability payments received from the state. • If your state does not have a disability program, you apply once the waiting period has passed. The waiting period starts from your first day of leave. • California employees have a 30 day waiting period before STD begins. • Non-CA employees have a 14 day waiting period before STD begins. • Employees can use PTO during the waiting period. • Can use PTO during the leave to make the pay ‘whole’.

Long-Term Disability Basic Features • Starts after 180 days. • Benefits are paid until you are able to return to work or until you turn 65. • There is no income tax on long-term disability payments. How it works • You submit a long-term disability claim with your physician’s diagnosis included stating that you are not able to work due to a disability. • Upon approval you will receive 60% of your monthly base pay earnings to a maximum of $15,000 per month. • Benefits will be reduced by any income received from the following sources: • Social Security Disability Benefits • Workers Compensation Benefits • Unemployment • State Disability Programs

Workers Compensation Workers' Compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. • If you get hurt while at work, tell your manager right away when an incident occurs. • If your claim qualifies for Workers Comp, you can get weekly payments (similar to short-term disability insurance), as well as reimbursement or payment of medical expenses.

Retirement Plan Fidelity 401(k) Basic Features • Allows you to contribute money into a retirement account tax-free. When you retire you use the money to supplement social security and/or any pensions that you may have. • All employees are eligible to participate in the plan if they are at least 21 years old. • All eligible employees are enrolled into the plan with a contribution amount of 6% of their salary. To opt out, you will need to log onto the Fidelity website and enter a contribution amount of $0. • Can pick funds or have Fidelity pick funds for you based on age, comfort level, etc… • Payroll deductions typically begin the second pay period after you enroll. How it works • To begin the enrollment process go to www.401k.com. Once you have registered you pick the funds you want to invest in, the percentage contribution you want from each paycheck, and how you want your contribution allocated. • Fidelity should have your information from Topcon within 7-10 working days of your start date. • Topcon will match 50% on the first 6% base salary. The vesting period for this is three years. • Can contribute from 1% to 85% of your eligible pay on a pretax basis up to the IRS limit (currently $18k for 2016). If you are over 50 you can contribute an additional $6,000 to the plan.

Work Life Balance Time Off • All employees start accruing Paid Time Off (PTO) from their first day, with three weeks of PTO total after the first year. • You are allowed to accrue up to 1 ½ times your annual amount Years of PTO Holidays Total Completed and Service Floating Less than 3 15 11 27 3-9 years 20 11 32 10+ 25 11 37

Company Paid & Floating Holidays 2016 Company Paid Holidays New Years’ Day Friday, January 1, 2016 Presidents Day Monday, Feb. 15, 2016 Memorial Day Monday, May 30, 2016 Independence Day Monday, July 4, 2016 Labor Day Monday, Sep. 5, 2016 Thanksgiving Day Thursday, Nov. 24, 2016 Day after Thanksgiving Friday, Nov. 25, 2016 Christmas Day Monday, Dec. 26, 2016 Three floating holidays are available to employees hired before July 1. These must be used before year-end. They do not carry over.

Company Paid & Floating Holidays Payroll -Top Five Questions! 1. When am I paid? Topcon employees are paid Friday’s on a bi-weekly basis 2. How do I sign up for Direct Deposit and how long until it goes into effect? Direct deposit can be set up in Workday. It generally takes 1-2 pay periods before the direct deposit goes through. Until then, you will receive a live check 3. Are Benefit Deductions taken from my paycheck? Benefit deductions are taken out on a bi-weekly basis as well 4. What if I opt out? When is the $200 benefit deposited? The opt-out contribution for those who waive healthcare is deposited once a month 5. How do I change tax deduction information? You can go into Workday at anytime and change your deductions

Life Happens, so don’t forgot to tell us if you… •Get married •Get divorced •Have a baby •Adopt a child •Have a custody change of an eligible dependent •Lose coverage due to the death of a spouse or domestic partner •Change or lose coverage due to a spouse’s or domestic partner’s employment •Have a dependent turn 26 The above are considered qualifying events and allows you to make changes to your benefits outside of open enrollment. You will need to furnish proof of the qualifying event before changes can be made (i.e. birth certificate, marriage certificate, letter showing loss of coverage, etc..) You have 31 days from the date of the event to make changes in the workday system. You will need to log on to Workday and use the “Benefits” > “Change” option to request changes.

Contact Information Coverage Carrier Group # Website Phone # Medical Blue Shield W0051697 www.blueshieldca.com (855) 599-2649 Medical Kaiser 36011 www.kp.org (800) 464-4000 Medical Dean HMO 127N1VB www.deancare.com (800) 279-1301 Dental Guardian 325096 www.guardiananytime.com (800) 627-4200 Vision EyeMed 9900887 www.eyemed.com (866) 723-0513 Basic Life and Unum 519132 www.unum.com (800) 421-0344 Disability Voluntary Life Unum 411187 www.unum.com (800) 635-5597 Accidental / Critical Unum R0616185 www.unum.com (800) 835-5095 Illness Insurance 401(k) Fidelity Investments 58251 www.fidelity.com (800) 835-5095 HSA, FSA, DFSA, Benefit Resource Medical www.benefitresource.com (800) 473-9595 Commuter

Questions? If you do not have any questions you are now ready to enroll in benefits! .