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Benefits PenFed

2013 Summary of Benefits

Pentagon Federal Credit Union (PenFed)

Health, Dental, and Vision Insurance

  • Employees working at least 30 hours per week are eligible to participate. Employees pay a portion of the total premiums for their elected coverage on a pre-tax basis through payroll deduction. Employees may choose an individual, individual + child, or family coverage.
  • Participation is voluntary and coverage, if elected, is effective the first of the month following the date of hire.
  • PenFed pays 70 - 80% of the health insurance premium, depending on the plan and the region; employees pay 20 - 30% (except in Hawaii.) A Prescription Drug benefit is included with each medical plan.
  • Employees in most locations may elect either an HMO (closed network) or PPO option (out of network services are available at a higher cost). Health insurance is administered by Blue Cross Blue Shield, Kaiser, HMSA, or Triple S depending on the employee’s service area.
  • Employees may choose a dental EPO or traditional dental plan. The provider for both plans is Delta Dental.
  • A vision plan is offered that provides a variety of discounted services. The provider is VSP, a national network of participating doctors. Medical and Dependent Care Reimbursement Accounts.
  • Participation is voluntary. Eligibility to participate in these plans begins the first of the month following six months of employment.
  • The Flexible Spending Account Program enables employees to have a specific dollar amount withheld from their bi-weekly pay to reimburse them with pre-tax dollars for qualified dependent (child care) and/or medical expenses.
  • Employees may have withheld up to $2500 per year for medical reimbursement and up to $5000 per year ($192.30) per pay period for dependent care reimbursement. Disability Plans Participation is not elective – PenFed pays the premiums and covers all eligible employees.
  • Disability coverage (Short Term and Long Term) is effective the first of the month following six months of service. Employees are taxed only on the premium PenFed pays for LTD so that the benefit, if used, is not taxed.
  • Short-Term Disability offers assistance if an employee will be out of the office for longer than 14 days due to a medical condition. The employee is eligible for up to 11 weeks of pay benefits (equal to two-thirds of the weekly base salary). This 11 week period begins after a 14 calendar day elimination period in which the employee uses his/her own leave to cover time out of the office.
  • Long-Term Disability starts if the employee is out of the office for longer than the 11 weeks of STD benefits. The employee is then eligible for 60% of the monthly base pay, which may be supplemented with the employee’s own accrued leave. Group Term Life Insurance.
  • Coverage is effective the first of the month following the date of hire, for full-time employees or employees scheduled at least 30-hours per week.
  • PenFed’s life insurance plan provides coverage in the amount of one (1) time the employee’s salary rounded to the next higher $1,000 or $50,000, whichever is less. This program also provides for accidental death and dismemberment (AD&D) benefits. PenFed pays the premium for this basic coverage.
  • Employees have the option to purchase additional group term life insurance coverage in increments of $1000.
  • Employees also have the option of purchasing Dependent Spouse Life coverage in amounts of $25,000 or $50,000 and Dependent Child Life coverage in amounts of $5,000 or $10,000.

The combined total of PenFed provided (basic) and optional additional group term life insurance coverage may not exceed $500,000.

Sick Leave

  • Employees begin accruing sick leave as of the date of hire.
  • Full-time employees accrue sick leave at the rate of 10 days per year, regardless of their years of service. Accrued sick leave may accumulate and roll over from year to year with no cap. Sick leave has no cash value and is not paid out to an employee who terminates employment. Part-time employees accrue sick leave on a pro-rated basis based on hours worked each pay period.
  • Sick leave may be authorized to care for a sick parent, spouse or child in those situations when it is necessary for the employee to provide care to the family member.

Personal Leave

  • Employees begin accruing personal leave as of the date of hire. Personal leave accrual rates increase with years of service. Personal leave has no cash value and is not paid out to employees who terminate employment except for those employees employed in Nebraska and Puerto Rico, Maryland, District of Columbia, California. Colorado and New York.
  • There is a 300-hour (8 weeks) leave the cap on personal leave. Employees may not carry over more than 300 hours of personal leave from one year to the next.
  • The personal leave “bank” includes 10 days of leave for Federal holidays, plus additional leave (from 11 to 29 days per year, depending on years of service) for paid time off.
Years of Service Leave to be Accrued, Per Year. Holidays to be. Accrued Per Year. Total Personal Days

Accrued Per Year

  • 1st Year 11 10 21
  • 2nd Year 12 10 22
  • 3rd Year 13 10 23
  • 4th Year 15 10 25
  • 5th Year 17 10 27
  • 6th – 10th Years 19 10 29
  • 11th-14th Years 21 10 31
  • 15th-19th Years 25 10 35
  • 20+ Years 29 10 39
401(k) Thrift Savings Plan

  • All employees are eligible to contribute to the Plan at their date of hire.
  • Employees may contribute from 1-100% of their salary on a pre-tax basis, up to the IRS maximum limit each year. PenFed matches 100% of the first 4% an employee contributes. Employer matching contributions begin after 6 months of services, and vesting of the match is 100% immediately.
  • The 401(k) plan is managed and administered by Vanguard, the world’s largest pure no-load mutual fund company. There are 29 funds from which to invest to meet the financial goals of the individual, including short-term investment vehicles, bond funds, balanced funds (stocks and bonds), domestic equity (stocks) and international equity (stocks.) If you're age 50 or older in 2013, you may be able to make catch-up contributions to the 401(k) plan of up to $5,500.
Education Assistance Program

  • Employees are eligible for this benefit after 6 months of employment.
  • Full-time and Part-time employees are eligible to receive reimbursement for undergraduate, graduate, and certification courses if they are work-related. The maximum annual reimbursement per the calendar year is equal to the IRS limit per employee.
  • Full-time employees and employees regularly scheduled to work 30 or more hours a week: For graduate college-level courses: 75% of total tuition expenses or up to $100 per credit hour, whichever sum is greater. For undergraduate college-level and accredited technical and business schools: 75% of total tuition expenses or up to $75 per credit hour, whichever is greater; up to $150 for books per course and other required fees.
  • Part-time employees regularly scheduled to work less than 30 hours a week: For graduate college-level courses: 50% of total tuition expenses or up to $50.00 per credit hour, whichever sum is greater. For undergraduate college-level and accredited technical and business schools: 50% of total tuition expenses or up to $37.50 per credit hour, whichever is greater; up to $75 for books per course and other fees.
Pay Schedule

  • Each pay period is made up of two workweeks. A workweek is a seven-day period beginning at 12:00 a.m. on Saturday and ending at 11:59 p.m. the following Friday. The standard hours in each workweek for a full-time employee are 37.5 hours. There is no standard number of hours in a workweek for a part-time employee.
  • Employees will be paid on a bi-weekly basis. All changes to existing employee personnel records will be effective on the 1st day of a pay period.
Employee Assistance Plan (EAP)

  • Through the Employee Assistance Program, provided by Carebridge, free professional counseling is available to employees and their families. The EAP is available 24 hours a day, 7 days a week.
  • This program is voluntary and is designed to allow PenFed employees and their family members to seek help on their own. Confidentiality is assured. When you call the Employee Assistance Program, the problems you share with the trained counselor will never be reported to the company unless you consent to it.
  • Carebridge specializes in dealing with human problems: the kind that affects your personal well-being and your ability to perform on the job or in your life at home. These problems include legal and financial difficulties, stress, marital conflict, alcohol abuse, child abuse, aging parents, emotional and domestic problems, and any problems which may directly affect your work performance.