Health and Welfare Benefits Retirement and Savings PlansThe purpose of this document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either expressor implied, guaranteeing any benefits or employment. In all cases, the plan documents will govern and this document is subject to the terms of the plans.Lincoln reserves the right to amend, suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason.
Benefit-able Contract• What is it?• A Deeper Dive• Direct Access• Validation• Incentive Trips• Compensation• Product
What is it? What it’s not?What is it? Benefits-eligible contract Statutory Employee status W-2 income What it’s not? It’s not a captive contract
2012 Benefits Overview • Basic & Supplemental Group Life & • Agents’ Savings & Profit Sharing AD&D Plan 401(k) • Spouse Life Insurance • Agents’ Retirement Plan (qualified • Child Life Insurance plan) • Long Term Disability • Top Earners Plan • Medical Coverage • Lincoln Agents’ Deferred • Dental Coverage Compensation Plan* • Vision Insurance • Discounted E&O Plan* • Health Care Expense Account • FICA Withholding & Match • Employee Assistance Program • Incentive Trips
Estimate of The Value of BenefitsProduction $55,000 $125,000 $165,000 $250,000Eligible earnings* $38,500 $87,500 $115,500 $175,000Basic life $92 $210 $277 $420Medical $13,957 $13,957 $13,957 $13,957FICA $2,950 $6,694 $8,501 $9,364401(k) $1,155 $2,625 $3,465 $5,250Retirement plan $1,925 $4,375 $5,775 $8,750Financial Profiles $2,456 $2,456 $2,456 $2,456EAP $1,500 $1,500+ $1,500 $1,500Total $24,035 $31,817 $35,931 $41,697Percentage of premium 114% 96% 92% 87% Plus – Discounted Cost for Life, DI, Vision and Dental and Deferred Compensation and Section 125 Plans * Assuming 70% payout on life production
High Deductible Plan Feature Lower Deductible Plan With HSA* Type of coverage Major medical PPO CDHP Deductible (Single/Family) $700/$1400 $1500/$3000* Out of pocket limit $3500/$7000 $4000/$8000* (Single/Family) 80% after deductible 80% after deductible Coinsurance 60% out-of-network 70% out-of-network Primary doctor $25 in-network $25 in-network after deductible Specialist visits $35 in-network $35 in-network after deductible $35 in-network after deductible/Urgent care/Emergency Room $35/$125 $125 in-network after deductible *No deductible for preventative, but all prescription drugs subject to deductible. Drug copay $10(generic), $30(Preferred), $50(Non-preferred) for 30 day supply.
2012 Medical Plan Premiums Agent Monthly Agent Monthly Contribution Coverage Contribution High Deductible w/HSA Low Deductible Single $254.50 $187.15 Broker & Spouse $776.40 $531.03 Broker & Children $696.33 $505.18 Broker & Family $978.61 $769.66 California residents in Kaiser Permanente HMO have different rates. $30/month added for tobacco usage each for agent and/or spouse. High deductible plan is not a traditional major medical plan. See benefit information for details Premium can be paid with pretax dollars.
2012 Group Life 2012 Type of Coverage Plan DetailsBasic 1x eligible annual income 1-5 times eligible annual income. Sum of basic andBroker supplemental coverage cannot exceed $2.5 million. New agent can elect supplemental life coverage under the guidelines aboveSupplemental without evidence of insurability. Maximum total basic and supplemental is $2.5 million. $10,000 to $250,000 in $10,000 increments. Spouse is limitedSpouse to 50% of employee total. Cost varies by age. $5000, $10,000, $15,000, or $20,000 available beginning at age 6 months. Monthly cost ranges from $0.215 to $0.86 perDependent $1000 unit depending on the amount of coverage requested. $5000 is $1.08/ month. $10,000 is $4.30/ month.
Supplemental Group Life PremiumsSample Rates Type of 2012 Plan Monthly Premiums CoverageBroker $40.00Supplemental Based on a $500,000 death benefit for a broker age 40-44. $8.30Spouse Based on a $100,000 death benefit for a spouse age 40-44. $4.30Dependent Based on a $10,000 death benefit for each eligible dependent child insured.
2012 LTD Benefits & Sample RatesElimination Benefit Benefit Amount Period Period 60% of income, up to $25,000 per month, 180 Days Generally to age 65 less any other source of income. Monthly premium for a broker earning $8,333 per $52.50 month($100,000 per year).
2012 Dental CoverageAnnual Maximum Benefit Per Covered Person $2,000Orthodontia Lifetime Maximum Per Covered Person $2,000Annual Deductible Per Covered Person $50Diagnostic & Preventative Care 100% Basic Restorative 80%•No deductible •Simple extractions, fillings, anesthetics,•Oral Exams, cleanings, treatments, dental sealants, endodontic, periodontalx-rays treatment, oral surgery Orthodontia* 50%Major Restorative* 50% •Orthodontic treatment including•Crowns, dentures, bridgework necessary appliances * One year waiting period for these benefits
2012 Dental Coverage Cost Type of Coverage 2012 Monthly Premium Broker $47.40 Broker & Spouse $96.10 Broker & Children $105.31 Broker & Family $168.49 *Premiums are paid with pre-tax dollars.
Vision Coverage 2012• Vision Service Plan (VSP)• Optional coverage – paid by broker – can be pre-tax.• Covers portion of eye exam, frames, lenses, and contact lenses.• Discounts for laser vision correction. Type of Coverage 2012 Monthly Premium Broker $7.45 Broker & Spouse $11.60 Broker & Children $11.93 Broker & Family $19.23
Flexible Spending Plan – Section 125On date of contract – pre-tax deductions for: Personal and dependent medical and dental coverage. Agent voluntary life. AD&D Withhold up to $5000 Eligible January 1st following contract date. Flexible spending account for medical care. Instead of Flexible Spending Plan, a Health Savings Account is offered for agents choosing the high deductible CDHP.
Employee Assistance Program• No cost to agent.• Wide range of work and life services.• Includes referrals for assistance with personal problems.
FICA PaidStatutory employee status (schedule C)Lincoln will pay 7.65% of your income to the government maximum wage base of $110,100. Lincoln will pay the Medicare payment of 1.45% for all income above the wage base.Paid on life company income.
Deferred Compensation PlanElected annuallyDeferral amount based on Paid Annualized Premium (PAP) Premier Partners Defer 5% - 100% Non Premier Partners Defer 5% - 50% Platinum Up to 100% Broker with PAP of 75k+ Up to 50% Gold Up to 100% Broker with PAP of 50k – 75k Up to 25% Silver Up to 75% Broker with PAP under 50k Not eligible Bronze Up to 75%Allocate and/or reallocate semi-monthly.Commissions and investments earnings tax deferred.Can also defer LFS earnings.Immediately 100% vested in contributions and earnings.Wide selection of investments. *Available regardless of affiliation.
Money Purchase Retirement PlanLincoln contributes 5% of covered earnings.Three-year cliff vesting for 2012 contributions.Eligible on January 1st after completing six months of service.Wide selection of investments.
401(K) PlanBroker can contribute 1% to 50% of eligible earnings up to dollar limit set by IRS.50% match up to 6% of eligible earnings.100% vested in broker contribution.50% vested in Company contributions after two years of service.100% vested in Company contributions after three years of service.Wide selection of investments.
Top Earners PlanNon-qualified supplemental benefit planContribution is made if Lincoln Financial pensionable earnings are in excess of the IRS limits. 2012 IRS limit is $250,000Lincoln will contribute 5% of excess earnings.Interest credited at same rate as fixed account in 401(k) plan.
Top Earner’s PlanNon-Qualified Additional Supplemental Benefit Based on Lincoln Net PAP RequirementsAdditional contribution amounts if pensionable earnings are in excess of IRS limit Lincoln Net PAP % Of Excess Income Requirement Contribution $100,000 - $134,999 1% $135,000 - $269,999 2% $270,000 - $539,999 3% $540,000 or more 4%
Product Premium CreditLincoln term life 100% of premium (exclude term policy fee)Lincoln fixed universal life & flex 100% up to target + 5% of excesspremium MoneyGuardLincoln single premium MoneyGuard® 15% of premium depositedLincoln variable universal life ** 100% up to target + 5% of excessLincoln fixed annuity 5% of premiumLincoln variable annuity ** 5% of initial deposits ** Production not included in PAP for representatives not with LFSC