Board Policy 504 • Insurance and Retirement Benefits

Board Policy No. 504

Title: Insurance and Retirement Benefits

Purpose: To define benefits available through the cooperative.

Scope: This policy applies to all regular full-time and retired employees.

Policy: One of the greatest assets of any company is its employees, their efforts and cooperation. In recognition of this, together with our interest in the welfare of each employee, certain benefit programs have been established. A brief summary of our insurance and retirement programs is outline below:

The cooperative maintains a comprehensive insurance program which offers Life, Long-Term Disability, Dental, Vision and Medical coverage for the benefit and protection of all eligible employees. The cooperative shares in the cost of premiums for medical and dental coverage for all eligible employees and their dependents. Supplemental Life insurance for dependents is available at the employee’s expense. No dependent coverage is offered for Long-Term Disability.

If a regular full-time employee retires after having reached his or her 62nd birthday, or 30 years of service, he or she may continue medical insurance coverage in accordance with the terms of the plan. Should coverage be continued, payment of the full premium is the responsibility of the retiree. If payment for premiums is not made promptly, the retiree’s coverage shall be discontinued.

Once medical insurance coverage for a retiree ends for whatever reason, the retiree will no longer be permitted to elect coverage or participate again under the plan.

In the event of the death of the retiree, the spouse and dependents may continue coverage in accordance with the plan. Payment of the full premium is the responsibility of the surviving spouse and dependents and may be paid directly to the health insurance plan or to the cooperative. If payment for premiums is not made promptly, the coverage shall be discontinued with no reinstatement option.

If an employee retires or terminates before their normal full retirement age, his or her medical insurance coverage may be continued in accordance with applicable COBRA laws and regulations.

This policy shall not be deemed a term or condition of employment or a contract between the cooperative and any current employee or retired employee. The cooperative reserves the right to alter, amend or abolish this policy or any benefit at any time.

Complete details of these benefits are provided in the Summary Plan Description. Any questions pertaining to benefits should be directed to the Manager, Human Resources.

The Merill Lynch Retirement and Savings Plan (401K) provides for employee/employer participation. The cooperative will make a matching contribution up to 3% of the employee’s base salary. Employees may make an additional voluntary contribution not to exceed the legally allowable amount.

The cooperative maintains and provides the NRECA Retirement and Security Plan for eligible employees. This is a defined benefit pension plan with a normal retirement date of 30 years in the plan or age 62, whichever comes first. The cooperative covers the entire cost of this plan.

Exceptions:

There will be no exceptions to this policy without the approval of the Board of Trustees.

The Summary Plan Description for the NRECA Retirement and Security Plan may be reviewed upon request from the Manager, Human Resources.

Responsibility:

Implementation of this policy shall be the responsibility of the Executive Vice President and CEO and/or his designated representative.