benefit plans 

rt WHAt cHAnGes Are BeinG iMPleMented By rtAM to tHe Benefit PlAns, effectiVe APril 1, 2012? submitted by Johnson inc.

The RTAM Benefits Committee has completed the annual renewal process and benefit plan design review with advice from the Plan Administrator, Johnson Inc. We would like to take this opportunity to review the changes that are effective for the upcoming policy year April 1, 2012 through to March 31, 2013.

There are no major changes to the plan. RTAM continues to offer members the choice of any of the following voluntary insurance coverages: Emergency Medical Travel Extended Health Care (EHC) with two Drug Plan Options (Core $500 or Enhanced up to Pharmacare deductible) Dental Care Stand Alone Trip Cancellation/Interruption/Baggage Long Term care Guaranteed or Term Life Insurance Home Insurance

The changes are described in detail below, including a new MEDOC Travel Plan for Members who travel for shorter durations.

“Premier” Medical Emergency Medical Travel Plan (Regular Members)

RTAM’s “Premier” Emergency Medical Travel Plan continues to be an important benefit to Members, providing coverage to over 3,500 RTAM members and their family members. The underwriter, Desjardins Financial Security (DFS) has maintained the current premiums for the policy year April 1, 2012 – March 31, 2013.

The “Premier” Plan benefits will be continued to be offered to Regular Members as follows: 100% of eligible expenses in the event of a sudden and unforeseen emergency Multiple trips of 62 days duration Optional per trip supplementary travel extensions to 182 days Lifetime maximum of $2,000,000 per insured person Up to $7,000 of non-refundable expenses for trip cancellation (before departure) and trip interruption (after departure) Lost/Delayed Baggage benefit of $350 per trip Automatic annual renewal of coverage for the upcoming policy year April 1, 2012 through March 31, 2013 Eligibility includes Regular RTAM members and Associate members who joined the Plan before April 2012 No evidence of good health is required on first application for coverage

Please Note: Members who have terminated RTAM’s “Premier” Plan and wish to re-apply for Emergency Medical Travel coverage on or after June 1, 2012, must submit evidence of good health. Johnson will be notifying by mail all Regular RTAM Members who are not currently a “Premier” Plan member. Members will have the opportunity to re-apply for this coverage without evidence of good health prior to June, 2012.

New “MEDOC” Emergency Medical Travel Insurance Plan (Associate and Regular Members)

For all RTAM Associate Members and for Regular Members who may travel for shorter durations, RTAM is launching a new option: “MEDOC” Travel Insurance, which is designed by Johnson Inc. and underwritten by Royal Sun Alliance.

MEDOC offers the following coverage: Comprehensive year round travel insurance up to $5,000,000 for multiple trips up to 17 or 35 days each under the Base Plan Supplementary coverage for single trips longer than 35 days each during the policy year Up to $8,000 Trip Cancellation, Interruption & delay Insurance per insured person, per trip Access (guaranteed issue with short form questionnaire ) for all members regardless of age or health status or date of application Optimum, Preferred, or Standard Health Options covering pre-existing conditions that are stable for 90 days prior to booking your trip for Trip cancellation Insurance Automatic annual renewal of coverage at Standard rates, with Optimum and Preferred discounts subject to

Johnson Inc. rep, John Crouse and RTAM Benefits Committee. completion of Health Option Questionnaire

Extended Health Care

For the upcoming policy year April 1, 2012 through March 31, 2013, Extended Health Care Plan monthly premium rates will remain the same for both prescription drug plan options: Core - $500 annual maximum - $53.00 single and $99.00 family Enhanced – annual maximum equal to the income tested Provincial Pharmacare deductible (to a $10,000 family maximum of $10,000) Core Drug Plan Option

To maintain the current rates on the Core Plan with a $500 maximum, RTAM’s Plan Administrator Johnson Inc. is introducing four (4) new cost control features effective April 1, 2012: Eligible prescription drug expenses reimbursed by the RTAM Core Plan will be based on the Manitoba Drug Benefits and Interchangeability Formulary. Currently, the RTAM Core Plan reimburses all drugs requiring a prescription by law, including some drugs that may not be on the Manitoba Drug Benefits and Interchangeability Formulary. Effective April 1, 2012, the Plan will pay 80% of eligible drugs, based on a maximum dispensing fee “cap” of $6 per prescription. A maximum 8% mark-up to the manufacturers’ list prices will apply to eligible drug expenses. In order to adjudicate drugs electronically on the basis of the Manitoba Drug Benefits and Interchangeability Formulary, Johnson will require a copy of your completed Pharmacare application form.

Please Note: Current Core Plan members who require a higher drug plan maximum than $500 have the option of upgrading to the following Enhanced Drug Plan coverage at the beginning of a policy year, April 1, without evidence of good health. Enhanced Drug Plan Option

The Enhanced Drug Plan benefits and premiums remain the same. The Enhanced Pharmacare Deductible plan continues to offer a higher drug maximum equal to the Pharmacare Deductible. It also includes higher paramedical practitioner maximums ($500 per practitioner per year, compared to $300 per practitioner per year in the Base plan), and a higher Private Duty Nursing maximum ($3,000 every three years, compared to $1,500 every three years in the Base plan). To enroll in the Enhanced Pharmacare Deductible plan option, Johnson requires a signed written request along with a confirmation of your most recent annual deductible (based on the prior year’s income) from the Manitoba (or your province of residence) Provincial Drug Program, as applicable, along with your completed application form. The Enhanced EHC/drug plan premium is based on your annual deductible applicable under your provincial Pharmacare plan at the time of Member application.

Please Note: For those Plan participants who do not spend enough on drugs to reach their Manitoba Pharmacare deductible, it may be more prudent to elect the $500 annual Prescription Drug maximum, as the premiums rates would be lower, and the participant would still have access to the other benefits provided by the RTAM Benefit Plan.

Premium Rate Changes

There are no premium rate changes to Extended Health Care or the RTAM “Premier” Emergency Medical Travel Insurance Plan effective April 1, 2012. Dental Care Premium rates increase by 3.5% to reflect increases in payment values under the Manitoba Dental Fee Guide. MEDOC is a new benefit, and Standard, Preferred or Optimum premium rates are determined by the completion of the Health Option Questionnaire. Plan Member Notification and Contact Information

Johnson Inc. will be mailing a renewal notification to all Plan members, including confirmation of coverage, a Plan Summary and premiums for the coverage you have selected.

For inquiries on any of the above Plans, please contact our Plan Administrator Johnson Inc.

Toll-free at 1-877-989-2600.

For complete Health and Dental Plan details, please refer to the governing documents, your Certificates of Insurance available on the website: www.johnson.ca/rtam.