Connecting To Your 2014 TE Total
Rewards
New Hire Orientation
TE Total Rewards
What are Total Rewards at TE?
2
Compensation
Benefits
• Base Pay
• Health and Welfare
• Short and Long Term Incentive Pay
• Retirement Savings
• Recognition and Rewards Programs
• Employee Discount Programs
Learning and Development
Work Environment
• Training
• Access to Information
• Career Development
• Leadership Communication
• Performance Management
• Great Colleagues
TE Total Rewards Guiding Principles
3
Business Focused
Total Rewards are driven by TE’s business
objectives.
Performance Driven
Total Rewards instill and reinforce a highperforming culture.
Shared Accountability
Total Rewards programs reflect shared
responsibility between TE and its employees.
Externally Competitive
TE’s Total Rewards will be competitive with
relevant comparator groups.
Organizationally Aligned
Total Rewards support and reinforce a global
workforce across all business segments.
Simple and Transparent
Employees understand the value and design
of Total Rewards programs.
Benefits Philosophy and Core Objectives
Benefit plans are consistently reviewed to ensure they continue to meet a core set of objectives.
4
Choice
Value based
Shared responsibility
Wellness
Cost effective
Compliance
Paid Time Off Benefits
April 13, 2015
Paid Time Off
What does TE’s Paid Time Off program include?
Vacation Time
Personal Time
Paid Holidays
Additional Time Off Benefits
6
Vacation Time
• Per Pay Accrual (schedule based on 40 hours/week)
• Vacation Time occurs on a Fiscal Year calendar (October through September)
• No carry-over provision; subject to state laws; unused time will be forfeited
Years of
Service
Bi-weekly
Accrual*
Maximum Days
per Fiscal Year
0-4
3.08 hrs
10
5-10
4.62 hrs
15
11
4.93 hrs
16
12
5.25 hrs
17
13
5.55 hrs
18
14
5.85 hrs
19
15-24
6.17 hrs
20
25 or more
7.70 hrs
25
*Accrual rate is determined by hours worked and is based on years attained in the current Fiscal Year.
7
Personal Time
Personal Time: Non-California Employees
• Per Pay Accrual (schedule based on 40 hours/week)
• Personal Time occurs on a Fiscal Year calendar (October through September)
• No carry-over provision; subject to state laws; unused time will be forfeited
Type of Employee
Bi-weekly Accrual
Maximum Days per Fiscal Year
Regular, Full-Time
1.85 hrs
6
Regular, Part-Time*
0.93 hrs
3
*Part-time equals 20-29 hours per week
Personal Time: California Employees
• Eligible upon hire for 8 hours of personal time
– EXCEPTION: If hired after August 1, not eligible until new Fiscal Year,
beginning October 1
• Available to all regular, full-time and part-time employees working at least 20
hours per week
8
Sick Time (California Employees ONLY)
• Eligible upon hire
• No carry-over provision; unused time will be forfeited
Type of Employee
Bi-weekly Accrual
Maximum Days per Fiscal Year
Regular, Full-Time
1.55 hrs
5
Regular, Part-Time*
0.92 hrs
2.5
*Part-time equals 20-29 hours per week
9
Holiday Time and Additional Time Off
Holiday Time
Type of Employee
Number of Holidays per Fiscal Year
Regular, Full-Time
10
Regular, Part-Time*
4 hours pay for each holiday occurring on a
regularly scheduled work day
Additional Time Off
For information on additional time off benefits, such as Bereavement,
Family and Medical Leave, Jury Duty and Military Leave – as well as
the complete holiday listing for the current Fiscal Year – go to:
myTE > Human Resources > US > Time Away From Work
10
TE Retirement Savings and Investment Plan
(RSIP)
April 13, 2015
Retirement Savings and Investment Plan (RSIP)
• The TE Retirement Savings and Investment Plan (RSIP) is a 401(k) Plan
administered by Aon Hewitt that is designed to help you save for retirement.
• Key advantages include:
• Generous Employer match
• Tax-deferred retirement savings
• A three-tiered investment approach to make it easier to identify the investment allocations
appropriate for your:
• Risk tolerance
• Desired level of involvement
• You are eligible for the RSIP if you are:
• On a U.S. domestic payroll;
• In an employer-employee relationship with TE Connectivity and classified as a
“regular” employee; and
• At least 18 years of age
12
RSIP Highlights
Employee Contributions
• Contribute up to 35%* of eligible pay in any combination of before-tax and
after-tax money (Annual IRS limit for 2013: $17,500)
• Catch-up Contributions are available to employees age 50 and older
(Annual IRS limit for 2013: $5,500)
Company Match
Years of Service
If You Contribute
0-9
1% (or more) of eligible pay
5% of your eligible pay
10-19
2% (or more) of eligible pay
6% of your eligible pay
20-24
3% (or more) of eligible pay
7% of your eligible pay
25-29
4% (or more) of eligible pay
8% of your eligible pay
30 or more
5% (or more) of eligible pay
9% of your eligible pay
* Additional Plan limits may also apply for highly compensated employees.
13
TE Connectivity Will Contribute
RSIP Highlights
• New Hires are automatically enrolled at a before-tax contribution rate
of 5% (must be age 18 or older).
– Auto enrollment occurs approximately 30 days after beginning employment.
– Contributions are automatically invested in the appropriate Wellington Target
Date Portfolio (based on your age and an assumed retirement at age 65).
• Log on to My TE Benefits Connection at www.te.com/usbenefits or
contact the TE Benefits Center at 1-877-625-0505.
• If you want to contribute more than 5% or would prefer not to
participate in the RSIP, you must actively change your contribution
percentage (within your first 30 days).
– This contribution rate will be applied to your payroll deduction as soon as
administratively feasible and amounts contributed to the Plan prior to the
change cannot be refunded.
14
RSIP Highlights
15
RSIP Highlights
Vesting
• You are always 100% vested in your contributions.
• You become 100% vested in all Company-matching contributions and
earnings after completing 3 full years of service with TE Connectivity
OR prior to reaching three full years of service if you reach age 55,
become permanently disabled, or in the event of your death.
Annual Contribution Limits ($17,500 for 2013)
• If you contributed to a 401(k) Plan at your previous employer, you could
possibly exceed the IRS limit for pre-tax contributions.
– The annual limit is the combined pre-tax contributions from your previous
employer and TE Connectivity.
– If you exceed the IRS limit as a new hire, you can contact the TE Benefits
Center at (877) 625-0505 to request a refund.
•
16
The deadline to request a refund is March 1 of the year after you exceed the limit.
RSIP Highlights
Loans
• You may borrow from your account for any reason and you may have up to
2 loans outstanding at any time
• Minimum loan amount is $1,000; Maximum is 50% of your vested account
balance or $50,000, whichever is less
– Available loan amount is reduced by the highest outstanding loan balance you have
had in the last 12 months
• Loan terms are up to 5 years; loans taken for the purchase of a principal
residence may be taken for up to 15 years
• If you terminate employment, any outstanding loan balance must be repaid
within 60 days or it will be defaulted and considered a taxable distribution
Distributions from the Plan
• A distribution can be requested if you meet financial hardship criteria, cease
to be employed by TE Connectivity, become disabled, or pass away.
Consider consulting a tax advisor before requesting a distribution
17
TE Employee Stock Purchase Plan (ESPP)
April 13, 2015
Employee Stock Purchase Plan (ESPP)
• Administered by Computershare
• All full-time and part-time
employees are eligible
• Convenient payroll deductions
• Company matches 15% of your
contribution (up to an annual
maximum)
• Shares purchased monthly
• No vesting/holding period required
following purchase (participation may
be suspended for shares sold less then
3 months after purchase)
• No fees for purchase of stock or
maintenance of account
• Same entitlement rights as a
shareholder of TE Connectivity,
including any potential gain of the
company stock and/or dividends.
• Plan documents available on myTE
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ESPP - Contributions
• You elect a specific amount to be deducted from each regular pay
period after benefits and other deductions are withheld.
• Your contributions may only be made from your salary (bonuses,
supplemental income & commission payments are not eligible for
contributions, unless you are solely paid on commission).
• The Company match is added to your regular pay as taxable
earnings.
20
ESPP – How To Enroll
• Enrollment period is perpetual – you may elect to change your contribution
amounts at any time during the year.
– Changes to contributions become effective as soon as administratively
possible
• U.S. employees may enroll online via the Computershare website at
www-us.computershare.com/employee
Approximately 3-4 weeks following your hire date….
• Sign-on to the Computershare website using your Social Security Number and
Personal Identification Number (PIN).
• Your initial PIN will be the number 1 followed by your 2 digit month of birth and
2 digit year of birth (e.g. Dec. 1956 = 11256).
• You may also enroll through the Interactive Voice Response (IVR) system or
with a Computershare representative.
21
TE Health & Welfare Benefits
April 13, 2015
Health & Welfare Benefits Eligibility –
Employees
• You are eligible for the TE Connectivity Health and Welfare Benefit
Programs if you are:
– Scheduled to work at least 20 hours per week, 48 weeks per year;
– On a U.S. domestic payroll; and
– In an employer-employee relationship with TE Connectivity and classified as a
“regular” employee
• You are not eligible for these programs if you:
– Work outside of the United States (unless you are a U.S. expatriate);
– Are covered by a collective bargaining agreement that does not provide
coverage under these programs; or
– Are a temporary, seasonal, or leased employee or independent contractor
23
Health & Welfare Benefits Eligibility –
Dependents
24
•
Your spouse – as evidenced by a
marriage certificate or other legal
document (not eligible if legally
separated or divorced)
•
Your eligible unrelated domestic partner
(same or opposite sex) and his/her
eligible child(ren)
•
Your eligible child(ren) to age 26, as
evidenced by a birth certificate or
adoption papers
- Includes your natural child(ren);
legally adopted child(ren), child(ren) in
the process of being adopted; and/or
stepchild(ren)
Medical Plan Types/Philosophy
• TE offers 3 plan choices
• PPO Orange
• PPO Blue
• Consumer Driven Health Plan (CDHP)
• While the options differ in how they work and how much they cost, they have
one very important similarity – a focus on prevention, including:
• 100% coverage for in-network preventive care for you and your covered
dependents
• help with managing chronic conditions
• Smoking cessation programs
• 3 key differences among the plans
• deductible
• out of pocket maximums
• premiums per pay.
25
Medical Plan Options
PPO Orange
(Aetna or BC based on zip)
PPO Blue
(BC)
CDHP with HSA
(Aetna)
In-Network
Out-of-Network
In-Network
Out-of-Network
In-Network
Out-of-Network
$200/$400
$400 per person
$500/$1,000
$1,000 per
person
$1,250/$2,500
$2,500/$5,000
Cost Sharing
Annual Deductible
(Individual/Family)
Does the plan offer a Health
Savings Account (HSA)?
Maximum Contribution:
$3,300/$6,550
(Employer and Employee)
N/A
N/A
TE contributes $500/$750/$1,000
80%
65%
80%
65%
80%
65%
$2,000/$4,000
$4,000
per person
$3,000/$6,000
$6,000
per person
$2,500/$5,000
$5,000/$10,000
None
None
None
None
None
None
Preventive Care
100% covered
no deductible
65% covered
after deductible
100% covered
no deductible
65% covered
after deductible
100% covered
no deductible
65% covered
after deductible
Office Visit (PCP/Specialist)
$15/$30 copay
no deductible
65% covered
after deductible
$15/$30 copay
no deductible
65% covered
after deductible
80% covered
after deductible
65% covered
after deductible
$15 copay
no deductible
65% covered
after deductible
$15 copay
no deductible
65% covered
after deductible
80% covered
after deductible
65% covered
after deductible
$100 copay
no deductible
$100 copay
no deductible
$100 copay
no deductible
$100 copay
no deductible
80% covered
after deductible
80% covered
after deductible
65% covered
after deductible
65% covered
after deductible
65% covered
after deductible
65% covered
after deductible
65% covered
after deductible
65% covered
after deductible
Coinsurance Percentage
Out-of-Pocket (OOP) Maximum
(Individual/Family)
Lifetime Coverage Limit
Primary Care
Allergy Injections
Emergency Care
ER (For Emergencies)
- waived if admitted
ER (if used for non-emergency)
page 26
TE plans are self-insured – you and TE pay the cost of claims.
Making informed choices on the care you seek helps everyone save on costs.
How the CDHP Works
• CDHP
• offers a lower cost per pay than the two PPO plans
• higher deductible
• use your tax-free HSA dollars to help pay these out-of-pocket costs.
• Health Savings Account (HSA)
• TE contributes initial funding once account is open
• $500/$750/$1000
• Employee can contribute additional pre-tax funds
• $3,300/$6,500
• Unused HSA funds will roll over for use in later years
• HSA administered by BenefitWallet
• Special Medicare considerations
27
How the CDHP Works
page 28
Prescription Drug Plans
PPO Orange or Blue
CDHP*
(Express Scripts)
Retail
Home Delivery
30-day supply
Retail
90-day supply
(Aetna)
Home Delivery
30-day supply
90-day supply
Generic
$5
$12
$5
$12
Brand
Preferred
20% EE
20% EE
20% EE
20% EE
($25 min / $40 max) ($50 min / $80 max)
($40 max)
($80 max)
Brand
Non-Preferred
20% EE
20% EE
20% EE
20% EE
($60 min / $100 max) ($150 min / $200 max) ($100 max)
($200 max)
*Note: For CDHP, non-preventive medications
are subject to medical deductible. The
Deductible must be met before
copay/coinsurance apply.
Specialty medications are only available through Home Delivery in 30-day supplies.
page 29
Dental Plans
Administered by MetLife
Enhanced Option
Standard Option
$50 per person per calendar year for
basic and major care combined
$100 per person per calendar year for
basic and major care combined
$1,500 all services combined
(except child orthodontia)
$1,000 all services combined
100%; no deductible
100%; no deductible
Basic Services
80% after $50 deductible
60% after $100 deductible
Major Services
50% after $50 deductible
50% after $100 deductible
Dependent Children under age 19
Not applicable
50%; no deductible
Not applicable
Lifetime maximum $1,500 per child
Not applicable
Plan Feature
Annual Deductible
Annual Maximum Coverage Per Person
Preventive Care Benefits
Orthodontia
Coverage Available for Children Only
Orthodontia Benefits
Service Limits and Maximums—orthodontia
No ID card issued/needed
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Vision Plan
Administered by VSP
Plan Provision
Frequency
Co-Pay
In-network
Out-of-Network
Examination
One per
calendar year
$10
Covered in full
Covered up to $45
Lenses
One per
calendar year
$25
Covered in full for single vision,
lined bifocal and lined trifocal
lenses
Covered up to:
• $45/single vision
• $65/lined bifocal
• $85/lined trifocal
Frames or Contact
Lenses
One per
calendar year
$0
Covered up to $160
Frames covered to $70 or
Contact Lenses to $105
Discounted services on laser vision surgery are also included
No ID card issued/needed
page 31
Flexible Spending Accounts (FSAs)
• Health Care Flexible Spending Account
•
For qualified health care expenses such
as medical, Rx, dental, and vision
• Dependent Care Flexible Spending
Account
•
For eligible day care expenses for
children and/or elder care
• Limited Purchase Flexible Spending
Account
•
Applies only to CDHP with HSA and
used for dental and vision expenses
• All are administered by WageWorks
32
Flexible Spending Accounts (FSA) and Health
Savings Account (HSA)
FSA
HealthCare FSA
Paired With
Eligible
Expenses
Annual
Maximum
Dependent Care FSA
HSA
Limited Purpose
PPO Orange, PPO
PPO Orange,
Blue, Kaiser,
CDHP
PPO Blue, Kaiser
CDHP
Health care
Dependent or
Dental and vision
(medical, dental,
elder day care
only
Health Savings Account
CDHP
Health care
(medical, dental, vision)
vision)
$2,500
$5,000
$2,500
(some restrictions
may apply)
$3,300: Single
$6,550: Family
(combined TE and
employee contributions)
TE
Contribution
None
None
None
$500 / $750 / $1,000
Use or Lose?
Yes
Yes
Yes
No - amounts roll over
Tax-Free
Earnings
No
No
No
Yes
If you are in the CDHP: Before electing a Limited Purpose FSA,
you should consider contributing the maximum to your HSA.
page 33
My Wellness Connection
Dedicated “Wellness Champions” at most TE locations!
All Employees
Medical Plan Participants Only
Annual Health Risk Screening*
Annual HealthPath® Assessment
Health Advocate*
(BC or Aetna)
Weight Watchers*
Lifestyle Management
Annual Flu Vaccine
Set/Track Health Goals (StayWell)
American Heart Association Programs
* Excludes Flex Workers
34
Disease and/or Maternity Management
(StayWell)
Healthy Point$ Tracker Incentive Program
(StayWell)
Healthy Point$ Tracker Program
Both employees and covered spouses/domestic partners can earn
up to $250 for the healthy things they do every day!
•
•
•
•
•
•
•
35
Gym Membership/At-Home Fitness
Set and track a Health Goal
Annual Physical Exam
Annual Dental Exam
Annual Eye Exam
Annual Flu Vaccine/Immunizations
Enroll in a Disease Management or
Maternity Management program (for
those identified)
• Enroll in a NextSteps® program (for
those identified)
• Participate in an American Heart
Association (AHA) Walk
• Mammogram/Prostate Screenings
(for those over age 40)
• Complete HealthPath® Assessment
(HPA)
Life and Accident Insurance
• Administered by Prudential
• Company Provided (Basic) Insurances
– Life: 1x base salary, up to $1 million
– AD&D: 1x base salary, up to $1 million
– Business Travel Accident (based on salary)
• Supplemental Life Insurance
– Employee: 1x-10x base salary, up to $3 million
– Spouse/DP: $10,000 increments, up to $100,000
– Child: $5,000, $10,000 or $20,000
• Supplemental AD&D Insurance
– Employee: 1x-10x base salary, up to $1 million
– Family: 1x-10x base salary, up to $1 million
36
Short Term Disability (STD)
• Waiting period: 7 consecutive days beginning on the date your Medical
Provider states you are totally disabled (including if you are on vacation at the
time you become totally disabled). If you are at work and work less than 4
hours the day you become disabled, that day will be used as the first day of
your disability.
• After waiting period: STD Benefit is 70% of base earnings rate while
disabled, up to maximum of 180 days (including waiting period)
• STD Benefits are paid through payroll
– Benefits continue during STD with applicable payroll deductions continuing
to be withheld from pay
37
Long Term Disability (LTD)
• If you are still disabled after 180 days of disability, and you have
elected LTD coverage, you may be eligible for LTD benefits
• LTD Benefit is 60% of your regular monthly base salary (maximum
monthly benefit of $15,000) and reduced by any other disability,
income or retirement benefits
• If LTD coverage is elected, TE will share LTD premiums equally
with you
– Your contributions will be made on an after-tax basis
38
Employee Assistance Program (EAP):
1-866-519-8361
• Administered by ComPsych
• Confidential counseling service to help
address personal issues including:
-Relationships
-Parenting
-Substance Abuse
-Stress
-Anxiety
-Depression
39
-Job pressures
-Marital conflicts
-Grief and loss
-Empty-nesting
-Legal
-Financial
Health Advocate: 1-866-695-8622
• Health Advocate is an independent company made up of professionals
such as nurses, doctors, claims specialists, social workers, etc.
• Health Advocate can assist with:
– Navigating healthcare issues
– Untangling insurance claims
– Eldercare issues (Medicare, Long Term Care, Assisted Living, etc.)
– Finding the best doctors and hospitals
– Scheduling appointments with “hard-to-schedule” specialists
– And much more!
• Health Advocate is completely confidential and is available for ALL TE
employees, spouses/domestic partners, dependent children, parents
and parents-in-law.
40
Be A BetTEr Health Care Consumer…
Know your risks and manage them.
Find out costs before you go.
Know where to go for care.
Use Health Advocate.
Participate in My Wellness Connection.
41
Additional Benefits
April 13, 2015
Education Assistance Program
• Regular, full-time employees with six months continuous service are
eligible for this program
• 100% reimbursement for education tuition for successfully
completed programs (Maximum $7,500 per calendar year); Subject
to IRS tax regulations
• Courses must have proper approval prior to enrollment; must be part
of an approved degree program; and must be offered by an
accredited U.S. institution
• Apply via intranet application process
43
YouDecide Voluntary Benefits
• YouDecide.com leverages the buying power of millions of employees with leading
regional and national service providers for the most competitive rates. Take advantage
of their buying power and resources to save time and money.
Products Include:
• Insurance:
– Auto / RV
– Home / Renters
– Marine
– Pet
– Cross Border Auto
Insurance
– Disaster Mortgage
Protection
44
• Loans:
– Home Mortgage / Refinancing
– Home Equity
– Auto / Marine
• Personal Services:
– Critical Illness Insurance
– Group Legal Plan
– Roadside Assistance Plan
– Employee Discounts
Computer Purchase Program
• Interest-free loan for the purchase of a home computer
– Up to $1,500
– 10% down payment
– 12 month repayment plan via payroll deductions
• Employee is responsible for paying all taxes on the purchase
• Purchase must be made from a reputable vendor (no employee-toemployee purchases, computer shows, etc.)
• Used equipment purchases are not eligible
• Software/peripherals not included with full system package and/or
whose purpose is primarily to entertain rather than educate, will not
be eligible for purchase
45
Adoption Assistance Program
• Available to regular, full time employees with at least six months of
continuous service
• Reimbursement for up to $5,000/child for eligible expenses, such as:
–
–
–
–
46
Adoption agency fees
Legal and court fees
Travel expenses
Other adoption-related expenses
Reach Federal Credit Union
• Accidental Death & Dismemberment
(AD&D) insurance
• Annuities
• Banking
• Credit cards
• Auto loans
• Life insurance
• Home loans
• Individual Retirement Accounts (IRAs)
• Student loans
• Debt consolidation loans
• Identity theft protection
• Financial coaching
www.reachcu.coop
888-673-3288
47
Service Awards
• TE’s Employee Service Award Program honors full-time
employees celebrating career milestones, starting at the five-year
mark and occurring every fifth year thereafter
• Different gift selections are available for each service anniversary
myTE > Human Resources > US > Service Awards
48
Key Dates, Resources and Action Items
April 13, 2015
Key Dates
50
Key Resources
www.te.com/usbenefits
TE Connectivity Benefits Center
at 1-877-625-0505
51
ACTION
REQUIRED!
Actions for You to Take
1. Log on to My TE Benefits Connection (te.com/usbenefits) and
enroll in your health, welfare and retirement benefits.
If you don’t act on your
Health and Welfare Benefits…
• You will default to no coverage for
Medical, Dental, Vision, Supplemental
Life Insurance, Long Term
Disability and Flexible Spending
If you don’t act on your Retirement Savings
and Investment Plan - 401(K) Plan…
• You will be automatically enrolled in
the RSIP with a 5% contribution rate
• Your contributions will be allocated to
the Target Date Fund based on your
age and estimated retirement date
2. Send in required documentation to verify your dependents you
have added to coverage. (The Benefits Center will provide you
with fax cover sheet within a couple of weeks of your
enrollment)
52
Dependent Verification
• TE Connectivity requires proof of eligibility for all dependents
enrolled in a TE medical, dental, or vision plan (EXAMPLE: birth
certificate, marriage certificate, Affidavit of Domestic Partnership,
etc.)
• The TE Connectivity Benefits Center will coordinate the verification
process
• If documentation is not submitted, dependents will be removed from
coverage.
53
EVERY CONNECTION COUNTS