FLEXIBLE BENEFITS

YOUR MEDICAL OPTIONS

FLEXIBLE BENEFITS

FLEXIBLE BENEFITS

You are unique. Like all of us, you have different benefit needs at different times in your life. K-C enables you to tailor your benefits to meet your own needs by offering a wide variety of flexible choices. If your situation changes, each year, you have an opportunity to select your benefits for the next year from a pool of benefit options.

YOUR MEDICAL OPTIONS

YOUR MEDICAL OPTIONS

HRA - Lowest monthly contribution; same deductibles as the PPO plan but higher out-of-pocket maximums. K-C gives you an annual allocation to your HRA to pay for covered medical and prescription expense with no deductibles, copayments, or other expenses to satisfy first, plus 100% coverage of nationally recommended preventive care. After the allocation in the HRA is depleted and deductible met, you receive an 80% level of benefit in-network (60% out-of-network). If balance not used in the HRA during the year, the remaining allocation rolls over to the next plan year plus you receive a new annual allocation. This plan has a national provider network.

PPO - Higher monthly contribution than the HRA plan; some deductibles and lower out-of-pocket maximums than the HRA plan; copays for office visits and prescription drug benefits; coinsurance for hospital-based services. You receive a 90% level of benefit after satisfaction of a deductible (70% outside the network). This plan has a national provider network.

EPO - Highest monthly contributions; no deductible; no out-of-pocket maximums; copays for office visits and prescription drug benefits. You receive a 100% level of benefit for inpatient hospital care after satisfaction of the copay. This plan functions like an HMO with a national provider network. There is no benefit for out-of-network service unless it is an emergency.

HMO - Offered at select locations; no deductible; office visit and prescription drug copays; you receive a 100% level of benefit within the network for hospital and surgical services after satisfaction of the copay. Annual out-of-pocket maximums will vary by plan; local provider network.

YOUR DENTAL OPTIONS

At some K-C locations, you even have service options under the dental plan. You can choose the standard fee for service indemnity plan or a Dental Health Maintenance Organization.

Spending accounts
Spending accounts offer you a way to save on a pre-tax basis for your health care and dependent care expenses. You estimate what your health care and dependent care expenses will be for the next year and money is deposited from your paycheck on a pre-tax basis to help you manage those expenses. You save money on your taxes and later reimburse yourself for expenses you have incurred which are not covered by other benefit plans. For example, expenses like contact lenses, office visits, prescription drug copays, or day care for your child would be covered expenses.

Disability benefits
In the time it takes you to read this section of the brochure, a person in the United States will suffer a disability serious enough to be away from work for five months or more. To help protect you, K-C offers two disability programs which provide financial assistance during a disability. The Short Term Disability Program provides 26 weeks of full or partial income at no cost to you. For longer periods of disability, the Long Term Disability Plan provides up to 70% of pay. The company pays for 60%, and you can purchase an additional 10% of coverage.

Survivor protection
No one knows what tomorrow will bring. K-C helps you prepare for the unexpected by providing three plans to help you and your survivors if you should become seriously injured or die.

• K-C provides life insurance coverage equal to your annual pay through the Group Life Insurance Plan. You can purchase additional coverage of two, three or four times your annual pay at group rates.
• The Personal Accident Insurance Plan is also available for you and your spouse. You can elect up to $500,000 coverage for yourself and up to $250,000 coverage for your spouse. This insurance provides benefits for dismemberment, disability, and death due to an accident.
• And as a salaried employee, you automatically receive Business Travel Accident Insurance equal to four times your annual base pay. The insurance provides benefits for dismemberment, disability, and death due to an accident while traveling on company business.

Long-Term care
The long-term care insurance offered through K-C allows you to choose the coverage level that best meets your needs. The insurance reimburses some of the cost of personal and skilled care needed to help you or your family members maintain their current living situation, from care at home to adult day care facilities to skilled care in a nursing home. The entire cost of this insurance is paid by you.

Educational benefits
Education plays an important part in keeping up with today’s technology. K-C recognizes how important education is to you by providing an education program that benefits you as an employee and your family. K-C provides you with an annual allotment of $3,500 for your eligible educational expenses that can be used for tuition and books. In addition, you receive a $150 annual allotment that accumulates and earns interest for education for your family (including yourself). You too can contribute up to an additional $2,400 to this fund, and K-C will match 20% of the first $200 you contribute each year. This is a headstart on saving for your and your family’s education.

Retirement benefits
Most financial experts agree that you will need to accumulate enough money over your working career to provide 60%-80% of your household income prior to retirement in order to maintain your standard of living during your retirement years. K-C offers two plans to help you save for the future.

• The Incentive Investment Plan (401K) allows you to contribute from 1% to 75% of your salary as either before-tax and/or after-tax contributions. You can then invest these contributions in up to ten professionally managed investment funds, the K-C Stock Fund, and a self-directed brokerage account. In addition, K-C matches the first 2% of pay you save at 75% and the next 3% of pay you save at 50%. That’s money the company is giving you as an incentive to save for retirement.
• There’s also the Retirement Contribution Plan. It is similar to the Incentive Investment Plan, but is totally funded by the company. K-C contributes 3.5% to 8.75% of your salary to this plan. This plan lets you invest the contributions K-C gives you on a monthly basis into the same funds available in the Incentive Investment Plan. Both of these plans are portable, so if you are vested, you can take your accounts with you if you decide to leave K-C, even if you leave before retirement.

Time off
New employees (if hired before Oct. 1) receive one week of vacation in their first year of employment. The year after you’re hired, you will receive two weeks of vacation. Additional weeks of vacation are earned depending upon your length of service. K-C also provides 10 paid holidays a year, and you can receive additional vacation days by purchasing Flex Days. You can buy up to 5 Flex Days per year, beginning with the calendar year after your year of hire. In addition, emergency leave is provided for times when you must be away from work due to unexpected personal needs.