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As previously communicated, on January 1, 2011 you Key elements under the new Flex Plan
will join the benefits and retirement plans offered by
Schneider Electric in Canada (“Schneider Electric”). The • Prescription drugs: Flex Plan pays between 50% and
current benefits plan and RRSP arrangements offered 90% of the cost of prescription drugs depending on
to you will be terminated effective December 31, 2010 the Health option you choose.
as we will be moving to a new flexible benefits plan and
a defined contribution pension plan. This newsletter • Dispensing fee cap: Flex Plan pays $6.50 towards the
presents a high-level view of what you can expect and cost of the dispensing fee. You will be responsible for
what actions you will have to take. paying any additional cost.
Schneider Electric’s Flexible Benefits Plan • Non-drug medical expenses: Flex Plan pays between
50% and 100% of non-drug expenses depending on
Schneider Electric recognizes that each employee has the Health option you choose.
different needs. A healthy single person may have fewer
health and dental expenses than an employee with a • Dental services: Preventive, basic, endodontic and
family. That is why Schneider Electric offers a Flexible periodontic services are covered between 70% and
Benefits Plan (“Flex Plan”), designed to meet your 90% depending on the Dental option you choose.
needs today and in the future. In addition, the new
flexible benefits plan encourages you to take ownership Enrolling in the Flex Plan
of your benefits decisions and select the benefits
coverage that is appropriate for you and your family. At enrollment, you will be responsible for choosing your
coverage status, Health and Dental options, and other
Schneider Electric’s Flex Plan offers Company-paid life optional benefits. Your benefits will take effect on
insurance and accident insurance for employees, a January 1, 2011.
Company-paid short-term disability plan, an employee-
paid long-term disability plan, and Company-paid out-of- You will only be able to make changes in time for the
country/province emergency medical coverage. You can next re-enrollment date at the end of 2011, with an
also buy increased life and accident insurance for effective date for January 1, 2012. Future re-enroll-
yourself and life insurance for your dependents. In ments will occur every two years thereafter. However,
many respects the Flex Plan offers similar coverage to if you experience a life event during the year, such as
your current plan, but with more choices. getting married or having a baby, you will be able to
make changes within 31 days of the life event.
The Flex Plan has three Health Care and three Dental
Care options as shown on page 3. You will have the Schneider Electric’s Flex Plan is administered by Sun
possibility to choose: Life Financial, which provides your current benefits
coverage. You will continue to have access to the online
1. Single coverage – for yourself only; Sun Life Plan Member Services.
2. Single + 1 coverage – for yourself and one other
eligible dependent, either a spouse or a child; and Your 2010 claims
3. Family coverage – for yourself and at least two other
eligible dependents. All claims for health and dental expenses incurred
before December 31, 2010 must be submitted under
Please note: You will be able to opt out of Health your current plans and filed by January 31, 2011.
and/or Dental coverage as long as you can prove Please follow the usual claims procedures.
comparable spousal coverage.
Schneider Xantrex 4pg 10/19/10 4:32 PM Page 2
Costs and flex credits for the Health and Dental options
In the Flex Plan, you and Schneider Electric share the cost of the Health and Dental coverage. Schneider Electric will
assist you to pay for this coverage by providing flex credits. You receive monthly flex credits (a dollar amount) based on
your coverage status and on the type of selected coverage.
Single coverage Monthly health Monthly health Monthly dental Monthly dental
credit cost credit cost
Single +1 coverage
Family coverage
• If you choose the lowest level of coverage (Option 1), Your option choice – things to consider…
your flex credits will cover the cost of your premiums
and you will have flex credits left over. • Do you anticipate any unusual expenses in the coming
year? Will your child need extensive Dental work done
• If you have flex credits to spare, you can transfer them or braces? Will you need massage therapy or
to your Health Care Spending Account (HCSA) to chiropractic help?
purchase any product or service allowed as a medical
expense by the Income Tax Act (Canada). At the end of • Do you have Health and Dental coverage under your
the calendar year, you may carry forward any unused spouse’s plan? If yes, you are eligible to opt out of
flex credits for one additional year. Alternatively, you Schneider Electric’s coverage in case you are not
can transfer your remaining flex credits to the Group interested in having additional coverage.
RRSP or cash them out (less withholding taxes).
• If you choose to opt out, you cannot choose Schneider
• If you choose higher levels of coverage (Option 2 or Electric’s Health or Dental coverage again until the next
Option 3), your flex credits will pay part of your re-enrolment period, unless you experience an eligible
premiums. You will be responsible for paying the life event. Visit the Sun Life website for details.
difference through payroll deductions.
• If you choose to opt out, you lose the ability to claim up
• If you opt out of the Flex Plan based on proof of to 100% of your eligible Health and Dental expenses
comparable spousal coverage, you will receive the under both the Schneider Electric Flex Plan and your
allocation of flex credits based on the coverage status spouse’s plan, if you currently coordinate benefits.
that you have selected. The respective flex credits can
be further directed to your Health Care Spending
Account, or to the Group RRSP, or can be cashed out
as taxable cash.
2
Schneider Xantrex 4pg 10/19/10 4:33 PM Page 3
Benefits Basics
Annual limit for all dental services combined $1,000 $1,500 $2,000
Benefit amount 2 X annual earnings ($700,000 max combined with Optional Life)
Non-evidence maximum $700,000
3
Schneider Xantrex 4pg 10/19/10 4:33 PM Page 4
• Decide how much to save for retirement in the Plan In the meantime, if you have any questions or concerns
• Make investment decisions from the fund line-up about the benefits and pension harmonization process,
©2010 Schneider Electric Industries SAS. All Rights reserved.
• Use available information and decision-making tools please contact your HR business partner.
• Monitor your contribution room and limits
This brochure provides a summary of the changes in benefits.
• Seek investment advice from an appropriately
Every effort has been made to ensure the accuracy of this
qualified individual
brochure, however in the event of a conflict the provisions of
• Pay investment management fees (IMFs)
the terms of the plan text will apply. The Flex Plan may be
subject to change in order to comply with legislation.
What happens to the current RRSP In addition, Schneider Electric reserves the right to terminate,
arrangement? suspend, withdraw, amend or modify all or part of the Flex
Plan at any time.
Effective December 31, 2010, the Company will stop
Schneider Electric Canada Inc.
contributing to the current RRSP arrangement and will
offer you the opportunity to participate in the Defined 19 Waterman Ave.
Toronto, Ontario
Contribution (DC) component of the Pension Plan. M4B 1Y2
4 Tel: (416)752-8020
http://www.schneider-electric.ca September 2010