BENEFIT SUMMARY FOR 2006

Following is a summary of C.L. Frates and Company employee benefits for 2006, effective January 1, 2006.

Insurance
New hires eligible after 30 days; preexisting condition clauses may apply

Health, Medical and Prescription Drugs- 01/01/2006 – 12/31/2006

C. L. Frates and Company Self-Insured Health Plan

PPO Managed Care Health Plan (Refer to plan benefit schedule)
Oklahoma Network is PPO Oklahoma; elsewhere CCN.

      Option A

In-Network: $1,250 single; $2,500 family – annual deductible

Out-of-Network: $2,500 single; $5,000 family – annual deductible

After deductible, you pay 20% in network, 40% out of network

Maximum out of pocket in-network $5,000 single, $10,000 family

Maximum out of pocket out-of-network $10,000 single, $20,000 family

      Option B

In-Network: $2,500 single; $5,000 family – annual deductible

Out-of-Network: $5,000 single; $10,000 family – annual deductible

Other Coverage: After deductible, you pay 20% in network, 40% out of     
       network

Maximum out of pocket in-network $5,000 single, $10,000 family

Maximum out of pocket out-of-network $10,000 single, $20,000 family

Prescription drug benefits are accessed through Script Care discount
        network.

               This is a “Qualified High Deductible Health Plan” offering corresponding Health Savings Account (HSA) options with discretionary company contributions.  HSAs are an exciting new method for managing health care costs now and over the long term.  (See “Cafeteria Plan” under voluntary benefits for details.)

Premiums for this benefit are company paid at 100%.

Dental – 01/01/2006 – 12/31/2006

C. L. Frates Self-Insured Dental Plan
 

$50 / person annual deductible; $150 / family annual maximum deductible

100% covered – diagnostic / preventive services

80% covered – basic procedures

50% covered – major procedures

$1000 maximum / year / person

Premiums for this benefit are company paid at 100%.

Life / AD&D – 01/01/2006 – 12/31/2006

Hartford

$25,000 Life Insurance and $25,000 AD&D provided by Company. 

Premiums for this benefit are company paid at 100%.

Short Term Disability – 01/01/2006 – 12/31/2006

C. L. Frates Self-Funded Plan

Graduated benefits during first three years of service, full benefits thereafter.

Costs for this benefit are company paid at 100%.

Long Term Disability – 01/01/2006 – 12/31/2006

Hartford

60% of basic monthly earnings to maximum benefit of $8,000 / month after 90 days of qualified disability. 

Premiums for this benefit are company paid at 100%.

Employee Assistance Plan – 01/01/2006 – 12/31/2006

Alliance Work Partners (AWP)

Direct access to private counseling services is available to employees and those who reside in their household.  Six sessions per individual, per event, per year are available without charge.  Access to limited legal services is also provided.

Premiums for this benefit are company paid at 100%.

Paid Leave Benefits

Bank of Days:

Year of hire, prorated leave to end of calendar year

1 through 5 years (full calendar years) of service – 20 days leave

6 through 14 years of service – 25 days leave

15 or more years of service – 30 days leave

Leave time is made available and is to be used on a calendar year basis. A 5 day carryover of unused leave to the next calendar year is allowed.

Holidays

The company observes the following annual holidays:
 

New Year’s Day

Memorial Day

Independence Day

Labor Day

Thanksgiving and the Friday following

Christmas Day

Floating Holiday – to be designated annually

Tuition Reimbursement – 01/01/2006 – 12/31/2006

Available for approved courses that benefit your position and professional development with the company, according to policy guidelines.  Designation Currency training also available in most professional disciplines.

Optional Benefits, which may be selected. Payment for these benefits will be by payroll deduction.

Retirement Savings and Thrift Plan – 01/01/2006 – 12/31/2006

ING

Employees may enroll and initiate participation at time of hire, or on any subsequent calendar quarter thereafter.  Current participants may make contribution changes at the beginning of any calendar quarter: January 1, April 1, July 1, and October 1.  Employees may contribute $15,000 in 2006; those 50 years of age and over may contribute $20,000.  Ample and varied fund selections offered.

Employer Matching Contribution is 100% of the first 1% through 6%, of the Employee Contribution.  This is a discretionary contribution on behalf of the Company.

Voluntary Supplemental Term Life – 01/01/2006 – 12/31/2006

Hartford Life Insurance Company

Additional term life insurance is available at time of hire.  Limited “guarantee issue” amounts are available during the first 30 days of employment.  During annual open enrollment, elections become subject to the carrier’s evidence of insurability guidelines.  Employee maximum is 5 X salary up to $300,000; Spouse Coverage and Child Rider also available.

AD&D Supplemental Coverage – 01/01/2006 – 12/31/2006

Unum Provident Life Insurance Company

Coverage may be elected for employee only or family in amounts with various limits up to $350,000.  Enrollment forms for additional AD&D coverage are available.

Cafeteria Plan – 01/01/2006 – 12/31/2006

Cafeteria Plan voluntary elections are made at time of hire and annually thereafter.  Cafeteria plan voluntary benefits are paid for as payroll deductions on a “before tax” basis.  Cafeteria plan options include:

Health Savings Accounts (HSA)

An employee-owned savings account funded with tax-free dollars to use for current health care expenses, or to retain for future needs and uses. When used for allowable out-of-pocket health, dental and vision expenses, withdrawals, including investment earnings, are tax free.  Combined Employee and Employer discretionary annual contributions are allowed up to annual qualified Health Plan deductible amounts.

Option A –

Single – Limit of $1,250
Family – Limit of $2,500

Option B –

Single – Limit of $2,500
Family – Limit of $5,000

HSA Catch-up Contribution

Maximum of $700 per year for 2006

Flexible Spending Accounts

Annual pre-tax amounts you elect to set aside from compensation to fund an account for eligible out-of-pocket medical, dental, vision expenses incurred within the calendar year.  Any amounts remaining unused at end of plan year are forfeited.

Medical/Dental/Vision Expense Reimbursement FSA

Available to employees who are not eligible for an HSA

Limit of $4,800 per year

Dental / Vision Expense Reimbursement 
FSA 

Same as above, except plan excludes medical expenses in order to meet HSA qualification guidelines.
 

Available to employees who are enrolled in an HSA

Limit of $4,800 per year

Dependent Care FSA            

Annual pre-tax reimbursement of qualified dependent care costs incurred during the plan year.  Forfeiture rules apply.

Maximum this plan year - $5,000

(If married and filing taxes separately, $2,500 is maximum.)

Premium Conversion – 01/01/2006 – 12/31/2006

Allstate / American Heritage / Primary Vision Care Services

Cancer                                         Various benefit levels and limits

Heart-Stroke                                 Various benefit levels and limits

Vision                                           Participating Oklahoma Optometrists;
                                                     corrective vision care benefits       

NOTE:  If enrolling in premium conversion, request enrollment materials and forms. 

C.L. Frates and Company
An Equal Opportunity Employer