BENEFITS - PRACTICE 1

Health and Life Benefits for Employees

WHAT

TVA provides comprehensive health and life benefits which offer many options to TVA annual employees. These benefits include:

• Medical plan, with various levels and options, for full- and part-time annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Medical plan, with various levels and options, for retired employees.
• Dental plan for annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Federal Employees' Group Life Insurance (FEGLI) for full-and part-time annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Optional FlexBenefits life insurance for full- and part-time annual Management and Specialist and Salary Policy employees.
• Optional Choice Plan life insurance for full- and part-time annual Trades and Labor employees.
• Core life insurance for full- and part-time annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Accidental death and dismemberment insurance for full- and part-time annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Core long-term disability plan for full-time annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Optional long-term disability plan for full- and part-time annual Management and Specialist, Salary Policy and Trades and Labor employees.
• Health Care and Dependent Care Flexible spending account plans for full- and part-time annual Management and Specialist, Salary Policy and Trades and Labor employees.

WHO

These Management and Specialist, Salary Policy and Trades and Labor employees are eligible for benefit plans available through the TVA Employee Service Center or their Human Resource Representative:

• Full-time annual employees.
• Part-time employees who are regularly scheduled to work at least 16 hours a week.

These employees are not eligible for TVA's insurance plans:

• Part-time annual employees who are regularly scheduled to work less than 16 hours a week.
• Hourly employees.

WHY

TVA recognizes the importance of quality and competitive health and life benefits for its employees.

HOW

HOW BENEFIT PLANS ARE MADE AVAILABLE

Annual Management and Specialist and Salary Policy Employees

Medical, dental, life and disability benefit plans for Management and Specialist and Salary Policy employees are made available through the FlexBenefits program. The FlexBenefits program allows these employees to choose among benefit options which best suit their financial situation and lifestyle within the constraints of the plan's design.

Annual Trades and Labor Employees

Medical, dental, life and disability benefit plans for Trades and Labor employees are made available through the Choice Plan. The Choice Plan allows these employees to choose among benefit options which best suit their financial situation and lifestyle within the constraints of the plan's design.

COST

TVA's health benefit programs are based on cost-sharing between the company and the employees participating in these programs. TVA provides core life and disability coverage at its expense. Optional life, accident, and disability insurance is available to employees at their expense. Refer to the specific plan handbook for detailed information.

MEDICAL PLAN

The FlexBenefits Program and the Choice Plan offer a variety of options with the following differences:

• Copayments.
• Deductibles.
• Out-of-pocket maximums.

Refer to the Employee Benefits page on TVA's internal network for additional information on plan benefits.

DENTAL COVERAGE

The FlexBenefits Program and the Choice Plan offer three options with the following differences:

• Copayments.
• Annual plan maximums.
• Covered services.

Refer to the Employee Benefits page on TVA's internal network for additional information on plan benefits.

LONG TERM DISABILITY COVERAGE

A core long-term disability plan for each full-time annual Management and Specialist, Salary Policy and Trades and Labor employee with less than five years' creditable service provides for 30% of the employee's high three-year average annual pay, with a maximum benefit of $6,000 per month. Permanently disabled employees with five or more years of creditable service may be eligible for disability benefits through the Tennessee Valley Authority Retirement System.

The FlexBenefits Program and the Choice Plan offer full-time annual Management and Specialist, Salary Policy and Trades and Labor employees the option to purchase an additional 35% of long-term disability coverage, to bring their total coverage up to 65% of the employee's high three-year average annual pay, with a maximum benefit of $6,000 per month.

LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE

FEGLI Coverage

The Federal Employees' Group Life Insurance Plan (FEGLI) offers all Management and Specialist, Salary Policy and annual Trades and Labor employees the opportunity to participate in various life insurance plans, including dependent life insurance. Details of the FEGLI plans are provided when employees begin work with TVA and during FEGLI open enrollment periods.

Core Life Insurance for Management and Specialist, Salary Policy and Trades and Labor Employees

All full- and part-time Management and Specialist, Salary Policy and Trades and Labor employees automatically receive a level of company-paid life insurance coverage through the FlexBenefits program or the Choice Plan. They also can choose optional life, accidental death and dismemberment, and dependent life insurance plans, and they may participate in both the FlexBenefits program for Management and Specialist, Salary Policy employees or the Choice Plan for Trades and Labor employees and the FEGLI plans if they wish. These plans available through FlexBenefits or Choice Plan are separate from the FEGLI plans. Details of the insurance plan are provided when eligible employees join TVA and in connection with annual open enrollment periods.

FLEXIBLE SPENDING ACCOUNT PLANS

These accounts allow eligible employees to pay for certain out-of-pocket health care and dependent care expenses on a pre-tax basis. There are two types of accounts:

• Health Care Account -- Eligible expenses are health care costs for you and your dependents. These dependents do not have to be covered under the Flex Medical or Dental Plan. You agree to reduce your salary by an amount which is contributed to your account tax free. You then send eligible claims for unreimbursed medical, dental, vision, and prescription charges you have paid for yourself and your dependents to the account administrator who reimburses you from your account in tax-free dollars.
• Dependent Care Account -- Eligible expenses are day care costs so that you, or you and your spouse, can work. You agree to reduce your salary by an amount which is contributed to your account tax-free. You then send eligible claims for unreimbursed babysitter, housekeeper, and day care center payments to the account administrator who reimburses you from your account in tax-free dollars.

ROLES

All Employees

• Carefully review all enrollment literature.
• Enroll for any optional plans available to them in which they wish to participate.
• Make payments for the employee share of benefit plans premiums.

Management and Specialist, Salary Policy Employees

• Carefully review all enrollment literature.
• Enroll for any FlexBenefits options in which they wish to participate.
• Participate in the annual FlexBenefits open enrollment period if they wish to change their plan options or make contributions to the Flexible Spending Accounts.
• Notify the Employee Service Center in cases of family status changes affecting participation in benefit plans.
• Make payments for the employee share of benefit plan premiums.

Trades and Labor Employees

• Carefully review all enrollment literature.
• Enroll for any Choice Plan options in which they wish to participate.
• Participate in the annual Choice Plan open enrollment period if they wish to change their plan options or make contributions to the Flexible Spending Account.
• Notify the Employee Service Center in cases of family status changes affecting participation in benefit plans.
• >Make payments for the employee share of benefit plan premiums.

Corporate Human Resources, Employee Benefits

• Responsible for overall benefit plan administration.
• Contract administration and negotiations with suppliers (partner with Procurement).

Employee Service Center

• Answer employee questions about any TVA benefit plan.
• Maintain employee benefit records and make changes as requested by the employee.

Labor Relations

• Responsible for negotiations with labor groups for benefit plans.

Procurement

• Contract negotiations with suppliers (partner with Employee Benefits).

RESOURCES

• Employee Benefits
• Employee Service Center - 1-888-275-8094
• Human Resource Representatives
• Labor Relations
• Procurement

This practice is based on various Board actions and negotiated labor agreements.

 

Last Revised 10/1999