Exhibit ___ (C/BP-1)

Transcription

Exhibit ___ (C/BP-1)
Employees’ Communication
Attached are brochures (list below) that were sent to employees’
homes as part of the communication plan explaining the changes
taking place January 1, 2013, resulting from the comprehensive
compensation and benefits review.
Your Total Rewards for Con Edison Management Employees
Focus on Pay
Focus on Retirement (Final Average Pay formula)
Focus on Retirement (Cash Balance formula)
Focus on Wellness
Focus on Health
Focus on Time Off
Your Total Rewards
For Con Edison Management Employees
Your Total Rewards
Our investment in you doesn’t end with
a paycheck.
Why Did We Evaluate
Total Rewards?
We want to be sure that both you
and the company are receiving
the best value and return for the
dollars we invest in Total Rewards,
while balancing the needs of our
customers.
In fact, we invest more than $2 billion a year on Total Rewards for you and your family.
Total Rewards include your compensation (base salary and variable pay), retirement
and health-care benefits, and other valuable benefits, such as time off, work/life
balance, and career opportunities. Almost half of the $2 billion we spend on Total
Rewards goes to your benefits programs.
In 2011, we reviewed our Total Rewards to evaluate whether your compensation and
benefits are meeting your needs, are competitive in our industry, are consistent with
O&R, reflect best practices in the marketplace, and help us attract and retain the right
people. As part of this review, we:
Changes to Total Rewards

Completed employee focus groups and multiple surveys to get your feedback;
Change is never easy — especially
when it comes to Total Rewards.
These changes will affect each
person differently. They were
difficult decisions that we made
after extensive review and input.
We appreciate your continued
commitment to the company, and will
give you more information about the
details of these changes throughout
the coming months.

Benchmarked our programs to see what other utilities and metro New York
companies are doing; and

Evaluated different program options and changes to the current Total Rewards
package.
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The Result: Beginning January 1, 2013, you will see changes to the Total Rewards
package to better align our programs that are currently:

Significantly below or above market;

Not aligned with what employees value;

Not reflecting the best practices in the marketplace; or
Share These Details

Inconsistent with O&R.
In late March, you received the
same information in this brochure
in a Postmaster that was e-mailed
to you at work. We’re sending this
brochure to your home now so
that you can share these changes
with your family members. Total
Rewards includes benefits for
them — and we want them to be
part of this conversation, too.
We want to help you understand these changes and their value. In general, the Total
Rewards changes include:
1.
Vacation and Holidays. To give you greater flexibility, there will be a new
vacation policy so that you can reach the maximum number of vacation days
earlier in your career, and there will be no distinction between vested and
non‑vested vacation. You will have also have new floating holidays — which we
selected based on employee feedback — to give you greater flexibility in taking
time off.
2.
Pay. Pay remains an important — and the largest — part of Total Rewards.
Consistency in pay policies between CECONY and O&R is important to
employees. We also found that our variable pay is below market, so your variable
pay at CECONY will be increased to be consistent with the variable pay offered
at O&R. For a summary of the variable pay targets by band, refer to the Variable
Pay Table on page 7. (Note that this change will take effect with the 2012
performance period, and will be paid in 2013 based on 2012 performance.)
3.
Pension Plan. The Final Average Pay (FAP) Pension formula: Pension plan
benefits are above market for employees under the FAP Pension formula. We
will be making some changes to keep the pension plan in step with market
practices.
If you are under age 50 as of January 1, 2013, the FAP Pension formula
will change. It is important to note that the FAP plan formula changes
described in this brochure apply only to your pension benefits for your future
service, on or after January 1, 2013, and not to your earned (accrued) benefit
prior to January 1, 2013.
If you are age 50 or older as of January 1, 2013, the changes to the pension
plan benefits described in this brochure do not apply to you.
The Cash Balance Pension formula: The Cash Balance Pension formula will not
change because the retirement benefit under the Cash Balance formula is already
in line with those of our peers. We are planning to do more, however, to help you
understand how the Cash Balance Pension formula works and the value that it
provides for your retirement.
4.
Thrift Savings 401(k) Plan. If you are under the Cash Balance Pension
formula, and a participant in the Thrift Savings 401(k) Plan, you will receive
an increased company match in the Thrift Savings 401(k) Plan. This increase
aligns your total retirement benefit with our peer group and with the retirement
benefits for employees under the FAP Pension formula.
If you are under the FAP Pension formula, there will be no change to your
Thrift Savings 401(k) Plan. When combined with the FAP Pension formula, the Thrift
Savings 401(k) Plan currently offers above-market retirement benefits.
5.
Retiree Health. If you are under the Cash Balance Pension formula and
eligible for Retiree Health coverage when you retire, you will have access to
Retiree Health coverage, but will pay the full cost of the coverage.
If you are under the FAP Pension formula, the change to Retiree Health
benefits described in this brochure does not apply to you.
6.
Retiree Life Insurance. If you are age 50 or older as of January 1, 2013, the
current $50,000 benefit will be reduced to $25,000.
You do not need to take
any action right now.
We are providing this preview
of the changes that will begin
January 1, 2013, so you have
time to learn about them. We
encourage you to become familiar
with the changes in your benefits
and programs.
Check out What’s Next? on
page 19 to find out when you can
expect to get more information.
You will have many opportunities
over the coming months to
learn all of the specific details
about the changes in your Total
Rewards package. You can also
send an e-mail with questions
now to totalrewardsquestion@
conEd.com. We will answer your
questions in future communications
and post them in a Frequently
Asked Questions section on
HR Online.
The Total Rewards Survey
Thanks for your feedback to the
2011 Total Rewards Survey. 58% of
CECONY employees responded —
more than 3,200 employees in total.
If you are under age 50 as of January 1, 2013, Retiree Life Insurance benefits
will be eliminated at both CECONY and O&R to align this benefit with the market.
The changes to Retiree Life Insurance described in this brochure do not apply to
current retirees.
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7.
Sick-Time and Disability. The sick-time and disability policies will change to
match best practices in the market and address employee concerns about how
these policies currently work. The new sick-time and disability policies will change
to provide varying percentages of pay based on the amount of time you are out
of work due to illness or injury. It will also no longer be linked to years of service.
8.
Health Care. We will offer new medical plan options starting in 2013 to give you
more control over the money you spend for your health care because they will
give you the option of trading off lower payroll contributions and higher out-ofpocket costs when you receive medical care. We will also offer improvements in
your dental benefits.
9.
Wellness. Living a healthy lifestyle is important to you and the company. If you
take certain steps during this year’s Open Enrollment period in the fall, you will be
able to lower your health-care premium payroll deductions.
10. Expanded Communications. To help you better understand the full value of your
Total Rewards, we will communicate with you more clearly and more often.
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FOCUS ON TIME OFF
Vacation and Holidays
What Is Changing?
Effective January 1, 2013, the vacation and holiday policies will change. The changes
include the ability to reach the maximum vacation days earlier in your career and the
introduction of new floating holidays.
These changes not only address your concern about earning vacation sooner, but
keep our company in line with market practices — and create consistency across
CECONY and O&R.
How It Will Work
Vacation
Vacation schedules for CECONY and O&R will become consistent.

Effective January 1, 2013, we will no longer classify vacation as vested
and non-vested.

The new vacation schedule is:
WHAT WE HEARD FROM
EMPLOYEES
“It takes too long to earn more
time off.”
“Not enough vacation days!”
51% of employees are currently
satisfied with the vacation policy
— which is lower than our 65%
benchmark — and are looking
for more vacation earlier in their
careers.
Sources: 2011 Total Rewards Survey
and Focus Groups
Vacation Accrual Schedule
Years of Service
Current Days
Revised Days
1–2
10
10
3
11
13
4
12
14
5 – 10
16
15
11
16
16
12
17
17
13
18
18
14
19
19
15 – 19
21
20
20
21
25
21
21
25
22
22
25
23
23
25
24
24
25
25+
25
25
Note: You will not lose any vacation
days if you have already earned more
than the new schedule allows.
= no change
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Holidays
There will continue to be 11 paid corporate holidays, four of which will become floating
holidays (as highlighted below):
New Year’s Day
Martin Luther King Jr. Day
Presidents Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day

We designated the floating holidays based on the results of the employee
Total Rewards survey.

You can take floating holidays on the actual designated holiday date or on a
different date that you select, subject to operational needs.

You will continue to have one personal holiday.
What This Means for You
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You will have more flexibility for when and how you use four of the 11 corporate
holidays.

There will be no distinction between vested and non-vested vacation (we will
explain the carryover policy later this year).

Vacation schedules will be consistent across CECONY and O&R, with a
maximum vacation time of five weeks.

If you have earned more vacation under the current schedule than you would
earn under the revised schedule, you will not lose vacation days.
FOCUS ON PAY
Pay
What Is Changing?
Pay remains an important — and the largest — part of your Total Rewards package.
Currently, the targets for variable pay are below market — which includes the CECONY
Management Variable Pay (MVP) Plan and O&R Annual Team Incentive Plan (ATIP) —
and vary across the companies.
To bring more consistency, competitiveness, and understanding to compensation
for CECONY employees, the targets for variable pay are changing for the 2012
performance period, scheduled to be paid in 2013.
How It Will Work
CECONY MVP targets will align with the O&R targets. Specifically, this means most
CECONY employees will be eligible for increased variable pay, as shown here in the
Variable Pay Table.
Variable Pay Targets
CECONY
Job Level
Current
NEW
4H, 66
15%
21%
4L, 65
15%
17%
3H, 64
10%
12%
3L, 63
10%
12%
2H, 62
4.5%
7.5%
2L, 61
4.5%
6%
1H, 60
4.5%
5%
1L
4.5%
5%
EP
4.5%
4.5%
SH
4.5%
4.5%
SL
4.5%
4.5%
WHAT WE HEARD FROM
EMPLOYEES
“The variable pay is totally out of
line (not enough).”
“There is very little financial
reward and hence incentive for
performing at a level higher than
your peers.”
Only 36% of employees overall
are satisfied with their variable
pay, compared to 45% of
employees at companies we are
benchmarked against.
Sources: 2011 Total Rewards Survey and
Focus Groups
For Example
If you are a Band 2L employee
who earns $100,000 in base
salary, you will now be eligible
to receive an additional $1,500
at target.
Currently: $100,000 x 4.5% =
$4,500
= no change

Consistent variable pay targets will be available if you transfer between CECONY
and O&R.

Variable pay, which is included in your pension benefits, provides an opportunity
to increase the value of your pension benefits.
New Target: $100,000 x 6% =
$6,000
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FOCUS ON RETIREMENT
Pension Plan
WHAT WE HEARD FROM
EMPLOYEES
“The company should do a better
job communicating the value of
pension benefits.”
88% of employees view the
Pension Plan as competitive with
what other companies offer.
Sources: 2011 Total Rewards Survey and
Focus Groups
What’s the Difference in
Pension Formulas?
Cash Balance. The benefits of
each employee covered under
the Cash Balance formula are
expressed as an “account
balance,” that is credited each
quarter with an amount equal to
a percent of pay and interest at
a fixed rate. The percent of pay
that is credited each quarter to
your account balance is based
on your age and years of service.
FAP. You receive a pension
benefit based on a formula using
your Final Average Pay (FAP)
(highest consecutive 48 months
in the last 120 months
of service).
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What is Changing?
Cash Balance Pension Formula Participants
The way the Cash Balance Pension Plan works is not changing. However, we are
going to do more to help you better understand the Cash Balance Pension formula so
that you get more value from it.
Final Average Pay (FAP) Pension Formula Participants*
If you are under the FAP Pension formula and age 50 or older as of January 1, 2013,
the changes to the pension plan described here do not apply to you.
If you are under the FAP Pension formula and under age 50 as of January 1, 2013,
there will be two changes explained below to keep the pension plan in-line with
the market.
Keep in mind that changes to your pension benefit described here apply only
to your future service starting January 1, 2013 — not to your earned (accrued)
benefit prior to January 1, 2013.
*Note: FAP Pension formula participants include employees covered under the Total
Salary Pension formula.
How It Will Work
You will receive more information and details about the following changes in a mailing
to your home in May. (See What’s Next? on page 19 for more information.)
Changes At-a-Glance
Are you…
There are…
Under the Cash Balance
Pension formula?
No pension plan changes. The changes to the
FAP Pension formula described here do not
apply to you.
Under the FAP Pension
formula and age 50 or older
as of January 1, 2013?
Under the FAP Pension
formula and under age 50
as of January 1, 2013?
(For benefits earned after January 1, 2013, only)
An increase in the age to 60 (from age 55)
for employees who choose to receive an
unreduced early retirement benefit
Married employees will now be charged
for the 50 percent joint and survivor (J&S)
benefit (and there is an increased charge for
the 75 percent and 100 percent J&S benefit,
if you select one of these options).
1. Early Retirement Benefit for Employees Under the FAP Pension Formula
Currently, an unreduced Early Retirement benefit is offered to employees who are age
55 with 30 years of service. A slightly reduced Early Retirement benefit is also offered
to employees who are between the ages of 55 and 60 with less than 30 years of
service and have 75 points (The 75-point rule is one point for each year of service plus
one point for each year of age.) If you are under age 50 as of January 1, 2013, the
early retirement age will be increased to age 60 from age 55. This change will be only
on future benefits earned after January 1, 2013. If you retire between the ages of 55
and 60, even if you have 75 points or 30 years of service, your future benefit earned
after January 1, 2013, will be reduced by five percent for each full year before age 60.
What This Might Look Like If You Are Age 45 on 1/1/2013 with 20 Years of
Service and:

You retire at age 55 with 30 years of service on 1/1/2023 with a final average
pay of $100,000.

Without this change, you would have received an unreduced early retirement
benefit of $48,000.

With this change, your total benefit will be reduced from $48,000 to $43,500.
Amount
Reduction
Factor
Adjusted
Benefit
Accrued benefit prior to
1/1/2013 (assumes no early
retirement reduction applied
to benefit accrued prior to
1/1/2013)
$30,000
--
$30,000
Accrued benefit after
1/1/2013 (25% of early
retirement reduction factor is
applied to $18,000 based on
service after 1/1/2013)
$18,000
25%
$13,500
Total
$48,000
--
$43,500
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2. Survivor Benefit for Married Employees Under the FAP Pension Formula
If you are married, you currently receive a post-retirement 50 percent joint and survivor
(J&S) annuity benefit at no cost (O&R employees currently pay for this benefit). The
post retirement 50 percent J&S benefit provides a death benefit to your surviving
spouse, equal to 50 percent of the pension paid to you as a retiree.
If you are under age 50 as of January 1, 2013, upon retiring you will be charged for
the 50 percent J&S benefit when you begin your pension benefit. The charge will
permanently reduce your pension payment, and will typically be four percent to
eight percent of the future benefits earned after January 1, 2013, but will vary by age
of the retiree and his or her spouse.
What This Might Look Like If You Are Age 45 on 1/1/2013 with 20 Years of
Service, and:
You retire at 1/1/2023 with a final average pay of $100,000.

Without this change you would have received a pension benefit of $48,000.

With this change, your total benefit will be reduced from $48,000 to
$46,920.
Amount
Reduction
Factor
Adjusted
Benefit
Accrued benefit prior to
1/1/2013 (assumes no
salary updates accrued,
and 50 percent J&S
option available without
adjustment)
$30,000
--
$30,000
1/1/2013 (assumes spouse
is same age and there is
a six percent charge on
$18,000)
$18,000
6%
$16,920
Total
$48,000
--
$6,920

If you are under the FAP Pension formula and under age 50 on January 1, 2013,
you will experience a reduction in your:
—— Future J&S benefit, if applicable
—— Early retirement subsidy for retirements (if retiring before age 60)

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Variable pay is included in your pension benefits, and higher MVP awards may
increase the value of your pension benefits.
Thrift Savings 401(k) Plan
What Is Changing?
The Thrift Savings 401(k) Plan and pension plan work together to provide retirement
benefits for you.
If you are under the Cash Balance Pension formula, the Cash Balance Pension
formula itself is not changing, but the company is increasing how much we match
in the Thrift Savings 401(k) Plan from three percent (50 percent match on up to six
percent of your contribution) to six percent.
If you are under the FAP Pension formula, the current company match to the Thrift
Savings 401(k) Plan will not change because the combination of your pension and
401(k) plans already offer a market-level retirement benefit. The changes to the Thrift
Savings 401(k) Plan described here do not apply to you.
How It Will Work
NEW FOR JANUARY 1, 2013
8%
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Employees in the Cash
Balance Pension Formula
Contribute up to
8% of your pay
The Company
Matches 100% of the first
4% of your contributions,
plus an additional 50% on
the next 4% (up to 6% total)
%
14%
WHAT WE HEARD FROM
EMPLOYEES
“Higher company contributions
to 401(k) should be considered.”
77% of employees are satisfied
with the Thrift Savings 401(k)
Plan as a retirement savings
vehicle.
92% of employees believe the
Thrift Savings 401(k) Plan is
competitive with what other
companies offer — far above
industry norms.
and Focus Groups
Potential retirement
savings of up to 14%
of your pay in the
Thrift Savings 401(k) Plan
You will receive additional details and examples in a mailing to your home in May.

If you are under the Cash Balance Pension formula, you will receive an increased
company match on your contributions to the Thrift Savings 401(k) Plan.

For Cash Balance Pension formula participants, the combination of the pension
and 401(k) plans is now more in-line with the market.
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Retiree Health Care
WHAT WE HEARD FROM
EMPLOYEES
48% of employees don’t have a
good understanding of retirement
health-care costs.
and Focus Groups
What Is Changing?
Your cost for Retiree Health coverage depends on whether you are under the CAP
Pension formula or Cash Balance Pension formula and your eligibility for Medicare
when you retire.
If you are under the Cash Balance Pension formula and retire after
January 1, 2013, you will continue to have access to Retiree Health coverage
through the company, but will now pay the full cost of the coverage.
If you are under the FAP Pension formula, the change to the Retiree Health
program described here does not apply to you.
How it Will Work
If you are under the Cash Balance Pension formula: If you retire on or after
January 1, 2013, meet the eligibility requirements, and enroll in the Retiree Health
program, you will be responsible for paying the full cost of the Retiree Health coverage
offered through the company.
You will receive more information about this change later this year.
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You will need to save more to prepare for future retiree health-care costs.

You can potentially offset the costs of future retiree medical coverage by saving
more in the Thrift Savings 401(k) Plan (see Thrift Savings 401(k) Plan on page 11)
and by participating in a new High-Deductible Consumer-Driven Health Plan
(CDHP) with a Health Savings Account (HSA) that will be introduced and offered
as a medical plan option during Open Enrollment in the fall of 2012 (see Focus
on Health-Care Benefits on page 16).
Retiree Life Insurance
What Is Changing?
Retiree Life Insurance is above market and one of the least valued benefits that
we offer, according to employee feedback. To align the benefit with what our peer
companies offer, we are making a change and reallocating some of our investment in
this benefit into other areas of the Total Rewards package that you value most.
Specifically, if you are age 50 or older as of January 1, 2013, the company is reducing
this benefit to $25,000 from $50,000.
If you are under age 50 as of January 1, 2013, the Retiree Life Insurance benefit is
being eliminated.
WHAT WE HEARD FROM
EMPLOYEES
Employees ranked numerous
benefit programs as more
important to them than Retiree
Life Insurance.
and Focus Groups
How It Will Work
If, as of January 1, 2013, you are…
You will receive at retirement:
Age 50 or older and retire on or after
January 1, 2013
A $25,000 Retiree Life Insurance
Benefit
Under age 50 and retire on or after
January 1, 2013
No Retiree Life Insurance Benefit

If you are under age 50 and retire on or after January 1, 2013, you will need to
identify another source of life insurance in retirement.
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FOCUS ON TIME OFF
Sick Time and Disability
WHAT WE HEARD FROM
EMPLOYEES
“I think the company is too
generous with this benefit (sick
time). There are times when
people don’t need more than one
day when they are sick, but many
feel they need to take at least
three to five days regardless, just
to use the benefit.”
“The sick time policy encourages
people to take sick time as extra
vacation.”
and Focus Groups
What Is Changing?
Time off when you are sick is designed to help protect you when an illness or injury
prevents you from working.
We are changing the Sick Time and Short-Term Disability benefits so they are
consistent with best practices in the market and in-line with the benefits offered by our
peer companies. Specifically, the new Sick Time/Disability Policy will provide varying
percentages of your base pay, depending on the amount of time you are approved to
be out of work due to an illness or injury. The sick time benefit will no longer be related
to your length of service with the company.
How It Will Work
Starting January 1, 2013, you will be eligible for up to 10 sick days each calendar year,
paid at 100 percent of base pay. After five consecutive sick days, you will need to
qualify for Short-Term Disability to receive sick pay.
After five consecutive workdays out sick, you may be eligible for the Short-Term
Disability benefit. You will need to provide documentation, approved by a third-party,
to qualify for Short-Term Disability. The Short-Term Disability benefit will provide for sick
pay and sick absences longer than five workdays, as follows:

Weeks 2 – 6: 100% of base pay

Weeks 27 and after: You will move to the Long-Term Disability program, if eligible.
Your income will be based on the provisions of the Long-Term Disability program.
You will receive more information about the Long-Term Disability program later this year.
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For Example: You earn $52,000 a year ($1,000 a week) and have the
following three separate sick absences within the same year:
Three-day absence in January
for the flu
You receive 100% of pay for all
three days.
Seven-week absence in March
for a fractured ankle
Week 1 is covered by five of your
remaining seven sick days at full pay.
Weeks 2 – 6 are covered at full pay
($1,000 a week) under the Short-Term
Disability plan.
Week 7 is covered at 90% ($900 a
week) under the Short-Term Disability
plan.
Three-week absence in
September for back sprain
Week 1 you will receive 100% sick
pay for your remaining two sick days;
the next three days are covered by
unpaid leave.
Weeks 2 – 3 are covered at full pay
($1,000 a week) under the Short-Term
Disability plan as a new disability.
Change to your sick pay:
First sick absence: No change

Second sick absence: Week 7 reduced to $900 from $1,000

Third sick absence: First week reduced to $400 from $1,000, no change
at weeks 2 – 3
Note: Maternity leave will be covered under a new maternity policy in development,
which we will communicate to you later this year.

Sick time is no longer service-related, which will result in reduced sick time benefits
for most employees.
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FOCUS ON HEALTH
Health Care Benefits
WHAT WE HEARD FROM
EMPLOYEES
“The plans are similar where I
can’t really tell which would be
the ‘right’ choice.”
What Is Changing?
For 2013, we will be offering you more choices in health-care options. These new
options will give you more control over your money and help you save money for future
health-care expenses.
We will also offer improved dental benefits to address common procedures that are not
currently covered.
“Our health care is about as
good as other large companies,
but we pay more than many
people.”
How It Will Work
85% of employees say that
having a mix of medical plan
options to choose from is
important.
During Open Enrollment this fall, we will introduce new health-care options, including
a new high-deductible Consumer-Driven Health Plan (CDHP) with a Health Savings
Account (HSA) option, in addition to Health Maintenance Organization (HMO) options.
and Focus Groups
Here’s an overview of what will change. You will receive additional details and examples
in a mailing to your home closer to the Open Enrollment period in the fall of 2012.
Medical
These new plans will offer you the option of trading off lower payroll contributions and
higher out-of-pocket costs when you receive medical care. And, as always, you will still
save money by visiting in-network providers when you need care.
The company will contribute to the HSA if you choose the CDHP option, and you
will also be able to contribute to the account. The HSA is not “use it or lose it” like a
Flexible Spending Account, so any dollars remaining can be used in future years for
expenses — or even to save for retiree medical costs.
To help you choose the right medical and prescription drug coverage option, we will
make new tools available to you during Open Enrollment. You’ll learn more about these
tools later this year.
Dental
Based on your feedback, we are working to improve the dental plan. For example,
new procedures (such as implants) will now be covered if you use in-network dentists.
16

You will have greater control over how much you spend on your
health care.

You will have new tools to help you choose the medical plan that best meets
your needs.
FOCUS ON WELLNESS
Wellness
What Is Changing?
To encourage you and your family members to live a healthy lifestyle, which can also
help us better manage health-care costs in the future, we will offer new incentives and
activities to help you improve your health.
If you take certain steps during this year’s Open Enrollment period in the fall, you will
able to save money and lower your health-care premiums in 2013.
How It Will Work
To earn the credits and avoid paying more in health-care premiums, you will need to
take these three steps:
1.
Complete a health-risk questionnaire (HRQ) — This questionnaire will be
available online through Cigna.
2.
Receive basic medical screenings (for example, blood pressure,
cholesterol, and blood sugar) — These screenings will be offered at local
company events and benefits fairs, or you can receive the screening at your
physician’s office and have the results submitted to Cigna. Basic medical
screenings will help supplement the HRQ and develop a more complete
assessment of your health risks for such conditions as diabetes, heart disease,
back pain, and hypertension.
3.
Certify that you don’t smoke, or if you do smoke, enroll in an approved
smoking-cessation program.
All three of these steps will affect how much you pay for health-care coverage in 2013,
which you’ll learn more about this fall during Open Enrollment.
WHAT WE HEARD FROM
EMPLOYEES
“The cost of health benefits has
skyrocketed and it scares me
that so many employees feel
that the company should simply
assume the escalated costs.”
70% of employees agree that if
the company provides a financial
incentive, they would participate
in programs that could improve
their health.
There is varied confidence
(62% to 92%) with the
information and tools available
to help employees manage
their health.
and Focus Groups
For example, during Open Enrollment this fall, you will need to take one of the following
actions to lower your health-care premiums in 2013:

If you are a smoker — sign up for and participate in the company’s smokingcessation program.

If you don’t smoke — certify that you do not smoke.
You will receive additional details and examples in a mailing to your home later this year.

Reinforcing healthy behaviors can help both you and the company save money
on reducing health-care costs.

Enrolling in health programs can help you stay healthier longer by preventing and
managing health risks and conditions.
17
FOCUS ON WORK ENVIRONMENT
Expanded Communications
WHAT WE HEARD FROM
EMPLOYEES
“The Learning Center and online
training are great resources, and
programs like the GOLD Program
and Tuition Reimbursement make
Con Edison a more attractive
place to work and improve on
my skills.”
Understanding and perceived
competitiveness of flexible work
options are below benchmarks.
76% of employees are satisfied
with the Employee Stock
Purchase Plan (ESPP).
and Focus Groups
18
What Is Changing?
We offer many valuable benefits and resources to help you manage your personal life
and your career. They include:

Flexible work options

Stock Purchase Plan (SPP)

Tuition Reimbursement

The Learning Center and GOLD Program
To help you better understand the full value of these benefits, and all of your Total
Rewards, we’re committed to providing you with more frequent and enhanced
communication.

The company will communicate with you more clearly and more often about your
Total Rewards.
What’s Next?
HOW TO LEARN MORE
COMMUNICATION SCHEDULE
Here’s your Total Rewards Communication Road Map — what to expect and when in 2012:
APRIL
MAY
JULY
SEPTEMBER
NOVEMBER
Pay
Retirement
Wellness
Health
Time Off
An in-depth series of brochures on changes to different parts of your Total Rewards Program
will become available. Each brochure will include examples and scenarios to help you better
understand the changes and any steps needed to meet enrollment deadlines.
Take Time to Read
E-mail Box
Extra effort is being taken to communicate a lot of information in
the coming months, including in mailings to your home. Please
share this information with your family.
Do you have a question not answered in the
Total Rewards Brochure? If so, please send an e-mail to
[email protected]. We will address your
questions in upcoming communication. Your feedback is helpful.
Employee Meetings
Benefits Fairs
Plan to attend one of the employee meetings being offered at
many locations later this year. Stay tuned for information about
available dates and times.
Benefits Fairs will be offered in fall 2012 at many locations. Look
for a Benefits Fairs schedule later this year.
This communication about Total Rewards is just a summary. Your Total Rewards as they now exist and as they will be changed are always
governed by the official plan documents and policies. The company reserves the right to amend, modify, or terminate the plans.
19
FOCUS ON PAY
Pay remains an important — and the largest — part of your Total Rewards package.
The company believes in pay for performance, and in compensating you for your
contributions to the company’s success.
This brochure provides information about the management compensation program
and the Total Rewards changes to the Management Variable Pay Plan to make it
more competitive compared with our peers.
A Look at Your Total Compensation
The management compensation program is made up of three components:
1.
Base Salary. You have the opportunity to receive increases in your base salary
based on your work performance and where your actual salary falls within the
range set for your job level.
2.
Management Variable Pay Plan (MVP). You can earn variable pay each year
based on the company’s success and your work performance. The company’s
success is determined by achieving operational, safety, environmental, and
financial performance measures set at the beginning of the year.
3.
Long-Term Incentives. Long-term incentives are currently awarded in the form
of restricted stock units to certain employees who demonstrate the potential
to make significant contributions to the company’s future success. Generally,
employees must also be continuously employed with the company for three
years before the stock vests.
—— Awards to employees in bands 3 and 4 are made in the form of
performance-based restricted stock. That means the awards are based
on the company meeting two performance measures: (1) the three-year
total shareholder return relative to the Consolidated Edison, Inc. peer
group; and (2) the three-year corporate average of the MVP award fund.
How Pay Is Benchmarked
Setting the right compensation
level for any position is not an
exact science. To help evaluate if
the pay we offer is competitive, we
benchmarked a sample of our job
positions against those at peer utility
companies. We matched positions
based on roles and responsibilities.
We also benchmarked a subset
of management positions against
other companies in the metropolitan
New York area. The results we
found looking at other utilities and
metropolitan New York companies,
as well as survey data, helped us
determine the competitiveness of
our compensation program. When
compared with the benchmark
data, we found that the CECONY
base salary ranges were in-line with
current market and variable pay was
below market. The changes in the
variable pay program described in
this brochure will bring variable pay
in line with the market.
—— Awards to employees in bands 1 and 2 are made in the form of time-based
restricted stock. That means employees must be continuously employed
with the company for three years before the stock vests.
Through our review of the value of our Total Rewards package, including employee
input and external industry benchmarking, we found that our variable pay under the
MVP is below market. As a result, we’re taking steps to increase the targets for most
of the job group levels to improve the competitiveness of our variable pay program.
Your Total Rewards
For Con Edison Management Employees
Variable Pay
Your Total Rewards
Total Rewards include your pay plus
a whole lot more:
Con Edison has two variable pay plans: the CECONY MVP and the O&R Annual
Team Incentive Plan (ATIP). Both currently have varying individual targets. In addition
to being below market, we found the MVP has a low satisfaction rate among
employees. To improve the competitiveness of the CECONY variable pay plan, and
to create more consistent targets between the CECONY MVP and O&R ATIP, we are
changing the targets for variable pay for most CECONY employees starting with
the 2012 performance period. The changes will be retroactive to January 1, 2012,
and awards will be paid out in April 2013 based on 2012 performance results.

Compensation
(base salary, variable pay,
and long-term incentives)

Retirement Benefits

Health-Care Benefits
A Look at the Changes

Other Benefits
CECONY MVP targets will now align with the O&R ATIP targets, which means that
most CECONY employees will be eligible for increased variable pay.
Note: The other two components of the management compensation program — base
pay and long-term incentives — are not changing.
Variable Pay Targets
CECONY
Job Level
Current
NEW
4H, 66
15%
21%
4L, 65
15%
17%
3H, 64
10%
12%
3L, 63
10%
12%
2H, 62
4.5%
7.5%
2L, 61
4.5%
6%
1H, 60
4.5%
5%
1L
4.5%
5%
EP
4.5%
4.5%
SH
4.5%
4.5%
SL
4.5%
4.5%
= no change
2
An Example
Under the Total Rewards change,
if you are a band 2L employee
who earns $100,000 in base
salary, you will now be eligible
to receive in 2013 an additional
$1,500 for 2012 performance
results at the new target:
Currently: $100,000 x 4.5% =
$4,500
New Target: $100,000 x 6% =
$6,000
2012 Variable Pay Performance Period
It’s important to note that the MVP performance indicators are not changing for
2012. The MVP awards paid in 2013 will be based on the actual performance results
achieved for 2012. For more information, visit the CECONY performance indicator
system under “hot sites” on the company’s intranet.
January 1, 2012
December 31, 2012
April 2013
Payout
PERFORMANCE PERIOD
Questions?
If you have any questions about the variable pay improvements, send an e-mail
to [email protected]. We will answer your questions in future
communications and post them in a Frequently Asked Questions section on
HR Online.
What’s Next
This is the first in a series of brochures that outline the changes to the different aspects
of the Total Rewards package. Here’s what you can expect over the coming months:
PRIL
Pay
MAY
JULY
SEPTEMBER
NOVEMBER
Retirement
Wellness
Health
Time Off
An in-depth series of brochures on changes to different parts of your Total Rewards Program
will become available. Each brochure will include examples and scenarios to help you better
understand the changes and any steps needed to meet enrollment deadlines.
me to Read
E-mail Box
rt is being taken to communicate a lot of information in
g months, including in mailings to your home. Please
information with your family.
ee Meetings
Benefits Fairs
tend one of the employee meetings being offered at
ations later this year. Stay tuned for information about
This communication about Total
dates and times.
Rewards is just a summary. Your Total Rewards as they now
exist and as they will be changed are always governed by the official plan documents and
policies. The company reserves the right to amend, modify, or terminate the plans.
3
IMPORTANT INFORMATION ON YOUR TOTAL REWARDS
r
4 Irving Place
New York, NY 10003
FOCUS ON RETIREMENT
It’s Your Future
Planning for a secure retirement is an important goal for you and your family.
Con Edison supports you by providing a comprehensive Total Rewards package
that includes your compensation (base salary and variable pay), retirement and
health-care benefits, and other valuable benefits, such as time off.
What’s Inside
Earlier this year, you began hearing about changes to the company’s retirement benefits.
These changes take your feedback into account to recognize what you most value, and
better align our Total Rewards with the marketplace and across our companies.
Retirement Changes At-a-Glance....... 3
While you should have received an overview of the Total Rewards changes both at
work and at home earlier this year, take a few minutes now to read about the details
of the changes to your retirement benefits and how they impact you. This brochure
describes the changes to a CECONY management or CEB employee who is covered
under the Final Average Pay (FAP) Pension formula. Keep this brochure handy in the
future for your reference once the changes take effect.
Also, note that the federal law of ERISA requires us to notify you of changes to the
Consolidated Edison Retirement Plan, the Consolidated Edison Retiree Life Plan, and
the Consolidated Edison Thrift Savings Plan. This brochure is a Summary of Material
Modifications (“SMM”) that provides you with information about what is changing for
the Consolidated Edison Retirement Plan, the Consolidated Edison Retiree Life Plan,
and the Consolidated Edison Thrift Savings Plan, the effective date of each change,
and employees who are affected by each change.
Understanding Your Retirement Benefits
What We’ve Heard
What We’re Doing
The benefits are too
complex to really
understand.
The company is committed to providing you with
more frequent and clearer communication to help
you understand how the programs work and the
full value of your benefits.
Getting information
about the retirement
benefits is difficult.
You can access information about your retirement
benefits by using the OnPoint pension calculator
found on the company’s intranet site at HR Online.
The pension calculator will be updated with the
new plan changes to help you get the information
you need, when you need it.
If I’m age 50 or older
as of January 1, 2013,
I’m not impacted by
the Total Rewards
changes to the
Retirement Plan.
After careful consideration, age 50 was chosen
because those individuals are close to retirement,
or within five years of being eligible for an Early
Retirement pension beginning at age 55. Although
the Retirement Plan changes have some impact
on employees under age 50, employees in
this age group will generally have more time to
modify their plans if they wish to retire at age 55,
including saving more and retiring later.
This is why the company is “grandfathering” those
employees closest to retirement.
What’s Happening.............................. 2
Retirement Benefits Basics —
Thrift Savings (401(k)) Plan............... 5
Retirement Plan................................ 8
Retiree Health and Retiree
Life Insurance................................. 15
We Hear You.................................... 16
How to Take Action — Retirement
Resources at Your Fingertips............ 18
Looking Ahead — What to Expect... 19
CEB Employee?
The references throughout this
brochure to the company intranet
at HR Online, OnPoint, the
Con Edison Employee Benefits
Center, and the link to access
Summary Plan Descriptions
(SPDs) do not apply to you.
See page 18 for CEB contact
information and resources.
Your Total Rewards
For CECONY Management and CEB
Employees Covered Under the Final Average
Pay (FAP) Pension Formula
What’s Happening
Understanding Your Retirement Income
Your income in retirement will likely come from several sources. That’s why it’s
important to understand the role that each will play — including your retirement
benefits from the company:

The Retirement Plan. Depending on your start date, you may be eligible to
receive a pension from the company under the Final Average Pay (FAP) Pension
formula. See page 8 for details about the FAP Pension formula.

The Thrift Savings (401(k)) Plan. When you contribute to the Thrift Savings Plan,
the company makes matching contributions. See page 5 for details about this plan.

The Stock Purchase Plan. When you contribute to the Stock Purchase Plan,
the company makes matching contributions. For details about this plan, go to the
company’s benefits intranet site at http://ceintranet/HR/EmployeeBenefits/
Pages/planDescriptions.aspx and click on “Stock Purchase Plan.”

Social Security. Both you and the company (as well as your previous employers,
if any) contribute to Social Security. You will be eligible for Social Security benefits
in retirement if you’ve been employed for at least 10 years. For information about
your future Social Security benefits, contact the Social Security Administration at
1-800-772-1213 or visit www.ssa.gov.

Savings plan accounts and pensions from other employers. If you’ve worked
at other companies, you may have participated in another pension plan or
contributed to a savings plan. Remember to account for those benefits as you
consider your retirement income strategy.

Your personal savings. This might include investment accounts, such as
individual retirement accounts (IRAs), brokerage accounts, savings bonds,
certificates of deposit (CDs), health savings accounts (HSAs), and traditional
savings accounts.
What It Means to Be “Grandfathered” Under the
Consolidated Edison Retirement Plan
Who is grandfathered?
An actively employed CECONY management or
CEB employee is considered “grandfathered”
under the FAP Pension formula if he or she is
age 50 or older on January 1, 2013.
You are also considered grandfathered if you
are a former union employee who was covered
under the FAP Pension formula at the time you
transferred to management and are age 50 or
older on January 1, 2013.
2
What does it mean to
be a grandfathered
employee?
The Total Rewards changes to the Retirement
Plan and the Retiree Health Program do not
apply to grandfathered employees. If you’re
a grandfathered employee, you need to do
nothing at this time.
Do any of the Total
Rewards changes to
retirement benefits
apply to employees
age 50 or older on
January 1, 2013?
Yes. Total Rewards changes to the Retiree Life
Insurance program will affect management
employees who are age 50 or older on
January 1, 2013, and under either the FAP* or
Cash Balance Pension formulas.
Total Rewards changes to the Retiree Health
Program also affect management employees who
are age 50 or older on January 1, 2013, and under
the Cash Balance Pension formula.
*Including employees under the Total Salary Pension formula.
Retirement Changes At-a-Glance
Here’s a summary of the changes to your retirement benefits taking effect on
January 1, 2013. (These affect employees under the Final Average Pay (FAP) Pension
formula who are under age 50 on January 1, 2013.)
Note that the changes to the Consolidated Edison Retirement Plan described in this
brochure apply only to your pension benefits earned on your future service beginning
on and after January 1, 2013, and not on your pension benefits earned or accrued
before January 1, 2013.
What’s Changing
Why?
FAP Pension Formula*
(Including employees covered under the Total Salary Pension formula)
If you are not age 50 or older on
January 1, 2013, the age to receive
an unreduced Early Retirement
pension benefit is being raised from
age 55 to age 60:
—— If you retire between the ages
of 55 and 60 (even if, at age 55,
you have 75 points or 30 years
of service), and you elect to
begin your pension benefit
immediately, the portion of your
pension benefit earned after
January 1, 2013, will be reduced
by 5% for each full year before
age 60.
If you are married and retire after
January 1, 2013, and you were
under age 50 on January 1, 2013,
you will pay when you begin your
pension benefit:
—— A charge, based on your age
and your spouse’s age, for the
50% Joint & Survivor (50%
J&S) benefit (currently offered to
married employees at no cost).
The FAP Pension formula
provides a pension benefit that is
above market. The changes are
designed to align the Retirement
Plan benefits paid under the FAP
Pension formula closer to the
median of our peer group.
In general, retirement ages are
increasing; depending on your year
of birth, Social Security increased
its unreduced retirement age from
age 65 to age 66 or 67.
In the Total Rewards Survey,
many employees expressed an
intention to retire after age 60
(since 2010, the average retirement
age of Con Edison management
employees has been age 61).
Most pension plans at peer
companies, as well as the
Con Edison Cash Balance Pension
formula, apply a charge for J&S
benefits.
—— An increased charge, based on
your age and your spouse’s age,
if you select a 75% or 100%
J&S optional form of pension —
instead of the 50% J&S benefit.
*If you are a former union employee who transferred to management, the Retirement Plan
changes affecting the FAP Pension formula also apply to you if you are under age 50 on
January 1, 2013.
Important!
With the exception of Retiree Life
Insurance, the changes outlined
in this brochure do not apply
to employees age 50 and older
on January 1, 2013 — you are
considered “grandfathered.”
How Were Retirement
Benefits Evaluated?
The company evaluated all of
our Total Rewards, including our
retirement benefits, in three ways:

Solicitation of employee input
(leadership interviews, focus
groups, and employee surveys)

Benchmarking of current
programs against a peer group
of utilities and New York metro
companies

Review of alternative designs
with a consistent set of guiding
principles
Because employee retirement income
is generally supported by both the
Retirement Plan and Thrift Savings
(401(k)) Plan benefits, the company
analyzed the value of each program
individually and then as a package.
3
What’s Changing
Why?
Retiree Health
There are no changes under Total
Rewards if you are under the FAP
Pension formula and eligible to
participate in the Retiree Health
Program when you terminate
employment with Con Edison.
Although the company’s Retiree
Health Program is an above-market
benefit, we did not make any
changes for employees under the
FAP Pension formula because the
company’s contribution to the cost
of the program is limited under a
cost-sharing formula.
You will continue to receive access
to the Retiree Health Program under
It is important to keep in mind that
the current cost-sharing formula.
the company is not obligated to
When you retire and enroll in the
contribute any fixed amount or
Retiree Health Program, you will
percentage to the program and can
share the cost of Retiree Health
change or terminate the program at
coverage with the company. The
any time.
company’s contribution is based on
a formula equal to its prior year’s
contribution, plus a cost-of-living
adjustment as measured by the
change in the Consumer Price
Index (CPI).
Retiree Life Insurance is an above If you are age 50 or older on
market benefit with perceived low
January 1, 2013, and you satisfy the
value by employees.
eligibility requirements for Retiree
Life Insurance when you retire, your These changes are designed to align
Retiree Life Insurance benefit will be
the benefit closer to the median of
$25,000, instead of $50,000.
our peer group and across company
businesses.
If you are under age 50 on
January 1, 2013, you will not be
eligible for Retiree Life Insurance if
you retire after 2012.
Thrift Savings (401(k)) Plan
If you are under the FAP Pension
formula, Total Rewards does
not change your benefits under
the Thrift Savings (401(k)) Plan;
you continue to receive the 50%
company match on the first 6% of
your pay that you contribute.
4
The total retirement income benefit
offered to you with the FAP Pension
formula and Thrift Savings (401(k))
Plan combined is above market.
How the Thrift Savings (401(k)) Plan Works
You become eligible to participate in the Thrift Savings (401(k)) Plan on your date of hire.
To enroll, you must call Vanguard at 1-800-523-1188.
For employees under the FAP Pension formula, the Thrift Savings (401(k)) Plan will
continue to work as it does today, with the same company matching contribution
amount: you receive a 50 percent company match on the first six percent of pay
you contribute (up to a three percent match). So, for every $1 you contribute up to
six percent of your pay, you receive an additional $0.50 from the company.
You can make three types of contributions to your Thrift Savings account. When you
enroll with Vanguard, you can make:

Pre-tax contributions from your paycheck (before taxes are taken from your pay)

After-tax contributions from your paycheck (after taxes are taken from your pay)

Roth contributions (after taxes are taken from your pay)
About Roth Contributions
You can learn more about Roth
contributions and Roth tax
advantages by reading the Thrift
Savings Plan Summary Plan
Description (SPD) found on the
company’s intranet site or by
going to the Vanguard website at
www.vanguard.com.
Your contributions to the Thrift Savings (401(k)) Plan are subject to the Internal Revenue
Code (“IRC”) and plan limitations. For more information on the Thrift Savings Plan,
visit the company’s intranet site at http://ceintranet/HR/EmployeeBenefits/Pages/
planDescriptions.aspx, or visit the Vanguard website at www.vanguard.com
(see page 18 for access information).
5
Hint!
Mark your calendar to review and
increase your contribution amount,
if necessary, before the end of
December 2012. This will ensure you
are receiving the full company match
available to you starting with your first
paycheck in January 2013.
To change your contribution amount
at any time, log in to the Vanguard
website at www.vanguard.com, or
call Vanguard at 1-800-523-1188,
and then follow the prompts.
Example
Lisa’s base salary is $100,000 per year, and in 2013 she is thinking of
contributing 2% of her annual pay ($2,000 pre-tax) to the Thrift Savings (401(k))
Plan. With the company match of $1,000 (50% of $2,000), her total in Thrift Plan
savings will be $3,000.
However, she visits the Vanguard website and uses the Retirement Income
Modeling tool to see whether she is on track to reach her retirement savings
goals. She realizes she can and needs to save a little more — at least enough to
get the full company match!
She decides to contribute 6% ($6,000 pre-tax) for 2013. She’ll receive a $0.50 per
$1 match on her entire contribution ($3,000).
By increasing her contribution by $4,000 (deducted over the course of the year),
she will receive an additional company match of $2,000 and will be saving a total
of $9,000 (instead of $3,000) toward her retirement!
Mix It Up With Investment Funds
The Thrift Savings (401(k)) Plan has numerous investment funds from which you can
choose. Learn more about these funds and how to diversify — and find the right mix
for you — by visiting the Vanguard website at www.vanguard.com.
6
An Example: A Look at What Retirement Income Could Be
Let’s assume Michael is under the FAP Pension formula and is age 40 with
15 years of service on January 1, 2013. His 2013 annual base salary is $90,000,
and he decides to contribute 8% of his pay (with a company match of 3%) to the
Thrift Savings (401(k)) Plan.
Here’s an example of how much of his income would be replaced in retirement by
his savings, Social Security, and other company retirement benefits, depending on
when he retires:
200
1.8 180
164%
Income Replacement %
1.6 160
140%
Save, Save, Save!
Many financial planners say you’ll
need 70 percent or more of your
current annual income to live
comfortably in retirement. So, if
you’re making $70,000 a year when
you retire, you’ll need about $49,000
a year in retirement income just to
maintain your current standard of
living — but that doesn’t include
doing some of the fun things in
retirement, like traveling.
1.4 140
1.2 120
1.0 100
82%
0.8 80
0.6 60
Retirement Plan
0.4 40
Thrift Savings
(401(k)) Plan
0.2 20
0.0
Social Security
Age 55
Age 62
Age 65
Retirement
Age
Retirement Plan
(Under the
FAP Pension
Formula)
Thrift Savings
(401(k)) Plan
Social Security
Total
Age 55
40%
42%
0%
82%
Age 62*
49%
69%
22%
140%
Age 65*
51%
86%
27%
164%
Note: This illustration assumes Michael’s pay grows at 3% each year, he receives a
7% investment return on his Thrift Savings (401(k)) Plan savings, and inflation grows
at 2.5%.
With the Retirement Plan and Thrift Savings (401(k)) Plan, Michael is well on his
way to meeting the retirement income goals recommended by many financial
planners. Keep in mind that these numbers do not include his personal savings
or savings from another employer, and can increase or decrease depending on
actual investment returns.
Although Con Edison provides you
with a valuable pension benefit, your
pension benefit combined with your
Social Security and personal savings
may not be enough. That’s why it’s
important to save in the Thrift Savings
(401(k)) Plan. And, when you do, you
get free money from the company in
the form of a matching contribution.
Many financial planners also suggest
you save between 10 percent and
15 percent annually of your income
for retirement beginning in your 20s.
So, be sure to take a look at how
much you’re saving in your Thrift
Savings (401(k)) Plan and increase
your contribution to six percent so that
you get the full company matching
contribution of three percent of pay.
That means you would be saving
nine percent of your pay in your Thrift
Savings (401(k)) Plan for the year.
*Includes Social Security
7
Retirement Plan
How the Plan Works Now (Before January 1, 2013)
Here’s a look at how the Final Average Pay (FAP) Pension formula works today:
FAP Pension Formula
Eligibility
An actively employed CECONY management employee who began working for
the company before January 1, 2001.
Formula
You receive a pension benefit based on a formula using your FAP (the highest
consecutive 48 months in the last 120 months of service).
The percentage of FAP provided varies based on your years of credited service
as follows:
1.5% of FAP for the first 24 years of accredited service; and
2.0% of FAP for the next 6 years of accredited service; and
0.5% of FAP for each year in excess of 30 years of accredited service.
In addition, your pension benefit is increased by 0.35% of FAP in excess of
the Social Security taxable wage base multiplied by years of service up to a
maximum of 30 years.
An additional special pension accrual of 0.5% for each year of service above
30 years will apply to employees actively employed on January 1, 2009, and who
are participants in the Consolidated Edison Retirement Plan. Employees on the
active payroll who were age 55 and have 30 or more years of service with the
company, or will turn age 55 with 30 or more years of service during the period of
January 1, 2009, through June 30, 2012, qualify for the special pension accrual.
The period beginning January 1, 2009, through June 30, 2012, is called the
“special accrual period.” If (1) you are at least age 55 and (2) you have at least
30 years of service, then you will receive a special pension accrual of 0.5% for
each year or part of the year during the period beginning January 1, 2009, and
ending June 30, 2012, in which you continue employment and satisfy both those
conditions.
A Total Salary formula* is used if it results in a pension benefit that is greater than
the FAP benefit. This formula is as follows:
2.2% for total pay for the first 30 years of service, plus 1.5% of the resulting
amount for each year of service in excess of 30.
Total pay under the Total Salary formula includes pay in the year you retire
and in each of the previous 14 years, plus pay for each earlier year of service
credited at your annual pay for the 14th (pivot) year before the year you retire.
*The Total Salary formula applies ONLY to a CECONY management participant who:
(1) was on the active payroll of CECONY on both December 31, 1982, and during the 1989
calendar year, or (2) terminated employment with a right to a vested pension benefit prior
to December 31, 1982, and who was rehired and repaid any cash-out.
8
Vesting
You are vested after five years of service.
Other Features
Unreduced Early Retirement pension benefit is offered at age 60 with
75 points (the 75-point rule is one point for each year of credited service plus
one point for each year of age), or age 55 with 30 years of credited service.
Reduced Early Retirement benefit is offered below age 60 with 75 points; a
1.5% reduction per year from age 60 to age 55 is applied.
Joint & Survivor (J&S) options are available for married participants (death
benefits for your surviving spouse).
There is no charge for the 50% J&S option.
Annual Cost of Living Adjustment (COLA) equals 75% of annual change
to CPI, up to 3%.
9
How the Retirement Plan Will Work
(Under the Total Rewards Changes Starting
January 1, 2013 for a CECONY Management or CEB
Employee Covered Under the FAP Pension Formula
Who Is Not Grandfathered)
Did You Know?
The company wants you to
build for a successful future in
retirement, and the pension plan
is a valuable part of that. That’s
why, even though a number of
employers have eliminated their
pension plans, the company’s
pension plan remains.
For employees under the FAP Pension formula who are under age 50 as of
January 1, 2013, the formula will work the same as it currently does with the
following changes:

An unreduced Early Retirement benefit is offered at age 60 (instead of age 55) to
employees with at least 75 points.
—— If you have 75 points and elect to retire and receive your pension between
age 55 and 60, a five percent reduction for every year that you elect to begin
your pension benefit before age 60 will be applicable to the portion of your
benefits earned on or after January 1, 2013. The portion of your pension
benefit earned before January 1, 2013, will not be reduced if you are between
ages 55 and 60 and you have at least 30 years of service when you retire.

If you are married when you retire, a charge for the 50 percent Joint & Survivor
(J&S) optional form of benefit will be applicable to a portion of your benefits
earned on or after January 1, 2013, that reflects the cost of the option and an
increased charge for the 75 percent and 100 percent J&S benefit. If you select
either one of these options, the amount of these new charges is based on your
age and your spouse’s age on the date that your pension benefit begins.
—— The charge will permanently reduce your future benefits earned on or after
January 1, 2013, and will vary by your age and the age of your spouse.
—— Here are illustrations of what the charges for the J&S options could be prior
to January 1, 2013, and on or after January 1, 2013, depending on your
age, and your spouse’s age, and the date your pension benefit begins:
Benefits Earned Before January 1, 2013
Illustrative 50% J&S Reduction Factors
Your spouse’s age when your pension benefit begins
Your age when your
pension benefit begins
45
50
55
60
65
55
0%
0%
0%
0%
0%
60
0%
0%
0%
0%
0%
65
0%
0%
0%
0%
0%
Your age when your
45
50
55
60
65
55
3%
3%
2%
2%
1%
60
5%
4%
3%
3%
2%
65
7%
6%
5%
4%
4%
Your age when your
45
50
55
60
65
55
6%
5%
4%
3%
3%
60
9%
8%
7%
5%
4%
65
12%
11%
10%
8%
7%
10
Benefits Earned on or After January 1, 2013
Your age when your
45
50
55
60
65
55
7%
6%
5%
4%
3%
60
10%
9%
7%
6%
4%
65
14%
13%
11%
9%
7%
Your age when your
45
50
55
60
65
55
9%
8%
7%
5%
4%
60
14%
12%
10%
8%
6%
65
20%
18%
16%
13%
11%
Your age when your
45
50
55
60
65
55
12%
11%
9%
7%
5%
60
18%
16%
13%
11%
8%
65
25%
23%
20%
17%
14%
Remember, the 50 percent J&S charge and increased charge for the 75 percent and
100 percent J&S benefit applies only to the portion of your pension benefit earned on or
after January 1, 2013 — not to your earned (accrued) benefit prior to January 1, 2013.
11
Examples
Make a Statement
Wondering what your pension benefit
will be in retirement? Thinking about
retirement, or planning to retire, and
need a pension estimate?
You will be able to calculate your
future earned benefit with the new
plan changes by using the Pension
Estimating System on OnPoint,
starting later this year. You will
receive more details when the
website is updated.
If you plan to retire before
December 31, 2012, and need a
pension estimate now, the Pension
Estimating System is available for
2012 projections.
Please note that the pension
calculator provides pension
estimates for employees up to
age 65. If you are age 65 or older
and need a pension estimate,
contact Con Edison Employee
Benefits at 1-800-582-5056.
Early Retirement Benefit Change
Meet Julie
Julie is single and age 40 on January 1, 2013, with 15 years of service. Her annual
base salary is $90,000, and she expects to receive merit increases of 3%.

She retires at age 55 with 30 years of service on January 1, 2028.

Without the change, Julie would have received an unreduced Early
Retirement benefit of $62,544.

With this change, her vested accrued pension benefit will be reduced for
Early Retirement from $62,544 to $54,238.
Accrued
Benefit
Reduction
Factor
Before
Change
Benefit
Before
Change
Reduction
Factor
After
Change
Benefit
After
Change
Accrued benefit
attributed to service
prior to 1/1/2013
$29,318
--
$29,318
--
$29,318
1/1/2013
$33,226
--
$33,226
25%
$24,920
Total
$62,544
--
$62,544
--
$54,238
The following chart illustrates how the change in the Early Retirement provisions
affects Julie’s benefit at different retirement ages (assuming her pay continues to
grow at 3% per year).
Pension Benefit
Age
Service
Current
New
Change
55
30
$62,544
$54,238
($8,306)
56
31
$65,091
$58,112
($6,979)
57
32
$67,735
$62,240
($5,495)
58
33
$70,479
$66,635
($3,844)
59
34
$73,327
$71,311
($2,016)
60
35
$76,282
$76,282
$0
Note: If Julie delays her retirement until age 60 and then begins her pension, she
is in the same position as she would have been under the Retirement Plan before
the Total Rewards change to the Early Retirement age.
12
Early Retirement Benefit Change
Meet Marvin
Marvin is age 48 on January 1, 2013, with 18 years of service. His annual base
salary is $90,000, and he expects to receive annual merit increases of 3%.
If Marvin retires at age 55 with 25 years of service on January 1, 2020:

Without the change, Marvin would have received an unreduced Early
Retirement benefit of $36,155 per year.

With the Total Rewards change to Early Retirement benefits, his vested
accrued pension benefit will be reduced for Early Retirement from $36,155
to $34,175 per year.
Accrued
Benefit
Reduction
Factor
Before
Change
Benefit
Before
Change
Reduction
Factor
After
Change
Benefit
After
Change
Accrued benefit
attributed to service
prior to 1/1/2013
$27,772
7.5%
$25,689
7.5%
$25,689
1/1/2013
$11,315
7.5%
$10,466
25%
$8,486
Total
$39,087
--
$36,155
--
$34,175
The following chart illustrates how the change in the Early Retirement provisions
affects Marvin’s benefit at different retirement ages after age 55 (assuming no
changes to his final average pay after age 55).
Pension Benefit
Age
Service
Current
New
Change
55
25
$36,155
$34,175
($1,980)
56
26
$39,835
$37,907
($1,928)
57
27
$43,770
$42,051
($1,719)
58
28
$47,971
$46,634
($1,337)
59
29
$52,455
$51,685
($770)
60
30
$57,237
$57,237
$0
50% J&S Benefit Change
If Marvin is married when he retires and elects to receive his pension at
age 60 with 30 years of service on January 1, 2025, with a final average pay
of $119,243:

Without the Total Rewards change to the 50% J&S benefit, Marvin would have
received a pension benefit of $57,237 per year.

With the Total Rewards change, if Marvin elects to take the 50% J&S, his
pension benefit will be permanently reduced from $57,237 to $55,735 per year.
Amount
Reduction
Factor
Adjusted
Benefit
Accrued benefit prior to 1/1/2013
attributed to service (charge for 50% J&S
coverage does not apply to this portion of
the benefit)
$32,196
--
$32,196
Accrued benefit after 1/1/2013 (assuming
spouse is same age and there is a 6%
charge on this portion of the benefit)
$25,041
6%
$23,539
Total
$57,237
--
$55,735
13
The Big Picture: How the Changes Work Together
Using Julie and Marvin as examples, here’s how the three Total Rewards changes of
Variable Pay (see the “Focus on Pay” brochure sent to your home in April for details),
change in Early Retirement reduction, and J&S charges all work together:
Julie
If Julie is married and elects the 50% J&S benefit, there will be a charge applied to the
portion of her benefit earned on and after January 1, 2013. The combined impact of all
three Total Rewards changes is:
Pension Benefit
Age
Service
Current
2%
Increase
in Variable
Pay
55
30
$62,544
$1,251
($8,473)
($1,159)
($8,381)
$54,163
56
31
$65,091
$1,302
($7,118)
($1,364)
($7,180)
$57,911
57
32
$67,735
$1,355
($5,605)
($1,594)
($5,844)
$61,891
58
33
$70,479
$1,410
($3,921)
($1,860)
($4,371)
$66,108
59
34
$73,327
$1,467
($2,057)
($2,157)
($2,747)
$70,580
60
35
$76,282
$1,526
$0
($2,502)
($976)
$75,306
Early
Retirement
Reduction
J&S
Charge*
Total
Change
Final
Benefit
*Assumes spouse is same age as retiree
Marvin
If Marvin is married and elects the 50% J&S benefit, there will be a charge applied to
the portion of his benefit earned on and after January 1, 2013. The combined impact
of all three Total Rewards changes is:
Pension Benefit
Age
Service
Current
2%
Increase
in Variable
Pay
55
25
$36,155
$724
($2,020)
($395)
($1,691)
$34,464
56
26
$39,835
$797
($1,967)
($538)
($1,708)
$38,127
57
27
$43,770
$875
($1,752)
($712)
($1,589)
$42,181
58
28
$47,971
$960
($1,365)
($924)
($1,329)
$46,642
59
29
$52,455
$1,049
($785)
($1,177)
($913)
$51,542
60
30
$57,237
$1,144
$0
($1,481)
($337)
$56,900
*Assumes spouse is same age as retiree
14
Early
Retirement
Reduction
J&S
Charge*
Total
Change
Final
Benefit
Retiree Health and Retiree Life Insurance
Retiree Health
How the Plan Works
Currently, the company offers employees who satisfy certain age and service
requirements access to Retiree Health coverage, and the company shares in the
cost to help pay for this coverage. The amount that the company pays toward these
costs is the same amount as the company contributed in the previous year, plus a
cost-of-living adjustment based on the change in the Consumer Price Index (CPI). If
health-care costs rise above the CPI, retirees’ monthly contributions are increased.
To be eligible at retirement for the benefit, your years of credited service plus age
must equal or exceed 75, you must be covered under the active health-care program
maintained by the company, and you must elect coverage under the Retiree Health
Program immediately upon retirement. If you have other group health coverage when
you retire, you must maintain the other group health coverage until such time that you
elect to enroll in the Retiree Health Program.
For employees under the FAP Pension formula, there are no Total Rewards changes to
Retiree Health benefits; the company will continue to share with employees the cost of
this coverage under the same formula that exists today.
It is important to keep in mind that the company is not obligated to contribute any fixed
amount or percentage to the program and can change or terminate the program at
any time.
When you initiate the retirement process with the company, you will receive information
at that time about the specific costs of this benefit and how to enroll.
If you have at least 75 points when you retire and elect to receive an immediate
pension benefit upon retirement, you will be covered under the company’s Retiree Life
Insurance program for $50,000, fully paid for by the company. The death benefit is
payable to your beneficiary(ies) when you die.
How the Plan Will Work Starting January 1, 2013
Employees who are age 50 or older on January 1, 2013, and meet the eligibility
requirements when they retire on or after that date will receive a company-paid Retiree
Life Insurance benefit in the amount of $25,000 instead of $50,000. You will receive
information about any actions you may need to take and how the benefit works when
you initiate your retirement.
All employees who are under age 50 on January 1, 2013, will no longer be eligible for
the company-paid Retiree Life Insurance benefit.
Example
Dave has been an employee
for 25 years and is 55 years
old on January 1, 2013. He is
a “grandfathered” employee,
so the Total Rewards pension
changes don’t apply to him.
However, he is planning to retire
on March 15, 2013. Starting in
April 2013, the company will
provide him with a $25,000
Retiree Life Insurance benefit.
Susan has been an employee
for 20 years and is 49 years old
on January 1, 2013. She is not
a grandfathered employee, so
she will not be eligible to receive
a company-paid Retiree Life
Insurance benefit whenever
she retires.
15
We Hear You
Here are the most frequently asked questions (FAQs) employees are asking about the
changes. You can find more FAQs in the “Frequently Asked Questions” section on
HR Online (accessible from any computer at work).
General
Q: How do I review the big picture? In other words, the value of all of my
retirement income benefits altogether?
A: Access both the Vanguard and OnPoint websites for your current benefits (see
page 18 for access information). Later this year, these websites will be updated with
personalized tools and resources reflecting the 2013 plan changes.
Q: Where can I find Summary Plan Descriptions (SPDs) describing these benefits?
A: SPDs are posted on the company’s intranet. Click on “Human Resources,” then
“Benefits,” and then “Plan Descriptions,” to find the SPDs. This Summary of Material
Modifications (SMM) will also be posted on that site.
Q: How do I initiate retirement?
A: To initiate your retirement,
notify your supervisor and
Human Resources representative
of your intent to retire at least
30 days before your retirement
date. You will be scheduled for a
retirement interview.
Q: I was a former union employee who transferred to management. Do the
pension changes in this brochure apply to me?
A: If you began your career as a union employee eligible to receive a pension benefit
under a FAP Pension formula, then you continue to earn benefits under a FAP
Pension formula.
If you are a non-grandfathered management employee on January 1, 2013, then the
FAP Pension formula changes taking effect will apply to the benefit you earn while you
are a management employee.
Pension
Q: How do I know what my pension amount will be at a specific age?
A: Use the Pension Estimating System tool through OnPoint (see page 18 for access
information). The tool will be updated later in 2012 to reflect the new 2013 pension
formula changes.
Q: I’m over age 50 and in the Cash Balance Pension formula. Will I still be able to
make catch-up contributions?
A: Yes. You can make additional catch-up contributions to your pre-tax and Roth Thrift
Savings (401(k)) Plan of up to the IRC limit in 2013 (currently $5,500 in 2012).
Note that you can also contribute to the plan on an after-tax basis.
16
Retiree Health
Q: How much does Retiree Health coverage cost?
A: The cost of Retiree Health coverage changes from year to year and depends on
whether you are eligible for Medicare. Additionally, whether covered or not under
Medicare, if you are covered under the FAP Pension formula (or covered under the
Cash Balance Pension formula and retire before January 1, 2013), you will continue to
share the cost of coverage with the company. The company’s contribution is based on a
formula equal to its prior year’s contribution plus a cost-of-living adjustment as measured
by the change in the Consumer Price Index (CPI). Each year the cost for retirees
changes if the cost of the Retiree Health Program increases above CPI. It is important
to keep in mind that the company is not obligated to contribute any fixed amount or
percentage to the program and can change or terminate the program at any time.
More information about Retiree Health coverage rates will be provided in a later
communication.
Q: Are spouses eligible for Retiree Life Insurance?
A: The Retiree Life Insurance benefit does not provide life insurance for a
retiree’s spouse.
17
Resources at Your Fingertips
Below are contact details for your retirement benefits. For general benefit questions,
visit HR Online > Benefits or call the Con Edison Employee Benefits Center at
1-800-582-5056.
Contact
Remember!
The Vanguard and OnPoint websites
will be updated with 2013 plan
information later this year.
Remember to Check
Your Beneficiaries!
It’s important to keep your
designation of beneficiaries
for your retirement benefits
up-to-date so your beneficiaries
will be eligible to receive these
benefits upon your death.
You can change your Thrift
Savings (401(k)) Plan and Retiree
Life Insurance beneficiaries at
any time through the benefit
resources shown on the right.
(If you are married, your spouse
is the beneficiary of your Thrift
Savings (401(k)) Plan, unless he
or she signs a waiver.) Generally,
it’s a good idea to review your
beneficiaries at least once a year
and anytime you experience a
life event that could impact your
benefits — including marriage,
divorce, birth or adoption of a
child, or death.
18
What You Can Do
Vanguard
1-800-523-1188
Review your:
—— Account balance
From the office:
HR Online > Benefits
—— Personal information
From home:
www.vanguard.com
—— Asset mix
Change your contribution rate
To register, go to
www.vanguard.com/register
and follow the prompts
Use retirement savings planning tools
(tools will be updated with 2013 plan
changes later this year)
The plan name and number is
“The Consolidated Edison Thrift
Savings Plan” — 090042
Request to opt out of quarterly
statements mailed to your home
—— Plan rules
Speak with a Vanguard Participant
Services Associate
Retirement Plan
OnPoint
From the office:
From home:
https://coned-db.
buckwebsolutions.com
Review your:
—— Personal information (updated
monthly)
—— Plan rules
Visualize how your various retirement
income sources (pension, 401(k), and
personal savings) work together in
retirement and generate an estimated
pension benefit (for employees up
to age 65, if you plan to retire by
December 31, 2012)
Contact Human Resources through
the Con Edison Employee Benefits
Center
CEB Employees Only
For
Contact
The Consolidated Edison
Thrift Savings Plan SPD
From the office:
Outlook > Public Folders >
Competitive Shared Services >
Human Resources > 401(k) Thrift
Savings Plan
Other SPDs and general benefits
questions
Senior Human Resources Specialist or
Director of Human Resources
Looking Ahead — What to Expect
Look for additional communication in the coming months on the Total Rewards
changes. Brochures on the following topics will include examples and scenarios to
help you better understand the changes and any steps needed to meet enrollment
deadlines:
JULY
SEPTEMBER
NOVEMBER *
Wellness
Health
Time Off
AY
ment
*CEB
employees
will notparts
receive
November
Time OffProgram
brochure.
of brochures on
changes
to different
of a
your
Total Rewards
ble. Each brochure will include examples and scenarios to help you better
the changes and any steps needed to meet enrollment deadlines.
E-mail Box
ate a lot of information in
s to your home. Please
Benefits Fairs
etings being offered at
d for information about
This communication about Total Rewards constitutes a summary of material
modifications to the Summary Plan Descriptions (SPDs) for the Plans. For more details,
see the Consolidated Edison Retirement Plan’s summary plan description (“SPD”),
the Options SPD, and the Consolidated Edison Thrift Savings Plan’s SPD, which are
posted on the company’s intranet. Go to http://ceintranet/HR/EmployeeBenefits/
Pages/planDescriptions.aspx and then click on “Plan Descriptions” to find the SPDs.
Your Total Rewards as they now exist and as they will be changed are always
governed by the official plan documents and policies. The company reserves the
right to amend, modify, or terminate the plans.
Printed on recycled paper
19
CECONY FAP
FOCUS ON RETIREMENT
It’s Your Future
Planning for a secure retirement is an important goal for you and your family.
Con Edison supports you by providing a comprehensive Total Rewards package
that includes your compensation (base salary and variable pay), retirement and
health-care benefits, and other valuable benefits, such as time off.
Earlier this year, you began hearing about changes to the company’s retirement benefits.
These changes take your feedback into account to recognize what you most value, and
better align our Total Rewards with the marketplace and across our companies.
While you should have received an overview of the Total Rewards changes both at
work and at home earlier this year, take a few minutes now to read about the details
of the changes to your retirement benefits and how they impact you. This brochure
describes the changes to a CECONY management or CEB employee who is covered
under the Cash Balance Pension formula. Keep this brochure handy in the future for
your reference once the changes take effect.
Also, note that the federal law of ERISA requires us to notify you of changes to the
Consolidated Edison Retirement Plan, the Consolidated Edison, Inc. Retiree Health
Program, the Consolidated Edison Retiree Life Plan and the Consolidated Edison
Thrift Savings Plan. This brochure is a Summary of Material Modifications (“SMM”)
that provides you with information about what is changing for the Consolidated
Edison Retirement Plan, the Consolidated Edison, Inc. Retiree Health Program, the
Consolidated Edison Retiree Life Plan and the Consolidated Edison Thrift Savings Plan,
the effective date of each change, and employees who are affected by each change.
What’s Inside
What’s Happening.............................. 2
Retirement Changes At-a-Glance....... 3
Thrift Savings (401(k)) Plan.............. 4
Retirement Plan............................... 7
Retiree Health and Retiree
Life Insurance.................................. 9
We Hear You.................................... 10
Resources at Your Fingertips............ 11
Looking Ahead — What to Expect... 12
Understanding Your Retirement Benefits
What We’ve Heard
What We’re Doing
The benefits are too
complex to really
understand.
The company is committed to providing you with
more frequent and clearer communication to help
you understand how the programs work and the
full value of your benefits.
Getting information
about the retirement
benefits is difficult.
You can access information about your retirement
benefits by using the OnPoint pension calculator
found on the company’s intranet site at HR Online.
The pension calculator will be updated with the
new plan changes to help you get the information
you need, when you need it.
CEB Employee?
The references throughout this
brochure to the company intranet
at HR Online, OnPoint, the
Con Edison Employee Benefits
Center, and the link to access
Summary Plan Descriptions
(SPDs) do not apply to you.
See page 11 for CEB contact
information and resources.
Your Total Rewards
For CECONY Management and CEB
Employees Covered Under the Cash Balance
Pension Formula
What’s Happening
Understanding Your Retirement Income
Your income in retirement will likely come from several sources. That’s why it’s
important to understand the role that each will play — including your retirement
benefits from the company:
2

The Retirement Plan. Depending on your start date, you may be eligible to
receive a pension from the company under the Cash Balance Pension formula.
See page 7 for details about the Cash Balance Pension formula.

The Thrift Savings (401(k)) Plan. When you contribute to the Thrift Savings Plan,
the company makes matching contributions. See page 4 for details about this plan.

The Stock Purchase Plan. When you contribute to the Stock Purchase Plan,
the company makes matching contributions. For details about this plan, go to
the company’s benefits intranet site at http://ceintranet/HR/EmployeeBenefits/
Pages/planDescriptions.aspx and click on “Stock Purchase Plan.”

Social Security. Both you and the company (as well as your previous employers,
if any) contribute to Social Security. You will be eligible for Social Security benefits
in retirement if you’ve been employed for at least 10 years. For information about
your future Social Security benefits, contact the Social Security Administration at
1-800-772-1213 or visit www.ssa.gov.

Savings plan accounts and pensions from other employers. If you’ve worked
at other companies, you may have participated in another pension plan or
contributed to a savings plan. Remember to account for those benefits as you
consider your retirement income strategy.

Your personal savings. This might include investment accounts, such as
individual retirement accounts (IRAs), brokerage accounts, savings bonds,
certificates of deposit (CDs), health savings accounts (HSAs), and traditional
savings accounts.
Retirement Changes At-a-Glance
Here’s a summary of the changes to your retirement benefits taking effect on
January 1, 2013.
What’s Changing
Why?
Increased company match from 3% The total retirement income benefit
offered to you when the Cash
(50% match on first 6% of your pay
Balance Pension formula and the
that you contribute to the plan) to
current Thrift Savings (401(k)) Plan
6% (100% match on the first 4% of
are combined is below market.
your pay that you contribute to the
plan, plus 50% match on the next
Employees see value in creating
4% of your pay that you contribute
incentives to save more — such as
to the plan).
requiring savings levels of 8% of
pay to receive the maximum match.
Cash Balance Pension Formula
The retirement benefit under the
Total Rewards did not make any
Cash Balance Pension formula is
changes to the Cash Balance
in line with our peer companies.
Pension formula, but the
company will provide increased
Despite the competitive Cash
communication and education
Balance Pension formula, you
about how the Cash Balance
told us that you don’t completely
Pension formula works and the value
understand or appreciate this
that it provides for your retirement.
valuable benefit.
Retiree Health
If your years of service plus age are
greater than or equal to 75 when
you retire, you will continue to have
access to Retiree Health but will be
required to pay the full cost of the
coverage (the company subsidy is
being eliminated).
If you retire before January 1, 2013,
and enroll in Retiree Health, you
will share the cost of Retiree Health
coverage with the company under
the current cost-sharing formula.
Retiree health care coverage is
above market when compared to
the company’s peer group.
The costs to offer this benefit are
high; many companies today are
cutting back or eliminating Retiree
Health plan benefits to help
mitigate these costs.
How Were Retirement
Benefits Evaluated?
The company evaluated all of
our Total Rewards, including our
retirement benefits, in three ways:

Solicitation of employee input
(leadership interviews, focus
groups, and employee surveys)

Benchmarking of current
programs against a peer group
of utilities and New York metro
companies

Review of alternative designs
with a consistent set of guiding
principles
Because employee retirement income
is generally supported by both the
Retirement Plan and Thrift Savings
(401(k)) Plan benefits, the company
analyzed the value of each program
individually and then as a package.
The high costs associated with
providing Retiree Health will be
re-allocated to higher-value programs,
such as the company match in the
Retiree Life Insurance is an
If you are age 50 or older on
above-market benefit with
January 1, 2013, and you satisfy the
perceived low value by employees.
eligibility requirements for Retiree
Life Insurance when you retire, your These changes are designed to
Retiree Life Insurance benefit will be
align the benefit closer to the
$25,000, instead of $50,000.
median of our peer group and
across company businesses.
If you are under age 50 on
January 1, 2013, you will not be
eligible for Retiree Life Insurance
when you retire.
3
How the Thrift Savings (401(k)) Plan Works Now
(Before January 1, 2013)
You become eligible to participate in the Thrift Savings (401(k)) Plan on your date of hire.
To enroll, you must call Vanguard at 1-800-523-1188.
About Roth Contributions
You can learn more about Roth
contributions and Roth tax
advantages by reading the Thrift
Savings Plan Summary Plan
Description (SPD) found on the
company’s intranet site or by
going to the Vanguard website at
www.vanguard.com.
If you currently participate in the Thrift Savings (401(k)) Plan, you receive a 50 percent
company match on the first six percent of pay you contribute (up to a three percent
match). So, for every $1 you contribute up to six percent of your pay, you receive an
additional $0.50 from the company.
You can make three types of contributions to your Thrift Savings account. When you
enroll with Vanguard, you can make:

Pre-tax contributions from your paycheck (before taxes are taken from your pay)

After-tax contributions from your paycheck (after taxes are taken from your pay)

Roth contributions (after taxes are taken from your pay)
Your contributions to the Thrift Savings Plan are subject to the Internal Revenue
Code (“IRC”) and plan limitations. For more information on the Thrift Savings Plan,
visit the company’s intranet site at http://ceintranet/HR/EmployeeBenefits/Pages/
planDescriptions.aspx, or visit the Vanguard website at www.vanguard.com (see
page 11 for access information).
Employees in the Cash Balance Pension formula will be eligible to receive an
increased company match of six percent of pay (100 percent match on the first four
percent of your pay that you contribute to the plan, plus 50 percent match on the
next four percent of your pay that you contribute to the plan). This means you will
be able to receive an employer-matching contribution of six percent of your pay if
you make a contribution of eight percent of your pay; for a total contribution of up
to 14 percent (or more, if you contribute more than eight percent) of your pay in the
NEW FOR JANUARY 1, 2013
8
%
Employees in the Cash
Balance Pension Formula
Contribute up to
8% of your pay
6
%
The Company
Matches 100% of the first
4% of your contributions,
plus an additional 50% on
the next 4% (up to 6% total)
14%
Potential retirement
savings of up to 14%
of your pay in the
If your current contribution is less than eight percent, be sure to increase it to ensure
you’re receiving the maximum company match. See the next page for instructions.
4
Example
Lisa is under the Cash Balance Pension formula. Her base salary is $100,000
per year, and in 2013 she is thinking of contributing 2% of her annual pay ($2,000
pre-tax) to the Thrift Savings (401(k)) Plan. With the company match, she will earn
another $2,000, and her total in Thrift Plan savings will be $4,000.
However, she visits the Vanguard website and uses the Retirement Income
Modeling tool to see whether she is on track to reach her retirement savings
goals. She realizes she can and needs to save a little more — and with the
increased company match has no reason not to!
She decides to contribute 8% ($8,000 pre-tax) for 2013 — this will allow her to
receive the full company matching contribution. She’ll earn a $1 for $1 match on
the first 4% ($4,000) and another $0.50 for $1 match on the next 4% ($2,000).
By increasing her contribution by $6,000, she receives a total of $4,000 in additional
company match. She will be saving a total of $14,000 toward her retirement!
Hint!
Mark your calendar to review and
increase your contribution amount,
if necessary, before the end of
December 2012. This will ensure you
are receiving the full company match
available to you starting with your first
paycheck in January 2013.
To change your contribution amount
at any time, log in to the Vanguard
website at www.vanguard.com, or
call Vanguard at 1-800-523-1188,
and then follow the prompts.
Mix It Up With Investment Funds
The Thrift Savings (401(k)) Plan has numerous investment funds from which you can
choose. Learn more about these funds and how to diversify — and find the right mix
for you — by visiting the Vanguard website at www.vanguard.com.
5
Many financial planners say you’ll
need 70 percent or more of your
current annual income to live
comfortably in retirement. So, if
you’re making $70,000 a year when
you retire, you’ll need about $49,000
a year in retirement income just to
maintain your current standard of
living — but that doesn’t include
doing some of the fun things in
retirement, like traveling.
Although Con Edison provides you
with a valuable pension benefit, your
pension benefit combined with your
Social Security and personal savings
may not be enough. That’s why it’s
important to save in the Thrift Savings
(401(k)) Plan. And, when you do, you
get free money from the company in
the form of a matching contribution.
Many financial planners also suggest
you save between 10 percent and
15 percent annually of your income for
retirement beginning in your 20s. So,
be sure to take a look at how much
you’re saving in your Thrift Savings
(401(k)) Plan and increase your
contribution to eight percent so that
you get the full company matching
contribution of six percent of pay.
That means you would be saving
14 percent of your pay in your Thrift
Savings (401(k)) Plan for the year.
6
An Example: A Look at What Retirement Income Could Be
Let’s assume Michael is age 25 and is hired on January 2, 2013. His 2013 annual
base salary is $70,000 and he decides to contribute 8% of his pay each year to the
Thrift Savings (401(k)) Plan. Here’s an example of how much of his income would be
replaced in retirement by his savings, Social Security, and other company retirement
benefits, depending on when he retires:
2.0
200
1.8
180
1.6
160
Income Replacement %
Save, Save, Save!
1.4
140
1.2
120
1.0
100
0.8
80
0.6
60
0.4
40
0.2
20
0.0
169%
137%
68%
Retirement Plan
Thrift Savings
(401(k)) Plan
Social Security
Age 55
Age 62
Age 65
Retirement
Age
Retirement
Plan
Thrift Savings
(401(k)) Plan
Social Security
Total
Age 55
15%
53%
0%
68%
Age 62*
24%
88%
25%
137%
Age 65*
29%
109%
31%
169%
Note: This illustration assumes Michael’s pay grows at 3% each year, he receives a
7% investment return on his Thrift Savings (401(k)) Plan savings, and inflation grows
at 2.5%. It also assumes a Cash Balance Interest Crediting Rate of 5%.
With the Pension Plan and Thrift Savings (401(k)) Plan, Michael is well on his way
to meeting the retirement income goals recommended by many financial planners.
Keep in mind that these numbers do not include his personal savings or savings
from another employer, and can increase or decrease depending on actual
investment returns.
*Includes Social Security
Retirement Plan
How the Plan Works
Here’s a look at how the Cash Balance Pension formula works:
Cash Balance Pension Formula
Eligibility
Eligible management employees who began working for the
company on or after January 1, 2001
Formula
Your benefits are expressed as a “Cash Balance account”
that is credited at the end of each quarter with an amount
equal to a percent of pay (4% – 7%, depending on your age
and years of service) and interest (currently based on 30-year
Treasury rates), subject to a 3% annual minimum and 9%
annual maximum
Points
(Age + Years of Service)
Pay Credit
<35
4%
35 – 49
5%
50 – 64
6%
65+
7%
In addition, your Cash Balance account will be credited with
4% of your compensation in excess of the Social Security
Wage Base ($110,100 per year in 2012)
Vesting
You are fully vested after three years of service
Other Features
Upon retirement or termination of employment, you may
choose:
A Single Life annuity (for single participants)
A 50%, 75%, or 100% Joint & Survivor (J&S) annuity
(for married participants)
A single sum payment
Other payment options provided for by the plan
(Total Rewards did not make any changes to the Cash Balance Pension formula.)
7
An Example: Meet Brad
Brad is hired at age 25 with an annual base pay of $70,000. He receives 5% each year in variable pay, and expects to receive merit
increases of 3%. Assuming a 5% annual Cash Balance Interest Crediting Rate, here is an illustration of how his Cash Balance account
will grow each quarter over the first three years of his career:
nnual pay divided by 4 (quarters per year) + Variable Pay (if any for that quarter) = Total Pay for Quarter
A
Total Pay for quarter x 4% Pay Credit = Quarterly Allocation
Quarterly Allocation + Quarterly Interest Accrual (1.25% of Account Balance at beginning of quarter) =
Account Balance at End of Quarter



Points
(Age +
Service)
Annual
Base
Salary
Variable
Pay
Total
Pay for
Quarter
Pay
Credit
Quarterly
Allocation
Quarterly
Interest
Accrual
Account
Balance
(End of
Quarter)
Quarter
Rounded
Age
Rounded
Years of
Service
1
25
0
25
$70,000
$-
$17,500
4%
$700
$-
$700
2
25
0
25
$70,000
$-
$17,500
4%
$700
$9
$1,409
3
26
1
27
$70,000
$-
$17,500
4%
$700
$18
$2,127
4
26
1
27
$70,000
$-
$17,500
4%
$700
$27
$2,854
5
26
1
27
$72,100
$3,500
$21,525
4%
$861
$36
$3,751
6
26
1
27
$72,100
$-
$18,025
4%
$721
$47
$4,519
7
27
2
29
$72,100
$-
$18,025
4%
$721
$56
$5,296
8
27
2
29
$72,100
$-
$18,025
4%
$721
$66
$6,083
9
27
2
29
$74,263
$3,605
$22,171
4%
$887
$76
$7,046
10
27
2
29
$74,263
$-
$18,566
4%
$743
$88
$7,877
11
28
3
31
$74,263
$-
$18,566
4%
$743
$98
$8,718
12
28
3
31
$74,263
$-
$18,566
4%
$743
$109
$9,570
After three years of continuous service with the company, Brad will have a vested account balance of $9,570.
8
Retiree Health and Retiree Life Insurance
Retiree Health
Currently, the company offers employees who satisfy certain age and service
requirements access to Retiree Health coverage, and the company helps pay for this
coverage. The amount that the company pays toward the cost is the same amount as
the company contributed in the previous year, plus a cost-of-living adjustment based
on the change in the Consumer Price Index (CPI). If health-care costs rise above the
CPI, retirees’ monthly contributions are increased.
To be eligible at retirement for the benefit, your years of service plus age must equal or
exceed 75.
Total Rewards is not changing the eligibility requirements for Retiree Health coverage.
Effective January 1, 2013, as an employee under the Cash Balance Pension formula,
you will continue to have access to coverage through the company, but will pay for the
full cost of the coverage.
Example
Steve has been an employee
for 5 years and is 55 years old.
He plans to retire in 10 years, in
which case his years of service
and age will equal 80.
At that time, the company will
provide him with an option for
retiree health-care coverage. He
will be responsible for the full cost
of this coverage, so he’ll need to
investigate and compare other
options available to him to obtain
coverage that meets his needs at
the right price.
When you initiate the retirement process with the company, you will receive information
at that time about the specific costs of this benefit and how to participate.
Example
How the Plan Works Now for Cash Balance Employees
Who Retire Before January 1, 2013
Dave has been an employee
for 10 years and is 55 years
old on January 1, 2013. He is
“grandfathered,” so the Retiree
Life Insurance changes don’t
apply to him.
Employees who satisfy certain eligibility requirements upon retirement receive a
$50,000 Retiree Life Insurance benefit, fully paid for by the company. The death benefit
is payable to your beneficiary(ies) when you die.
How the Plan Will Work for Cash Balance Employees
Who Retire After January 1, 2013
Employees who are age 50 or older on January 1, 2013, and retire on or after that date
will receive a company-paid Retiree Life Insurance benefit in the amount of $25,000.
You will receive information about any actions you may need to take and how the
benefit works when you initiate your retirement.
Susan has been an employee for
10 years and is 49 years old on
January 1, 2013. She will not be
eligible to receive a company-paid
Retiree Life Insurance benefit
when she retires.
Employees who are under age 50 on January 1, 2013, will no longer be eligible to
receive a company-paid Retiree Life Insurance benefit.
9
We Hear You
Here are the most frequently asked questions (FAQs) employees are asking about the
changes. You can find more FAQs in the “Frequently Asked Questions” section on
HR Online (accessible from any computer at work).
General
Q: How do I review the big picture? In other words, the value of all of my
retirement income benefits altogether?
A: Access both the Vanguard and OnPoint websites for your current benefits (see
page 11 for access information). Later this year, these websites will be updated with
personalized tools and resources reflecting the 2013 plan changes.
Q: Where can I find Summary Plan Descriptions (SPDs) describing these benefits?
A: SPDs are posted on the company’s intranet. Click on “Human Resources,” then
“Benefits,” and then “Plan Descriptions,” to find the SPDs. This Summary of Material
Modifications (SMM) will also be posted on that site.
Q: How do I initiate retirement?
A: To initiate your retirement,
notify your supervisor and
Human Resources representative
of your intent to retire at least
30 days before your retirement
date. You will be scheduled for a
retirement interview.
Pension
Q: How do I know what my pension amount will be at a specific age?
A: Use the Pension Estimating System tool through OnPoint (see page 11 for access
information). The tool will be updated later in 2012 to reflect the new 2013 pension
formula changes.
Q: I’m over age 50 and in the Cash Balance Pension formula. Will I still be able to
make catch-up contributions?
A: Yes. You can make additional catch-up contributions to your pre-tax and Roth Thrift
Savings (401(k)) Plan of up to the IRC limit in 2013 (currently $5,500 in 2012).
Note that you can also contribute to the plan on an after-tax basis.
Retiree Health
Q: How much does Retiree Health coverage cost?
A: The cost of Retiree Health coverage changes from year to year and depends
on whether you are eligible for Medicare. Additionally, if you retire on or after
January 1, 2013, you will pay the full cost of the coverage.
More information about specific Retiree Health coverage rates will be provided in a
later communication.
Q: Are spouses eligible for Retiree Life Insurance?
A: The Retiree Life Insurance benefit does not provide life insurance for a
retiree’s spouse.
10
Resources at Your Fingertips
Below are contact details for your retirement benefits. For general benefit questions, visit
HR Online > Benefits or call the Con Edison Employee Benefits Center at 1-800-582-5056.
Contact
What You Can Do
Vanguard
1-800-523-1188
From the office:
From home:
www.vanguard.com
To register, go to
www.vanguard.com/register
and follow the prompts
The plan name and number is
“The Consolidated Edison Thrift
Savings Plan” — 090042
Review your:
—— Personal information
—— Plan rules
—— Asset mix
Change your contribution rate
Use retirement savings planning tools
(tools will be updated with 2013 plan
changes later this year)
Request to opt out of quarterly
statements mailed to your home
Speak with a Vanguard Participant
Services Associate
Retirement Plan
OnPoint
From the office:
From home:
https://coned-db.
buckwebsolutions.com
Review your:
—— Personal information (updated
monthly)
—— Plan rules
Visualize how your various retirement
income sources (pension, 401(k), and
personal savings) work together in
retirement and generate an estimated
pension benefit (for employees up
to age 65, if you plan to retire by
December 31, 2012)
Contact Human Resources through the
Con Edison Employee Benefits Center
Remember!
The Vanguard and OnPoint websites
will be updated with 2013 plan
information later this year.
Remember to Check Your
Beneficiaries!
It’s important to keep your
designation of beneficiaries for
your retirement benefits up-todate so your beneficiaries will be
eligible to receive these benefits
upon your death.
You can change your Thrift
Savings (401(k)) Plan, Retirement
Plan, and Retiree Life Insurance
beneficiaries at any time through
the benefit resources shown
on the left. (If you are married,
your spouse is the beneficiary of
your Thrift Savings (401(k)) Plan,
unless he or she signs a waiver.)
Generally, it’s a good idea to
review your beneficiaries at least
once a year and anytime you
experience a life event that could
impact your benefits — including
marriage, divorce, birth or
adoption of a child, or death.
CEB Employees Only
For
Contact
The Consolidated Edison
Thrift Savings Plan SPD
From the office:
Outlook > Public Folders >
Competitive Shared Services >
Human Resources > 401(k) Thrift
Savings Plan
Other SPDs and general benefits
questions
Senior Human Resources Specialist or
Director of Human Resources
This communication about Total Rewards constitutes a summary of material modifications to the Summary Plan Descriptions (SPDs)
for the Plans. For more details, see the Consolidated Edison Retirement Plan’s summary plan description (“SPD”), the Consolidated
Edison Thrift Savings Plan’s SPD, the Consolidated Edison Retiree Health Program’s SPD and the Options SPD, which are posted
on the company’s intranet. Go to http://ceintranet/HR/EmployeeBenefits/Pages/planDescriptions.aspx and then click on “Plan
Descriptions” to find the SPDs.
Your Total Rewards as they now exist and as they will be changed are always governed by the official plan documents and policies.
The company reserves the right to amend, modify, or terminate the plans.
11
Looking Ahead — What to Expect
Look for additional communication in the coming months on the Total Rewards changes.
Brochures on the following topics will include examples and scenarios to help you better
understand the changes and any steps needed to meet enrollment deadlines:
JULY
SEPTEMBER
NOVEMBER *
Wellness
Health
Time Off
MAY
etirement
*CEB
employees
will notparts
receive
November
Time OffProgram
brochure.
ies of brochures on
changes
to different
of a
your
Total Rewards
ailable. Each brochure will include examples and scenarios to help you better
and the changes and any steps needed to meet enrollment deadlines.
IMPORTANT INFORMATION ON YOUR TOTAL REWARDS
questionsPrinted
in onupcoming
communication. Your feedback is helpful.
recycled paper
Benefits Fairs
4 Irving Place
New York, NY 10003
meetings being offered at
tuned for information about
E-mail Box
CECONY CBP
unicate a lot of information in
ilings to your home. Please
mily.
FOCUS ON WELLNESS
Your well-being is important not only to
you and your family, but Con Edison too.
The healthier you are, the lower health-care
Don’t Forget the Wellness
Programs You Already Have
Con Edison offers these programs to
help you stay well:

Onsite programs, including
nutrition counseling, health fairs,
and flu shots

Access to Cigna weightmanagement programs
encouraging you to live a healthy lifestyle with

Gym membership discounts
new wellness incentives you can receive for

Lifestyle programs through Cigna

Disease-management programs
through Cigna
costs are for you and the company, and the
more productive you can be at work. That’s
a win-win for everyone. This is why we’ll be
participating in health-improvement activities.
During the fall open enrollment, you’ll have the opportunity to earn health-care
coverage contribution credits if you choose to complete a health assessment. If
you’re a tobacco user, you can avoid higher paycheck contributions by choosing
to enroll in a tobacco-cessation program. You’ll also be able to earn a health-care
coverage contribution credit if you get a basic medical screening before the end of the
2013 open enrollment period this fall. Participating in these activities is voluntary;
but, if you don’t take action, you’ll pay more in your health-care contribution.
The health assessment is available now and throughout the 2013 open enrollment
and will help you learn more about your health status and health risks. By
encouraging you to gain a better understanding of your health, we hope you’ll take
steps to get or stay healthy — either on your own or by participating in companysponsored health-improvement activities. To access the health assessment, log on to
mycigna.com.
Learn more at:

For CECONY: HR Online,
Benefits & Occupational Health
intranet pages: ceintranet/HR/
Pages/default.aspx

For O&R: HR Online Benefits,
Wellness Tab: oruintranet/hr/
benefits_wellness.htm
This brochure provides information about wellness, the actions you can take to gain a
healthier lifestyle, and how you can reduce your health-care contributions for 2013.
Your Total Rewards
Three Steps to Reduce Your 2013
Contributions
When you complete these three steps, you will earn health-care contribution credits
that reduce your contributions for 2013. You also will avoid higher contributions for
health-care coverage if you’re a tobacco user.
Get started early. If you get
If you miss the September 30 date,
you can still earn credits if you get
your basic medical screening by
October 31, and complete your health
assessment by November 30. Your
2013 contributions and credits will
appear on your benefits enrollment
confirmation statement.
Complete This
Activity…
By This Date…
And Receive This
Credit (or Additional
Charge) Per Paycheck
in 2013
1
Get a basic medical
screening (blood
pressure, cholesterol,
blood sugar, and body
mass index levels)
October 31, 2012
$5 credit ($120 a year)
2
Complete a health
assessment
November 30, 2012
$5 credit ($120 a year)
STEP
your basic medical screening and
complete the health assessment
by September 30, 2012, your healthcare coverage contribution credits
will appear when you sign in to enroll
for your 2013 benefits.
3
Indicate whether or not
you use tobacco, and
if you do use tobacco,
commit to enroll in an
approved tobaccocessation program by
December 31, 2013
No additional paycheck
contribution
November 20, 2012
Note: If you indicate you
are a tobacco user but
don’t commit to enroll
in a tobacco-cessation
program, you’ll pay
$10 more in paycheck
contributions ($240 a year)
Important Notes

If you enroll in an HMO, you will not be eligible for the health-care coverage
contribution credits. However, if you use tobacco and don’t enroll in a tobaccocessation program, you will pay $10 more per paycheck.

If you cover a spouse under your plan, your spouse is not eligible for credits for
a basic medical screening, health assessment, or enrolling in a tobaccocessation program; however, we encourage spouses to complete a health
assessment so they can get a better understanding of their health status.
If you don’t complete steps one, two, and three by the dates shown, you won’t receive
the health-care contribution credits, and you will be charged the additional contribution
for tobacco users starting with your first paycheck after January 1, 2013.
2
Take a Closer Look at the Steps
Here’s a closer look at the steps you can take to learn more about your health and
reduce your 2013 health-care contributions:
Step 1: Receive a Basic Medical Screening
It’s important to “know your numbers” — or the results of your basic medical
screening — so you can get a better understanding of your health. By knowing
more, you can detect a health condition early on. Plus, a basic medical screening will
supplement the health assessment to give you a more complete understanding of
your health status.
The basic medical screening includes:

Blood pressure. High blood pressure can lead to a heart attack or stroke. A
normal blood pressure is about 120/80.

Cholesterol. High cholesterol can form plaque that can clog your arteries and
lead to heart disease. You generally want your total cholesterol to be 200 mg/dL
or lower.

Blood sugar. High blood sugar can increase your risk of developing diabetes. A
normal blood sugar level is between 70 and 120 mg/dL.

Body mass index (BMI). BMI is a screening tool used to determine if a person
is overweight or obese. Obesity can lead to several health conditions, including
hypertension, diabetes, coronary artery disease, and stroke. A healthy BMI is
between 18.5 and 24.9.
When you get a basic medical screening, you get a $5 credit toward your health-care
contribution with each paycheck — that’s a total of $120 a year!
3
Where to Get Your Screening
HOW TO…
There are four ways to get your basic medical screening:
1.
Get your basic medical screening
one of these four ways by
October 31, 2012, and qualify for
the health-care contribution credit
for 2013.
Physical Exam Through Affiliated Physicians. If you’ve already had a
physical exam at Affiliated Physicians this year, you’ve earned your basic
medical screening credit. Getting a physical exam at Affiliated Physicians
between January 1 and October 31, 2012, makes you eligible for the healthcare contribution credit. If you are enrolled in medical option A, B, or C, you may
schedule an exam with Affiliated Physicians by calling 1-212-935-8725 or visiting
affiliatedphysicians.net. Please note that eligibility to receive a free physical
exam through Affiliated Physicians depends on your age:
—— If you are between ages 20 and 29, you are eligible for one exam every
three years.
—— If you are between ages 30 and 39, you are eligible for one exam every
two years.
—— If you are age 40 and older, you are eligible for one exam a year.
See Your Basic Medical
Screening Results in
Your Health Assessment
When you receive a basic medical
screening any of the four ways
shown to the right, the results
will be sent to Cigna and loaded
onto your health assessment on
file with Cigna. This valuable data
can give you a more accurate
assessment of your health
when you complete your health
assessment.
Note: The physical exam through Affiliated Physicians is only available to participants
currently enrolled in medical option A, B, or C.
2. LabCorp. You can go to your local LabCorp facility between September 1
and October 31, 2012, to receive a free screening. Watch for an email in
September with instructions on how you can participate in LabCorp’s voucher
service to receive a free screening. To find a LabCorp facility near you, log on
to labcorp.com and go to “Find a Lab” at the bottom of your screen, or call
1-888-LABCORP (1-888-522-2677).
3. Your Personal Doctor. You can receive a screening from your doctor. Keep in
mind that in-network preventive care is covered in full under your Con Edison
medical plan. If you go out-of-network, your screening is covered at the outof-network benefit level. If you get an annual physical between January 1 and
October 31, 2012, which includes a basic medical screening, you will be eligible
for the health-care contribution credit.
Watch for an email in September that will include a physician fax form for you to
take to your doctor when you receive a basic medical screening. Your doctor will
need to complete and fax the form to Cigna for you to receive your health-care
contribution credit.
4. Cigna Onsite Screening. Screenings will be offered onsite between September 24
and October 24, 2012. (If you get an onsite screening, Cigna will enter the results
into your health assessment within two weeks of receiving your screening.) Watch
for an email in September with dates, times, and locations of the Cigna onsite
screenings, as well as a registration form.
4
Step 2: Complete a Health Assessment
Between now and November 30, 2012, log on to mycigna.com to complete a health
assessment and earn a $5 credit per paycheck — that’s $120 a year!
A health assessment is a tool to give you more insight into your health and health
status. You’ll be able to understand ways to improve your health, and identify what you
may not know about your current health status. Simply answer questions about your
health, and you’ll receive an action plan to help you address any potential health risks.
You will be asked to enter your blood pressure, total cholesterol, and HDL cholesterol
numbers. You can obtain these numbers by getting a basic medical screening. There
are four ways to get your basic medical screening this fall and have the results loaded
into your health assessment (see page 4 for details).
HOW TO…
To complete your health
assessment, log on to
mycigna.com using your user ID
and password and click on the
“Take My Health Assessment”
link on the home page. If you have
not registered on mycigna.com,
follow the instructions to register
when you log on to the site.
Note: You will receive a health-care contribution credit for completing the health
assessment — not for meeting any specific health criteria.
YOUR HEALTH ASSESSMENT IS CONFIDENTIAL
The information you enter into your health assessment is confidential.
Your individual information will not be shared with Con Edison — only
aggregate information will be shared to help us develop future healthimprovement programs and incentives.
5
HOW TO…
For employees covered under
a Cigna health-care program:
Log on to mycigna.com or call
1-866-417-7848 to enroll in a
tobacco-cessation program by
December 31, 2013. You can also
enroll in a tobacco-cessation
program offered by another
provider and still avoid the
additional contribution.
For employees covered
under an HMO: Log on to
nyc.gov/nycquits or call 311 to
enroll in the tobacco-cessation
program by December 31, 2013.
For those who live outside
New York state, contact your local
or state health department, local
hospital, or American Cancer
Society. Also, you can log on to
smokefree.gov to find a tobaccocessation program near you.
Step 3: Enroll in an Approved Tobacco-cessation
Program
During the open enrollment period this fall, you will be asked to indicate whether you
are a tobacco user or not. If you indicate that you are a tobacco user, you’ll have
to pay more for the cost of your medical coverage, unless you agree to enroll in an
approved tobacco-cessation program by December 31, 2013.
If you indicate that you are a tobacco user, or choose not to respond to the question
during open enrollment, and don’t enroll in a tobacco-cessation program, you will be
required to contribute an additional $10 toward your health-care coverage from each
paycheck — that’s $240 a year.
Cigna offers two tobacco-cessation programs:

Telephone. You work with a dedicated wellness coach to help you understand
reasons for and barriers to change. You follow a personalized healthy-living plan
and program materials, and talk by phone for coaching sessions. The program
also includes over-the-counter nicotine replacement therapy (patch or gum) at no
cost.

Online. You get weekly emails directing you to your personalized online
program to read articles, complete exercises, and review tools, trackers, and
downloadable information. The program also includes over-the-counter nicotine
replacement therapy (patch or gum) at no cost.
Note: You can enroll in a tobacco-cessation program other than the Cigna program
and still be able to avoid the additional contributions.
Who Is Considered a Tobacco User?
During the 2013 open enrollment, you will be asked several questions to
determine if you are considered a tobacco user.
If You’re Enrolled in an HMO
If you’re enrolled in an HMO and you use tobacco, you will have to pay $10
more per paycheck for your health-care coverage unless you enroll in a
tobacco-cessation program.
You can access other providers, including the New York City or New York state
smoking-cessation programs. The programs also include over-the-counter
nicotine replacement therapy (patch) at no cost.
What If You Don’t Use Tobacco?
If you are not a tobacco user, you must indicate so during open enrollment
this fall to avoid paying more for your health-care coverage in 2013.
6
What’s Next
This is the third in a series of brochures that outline the changes to the different
pieces of the Total Rewards Program. Here’s a look at what you can expect over
the coming months:
LY
ness
SEPTEMBER
NOVEMBER
Health
Time Off
different parts of your Total Rewards Program
de examples and scenarios to help you better
needed to meet enrollment deadlines.
Questions?
If you have any questions about the new wellness incentives and health-improvement
activities, send an email to [email protected]. Questions will be
E-mail Boxanswered in future communications and posted in a Frequently Asked Questions
Do you havesection
a question
not Online.
answered in the
on HR
Benefits Fairs
7
IMPORTANT INFORMATION ABOUT YOUR TOTAL REWARDS
4 Irving Place
New York, NY 10003
FOCUS ON HEALTH
2013 Health Highlights
for Management Employees
Mark Your Calendar
This year, we’ve been telling you about changes and enhancements we’re making to
your Total Rewards — your compensation, retirement, wellness, and other valuable
benefits. Our investment in these rewards — including the introduction of new
health-care benefits and resources for 2013 — is an investment in you. We want to
be sure we are offering comprehensive benefits, resources, and programs that
support you and your family while also responsibly managing our costs.
This year, you must enroll yourself
and your eligible dependents if you
want 2013 health-care coverage!
In November, you will have the chance to elect your health-care benefits for 2013. This
year is different — for example, you will have new medical options that give you more
control over the money you spend, and additional dental benefits. This year, you must
also take action to enroll yourself and your eligible dependents if you want medical,
dental, vision, flexible spending account(s), and supplemental long-term disability (LTD)
coverage next year.
If you take no action, you and your eligible dependents will have no coverage
under the health program — none of the elections you made in 2012 will
continue into 2013.
Start Here
Review this brochure to get familiar with the highlights of your 2013 health-care, dental,
and LTD benefit options. Then, in early November, look for your open enrollment guide
to arrive at your home. Inside the guide you’ll find more details about changes to your
health-care and LTD benefits, and step-by-step instructions on how to enroll. The guide
will also include links to new online tools designed to help you elect the coverages that
best suit you and your eligible dependents.
2013 open enrollment is
November 7 – 21, 2012.
What’s Inside
A Snapshot of
What’s New for 2013........................... 2
Medical Benefits.................................. 3
Prescription Drug Coverage............... 5
All About Your Medical
Options: A New Approach.................. 6
Dental Benefits.................................. 12
Long-Term Disability
(LTD) Benefits.................................... 13
Questions?......................................... 14
Your Total Rewards
A Snapshot of What’s New for 2013
(Effective January 1, 2013)
WHAT’S NEW
New medical and
prescription drug
coverage options
DETAILS
Three new medical plan options will replace the current options. Each medical plan option will offer
different cost sharing features, and each will include prescription drug coverage.
(Note: We will continue to offer current health maintenance organization (HMO) options to eligible
CECONY and Orange and Rockland Utilities (O&R) management employees.)
Changes in what you pay
The amount you currently pay from your paycheck for medical, dental, and other benefits will
change. These amounts will be available in the open enrollment materials you will receive in
November. Depending upon which options you choose, your paycheck contributions may increase
or decrease.
Credits toward what
you pay
If you receive a basic medical screening and take a health assessment by October 31, 2012, you
will earn credits toward lowering your health-care payroll contributions. Also, if you’re a tobacco
user, you can avoid higher 2013 paycheck contributions by enrolling in a tobacco-cessation
program. Review the “Focus on Wellness” Total Rewards mailing you received in August for details.
(“Focus on Wellness” is also available on HR Online.)
Dental coverage
changes
You will see plan and coverage changes, including new benefits to address procedures not
currently covered.
(LTD) coverage changes
The company-provided Basic LTD benefit will change to 50% of your annual base salary. You’ll
have the opportunity to buy the Premium LTD Plan, which provides an additional level of LTD
coverage at 60% to 70% of your annual base salary (with a cost-of-living adjustment [COLA]).
You must enroll in the Premium LTD Plan during open enrollment to have this coverage, and you
have a one-time opportunity this year to enroll without needing to prove you meet a certain level
of health, called evidence of insurability.
There’s Flexibility in Choosing Your Benefits
For 2013, your hospital and medical option will automatically include prescription drug coverage. Dental coverage will
be a separate election. That means, for example, you can have medical and prescription drug coverage only or dental
coverage only.
2
Medical Benefits
Your Medical-Plan Options
In 2013, you’ll have three medical plan options administered by Cigna and
several HMO options from which to choose. The three medical options provide
Cigna-administered hospital and medical services and prescription drug coverage
(administered by CVS/Caremark) — the only differences are your payroll contributions
for each plan and the amounts you pay out-of-pocket when you use the plan.
The new medical plan options will give you more control over your money. For example,
you’ll be able to choose between one option (the Open Access Plus [OAP] —
High-Deductible Health Plan with a Health Savings Account) that has smaller payroll
contributions but higher out-of-pocket costs when you receive medical care, and the
Open Access Plus (OAP) — Coinsurance Plan that has higher payroll contributions
and smaller out-of-pocket costs when you receive medical care. The third option is the
Open Access Plus (OAP) — Copay Plan, which has copays for primary and specialist
office visits.
You Can Also Choose
an HMO
Health maintenance organization
(HMO) options will continue to be
available to eligible CECONY and
O&R management employees. To
obtain specific HMO plan information,
contact the HMO directly. Their
contact information will be included in
your open enrollment materials.
See pages 6 – 11 for more information about each of these options, how they work,
and things to consider when deciding which to choose.
2013 Medical Plan Options
Open Access Plus
(OAP) — Copay Plan
Similar to the current CECONY Medical Option A and O&R
Open Access Plus Plan, this option has specific copays for
certain services and coinsurance for others. Your cost when
you use services depends on the type of care you receive
and whether you use in- or out-of-network services.
Open Access
Plus (OAP) —
Coinsurance Plan
After meeting the annual deductible, this option has a flat
10% coinsurance rate for all expenses — the plan pays 90%
after you reach your deductible, and you pay 10% of all
expenses, up to an annual out-of-pocket limit.
Open Access
Plus (OAP) —
High-Deductible
Health Plan with
a Health Savings
Account (HSA)
This option offers:
• The lowest paycheck contributions of the options, but the
highest deductible; and
• A savings account feature that helps you save pre-tax
money for health-care expenses, which you can use now
or anytime in the future. The company also helps fund this
account. Unlike the health-care flexible spending account,
your unused dollars at the end of the year carry over to the
next plan year.
(Note: Prescription drug coverage is included with all three options)
3
How Much Your Coverage Will Cost Next Year
Helpful Terms to Know
Copay: A flat fee you pay at the
time you visit an in-network doctor
or buy a prescription at an innetwork pharmacy.
Coinsurance: The percentage of
covered expenses you (or the plan)
pays for covered health services
(for example, under the OAP —
Coinsurance Plan, Cigna pays
90% for a hospital admission and
your coinsurance amount is 10%).
Deductible: The annual dollar
amount you or your family must
pay out of your pocket for covered
health services before the plan
begins to pay.
Out-of-Pocket Limit: The most
you have to pay providers in any
calendar year toward the cost of
care, including your deductible
and coinsurance, but not including
copays or paycheck contributions.
Once you reach this limit, the
plan pays 100% of maximum
reimbursable charges for the rest
of the calendar year.
Preventive Care: Tests and
screenings shown by clinical
evidence to be safe and effective
in either the early detection or
prevention of disease. All of
our medical-plan options cover
in-network preventive care at
100%. Preventive care for you
and your family includes routine
physical exams and blood
tests from your doctor, and
wellness screenings that are
recommended for your age and
gender. This includes routine
preventive care for children, such
as immunizations; and routine
preventive care for adults, such
as mammograms, colonoscopies,
and prostate exams.
The payroll contribution for each option will become available on the HR Payroll intranet
site on November 7, 2012. Your payroll contribution for 2013 depends on which
options you choose and if you participate in the wellness activities described below.
Choosing a Medical Option? Make a Healthy Decision
Don’t forget that new wellness benefits can earn you credits toward your
health-care payroll contributions! You recently received the “Focus on
Wellness” brochure outlining these changes (the brochure is also available
on the intranet at HR Online):
You will earn a credit toward your health-care payroll contribution
if you receive a basic medical screening and complete a health
assessment by October 31, 2012 at www.mycigna.com; and
If you identify yourself as a tobacco user, you can reduce your payroll
contribution if you enroll in a tobacco-cessation program (if you’re not a
tobacco user, you’ll need to indicate that during the enrollment process
to avoid an increase in your payroll contribution).
Participating in these activities is voluntary. If you don’t take action, however,
you’ll pay more per paycheck for your health care. Cigna representatives will
be on-site in the fall to provide medical screening services and help you learn
more about these and other wellness activities available to you. For a list of
onsite screening service dates, see the “Wellness — Health Assessment and
Medical Screenings” Postmaster sent on September 18, 2012.
Whom You Can Cover
The medical plans offer three coverage categories.

Employee Only

Employee + 1

Family
Your covered dependents must meet eligibility requirements. They include:

Your lawful spouse under New York State law; or

Your naturally born or legally adopted child, your stepchild living in your household,
or a child for whom you provide sole support and are the court-appointed
guardian, up to the end of the month in which he or she turns age 26.
What’s Not Changing?
Your medical plan network is the same, so you can continue to see the
same doctors;
You continue to have access to both in- and out-of-network coverage
under all three options;
Preventive care visits at in-network providers remain covered at 100%;
Out-of-pocket limits still apply to protect how much you spend during
the year;
Prescription drug coverage will still be provided through CVS/Caremark
(unless you enroll in an HMO).
4
Prescription Drug Coverage
Under all of the Cigna medical plan options, you’ll automatically have prescription drug coverage through CVS/Caremark. The
prescription drug plan copay and coinsurance features are different based on which medical-plan option you choose. You will
not make a separate prescription drug coverage election during open enrollment, so it’s important to consider your
prescription drug needs when you choose your medical plan.
What You Will Pay to Fill a Prescription Under Each Option
CVS/CAREMARK —
COINSURANCE PLAN
CVS/CAREMARK —
HIGH-DEDUCTIBLE
HEALTH PLAN*
$75 per person
No deductible
Applied toward your medical deductible
($1,250 if you cover yourself; or $2,500
if you cover yourself plus one or more
eligible dependents)
Generic
$15
You pay 10% of drug cost (but not less
than $5 per prescription or more than
$15 per prescription)
Brand
$40
CVS/CAREMARK —
COPAY PLAN
Retail (up to a 34-day supply)
Deductible
Copay/Coinsurance
You pay full cost until you reach your
medical deductible, then you pay 20%
(subject to out-of-pocket limit)
Mail Order (up to a 90-day supply)
Deductible
No deductible
No deductible
Applied toward your medical deductible
Generic
$15
Brand
$40
Copay/Coinsurance
You pay full cost until you reach your
medical deductible, then you pay 20%
(subject to out-of-pocket limit)
Here’s an example of how the prescription drug coinsurance works under the CVS/Caremark — Coinsurance Plan:
If you buy a drug:
The actual cost of
the drug:
Coinsurance amount:
What you pay for up to a
34-day supply at an
in-network retail pharmacy:
What you pay for up to a
90-day supply through mail
order:
Generic Drug A
$25
$2.50 (10% Coinsurance) $5 (the minimum copay)
$10 (the minimum copay)
Generic Drug B
$150
$15 (10% Coinsurance)
$15
$15
Brand-Name Drug C
$400
$120 (30% Coinsurance)
$50 (the maximum copay)
$100 (the maximum copay)
*See page 10 for a description of how prescription drug coverage works under the CVS/Caremark — High-Deductible Health Plan.
A Prescription for Savings — Ask for Generics
Next time your doctor prescribes a medication, ask if a generic equivalent is available. If you choose to go with a brand-name drug when
a generic equivalent is available, you may pay more for your medication than you need to. During open enrollment, CVS/Caremark will
have an online cost estimating tool available (look for details in the open enrollment guide).
5
All About Your Medical Options:
A New Approach
Cigna will be administering our three new medical plan options:
OAP — Copay Plan
OAP — Coinsurance Plan
OAP — High-Deductible Health Plan with a Health Savings Account (HSA)
All three options are Open Access Plus (OAP) plans, meaning they offer comprehensive medical coverage,
including coverage for medically necessary expenses such as doctor’s office visits, emergency care,
X-rays, and prescription drugs. You can receive coverage when you use out-of-network providers, but you
will pay more than if you use in-network providers. The network of Cigna providers is the same under all
three Cigna medical plan options.
Also, to help you pay for your out-of-pocket medical expenses, you can contribute on a pre-tax basis
from your paycheck to a tax-saving HSA when you enroll in the OAP — High-Deductible Health Plan.
The company will also deposit $750 ($31.25 per paycheck if you cover yourself) or $1,500 ($62.50 per
paycheck if you cover yourself plus one or more eligible dependents) pre-tax in 2013 with this option!
Which Option Is Right for Me?
There are many things to consider. You’ll learn more details and have access to helpful tools during open
enrollment. In general, here is how the options compare:
Option
It Might Be Right If You …
OAP — Copay Plan
Don’t mind paying the highest payroll contributions in exchange for a
plan most similar to the premium plan that is offered today
OAP — Coinsurance
Plan
Want lower payroll contributions, but prefer a more traditional medical
plan design than the OAP — High-Deductible Health Plan with an HSA
OAP — High-Deductible
Health Plan with an HSA
Want to take a more active role in managing your health-care expenses
Like the tax-advantage and savings features of the HSA (note that only
tax-eligible covered dependents can have expenses reimbursed using
HSA funds — see page 9)
Want to pay the least amount in paycheck contributions (among the
options) and are financially able to pay the higher out-of-pocket costs
when you need care
Remember all three medical options cover in-network preventive care at 100% (no deductible applies), and
all three options cover the same health-care treatments, services, and prescription drugs.
Also, this year you must enroll yourself and your eligible dependents if you want 2013 health-care
coverage. Otherwise, you will have no health coverage in 2013.
6
What You Will Pay for Medical Services and Prescription
Drugs Under Each Medical Option
OAP — Copay Plan
OAP — Coinsurance Plan
OAP — High-Deductible
Health Plan
Annual Medical Deductible
(Employee/EE+1 or Family)*
$300/$900
$500/$1,500
$1,250/$2,500
Coinsurance (inpatient)
After deductible, plan pays 100%
After deductible, you pay 10%
You pay 20%
Coinsurance (all other)
You pay 10%
You pay 10%
You pay 20%
$2,000**/$6,000**
$3,000***/$6,000***
In-Network
Annual Out-of-Pocket Limit
$1,000**/$3,000**
(Employee/EE+1 or Family)
Office Visit
Exam
• Primary Care: You pay $21 copay
• Specialist: You pay $31 copay
Physician Services
(injections, surgical
procedures, lab work)
Emergency Room
You pay $100 copay for each
visit; if admitted, plan pays same
as inpatient hospital care (100%
after deductible)
Preventive
Plan pays 100%
Plan pays 100%
Plan pays 100%
Annual Deductible
(Employee/EE+1 or Family)*
$650/$1,950
$800/$2,400
$2,500/$5,000
Coinsurance
You pay 30%
Out-of-Network
You pay 30%
You pay 40%
Annual Out-of-Pocket Limit
$1,700/$5,100**
(Employee/EE+1 or Family)
$5,000/$15,000**
$6,000***/$12,000***
Inpatient
Office Visit
(Exam; Physician Services
[injections, surgical
procedures, lab work])
Preventive
Other
Prescription Drug
Coverage
Pay copay or coinsurance amount (see page 5)
Pay full cost of prescriptions
until you reach the health
plan deductible (combined
with medical expenses), then
subject to coinsurance and
out-of-pocket limit
Company HSA Funding
None
None
$750/$1,500
Health-Care Flexible
Spending Account Savings
Maximum
$2,500
$2,500
Doesn’t apply
* The medical plan deductible carry-over provision will be eliminated for 2013.
** The annual out-of-pocket limit for the OAP — Copay and OAP — Coinsurance Plans includes the annual deductible and coinsurance, but does
not include copays for office or hospital visits or prescription drug costs.
*** The annual out-of-pocket limit for the OAP — High-Deductible Health Plan includes the annual deductible, and also includes coinsurance for
office or hospital visits and prescription drug costs.
7
The OAP — High-Deductible Health Plan With
Health Savings Account (HSA): How it Works
When you enroll in the OAP — HighDeductible Health Plan and open an HSA
during open enrollment, you are actually
opening a bank account with JPMorgan
Chase that you own and control. The HSA
allows you to set aside money on a pretax basis to pay for your eligible healthcare expenses at any time.
“A $1,250/$2,500 Deductible? No Way!”
Think again. The OAP — High-Deductible Health Plan
with an HSA option might be worth a second look:
If you expect to have minimal health-care expenses
next year, aside from recommended preventive care,
such as physicals, you could see big cost savings;
The balance of the account rolls over from
You’ll pay less from your paycheck each month — if
year to year, even if you change plans or
you don’t mind spending more when you get care; and
leave the company. You can even take the
The company will help fund your HSA.
funds in your account and invest them in
the future. It’s your account to keep. After
age 65, you can use the funds for any
reason, not just health-care expenses, with no tax penalty.
When you have a medical expense during the year, you have a choice: pay the expense out of your own
pocket (to keep the money in your HSA and let it continue to grow tax-free), or use your HSA to pay for
some or all of your eligible expenses.
How Much Your HSA Can Add Up To in 2013
If You Cover Yourself
If You Cover Yourself Plus
One or More Eligible Dependents
What the company will
contribute to your HSA in 2013
$750
$1,500
How much you can contribute
pre-tax to your HSA in 2013
$2,500
$4,950
Your total maximum
2013 HSA amount
$3,250
$6,450
Plus…If you’re age 55 or older, you can contribute an additional catch-up contribution of up to $1,000 per year.
What’s an Eligible Expense Under the HSA
The Internal Revenue Code (IRC) determines the expenses for which HSAs can be used. Only tax-eligible
covered dependents can have expenses reimbursed using HSA funds.
The same expenses eligible under a health-care flexible spending account are eligible under the HSA,
including medical-plan deductibles, coinsurance, and other medical expenses not covered or only partially
covered by your plan, such as hearing aids, eyeglasses, X-rays, braces, and dental fillings.
You can see a complete list of eligible expenses by visiting the Internal Revenue Service (IRS) website at
www.irs.gov and searching for Publication 502, Medical and Dental Expenses.
8
Special Eligibility Rules Apply
You can contribute to an HSA if you:
Are not covered by another type of health plan, including your spouse’s plan (including being covered
under his or her health-care flexible spending account);
Are not enrolled in Medicare, TRICARE, or TRICARE for Life military benefits program;
Have not received Veteran’s Administration benefits within the past three months; and
Cannot be claimed as a dependent on someone else’s tax return.
Additionally, only tax-eligible covered dependents can have expenses reimbursed using HSA funds. That
means they must be under age 26.
What’s the Catch?
The government requires all health plans offering an HSA to be “high-deductible” options. This means the
deductible is higher than under the OAP — Copay Plan and OAP — Coinsurance Plan options — $1,250 if
you cover yourself and $2,500 if you cover yourself plus one or more eligible dependents. You’ll pay the full
cost for services out-of-pocket — including doctor’s office visits and prescription drugs — until you reach
your deductible. Then, the plan’s regular coinsurance requirement kicks in until you reach the out-of-pocket
maximum amount.
A Triple Tax Advantage
The HSA helps you lower your taxes on:
1.The money you save. Your voluntary contributions are not taxable.
2.The money you spend. What you withdraw from the account — today, tomorrow, or in the
future — is not subject to taxes as long as you use it to pay for eligible health-care expenses,
up to age 65. After age 65, you can use the funds for any reason, not just health-care expenses,
with no tax penalty.
3.The investment return on your savings. Once you reach a $2,000 minimum balance, your account
begins to earn interest. Any interest earnings on your HSA balance over the years are tax-free.
9
How You Pay When You See a Doctor or Need a Prescription with the
OAP — High-Deductible Health Plan
1. Annual Deductible
2. Coinsurance
3. HSA
4. Out-of-Pocket Limit
When you see a doctor,
you’ll be billed for the full
cost for your visit until
you reach your deductible
(does not include innetwork preventive care,
which is 100% covered).
You can use funds in your
HSA at any time to help
pay for your expenses.
Once you reach
your annual
deductible, you’ll
pay a percentage
(coinsurance amount)
of the cost of the visit.
You can choose to contribute
directly to your HSA through
pre-tax payroll deductions,
up to annual limits. Plus, the
company will automatically
deposit $31.25 or $62.50
(depending on who you cover),
every pay period throughout
the year into your account. You
can use your account to pay
for medical expenses whenever
you choose.
Once you reach the
annual out-of-pocket
limit, the plan pays 100%
of the cost of the rest of
maximum reimbursable
charges for the rest of the
calendar year.
Prescription Drugs
You’ll pay the full cost of your prescription drugs until you reach your annual deductible, and then you’ll pay a
coinsurance amount until you reach the annual out-of-pocket limit. Prescription drug expenses you pay count
toward your annual deductible and out-of-pocket limit. (Only the OAP — High-Deductible Health Plan includes
prescription drug out-of-pocket costs in the medical annual out-of-pocket limit — which is added financial
protection for you.)
If You Cover Dependent(s), Understand How the Deductibles and
Out-of-Pocket Limits Work
 Under the OAP — High-Deductible Health Plan with an HSA
Under the OAP — High-Deductible Health Plan with an HSA, all family expenses count toward the
deductible ($2,500 in-network) and out-of-pocket limit ($6,000 in-network). This means the plan will
begin to share in the cost of care once the $2,500 deductible is met (the family deductible will be
satisfied even if the entire amount is incurred by one member of the family). The out-of-pocket limit
also works this way.
 Under the OAP — Copay and OAP — Coinsurance Plans
Under the OAP — Copay and OAP — Coinsurance Plans, if one family member reaches the plan’s
individual deductible (for example, $300 under the OAP — Copay Plan), the plan will start paying
its share of the coinsurance for that person only. However, the next person in the family will
also need to meet the individual deductible before the plan starts to share in his or her cost of
benefits. If any combination of family members reaches the family deductible, then all family
members have met the deductible and the plan will begin to share in the cost for all covered
family members. This also applies to the out-of-pocket limit.
10
The Health Savings Account (HSA) vs. the Health-Care Flexible Spending
Account (Health-Care Flex)
If you enroll in the OAP — Copay or OAP — Coinsurance Plan options, you are eligible to contribute to the
health-care Flex. You cannot have both the HSA and health-care Flex at the same time because they both
pay for eligible health-care expenses on a pre-tax basis. If you enroll in the OAP — High-Deductible Health
Plan with an HSA, you are not eligible to participate in the health-care Flex. The same applies to your
covered spouse, who the IRS says cannot enroll in a health-care Flex with his or her employer if you are
enrolled in the HSA.
While both the health-care Flex and HSA offer tax-effective ways to save and pay for eligible medical
expenses, the main difference is that you keep the money in your HSA — there’s no “use it or lose it”
rule with the HSA. Unlike the health-care Flex, if you don’t use your HSA savings in one year, it rolls over
to future years — the money is yours to use on eligible medical expenses until you are age 65, and on
anything you want when you are age 65 or older.
Here are a few ways to compare the similarities and differences between the HSA and health-care Flex:
Health-Care
Flexible Spending Account
Health Savings Account
You get money from the company
Yes — $750 or $1,500, depending on No
whom you cover
Your savings will stay in your
account if you don’t use it
Yes — you can roll over your money
and the company’s contribution
every year
No — you must “use it or lose it”
every year
You save on taxes
Yes — the money you set aside from
your paycheck and that you receive
from the company is tax-free (up
to $3,250 if you cover yourself or
$6,450 if you cover yourself plus one
or your family)
Yes — the money you set aside
from your paycheck (up to $2,500) in
this account is tax-free
Your account can earn interest
Yes — once you reach a $2,000
minimum balance (your HSA is a
bank account with JPMorgan Chase
through Cigna)
No
You can keep the account open if
you leave the company or retire
Yes — the account is yours forever
No — you must “use or lose” your
funds (up to $2,500) by the end of
the current year
Use Your Health-Care Flex Now!
Remember, you’ll need to use all the money in your health-care Flex (if you’re currently enrolled)
by December 31, 2012. You’ll still have until June 30, 2013 to submit your claims from 2012 for
reimbursement, if necessary.
Look for more details about how the OAP — High-Deductible Health Plan with an HSA works in the
open enrollment guide you’ll receive in the mail in early November.
11
Dental Benefits
Plan Carefully
If you decline to enroll in dental
coverage this year, but decide
to enroll during the next open
enrollment period for 2014, you
will be eligible to enroll only in
Option B – Standard Plan at that
time. Think carefully about your
future dental coverage needs.
We’ve heard you ask for improved coverage for common dental procedures. Now
it’s here! Dental coverage will continue to be administered by MetLife, but you’ll see a
number of changes in 2013:

Two options to choose from: To help align our benefits across our lines of
business, we’ll offer two comprehensive dental plan options (see below).

Coverage enhancements and other changes: You will see coverage
improvements for common procedures when you visit in-network dentists, as
well as coinsurance changes and some frequency limits for certain services. For
example, you’ll see:
—— Addition of coverage for dental sealants to age 19, with a 1-in-60-month
replacement frequency
—— New coverage for dental implants at in-network providers
Use In-Network Dentists
When you visit an in-network
dentist, you will pay less for the cost
of your services (as shown in the
chart). Plus, many of our coverage
enhancements are available only if
you visit in-network dentists.
You can check to see if your dentist
is in the network by logging on to
mybenefits.metlife.com.
—— Reduced frequency limit for full-mouth X-rays from 1 in 36 months to
1 in 60 months
Note that you will be able to elect your dental coverage separately from your medical/
prescription drug coverage. You can have medical/prescription drug coverage with or
without dental coverage. However, the same dependents must be covered under all of
the options you choose.
What You Will Pay for Dental
Services Under Each Option
Option A – Premium Plan
Annual
Deductible
Option B – Standard Plan
In-Network
Out-ofNetwork
In-Network
Out-ofNetwork
$100 per
person
$250 per
person
$125 per
person
$250 per
person
No deductible for preventive and No deductible for preventive and
diagnostic services
diagnostic services
Coinsurance
Preventive
and
Diagnostic
Basic
Restorative
Major
Restorative
Plan pays 100%
Plan pays
100%
Plan pays 80%
Plan pays 50%
Plan pays 60% Plan pays 60%
Plan pays 50%
Orthodontics
Plan pays 50%
Limits
Annual NonOrthodontic
Lifetime
Orthodontic
12
$2,500 per
person
$2,000 per
person
$1,000 per person
$2,000 per person
Long-Term Disability (LTD) Benefits
If you are out of work for more than six months due to an illness or injury, you may
become eligible for long-term disability (LTD) benefits starting after week 26 of your
absence. LTD offers you peace of mind knowing that if you are injured or become ill
for a long period of time and can’t work, you will still have a portion of your income to
cover expenses.
A Basic LTD benefit will be offered to all employees and is 100% paid by the company.
Starting in 2013, the benefit will automatically be 50% of your annual base salary.
You’ll also have the opportunity to purchase Premium LTD Plan coverage to supplement
your pay. The plan will pay 60% of your annual base salary if you get individual Social
Security benefits, or 70% of your annual base salary if you receive Social Security
benefits for your family while you are disabled, with a cost-of-living adjustment (COLA).
Consider Your Needs
To decide whether you should
purchase additional coverage, ask
yourself: “How much money would
my family need in the event I am
injured and unable to work?” Look at
your household bills and statements
to understand what you spend on
things like your rent or mortgage,
utilities, health insurance, children’s
tuition, and other costs. If you don’t
think 50% of your pay will cover
these costs, take advantage of the
option to increase your coverage.
You must enroll in the Premium LTD Plan during open enrollment to have this additional
coverage. You also have a one-time opportunity this year to enroll without needing to
prove you meet a certain level of health, called evidence of insurability. If you don’t enroll
now and decide to enroll in the Premium LTD Plan during a future open enrollment
period, you will be required to provide evidence of insurability at that time.
13
Questions?
If you have any questions about the new health benefits, visit HR Online > Benefits,
or call the:

Con Edison HR Service Center at 1-800-582-5056, Monday through Friday,
from 9 a.m. to 4 p.m., Eastern time.

O&R Employee Benefits Department at 1-845-577-2783, Monday through Friday,
from 9 a.m. to 4 p.m., Eastern time.
What’s Next
Keep this brochure to refer to during the open enrollment period.
This is the fourth in a series of brochures that outline the changes to the different
pieces of the Total Rewards Program. Stay tuned for the last brochure in our series —
all about your time off benefits — coming in November.
Also, don’t forget to look for your open enrollment guide in the mail at your home in
early November!
REMEMBER . . .
This year, you must enroll if you want 2013 health-care
coverage. If you take no action, you and your eligible
dependents will not be covered!
14
This communication about Total Rewards is just a summary. Your Total Rewards as they now exist and as they will be changed are
always governed by the official plan documents and policies. The company reserves the right to amend, modify, or terminate the plans.
15
4 Irving Place
New York, NY 10003
FOCUS ON TIME OFF
Everybody needs some time away from work—whether it’s to recharge or to treat a
health condition, sickness, or injury. Con Edison provides valuable holiday, vacation,
sick time, disability, and leave-of-absence benefits.
What’s Inside
Effective January 1, 2013, we’re making changes to our time-off benefits for
management employees to keep them in line with market practices and to create
consistency across our CECONY and O&R businesses.
Sick Time and Disability...................... 4
This brochure provides information about the changes to your time-off benefits.
Questions?........................................... 9
Floating Holidays................................. 3
Long-Term Disability........................... 9
Vacation
While the changes we’re making to the vacation policy will create a consistent vacation
schedule at CECONY and O&R, they will also allow many employees to earn more
vacation days sooner in their career.
Vacation Accrual Schedule
Here’s a look at the new vacation schedule, beginning January 1, 2013.
Years of Service
2013 Annual Vacation Days
1–2
10
3
13
4
14
5 – 10
15
11
16
12
17
13
18
14
19
15 – 19
20
20+
25
Effective January 1, 2013, the
concept of vested and unvested
vacation days will be eliminated.
Current vacation days with an
“unvested” designation will be
included in your 2013 allowance.
Note:
• You will not lose any vacation days if you have already earned more under the current
schedule than the new schedule allows.
• If you have more vacation days under the current schedule, you will not earn additional
vacation until you reach the years of service in the new schedule that are associated with
more vacation days than you already have.
Your Total Rewards
A Look at How 2013 Vacation Days Will
Be Calculated
Here’s a look at how your 2013 vacation days will be calculated based on your years of
service in 2013.
Consistent Method for
Calculating Vacation Days
Beginning January 1, 2013, CECONY
and O&R will have a consistent
method for calculating vacation days
based on how much service you will
have in the next calendar year. When
calculating your service for 2013,
we will look at how many completed
years of service you will have on
your service anniversary for 2013.
For example, if you have 15 years
of service on May 31, 2013, your
service for determining your vacation
allowance will be 15 years.
Year of Hire
Years of Service in 2013
Used for Vacation Days
2013 Annual
Vacation Days
2011 – 2012
1–2
10
2010
3
13
2009
4
14
2003 – 2008
5 – 10
15
2002
11
16
2001
12
17
2000
13
18
1999
14
19
1994 – 1998
15 – 19
20
1993 or before
20+
25
Carry Over Your Unused Vacation Days
If you don’t use all of your vacation days by the end of each calendar year, you can carry
over up to five vacation days to the next calendar year. This new policy will start with
the 2013 calendar year vacation days being carried over to 2014—the current carryover
policy will cover carryover from 2012 to 2013. Under the new carryover policy, you must
use the five vacation days you carry over before May 1 of the next year. You must receive
approval from your department to carry over vacation days, according to company
policy.
Note: If you’re a CECONY employee, the number of vacation days that you can carry
over will be reduced from 10 to five days; however, you will have more time to use the
carryover vacation days before you forfeit them. (You currently have until March 31 of
the next year; in 2013, you will have until April 30, 2014, to use the five days.)
O&R employees will continue to be able to carry over up to five vacation days.
2
Floating Holidays
You will continue to have 11 paid corporate holidays; however, four of the holidays will
be designated as floating holidays. With floating holidays, you can choose to take the
floating holiday either on the actual corporate holiday or on a different date that you
select—that is, of course, subject to your manager’s approval and operational needs.
Note: O&R’s existing floating holiday will be replaced with the new floating holidays.
Here’s a look at the 11 paid corporate holidays. The four floating holidays are also
highlighted:
New Year’s Day
Martin Luther King Jr. Day
(floating holiday)
Presidents Day
(floating holiday)
Memorial Day
Independence Day
Labor Day
Columbus Day
(floating holiday)
Veterans Day
(floating holiday)
Day after Thanksgiving
Christmas Day
Thanksgiving Day
Floating Holidays and
Rotating-Shift Schedules
Floating holidays are excluded for
rotating-shift schedules, which means
the holiday cannot be taken on a
different date.
Tools to Track Time Off
The tools you can use to help you
manage your time off include:
Payroll System
Excused Time Calendar
Paystub Online
For a list of the 2013 dates for these holidays, go to your company’s HR intranet site.
Note: Any floating holidays not used by the end of the year will be forfeited—they will
not carry over to the next year. New hires are eligible for the floating holidays remaining
in that year and can choose to take a floating holiday some other time during the year,
subject to their manager’s approval and operational needs.
How to Code Floating Holidays in Your Timesheet
The four floating holidays shown above will automatically default to “floating
holiday” in your timesheet on the Payroll System. If you choose to work on a
floating holiday, and you get approval from your manager, you’ll need to change
“floating holiday” to regular time worked. When you use the floating holiday on
another workday, approved by your manager, simply enter “floating holiday”
into your timesheet.
An Example: See How You Can Use a
Floating Holiday
Postmaster reminders for pay
periods with floating holidays
Personal Holiday
In addition to the paid corporate
holidays (including the floating
holidays), you’ll continue to have one
personal holiday that you can take
during the year. You must use your
personal holiday by the end of the
year or it will be forfeited. Like floating
holidays, personal holidays do not
carry over to the next year.
Let’s assume that after getting your manager’s approval, you worked on
Presidents Day. You went into your timesheet on the Payroll System and changed
“floating holiday” for Presidents Day to regular time worked. Now you have a
floating holiday to use anytime during the year that your manager approves.
Since Independence Day falls on a Thursday, you want to make it a long weekend
and take Friday off. After talking to your manager and getting his or her approval,
you use the floating holiday you didn’t use on Presidents Day for the day after
Independence Day. You then can go into your timesheet and replace regular time
worked for July 5 with “floating holiday.”
Keep in mind that if you get approval from your manager to take July 5 as a
floating holiday and instead you are called into work for an emergency, you will
not be able to reschedule the floating holiday. If you are a Band 2 with a PACE
designation or a lower band and are called into work for an emergency on your
floating holiday, you will be compensated at the holiday pay rate.
3
Sick Time and Disability
New Benefits
Administration Process
Beginning 2013, MetLife will manage
the Short-Term Disability and Family
and Medical Leave Act (FMLA)
benefits instead of Occupational
Health for CECONY employees and
Human Resources and Sun Life for
O&R employees. To start the claim
filing process for your Short-Term
Disability or FMLA benefits, contact
MetLife at 1-877-638-8262 or online
at www.metlife.com/mybenefits
as soon as possible and provide the
requested documentation. Note: If
you’re receiving sick pay or FMLA
benefits when the administration
changes from CECONY and O&R to
MetLife, your benefits will continue to
be managed by Occupational Health
for CECONY employees or Human
Resources and Sun Life for O&R
employees until you are approved
for duty.
How to Apply for ShortTerm Disability Benefits
Here’s the timing of what you need to
do to apply for Short-Term Disability
benefits:
By no later than your sixth
consecutive workday out sick,
you must report your claim to
MetLife to have your Short-Term
Disability benefits advanced to
you while your claim is being
processed.
You have up to 15 calendar
days from the time MetLife
requests information or forms
to evaluate your claim to
provide that information. You will
continue to be paid pending review
of the information you provide. If
the information is not provided,
your claim will be closed.
Note: If your claim is denied or
closed, any Short-Term Disability
benefits you receive will be treated as
an overpayment and will need to be
paid back to the company.
4
CECONY and O&R will continue to provide time-off benefits to help protect you when
you’re sick or injured and cannot work.
We’re changing the Sick Time benefits. In 2013, we will have sick days and Short-Term
Disability benefits so they’re in line with the benefits offered by our peer companies.
Specifically, the new Sick Time Policy/Short-Term Disability Plan will provide varying
percentages of your base salary, depending upon the amount of time you are
approved to be out of work due to a sickness or injury.
The Sick Time and Short-Term Disability benefits will no longer be related to your
length of service with the company, and will provide benefits for up to 26 weeks for
a disability.
If you are on the active management payroll of CECONY or O&R on December 31, 2012,
your participation in the Sick Time Policy and Short-Term Disability Plan is automatic.
Below is a summary of how the Sick Time Policy and Short-Term Disability Plan
will work.
How Sick Days Work
Effective January 1, 2013, you will be eligible for 10 sick days, which will be tracked on
a 12-month rolling period and paid at 100 percent of base salary. The 12-month rolling
period begins on your first sick day. A rolling period means that each sick day taken
will be refreshed after one year has elapsed. For example, if you use a sick day on
March 1, 2013, that sick day will be replaced on March 1, 2014.
You can use sick days to cover five consecutive workdays you are absent from
work; sick days cannot be used beyond five consecutive workdays. However, if
you are out sick for more than five consecutive workdays, you may qualify for
Short-Term Disability benefits. Note: You have the option to use your vacation days
or personal holiday to get paid for days not covered by sick days or Short-Term
Disability benefits.
An Example
Let’s assume that you have 10 sick days available and are out sick for seven
consecutive workdays. Five of those days would be covered by sick days. After calling
MetLife, you learn that you do not qualify for Short-Term Disability benefits, so days six
and seven are not covered by Short-Term Disability. You can use vacation days and/or
your unused personal holiday to get paid for those two days that are not covered.
How Short-Term Disability Works
After five consecutive workdays out sick, your continued absence may be eligible for
Short-Term Disability benefits, which provide income (base salary) replacement for
sickness and injuries that last longer than five consecutive workdays, up to 25 weeks.
Beginning 2013, MetLife will manage Short-Term Disability benefits, which means you’ll
need to provide documentation and be approved by MetLife to qualify for Short-Term
Disability benefits.
Here’s a look at the amount of income replaced under the Short-Term Disability Plan:
During these weeks of disability…
You’ll receive this percentage
of base salary…
1 (The “Elimination Period”)
No Short-Term Disability benefits;
however, you can use sick days, vacation
days, or your personal holiday, if available
2 to 6 (25 workdays)
100%
7 to 11 (next 25 workdays)
90%
12 to 26 (next 75 workdays)
80%
27+
If you are unable to return to work
due to your disability, you can file for
benefits under the Long-Term Disability
Plan. If eligible, your disability income
will be based on the provisions of the
Long-Term Disability Plan (see page 9
for details).
Moving From Short-Term
Disability to Long-Term
Disability Benefits?
If you are disabled for 26 weeks and
are eligible to receive Long-Term
Disability benefits, beginning with
your 27th week of disability, you
will continue to be covered under
the active health plans for up to
12 months. You will be required to
make a contribution toward your
health-care benefits at the same rate
as active employees.
Note: You may be eligible for a “new” Short-Term Disability benefit as long as you have
returned to work for at least 45 calendar days before you have a disability absence
for the same or related disability, or you have an unrelated condition that qualifies for
Short-Term Disability benefits.
An Example: See How Sick Pay and Short-Term Disability Work Together
Let’s assume you earn $52,000 a year ($1,000 a week) and have the following three separate sick absences during a 12-month
rolling period. Note: All payments you receive under the Sick Pay/Short-Term Disability Plan are subject to payroll tax withholding.
Absence
How Sick Pay and Short-Term Disability Work Together
On February 21-22, 2013,
two-day absence for a
stomach virus
• You use two of your 10 sick days under the Sick Pay Policy and receive 100 percent of
base salary, or $400 for the two days. Your 12-month rolling period under the Sick Pay
period began on February 21, 2013. You have eight remaining sick days for the period
beginning February 23, 2013 and ending February 20, 2014.
Beginning June 8, 2013,
six-week absence for
a compound fracture in
your arm
•W
eek 1 beginning on June 8, 2013, is covered by five of your remaining eight paid sick
days under the Sick Pay Policy. The five days are covered at 100 percent of base salary
and you receive $1,000 under the Sick Pay Policy. You have three remaining sick days
until February 20, 2014.
•W
eeks 2 – 6 have been approved by MetLife for Short-Term Disability benefits and
are covered at 100 percent of base salary. You receive $5,000 for the five weeks under
the Short-Term Disability Plan.
Beginning on November 12,
2013, two-week absence
due to a herniated disk in
your back
• Week 1 you will receive 100 percent sick pay for your remaining three sick days, or
$600 for the week; the next two days can be covered by vacation days or your personal
holiday (if you have them, otherwise the days are unpaid).
• Week 2 qualifies as a new Short-Term Disability occurrence and is covered at 100 percent
of base salary, or $1,000 for the week, under the Short-Term Disability Plan.
Note: On February 21 and 22, 2014, the two sick days you used in February 2013 will be replenished. Then, by June 13, 2014,
the five sick days you used in June 2013 will be replenished. And by November 15, 2014, the three sick days you used in
November 2013 will be replenished, as well.
5
Important Note About
Substituting Vacation Days
for Sick Time
Keep in mind that if your sickness or
injury is not covered by sick days or
Short-Term Disability benefits, you can
use vacation days or your personal
holiday instead of unpaid leave. This
can be important if you:
Have exhausted your 10-sick-day
allowance;
Are not eligible for a sick day
(you cannot use additional sick
days if you were already out for
five consecutive workdays); or
Your Short-Term Disability claim is
denied or closed.
In all cases, if you are going to be
absent due to sickness or injury, you
must call the VRU and your supervisor
or manager each day. And if your
absence goes beyond five days—
even by a day—call MetLife so you
can receive Short-Term Disability
benefits (provided you have medical
evidence satisfactory to MetLife that
you have sought and are receiving
appropriate treatment by a physician).
Six-Month Waiting Period
for New Hires and Rehires
New hires and rehires after
January 1, 2013 have a six-month
waiting period before becoming
eligible for company-paid Sick Time
and Short-Term Disability benefits.
This means they will not be eligible
for company-paid time off for a
sickness or injury during this sixconsecutive-month period. However,
they will be eligible for New York
State disability benefits after four
consecutive weeks of work during
the waiting period.
6
What to Do If You’re Sick
If you are unable to work due to a sickness or injury, you are required to call
the Automated Voice Response Unit (VRU) at 1-800-409-7425 each scheduled
workday you are out sick, unless otherwise instructed by Occupational Health
for CECONY employees or Human Resources for O&R employees. Then, call
your supervisor or manager. Note: Failure to complete these steps may result
in loss of pay for your absence.
For days that are considered by MetLife to be Short-Term Disability, you do
not have to call the VRU. If you believe your sickness or injury may qualify for
FMLA, or will last for more than five consecutive workdays, call MetLife at
1-877-638-8262.
How to Report Sick Time
When you return to work, you’ll need to record the sick or Short-Term Disability time
in your timesheet on the Payroll System. If there is any inconsistent information about
your absence, you’ll receive an email and will have two pay cycles to correct the
information. After two payroll cycles, your pay will be adjusted to reflect the correction.
If You Have a Recurring Sickness or Injury
If you receive sick pay and Short-Term Disability benefits, return to work, and
your sickness or injury recurs in fewer than 45 calendar days (30 workdays) of
your return to work, your benefits will pick up where they left off, if approved by
MetLife. You won’t have a new Elimination Period (five sick days before ShortTerm Disability benefits begin), and you will be at the week of the Short-Term
Disability schedule where you left off. For example, if you returned to work after
your two-week absence for a herniated disk in your back and you are absent
again in fewer than 45 days of returning to work for the same disability, your
Short-Term Disability benefits will pick up at week 3, and you will have 24 weeks
of Short-Term Disability benefits available, if approved. You will not have to use
five sick days before your Short-Term Disability benefits begin again.
Maternity Leave
CECONY and O&R provide eligible employees Paid Maternity Leave that will run
concurrently with Short-Term Disability. If you’re pregnant and have at least six
consecutive months of service, you may be eligible for:

Up to 10 workweeks of pay at 100 percent of base salary for a vaginal delivery; or

Up to 12 workweeks of pay at 100 percent of base salary for a caesarian delivery.
Keep in mind that you must use five sick days to cover the week before Paid Maternity
Leave begins. If you don’t have any sick days, they will be unpaid or you can use
vacation days or your personal holiday for those five days.
If you’re pregnant and begin your period of consecutive absence within the four-week
period before your due date, the time you are absent from work during this period
will be counted toward your maternity leave. Maternity leave begins either during this
period, or on the date of delivery.
What You Need to Do If
Expecting a Baby
As soon as you know you’re
pregnant, you should contact your
Human Resources generalist to
understand what you need to do to
prepare for your Paid Maternity Leave.
If you’re pregnant and absent due to your pregnancy before the four-week period prior
to the due date of your delivery, that absence will not be counted toward your maternity
leave, but will be covered under the Sick Time Policy/Short-Term Disability Plan, if
approved by MetLife, and treated the same as any other sickness or injury.
If it is medically necessary to continue your absence after your Paid Maternity Leave
ends, you may be able to receive Short-Term Disability benefits. Your eligibility for
Short-Term Disability benefits will be treated in a similar way as a recurrence of a disability
after fewer than 45 days of your return to work: You won’t have to use five sick days
before Short-Term Disability benefits begin, and you will be eligible for the remainder of
your 26 weeks of Short-Term Disability benefits related to pregnancy/maternity.
If it’s not medically necessary to continue your absence after your Paid Maternity Leave
ends, you may exhaust your vacation days, then take an unpaid leave of absence. You
can learn more from your Human Resources generalist.
Note: If you’re pregnant or you’ve had your baby and you are receiving Long-Term
Disability (LTD) benefits (see page 9), you will not be eligible for Paid Maternity Leave.
Paid Leave for Workweek Medical Treatment for
Catastrophic Illness
Effective January 1, 2013, a new Paid Leave for Workweek Medical Treatment
(WMT Leave) Policy will be introduced. The new WMT Leave Policy provides additional
paid leave when you are undergoing approved medical treatment for a catastrophic illness
or procedures related to an approved catastrophic illness. The treatment must be certified
by your doctor or other licensed medical professional.
A catastrophic illness is considered an acute or prolonged illness, usually considered to be
life-threatening or with the threat of serious residual disability, that takes you out of work
for a period of time. Some examples of treatments that may qualify for WMT leave include,
but are not limited to:

Cardiac rehabilitation

Chemotherapy

Radiation

Transfusions

Specialized rehabilitation for prosthetic devices
The benefit for a WMT leave approved by Occupational Health is up to 240 hours of
leave at 100 percent of base salary per 12-month rolling period. This time does not count
against your 10 sick days. Note: If your regular scheduled work shift is not an eight-hour
workday, you will be deemed to have an eight-hour workday on the day(s) you use WMT
leave. If your standard workweek is fewer than 40 hours, you will be eligible for WMT leave
on a prorated basis.
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Family Medical Leave
The Family and Medical Leave Act (FMLA) is a federal law that requires many
employers to provide their employees unpaid leave, and gives employees who have
an FMLA-qualified absence the right to return to the same or an equivalent job. To be
eligible for FMLA coverage, you must have been employed with the company for one
year and must have worked a minimum of 1,250 hours during the 12 months before
your leave.
FMLA provides eligible employees up to 12 weeks of unpaid leave during a 12-month
rolling period for the following circumstances:

Your own serious health condition that makes you unable to perform the essential
functions of your job.

Birth and care of your child, within one year of birth.

Placement with you of a child for adoption or foster care, within one year of
placement.

Care of an immediate family member (spouse, child, parent) who has a serious
health condition.

Any qualifying urgent need arising out of the fact that your spouse, child, or parent
is on active duty or has been notified of an impending call or order to active duty in
the U.S. National Guard or Reserves in support of a contingency operation.

You are a military caregiver (you are eligible for up to 26 weeks of unpaid leave).
At CECONY and O&R, FMLA leave is unpaid and runs concurrently with other paid
leaves, such as Sick, Short-Term Disability, or Maternity Leave. Since an FMLA leave may
last up to 12 weeks, a portion of your Sick, Short-Term Disability, or Maternity Leave may
not be paid. For example, if you give birth, your FMLA leave will run concurrently with
your Paid Maternity Leave. So, if you have a vaginal delivery, you would be eligible for up
to 10 weeks of paid leave. Under FMLA, you could take an additional two weeks of leave
for maternity, but it would be an unpaid leave for which you can use vacation days.
Note: Like sick days, FMLA is based on a 12-month rolling period. For example, if you
use eight weeks of FMLA in May and June 2013, those FMLA days will be replaced in
May and June 2014.
Beginning in 2013, all FMLA leave requests will be processed by MetLife. If you have
any questions about FMLA, contact MetLife at 1-877-638-8262.
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As we mentioned earlier, if you have exhausted your Short-Term Disability benefits
and still cannot return to work due to sickness or injury, you may apply for Long-Term
Disability (LTD) benefits starting after week 26 of your absence. CECONY and O&R
automatically cover you with a basic LTD benefit that is fully paid by your employer.
Beginning in 2013, the company-paid LTD benefit will be 50 percent of your base salary.
During this year’s open enrollment, you had the opportunity to increase your coverage
amount by enrolling in the Premium LTD Plan, which provides:

60 percent of your base salary; or

70 percent of your base salary if you receive family Social Security disability
income or you elect to receive, if eligible, a benefit from the Consolidated Edison
Retirement Plan.
AND

Your LTD benefit comes with a cost-of-living adjustment (COLA) (including a
COLA on the non-contributory employer-provided 50 percent benefit).
If you did not enroll in the Premium LTD Plan during Open Enrollment in 2012, you will
be subject to evidence of insurability if you elect the Premium LTD Plan in a future year.
Questions?
If you have any questions about your time-off benefits, you can call:

Con Edison HR Service Center at 1-800-582-5056, Monday through Friday,
from 9 a.m. to 4 p.m. Eastern time.

O&R HR Support at 1-845-577-2429 or O&R Employee Benefits Department (for
LTD questions only) at 1-845-577-2783, Monday through Friday, from 9 a.m. to
4 p.m. Eastern time.
An Example: See
How LTD Works
Let’s assume you earn $60,000 a
year and you are still recovering from
back surgery after 26 weeks of being
out of work. If you didn’t enroll for
coverage under the Premium LTD
Plan, you’ll automatically receive
a basic LTD benefit. That means
beginning week 27 you’ll receive
50 percent of your base salary, or
$2,500 a month before taxes under
the LTD Plan.
If you did enroll for coverage under
the Premium LTD Plan, which
provides 60 percent of your base
salary, you’ll receive $3,000 a month
before taxes.
Learn More About Your
Time-Off Benefits
Beginning in January 2013, you can
learn more about your time-off benefits
on your company’s HR intranet site.
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