highlights

TA K I N G
A
N E W
T R AC K
BENEFITS
HIGHLIGHTS
FOR SCHEDULED EMPLOYEES MOVING TO SALARIED
2013
SCHEDULED
SALARIED
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BENEFITS
Your rewards as a Salaried employee of BNSF Railway include a robust
variety of benefit programs designed to support your success at work and
in life. BNSF’s size and resources allow the company to offer you benefits
that are significantly better than those available to the vast majority of
American workers. And when compared with the Fortune 500 and other
leading companies in the transportation industry, BNSF’s benefits for
Salaried employees stack up quite competitively. At a personal level, for
most Salaried employees the value of benefits amounts to 25 to 40 percent
of annual salary – value you receive in addition to your cash pay.
COMPARATIVE VALUE – MEDICAL COVERAGE
PER-EMPLOYEE MEDICAL SPENDING
$1,411
(11%)
BNSF:
$12,374
Fortune 500 Non-Union
Benchmark: $11,969
$9,537
(77%)
$7,393
(62%)
$1,426
(12%)
$2,366
(20%)
Average out-of-pocket costs
for BNSF employees $2,837 (23%)
$2,210
(18%)
Average out-of-pocket costs
for F500 employees $4,576 (38%)
Company’s average cost per employee
Employee’s average out-of-pocket cost for health care expenses
Employee’s average paycheck deductions for coverage
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2013
SA L A R I E D E M PLOY E E S
BENEFITS
HIGHLIGHTS
Your Salaried benefits are another way the company
compensates you for the job you do – second in value only
to your direct pay.
The design of these comprehensive benefits programs
encourages involvement in understanding your benefits and
using them effectively.
YOU’LL FIND THE SALARIED BENEFITS
PROGRAMS ARE GEARED TOWARD:
•Opportunity to protect and improve health, financial
well-being and quality of life for you and your family.
•Flexibility to choose how benefit resources support your
individual priorities.
•Responsibility for being careful stewards of our shared
benefits investment – the company’s and yours – through
smart, cost-conscious use of health care services.
•Competitive value. BNSF keeps its benefits package
comprehensive and competitive with other leading companies
in the transportation industry, as well as with other employers
in the areas where our employees live and work.
PART-TIME EMPLOYEES:
Part-time employees are eligible for the same
benefits as full-time employees. The part-time
employee’s contribution toward his/her medical and
dental coverage may be greater than the rate for a
full-time employee. Cash compensation will reflect
the part-time status of the employee.
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H E A LT H C A R E & W E L L N E S S
Medical and
prescription drug1
High-deductible health plan
(HDHP) with Health Savings
Account (HSA)
Effective date for Scheduled-to-Salaried promotions – 1st of the month
following 30 days of Salaried service. Exception: If your promotion date is Feb. 1,
your eligibility date is March 1.
•Choice of networks:
»» BlueCross BlueShield (BCBS)
»» Aetna
•Choice of annual deductibles:
»» $1,250 for employee-only coverage/$2,500 for all other coverages, or
»» $2,500 for employee-only coverage/$5,000 for all other coverages.
•Coinsurance: After you meet the deductible, BNSF pays 80%, you pay 20%.
•Out-of-pocket maximum: The share of covered expenses you pay out-ofpocket in a calendar year will not exceed these amounts:
»» $3,250 for employee-only coverage/$6,500 for all other family categories
under the 1250/2500 deductible option, or
»» $4,500 for employee-only coverage/$9,000 for all other family categories
under the 2500/5000 deductible option.
•Preventive care:
»» Annual physical exams, periodic age appropriate screenings, well-child care
and certain wellness products are covered at 100% with no deductible.
»» Specific preventive medications targeting certain risk factors are covered
without having to meet the annual deductible.
»» Women’s health services, including prenatal doctor office visits, lactation
support and counseling, and certain contraceptives.
•Health Savings Account (HSA): BNSF contributes $500 to $2,800/year
(prorated from your first full month of enrollment) depending on your base
annual salary and the coverage you select.
»» HSA is like a 401(k) for health care expenses and you are encouraged to
make additional tax-free contributions. HSA is 100% yours and you take it
with you when you retire or otherwise leave BNSF.
»» If you are eligible for TRICARE or enrolled in Medicare, you receive a Health
Reimbursement Account (HRA) rather than an HSA.
Dental
Choice of comprehensive coverage options through Aetna:
•Dental Preferred Provider Organization (PPO).
•Dental Management Organization (DMO) – not available in all locations.
Vision care
Choice of comprehensive options through EyeMed:
Health Advocate
•This service offers personal, confidential help with understanding benefits,
•H12 option – low copays, frames every calendar year.
•H24 option – slightly increased copays, frames every other calendar year.
navigating the complexities of health care and using health care services effectively.
•Covers you, your spouse, eligible dependents, parents and parents-in-law at
no cost to you.
Health Care Flexible
Spending Account (HCFSA)
Enables you to set aside up to $2,500/year of before-tax contributions from your
paycheck to pay for eligible health care expenses on a tax-advantaged basis. If you
enroll in the BNSF medical coverage with an HSA, the HCFSA becomes “limited
purpose,” meaning you can only use it for eligible dental and vision expenses.
Employee Assistance
Program (EAP)
Counselors provide confidential assessment and referral to community
resources for personal and work-related problems such as stress, marital issues,
financial strains, substance abuse, elder care and parenting concerns, and other
life issues that affect employees and family members. There is no cost to you.
Wellness support
Multiple resources to support you and your family with understanding and
avoiding preventable health problems, managing health conditions, getting
healthy and staying on a healthy track. There is no cost to you.
All amounts are for eligible in-network expenses.
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5
FINANCIAL PROTECTION
Employee basic
life insurance
2 times benefits pay 2 at no cost to you.
Employee optional
life insurance
Options to purchase additional coverage of up to 5 times benefits pay.2
Spouse life insurance
5 options to purchase up to $100,000 of coverage.
Child(ren) life insurance
5 options to purchase up to $25,000 of coverage. All children are covered for
one price.
Employee AD&D
insurance
Options to purchase accidental death and dismemberment (AD&D) coverage
up to 7 times benefits pay. 2
Spouse AD&D insurance
Option to purchase coverage of 50% of your AD&D coverage.
Child(ren) AD&D
insurance
Option to purchase coverage of $10,000 or 20% of your AD&D coverage,
whichever is less. All children are covered for one price.
Business travel
accident insurance
5 times annual base salary at no cost to you.
Sick leave
Continues 100% of base salary for up to 10 days annually, for absences due to
your own illness or injuries, or for the care of an ill spouse, child or parent. There
is no cost to you.
Short term disability
(STD)
Continues 100% of base salary for up to 6 months at no cost to you.
Railroad Retirement
Board disability
Provides continuing income if you meet railroad service requirements. Benefit
amount is based on a variety of criteria. Contact the RRB for additional information.
Long term disability
(LTD) insurance
Provides income if you are disabled more than 6 months. LTD benefits are
offset if you receive benefits from other sources such as RRB disability or
Social Security.
•Coverage of 50% of benefits pay2 provided at no cost to you.
•Option to increase coverage to 66-2/3% of benefits pay.2
I N C E N T I V E C O M P E N S AT I O N P L A N ( I C P )
ICP awards for
Salaried employees
•Each salary band has a target ICP award amount.
•The payout to you is based on the company’s performance against its plan
and your individual performance.
•You are eligible for the current calendar year if hired into a Salaried position on
or before Oct. 1 and you remain a Salaried employee through year-end. Any
award is prorated based on days of active Salaried service.
2
Benefits pay = annual base salary plus target Incentive Compensation Plan (ICP) bonus for your salary band.
MORE BENEFITS
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R E T I R E M E N T & W E A LT H B U I L D I N G
Pension plan
BNSF Retirement Plan
•Automatic participation at no cost to you.
•Benefit is based on highest continuous 60 months of compensation in your
last 120 months while in a Salaried position, your years of benefit service and
your age when you retire.
•You become vested (gain full ownership of the benefit) after five years of
company service, including service as a Scheduled employee.
•Early retirement eligibility at age 55 with 10 years of vesting service;
unreduced retirement at age 65, or age 62 with 30 years of benefit service.
401(k) plan
•You become eligible the first of the month following 30 days of service from
BNSF Investment
and Retirement Plan
•Your contributions: 1% to 25% of base pay and/or ICP ($17,500 IRS maximum
your date of hire, including service as a Scheduled employee.
on your before-tax and Roth after-tax contributions in 2013).
•BNSF’s contributions:
»» Basic match: $0.50 for every $1 of before-tax and/or Roth after-tax
contributions you make from the first 6% of your pay.
»» Performance match: Based on company performance, the match could be
increased by as much as $0.30 per matchable $1 of your contributions.
•You become vested (gain ownership) in BNSF’s contributions at 20% per year
of service, including service as a Scheduled employee. You are always 100%
vested in your contributions.
Railroad Retirement
Board (RRB) retirement
benefits
Provided instead of Social Security after 60 months of compensated service in the
railroad industry. You and BNSF make RRB contributions that are greater than for Social
Security, which in turn provides retirement income benefits that exceed Social Security.
•12.05%3 withheld from each paycheck (compared with 7.65%3 for
Social Security/Medicare):
»» 1.45%4 on all taxable earnings (Medicare).
»» 6.2%3 on up to $113,700 of taxable earnings (Tier I RR Retirement).
»» 4.4% on up to $84,300 of taxable earnings (Tier II RR Retirement).
•Company pays an additional 20.25% (compared to 7.65% for Social Security/Medicare).
Note: If you leave BNSF employment and do not have compensated service
with another employer that is covered by the Railroad Retirement Act before
the 60-month vesting period for Tier II contributions, you will forfeit the Tier II
contributions. All Tier I contributions from you and BNSF will roll over to Social
Security. For more information, visit www.rrb.gov.
Employee stock purchase
You may purchase Berkshire Hathaway Inc., Class B common stock through
automatic payroll deduction. BNSF pays brokerage commission on purchases.
Q UA LI T Y O F LI F E & CA R E E R FU LF I LL M E N T
Service as a Scheduled
employee is counted.
•2 weeks annually after 1 year of service.
•3 weeks annually at any time in the calendar year of your 5th anniversary.
•4 weeks annually at any time in the calendar year of your 10th anniversary.
•5 weeks annually at any time in the calendar year of your 20th anniversary.
Paid holidays
11 days per year.
Dependent Care Flexible
Spending Account
(DCFSA)
Enables you to set aside up to $5,000 of before-tax contributions from your
paycheck to pay for eligible “day care” expenses on a tax-advantaged basis.
Expenses can be for a child under 13 or a disabled child or adult of any age who
qualifies as your dependent for federal income tax purposes.
Other valuable benefits
•24/7 Nurse Line
•Adoption Assistance
•BNSF Store
•College Scholarship
Paid vacation
Program (for children)
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•Elder Care Assistance
•Employee Discount Program (PerkSpot)
•Matching Gifts Program
•Tobacco Cessation Reimbursement Program
•Tuition Reimbursement Program (for employees)
Congress may retain a lower prior rate for 2013.
An additional 0.9% Medicare tax is withheld from taxable earnings over $200,000.
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RUNNING WITH THE BEST
Salaried employees’ comprehensive health care benefits, multiple
retirement benefit programs, and robust array of life and disability
insurance programs align competitively with the nation’s largest
and most successful companies.
While the full scope of BNSF’s benefits is impressive, the value to
you personally depends on what you make of them. Take charge
of learning how your benefits resources apply to you, and you’ll
be better equipped to use them wisely … and to maximize their
personal value to yourself and your family.
This is a brief description of the benefits provided by BNSF which are
governed by the terms of more detailed plan documents and contracts.
Your participation in any plans or programs is subject to the applicable
eligibility rules, plan requirements and government regulations. Details of
the benefit plans or programs are included in the official plan documents
and contracts. Any inconsistency of fact between the information in this
summary and the actual plan documents and contracts is accidental,
and the official plan documents and contracts govern. BNSF reserves
the right to change or terminate these programs and plans, and/or any
provisions of any program or plan, at any time without notice.
1/2013