you have the power

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2014 Benefit Guide

You have the POWER.

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Powell Employee Benefit Guide

Tab le o f c on t en ts

Benefits & Eligibility

2

Enrollment Instructions

2

Medical Plans

3

Dental Plan

8

Vision Plan

9

Flexible Spending Accounts

10

Life and Accidental Death & Dismemberment Insurance

12

Short-Term and Long-Term Disability

14

Group Auto and Home Insurance

15

Pre-Paid Legal

15

Employee Assistance Program, Identity Theft Program and Travel Assistance Program

15

401(k)

16

Summary of Rates

18

Contact Information

19

The information summarized in this guide should in no way be construed as a promise or guarantee of employment or benefits. The Company reserves the right to modify, amend, suspend, or terminate any plan at any time for any reason. If there is a conflict between the information in this brochure and the actual plan documents or policies, the documents or policies will always govern. Complete details about the benefits can be obtained by reviewing current plan descriptions, contracts, certificates, policies and plan documents available from Human Resources. This Benefits Guide is intended to fully comply with the requirements under the Employee Retirement Income Security Act ("ERISA") as a Summary of Material Modifications and should be kept with your most recent Summary Plan Description.

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October 1, 2013 To Our Employees and Families: Over the past three months, we sought to educate and inform you of the impact the Patient Protection and Affordable Care Act (PPACA) and related health care legislation (collectively “Health Care Act”) will have on Powell’s health care plans. Since passage of this health care legislation there has been considerable media debate of the bills impact. Those supporting the Health Care Act promised this legislation would ensure uninsured Americans have full access to quality and affordable health care by creating a new, regulated marketplace where consumers could purchase health care. The President has stated, “The Health Care Act is important legislation” and that “Americans will need to pay a little more so everyone can have access to quality and affordable health care”. Unfortunately, we will all begin to pay more for health care beginning January 1, 2014 to participate in Powell’s medical plan. The average increase in the employee cost sharing rate is 76 percent. This increase is a direct result of new fees, taxes and plan design costs to comply with Health Care legislation. The Company will also incur a significant increase in employer costs to provide dental, vision, and disability coverage for you and your family. A rate increase is never good news. However, Powell continues to provide you with multiple medical plan options. The Premier HCA plan continues to be a more cost effective alternative to the PPO plan. The Premier HCA plan provides the same BlueCross BlueShield provider network access and benefit coverage level as the PPO plan. All plans have the same prescription drug coverage. This Benefit Guide contains detailed information on how the HCA plans work. If you need additional information on this option, please see your H.R. representative. We take pride in providing valuable and affordable health care benefits to our employees and their families. We recognize the importance of providing broad access and choice in the selection of physician and health care providers for your family. We remain committed to providing competitive and comprehensive health care benefits for you and your family in 2014 and beyond. Best Regards, Bob Callahan Vice President & Chief Human Resources Officer

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Powell Employee Benefit Guide

Benefits & Eligibility

• Your dependent child(ren) under the age of 26

Powell shares your concern regarding the well-being of you and your family, and strives to provide a variety of benefit options so that You Have The Power to construct a benefit package that will fit your lifestyle. These programs are designed to protect your health and financial security, and to help you prepare for the future. Here at Powell, you have options.

• Your dependent child(ren) of any age who are dependent on you for support as a result of a physical or mental handicap, or disability due to a serious illness or injury

The Benefit Plans available to Powell employees include: • Medical

• Group Auto & Home

• Dental

• Pre-Paid Legal

• Vision

• Employee Assistance Program

• Flexible Spending Accounts • Life Insurance • Accidental Death & Dismemberment • Disability

• Travel Assistance Program • 401(k) Plan

Enrollment Instructions

• Identity Theft Recovery Program

Online Enrollment | powellbenefits.com

In order to be eligible for benefits, you must be a fulltime regular employee scheduled to work 20 or more hours per week. Eligibility is calculated as follows for all benefits except 401(k): Weekly Paid Employees

Become eligible for benefits on their 31st day of employment

Semi-Monthly Paid Employees

Become eligible for benefits on their date of hire

*Eligibility and enrollment information regarding the 401(k) Plan can be found on page 16.

You will also have the ability to add dependents to some of your plans as long as they meet any of the following criteria:

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You have 30 days from the date you become eligible to enroll. If you do not enroll within your initial 30 day window, you will be required to wait until the next Annual Enrollment period unless you experience a qualifying change in status. A qualifying change in status includes, but is not limited to: birth of a child, divorce, loss of other coverage under another plan, etc. A status change starts a new 30 day eligibility window for you to make appropriate changes as a result of your status change. If you feel you have experienced a qualifying change, please contact the Powell Benefit Center.

Eligibility

• Your legal spouse

• Your domestic partner that meets the definition of dependent as defined by IRS section 152

Enrollments can only be made online. You will see the total cost of each benefit, the total cost of all elected benefits that you will pay out of each of your paychecks, and you will be able to print a confirmation of your enrollment. Log into powellbenefits.com. The system will guide you through each page so you can see every benefit offered to you, and all of the company provided benefits you receive at no cost. Be sure you follow through all of the pages and submit your elections. Once you submit your elections, you will have the opportunity to print a confirmation of the selections you have made. Need Help Enrolling? If you need help enrolling or making changes, contact the Powell Benefit Center at 855.855.7610.

Medical Plans BlueCross BlueShield | bcbstx.com | 800.521.2227 Medical plans provide coverage for small things like doctor visits, while also offering you protection for serious issues. You have the option of three Medical plans, all through BlueCross BlueShield. You have the choice of taking the PPO plan, the Premier HCA plan or the Basic HCA plan. About the Plans Preferred Provider Organization (PPO) Plan The Preferred Provider Organization (PPO) plan offers a nationwide network of doctors and hospitals, and gives you the flexibility to choose any provider, in or out-of-network. If you choose an in-network provider your benefits will be greater, and you will generally pay less out-of-pocket than if you choose an out-of-network provider. The plan includes a full spectrum of covered services and direct access to specialists without the need to gain approval from a primary care doctor. The PPO plan is a traditional health plan with copayments, coinsurance and deductibles. Health Care Account (HCA) Plans A Health Care Account (HCA) is a consumer-driven health plan, that gives you the freedom to decide how your health care dollars are spent. Like the PPO plan, you will have access to the BlueCross BlueShield network of doctors and hospitals which gives you the flexibility to see the doctor of your choice. While you can choose to use in-network or out-of-network providers, generally you will save money when you use in-network providers. The plans include a Health Care Account (HCA) to which Powell contributes. You can use the money in your Health Care Account (HCA) to pay the cost of health care expenses. Using money from the Health Care Account (HCA) to offset the deductible and other medical expenses means you spend less of your own money. Whatever amount you have left in your Health Care Account (HCA) at year-end rolls over into future years and will be combined with future Powell Health Care Account (HCA) contributions. You can also choose to use money you contribute to your Health Flexible Spending Account to pay for out-of-pocket expenses. Although the HCA plans have higher deductibles, they have other benefits which might make them a better option for you, depending on your needs. These include: • Significantly lower employee premiums. • Health Care Account (HCA) established and funded by Powell that helps you pay for out-of-pocket expenses and can be applied toward your deductible. • Preventive care and well-child care services covered at 100% when you use an in-network provider, even before you’ve reached your deductible. • Same prescription drug benefits under all plans...free generics available!

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Powell Employee Benefit Guide

How do the HCA Plans Work? Powell puts money into your Health Care Account (HCA) each year that you can use up front to pay for health care costs. • The amount put in your account depends on which plan you elect and whether you elect employee only or employee plus dependent(s) coverage. • If you do not spend all the money in your HCA, the balance may roll over from year to year. • The higher your HCA balance, the less you will have to pay out-of-pocket. You Pay for Expenses with HCA • Instead of having copays or coinsurance, you pay the full cost of health care expenses using your prefunded HCA. • You can use your HCA as long as you have money in it. • Preventative care is covered at 100% by the plan – it does not come out of your HCA. • Prescription drugs are covered and the money does not come out of your HCA. You pay the same copay for prescription drugs on the HCA plans as you do on the PPO plan. You Pay up to Your Deductible • Your deductible is the amount you need to pay, with the help of your HCA, before the health plan starts to pay. • All of your initial health care expenses apply toward your annual deductible, including the ones paid from your HCA. • If you use all the money in your HCA, you then pay the rest of the deductible amount out of your own pocket, or out of a Health Flexible Spending Account. You Pay Coinsurance After You Meet Your Deductible • Once you have met your deductible, you and the health plan share expenses, with the health plan paying most of the costs. This is called coinsurance. • To protect you from high health care costs, there’s a limit on how much you need to pay out of your own pocket, including your deductible and coinsurance. This is called the out-of-pocket maximum. • After you reach your out-of-pocket maximum, all eligible medical expenses are covered up to 100% for the rest of the year.

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How the HCA can work for you: Premier HCA plan Example: Employee Only Coverage Powell Contribution to Health Care Account (HCA)

$750

Diagnostic (lab/x-rays) (In-Network/Out-of-Network)

80%/60% after deductible

Deductible

$2,000

Out-of-Pocket Max—then plan pays 100%

$4,000

Coinsurance (In-Network/Out-of Network)

80%/60%

Prescription Drug—Retail (Generic/Formulary/Brand)

$0/$30/$50

Preventive (In-Network/Out-of-Network)

100%/60% after deductible

Date

Patient

Services Received

Cost

HCA Pays

Employee Pays

Plan Pays

Amt. Applied Toward Deductible

1/1/2014

HCA Balance $750

1/25/2014

Employee

Dr. Visit

$55

$55

$-

$-

$55

$695

3/10/2014

Employee

Routine Physical

$150

$0

$-

$150

$-

$695

4/16/2014

Employee

Dr. Visit

$65

$65

$-

$-

$65

$630

7/6/2014

Employee

Emergency Room Visit

$500

$500

$-

$-

$500

$130

10/11/2014

Employee

Dr. Visit

$55

$55

$-

$-

$55

$75

In this example, the employee has $75.00 remaining in his Health Care Account (HCA) that will be rolled into his 2015 HCA account, which will be added to his 2015 employer contribution amount. The employee’s annual premium or payroll deduction, for the Premier HCA plan is $900.00 less than it would have been for the PPO plan.

How does the HCA plan work when you see a BlueCross BlueShield (BCBS) network provider? • The provider will file all claims directly with BCBS. • BCBS will pay the claim submitted by the doctor, hospital or other provider and make any payment directly to them. This payment is based on the benefits provided by the health plan and the amount of funds in your HCA. If you have available HCA funds but the provider asks for payment at the time of service, the provider should call Provider Services at 800.451.0287. • The provider will receive a Provider Claim Summary (PCS) that will notify them of any responsibility you may have. The provider will then bill you directly for any deductible or coinsurance amount owed. • An Explanation of Benefits (EOB) statement for the service(s) will be sent to you, or will be available to you online through the BCBS Blue Access for Members website. • Review your EOB to see what your “member responsibility” is. This is the amount that you owe a provider, and it should match any bills received for service(s).

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Powell Employee Benefit Guide

Medical Plans summary BlueCross BlueShield | bcbstx.com | 800.521.2227

PPO Plan Summary In-Network

Out-of -Network

n/a

n/a

$750

$2,250

Family

$1,500

$4,500

Individual

$2,000

$6,000

Family

$4,000

$12,000

Primary Care: $25 Copay Specialist: $40 Copay

50% after Deductible

Preventative Care

Covered at 100% No Deductible

50% after Deductible

Inpatient Services

80% after Deductible

50% after Deductible

$75 Copay

50% after Deductible

Powell HCA Contribution

Employee Only Employee + Spouse Employee + Child(ren) Family

Annual Deductible Annual Out of Pocket Maximum

Individual

Doctor’s Office Visit

Urgent Care Center Services Emergency Room Services Outpatient Surgery

80% after In-Network Deductible 80% after Deductible

50% after Deductible

Radiation, Dialysis, Chemotherapy Treatment

100% after $200 Copay

50% after Deductible

Outpatient Diagnostic Services CT Scans, Pet Scans, MRI & Nuclear Medicine

$100 Copay

50% after Deductible

80% after Deductible

50% after Deductible

Other Outpatient Diagnostics Durable Medical Equipment Limited to $5,000 per calendar year

80% after Deductible

Hearing Aid $5,000 Annual Maximum

80% after Deductible

Prescription Drugs

Retail (31 Day Supply)

Mail Order (90 Day Supply)

Generic

$0

$0

Brand Name

$30

$60

Non-Preferred Brand Name

$50

$100

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Medical Plan Employee Premiums (Pre-Tax Payroll Deductions) PPO

Employee Only

Premier HCA

Weekly

SemiMonthly

$40.38

$87.50

Employee + Spouse $80.77 $175.00 Medical Benefit Plans and Premiums Employee + Child(ren)

$69.23

$150.00

Weekly

Weekly

SemiMonthly

$23.08

$50.00

$6.92

$15.00

$51.92

$112.50

$20.77

$45.00

$40.38

$87.50

$16.15

$35.00

$150.00

$27.69

$60.00

BlueCross BlueShield |$225.00 800.521.2227 Employee + Family | www.bcbstx.com $103.85 $69.23

Premier HCA Plan Summary In-Network

Basic HCA

SemiMonthly

Basic HCA Plan Summary

Out-of-Network

In-Network

Out-of-Network

$750

$500

$1,000

$750

$1,500

$1,000

$2,000

$4,000

$3,000

$6,000

$4,000

$8,000

$6,000

$12,000

$4,000

$8,000

$6,000

$12,000

$8,000

$16,000

$12,000

$24,000

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

Covered at 100% No Deductible

60% after Deductible

Covered at 100% No Deductible

40% after Deductible

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

80% after Deductible

60% after Deductible

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

80% after Deductible

60% after Deductible

60% after Deductible

40% after Deductible

80% after Deductible

60% after Deductible

80% after Deductible

60% after Deductible

Retail (31 Day Supply)

Mail Order (90 Day Supply)

Retail (31 Day Supply)

Mail Order (90 Day Supply)

$0

$0

$0

$0

$30

$60

$30

$60

$50

$100

$50

$100

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Powell Employee Benefit Guide

Dental Plan MetLife | metlife.com/mybenefits | 800.942.0854 Good dental health is just as important as your annual physical. According to the American Academy of Periodontology, dental diseases (if left unattended) can contribute to health issues like heart disease, stroke, preterm birth, and diabetes. Dental benefits promote and encourage good dental health by helping you and your family with dental expenses. Powell employees are offered a comprehensive Dental plan through MetLife. MetLife offers an extensive network of top quality dentists for you to choose from, but you may also choose your own dentist. However, just like with the Medical plan, you will most likely spend significantly less if you choose a dentist or provider in the network. Please note, you will not receive a Dental ID card from MetLife. You simply tell the dental service provider that you are with MetLife, and they will ask you for your SSN to verify eligibility with MetLife. For your convenience, a detachable wallet card with pertinent information is attached to the back of this guide. Dental Plan Premiums Weekly

Semi - Monthly

Employee Only

$1.50

$3.25

Employee + Spouse

$4.50

$9.75

Employee + Child(ren)

$4.50

$9.75

Employee + Family

$6.00

$13.00

Dental Plan Summary Annual Deductible Annual Maximum Benefit

$2,000

Preventative (cleanings, exams, x-rays)

100%

Basic Dental Services (fillings, basic root canal therapy)

80%

Major Dental Services (extractions, crowns, inlays, onlays, bridges)

50%

Orthodontia Services - Adult & Children (pre-authorization required) Orthodontia Lifetime Maximum

10

Individual $50 Family $150

50% after $50 Orthodontia Deductible $1,500 per person

Vision Plan VSP | vsp.com | 800.877.7195 Regular eye examinations may not only determine your need for corrective eye wear, but could also detect other health problems such as glaucoma, diabetes, high blood pressure and high cholesterol. Eye exams are a good preventive care measure. If you participate in the Powell Vision plan through VSP, you can receive great discounts on services and supplies like eye exams, glasses and contacts! Please note, you will not receive a Vision ID card. You simply tell the vision service provider that you are with VSP, and they will ask you for social security number to verify eligibility with VSP. For your convenience, a detachable wallet card with pertinent information is attached to the back of this guide. Vision Plan Premiums Weekly

Semi - Monthly

Employee Only

$1.50

$3.25

Employee + Spouse

$3.00

$6.50

Employee + Child(ren)

$3.00

$6.50

Employee + Family

$4.50

$9.75

Vision Benefit Plan Summary Office Copay Services Exam Lenses Exam Lenses Single Vision Bifocal Trifocal Lenticular Frames

In - Network

Out - of - Network

$25

$25

Once every plan year

Once every plan year

Covered 100%*

Up to $45*

Covered 100%*

Up to $45* Up to $65* Up to $85* Up to $125*

Up to $130 allowance

Up to $47*

Covered 100% up to $130*

Up to $210* Up to $105*

Contact Lenses Medically Necessary Elective

* Subject to the $25 Copay. The Plan will cover either contacts or lenses/frames but not both.

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Powell Employee Benefit Guide

Flexible Spending Accounts Discovery Benefits | discoverybenefits.com | 866.451.3399 Flexible Spending Accounts (FSAs) allow participants to save tax dollars on certain eligible medical and/or dependent care expenses. The FSAs are funded by pre-tax payroll deductions based on your annual election. In order to calculate what your pre-tax per pay period deduction would be, simply divide your annual election amount by the number of paychecks you will receive from the time of your effective date in the plan through the end of the plan year, December 31, 2014. Health Flexible Spending Account A Health Flexible Spending Account (FSA) allows you to set aside pre-tax dollars from your paycheck to pay for eligible healthcare expenses not covered by insurance. Participants can use this money to pay for deductibles, copays, prescriptions, and other eligible expenses as determined by the IRS. For a complete list of eligible expenses, please go to discoverybenefits.com or irs.gov and search for Publication 502. If you choose to enroll in the Health FSA, you will receive a debit card fully loaded with your annual election amount to use towards eligible expenses. Always keep your receipts; you may be required to submit them to validate that your charge/reimbursement was an eligible expense. • No minimum annual contribution • Maximum annual contribution is $2,500 • Examples of eligible expenses include: deductibles, copays, coinsurance, lasik eye surgery, eye glasses, dental services, etc. Dependent Care Flexible Spending Account A Dependent Care Flexible Spending Account (FSA) allows you to set aside pre-tax dollars from your paycheck to pay for eligible dependent care expenses, such as daycare costs. To qualify, you and your spouse must be employed, looking for work, or your spouse must be a full-time student. Unlike the Health FSA, the money must be in your dependent care account before you can be reimbursed. For a complete list of guidelines and eligible expenses, please visit discoverybenefits.com. • No minimum annual contribution • Maximum annual contribution $5,000 • Examples of eligible dependents include: a dependent under the age of 13 or a dependent that is physically or mentally incapable of self care. A dependent is defined as a qualifying person for whom you can claim a tax exemption.

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Example of potential tax savings through the use of a Flexible Spending Account (FSA)

With the FSA accounts

Without the FSA accounts

Annual Salary

$30,000

$30,000

Annual Health FSA Election

-$1,250

$0.00

Annual Dependent Care FSA Election

-$3,000

$0.00

Taxable Salary

$25,750

$30,000

Taxes (assumes 15% tax)

$3,862.50

$4,500

Annual Income After Taxes

$21,887.50

$25,500

$0.00

-$4,250

$21,887.50

$21,250

After-tax costs for health care & dependent care expenses Take home pay Annual Savings in taxes:

$637.50

There are “use it or lose it” rules imposed by the IRS; therefore, it is important for you to carefully consider the amount of money you elect to contribute to an FSA account. Under the Dependent Care FSA, eligible dependent care expenses incurred from January 1, 2014 through December 31, 2014 must be submitted no later than April 30, 2015. Under the Health FSA, you must submit eligible health care expenses incurred from January 1, 2014 through March 15, 2015 no later than April 30, 2015. Don’t forget, you can set aside money in a Health Flexible Spending Account (Health FSA) to help pay anticipated out-of-pocket costs either after you have exhausted your HCA balance, or before you use your HCA funds. Remember, you can roll over unused HCA funds, but unused Health FSA funds will be forfeited at the end of the plan year.

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Powell Employee Benefit Guide

Life and Accidental Death & Dismemberment Insurance Unum | unum.com | 800.445.0402 Life Insurance Life insurance pays a benefit (called a death benefit) to your beneficiary (whomever you designate to receive the benefit) upon your death resulting from an accident or illness. Powell provides you with Basic Life Insurance (company-provided) in the amount of $50,000 at no cost to you. You also have the ability to purchase additional life insurance, called Supplemental Life insurance on yourself and your dependents (employees must be covered to cover dependents). If you elect life insurance on a family member, such as your spouse or child, you would be the beneficiary and receive the death benefit if that family member passes away. Please see the chart on the next page for detailed information. Accidental Death & Dismemberment Insurance (AD&D) Accidental Death & Dismemberment Insurance (AD&D) protects you and your family from the unforeseen financial hardship of an accident that causes death, dismemberment, or loss of sight, speech, or hearing. Benefits are paid to your designated beneficiary for a death claim and to you for a dismemberment claim. Powell provides you with Basic AD&D Insurance (company-provided) in the amount of $50,000 at no cost to you. You also have the ability to purchase additional AD&D insurance, called Supplemental AD&D insurance on yourself and your dependents. If you elect AD&D insurance on a family member, such as your spouse or child, you would be the beneficiary and receive any benefits paid. Please see the chart on the next page for detailed information. Benefit Reduction Rules For Insureds age 65 and over, the Amount of Basic Life and Accidental Death & Dismemberment Insurance and Supplemental Life Insurance is subject to automatic reduction. The Amount of Basic Life and Accidental Death & Dismemberment Insurance and Supplemental Life Insurance will be reduced to the applicable percentage shown below, based on your age as of January 1st of each year. This reduction also applies to Insureds who are age 65 or over on their initial enrollment date. Age/Percentage of in-force amount at age 64

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Age

Percentage

65-69

65%

70-74

40%

75+

20%

Optional Life and AD&D Insurance Employee

Spouse

Child(ren)

Available in $10,000 increments

Available in $5,000 increments

$5,000 or $10,000

$300,000

$20,000

$10,000

Life Maximum Benefit

Lesser of 7x earnings or $800,000

$250,000 - not to exceed 100% of employee amount

$10,000

AD&D Coverage Amount

Available in $25,000 increments

Available in $5,000 increments

$5,000 or $10,000

AD&D Maximum Coverage

Lesser of 7x earnings or $800,000

$250,000 - not to exceed 100% of employee amount

$10,000

Life Coverage Amount Guarantee Issue Amount (Guarantee issue only available during initial enrollment, late enrollment subject to EOI)

Employee and Spouse Optional Life Insurance Monthly Rates per $1,000 of Coverage Age Band

Rate

Age Band

Rate

18-29

$0.06

50-54

$0.31

30-34

$0.08

55-59

$0.54

35-39

$0.10

60-64

$0.76

40-44

$0.12

65-69

$1.43

45-49

$0.18

70-79

$2.32

Child(ren) Optional Life Insurance Monthly Rate is $0.10 per $1,000 of Coverageld(ren) Optional Life Insurance Monthly Rate is $0.10 per $1,000 of Coverage

Optional AD&D Insurance Monthly Rates per $1,000 of Coverage Employee

Spouse

Child(ren)

$0.02

$0.035

$0.035

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Powell Employee Benefit Guide

Short-Term and Long-Term Disability Unum | unum.com | 866.779.1054

Disability coverage is designed to replace a portion of your salary in the event of a covered illness or injury that prevents you from being able to work.* For your convenience, a detachable wallet card with pertinent information is attached to the back of this guide. Short-Term Disability replaces 60% of your base per-pay period earnings for up to 12 weeks. It begins after seven continuous days of disability due to illness or injury that is not work related.

Hours and Earnigns

Sample check stub without disability benefits:

Reg Hourly

Current 40 673.08

Total h/e

40

Pre-Tax Items MED PRE-TAX DENTAL PRE-TAX Total Pre-Tax

-23.08 -1.50 -24.58

Total

648.50

Current

Earnings 673.08

Hours and Earnigns

Sample check stub with aftertax disability benefits:

Reg Hourly STD LTD Total h/e Pre-Tax Items MED PRE-TAX DENTAL PRE-TAX Total Pre-Tax Total

Current

The disability benefit is considered tax-free income, which means the premium for coverage must be paid by after-tax employee paycheck contributions. Powell, however, will reimburse you the full amount of the deduction, so that the only expense to you is a very small payroll tax on the amount of the reimbursement. See the example below for illustration.

Taxes and Deductions Description SOC SEC Tax Medicare Tax FED INC Tax Total Taxes

673.08

Special Information Current Amount 40.21 9.40 97.28 146.89

After Tax Deductions

Current Net Pay Distribution C 3479412 501.61

Total Per Deduction

Pre-Tax -24.58

FIT Taxable 648.50

Less Taxes 146.89

Less Deds 86.34

Total Current Net Pay

EQ Net Pay 501.61

Taxes and Deductions

Current 40 673.08 0 2.22 0 2.36 40 677.66

Description SOC SEC Tax Medicare Tax FED INC Tax Total Taxes

-23.08 -1.50 -24.58 653.08 Earnings 677.66

Long-Term Disability replaces 60% of your base monthly earnings and begins after 90 days of continuous disability due to illness or injury, both occupational and non-occupational (however, coverage will only supplement Workers’ Compensation if the benefit is greater).

Pre-Tax -24.58

FIT Taxable 653.08

Special Information Current Amount 40.49 9.47 97.96 147.92

After Tax Deductions STD LTD

2.22 2.36

Total Per Deduction

4.58

Less Taxes 147.92

Less Deds 4.58

501.61

EQ Net Pay 500.58

Current Net Pay Distribution C 3479412 500.58

Total Current Net Pay

500.58

The above illustrations are based on an employee earnings approximately $35,000 per year. In this example, the employee is paying $1.03 per week for $132.06 in additional benefit. The net impact of this change may be slightly less or more depending on your annual base earnings.

*Pre-existing limitations may apply. Please check the Summary Plan Description for more details.

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Group Auto & Home Insurance

Employee Assistance Program

Powell also offers its employees access to a unique voluntary benefit program from MetLife Auto & Home. Through this program, you will have the opportunity to apply to purchase discounted auto, home and other property and liability insurance. Some of the benefits of choosing to purchase insurance through this plan include:

The Employee Assistance Program (EAP) is available to all Powell employees and members of their household at no cost to the employee. The EAP is a benefit that provides access to a wide variety of tools and services to assist with life challenges that could affect your health, relationships with others or your job performance. The EAP allows you to talk with, and in some cases meet with, professionals at no charge to assist you with various issues that include, but are not limited to, family matters, legal matters, stress, financial concerns, work-life issues, etc. The EAP services are always 100% confidential.

metlife.com/mybenefits | 800.438.6388

• • • •

Special Group Rates (up to a 15% discount) Hassle-Free Payment Options (including payroll deduction) Personalized Service Variety of insurance policies to choose from including coverage for: boat, condo, motor home, and renter’s insurance

You may apply for coverage by calling MetLife or visiting their website.

GROUP PRE-PAID LEGAL Services metlife.com/mybenefits | 800.821.6400

Powell employees have the option of enrolling in METLAW/Hyatt Legal Plans. If you choose to enroll, you will have access to attorney services for a wide variety of legal matters. If enrolled, this plan would provide you with representation for many personal and legal services for you and your eligible dependents (eligible dependents are your spouse/ domestic partners, and unmarried dependent children). The plan offers office consultations and/or telephone advice for most personal legal matters. Pre-Paid Legal Premiums Weekly

Semi - Monthly

$4.15

$9.00

800.854.1446| lifebalance.net

Identity Theft Recovery 800.854.1446| lifebalance.net

Identity theft is a serious crime that affects millions of Americans every year. Through the EAP you and your family have around-the-clock access to resources that can help. This program can: • • •

Give you 24/7 guidance and support by phone Contact all involved agencies on your behalf Replace any personal identifying documentation that is lost, stolen, damaged or destroyed

Travel Assistance Program 800.872.1414

As a Powell employee, you have access to Assist America at no cost to you. This service can help you and your family members who are travelling more than 100 miles away from home and have a medical or personal emergency. By calling the Assist America center you can: •

• • • •

Be connected to pre-qualified, English speaking doctors, hospitals, pharmacies and dentists anywhere in the world Receive medical referrals to local doctors or dentists Arrange for emergency medical evacuation Get prescription assistance Arrange for the return of a dependent child if left unattended as a result of the participant’s medical emergency

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Powell Employee Benefit Guide

The 401(k) Plan The Principal Financial Group | principal.com | 800.547.7754 The Powell Industries, Inc. Employees Incentive Savings Plan (401(k) Plan) is a great way to save for retirement. A 401(k) plan enables you to make choices about the amount you want to save for retirement and permits you to choose among a variety of investment options made available by the Plan. By participating in this type of retirement plan, you are in control of the amount you are contributing for your retirement and where those funds are invested, allowing you to make decisions that are based on your personal situation. • You are eligible to join the 401(k) Plan if you have completed 90 days of service.

• Traditional 401(k) salary deferral contributions are taken out before taxes. As a result, an employees’ taxable income will be reduced and the taxes paid may decrease as well. Time is working for you — compound interest and account growth: Compounding means you generate earnings on both the original investment and the reinvested earnings. The longer the interest has to compound, the more the retirement funds may grow. The examples below illustrate the potential impact of matching contributions and the power of compounding: This chart assumes a $35,000 salary with a 4% annual increase, an annual 8% rate of return, and a 100% employer match up to 4% of pay.

• For Interns only: Must be age 21 and have completed 1,000 hours of service with the company.

Employee Contribution

Employer Contribution

Savings in 15 years

Savings in 30 years

Employee Example 1

0%

0%

$0

$0

Employee Example 2

2%

2%

$49,962

$248,466

Employee Example 3

4%

4%

$99,924

$496,932

• You may enter the 401(k) Plan on any date on or after you meet the eligibility requirements. • You are automatically enrolled to contribute 2% of your pay to the 401(k) Plan (unless you elect otherwise) and your deferral will increase by 1% each year until you reach 10% (unless you opt out of auto-escalation). • Powell employees can make salary deferral contributions on a pre-tax and/or after-tax basis and may contribute 1% to 75% of pay up to the IRS limit for the year. • Powell will match 100% of the first 4% of the employee’s contribution to the Plan. • You are always 100% vested in the contributions you choose to contribute and in matching contributions made after 1/1/2009. • Employees may have up to two outstanding general purpose loans and one residential loan at any time. Loans must be repaid in a 5-year period (unless for the purchase of a primary residence).

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Ready to take the next step? Employees can enroll in, or increase contributions to, the 401(k) Plan in one of two easy ways: • Online at principal.com • By phone at 800.547.7754

Summary of rates & Important Contact Information

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Powell Employee Benefit Guide

Summary of All Plan Rates Medical Plan Employee Premiums

PPO

(Pre-Tax Payroll Deductions)

Premier HCA

Basic HCA

Weekly

Semi-Monthly

Weekly

Semi-Monthly

Weekly

Semi-Monthly

Employee Only

$40.38

$87.50

$23.08

$50.00

$6.92

$15.00

Employee + Spouse

$80.77

$175.00

$51.92

$112.50

$20.77

$45.00

Employee + Child(ren)

$69.23

$150.00

$40.38

$87.50

$16.15

$35.00

Employee + Family

$103.85

$225.00

$69.23

$150.00

$27.69

$60.00

Dental Plan Premiums

Weekly

Semi-Monthly

Employee Only

$1.50

$3.25

Employee + Spouse

$4.50

Employee + Child(ren) Employee + Family

(Pre-Tax Payroll Deductions)

Vision Plan Premiums

Weekly

Semi-Monthly

Employee Only

$1.50

$3.25

$9.75

Employee + Spouse

$3.00

$6.50

$4.50

$9.75

Employee + Child(ren)

$3.00

$6.50

$6.00

$13.00

Employee + Family

$4.50

$9.75

(Pre-Tax Payroll Deductions)

Employee and Spouse Optional Life Insurance Monthly Rates per $1,000 of Coverage Age Band

Rate

Age Band

Rate

18-29

$0.06

50-54

$0.31

30-34

$0.08

55-59

$0.54

35-39

$0.10

60-64

$0.76

40-44

$0.12

65-69

$1.43

45-49

$0.18

70-79

$2.32

Child(ren) Optional Life Insurance Monthly Rate is $0.10 per $1,000 of Coverage Optional AD&D Insurance Monthly Rates per $1,000 of Coverage Employee

Spouse

Child(ren)

$0.02

$0.035

$0.035

Disability Premiums* Short-Term

Long-Term

$.33 per month for each $100 of base compensation

$.35 per month for each $100 of base compensation

*This amount is reimbursed by Powell. See page 14 for more information.

Pre-Paid Legal Premiums

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Weekly

Semi - Monthly

$4.15

$9.00

Contact Information Benefit

Provider

Group Number/Name

Contact Number

Website

Medical (PPO Plan)

BlueCross BlueShield

079163

800.521.2227

www.bcbstx.com

Medical (Premiere HCA Plan)

BlueCross BlueShield

079195

800.521.2227

www.bcbstx.com

Medical (Basic HCA Plan)

BlueCross BlueShield

079196

800.521.2227

www.bcbstx.com

Prescription Drug

Prime Therapeutics through BlueCross BlueShield

same as Medical Group #

800.521.2227 Option #2

www.bcbstx.com

Dental

MetLife

148269

800.942.0854

www.metlife.com/mybenefits

Vision

VSP

12250635

800.877.7195

www.vsp.com

Flexible Spending Accounts

Discovery

15626

866.451.3399

www.discoverybenefits.com

Life and AD&D

Unum

213758

800.445.0402

www.unum.com

Disability

Unum

STD/604714 LTD/604713

866.779.1054

www.unum.com/claims

Auto & Home

MetLife

Powell

800.438.6388

www.metlife.com/mybenefits

Pre-Paid Legal

Hyatt Legal Plans through MetLife

Powell

800.821.6400

www.metlife.com/mybenefits

Employee Assistance Program

Ceridian (Unum partner)

Powell

800.854.1446

www.lifebalance.net User ID/password: lifebalance

Identity Theft Recovery

Ceridian (Unum partner)

Powell

800.854.1446

www.lifebalance.net User ID/password: lifebalance www.assistamerica.com www.principal.com Powell’s Contract #: 522732

Emergency Travel Assistance

Assist America

213758

800.872.1414 (US) 609.986.1234 (outside US)

401(k)

The Principal

522732

800.547.7754

For questions, please contact your local H. R. Department: Division

Main #

Branded Products

713.790.1700

Corporate

713.944.6900

Delta/Unibus

708.409.1200

Electrical Division - Houston

713.944.6900

Electrical Division - North Canton

330.966.1750

Offshore

281.452.4885

PowlTech

713.383.5888

Service

713.383.5888

Transdyn

678.473.6400

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Powell Employee Benefit Guide notes

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