US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year

1. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year Presenter: Lisa Noles Director, Employee Benefits & Safety US Beef Corporation lnoles@usbeefcorp.com 918-610-2238

2. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Open enrollment is the time for you to select benefits that fit you • and your dependents needs • 2013 election period • August 5-23, 2013 • Benefit Elections are effective – 9/1 of the current plan year

3. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • What’s New? • Average 35 hours to maintain coverage • PPO Urgent Care copay has decreased to $50 • Urgent care copay covers lab but not x-ray or MRI • PPO Generic prescription copays have increased to $12 • Tobacco Surcharge has increased to $15 • PPO out of pocket maximums have increased $500 • PPO and HSA specialty drug pricing has increased

4. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Who is eligible for the Medical Plans? • All full-time employees who work more than 35 hours per week. • Who is eligible for the Dental, Optional Life and Disability? • All employees who work 30 hours or more • Who is eligible for Vision? • All employees • Waiting period for Medical/RX/Dental : • Crew members – 6 months (Medical/RX) 3 months (Dental) • All Other Employees - 3 months • Open Enrollment Material. You should have received the following : • “Open Enrollment Guide” • Enrollment Forms (cover is bright Yellow) • If you are on the plan, material will be mailed to your home, and • packets given to DM’s to distribute to stores.

5. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • TWO MAJOR MEDICAL PLAN OPTIONS WITH PRESCRIPTION BENEFITS • PPO Plan • HSA Eligible Plan • Both are Major Medical Coverage, but please choose carefully. • Both plans utilize the United Healthcare Options PPO Network • The HealthCare Savings Account (HSA) Eligible Plan is a good • option if you are okay with upfront, out-of-pocket expenses. • Don’t just look at the payroll deductions, take into consideration • the out- of- pocket expenses for your and your dependents when • choosing a health plan that is right for you.

6. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Payroll Deductions • Deductions for PPO Medical and HSA Eligible - • On Page 8 of 2013/14 Employee Benefits Book • Tobacco Surcharge • Must sign an affidavit if you and your dependents do • NOT use tobacco products. • If you do not turn in an affidavit, you will pay the $15 • surcharge per paycheck • Spousal surcharge – If your spouse has insurance available • and does not select, you must pay the Spouse or Family (b) • Premium.

7. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Highlights PPO Medical • Annual In-Network Deductible is $1,500 (individual); $3,000 (family) • AnnualIn-Network Out of Pocket Maximum has increased to $4,000 • (individual); $8,000 (family) • Doctor visit Copays $30; Specialist $45 • Urgent Care copay decreased to $50 • (MRI and x-ray services are not covered under Urgent Care copay) • 100% preventative care visits (annual exams, well baby exams)

8. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • RX Coverage – PPO Medical • Generic COPAY - $12 • One time $50 (per individual) calendar year deductible • Brand Name Formulary – 50% $30 min/ $50 max • Brand Name Non-Formulary – 50% $45 min/ $70 max • Specialty – 50% $75 min / $125 max • HOW CAN YOU SAVE $$: • Use Mail Order for Maintenance Drugs (2 copays for 3 month supply) • Use the $4 drug list at WalMart, Walgreens, and Target • Ask for Generic when possible • Talk to your Doctor about the Generic or other Brand options • that may help you save money

9. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Highlights of an HSA Eligible Plan? • HIGH DEDUCTIBLE (IN-NETWORK - $1,250) • ALL EXPENSES ARE UP-FRONT AND OUT OF POCKET UNTIL • DEDUCTIBLE IS MET • NO COPAYS ON MEDICAL OR RX UNTIL DEDUCTIBLE IS MET • 100% PREVENTATIVE CARE • 100% PREVENTATIVE RX COVERAGE • USED WITH A HEALTHCARE SAVINGS ACCOUNT (HSA) • US BEEF CONTRIBUTES, AND YOU CAN • CONTRUBUTE TO YOUR HEALTHCARE SAVINGS • ACCOUNT

10. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Highlights of an Healthcare Savings Account (HSA) • Pre-Tax savings account for medical expenses • You are the owner of the account • US Beef will assist you in creating and opening the account through • Optum Bank / via UMR • Account balance can be carried forward from year to year • (No use it or lose it provision) • If you ever leave US Beef, you take it with you • Use funds for medical expenses such as Dr. visits, • RX, Dental, Vision, and other out of pocket expenses

11. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Highlights – HDHP with HSA Debit Card • Deductible is $1,250 annually • Your deductible will begin on 1/1/2014 (unless you are new to the • Plan and it will start on 9/1/13) • Annual contributions of $250 single/ $500 family (prorated monthly) will • be deposited by US Beef into your HSA account to assist • with out of pocket expenses. • You cannot enroll in a FSA (Flexible Spending Account ) if • enrolled in the HSA • Annual Maximum you can contribute to your HSA account: • $3,300 single • $6,550 family

12. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • HSA Eligible Medical Plan - RX Coverage • $1,250 Medical/RX deductible applies • (You must meet this deductible before COPAYS apply) • $12 Generic COPAY • Brand Name Formulary – 50% $35 min/ $55 max • Brand Name Non-Formulary – 50% $50 min/ $75 max • Specialty – 50% $80 min / $150 max • HOW CAN YOU SAVE $$: • Use Mail Order for Maintenance Drugs (2 copays for 3 month supply) • Use the $4 drug list at WalMart, Walgreens, and Target • Ask for Generic when possible • Talk to your Doctor about the Generic or other Brand options • that may help you save money

13. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Dental • Two Dental Plans - Delta Dental • PPO Dental • You can go to any dentist or you can choose a Delta Dental Dentist • Delta Dental in-network dentist will provide discounts • Contract with Dentists will not allow balance billing • HMO Dental • MUST USE DELTA DENTAL DENTIST FOR COVERAGE • Copay Plan • You do not pay above the copay listed, no balance billing • See page 14-15 in booklet for rates and benefits.

14. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • LIFE INSURANCE – Sun Life • BASIC GROUP LIFE (ALL EMPLOYEES ENROLLED IN MAJOR MEDICAL PLAN) • If you choose medical coverage, 2X annual salary benefit is company paid • Maximum coverage $300,000 • VOLUNTARY LIFE (CREW AND ASSISTANT MANAGERS) – PAGE 18-19 • Simply choose from $10,000 - $50,000 of coverage • Spouse and children can be covered • No medical questions asked if new enrollee within 30 days of hire • No need to have medical or other coverages to qualify • Very affordable (Rate table on page 20) • Example: • 30 years old - $20,000 coverage = .74 cents per pay period

15. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • LIFE INSURANCE – Sun Life • OPTIONAL LIFE/AD&D (ALL EMPLOYEES EXCEPT CREW/ASSISTANT MANAGERS) • (If currently covered, you do not have to fill out new forms, rates are same) • Choose up to 5x annual salary • Do not need to have medical or other coverages • New enrollee (within 31 days of hire), up to $400,000 – NO medical questions • New enrollees (after 31 days of hire), medical questions will be required. • Rates based on age and amount (see page 19) • Spouse and Children can be covered • Very affordable • Waiver of Premium – If you are disabled, premiums are paid by Sun Life • Example : • 30 year old – Elect $60,000 = .09 per $1,000 = $2.49 per paycheck

16. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Disability– Sun Life • SHORT TERM DISABILITY: • Replaces a portion of your income if you are partially or fully disabled • Disability is accident or sickness • Approximately 60% of income - Maximum $400 per week • Two (2) week elimination (waiting) period before benefits are payable • May continue for up to 11 weeks • Benefits paid weekly while you are disabled • NOTE: GM’s with more than 5 years service – benefit premium is • paid 100% by company • (If you are currently covered, you do not need to fill out new form)

17. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Disability– Sun Life • Long Term Disability: • Replaces a portion of your income if you are partially or fully disabled • Disability is accident or sickness • Approximately 60% of income – Maximum of $2,000 per month • 90 day elimination (waiting) period before benefits are payable • Paid monthly while you are disabled • NOTE: GM’s with more than 5 years service – benefit premium is • paid 100% by company

18. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year • Retirement • US Beef offers a 401(k) plan to assist you in saving for retirement. • Deductions are Pre-Tax • Must be 21 years old to participate • Must complete 1 year of service and at least 1,000 hours worked to participate • Enrollment dates: • January 1, April 1, July 1, October 1, or any pay period in December. • Contact HR for enrollment forms if interested.

19. Online Benefits Enrollment Instructions • Open the Intranet and select Online Forms • Enter your Social Security Number • Enter your name (person preparing this report) • Click the Create button

20. Make the appropriate selection from the options provided: • Select the appropriate tobacco status:

21. Make your benefit elections from the drop down menus: • Click the Benefits Election Link • Click the Edit Button

22. Complete ALL Benefits Forms with required signatures. (If form is not signed, it will be considered incomplete.) • You must complete ALL gray boxes of the beneficiary page. • PLEASE INCLUDE ALL SSN AND DATES OF BIRTH FOR ALL DEPENDENTS. • If you do not sign your tobacco form, you will be charged the tobacco fee. SAVE • Save the form by clicking the “save” icon at the top of the screen or by clicking the ‘X’ in the upper right corner and answering ‘Yes’ to the save question. • Save the form by clicking the save icon at the top of the screen or by clicking the ‘X’ in the upper right corner and answering ‘Yes’ to the save question.

23. Click the “Submit for Approval” link on the screen • Your benefits election is complete! If you have questions, contact your Benefits Team for assistance.

24. US BEEF CORPORATION ANNUAL BENEFIT ELECTIONS 2013/2014 Plan Year Questions Email: benefits@usbeefcorp.com Renee Shipman 918-665-0740 x 2239 or Lisa Noles 918-610-2238