BHP Billiton Benefits Program Petroleum and Houston-Based Employees 2013 Benefits Summary
2013 Benefits Summary for US Employees BHP Billiton makes a significant investment to offer our employees and their families a generous and competitive benefits program. We understand that benefits are an important part of the total BHP Billiton rewards package, so we strive to always offer comprehensive coverage and excellent service. Compared to our primary competitors and others within our industry, we rank well in the top quartile for total benefits value. This brochure details all of the benefits offered to our employees. Please review it carefully and do not hesitate to contact us with any questions we look forward to working with you! Note: You are eligible to participate in all benefit plans on your date of hire, unless otherwise noted in this overview. For more information regarding Educational Assistance, Matching Gifts, and Holidays, contact your HR Business Partner. bhp billiton benefits program Benefit Who pays 2012 program highlights Medical Plans BHP Billiton provides two options, each with generous preventive care benefits and a formulary prescription drug plan: High Deductible Health Plan with Health Savings Account Offers no monthly premiums, more control over your health care dollars, and 100% coverage for preventive care BHP Billiton contributes annually to your Health Savings Account, pro-rated for mid-year starters Employee only $750 Family $1,500 PPO Medical Plan Offers a high level of coverage, low deductibles, and copays for office visits and prescription drugs Retiree Health Care BHP Billiton provides comprehensive health care for our retirees. Eligibility requirements: At least age 55 At least 10 years of BHP Billiton US-based service Company subsidy based on age and years of service Pre-65 medical and dental benefits same as active employees Medicare Supplement Plan for age 65 or over Dental Plan BHP Billiton provides a Dental Plan where you can use any licensed dentist, or PPO point of service option: $50 deductible, $3,000 annual maximum benefits Preventive 100%, no deductible Basic 90% after deductible Major 75% after deductible Ortho 100%, no deductible, $2,500 lifetime maximum 2 continued
bhp billiton benefits program continued Benefit Who pays 2012 program highlights Vision Plan BHP Billiton provides a vision benefit that can help you offset the cost of eye exams, eyeglasses, and contact lenses: 100% benefit most services in network Annual eye exam, lenses, frames, contact lenses allowance Optional features not covered, such as tints or progressive lenses Allowances for out-of-network services Wellness Assessment BHP Billiton BHP Billiton wants to help you stay healthy, and provides an annual $120 taxable lump-sum payment if you earn 30 credits through a variety of wellness programs available online, including a health assessment and quarterly challenges. Health Club Assistance Employee Assistance Program Life, AD&D, and Business Travel Accident Insurance Plans BHP Billiton BHP Billiton BHP Billiton knows that staying healthy means including exercise in your routine and provides an annual $400 taxable credit just for being a member of a health club. This assistance could go a long way in covering health club fees and can be elected anytime. BHP Billiton provides an Employee Assistance Program that can help you and/or your family with personal problems that may affect your health, family life, or job performance: Up to three sessions free with clinician for help dealing with work and life problems Professional referral services for extended care needs BHP Billiton pays the full cost of Basic Life, Basic Accidental Death and Dismemberment (AD&D), and Business Travel Accident Insurance: Basic Life Insurance BHP Billiton provides 2x your annual base pay to a $1.0 million maximum coverage. Basic AD&D Insurance BHP Billiton provides 3x your annual base pay up to a $1.5 million maximum coverage. Business Travel Accident Insurance BHP Billiton provides 4x your annual base pay (minimum of $155,000, maximum of $3.8 million coverage*). In addition, you can purchase Supplemental Life and AD&D coverage:** Supplemental Life Insurance You can choose to elect from 1x 4x your annual base pay to a $2.0 million maximum coverage. Supplemental AD&D Insurance You can choose to elect from 1x 3x your annual base pay up to a $1.5 million maximum coverage. Dependent Life and AD&D Insurance You can elect: Spouse: $10,000, $25,000, or $50,000 Child: $2,000, $5,000, or $10,000 * US$ estimated based on exchange rate with AU$. Program administered in Melbourne, Australia. ** Evidence of Insurability rules may apply for life insurance. continued 3
bhp billiton benefits program continued Benefit Who pays 2012 program highlights Disability Income Plans Pre-Tax Reimbursement Accounts You BHP Billiton pays the full cost of Short-Term and Long-Term Disability: Short-Term Disability Three months at 100%, then three months at 66.67% Six months maximum, annually renewable Basic Long-Term Disability Covers annual base pay up to $270,000 66.67% benefit level, up to $15,000 maximum benefit per month, taxable In addition, Supplemental Long-Term Disability coverage is available on an employee-paid basis when annual base pay exceeds $270,000. BHP Billiton provides a great way to save on eligible health care and dependent day care expenses through Pre-Tax Reimbursement Accounts: Health care $2,500 maximum annual contribution Dependent care $5,000 maximum annual contribution ($2,500 if married filing separate tax returns) Debit card for efficient, automated adjudication for some claims Retirement Savings Plans 1. Employer Funded Account (EFA) 2. 401(k) Plan Participation begins immediately. Immediate 100% vesting in both accounts. BHP Billiton provides two highly acclaimed plans to help you save and prepare for retirement: 1. Employer Funded Account (EFA) BHP Billiton automatically contributes to your retirement savings account each pay period: 8.5% of eligible pay up to Social Security taxable wage base, plus 14.2% of eligible pay over Social Security taxable wage base AND 2. 401(k) Account You can contribute 1% 30% of eligible pay, generally limited to: BHP Billiton match 100% of your contribution up to a maximum of 6% $17,500 pre-tax/roth limit $51,000 maximum contribution $5,500 catchup for age 50 plus Provisions for rollover contributions and loans Shareplus BHP Billiton provides an opportunity for you to purchase shares of company stock: You can contribute after-tax dollars to purchase shares. Maximum contribution $5,000 annually. Each share you purchase is matched by the company at the end of the three-year holding period while still employed. continued 4
bhp billiton benefits program continued Benefit Who pays 2012 program highlights Vacation Policy BHP Billiton BHP Billiton provides substantial paid time off for you to relax or pursue activities of interest. Vacation is accrued on a monthly basis. Your entitlement is based on your years of service with BHP Billiton and industry experience: Salaried Employees Years of service/ relevant work experience Calendar year vacation entitlement 1 to 9 years 120 hours 10 to 19 years 160 hours 20 to 29 years 200 hours 30+ years 240 hours Off-Shore Hourly Employees Rotation schedule/ years of service Calendar year vacation entitlement 14/14 Schedule 1 to 19 years 168 hours 20 to 29 years 200 hours 30+ years 240 hours 5/2 Schedule 1 to 19 years 100 hours 20 to 29 years 200 hours 30+ years 240 hours Sick Leave Policies BHP Billiton BHP Billiton provides two sick leave policies for you to care for yourself or your loved ones when ill: Employee Sick Leave Dependent Sick Leave five days per calendar year Holidays BHP Billiton BHP Billiton provides nine regular holidays plus one floating holiday per year. Educational Assistance Policy Matching Gifts Program Transportation Assistance Policy Eligibility requirements and reimbursement levels vary; check with your HR leadership. Contribution limits and organizations to which gifts can be donated vary; check with your HR leadership. BHP Billiton provides $60 cash per month for participation in a car pool, or when walking or bicycling to work. Expenses you incur for metro bus and van pooling are reimbursed through the expense report process up to the federal, non-taxable limit, indexed periodically. 5
Costs noted are per semi-monthly pay period on a pre-tax basis. It is important to note that premiums listed are only a small fraction of the total cost. BHP Billiton currently pays 100% of the High Deductible Health Plan, 80% for the Medical PPO Plan, 80% for Dental, and 50% for Vision. Employee premiums Health plans semi-monthly premiums High Deductible Health Plan with Health Savings Account contribution from BHP Billiton* Medical PPO Plan Dental Vision Employee only $0 $54.00 $6.50 $2.72 Employee plus spouse $0 $140.50 $14.50 $4.34 (employee plus one) Employee plus child(ren) $0 $124.00 $12.00 N/A Employee plus family $0 $178.50 $21.50 $7.13 Opt out $50 credit $10 credit $2 credit To opt out of medical coverage you must have other coverage, such as through your spouse s employer. * $750 single coverage $1,500 family coverage Pro-rated for mid-year starters 6
Monthly premium rates for supplemental insurance coverage are noted below with an example of how to calculate per pay period cost. Supplemental coverage is in addition to basic coverage BHP Billiton provides. Premiums are paid after tax. Employee premiums metlife monthly insurance rates for supplemental coverage Supplemental Life Under age 35 Age 35 39 Age 40 44 Age 45 49 Age 50 54 Age 55 59 Age 60 64 Age 65+ $0.042 $0.067 $0.126 $0.199 $0.324 $0.528 $0.823 $1.156 Rates are per $1,000 of coverage volume. Example: Annual base pay $100,000 Age 53 Coverage volume 3x annual base pay for total insurance volume $300,000 $300,000 $1,000 = $300 $300 x $0.324 = $97.20 premium per month $97.20 2 = $48.60 premium per semi-monthly pay period Supplemental AD&D $0.025 Rate is per $1,000 of coverage volume. Example: Same assumptions used here as used for supplemental life above $300,000 $1,000 = $300 $300 x $0.025 = $7.50 premium per month $7.50 2 = $3.75 premium per semi-monthly pay period Spouse Life and AD&D $10,000 $25,000 $50,000 Child Life and AD&D $2,000 $5,000 $10,000 $1.66 $4.15 $8.31 $0.42 $1.04 $2.08 Rates are flat rates per level of coverage; to determine semi-monthly premium, divide rate shown by 2. Rates are flat rates per level of coverage; to determine semi-monthly premium, divide rate shown by 2. Supplemental LTD $0.225 Rate is per $100 of monthly base pay exceeding $22,500 per month. Example: Annual base pay of $300,000 $300,000 12 = $25,000 monthly salary $25,000 - $22,500 = $2,500 $2,500 $100 = $25 x $0.225 = $5.63 premium per month $5.63 2 = $2.81 premium per semi-monthly pay period 7
Contact Us BHP Billiton 1360 Post Oak Blvd., Suite 150 Houston, TX 77056 Telephone: 1-713-961-8500 Fax: 1-713-499-5386 www.bhpbilliton.com A Final Word This brochure highlights certain key features of the BHP Billiton Health and Welfare Benefits Program and the individual plans within the program. More details of the plans can be found in the governing plan documents. In the event of a discrepancy between the applicable plan documents and this brochure, the relevant plan documents govern. The company reserves the right to modify, amend, or terminate the plans at any time. M269518 12/12