HR_options_1710091_Guide benefit_KS

Benef¡ts at a Glance Enriching your life experience

Introduction

Dear Colleagues,

Living and working at KAUST is a rewarding experience, and to add to that experience, we offer a comprehensive and competitive benefits package. These benefits are designed to fit with our diverse international community in the areas of health, wellness, and wealth. While this guide will give you an overview, I think you will find that the experiences and accomplishments that you earn here at KAUST may well exceed anything listed here. If you are thinking of joining us, or have just arrived, I know that you can help make this destination, KAUST, a place where you are proud to live and work.

Best Wishes,

Henk Kriek Chief Financial and Human Resources Officer

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Benefits Overview The King Abdullah University of Science and Technology (KAUST) offers a wide range of benefits designed to provide its faculty, staff and their families with the coverage, lifestyle and financial security they desire. The University provides competitive employee benefits that includes medical and dental benefits, pension and savings plans, paid annual leave and much more. These benefits are summarized in this “Benefits at a Glance” Brochure, while details and individual terms will be explained by the Human Resources Benefits Representative during your Benefits Orientation. To learn more about the benefits being offered and how to choose the type and level of coverage that is right for you, please continue reading.

Health

Health Insurance

Comprehensive, High Quality Medical and Dental Plans

At KAUST offers high quality, comprehensive medical and dental plans for all eligible faculty and staff members, as well as their spouse and eligible dependent children who are 19 years old or younger. The plan also covers your dependent children who are 25 years old or younger who are enrolled full-time in an undergraduate college or university and unmarried. Through analysis of the marketplace for quality International Healthcare providers with established operations in the Middle East, BUPA - Middle East and BUPA – Global proved to be the providers of choice, known for high quality care, excellent group rates, and superb customer service. BUPA has an extensive network in 190 countries, with 3,000 corporate clients covering 660,000 individuals and 120 nationalities. KAUST provides two healthcare plans, which employees are encouraged to review prior to selecting the plan that best fits their family’s requirements. An overview description of benefits and coverage levels are shown in the chart below.

BUPA - Arabia Provides healthcare coverage for employees and dependents residing in Saudi Arabia Standard Plan

Optional Plan BUPA - Global

Provides healthcare coverage for employees and dependents residing both inside or outside of Saudi Arabia

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Health Insurance premiums under the BUPA Arabia Plan are fully paid for by KAUST. Insurance premiums in the Global Plan are subsidized by KAUST -your portion of the premium would be paid for through payroll deduction. All medical and dental services will be provided through a network of external providers. For your convenience and peace of mind, both plans provide for Out-of-Kingdom medical coverage worldwide. In addition, the plans will handle direct payment to the provider or reimburse the costs for care provided, within the plan limits. Employees should carefully review the plan booklets provided or contact the service provider to fully understand the plan coverage and the limits before arranging any kind of medical treatment or service.

Coverage Overview

The Medical and Dental Plans described in the following pages are intended to help pay for defined medical expenses. You should carefully consider your household’s requirements and determine which option best fits those needs. This coverage is available to active employees and dependents who meet the Plan’s eligibility requirements.

Dual Coverage

If both you and your spouse work for KAUST, neither of you may be covered as both an employee and a dependent at the same time under the KAUST Medical Plan. If both an employee and their spouse work for KAUST and have one or more dependent children, they may be covered by either you or your spouse, but cannot be covered as a dependent by both of you at the same time.

Standard Plan — BUPA Arabia Healthcare and Dental Plan

The BUPA Arabia Medical and Dental plan is provided by KAUST at no cost to the plan participants. The plan provides healthcare coverage for employees and their family members residing permanently in Saudi Arabia.

Standard Plan — BUPA Arabia

Plan

Premiums

Deductibles

Medical Plan Dental Plan

KAUST Paid

Per Plan for Services

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Health

Optional Plan — BUPA Global Healthcare and Dental Plan

The BUPA – Global Plan is a “shared costs” healthcare structure, whereby the cost of the plan is shared between the University and enrolled participants. The plan provides coverage for those employees with family members residing either in or outside of Saudi Arabia. An ovwerview description of benefits and coverage levels are shown in the charts below.

Plan Cost

Optional Plan — BUPA Global

Plan

Premiums

Deductibles

KAUST / Employee 80% / 20% KAUST / Employee 80% / 20%

Per Plan for Services

Medical Plan

Per Plan for Services

Dental Plan

Wealth

Pension Plan All eligible employees are automatically enrolled in the KAUST Pension Plan. This plan is a cash accumulation plan in which KAUST contributes a fixed percentage of your monthly Base Salary into an account on your behalf. This fixed percentage increases based on years of service as per the table below. Your pension plan is vested after you have worked for KAUST for three years. KAUST provides two pension plans and they are maintained separately due to special requirements of each of the Employee Groups shown in the chart below.

Global Employees All other Employees

U.S. Citizens or a Resident of the U.S. (Green Card Holder) U.S. Employees

U.S. Employees – receive their pension benefits under the KAUST U.S. Employee Pension plan and it is maintained separately due to all U.S. tax law compliance requirements governing U.S. Citizens and Residents of the U.S. (Green Card holders.) Global Employees – receive their pension benefits under the KAUST Global Employee Pension plan which has the same plan design of the U.S. Employee Pension Plan minus all U.S. tax law compliance requirements.

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Wealth

The amount of your KAUST contribution in the pension increases based on the number of years of service you have with the University:

0-5 years 6-8 years 9-11 Years 12+ Years of Service

Monthly Contribution 10% of Base Salary 13% of Base Salary 15% of Base Salary 18% of Base Salary

Interest Credits

At the end of each month, you receive interest credits on your account that are based on your account value at the end of the previous month. The interest credit rate for the calendar quarter will be the average of the annual interest rates on the 30-Year U.S. Treasury bonds for the first month of the preceding calendar quarter. For example, if the average interest rate in January was 4%, the Plan interest rate for April, May and June will be 4%

Severance Offset

Your entitlement to severance under the Saudi Labor Lawwill be reduced by any benefits received from this Plan.

Receiving your Benefit Global Pension Plan:

Once you are vested, you can begin to receive your benefit payment from the Plan at any time after you leave KAUST. You will receive your benefit as a lump-sum payment. US Pension Plan: You can begin receiving payments from the Plan at any time after you leave KAUST, once you are vested, whether you terminate or retire. If you retire, you can: • Have your benefit paid immediately as a lump sum • Begin receiving monthly annuity payments • Leave your Cash Balance Account in the Plan until a later date • Roll over your Cash Balance Account into another qualified retirement plan or IRA • Transfer your Cash Balance Account into your KAUST U.S. Employee Savings Plan account.

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Wealth

If you continue to work past the age of 60 , you will continue to receive benefit credits and interest credits until you retire. If you leave KAUST upon vesting , you are entitled to receive the full value of your Cash Balance Account. You may: • Roll it over into another employer’s qualified retirement plan or IRA • Roll it into the KAUST U.S. Employee Savings Plan • Leave it in the Plan to continue earning interest at the same rate as if you were still employed • Take it as a taxable lump-sum payment • Convert it to any of the annuity options available in the Plan You must complete and return the election forms at least 30 days before the date you want to retire/leave to work elsewhere or your payment may be delayed. Regardless of whether you are single or married, if the total value of your Cash Balance Account is $1,000 or less, you will receive a single lump-sum payment of your entire Cash Balance Account. If the value of your Cash Balance Account is more than $1,000, you will be able to choose from several payment options. Applying for benefits Your options include: • Single life annuity . You will receive a monthly benefit payment until you die. • Joint and survivor annuity . You receive a reduced monthly benefit payment until you die. After you die, your surviving beneficiary receives 100%, 75%, or 50% or your benefit depending on which percentage you elect. • Lump-sum payout . You receive a single cash payout of the entire value of your Cash Balance Account, with no further benefits to follow. You are responsible for reporting any payments you receive from the Plan as taxable income on your annual federal, state and local tax returns. You are also responsible for paying all applicable taxes. If you elect to have your Plan benefit paid as an annuity, you will need to complete a federal tax withholding election. IRS regulations require that your employer withhold 20% of your taxable lump-sum distribution against the income taxes you may owe. You can avoid this withholding by rolling over this taxable amount to an IRA, another employer’s qualified plan or the KAUST U.S. Employee Savings Plan. If you receive a lump-sum payment before you reach the age of 59 ½ , you may also be subject to an additional 10% early withdrawal penalty tax, which you must pay when you file your tax return. Keep in mind that the amount withheld may not represent your actual tax liability. Before making any decisions regarding the form or timing of your payments, you should consult a tax professional. Your payment options What you should know about taxes

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Wealth

Savings Plan Eligible employees of the University will be able to take advantage of our generous Savings Plan in which KAUST matches your contributions up to a maximum of 10 percent of your monthly Base Salary. This is a voluntary contributory savings plan. If you chose to participate your individual contributions and KAUST matching contributions will be deposited into an account which is managed by a third party financial institution. You decide how you would like that account to be invested through that institution. Your account is fully vested from the first day and it is guaranteed to be distributable only to you or your beneficiary upon retirement or separation from the University. KAUST provides two voluntary savings plans, although identical in design, they are separate due to U.S. tax law governing U.S. citizens. Eligible employees may enroll into the plan based on the chart below.

Global Employees Svings Plan Saudi Nationals and All Other Employees

U.S. Citizens or a Resident of the U.S. (Green Card Holder) U.S. Employees Savings Plan

US citizens and US Green Card holders: Employees who are subject to US income taxation are segregated into a separate savings plan which conforms to special US tax regulations known as a “401(k) plan.” If you are a US citizen or Green Card holder please consult with your personal financial advisor for more details. A 401(k) Plan has certain annual contribution limitations with which KAUST fully complies. For more information, you can visit the Internal Revenue Service website ( www.IRS.gov ). ►

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Contribution Example

The chart below provides a simple illustration of how the plan account grows based on the employee’s contribution percentage level and KAUST’s matching percentage contributions.

This sample is based on an annual benefit base salary of $100,000. Annual Benefit Base Salary: $100,000 Monthly Salary: $8,333

Employee Monthly Contribution

KAUST Monthly Matching Contribution

Total Savings Monthly $166.67 $333.33 $500.00 $666.67 $833.33

Combined Annual Employee Savings

%

Months

Investment Returns

1% 2% 3% 4% 5% 6% 7% 8% 9%

$83.33 $166.67 $250.00 $333.33 $416.67 $500.00 $583.33 $666.67 $750.00 $833.33 $1,250.00

$83.33 $166.67 $250.00 $333.33 $416.67 $500.00 $583.33 $666.67 $750.00 $833.33 $833.33

12 12 12 12 12 12 12 12 12 12 12

$2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $25,000

* * * * * * * * * * *

$1,000.00 $1,166.67 $1,333.33 $1,500.00 $1,666.67 $2,083.33

10% 15%

* Special Note: The example does not take into consideration any future salary increases or investment returns.

The chart below is a simple illustration of how your plan will increase in value throughout your career at a 10% contribution rate.

Years of Service

Percentage Contributed

AnnualEmployee Contribution

AnnualKAUST MatchingContribution

Aggregate Savings

0 1

10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

$10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00

$10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00

$20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00 $140,000.00 $160,000.00 $180,000.00 $200,000.00 $220,000.00

2 3 4 5 6 7 8 9 10

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Wealth

Investment The Plan is designed to help you meet your financial needs during your retirement years. When you participate in the Plan, you choose how your assets are invested in your account.

Rollovers

KAUST allows you to roll over your assets from another employer’s retirement plan into the KAUST Employee Savings Plan. Your assets will be credited to your Rollover Account and will be invested according to your directions. To make a direct rollover, please contact your Human Resources Benefits Representative at Benefits@kaust. edu.sa

Accessing your account

Once your account is established you will be able to access and manage it yourself through a secure website. You will be able to:

• See the balance of your account and contributions paid in • Designate how you want your contributions invested

• Move your assets between the various investments available in the plan • See the rate of return you are gaining from your fund investments • View and print quarterly statements • Change your password Savings Plan U.S. Employees For More Information: For information about the KAUST Savings Plan and the fund

investment options that will be available to you, you can visit: • US Savings Plan: http://kaustus.vanguard-education.com • Global Savings Plan: www.kaustpension.com ►

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Wealth

In-ServiceWithdrawal

Global Savings Plan: If you have at least 5 years of service with KAUST you will able to request a withdrawal of up to 100% of your employee contribution accounts in the plan. The amount that you request can be for any reason and can include the gains on your accounts. Once your first withdrawal is processed, you are able to request another withdrawal every three years thereafter. If you are invested in Vanguard funds, the Trustee will liquidate enough of your investments to meet your request. You may also request withdrawal from the University Contributions (Matching) Account fromtheSavings Plan. This request is subject to reviewandapproval by theKAUST Savings and Pension Investment Committee based on the following criteria: a. You have 5 years of service (or more) with KAUST. b. You’ve already taken your Employee Account from the Savings Plan. c. You need to withdraw the Matching Account to meet a specific Financial Hardship. These include: i. The purchase or maintenance of a primary residence US Savings Plan: The Internal Revenue Service (IRS) has very strict rules concerning withdrawals from your retirement plan before you retire. If you have been a participant in the US Employee Savings Plan for at least 5 years you will be able to request a withdrawal of your University Account for any reason. Also, if you have a specific financial hardship you will be able to request a withdrawal from your employee Deferred Account. This amount is limited, however, to the sum total of all of the contributions you have made to the plan and cannot exceed the financial need. Your financial hardship must be immediate. The IRS considers the following to be acceptable hardship situations: a. Certain expenses incurred or necessary for medical care, for you or your spouse or dependents; b. The purchase (excluding mortgage payments) of your principal residence; c. Payment of tuition and related educational fees for the next 12 months of post-secondary education for you or your spouse or dependents; d. The need to prevent the eviction of you from your principal residence (or a foreclosure on the mortgage on your principal residence); e. Payments for burial or funeral expenses for your deceased parent, spouse, children or dependents; or, f. Expenses for the repair of damage to your principal residence that would qualify for the casualty deduction. If you are over the age of fifty nine and half you will be able to request a withdrawal of your entire balance in all accounts. Always remember that you are responsible for your own taxes and any withdraw from your savings plan is taxable as regular income and is not includable in the foreign income exclusion. If you receive a withdrawal prior to age of fifty nine and half you will have to pay a 10% penalty tax for a pre-mature distribution. ii. Excessive medical expenses iii. University/College tuition

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Wealth

Distribution Options After Separation

Global Savings Plan: When you leave the University for any reason, you will receive a single lump-sum payment. You may designate the currency of your distribution as well as the country to which you would like your distribution sent. You are eligible to receive your vested account balance upon retirement, termination of employment or total and permanent disability. There are some important financial considerations you should think about when making a decision about your account. You should consult with your financial adviser before making any decisions. US Savings Plan: You are eligible to receive your account balance upon retirement, termination of employment or becoming totally and permanently disabled. Depending on the amount of your balance, you may be able to leave it in the Plan until you reach age 70½. Or you can: • Receive it as a lump-sum cash payment • Roll it over to another employer’s eligible plan or an IRA * Tax implications: You will be responsible for paying any applicable federal, state, local, or foreign taxes on a distribution. To the extent required by law, Vanguard will make the appropriate withholding for tax purposes.

Insurance

Life Insurance While working at the University you will be eligible for free Life Insurance. This insurance provides two times your annual Base Salary to your designated beneficiaries, up to a maximum insured value of $1 million, in the event of your death while employed by the University. Accidental Death and Dismemberment In addition, you are also be eligible for free Accidental Death and Dismemberment Insurance (AD&D). The AD&D benefit provides two times your annual Base Salary to your designated beneficiaries, up to a maximum insured value of $1 million, in the event of your accidental death while employed by the University. It also provides other monetary benefits for accidental dismemberment.

Disability

Long-term Disability Benefit KAUST provides a long-term disability benefit to ensure continuation of your salary, if you are unable to work because of a disability during your employment at the University.

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