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term care coverage when they cannot perform two of the six activities of daily living - bathing,
dressing, toileting, transferring, continence or eating. Long Term Care may also be required
when a person has a cognitive impairment, such as Alzheimer's Disease.

This benefit will assist with the cost of skilled nursing facilities, adult daycare centers and
home health care. Full-time employees and their spouses are eligible to enroll in this voluntary
benefit. Employees have a choice of three daily benefit levels for three or five year terms. Rates
are based on age through payroll deduction.

This benefit is also extended to parents, parents-in-law, grandparents and grandparents-
in-law of employees. New employees who enroll within 31 days of employment are exempt from
medical underwriting.

U. Flexible Spending Account (FSA)

The Flexible Spending Account plan allows an employee to set aside money on a pre-tax
basis through salary reduction to pay certain expenses. The City offers its employees two types
of spending accounts: Medical Reimbursement and Dependent Care Accounts.

Under the medical reimbursement account, an employee is reimbursed for eligible health
care expenses that are not covered or reimbursed under health insurance. Typically, these
include deductibles, co-payments and uninsured expenses such as dental, vision care, and
hearing exams.
Unused funds of $500 or less may be rolled over into the next plan year.

Under a dependent care spending account, an employee can be reimbursed for qualified
dependent care expenses so that the employee may continue to work instead of having to provide
child care.

For more information on spending accounts, contact the Human Resources Department.

V. Group Health Insurance

All full-time employees and those temporary and part-time employees certified for
benefits are eligible for health insurance benefits. The City offers two different plans from
which the employee can choose: Basic or Basic Plus.

Plan descriptions explaining each plan in detail are available on Human Resources
Employee Center webpage at http://wshome.cityofws.org/wshome/departments/human-
resources/benefits.

For each plan, the City offers five categories of coverage: individual, employee/child,
employee/children, employee/spouse, and family. Insurance premiums are collected one month
in advance.

City of Winston-Salem Employee Handbook November 2014 Revision 49