Chesapeake Energy Corporation 2014 Benefits …In this brochure, we’ve outlined our company...

Chesapeake Energy Corporation

2014 Benefits Enrollment Manual

Enrollment Is EasyAll full-time, regular employees (those normally working a

minimum of 30 hours per week) are eligible to participate

in benefits on the first day of employment.

Follow these easy steps to take advantage of the great

benefits at Chesapeake:

REVIEW your plan options and costs in this

Benefits Enrollment Manual.

DECIDE which benefit options you want to update

or elect.

ENROLL through the HR Service Center at

877-777-4068 or extension 54612 if calling

internally, or through Employee Self-Service

(ESS) on MyCHK.

CONFIRM your elections. At the end of your

enrollment period, you will receive a confirmation

statement via email or mailed to your address on

file. Review your confirmation statement carefully

and notify the HR Service Center if anything needs

to be changed.

2014 BENEFITS ENROLLMENT MANUAL

In this brochure, we’ve outlined our company benefits including health, dental, vision care, life insurance and disability options, as well as our industry-leading 401(k) plan. If you are new to Chesapeake, take a few moments to look through this manual for the number of benefit options that are awaiting you. Experienced employees can refer to the New for 2014 section for changes to this year’s plans.

2

2014 Benefits

Have Questions or Need Help?Contact the HR Service Center

» Internally at ext. 54612

» 877–777–4068

» [email protected]

Table of Contents New for 2014 3

Eligible Dependents 3

Medical Plan 4

Prescription Drugs 5

Dental Plan 6

Vision Plan 7

Benefits at a Glance Tables 8

Flexible Spending Accounts 10

Enrollment Changes 12

Disability 13

Life Insurance 14

Excess Liability Insurance 16

401(k) Plan 17

2014 Paid Time Off 18

Other Benefits 19

Contacts 20

mailto:hr%40chk.com?subject=

Chesapeake recognizes the importance of maximizing employee benefits while managing increasing costs. Additionally, we are taking all necessary steps to comply with health care reform laws going into effect this year. With these goals in mind, the following changes will become effective January 1, 2014:

2014 BENEFITS ENROLLMENT MANUAL 3

New for 2014

1 There will be no pre-existing limitations on the Chesa-

peake Medical Plan, regardless of age. This means your

medical claims will not be denied or delayed because of

any pre-existing condition.

4 Due to rising health insurance costs, the surcharge for

employees who use tobacco will increase to $75 per

month. A nontobacco user is defined as someone who

has not smoked a cigarette, cigar, pipe or any other

tobacco or nicotine product and not used smokeless

tobacco products such as snuff, plug or chew, within

the prior six months.

5 For the health reimbursement account and the 70/50

PPO plan options, employee premiums will not increase.

The 80/60 plan option will experience a 10% increase

in premiums.

6 Employee premiums for the basic vision plan will not

increase. However, there will be an increase to the premi-

ums for all tiers of coverage for the premium coverage.

2 Dependents can be covered up to age 26 regardless of

their eligibility for insurance through another employer.

3 Eligible employees and their family members will have eas-

ier access to Best Doctors through an online portal. You

will be able to get an in-depth medical review, ask basic

questions about your health condition and find a doctor for

any condition, all at no cost to you. For more information

call 866-904-0910 or visit members.bestdoctors.com.

Eligible Dependents» Your spouse is eligible for coverage unless you are divorced or legally separated

(documentation proving a legal marital relationship is required). Common-law

spouses are not recognized as eligible dependents.

» You will not be able to cover your spouse if he or she is eligible for coverage

under another employer-sponsored group health plan. This does not apply to

the dental plan.

» Children can be covered until the age of 26.

» A copy of an official state-issued birth certificate is required for all dependent

children. Guardianship or verification of incapacitation is required when applicable.

Please contact the HR Service Center for any additional eligibility questions.

The Chesapeake Medical Plan is considered a grandfathered plan under health care reform laws. Therefore, certain coverage rights do not apply to this plan. To learn more about grandfathered plans, please visit healthcare.gov. For coverage levels, please refer to Benefits at a Glance on Page 8 of this manual.

https://members.bestdoctors.com/Login.aspx

https://www.healthcare.gov


HRA Option (In-network benefit level)

The HRA is a medical coverage option that allows Ches-

apeake to fund the first $1,000 for employee deductible

and out-of-pocket expenses ($2,000 for family), before

you pay for medical care. An HRA is funded at the begin-

ning of your enrollment period with a predetermined dollar

amount (prorated if beginning coverage any time other

than January 1). When medical expenses occur, they

will first be paid out of the HRA funds that have been

set aside for you by Chesapeake. After the account is

depleted, you will be responsible for expenses until your

deductible is met ($1,750 individual/$5,250 family).

When the deductible is met, expenses will be paid at 70%

until you reach your $3,000 individual/$9,000 family

annual out-of-pocket maximum.

HRA details:

» Office visit co-pays do not apply toward the deductible

or out-of-pocket maximum; therefore, it will not be paid

by the HRA.

» Allowable amounts will be paid out of the HRA until

depleted and credited toward your deductible and out-

of-pocket maximum as if you had made the payment.

» If you enroll in the HRA option during the year, the

allowance will be prorated based on the months re-

maining in the plan year.

» If you do not use your entire HRA balance, any unused

funds will roll over to the next plan year if you stay in

the HRA option. At this time, there is no cap on the

amount you can accumulate in the HRA account.

» Your HRA funds are separate from your dental and

prescription coverage. Claims for these benefits will

not be deducted from your HRA.

Traditional PPO Plans We offer two traditional PPO medical plans, an 80/60 and

a 70/50 plan. In the first, claims are paid at 80% of the

co-insurance level after deductible. In the other, claims are

paid at the 70% co-insurance level.

See the Benefits at a Glance section on Page 8 of this

manual for additional medical coverage information and

plan designs.

Wellness benefits covered under the medical plan

Chesapeake wants to encourage employees to live

well. You and your enrolled dependents can have the

following expenses paid at 100% (of the allowable charge)

by the plan:

» Adult immunizations — flu shots, shingles

vaccinations, etc.

» Bone density screenings

» Heart scans

» Well child care

» Routine physicals

» Mammogram screenings

» Prostate cancer screenings

Medical Plan

Medical coverage is offered through Blue Cross/Blue Shield of Texas (BCBSTX). You have three medical plan options from which to choose — a health reimbursement account (HRA) option and two traditional PPO options.

This list is not all-inclusive. If you have questions regarding a specific procedure that may be covered by the medical plan, please email [email protected].



Prescription Drugs

Participants can purchase over-the-counter (OTC) proton pump inhibitors (PPI) such as Prilosec OTC or Zegrid OTC

for a $5 co-pay with a doctor’s prescription. All other OTC medications are not covered by the prescription plan.

SCRIPT CARE PRESCRIPTION DRUG COVERAGE

Option Generic Preferred Brand Name Non-preferred Brand Name

Retail (30 day) $10 $40 $70

Retail (90 day) $30 $120 $210

Mail Order (90 day) $20 $80 $140

For a complete list of preferred brand-name drugs or more information about your prescription benefits, please call Script Care at 800-880-9988 or visit scriptcare.com.

Tobacco UseThe plan requires a $75 monthly fee for employees who are tobacco

users, which encourages a healthier lifestyle. Nontobacco users are

defined as those who have not smoked a cigarette, cigar, pipe or any

other tobacco or nicotine product, and not used smokeless tobacco

products such as snuff, plug or chew within the prior six months.

If you are currently a tobacco user, the tobacco-use fee can

be waived with the successful completion of a tobacco cessation

program or by stopping tobacco use for six months. You will be

required to provide proof of tobacco cessation class attendance.

If you have ceased using tobacco products by a method other than

those listed, a signed affidavit must be submitted to the HR Service

Center. Contact [email protected] or 877-777-4068.

http://scriptcare.com


Dental Plan

Employees can choose to enroll in the dental plan regardless of their enrollment in the Chesapeake Medical Plan. You may use any dental provider you choose. However, if you use a BCBSTX network dentist, you may experience lower out-of-pocket expenses.

PLAN PROVISIONS DENTAL BENEFITS

Calendar Year Deductible Per covered individual

$50

Annual Benefit Maximum Does not apply to orthodontic services

$2,000 per covered member

Diagnostic and Preventive CareExamples: dental exams, cleanings, X-rays and fluoride treatments

100% of allowable amount — no deductible

Miscellaneous Services Examples: lab tests and emergency treatment to relieve dental pain

100% of allowable amount — no deductible

Restorative Services Examples: fillings and extractions

80% of allowable amount after deductible

General Services Examples: general anesthesia and nitrous oxide


Endodontic Services Examples: root canal and direct pulp cap


Periodontal Services Examples: scaling and root planing


Oral Surgery Services Examples: alveoplasty and surgical tooth extractions not covered under health plan benefit


Crowns, Inlays or Onlays 50% of allowable amount after deductible

Prosthodontic Services Examples: bridges and dentures


Implant Services 50% of allowable amount after deductible

Orthodontics$3,000 lifetime benefit


Wisdom Teeth Removal If impacted, the removal will be considered a medical procedure and processed under your medical benefits



Vision Plan

Vision insurance is offered through the VSP vision plan. By enrolling in the VSP plan through Chesapeake, you and your dependents will receive value and savings on eye exams and eyewear. VSP has one of the largest networks of providers throughout the U.S. To find a provider near you, visit vsp.com or call 800-877-7195.

Basic Coverage (from a VSP Preferred Provider)

WellVision® Exam Focuses on your overall eye health and wellness » $10 co-pay, every calendar year

Prescription Glasses

Lenses» $10 co-pay, every calendar year» Single vision, lined bifocal and trifocal lenses» Polycarbonate lenses for dependent children

Frames» $150 allowance for frames of your choice» 20% off any out-of-pocket amount

– OR –

Contact Lenses» No co-pay, every calendar year» $210 allowance for contact lens» $50 co-pay for contact lens exam (fitting and evaluation)

Monthly Rate

Employee Only .....................................................$9.62Employee + Spouse .............................................$17.50Employee + Child(ren) ...........................................$18.36Employee + Family ................................................$28.32

Extra Savings and Discounts (applies to both plans)

Glasses and Sunglasses» Average of 35 – 40% savings on all non-covered

lens options

» 30% off additional glasses and sunglasses, including lens options from any VSP doctor within 12 months of your last WellVision Exam

Contacts» 15% off regular contact lens exam

Laser Vision Correction Average of 15% off regular-price procedures or 5% off promotional price (discounts are only available at contracted facilities).

Premium Coverage (from a VSP Preferred Provider)

WellVision® Exam Focuses on your overall eye health and wellness» $5 co-pay, every calendar year

Prescription Glasses

Lenses» $10 co-pay, every calendar year» Single vision, lined bifocal, trifocal and progressive lenses» Polycarbonate lenses for dependent children

Frames» $150 allowance for frames of your choice» 20% off any out-of-pocket amount

– AND –

Contact Lenses» No co-pay, every calendar year» $400 allowance for contact lens» $50 co-pay for contact lens exam (fitting and evaluation)

Monthly Rate

Employee Only .....................................................$25.90Employee + Spouse .............................................$47.20Employee + Child(ren) ...........................................$49.50Employee + Family ................................................$76.38

Please note, no cards are issued for vision insurance.

https://vsp.com

IN NETWORK OUT OF NETWORK

HRA 70/50 80/60 HRA 70/50 80/60

CALENDAR YEAR DEDUCTIBLE

Individual Deductible $1,750 $1,000 $500 $4,500 $3,000 $1,000

Family Deductible Maximum $5,250 $3,000 $1,500 $9,000 $9,000 $3,000

MAXIMUM OUT-OF-POCKET PER CALENDAR YEAR (DOES NOT INCLUDE CO-PAYS OR DEDUCTIBLE)

Individual $3,000 $3,000 $2,000 $5,000 $5,000 $4,000

Family — 3x Individual $9,000 $9,000 $6,000 $10,000 $15,000 $12,000

Benefit Allowance — HRA ONLY$1,000

Individual$2,000 Family

none none$1,000

Individual $2,000 Family

none none

WELLNESS AND IMMUNIZATIONS

Immunizations

100% 100% 100%100%

(of allowable amount)

100%(of allowable

amount)

100%(of allowable

amount)

Well Child Care

Routine Physical

Prostate Cancer Screening

Mammogram Screening

Colonoscopy

Well Woman and Well Man Visit

INPATIENT

Hospitalization (inpatient)HRA allowance then 70% after

deductible

70% after $180

co-pay and deductible

80% after $180co-pay and deductible

HRA allowance then 50% after

deductible



Inpatient Mental Health/Chemical Dependency

Maternity Services: Maternity Admissions

OUTPATIENT

Physician Office Visit (for illness and injury, includes lab and X-ray)

100% after $25 co-pay




deductible

50% after deductible


Specialist Office Visit Co-pay 100% after $30 co-pay



Outpatient Surgery (in surgical facility or doctor’s office)


deductible

70% after de-ductible

80% after de-ductible

MRI, CT Scan, PETSCAN, Lithotripsy, Sleep Study, etc.

Office Visit — Mental Health/Chemical Dependency 100% after $25 co-pay



Emergency Room Services (co-pay waived if admitted)HRA allowance then 70% after

deductible




deductible



OTHER EXPENSES

Allergy Shots (injections) 100% 100% 100%HRA allowance then 50% after

deductible



Infertility Treatment (infertility services for artificial reproductive technology has a $25,000 lifetime maximum)


deductible




deductible



Skilled Nursing (100 days per calendar year) Home Health Care with Preauthorization (100 visits per calendar year)


deductible




deductible



Hospice Care

Durable Medical Equipment and Prosthetics

Physical and Occupational Therapy

Hearing Aids — Ages 18 and Over (maximum $4,000 benefit every four years)

TMJ Diagnostic Services and Surgery, Splints

Chiropractic Including Manipulation TherapyHRA allowance then 80% after

deductible




deductible



Benefits at a Glance



2014 Medical and Dental Options and CostsPlease review the options and the costs listed below to make decisions that will best meet the needs of you and your family.

Medical/Prescription*

2014 MONTHLY RATES

WITH SPOUSE HRA 70/50 80/60 EMPLOYEE AND CHILDREN HRA 70/50 80/60

Employee (EE) Only $39 $66 $164 EE + 1 Child $169 $267 $488

EE + Spouse $197 $296 $520 EE + 2 Children $196 $308 $546

EE + Spouse + Child $224 $337 $578 EE + 3 Children $218 $348 $603

EE + Spouse + 2 Children $246 $377 $635 EE + 4 Children $245 $389 $660






EE + Spouse + 8 Children $379 $621 $978 EE + 10 Children $373 $633 $1,004

EE + Spouse + 9 Children $401 $661 $1,036 EE + 11 Children $395 $673 $1,061



EE + Spouse + 12 Children $467 $783 $1,207

Dental

2014 MONTHLY RATES

Employee (EE) Only $19

EE + 1 Dependent $22

EE + 2 Dependents $25












*Rates do not reflect Wellness Premium discount.

Wellness Premium DiscountEmployees and spouses who participated in the CHK Health

Check during 2013 will each receive a $25 wellness discount

on their monthly medical plan premium during 2014. Newly

enrolled employees and their spouses will qualify for the Well-

ness Premium Discount by completing the CHK Health Check

within 60 days of being covered by the plan.

The purpose of the wellness discount is to encourage

participation in the CHK Health Check and promote healthier

lifestyles. The annual completion of the CHK Health Check is

required to retain the Wellness Premium Discount.


Flexible Spending Accounts

Our medical expense and dependent care reimbursement

accounts are administered by PayFlex. You can visit

healthhub.com for more information.

Medical Expense Reimbursement AccountYou can realize significant tax savings on qualified medical

expenses that are not covered by your insurance by

contributing up to $2,500 per year to a medical expense

reimbursement account.

Qualifying expenses include:

» Deductibles, co-pays and co-insurance payments

» Prescription drug co-pays

» Vision care, laser eye surgery, eyeglasses and

contact lenses

» Unreimbursed dental or orthodontic care

» Over-the-counter medications can be reimbursed only

when prescribed by a doctor

Eligible 2014 medical expenses must be incurred be-

tween January 1, 2014, and March 15, 2015. Receipts

for reimbursement must be received by PayFlex by

March 31, 2015.

For a complete list of eligible and ineligible expenses, visit healthhub.com.

Sign up for a medical expense or dependent care reimbursement account to set aside tax-free dollars to cover expenses that are not reimbursed by your medical insurance or other sources.

Dependent Care Reimbursement Account Child care expenses can add up quickly. By contributing to

a dependent care reimbursement account, you can pay for

child or adult day care with pre-tax dollars.

» $5,000 per year maximum contribution; to be eligible

to use the account, you (and your spouse, if you are

married) must both work outside the home or your

spouse must either be disabled or a full-time student.

Eligible dependents include:

» Children under the age of 13

» Disabled dependents of any age that live with you

(such as your disabled spouse, older child or parent)

What expenses are not covered?

» Care for children 13 years or older

» Care provided by your spouse or your dependent under

the age of 19

» Day care providers for which you do not furnish the em-

ployer identification number or Social Security number

» Expenses that are primarily educational, including

private school tuition for kindergarten or higher grades

» Overnight camp expenses (day camp expenses are

generally eligible)

» Housekeeping expenses unless incidental to the

child care

» Child care expenses, if your spouse is not employed,

a full-time student or disabled

Eligible 2014 dependent care expenses must be incurred

between January 1, 2014, and December 31, 2014.

Receipts for reimbursement must be received by PayFlex

by March 31, 2015.

http://healthhub.com


Figuring Flexible Spending Account (FSA) ContributionsUse the FSA savings calculator at healthhub.com to:

» Estimate unreimbursed health and dependent care expenses

» Estimate your annual increase in spendable income if you should choose to participate in the FSA plan

Important! If you terminate employment with Chesapeake during the year, only charges incurred while you are an active employee are eligible for reimbursement unless you continue to participate through COBRA (for the medical expense reimbursement account only).

Here is an example of how much you can save in taxes by participating in the FSA accounts, assuming a 20% tax rate:

Tax-free Dependent Care Reimbursement Account $5,000

Tax-free Medical Expense Reimbursement Account $2,000

Total $7,000

Assumed Overall Tax Withholding Rate 20%

Amount of Tax That Will Not Be Withheld $1,400

This amount stays in your paycheck — not withheld for taxes.

ReimbursementAs you incur health and/or dependent care expenses, you can submit a claim for reimbursement by:

» Filing online at healthhub.com via express claims

» Completing a paper claim and fax or mail to PayFlex

» Choosing the auto-pay option. The auto-pay feature automatically reimburses you for qualified expenses. This feature

is available only for medical, dental and pharmacy co-pays, as well as costs paid toward deductibles and co-insurance.

A claim must be submitted for any other expenses. Note, this feature is only for those enrolled in the medical or

dental plans.

Reimbursements from PayFlex are sent by check or can be direct deposited into your bank account.

Visit healthhub.com to check your account balance, use the FSA calculator or find other helpful material.

Important Notes on FSA» You must re-enroll every year.

» You must use your account balance by the deadline each year. Unused funds are forfeited.





Enrollment Changes

If you have a qualified family status change you may be able to make changes to your benefits enrollments or coverage for your eligible dependents.

You can change your coverage tier for your medical plan and

dental plan enrollment, but you cannot change your plan

option (80/60, 70/50 or HRA) during the year. The change

must be reported to the HR Service Center by completing

a change-in-election form within 30 days of the qualifying

event. The following family status changes will allow enroll-

ment changes if they are consistent with the event:

» Marriage, divorce or legal separation

» Death of a spouse or dependent

» Termination of a spouse’s employment

» Loss of other coverage qualifying individuals for special

enrollment rights

» Change from full-time to part-time employment status

or vice versa

» A dependent child ceases to be an eligible dependent

» Birth, adoption, placement for adoption or a dependent

child becomes an eligible dependent

Coverage changes will not be effective until received

by the HR Service Center. In some cases, changes in

coverage will not become effective unless you are actively

at work. Contact the HR Service Center for more details

about deadlines for changes in coverage.

If you do not notify and return the required documents

to the HR Service Center within 30 days of the status

change, the request will not be effective until the calendar

year following the next open enrollment period. If you have

a family status change that results in lower premiums but

do not report the change within 30 days of the effective

date, excess premiums cannot be refunded.

Documents required to add dependents:

1. Marriage certificate

2. Official birth certificate for children (hospital certificate

not acceptable)

3. Verification of prior insurance coverage

Documents can be emailed to [email protected] or faxed to

877-778-1408.

Have Questions or Need Help?Contact the HR Service Center

» Internally at ext. 54612

» 877–777–4068

» [email protected]




Disability

Short-Term DisabilityThere is a zero-day waiting period for injuries and a five-day

waiting period for illness. Benefits are paid out according

to the chart below. This benefit is provided at no cost to

employees:

Chesapeake Years of Service

100% of Base Pay 70% of Base Pay

0 – 2 years 0 weeks 26 weeks




21+ years 26 weeks 0 weeks

Long-Term Disability60% of base salary up to $20,000 per month; there is

a 180-calendar-day waiting period. You have two options

for long-term disability.

Taxable option (default)

» Chesapeake pays the entire premium, which is not

considered taxable income.

» If you become disabled and qualify for long-term

disability, it will be treated as taxable income.

Non-taxable option

Chesapeake makes the same contribution for the

premium as for the taxable option.

» You make a small contribution to the premium.

» Chesapeake’s contribution is taxable income.

» If you become disabled and qualify for long-term

disability, it will not be treated as taxable income.

Examples of premium amounts paid by you on the

non-taxable option based on monthly salary levels:

Monthly Salary Employee Share of the Premium

Chesapeake Share of the Premium

$2,000 $0.60 $4.96

$4,000 $1.20 $9.92

$6,000 $1.80 $14.88

$8,000 $2.40 $19.84

For life insurance and disability, the active work clause

applies. If you are not actively working on the day before

the scheduled effective date of your insurance or increase,

your insurance or increase will not become effective until

the day after you complete one full day of active work as

an eligible member.

Chesapeake provides the following company-paid disability benefits:


Basic LifeChesapeake provides group term life in the amount of

two times annual earnings as defined by the life insurance

provider. This is provided by Chesapeake at no cost to you.

The Internal Revenue Service (IRS) requires the value

of employer provided group term life insurance in excess

of $50,000 be included in the gross income of a covered

employee. Company-paid premiums for the amount of

coverage over $50,000 are taxable for federal income tax,

FICA and state income tax, if applicable.

Supplemental LifeEmployee supplemental life

You may apply for up to $500,000 in supplemental life

insurance for yourself when first eligible without providing

evidence of insurability. For any enrollments or increases

to coverage made after initial eligibility, evidence of insur-

ability will be required to show proof of good health.

Spouse supplemental life

You may apply for up to 50% of your elected supplemental

life coverage for your spouse, up to $250,000. Approval

is guaranteed for up to $75,000 during the initial enroll-

ment period. Amounts that total more than $75,000, and

enrollments after initial eligibility, are subject to review

and require evidence of insurability.

Child supplemental life

Your dependent child is eligible for supplemental life

insurance until his or her 26th birthday, regardless of

marital status, student status and financial dependence.

This includes adopted children and stepchildren living

in your home.

You may elect child supplemental life regardless

of your enrollment in supplemental life up to $10,000.

The premium is the same regardless of the number of

children covered.

When both spouses are Chesapeake employees:

» An employee cannot be covered under another employ-

ee’s supplemental spouse policy. Each must have their

own employee supplemental life insurance policy.

» Only one employee can cover their children in child

supplemental life.

Reductions in insurance coverage for employee and

spouse occur at:

» Age 65 – 69 (65%)

» Age 70 – 74 (50%)

» Age 75 and over (35%)

Life Insurance


Bi-Weekly Rates for Employee (24 Pay Periods)

Coverage $25,000 $50,000 $75,000 $100,000 $150,000 $200,000 $300,000 $400,000 $500,000

<30 $0.88 $1.75 $2.63 $3.50 $5.25 $7.00 $10.50 $14.00 $17.50

30 – 34 $1.00 $2.00 $3.00 $4.00 $6.00 $8.00 $12.00 $16.00 $20.00

35 – 39 $1.25 $2.50 $3.75 $5.00 $7.50 $10.00 $15.00 $20.00 $25.00

40 – 44 $2.25 $4.50 $6.75 $9.00 $13.50 $18.00 $27.00 $36.00 $45.00

45 – 49 $4.13 $8.25 $12.38 $16.50 $24.75 $33.00 $49.50 $66.00 $82.50

50 – 54 $6.50 $13.00 $19.50 $26.00 $39.00 $52.00 $78.00 $104.00 $130.00

55 – 59 $10.75 $21.50 $32.25 $43.00 $64.50 $86.00 $129.00 $172.00 $215.00

60 – 64 $15.25 $30.50 $45.75 $61.00 $91.50 $122.00 $183.00 $244.00 $305.00

Coverage $16,250 $32,500 $48,750 $65,000 $97,500 $130,000 $195,000 $260,000 $325,000

65 – 69 $17.14 $34.29 $51.43 $68.58 $102.86 $137.15 $205.73 $274.30 $342.88

Coverage $12,500 $25,000 $37,500 $50,000 $75,000 $100,000 $150,000 $200,000 $250,000

70 – 74 $19.69 $39.38 $59.06 $78.75 $118.13 $157.50 $236.25 $315.00 $393.75

Coverage $8,750 $17,500 $26,250 $35,000 $52,500 $70,000 $105,000 $140,000 $175,000

75 + $25.16 $50.31 $75.47 $100.63 $150.94 $201.25 $301.88 $402.50 $503.13

Bi-Weekly Rates for Spouse (24 Pay Periods)

Coverage $12,500 $25,000 $37,500 $50,000 $75,000 $100,000 $150,000 $200,000 $250,000

<30 $0.44 $0.88 $1.31 $1.75 $2.63 $3.50 $5.25 $7.00 $8.75

30 – 34 $0.50 $1.00 $1.50 $2.00 $3.00 $4.00 $6.00 $8.00 $10.00

35 – 39 $0.63 $1.25 $1.88 $2.50 $3.75 $5.00 $7.50 $10.00 $12.50

40 – 44 $1.13 $2.25 $3.38 $4.50 $6.75 $9.00 $13.50 $18.00 $22.50

45 – 49 $2.06 $4.13 $6.19 $8.25 $12.38 $16.50 $24.75 $33.00 $41.25

50 – 54 $3.25 $6.50 $9.75 $13.00 $19.50 $26.00 $39.00 $52.00 $65.00

55 – 59 $5.38 $10.75 $16.13 $21.50 $32.25 $43.00 $64.50 $86.00 $107.50

60 – 64 $7.63 $15.25 $22.88 $30.50 $45.75 $61.00 $91.50 $122.00 $152.50

Coverage $8,125 $16,250 $24,375 $32,500 $48,750 $65,000 $97,500 $130,000 $162,500

65 – 69 $8.57 $17.14 $25.72 $34.29 $51.43 $68.58 $102.86 $137.15 $171.44

Coverage $6,250 $12,500 $18,750 $25,000 $37,500 $50,000 $75,000 $100,000 $125,000

70 – 74 $9.84 $19.69 $29.53 $39.38 $59.06 $78.75 $118.13 $157.50 $196.88

Coverage $4,375 $8,750 $13,125 $17,500 $26,250 $35,000 $52,500 $70,000 $87,500

75+ $12.58 $25.16 $37.73 $50.31 $75.47 $100.63 $150.94 $201.25 $251.56

Bi-Weekly Rates for Child(ren) (24 Pay Periods)

Coverage $2,500 $5,000 $7,500 $10,000

All ages $0.21 $0.43 $0.64 $0.85


Excess Liability Insurance

The purpose of excess liability insurance is to provide financial protection beyond the coverage limits of traditional auto and homeowner policies. Excess liability coverage is available up to $30 million and uninsured motorist coverage is available up to $10 million at affordable group rates with no individual underwriting requirements.

Excess Liability Coverage Level Annual Rate (Payroll deducted quarterly)

$1 million $239

$2 million $358

$3 million $382

$4 million $427

$5 million $472

$10 million $906

$15 million $1,169

$20 million $1,908

$25 million $2,385

$30 million $3,101

Uninsured Motorist Annual Rate (Payroll deducted quarterly)

$1 million $100

$2 million $180

$3 million $270

$4 million $360

$5 million $450

$10 million $878

Excess liability coverage required to enroll in uninsured motorist coverage.


401(k) Plan

You receive company contributions and tax advantages

when you participate, and you have choices about how

much to contribute and how you invest. Plus, putting

money into a 401(k) allows you to borrow money or

make a withdrawal for certain emergencies.

Joining the ProgramEmployees are eligible to participate in the Chesapeake

401(k) plan upon employment and attaining the age of 18.

Note: Employees who do not make an affirmative election

will have automatic contributions of 4% beginning 60 days

following the eligibility date. You may enroll on a monthly

basis after your initial enrollment period.

Contributing Your MoneyChesapeake matches 100% of the first 15% of your con-

tribution with Chesapeake stock. You may contribute up

to 75% of your base pay and up to 100% of eligible bonus

compensation, up to the annual legal limit.

» Vesting schedule is over five years. Employees vest

20% per year beginning on the anniversary of the

first year of service (i.e. 100% vested after five years

of service).

» You can increase or decrease your contributions at any

time. Requests for changes will be entered as soon as

they are received.

» You can stop your contributions at any time.

» The entire value of your contributions is yours any time

you leave the company for any reason.

Investing to Make More MoneyYou choose how to invest your account among several

investment options described in the materials provided

by the company’s 401(k) administrator, Principal Financial

Group. You can change your investment options at any

time via the Principal Financial Group’s call center at

800-547-7754 or principal.com.

Nearly all investments have risks. They can go down as

well as up in value. Generally, the more the investment is

intended for higher, long-term gains (over several years),

the more likely its value will change in the short-term

(a few days or years). Selecting a mixture of investments,

called diversification, is a well-accepted principle of reduc-

ing investment risk.

IRS rules allow you to get money out of your account

while working at the company if you:

» Borrow from your account (if you are eligible) and pay

back into your account with interest through payroll

deductions

» Make hardship withdrawals for IRS-defined

emergencies

When you leave or retire:

» The entire value of your contributions, plus vested

company contributions, is payable when you leave

the company, retire, become disabled or die.

» You may be able to delay current income taxes and

avoid IRS penalties by leaving your account in the

program or rolling it to another IRS-qualified retirement

program or Individual Retirement Account (IRA).

The Chesapeake 401(k) plan provides an opportunity for you to build a financial reserve to use when you retire.

http://www.principal.com/index.shtm

2014 Paid Time Off Information

Paid Time Off (PTO)PTO is calculated based on previous work experience.

Work experience is defined as your age at date of hire

minus 22. PTO is granted according to the company’s

granting schedule, but please note the administration of

PTO will be changing in 2015. Please reference the table

below for PTO amounts.

Years of Experience(Age – 22)

PTO Amount

0 – 2 years 96 hours (2 weeks + 2 days)



15 – 19 years 200 hours (5 weeks)


25+ years 240 hours (6 weeks)

Paid Bereavement

All employees are eligible for three days of paid bereave-

ment leave after 90 days of employment.

2014 Company Paid Holiday Schedule

There are 10 company paid holidays in 2014.

» Wednesday, January 1 – New Year’s Day

» Friday, April 18 – Good Friday

» Monday, May 26 – Memorial Day

» Friday, July 4 – Independence Day

» Monday, September 1 – Labor Day

» Thursday, November 27 – Thanksgiving Day

» Friday, November 28 – Day After Thanksgiving

» Wednesday, December 24 – Christmas Eve

» Thursday, December 25 – Christmas Day

» Wednesday, December 31 – New Year’s Eve


Other Benefits

Employee Assistance ProgramChesapeake cares about you and your family. We recog-

nize that personal problems can affect job performance by

causing stress, absence from work and difficulty focusing.

The employee assistance program offered through

ComPsych is a free, confidential counseling and referral

service that can help you and your family cope with life’s

challenges such as:

» Locating child and elder care

» Financial and legal information and referral services

» Life stages programs, including help with prenatal

planning, college financing and retirement planning

» Confidential counseling and referral services

» Access to a library of helpful articles, assessment

tools and information at guidanceresources.com,

password CHK

ComPsych services are available to all Chesapeake

employees and their immediate family members from day

one throughout your career. You do not have to be enrolled

in the Chesapeake Medical Plan to use these services.

Each person is allowed six counseling sessions per issue

per year.

You can contact ComPsych at 888-332-6327, 24 hours a day, seven days a week.

LifeLockEmployees are offered proactive, comprehensive identify

theft protection as part of Chesapeake’s benefits package.

For questions regarding your account set up, upgrading your

account or adding a family member contact 866-917-2555.

Best DoctorsEmployees and their dependents who are enrolled in

the Chesapeake Medical Plan have access to a program

called Best Doctors. This completely confidential ser-

vice can match you to a top-rated expert based on your

medical needs who can answer your questions about a

diagnosis, treatment options or supply a second opinion.

After your expert consultation, you will receive a com-

prehensive, easy-to-understand report summarizing the

specialist’s findings, which will allow you and your doctor

to take the right next steps. This free service is included

in your medical plan enrollment. For additional information,

you can contact Best Doctors at 866-904-0910.

Adoption AssistanceChesapeake provides an adoption assistance benefit

to help employees with qualified adoption expenses.

To be eligible, you must be a regular, full-time or part-

time employee (non-union), have been employed by

the company for at least one year and have worked at

least 1,250 hours in the previous 12 months. Please

contact the HR Service Center at [email protected] or visit

mychk/benefits for additional details.

Tuition ReimbursementChesapeake is committed to continuous improvement

through education and development, and supports

employees who want the same. All active, regular full-time

employees with at least one year of continuous service are

eligible to participate in the tuition reimbursement program.

Military Differential PayFull-time employees who have completed at least one year

of continuous employment and are called to active duty or

military training for 30 or more continuous days are eligible

for Military Differential Pay.


https://guidanceresources.com/groWeb/login/login.xhtml


http://www.mychk.com/Departments/Human-Resources/Benefits/Pages/Information.aspx


Contacts

HR Service Center Help DeskHR Service Center representatives are available

Monday through Friday at 877-777-4068 or

[email protected] to assist with any of your HR needs,

for example:

» Benefits enrollment and associated questions

» Retirement assistance

» Employment verifications

» General questions about paperwork relating

to wellness, leave, payroll, 401(k), stock and

family matters

Tax-free Payroll DeductionsWhen you enroll in medical and dental coverage, the

portion of the cost you pay is a tax-free deduction from

your paycheck. By paying with pre-tax dollars, you reduce

the amount of federal and Social Security taxes you pay

and pocket the tax savings. Depending on where you live

and work, your state and local income taxes may also

be reduced. This may slightly affect your Social Security

benefits. Domestic partners and their dependents will

be taxed for benefits according to current IRS guidelines.

State taxes may also be applicable. Both the amount pay-

roll deducted and the amount Chesapeake contributes are

taxable for domestic partners and their dependents.

About this information

The information in this brochure offers only a general overview. Some important details — including definitions, limitations and exceptions —

are not included. Do not use this as your only source of information in making enrollment decisions, obtaining services or claiming benefits.

For more details, see your Summary Plan Description (SPD) for medical, dental and flexible spending plans, as well as other insurance

documents. The official plan documents are used to determine how the plans work, what benefits are paid and who is eligible to receive

them. Terms used in those documents and the SPD may differ from those in this summary.

Because you voluntarily choose to participate in the Chesapeake 401(k) plan, the company does not guarantee the performance of

any investments or make up any losses. By law an offering to sell securities can only be made by an official prospectus. Because these

plans offer some tax advantages, you may wish to contact the IRS or a tax professional for advice. Chesapeake cannot advise you on tax

issues. The company reserves the right to change or end all or any part of the overall program at any time.

The plans in this manual are not an employment contract and do not guarantee continued employment.

Contact providers directly

Name Telephone Website

Blue Cross/Blue Shield Medical and Dental 877-815-4535 bcbstx.com/chkenergy

Script Care Prescription Drugs 800-880-9988 scriptcare.com

Payflex Flexible Spending 800-284-4885 healthhub.com

ComPsych Employee Assistance Program 888-332-6327 guidanceresources.com

VSP Vision 800-877-7195 vsp.com


http://www.bcbstx.com/chkenergy/

https://scriptcare.com

https://www.healthhub.com/info/what_is_HealthHub/Default.aspx

https://guidanceresources.com/groWeb/login/login.xhtml

https://vsp.com

SEPTEMBER 2014

Chesapeake Energy Corporation 2014 Benefits …In this brochure, we’ve outlined our company...

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