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
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
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.
2014 BENEFITS ENROLLMENT MANUAL 4
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].
2014 BENEFITS ENROLLMENT MANUAL 5
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.
2014 BENEFITS ENROLLMENT MANUAL 6
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
80% of allowable amount after deductible
Endodontic Services Examples: root canal and direct pulp cap
80% of allowable amount after deductible
Periodontal Services Examples: scaling and root planing
80% of allowable amount after deductible
Oral Surgery Services Examples: alveoplasty and surgical tooth extractions not covered under health plan benefit
80% of allowable amount after deductible
Crowns, Inlays or Onlays 50% of allowable amount after deductible
Prosthodontic Services Examples: bridges and dentures
50% of allowable amount after deductible
Implant Services 50% of allowable amount after deductible
Orthodontics$3,000 lifetime benefit
50% of allowable amount after deductible
Wisdom Teeth Removal If impacted, the removal will be considered a medical procedure and processed under your medical benefits
80% of allowable amount after deductible
2014 BENEFITS ENROLLMENT MANUAL 7
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.
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
50% after $180co-pay and deductible
60% after $180co-pay and 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
100% after $25 co-pay
100% after $25 co-pay
HRA allowance then 50% after
deductible
50% after deductible
60% after deductible
Specialist Office Visit Co-pay 100% after $30 co-pay
100% after $30 co-pay
100% after $30 co-pay
Outpatient Surgery (in surgical facility or doctor’s office)
HRA allowance then 70% after
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
100% after $25 co-pay
100% after $25 co-pay
Emergency Room Services (co-pay waived if admitted)HRA allowance then 70% after
deductible
100% after $180 co-pay
100% after $180 co-pay
HRA allowance then 70% after
deductible
100% after $180 co-pay
100% after $180 co-pay
OTHER EXPENSES
Allergy Shots (injections) 100% 100% 100%HRA allowance then 50% after
deductible
50% after deductible
60% after deductible
Infertility Treatment (infertility services for artificial reproductive technology has a $25,000 lifetime maximum)
HRA allowance then 70% after
deductible
70% after deductible
80% after deductible
HRA allowance then 50% after
deductible
50% after deductible
60% after deductible
Skilled Nursing (100 days per calendar year) Home Health Care with Preauthorization (100 visits per calendar year)
HRA allowance then 70% after
deductible
70% after deductible
80% after deductible
HRA allowance then 50% after
deductible
50% after deductible
60% after 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
80% after deductible
80% after deductible
HRA allowance then 60% after
deductible
60% after deductible
60% after deductible
Benefits at a Glance
2014 BENEFITS ENROLLMENT MANUAL 8
2014 BENEFITS ENROLLMENT MANUAL 9
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 + 3 Children $273 $418 $692 EE + 5 Children $267 $430 $717
EE + Spouse + 4 Children $295 $458 $749 EE + 6 Children $289 $470 $775
EE + Spouse + 5 Children $317 $499 $807 EE + 7 Children $307 $511 $832
EE + Spouse + 6 Children $334 $539 $864 EE + 8 Children $329 $551 $889
EE + Spouse + 7 Children $357 $580 $921 EE + 9 Children $351 $592 $946
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 + 10 Children $423 $702 $1,093 EE + 12 Children $417 $714 $1,118
EE + Spouse + 11 Children $445 $742 $1,150 EE + 13 Children $439 $754 $1,175
EE + Spouse + 12 Children $467 $783 $1,207
Dental
2014 MONTHLY RATES
Employee (EE) Only $19
EE + 1 Dependent $22
EE + 2 Dependents $25
EE + 3 Dependents $28
EE + 4 Dependents $32
EE + 5 Dependents $35
EE + 6 Dependents $38
EE + 7 Dependents $42
EE + 8 Dependents $45
EE + 9 Dependents $49
EE + 10 Dependents $52
EE + 11 Dependents $56
EE + 12 Dependents $59
EE + 13 Dependents $63
*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.
2014 BENEFITS ENROLLMENT MANUAL 10
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.
2014 BENEFITS ENROLLMENT MANUAL 11
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.
2014 BENEFITS ENROLLMENT MANUAL 12
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
2014 BENEFITS ENROLLMENT MANUAL 13
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
3 – 5 years 4 weeks 22 weeks
6 – 15 years 13 weeks 13 weeks
16 – 20 years 22 weeks 4 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:
2014 BENEFITS ENROLLMENT MANUAL 14
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
2014 BENEFITS ENROLLMENT MANUAL 15
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
2014 BENEFITS ENROLLMENT MANUAL 16
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.
2014 BENEFITS ENROLLMENT MANUAL 17
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.
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)
3 – 9 years 136 hours (3 weeks + 2 days)
10 – 14 years 176 hours (4 weeks + 2 days)
15 – 19 years 200 hours (5 weeks)
20 – 24 years 224 hours (5 weeks + 3 days)
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
2014 BENEFITS ENROLLMENT MANUAL 18
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.
2014 BENEFITS ENROLLMENT MANUAL 19
2014 BENEFITS ENROLLMENT MANUAL 20
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
SEPTEMBER 2014
Top Related