Employee Handbook

D.

Short Term Disability

Frenchman ’ s Creek pays the full premium for Short Term Disability Insurance policy for all full-time employees. The plan provides for benefits after you have been out of work for 15 days for up to 11 weeks if you should become ill or injured and not able to work.

E.

401(K) Retirement Savings Plan

Frenchman ’ s Creek has established a 401(k) savings plan to provide employees the potential for future financial security for retirement. To be eligible to join the 401(k) savings plan, hourly employees must have completed one year of service, worked 1000 hours, and be 21 years of age or older. Salary employees are eligible after sixty (60) days. Employees will be eligible on the first day of the month following the grace period based on employment status. The 401(k) savings plan allows you to elect as much salary as you would like to contribute up to the maximum allowed by federal law, allowing you to tailor your own retirement package to meet your individual needs. If you are projected to attain age 50 before the end of a calendar year, then you may elect to defer additional amounts (called “ catch-up contributions ” ) to the plan as of the January 1st of that year. If you have not completed a salary deferral agreement by the time you become eligible to make salary deferrals, we will automatically withhold 4% of your compensation from your pay each payroll period and contribute that amount to the Plan as a salary deferral. You may enter a salary deferral agreement at any time to select an alternative deferral

amount or to elect not to defer under the Plan. If you have any questions concerning the application of this automatic contribution provision, please contact the Administrator. Frenchman ’ s Creek also contributes an additional matching amount up to 4% to each employee ’ s 401(k) contribution. Because your contribution to a 401(k) plan is automatically deducted from your pay before federal withholdings are calculated, you save tax dollars now by having your current taxable amount reduced. While the amounts deducted generally will be taxed when they are finally distributed, favorable tax rules typically apply to 401(k) distributions.

Complete details of the 401(k) savings plan are described in the Summary Plan Documents provided to eligible employees. Contact the Director of Human Resources for more information about the 401(k) plan.

F.

Pre-tax Premium Program

Frenchman ’ s Creek offers a Pre-tax Premium Program to its employees participating in the benefit plans. This program enables employees to receive tax advantages on premiums deducted for medical and other optional plans. Basically, the amount of the premium is deducted from the gross income prior to taxation. Thus, an employee is taxed on a reduced amount of income. All such premiums are subject to the pre-tax provision Section 125.

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