2018 Annual Enrollment and Time Off Ecommerce Faqs (Leadership Training)

2018 Annual Enrollment and Time Off eCommerce FAQs (Leadership Training)

During Annual Enrollment (AE), all of our new brands • If you complete your Benefits enrollment by visiting will move onto Walmart benefits. To ensure consistency Workday or calling People Services BETWEEN Nov. 13 across our business, we needed to make some changes and Nov. 15: to benefits and time off. Right now, we’re all on different – You will receive your new plan ID card after Jan. 1, 2018. plans – so these changes will mean great new offerings for everyone. It also means that some associates will feel – While your coverage will be effective Jan. 1, 2018, the the impact more than others, and for some, the changes claims administrators MAY NOT have your coverage we needed to make may even feel like a loss. The details effective dates in their systems on Jan. 1, 2018. of changes related to our benefits will differ by location. – You will be responsible for paying all claims and We’re proud to offer a competitive benefits package to pharmacy expenses until the claims administrator our eCommerce associates. When you look at the big systems are updated with your effective date. picture, we are investing more in total compensation and – Once the claims administrator systems are updated, benefits packages than ever before across eCommerce claims paid can be resubmitted for reimbursement. and Walmart.

Annual Enrollment 2. What are the key changes for new eCommerce locations?

eCommerce associates who work at designated facilities 1. When is annual enrollment? in key talent markets will be eligible for a unique eComm PPO medical plan. Annual enrollment for Walmart and Shoes.com starts Oct. 14 and ends Nov. 3, and those associates • Due to its plan design, the eComm PPO plan requires will complete their enrollment through the online that premiums be paid on a post-tax basis. enrollment tool, at WalmartOne.com/Benefits. All other eCommerce associates will be eligible for the Annual enrollment for Jet, Hayneedle, Moosejaw, standard suite of Walmart medical plans. Modcloth, and Bonobos starts Nov. 1 and ends Nov. 15. Per IRS guidelines, we won’t be able to offer FSA plans Important: to our associates. All associates will, however, be able to choose a Health Savings Account medical plan that • If you complete your Benefits enrollment by visiting allows them to set aside pre-tax dollars to save money Workday or calling People Services ON or before Nov. 12: for medical expenses. – You will receive your new plan ID card prior to Jan. 1, 2018.

– The Claims administrators may have your coverage effective dates in their systems on Jan. 1, 2018.

• Walmart’s dental and vision plans. When current and prospective associates explore our • Walmart’s extra insurance plans, such as life insurance total rewards package, it has to be fair and attractive and short-term disability. to them and their family. That means different things in different places where necessary. That’s why we’ve • Financial benefits like Walmart’s 401(k) and associate tailored our approach in key talent markets such as the stock purchase plans. Bay Area, Los Angeles, Hoboken, Portland, Detroit, and Associates will be credited for time worked from the Boston, where we have medical plan offerings that align start date at their original company to satisfy any with current local and industry benchmarks. eligibility waiting-period requirements.

Keep in mind, the word is “eligible.” For associates to 5. Why do benefits differ between Salaried and get these benefits on Jan. 1, 2018, they have to enroll by Hourly associates? visiting Workday or calling People Services during the AE timeframe, Nov. 1 to Nov. 12, 2017. Otherwise, they’ll Our approach to benefits is a reflection of the broader have to wait until 2019 for benefits coverage. talent market – we’ve made sure our benefits offerings In addition to the benefits that associates can choose positon us to attract the talent we need. All Walmart core from during AE, we’ve also been working on the benefits (medical, dental, and vision plans) are universally eCommerce PTO and Parental Leave policies – more available to eligible salaried and hourly associates. Other information about these plans will be shared in the plans, like short term disability and life insurance benefits, coming weeks. Within these FAQs, we will touch on a align to or exceed industry benchmarks. few key questions for time off programs.

6. What are the positives I can expect? 3. Why are we moving onto Walmart benefits? At Walmart, we are proud of the benefits and rewards We have three key reasons behind moving eCommerce programs we have for our associates. Overall, we are associates onto Walmart benefits. investing more in total compensation and benefit packages than ever before across eCommerce and Walmart. We have • First, we offer our over 1.2 million U.S. associates great an innovative Centers of Excellence program, 6 percent benefits. These plans are affordable while providing match on 401(k), health options with low premiums, time high quality care to our associates. Offering these plans off paternity/maternity paid leave, disability programs, and continually improving them will give you access to incentive programs, discounts, equity and many more. innovative care such as our Centers of Excellence (COE’s), where associates may receive the highest quality of care covered at 100 percent if certain facilities are used. 7. On average, how much does it cost an associate to be on • Second, there are regulations and legislation Walmart benefits? determining what we can and cannot do. Unfortunately, we cannot let every business have its Despite the increasing cost of healthcare in the U.S., own unique program as they are today due to IRS Walmart is proud that, on average, associates pay about rules that limit the differences in benefits that can be 14 percent less than other retail employees and about offered to associates within the same company. 22 percent less than employees in other industries. The lowest ‘associate only’ plan will cost an associate about • Third, we’re all responsible for managing cost and $26 per biweekly pay period. operational efficiencies. That definitely doesn’t mean we go as cheap as possible – far from it. We are The company pays approximately 60 percent of the investing more in our associates total rewards than total cost of medical coverage for the average associate, was previously done. We have to spend smart. So, let’s which includes out-of-pocket costs and premiums. This lead by example – by aligning with Walmart’s existing is competitive with what other companies pay for their benefits and leveraging economies of scale, we’re employees’ health care costs. setting the standard about spending smart.

©2018 Wal-Mart Stores, Inc. Confidential – Internal Use Only | 110817A 2 8. Are benefit premiums paid by associates out of each doctors based on cost and quality reviews at no cost paycheck? Will they be paying premiums on 26 pay periods? to you, at MyCastlight.com/Walmart. Finally, you can call the health care advisor for a plan you are interested Starting in January 2018, premiums will be deducted in, and they can share provider details with you. bi-weekly for 26 pay periods to collect for the previous If associates are in the middle of specific care or two weeks of benefits. treatment and their current doctor is not in the network, they can call their healthcare advisor to determine if it 9. What happens if I am in the middle of treatment covered would qualify to continue care and treat their claims as by my old medical plan? in-network. For questions prior to Jan. 1, associates should call We understand transitioning to a new medical plan can be People Services. After Jan. 1, they can call their stressful, especially if associates are in the middle of care. Healthcare Advisor using the phone number on the back If associates are in the middle of specific care or treatment of their Plan ID card. and their current doctor is not in the network, they can call their healthcare advisor to determine if it would qualify to 13. Can I expect benefits to improve in 2019? continue care and treat their claims as in-network.

For questions prior to Jan. 1, associates should call People We’ll continue to look for ways to stay competitive in our Services. After Jan. 1, they can call their Healthcare Advisor regions and markets so we can attract great talent year using the phone number on the back of their Plan ID card. over year as we grow the business.

10. When will associates receive their medical cards? 14. Can I use COBRA to stay on my current health plan if I don’t want to transition to the Walmart plan? Associates who enroll in medical or dental benefits during Annual Enrollment will receive their new plan ID No. Your current health plan will end on Dec. 31, 2017. cards by the end of December. Associates should provide To continue coverage, you must transition to the their medical providers with updated Plan ID card new Walmart benefit plan options during the Annual information in 2018 to avoid claim processing delays. Enrollment period to have coverage effective Jan. 1, 2018.

15. Will we get associate discounts at our family of brands? 11. How do we ensure our benefits are competitive – who do we benchmark against? Not today, but this is something we will continue to review.

We benchmark our benefits against other retailers, grocers and e-commerce organizations and also take into 16. Why don’t we offer a Flexible Spending Account (FSA)? consideration each geographical area. We’re unable to provide FSA plans due to IRS regulations around these types of pre-tax programs. When your 12. Can I keep my current physician when I transition to the new Walmart benefits take effect in January 2018, your Walmart Plans? current FSA will be discontinued. This applies to both health care and dependent care FSAs. We do offer a A good first step is to check in directly with your Health Savings Account (HSA) medical plan. physician’s office, to find out if your current provider is ‘in-network’. 17. Are part-time associates allowed to participate in To get more information about network providers Walmart’s 401(k)? on the plans offered in your area, you have a few options. You can find online provider directories at Yes. WalmartOne.com/Providers. For some plans you can also visit Castlight, an app that lets you search for

©2018 Wal-Mart Stores, Inc. Confidential – Internal Use Only | 110817A 3 18. Will employees have to go through proof of insurability in order to become eligible for medical benefits. All for supplemental life (even if they were approved under our other Walmart benefits do not have an hours worked policy? If so, when will they expect to receive this info and requirement for eligibility. how (mail, email...etc). 22. What happens to benefits for part-time associates? We will treat all associates who enroll during this year’s Annual Enrollment as new hires with guaranteed If an associate averages 30 hours per week, they will issue amounts ($25,000 for Optional Associate Life). become eligible for medical benefits. Associates will have to complete the proof of good health for any amounts exceeding $25,000, or for all • Part-time associates hired after Jan. 1, 2018, may be amounts if they enroll after Annual Enrollment ends. eligible to enroll after one year and benefits start on the first day of the second month following their 19. When will the current life insurance expire – Dec 31, 2017? one-year anniversary date. Part-time associates will need to average 30 hours per week worked over the All current benefits end Dec. 31, 2017. past 52-week period in order to become eligible for medical benefits. All other Walmart benefits do not have an hours worked requirement for eligibility. 20. Will there be a gap in the availability to make a 401(k) contribution from the last payroll at their acquired Walmart conducts an annual medical benefits eligibility company to the first payroll at Walmart? review each October for all part-time and temporary associates. If associates work an average of at least 30 hours There will be not be a gap. The last payroll in 2017 will be per week for the 52-week period prior to the October processed by the acquired company and the first in 2018 annual hours review, they will be eligible for Walmart’s will be in the Walmart Plan. medical benefits for the coming year, and will receive a personalized Decision Guide outlining their options. Eligibility Part-time associates who are eligible for medical benefits will have the same benefits options as full-time 21. I heard there are waiting periods for eligibility. How does hourly associates in their location. that impact me? 23. If an hourly full-time associate is hired in October/ eCommerce associates with a hire date prior to Jan. 1, November/December 2017, will their benefits with 2018 will be eligible to enroll in benefits for 2018 Walmart begin Jan. 1, 2018? What will happen to their regardless of job status. benefits beginning Jan. 1, 2018? Will they have to go Associates with a hire date on or after Jan 1, 2018, through a waiting period to meet the 89th day? Will they will be eligible for benefits based on the Walmart go through Annual Enrollment? Will they be able to eligibility guidelines. continue with coverage? • Salaried associates: are eligible for benefits starting on their date of hire and we give them 60 days to enroll. If an associate is employed before the end of 2017 and has completed an enrollment session, they will receive • Full-time hourly associates: are eligible for benefits their new benefits on Jan. 1, 2018. If employees were th the first day of the month containing their 89 day on an acquired company’s benefits and they enroll in of employment. Associates have between their hire Walmart’s plan during annual enrollment the wait for date and their benefits eligibility date to choose transplant, weight loss and orthodontia will be waived. their benefits. Associates who are hired after Dec. 31, 2017 will observe • Part-time hourly associates: may be eligible to enroll the standard Walmart eligibility and waiting period after one year and benefits start on the first day of the requirements based on their status and plan selections. second month following their one-year anniversary date. Part-time associates will need to average 30 hours per week worked over the past 52-week period

©2018 Wal-Mart Stores, Inc. Confidential – Internal Use Only | 110817A 4 24. For new hires after Annual Enrollment – what is the policy that allows the associate to take the time they process to sign up for Walmart Benefits for 2018? Also, need, with their manager’s approval. what is the process if someone experiences a Life Event The FlexPTO program is similar to the unlimited PTO between AE and Jan. 1? programs many of our new companies have offered. For hourly associates, it means earning PTO based on tenure We are currently working through the programming of and the service hours they have worked. Workday and we will provide additional 2018 benefits enrollment process details after Annual Enrollment. 28. What happens to my accrued PTO when I move to the FlexPTO plan? Time Away from Work For salaried associates, all unused and accrued paid time 25. What changes are being made to the eCommerce off from a previous program will be kept and carried Time Away from Work programs? over to the new FlexPTO program, which begins for all associates on Feb. 1, 2018. If the associate has available In 2018, we’ll launch Walmart’s Time Away from Work paid time off from a previous program, that time will be programs for eCommerce associates (including Walmart used first. Any remaining unused legacy paid time off will eCommerce and newly acquired eCommerce companies) be paid out upon termination. New disability and parental pay programs will begin on Jan. 1, and new PTO programs will begin on Feb. 1. 29. How long do I have to use my old legacy PTO?

26. What is included with Walmart’s Time Away from There’s no time limit on when associates can use legacy Work programs? PTO; it never expires. Salary and hourly associates can keep all legacy time carried over in February 2018 and There are four key programs that will be implemented: can continue to use it until they leave the company, or use it all, whichever comes first. • Paid Time Off (PTO)

– Salaried FlexPTO 30. What are the paid holidays in 2018? – Hourly PTO Hourly paid 2018 holidays are Presidents’ Day, Memorial • Holiday Pay for Hourly Associates Day, Independence Day, Labor Day, Thanksgiving Day, • Disability programs for the associate’s own Christmas Day and New Year’s Day. disabling condition

– Short-Term Disability 31. Why are changes being made to Maternity, Parental, and Family Care? – Long-Term Disability

• Pay for when an associate needs to be away to The changes to the maternity, parental, and family care care for family benefits will be aligned with Walmart’s overall philosophy yet remaining competitive in the talent market. – Parental and Family Care Pay (Salaried)

– Parental Pay (Hourly) 32. With long-term disability moving from company paid to associate paid, where can associates find more information 27. Why do only certain associates receive FlexPTO? including rates?

Our approach to PTO is a reflection of the broader Annual Enrollment benefit information including talent market – we’ve made sure our PTO offerings long-term disability can be found on Workday and positon us to attract the talent we need. For salaried WalmartOne.com/AEeComm. associates in tech eCommerce, this means a flexible PTO

©2018 Wal-Mart Stores, Inc. Confidential – Internal Use Only | 110817A 5 Tools and Resources They can find more details about all their benefits on WalmartOne.com beginning Oct. 14. As a reminder, 33. What resources are available to help associates make an WalmartOne.com can be accessed via any device informed decision about their 2018 benefits? (Acquisitions including a personal laptop. excluding Walmart.com and Shoes) Associates will have access to an online education session that they can watch from the convenience of During the enrollment period we’ll have a number of their workspace. resources available to help our associates understand the changes and decide which plans are right for them, including: Benefit-eligible associates will receive a link via email on Oct. 14 providing access to lots of great materials • 2018 Walmart benefit resources. Benefit-eligible and resources like a Personalized Decision Guide for associates should receive a link via email on Oct. 14 their benefit options, the full Associate Benefits Book, providing access to lots of great materials and frequently asked questions and more! resources like a decision guide to their benefit options, the full Associate Benefits Book, frequently asked questions, and more. Other Associate Offerings

• Online education sessions. Associates will be able 35. Does Walmart offer tuition reimbursement? to watch an online education session from the convenience of their workspace. Walmart does not have a tuition reimbursement program. • Annual Enrollment meetings. In-Person meetings can However, there are a number of other educational begin Oct. 14 for associates to learn more about their offerings available. new benefits.

• People Services. Our team of experts is available to assist with questions M-F: 7:30 a.m.–6:00 p.m. CT and Sat: 9:00 a.m.–1:00 p.m. CT. They can be reached at 800-421-1362.

• Workday enrollment tool. Associates new to Walmart benefits are able to enroll in Workday to receive their benefits in 2018.

34. What resources are available to help associates make an informed decision? (Walmart.com and Shoes)

During the enrollment period we’ll have a number of resources available to help our associates understand the changes and decide which plans are right for them.

Associates will be enrolling in benefits through the Walmart enrollment tool which provides a clean look and simple, clear instructions and navigation.

They’ll be able to compare their plan options, review their pay, PTO and more – all on their smartphone. Their Personalized Decision Guide will be digital as well and they will receive it via email starting Oct. 14.