KNOW YOUR REWARDS
BeRewarded Pay, Benefits & More.
2013 REWARDS GUIDE FOR OFFICERS
WELCOME
BeRewarded expresses the value proposition of working at Best Buy. Because every individual is motivated in a different way, we offer a wide variety of Rewards programs and opportunities: Pay, Benefits & More.
Leadership is critical to the success of Best Buy – our future depends on it. That’s why the Rewards available to you as an Officer of the Company reflect the direct impact you have on our business. Your Officer Rewards include both those available to all Best Buy employees and special features of our programs that you receive as an Officer. These additional Rewards are intended to drive strong Company performance year over year. Take time to review your Rewards and choose the benefits that are right for you.
Pay.............................................................................. 1 • Short-Term Incentive • Long-Term Incentive
Benefits • Build Wealth............................................................... 2 —— 401(k) —— Employee Stock Purchase Program —— Deferred Compensation —— Officer Stock Ownership Guidelines • Maintain and Improve Health................................ 7 —— Medical —— Eligibility —— Prescription Drugs —— Dental —— Vision —— Health Care Flexible Spending Account —— Comprehensive Executive Physical Exam —— BeHealthy • Protect Income........................................................ 17 —— Life and Disability
& More.....................................................................19 • Tax-Preparation Services (Senior Vice President and Above) • Employee Discount • Tuition Assistance • Employee Assistance Program • Time Off
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Online Resources................................................ 20 • Legal Notices
PAY
Best Buy is committed to a pay-for-performance environment that delivers individual, team and Company results. In addition to your base salary, incentive pay contributes to your total direct compensation.
SHORT-TERM INCENTIVE (STI) PROGRAM Your annual Short-Term Incentive (STI) opportunity is designed to align behaviors to drive strong Company performance over the fiscal year by closely linking your pay to the Company’s results. Your position has an incentive target that ranges from 45% - 75% of your base salary, depending on your level of responsibility . The design of the Officer STI Program provides you with the potential to earn up to two times your incentive target. You must be an active employee at the end of the fiscal year to be eligible. Your award is prorated based on the number of months you are in your role.
LONG-TERM INCENTIVE (LTI) PROGRAM The Long-Term Incentive (LTI) Program is intended to align your interests with those of our shareholders. The LTI Program offers you a significant incentive to lead strategic business initiatives that will keep Best Buy strong in the future. Here’s how the LTI Program works: • You are eligible to receive Long-Term Incentive grants for each year; subject to the Board of Directors’ approval. • As a new hire you will receive a prorated grant approved by the Board of Directors at the meeting which most closely follows your hire date. • Long-Term Incentive Program grants vary by position.
Renew Blue Priorities 30%
Enterprise Comps 20%
Enterprise Operating Income 50%
Officer STI All Officers will be on the same plan • Enterprise OI serves as a funding gate. Minimum threshold or no other metrics pay • Enterprise Comp Store Sales • Renew Blue Priorities – SG&A Takeout – Digital Revenue % – US Net Promoter Score
Stock Options 33%
Restricted Shares 33%
Performance Shares 33%
Stock Options • Align long-term employee and shareholder interests • Provide motivation to achieve company long-term strategies Restricted Shares • Attract talented leaders • Retain key employees Performance Shares • Motivate key employees to achieve company strategies • Reward employees for achieving those goals
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BENEFITS … THAT BUILD WEALTH Best Buy offers benefits to help you build a healthy financial future.
401(k) PLAN All Best Buy employees have the opportunity to participate in a 401(k) Savings Plan. You can save 1% to 50% of pre-tax dollars, up to $17,500. And, if you are age 50 and up, you can contribute an additional $5,500. As a New Hire, it is important to remember that this is an annual IRS limit. If you contributed money to a 401(k) at another company this year, you must take those contributions into account.
• If you contribute 3%, Best Buy matches 100% of your contributions. For the next 2% you contribute, Best Buy matches 50% of your contributions. • Consider features like Quick Enrollment,™ Automatic Contribution Escalation and Automatic Rebalance. • Choose from 20 investment funds, including HEK Lifecycle Funds. • You’re immediately 100% vested.
.
Your Choices in the Best Buy 401(k) Savings Plan Asset Class
Fund Choices
Ticker
Fund Fees Fund Goals
Company Stock
Best Buy Stock
BBY
N/A
Long-term growth of capital
International Core MFS Institutional International Equity
MIEIX
0.75%
Seeks capital appreciation
Small US Equity
Prudential Jennison Small Company
PSCZX
0.87%
Seeks capital growth
Small US Equity
Artisan Small Cap Value
ARTVX
1.22%
Seeks long-term capital growth through a diversified portfolio of small company stocks believed to be undervalued and offers a controlled level of risk
Mid US Equity
RidgeWorth Mid Cap Value Eq
SMVTX 1.04%
Seeks to provide capital appreciation and, secondarily, to provide current income
Mid US Equity
TimesSquare Mid Cap Growth
TMDIX
1.06%
Seeks to achieve long-term capital appreciation
Large US Equity
HACAX
0.39%
Seeks long-term growth of capital
Large US Equity
BBY Harbor Capital Appreciation Institutional BlackRock S&P 500 Eq
N/A
0.05%
Capture earnings and growth through investing in the same stocks held in the S&P 500 Index
Large US Equity
American Beacon Large Cap Value
AADEX
0.59%
Seeks combination of long-term capital appreciation and current income
Bond
PIMCO Total Return Institutional Fund
PTRAX
0.46%
Seeks total return consistent with preservation of capital
Stable Value
Galliard Stable Value
N/A
0.37%
To protect principal from market volatility and seek yields higher than money market funds at a relatively predictable annual return
Higher
To enroll in the 401(k) Savings Plan, go to mybbyrewards.com and click Start Saving.
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Revised April 2013
Potential of Risk/Return
Plus a choice of nine Hewitt EnnisKnupp (HEK) Custom Lifecycle Funds. You may also choose to invest in the HEK Lifecycle Fund with the date closest to the year you plan to retire. The investment strategy for each of these funds is based on a unique time frame and the particular level of risk that an investor – on average – would expect for that time frame. Each Lifecycle Fund includes investments from different asset classes, so that the fund is properly diversified.
Lower
EMPLOYEE STOCK PURCHASE PLAN (ESPP) You can buy Best Buy stock at a minimum discount of 5% through automatic payroll deductions. • You choose the contribution level to be deducted from your paycheck: 1% – 20%, up to a maximum of $25,000. • Every six months, Best Buy stock is purchased at a minimum discount of 5%.
DEFERRED COMPENSATION PLAN As an Officer, you are eligible for Best Buy’s Deferred Compensation Plan. If you’re interested in additional tax-deferred savings, this is the plan for you. You can enroll 30 days after your hire date. Why defer? • You can defer up to 75% of your base pay and 100% of your incentive pay.
• Then, stock is placed automatically in an account in your name.
• Plan for long-term savings goals such as education, major purchases or retirement in a tax-efficient manner.
• Officer Stock Ownership Guidelines are found on page 5.
• Reduce your current tax liability by saving a portion of your compensation for the future.
More information is available on mybbyrewards. com. Click on Savings.
• Utilize tax-advantaged investment options to help your savings grow and realize your goals.
You have two opportunities to enroll in the ESPP: March and August/September.
• This is a non-qualified plan that allows flexibility of distribution. • Your deferral election is irrevocable for the plan year, which means that you cannot make changes to the amount you elect until enrollment for the following year. See the chart on the following page to learn about the differences between the 401(k) Savings Plan and the Deferred Compensation Plan.
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DEFERRED COMPENSATION PLAN (CONTINUED) Many features of a deferred compensation plan are similar to a 401(k) plan. There are some differences, most notably with flexibility and risk. This chart highlights the similarities and differences.
Feature
401(k) Plan
Deferred Compensation Plan
Pre-tax Deferral Limits
• $17,500 for 2013
• Up to 75% of Base Salary
• $23,000 for those age 50 and older in 2013
• Up to 100% of Cash Bonus and Short-Term Incentive
Changing Deferral Amounts
• May change contribution percentage at any time during the year
• Irrevocable elections
Distribution Elections
• Made at time of distribution
• Made during each Annual Enrollment
• Apply to entire account balance
• Apply to that plan year’s account balance
Tax-Deferred Status
• Contributions and investment earnings are tax-deferred until withdrawn
• Deferrals and investment earnings are tax-deferred until withdrawn or paid
Access to your Money
• Loans are available, but they must be • No loans repaid on an after-tax basis with interest • Hardship withdrawals • Hardship withdrawals • Penalty-free, scheduled distributions available • Withdrawals before age 59½ generally result in a 10% penalty
• Up to 100% of Board of Directors Fees/Retainer (if applicable)
• May only be changed during Annual Enrollment (effective the next plan year)
while employed
Portability
• You may roll your balance into an IRA or other qualified plan
• No rollover is available
Distribution Options at Termination
• Lump sum
• Lump sum or installment payments (if qualified)
• If distributed before age 59½, a 10% penalty may apply
• No penalty on termination distributions at any age • No rollover is available
• May be rolled into an IRA or other qualified plan within 60 days following distribution Investing
• You specify among different investment options
Risk
• Investment risk based on fund selection • Investment risk based on fund selection and and market performance market performance • Balances are secured by the 401(k) trust
• You specify among different deemed measurement fund options
• Additional risk of being an unsecured creditor of the Company for the amount of your account balance
Information on enrolling in the Deferred Compensation program will be mailed to your home. You must enroll each year during the Annual Enrollment window in the fall. Before contributing to the Deferred Compensation Plan, consider first taking full advantage of the 401(k) Company match by contributing the maximum amount allowed by the IRS.
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OFFICER STOCK OWNERSHIP GUIDELINES Best Buy has stock ownership requirements because we believe that material ownership will align Officer behaviors with the interests of stakeholders – shareholders, employees, suppliers/partners and the Company itself. These behaviors include: • Focusing on new sources for Best Buy’s growth, which, if successful, will drive the future earnings potential of Best Buy’s stock price; • Acting like a business owner with a personal stake in matters that affect the long-term health of Best Buy; • Instilling a pay-for-performance culture within Best Buy so that our Rewards bear a positive relationship to the shareholder value we have created; • Supporting strong governance mechanisms so that we actively protect the investment of all shareholders; and • Abiding by standards of conduct that explicitly demonstrate a commitment to our stakeholders in times of high corporate scrutiny. Please read the following guidelines carefully to ensure that you comply with them. Covered Employees:
All Officers (VP & Up)
Ownership Target Method:
Fixed number of shares by Officer position or tier
Ownership Target: CEO
140,000 shares
EVPs – Tier I
55,000 shares
EVPs – Tier II
35,000 shares
SVPs
15,000 shares
VPs
6,000 shares
Multiple Ownership Targets
May have more than one target with different compliance periods
Compliance Requirement
50% holding requirement (of after-tax value) until target ownership level is obtained; ownership target does not need to be met within a certain time frame, as long as progress toward target is being made
Shares Counted Toward Ownership Target: 401(k) Co. Stock Fund
Yes
Employee Stock Purchase Plan (ESPP) Shares
Yes
Personal Holdings (including spouse’s)
Yes
Vested Stock Options
Yes, limited to 50% of intrinsic value
Unvested Stock Options
No
Unvested Restricted Stock
Yes, limited to 50% of award
Performance Share Awards
Yes, limited to 50% of unvested awards
Stock Retention Requirements: Stock Option Exercises
Must retain 50% of net proceeds until target is attained.
Restricted Stock Vesting
Must retain 50% of shares acquired (net of taxes) until target is attained. Note: Up to 50% of each restricted stock grant can be sold on top of the shares sold to cover taxes.
Performance Share Awards
Must retain 50% of shares acquired (net of taxes) until target is attained.
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OFFICER STOCK OWNERSHIP GUIDELINES (CONTINUED)
Financial Hardship Exception
Assistance Meeting Your Goal
Your compliance with the ownership target may be postponed on account of a financial hardship that cannot be resolved through the use of your other assets or that would be worsened by borrowing. A financial hardship is a significant, immediate financial burden that arises from either:
We have hired the firm of Stevens Foster Financial Advisors (“Stevens Foster”) to assist you with the development of a plan for meeting your ownership target on time. Stevens Foster is a Twin Citiesbased Registered Investment Advisor and financial planning firm that provides a wide range of services – investment, retirement, insurance, tax and estate planning, and plan implementation services. Stevens Foster is very familiar with Best Buy’s Rewards programs and specializes in helping corporate executives maximize their stock awards within the context of a tailored financial plan. If you choose to work with Stevens Foster, we will pay for the cost of creating a personalized stock ownership acquisition plan. The scope of their services does not include the development of a complete financial plan or preparation of individual tax returns. Their assistance is limited to how you can best meet your ownership goal, including:
• An unforeseeable or unexpected event – such as a divorce or your spouse becoming unemployed; or • A foreseeable or planned event – such as college education expenses, family member financial support, tax obligations or home foreclosure. The process for requesting a financial hardship exception will be administered by the Rewards department with approval by the CEO. All information submitted with the request will be held in strict confidence.
• The tax consequences of different stock acquisition methods; • Stock option exercise timing and funding recommendations; and • Use of other Company-sponsored programs for added efficiency. In addition, we will pay Stevens Foster to provide annual reviews of this personalized stock ownership plan so that you may remain on track regarding your ownership goal. Any amounts paid to Stevens Foster on your behalf are a taxable benefit and will be added to your taxable income reported by Best Buy on Form W-2. Your relationship with Stevens Foster will be completely confidential. Any information that is shared between you and Stevens Foster may not be divulged to Best Buy without your consent unless required by law.
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BENEFITS … THAT MAINTAIN AND IMPROVE HEALTH Best Buy offers a variety of Health and Welfare benefit programs to enhance your overall wellbeing.
MEDICAL
Health Plan Choices You have 4 medical plans to choose from: • Health Reimbursement Account (HRA) plan • Health Savings Account (HSA) plan • Two Preferred Provider Organization (PPO) plans All the plans use the same network and cover the same services. The HRA and HSA plans include a health account with contributions from Best Buy to help offset your deductible and pay for healthcare expenses.
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PPO
HRA
(Health Plan 1) IN-NETWORK
(Health Plan 2)
OUT-OF-NETWORK
IN-NETWORK
OUT-OF-NETWORK
MONEY FROM BEST BUY* (can be used to offset the deductible) $300 You only; $400 You + one; $600 You + family
N/A
DEDUCTIBLE** Individual Family
WHAT YOU PAY Preventive care (includes well-child and adult) Doctor office visit Inpatient/ outpatient hospital stay
$500
$1,000
$1,000
$2,000
$1,000
$2,000
$2,000
$4,000
0%
Not covered
0%
Not covered
20%
40% after deductible
after deductible
20%
40% after deductible
20%
40% after deductible
after deductible
20%
40% after deductible
***
after deductible
after deductible
20%
Emergency
20%
after deductible
after deductible
OUT-OF-POCKET MAX** (excludes copay) Individual
$3,500
$7,000
$4,000
$8,000
Family
$7,000
$14,000
$8,000
$16,000
BI-WEEKLY PREMIUMS
****
$67.15
$45.16
You + one
$167.31
$112.52
You + family
$261.89
$176.09
You only
* Best Buy’s contribution to the HSA will be prorated for the shortened 2013 plan year. ** Deductibles and out-of-pocket maximums apply on a calendar-year basis. If you change plans, any deductible or out-of-pocket maximum amount incurred from January through March is applied to your new plan.
ABOUT THOSE FAMILY DEDUCTIBLES
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HRA and PPOs
Each person in a family must meet the individual deductible before coinsurance applies to that individual – until the family deductible is met. The family deductible is met once two family members meet their individual deductibles, and then coinsurance applies for everyone in the family (even if some family members have not met the individual deductible).
HSA
The family deductible must be met first, by one or more family members, before coinsurance applies to everyone in the family.
HSA
PPO
(Health Plan 3) IN-NETWORK
(Health Plan 4)
OUT-OF-NETWORK
IN-NETWORK
$250 You only; $375 You + one; $500 You + family
OUT-OF-NETWORK
N/A
$1,500
$3,000
$350
$700
$3,000
$6,000
$700
$1,500
0%
Not covered
0%
Not covered
20%
40% after deductible
$30 primary copay; $40 specialist
40% after deductible
20%
40% after deductible
20%
40% after deductible
after deductible
after deductible
copay
after deductible
20%
20%
after deductible
after deductible
$4,000
$8,000
$3,000
$6,000
$8,000
$16,000
$6,000
$12,000
$21.31
$101.27
$53.09
$240.66
$83.10
$352.35
*** Coinsurance rates are based on allowed amounts. For out-of-network services, you pay charges over the allowed amount. **** For the first 60 days, you will pay the full cost of your Medical benefit. See your Welcome Insert for the actual premiums. Note: This information does not apply to you if you work in Hawaii or are a global assignee.
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ELIGIBILITY It’s important to understand who is eligible to participate in Best Buy plans. Best Buy employees are eligible for medical, dental, vision, Life Insurance and disability coverage if they are classified as full-time employees regularly scheduled to work at least 32 hours a week and are listed in the HR system as full-time (except in Hawaii, where part-time employees are also eligible).
Eligible dependents (and definitions) include: • Spouse The person of the opposite sex you’re legally married to under the laws of the state in which you live. • Common-Law Spouse* A common-law spouse in a state that recognizes common-law marriages. • Domestic Partner* The person of the same or opposite sex as you, if your relationship meets one of the tests below. Test 1: You and your partner have resided in the same principle residence for at least 12 months and intend to do so permanently; you and your partner are at least 18, legally competent to enter into a contract, not blood relatives and not married to anyone else; and you and your partner are in a committed and mutually exclusive relationship and are jointly responsible for each other’s welfare and financial obligations. The Plan Administrator may, from time to time, require documentation showing joint responsibility.
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Test 2: You and your partner have registered as domestic partners pursuant to a domestic partnership ordinance or law of a state or local government; or you and your partner have entered into a same-sex civil union or a same-sex marriage, where permitted. Child* Your child by birth; your stepchild; your legally adopted child (including a child placed with you for adoption); a child for whom legal guardianship has been awarded to you if you provide over 50% of the child’s support and the child resides with you (or for whom you may claim a tax exemption); or a child of your covered spouse/domestic partner, if the child meets the criteria above. Generally, the child must be under age 26 (except in very limited circumstances) to be eligible for benefits. Newborns are automatically covered for the first 60 days under the medical plan; for continued coverage, you must enroll the newborn as a dependent within 60 days after delivery. * Please contact the HR Support Center at 1-866-MY-BBY-HR (1-866-6922947) to determine what steps you must take to confirm the eligibility of a domestic partner or common-law spouse and/or if you have any questions regarding the definition of a dependent child. The cost of coverage for domestic partners and children of domestic partners is subject to state and federal taxes.
PRESCRIPTION DRUGS When you enroll in a health plan, you automatically receive prescription drug coverage, which works differently depending on the health plan you choose. • PPOs (Health Plans 1 and 4) If you enroll in either PPO plan, you pay a percentage of the cost, called coinsurance, when you fill a prescription drug. Prescription drugs do not count toward your medical deductible and out-of-pocket maximum. • HRA (Health Plan 2) If you enroll in the HRA plan, you pay the entire discounted cost of your prescription drugs until you meet your medical deductible. Once the deductible is met, you pay a percentage of the cost, called coinsurance. If you reach the medical out-of-pocket maximum, the plan pays 100%. Prescription drugs do count toward your medical deductible and out-of-pocket maximum.
Prescription drug coverage for the HRA and PPO plans Retail Pharmacy
Mail Order
(34-day supply)
(90-day supply)
Tier 1
20% coinsurance ($10 min.; $15 max.)
20% coinsurance ($20 min.; $30 max.)
Tier 2
30% coinsurance ($25 min.; $40 max.)
30% coinsurance ($50 min.; $80 max.)
Tier 3
40% coinsurance ($40 min.; $65 max.)
40% coinsurance ($80 min.; $130 max.)
• HSA (Health Plan 3) If you enroll in the HSA plan, you pay the entire discounted cost of the prescription until you meet your medical deductible, except for certain preventive drugs. Once the deductible is met, 20% coinsurance applies to all tiers and there are no minimums or maximums when you fill a prescription at a retail pharmacy or through mail order. If you reach the medical out-of-pocket maximum, the plan pays 100%. Prescription drugs do count toward your medical deductible and out-of-pocket maximum.
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DENTAL You have 2 dental plans to choose from: • Preventive plan • Comprehensive plan You have the freedom to see any dentist. However, dentists who participate in the Delta Dental PPO or Delta Dental Premier network have agreed not to charge more than the maximum allowable amount, which can result in lower out-of-pocket costs for you! As an added convenience, the dentist files the claim for you.
Preventive
Comprehensive
Individual
$0
$50
Family
$0
$100
0%
0% no deductible
40%
20% after deductible
Not covered
50% after deductible
Not covered
50% no deductible ($1,500 lifetime max benefit per child, $1,000 lifetime max benefit per adult)
$750 per person
$1,500 per person
DEDUCTIBLE * WHAT YOU PAY Preventive Cleanings, exams, X-rays Basic Fillings, endodontics, periodontics, oral surgery Major Crowns, dentures, partials, bridges
Orthodontia Annual max benefit
BI-WEEKLY PREMIUMS
**
You only
$2.20
$5.07
You + one
$5.00
$10.79
You + family
$8.33
$18.02
* Deductibles and annual maximums apply on a calendar-year basis. If you change plans, any deductible or out-of-pocket maximum amount incurred from January through March is applied to your new plan. ** For the first 60 days, you will pay the full cost of your Dental benefit. See your Welcome Insert for the actual premiums. Note: This information does not apply to you if you are a global assignee.
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VISION You have 2 vision plans to choose from: • Preventive plan • Comprehensive plan Both plans cover the same services, but what you pay when you need care differs.
Preventive
Comprehensive
In-network
Out-of-network
In-network
Out-of-network
WellVision Exam (every plan year)
$10 copay
Any charges over $35
$20 copay
$20 copay plus any charges over $50
Frames (every plan year)
20% off a pair of prescription glasses (frames and lenses)
Not covered
$20 copay $20 copay ($180 max benefit*) plus plus any charges over $70 20% off amount over $180
Lenses (every plan year)
$20 copay plus any charges over:
Single Lined bifocal Lined trifocal Lenticular
20% off lens options
Lens Options Contact Lenses (instead of eyeglass lenses)
Laser Vision Correction
Not covered
Not covered
15% off exam (contact lens fitting and evaluation)
15% off regular price OR 5% off promotional price (discounts vary)
Not covered
Not covered
$20 copay $20 copay $20 copay $20 copay $0 – $160, depending on lens option
$180 max, no copay (up to $60 for contact lens fitting and evaluation)
15% off regular price OR 5% off promotional price (discounts vary)
$50 $75 $100 $100 Not covered
Any charges over $105
Not covered
BI-WEEKLY PREMIUMS You only
$0.60
$3.78
You + one
$0.90
$5.38
You + family
$1.62
$9.64
* $100 allowance at Costco Optical
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HEALTH CARE FLEXIBLE SPENDING ACCOUNT A Health Care Flexible Spending Account (HC FSA) lets you set aside pre-tax dollars from each paycheck to pay for out-of-pocket healthcare expenses. You do not pay federal income or Social Security taxes on your contributions, which can mean a savings of 15% to 35%, depending on your tax bracket. Remember, you can only use your HC FSA to pay for eligible expenses. If you use FSA funds for expenses that aren’t eligible, you could be subject to a penalty fee. For a list of eligible expenses, go to irs.gov and search “Publication 502.” How does it work?
You fund an HC FSA with pre-tax dollars to reimburse yourself for eligible healthcare expenses. It is not attached to a Health Plan.
Who contributes?
You
How much can be contributed?
$130 – $2,500 per person each year
What is the money used for?
Pays eligible healthcare expenses, such as: • Prescription drugs • Over-the-counter items, when prescribed by a physician • Medical, dental and vision deductibles and copays • Eyeglasses, contact lenses and vision exams • Orthodontia
Can the money rollover year after year?
No. Unused funds are forfeited each year.
Is there a grace period?
You have until March 31, 2014, to incur 2013 claims for reimbursement and until June 30, 2014, to request reimbursement for claims.
Can you take unused money with you if you leave Best Buy?
No
Considering enrolling in the HSA Plan?
Because your tax-advantaged Health Savings Account (HSA) covers medical expenses, you can only use the Health Care Flexible Spending Account (HC FSA) for non-medical healthcare expenses, like dental or vision. With this limited purpose account, you won’t receive an HCSA debit card.
Use it or lose it Because of IRS rules, you’ll lose any funds left in your FSA at the end of the plan year. Figure out the right contribution with our online tools!
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COMPREHENSIVE EXECUTIVE PHYSICAL EXAM The Mayo Clinic Executive Physical program provides access to state-of-the-art testing capabilities and the expertise of healthcare professionals in more than 100 medical and surgical specialties and subspecialties. Best Buy offers this Reward as an important part of your overall health and wellbeing. The Executive Physical provides guidance for staying healthy and can help detect health concerns that may need additional care. The exam includes the following services: • Medical history review, physical exam, and related lab tests and X-rays • Detailed consultation with a Mayo physician at the end of the exam • Written report to you and/or your personal physician
Details Occurrence Location
Once every 24 months while you are an active employee Mayo Clinic, Rochester, MN. Phone: 1-507-284-2288
(MN residence) Location
Mayo Clinic, Scottsdale, AZ. Phone: 1-480-301-8088
(Outside MN)
Mayo Clinic, Jacksonville, FL. Phone: 1-800-851-9022
Exam Duration
2 – 3 days
Travel Reimbursement
Up to 2 nights of hotel. Any other travel expenses associated with physical as determined by Best Buy’s Travel Expense Reimbursement Policy on ETK.
Claims
Mayo Clinic will invoice Best Buy directly after you have signed an Executive Health Program Billing Information Form at Mayo. All information is HIPAA compliant and stays in effect for all physicals at Mayo within 12 months of signing the form.
Exam Follow-Up Actions If executive additional care is recommended as a result of a condition found during your exam, you may choose to continue any recommended treatment with the Mayo Clinic or select another provider. Whatever you choose, you will be responsible for any medical costs incurred outside of the covered Executive Physical exam. If you are enrolled in a Best Buy medical plan, provide the clinic where you receive additional care with your insurance card. Your services will then be billed based on the benefits of the Plan.
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BeHEALTHY If you and your spouse/domestic partner are enrolled in a Best Buy Health Plan, you both have access to even more programs, tools and resources. Focus on better health (and get free stuff from Best Buy, too)
• Use HEALTHLINK Better health is just one call away with HEALTHLINK, your one-stop shop for questions about your health. Registered nurses, lifestyle coaches and health specialists are ready to help you 24 hours a day, seven days a week. Use HEALTHLINK to help you: —— Find a primary doctor for you and your family —— Schedule doctor appointments —— Figure out the right care for your situation —— Get specialist recommendations for health issues like diabetes or cancer —— Answer questions about your pregnancy —— Lose weight and eat healthy to reach your wellness goals —— Learn how to prevent and treat back pain If you qualify for one of these programs, a HEALTHLINK representative might contact you directly to talk about participating. Let HEALTHLINK answer your health questions. Call 1-866-229-2810 to speak with a registered nurse, lifestyle coach or health specialist today. • Get Preventive Care Because one of the most important things you can do for your health is to get a physical every year, Best Buy picks up the tab for in-network preventive care, such as annual physical exams, scheduled screenings (mammograms, cancer screenings, cholesterol checks, etc.), flu shots, immunizations and well-child care. You don’t have to worry about deductibles, copays or coinsurance. All you need to do is schedule the appointment and go. For a suggested list of preventive care services, go to uhcpreventivecare.com.
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• Reach a Healthy Weight Get to a healthy weight and stay there with the Healthy Weight Program. Your personal health coach will help you create an exercise routine and plan a healthy diet. You can also take advantage of online seminars and tools. Complete the program and get a $250 gift card of your choice.* • Stop Smoking Join the QuitPower® Program to create a customized plan for quitting and get nicotine patches or gum delivered to your home for free. Stay smoke-free under the program for six months and get a $250 gift card of your choice.* • Get Prenatal Care Give your baby a healthy start with the Healthy Pregnancy Program. Experienced maternity nurses are standing by 24/7 to answer your questions and offer advice. Sign up by your 18th week of pregnancy and continue participating throughout the pregnancy to receive a $125 gift card of your choice. • Ease the Pain Have chronic lower back pain? The Healthy Back Program offers information and support to participants in a Best Buy Health Plan. Sign up to protect your back and receive a $50 gift card * You are eligible for one $250 gift card per person between the Healthy Weight and QuitPower® programs. Due to IRS regulations, gift cards show as taxable income on your paycheck.
Bridges to Excellence® Best Buy is proud to be a champion of Bridges to Excellence, a program focused on improving patient experiences and outcomes while rewarding providers that meet an exceptional standard for clinical outcomes. The three main areas of focus are diabetes, depression and vascular care. Go to bridgestoexcellence.org for more information and to learn which care systems offer the best care. Note: This information does not apply if you work in Hawaii or are a global assignee.
BENEFITS … THAT PROTECT INCOME Best Buy helps protect your income by giving you the opportunity to pay less in taxes and ensuring that your loved ones are financially secure in the event that you have a serious medical event and are unable to work or die.
LIFE AND DISABILITY Best Buy’s life and disability coverage can protect your loved ones. Life and Accidental Death and Dismemberment (AD&D) Insurance pay a benefit if you or a covered family member are injured or die, and disability coverage replaces a portion of your income if you are sick or injured and unable to work. Best Buy provides basic coverage at no cost to you, and you can choose optional coverage for yourself and your family.
Choose your beneficiaries Your beneficiary is the person you want to receive a benefit should anything happen to you. When you enroll, you will be prompted to select your beneficiary for your life and AD&D Insurance. Be sure to have your beneficiary’s name, address and Social Security Number handy when you enroll.
Basic Coverage Benefit
Coverage
Life
1x executive pay to a maximum of $1,000,000.*
AD&D
1x executive pay to a maximum of $1,000,000.*
Short-Term Disability (STD)
Plan pays 80% of your annual pay for up to the first 8 weeks, then 60% of your pay up to 26 weeks. Benefits begin after you’ve been disabled for 3 consecutive days.
Long-Term Disability
Plan pays 60% of your annual pay up to $25,000 per month. Benefits begin after you’ve been disabled for the 26-week STD period and continue as long as you are disabled and unable to work. You are taxed on the premiums that Best Buy pays for, so any benefits you receive are non-taxable. If 60% of your monthly income exceeds $25,000 per month, you will be eligible for additional coverage, some of which is subject to individual medical underwriting. If this applies to you, you will receive additional details after you’re hired.
Business Travel Accident
Premiums
NO COST TO YOU
2x executive pay* to a maximum of $500,000, for any accident whether or not you are traveling on Company business.
* Executive pay includes annual salary, annual bonus and commissions, if applicable.
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OPTIONAL COVERAGE You can buy optional life insurance and AD&D coverage for yourself – up to 8x annual pay or a maximum of $1,000,000 each – and optional Life Insurance coverage for your eligible dependents. Here are your monthly costs for optional coverage. Optional Life Insurance*
Optional AD&D Insurance*
Monthly cost per $1,000 of coverage
Age 0 – 24
$0.05
$0.02
25 – 29
$0.06
$0.02
30 – 34
$0.08
$0.02
35 – 39
$0.09
$0.02
40 – 44
$0.10
$0.02
45 – 49
$0.15
$0.02
50 – 54
$0.23
$0.02
55 – 59
$0.43
$0.02
60 – 64
$0.66
$0.02
65 – 69
$1.27
$0.02
70+
$2.06
$0.02
* Once you have enrolled, you can increase your coverage by only one level each year during benefits Annual Enrollment. Coverage is limited to $1,000,000.
Spouse/Domestic Partner Life Insurance Coverage options
Monthly cost
$25,000
$1.75
$50,000
$3.50
$75,000
$5.25
$100,000
$7.00
Child Life Insurance* (14 days to age 26) Coverage options
Monthly cost
$5,000
$0.42
$10,000
$0.84
$20,000
$1.68
$30,000
$2.52
* The option you select covers all eligible children.
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& MORE
There are many great reasons – in addition to pay and benefits — for working at Best Buy: learning and development opportunities, community involvement, a fun and innovative work environment and much more.
TAX-PREPARATION SERVICES (SENIOR VICE PRESIDENT AND ABOVE) To help you prepare your annual federal and state income taxes, including year-end planning, Best Buy offers you an annual benefit of $2,000 to pay for tax services. This benefit covers tax-preparation services provided by any tax accountant. When you receive tax-preparation assistance, you should pay for the services and then send your receipt to the Best Buy HR Support Center via fax at 1-952-430-4141. Your annual benefit amount will be included as income on your Form W-2. While you may use any accounting service, the Company’s preferred supplier is Boeckermann, Grafstrom & Mayer. The Company does not endorse the preferred supplier but has established a direct billing relationship to simplify the transaction on your behalf.
EMPLOYEE DISCOUNT The Best Buy Employee Discount is a benefit extended to our employees that enables you to purchase products and services at Best Buy retail stores at 5% above cost. All employees are eligible after 30 days of employment. The complete Employee Discount policy can be found at mybbybest.com > Be$mart.
TUITION ASSISTANCE Qualified, full-time employees may be reimbursed for tuition and other eligible expenses. The program covers all certificate of equivalency courses at the high school level, $3,500 annually for undergraduate studies and $5,250 annually for graduate-level course work related to your job.
EMPLOYEE ASSISTANCE PROGRAM No matter what life throws your way, Best Buy’s Employee Assistance Program (EAP) is here to help! EAP counselors are ready to help employees and their family members through many different kinds of bumps in the road. Trained professional counselors can help you deal with life’s many challenges, including financial crises, alcohol and substance abuse, anger management, anxiety disorders, grief and bereavement, child and adolescent development, divorce, elder care, parenting, pregnancy and more. The EAP is another way Best Buy helps you maintain a healthy work/life balance.
TIME OFF AT-A-GLANCE Complete information about our time-off benefits can be found at mybbybest.com > BeBalanced.
PAID TIME OFF (PTO) 0 – 9 years 10 – 14 years 15+ years
23 days 25 days 28 days
Bereavement Benefit Up to 5 days of paid time off will be granted for both Field and Corporate employees who experience a death in their family.
Company Holidays Best Buy recognizes 6 paid holidays for all employees: • New Year’s Day • Memorial Day • Independence Day • Labor Day • Thanksgiving Day (retail stores closed) • Christmas Day (retail stores closed)
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ONLINE RESOURCES BE YOUR BEST This is your one-stop shop for everything related to your health, finances and work/life balance. Visit mybbybest.com to learn more about your options, and use cool tools like: • Alex® – Learn about Best Buy’s Health Plans – and other benefits – in a fun and fast way with the help of Alex, your virtual benefits counselor. • Health Plan Cost Estimator – Estimate your expenses under each Health Plan.
OTHER WEB SITES • MN employees: mymedica.com (select Medica Choice with UHC Choice Plus) • Non-MN employees: myuhc.com (select UnitedHealthcare Choice Plus) • Fidelity Investments: netbenefits.com
Prefer to make a call? Contact the Benefits Center at 1-866-475-6733 Monday through Friday, 8 a.m. – 6 p.m. CT to: • Enroll in your benefits.
BeREWARDED When you’re ready to enroll go to mybbyrewards. com. You can also learn more about all the benefits available to you with tools like: • Compare your other benefit options, including dental, vision, life and disability benefits and the 401(k). • Project your retirement income – See if you’ll have the savings you need for a comfortable retirement. Just go to the 401(k) Savings tab and select Savings and Retirement. • Find tools and calculators – Decide how much to save in the 401(k), and plan for your future by using additional savings tools.
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• Make changes to your coverage during the year, such as adding or removing a dependent, due to a qualified family status change. • Ask questions or get help enrolling with the assistance of Specialized Enrollment Coaches.
LEGAL NOTICES There are certain legal requirements you should know about our plans.
Notice of Privacy Practice Under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Best Buy Flexible Benefits Plan (the “Plan”) is required to provide you with a HIPAA Notice of Privacy Practices (“Notice”) at the time of your enrollment and at certain other times. In addition, the Plan is required to periodically notify you of the availability of the Notice and provide you with information on how to obtain a copy of the Notice. You may obtain a copy of the Plan’s Notice at any time by accessing the Best Buy internal website at mybbyrewards.com. To request a paper copy of this notice, contact the HR Support Center at 1-866-MYBBY-HR (1-866-692-2947). This reminder pertains only to those healthcare benefits provided under the Plan that are covered under HIPAA’s privacy rules.
Women’s Health and Cancer Rights Act of 1998 The Women’s Health and Cancer Rights Act requires that group Health Plans providing coverage for mastectomies also provide certain mastectomy‑related benefits or services. Under federal law, the Medical Benefit Program offered by Best Buy must provide coverage for:
Your Special Enrollment Rights Under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), your group medical plan is required to provide you this notice explaining the procedures for your special enrollment rights. If you are declining enrollment for yourself or for your dependents (including your spouse or domestic partner) in the Company’s group plan because of other health insurance coverage available to you, you may in the future be able to enroll yourself or your dependents in the Company’s group plan if you or your dependents lose eligibility for that other coverage (or if the employer stops contributing toward your or your dependents’ other coverage). However, you must request enrollment within 30 days after your other coverage ends (or after the employer stops contributing toward the other coverage). In addition, if you have a new dependent as a result of marriage, birth, adoption or placement for adoption, you may be able to enroll yourself and your dependents, provided that you request enrollment within 60 days after the marriage, birth, adoption or placement for adoption. You also have 60 days to request a change in your coverage from the date you lose eligibility under Medicaid or the Children’s Health Insurance Program (CHIP), or from the date you are determined to be eligible for a premium subsidy under Medicaid or CHIP.
• Reconstruction of the breast on which the mastectomy was performed; • Surgery and reconstruction on the other breast to produce a symmetrical appearance; and • Coverage for prostheses and physical complications at all stages of the mastectomy, including lymphedemas. The same deductibles and coinsurance limitations apply to these procedures as apply to any other illness.
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looking for more? Go to mybbybest.com for definitions of key benefits terms, plus resources for your health, finances and work/life balance.
This Guide provides an overview of many of the rewards for eligible Best Buy employees. It is not intended to provide a complete description of these rewards and it is not used to administer or document the terms of any Best Buy reward plan or program. Best Buy may amend, modify or terminate any rewards described in this document, in whole or in part, at any time. If there are any conflicts between this document and the official Plan documents or administrative agreements, the legal documents will govern.
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