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Crew MemberBenefits 2020

Crew Member Benefits2020 options for health care and more

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Crew MemberBenefits 2020

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We pride ourselves as a crew on representing diverse backgrounds, areas of expertise, and opinions. At the same time, we share a commitment to Vanguard’s core values. We embody those values by working every day to serve our clients with focus and integrity. So thank you for the role you are about to play in our important mission of giving investors their best chance for investing success.

As a company, Vanguard understands how important it is to acknowledge crew’s skill and effort by offering competitive and compelling rewards. To that end, I believe our Total Rewards package of compensation, benefits, and work-life programs is an exceptional one.

Getting the most out of Vanguard’s Total Rewards program of medical, retirement, and other benefits requires your involvement, starting with this booklet. It contains the information you’ll need to elect your benefits, as well as details about the many benefit options available to you.

Please use it to tailor a benefits package that best meets your needs.

I hope you’ll take full advantage of our outstanding lineup of services. I further hope you’ll enjoy a long and rewarding career at Vanguard.

Sincerely,

Mortimer J. BuckleyPresident and Chief Executive Officer

Fellow crew member:

Welcome to Vanguard. We are glad to have you join our crew.

Since our start in 1975, Vanguard has compiled an enviable record of accomplishments in a fast-changing, competitive business. Without a doubt, we

owe our continued success to our talented and hardworking crew members.

A message from CEO Tim Buckley

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Crew MemberBenefits 2020

More than just health coverage Total Rewards offers comprehensive benefits, plus the tools and programs to help you make the most of them.

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Retirement and

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Education assistance

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Aetna HealthFund with health reimbursementarrangement (HRA)* or High-Deductible Health Plan (HDHP) withHealth Savings Account (HSA)*Standard Dental or Enhanced Dental*Vision*

CrewCare health clinicShipShape fitness centerBiometric screeningBlood pressure screeningFlu shots

Health care FSADependent day care FSA

Base salaryBonusPartnership

Basic life/AD&D*Supplemental life/AD&D*Spousal life*Child life*Business travel accident insurance Hyatt Legal Services*

Academic Assistance Plan Dependent Scholarship Program Student Loan RepaymentAssistance Program

Your Total Rewardspackage includes ...

Crew Assistance Program2nd.MD TeladocHealth Smart Rewardswellness program

Paid time off (PTO) Purchased PTOParental leavePaid family care leavePersonal leaveCourt duty leaveBereavementShort-term disabilityLong-term disability*Adoption/Surrogacy benefits

Health care plans

Retirement plan contribution equal to 10%

Matching contribution up to 4%

*Can be elected upon hire.

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Crew MemberBenefits 2020

Welcome to VanguardAs you prepare for your career here, you’ll be taking in a lot of information and making many decisions. Some of these decisions involve selecting your benefits, and we understand this can be a challenge.

Vanguard has made a significant investment in our crew by offering a benefits package that supports you at every stage of your life and career and also helps balance the demands of work and home. We’d like to make it as easy as possible for you to choose the right benefits for your life.

This booklet provides an overview of Vanguard’s benefit offerings. For more detailed information, refer to the following documents:

• The Benefit Plan Summary Plan Description (SPD) provides full details on Vanguard’s extensive benefits package.

• The Summary of Benefits and Coverage (SBC) can help you understand our health plans and compare them with other individual coverage or employer plans available through your spouse or domestic partner, helping you to choose the best plan for you and your family.

• The Vanguard Retirement and Savings Plan (RSP) Summary Plan Description provides specific information on saving for retirement.

If you would like a printed copy of these documents, free of charge, contact Crew Central™ at 844-VG1-CREW (844-841-2739).

Explore your benefitsRead about the Benefit Plan.

Check out ALEX® for assistance with selecting your health benefits and tax considerations that can help you save money.

Review the included worksheets and prepare for the online enrollment process.

• Benefit Plan enrollment worksheet: Track your benefit elections.

• Dependent information worksheet: Collect information like Social Security numbers (SSN) and birth dates for all your eligible dependents—this is required for their medical coverage.

• Vanguard life and travel insurance beneficiary information worksheet: You need the SSN(s) for the beneficiary(ies) you wish to designate for this automatic coverage.

Make copies of dependent eligibility documentation.

Read about Vanguard’s Retirement Savings Plan (RSP). Vanguard offers automatic enrollment in the RSP. If you have a balance from an IRA or qualified retirement plan including 401(a), 401(k), 403(b)(7), or a governmental 457(b) plan with a previous employer, you can roll it over to your RSP account.

When you attend orientation, you’ll learn more about all of the great benefit programs available to you. Benefits representatives will also be available to answer any questions you may have and help you make your elections.

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Crew MemberBenefits 2020

Vanguard’s Benefit PlanYou must enroll within 30 days after your date of hire—you’ll be given the opportunity to elect coverage at orientation. Coverage begins on your first day of active employment; other than during Open Enrollment, you cannot change your benefits unless you experience a life event for a permitted election change (marriage, birth of a child, etc.).

Dependent eligibilityYou can choose health benefits for yourself and your eligible dependents, as follows:

• Your legally married spouse.

• Your eligible domestic partner.

• Any child under age 26,* including:

- A natural child, legally adopted child (including a child whom you are legally obligated to support in anticipation of adoption, even if the adoption is not yet final), foster child, or stepchild, or the child of an eligible domestic partner.

- A child for whom you’re required to provide medical coverage under a Qualified Medical Child Support Order.

• Any child who remains continuously mentally or physically disabled and is primarily dependent upon you for support.

*Coverage for dependent children will be extended to the end of the month of their 26th birthday.

If you’ll be choosing benefits for a dependent, you must supply documentation to verify their eligibility. For more information, please review Dependent eligibility for the Benefit Plan.

To cover a domestic partner and/or their child(ren) under your benefits, a notarized Affidavit of Domestic Partnership is also required. Please review domestic partner benefits for more information.

Crew married to crewIf you and your spouse are both crew members, you:

• Have the flexibility to elect your health benefits separately, or one of you may elect for the family.

• May contribute up to $2,750 each to a health care flexible spending account (FSA).

• May collectively contribute up to $5,000 total to a dependent day care FSA.

• Should elect a limited health care FSA if you or your spouse is enrolled in the High-Deductible Health Plan (HDHP) and considering a health care FSA so that you and your spouse remain eligible to make and receive health savings account (HSA) contributions.

• Must both waive spousal life insurance since you are each eligible for your own life insurance coverage.

• Should waive dependent child life insurance if your spouse has already elected it, since only one may elect this benefit.

• Should waive the legal services plan if your spouse has already elected it, since only one may elect this benefit.

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Crew MemberBenefits 2020

Dependent Required documentation

SpouseOne of the following:

• First page of your latest federal income tax return with the dollar amounts blacked out.

• Marriage contract or certificate from a church, synagogue, mosque, or other religious institution.

Dependent childrenunder age 26*

One of the following:

• First page of your latest federal income tax return with dollar amounts blacked out, if you are still claiming the child as a dependent. (Tax dependency is not a requirement for eligibility.)

• Birth certificate.

• Qualified Medical Child Support Order or legal guardianship papers.

• Adoption paperwork.

• Affidavit of Domestic Partnership, which includes a section for your domestic partner’s child(ren).

Domestic partner All of the following:

• Affidavit of Domestic Partnership.

• Proof of economic interdependency, such as a joint deed, mortgage, or lease and credit card agreement.

• Affidavit of Tax Dependency for Health Coverage (if your domestic partner is eligible for pre-tax coverage).

Contact Crew Central or visit Domestic partner benefits for more information.

Dependent eligibility for Benefit Plan coverage

The following are the acceptable forms of documentation to verify dependent eligibility. Please submit copies, not originals.

*If the child is over age 26 and disabled, a physician’s statement certifying that he or she is mentally or physically handicapped is required.

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Crew MemberBenefits 2020

Need some help? Ask

Vanguard offers an excellent benefits package. Make the most of your choices with the help of ALEX®, your online benefits counselor.

ALEX provides valuable, personalized guidance on Vanguard’s medical benefits and tax considerations that make electing the benefits that are a good fit for your life even easier.

In addition, ALEX can help you learn more about Vanguard’s dental and vision benefits, Hyatt Legal Services, and crew member life and disability insurance.

Get ready to enroll

Walk through your benefits options step-by-step with ALEX and get information, based on your specific situation and needs, to help you make your enrollment decisions. The benefits of using ALEX include:

• ALEX speaks in plain English—no insurance jargon!

• It’s totally anonymous. ALEX does not save or share any of your personal information with any third party, including Vanguard. Whatever you share with ALEX remains completely private and confidential.

• Each session is interactive, customized to you and your needs.

• You can easily compare health benefits and payroll contributions, side by side. ALEX shows you how expenses are covered and benefits are paid and also explains coverage components such as deductibles, coinsurance, copays, and out-of-pocket maximums.

• Your session with ALEX is closed-captioned, making it easy to follow along on screen.

• ALEX is accessible anywhere, anytime, from any computer, tablet, or smartphone with an internet connection.

• At the end of your session, ALEX will email you a summary of your selections, which you can use to complete your enrollment at orientation.

ALEX® is a tool to provide you with the personalized information you need to make your enrollment decisions, but it does not make the decisions or complete the enrollment process for you.

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Crew MemberBenefits 2020

Medical benefits

With Vanguard’s Benefit Plan, you can select from two medical benefit options, the Aetna HealthFund or the High-Deductible Health Plan (HDHP). There are no restrictions for preexisting medical conditions, and you may waive coverage if you have medical benefits through another source. Both options include:

• Prescription coverage.

• A Vanguard-provided contribution to a health fund account with the potential to earn more through the Health Smart Rewards wellness program to help offset your out-of-pocket costs.

• 100% in-network coverage for the cost of preventive care services.

• Shared cost of nonpreventive expenses through coinsurance.

• 100% in-network coverage when you reach the plan’s out-of-pocket maximums.

• The same extensive network of health care providers.

Aetna HealthFund

The Aetna HealthFund has a deductible and an account to help you offset that deductible; that account is referred to as a health reimbursement arrangement (HRA). Note: The Aetna HealthFund will not accept new enrollees after 2020 and will be discontinued at the end of 2021.

There are two deductible options for the Aetna HealthFund:

• A lower deductible ($950 individual; $1,900 family) with a higher payroll contribution.

• A higher deductible ($1,250 individual; $2,500 family) with a lower payroll contribution.

The HRA is fully funded by Vanguard and can be used to pay for nonpreventive medical expenses. Any unused HRA amounts will roll over until 2021 as long as you remain in the Aetna HealthFund, even if you change deductible options.

High-Deductible Health Plan (HDHP)

The HDHP has a deductible and an account to help offset that deductible. That account, referred to as a health savings account (HSA), receives a contribution from Vanguard and can receive pre-tax contributions from you as well. As an enrollee of the HDHP, your HSA is set up and automatically activated with HealthEquity.

An HSA offers triple tax advantages—tax-free contributions, tax-free earnings, and tax-free distributions for qualified health care expenses. HSAs are a great way to save for current and future health care costs. Plus, the balance is yours for life; HSA funds can be used for health care expenses in retirement.

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Crew MemberBenefits 2020

The HealthEquity HSA is initially set up as a cash account and may be maintained as such, but you also have the option of investing all or part of your HSA balance in a variety of Vanguard mutual funds with low expense ratios. HealthEquity will send a Welcome Kit, which includes a Visa® Health Account debit card to pay for qualified medical expenses. Unused HSA balances are carried over each year and are available even if you leave Vanguard.

If you enroll in the HDHP before December 1 of the current year, you are eligible to make contributions and receive employer contributions to an HSA in that year. The HSA must be opened and funded before qualified medical expenses can be reimbursed.

It is important to note that to be eligible to make or receive contributions to an HSA, you cannot be:

• Covered by another health plan that is not an HDHP, generally meaning that you do not have disqualifying health coverage that pays for any medical expenses before the HDHP deductible is met (except for certain limited preventive care expenses).

• Covered by a general purpose health care FSA. You (and your spouse) must elect the limited health care FSA.

• Receiving any benefits from Medicare (including Medicare Part A), generally meaning that you have not reached age 65.

• Claimed as a dependent on another person’s tax return.

Please notify Crew Central immediately if you are not eligible to make or receive contributions to an HSA. For more information on HRAs and HSAs, refer to HRA or HSA: Know the difference.

Balance Booster

New for 2020, Vanguard is offering HealthEquity’s Balance Booster program, providing early access to planned HSA payroll contributions. These funds are made available when you need them, giving you the peace of mind to know you can meet expenses, even if your account is not yet fully funded.

You can boost your elected payroll contributions to the HSA for the year, up to the difference between Vanguard’s contribution and your deductible:

• For individual HDHP enrollees, Vanguard contributes $600 toward your deductible of $1,500, so you can boost your elected annual planned payroll contributions, capped at $900.

• For family enrollees, Vanguard contributes $1,200 toward your deductible of $3,000, so you can boost your annual planned payroll contributions, capped at $1,800.

NoteNote: If you elect to make payroll contributions to the HSA, receive an advance of these payroll contributions through Balance Booster, and do not fully repay such advances through future payroll contributions, Vanguard is authorized to recoup these amounts directly from you. If any outstanding Balance Booster advances remain unpaid by the end of the calendar year, such remaining amounts will be included as taxable income on Form W-2 with any required taxes withheld.

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Crew MemberBenefits 2020

Prescription drug benefits

Dental benefits

Vision benefits

If you enroll in medical benefits through Vanguard, you’ll automatically receive prescription drug coverage through CVS Caremark. Prescription drug coverage cannot be elected separately.

You can purchase prescription drugs through both a nationwide network of participating pharmacies and a mail service program. Refer to the prescription plan drug lists for more information on pricing.

Vanguard provides two dental benefit options through Delta Dental: Standard and Enhanced. You’ll have different covered services and benefit reimbursement percentages depending on the option you choose. You can visit the dentist of your choice regardless of which option you choose, but your share of the cost will be lower when you visit an in-network dentist.

You may also visit a provider who is not in Delta Dental’s network, but your costs are the highest with this option. To find out whether your current provider is in Delta Dental’s network, visit deltadentalins.com/vanguard.

Preventive cleanings

To encourage preventive cleanings, Vanguard offers incentives for those covered under the dental benefits. If you have at least one preventive cleaning and exam in a calendar year, you’ll have an increased annual limit for dental services in the following calendar year. Two consecutive years of preventive cleanings will be rewarded with a doubling of the previous annual limit increase.

Vanguard offers a vision option administered by VSP. Vision coverage can be elected even if you waive medical coverage.

Within the calendar year of the benefit, the plan covers:

• Full coverage for exams and contact lens evaluations and fittings in-network; specified reimbursements for out-of-network providers.

• Two pairs of corrective glasses, or two pairs of contact lenses, or one pair of corrective glasses and one pair of contact lenses

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Crew MemberBenefits 2020

Flexible spending accountsFlexible spending accounts (FSAs) allow you to pay for qualified out-of-pocket expenses on a pre-tax basis.The Benefit Plan includes two types of FSAs: a health care FSA and a dependent day care FSA.

You may elect to participate in one, both, or neither of these accounts, but these accounts cannot be used interchangeably.

For more information, visit IRS.gov and refer to Publication 502 for eligible health care expenses and Publication 503 for eligible dependent day care expenses.

Health care FSA

You can deposit up to $2,750 annually into your health care FSA. Married crew members may contribute $2,750 each. You can choose between two types of health care FSAs: a general purpose health care FSA or a limited health care FSA.

If your spouse is enrolled in an HDHP, consider electing a limited health care FSA so your spouse can remain eligible to make and receive HSA contributions. If you elect the HDHP, you should elect the limited health care FSA so you remain eligible to make and receive HSA contributions.

The limited FSA can be used immediately for dental, vision, and preventive prescription drug expenses, but you must meetmust meet the plan deductible before you can use the limited FSA for medical and nonpreventive prescription drug expenses. Based on the flexibility of the HSA and the fact that your contributions never expire, it’s recommended that you only contribute to the FSA if you’ve maximized your HSA contributions and have expected dental, vision, and preventive drug expenses in 2020 that you’d like to pay for with pre-tax dollars while keeping your HSA balance intact.

Dependent day care FSA

If you’re single, or married and file a joint tax return, you may deposit up to $5,000 annually into a dependent day care FSA. If you’re married and file a separate tax return, you may each deposit up to $2,500 annually.

Dependents whose day care expenses are eligible for reimbursement under this FSA are:

• Children under age 13, or over age 13 with disabilities, whom you claim as tax dependents.

• Anyone you claim as a tax dependent—including your spouse, parents, or your spouse’s parents— who lives with you and is physically or mentally incapable of self-care.

Dependent Day Care Subsidy Program

Vanguard may provide a subsidy to your elected dependent day care FSA to help pay for your day care expenses. For 2020, your combined annual household income must be less than $78,950, including a spouse’s income, if applicable. If eligible, your dependent day care FSA contribution will be offset by 30%, up to an annual maximum of $1,500.

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Crew MemberBenefits 2020

Life insurance

Basic life insurance

Vanguard provides you with basic life insurance at no cost to you:

• A flat $50,000 coverage option (no imputed income taxes); or

• Coverage equal to two times your direct pay, up to a maximum of $1 million (with imputed income taxes for cost of coverage above $50,000). See the Benefit Plan SPD for more information.

Your direct pay includes your annual base salary as of your date of hire.

Supplemental life insurance

If you choose two times your direct pay for basic life, you may also elect to purchase up to seven times your direct pay in supplemental life insurance coverage (up to $1.5 million).

You may increase your supplemental life insurance from year to year by the amount of increases to your direct pay, up to $1.5 million, or you may reduce your multiple of direct pay election yearly without restrictions.

If you elect more than $500,000 in supplemental life insurance, you must satisfy evidence of insurability (EOI) requirements. If you waive supplemental life insurance during the new hire enrollment period and choose to elect it in the future, you will need to satisfy EOI requirements before the coverage is effective.

Your accidental death and dismemberment (AD&D) coverage amount will mirror your life insurance coverage amount, at no additional cost to you.

Spousal life insurance

Vanguard offers six different life insurance options for your spouse or domestic partner (DP), with coverage ranging from $10,000 to $100,000, for which you will be the beneficiary.

However, the amount you purchase for your spouse or DP cannot exceed 50% of the amount of your Vanguard supplemental life insurance, and you’ll need to satisfy evidence of insurability (EOI) requirements if you elect more than $40,000 in spousal life insurance.

If you waive spousal life insurance during the new hire enrollment period and wish to elect it in the future, you will need to satisfy EOI requirements before the coverage is effective.

If you and your spouse or DP are both crew members, neither of you may elect spousal life insurance on the other one as you will each receive your own basic life insurance.

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Crew MemberBenefits 2020

Long-term disability coverage

Legal services

Dependent child life insurance

You can choose one of three life insurance options for dependent children. You can cover any number of dependent children under this option for the same per-pay cost, but each must be under age 26. You are the beneficiary of the dependent child life insurance option you elect.

If you and your spouse are both crew members, only one of you can elect dependent child life insurance.

Long-term disability (LTD) insurance is designed to provide you with income should you become disabled and unable to work, and it is provided to all benefits-eligible crew members. Your benefit will provide 662/3% of your direct pay less any other disability income benefits for which you may be eligible. Vanguard will provide you with a credit in your paycheck equal to the full cost of this coverage and will deduct the premium from your paychecks.

You cannot waive LTD coverage. You just need to choose whether to use pre-tax or after-tax dollars to pay for this coverage. Consider the tax consequences of each option:

• • Pre-tax dollarsPre-tax dollars. If you become disabled, your LTD benefits will be subject to federal income tax and (if applicable) state and local income tax.

• • After-tax dollars.After-tax dollars. If you become disabled, your LTD benefits will be exempt from federal income tax, if applicable, and possibly state and local income tax.

You’ll need to base your decision to pay on a pre- or after-tax basis on your own personal circumstances.

Your direct pay includes your annual base salary as of your date of hire.

Vanguard offers optional personal legal services coverage to crew members, their spouses and domestic partners, and children up to age 26.

The provider, Hyatt Legal Plans, gives you access to a nationwide network of more than 2,500 law firms. Members of these firms—plan attorneys—provide complete representation on a variety of legal matters. Office consultations and telephone advice are fully covered. For more detailed information, refer to Hyatt Legal Services overview.

Life insuranceLife insuranc

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Crew MemberBenefits 2020

Changing your benefit elections during the plan year

Generally, you cannot change your benefit elections (including covered dependents) until the next annual Open Enrollment period, unless you experience a life event for a permitted election change, as defined by the IRS and the Benefit Plan SPD. Election changes during the year must be consistent with the event (e.g., if you get married, you can add your spouse to your Health Benefits coverage). While we provide some highlights below, please refer to the Benefit Plan SPD or call Crew Central for more information.

Special enrollment rights

If you do not enroll during either of these enrollment periods, and if you have declined enrollment for yourself or your dependents (including your spouse) because you have other medical insurance coverage, you can subsequently enroll yourself or your dependents, provided you request enrollment within 30 days after your (or your dependents’) other medical coverage ends.

In addition, if you have a new dependent as a result of marriage, birth, adoption, or placement for adoption, you may enroll yourself and your dependents, provided that you request enrollment within 30 days after the marriage, birth, adoption, or placement for adoption.

However, if you decline enrollment for yourself or your dependents (including your spouse) because you have medical coverage under Medicaid or CHIP, you have 60 days after the termination of that coverage to request enrollment for yourself or your dependents. In addition, if you or your dependent becomes eligible for Medicaid or CHIP, you have 60 days after eligibility is determined to notify Crew Central if you want to make a change to your benefit elections.

To request special enrollment or obtain more information, please refer to the Benefit Plan SPD or contact Crew Central.

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Crew MemberBenefits 2020

Additional best-in-class benefits

As a Vanguard crew member, you’re eligible for many more outstanding benefits. Vanguard provides help with education assistance, life events, health and wellness, time out of the office, and access to savings. These benefits are generally available to eligible crew throughout the year.

On-site services: CrewCare and ShipShape

CrewCare is an on-site health clinic and physical therapy facility, with locations in Malvern, PA, Charlotte, NC, and Scottsdale, AZ. CrewCare offers a variety of primary and acute health care services, physical therapy, counseling, and more.

ShipShape is a professionally staffed, state-of-the-art fitness center that offers a full range of programs and services to help you get and stay fit, all for just $15 a month.

Health Smart Rewards. Vanguard’s Health Smart Rewards wellness program provides opportunities for you and your covered spouse or domestic partner to earn up to $500 each for actively managing your health. Please note that due to the September 30 biometric screening deadline, only crew hired before September 1 will be able to earn rewards for the current calendar year.

2nd.MD. This service is offered as an exclusive benefit to our health plan enrollees. With 2nd.MD, you will have convenient access to a virtual second opinion via phone or video chat to confirm a diagnosis or treatment plan at no cost, making it easy for you to see a needed specialist, no matter their location.

Teladoc. Get faster, easier, more convenient access to a doctor with Teladoc for you and your covered dependents enrolled in Vanguard medical benefits. Contact a licensed general practice provider 24/7 for common illnesses such as colds and flu. You can also request a consultation with a licensed dermatologist for complex or ongoing conditions, or meet with a licensed behavioral health clinician via video chat. See costs for Teladoc services in the medical services chart on page 21 of this booklet.

Carebridge. This service helps support you and your eligible dependents in managing issues related to work and life, including assistance in finding child and elder care resources, college planning, and the Crew Assistance Program.

Only 29% of employers have

an onsite fitness center.

Only 8% of employers have

Through CrewCare, crew have access to quality health care services at low out-of-pocket costs.

an onsite health clinic.

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Crew MemberBenefits 2020

Additional best-in-class benefits

Education assistance

Academic Assistance PlanIf you are a full-time crew member, this plan provides reimbursement of up to $9,000 per calendar year for tuition and books if you enroll in eligible graduate and undergraduate courses at accredited institutions.

Dependent Scholarship ProgramIf you are a full-time crew member, once you have completed at least two years of full-time Vanguard service, you’ll be eligible to apply for a $1,000 taxable scholarship award per child per year for each eligible dependent child’s post-secondary education tuition, up to a maximum benefit of $4,000 per eligible dependent child.

Student Loan Repayment Assistance ProgramIf you are a full-time crew member and graduated from an accredited undergraduate or graduate degree program within the past five years, you are eligible to apply for a monthly $100 taxable benefit paid directly to your student loan servicer. There is a lifetime cap of $7,200, and there is an annual limit of $9,000 between academic assistance and student loan repayment assistance.

Only 8% of employers offer

Vanguard provides up to $100/month assistance to help eligible crew pay down their student loan debt.

student loan repayment.

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Crew MemberBenefits 2020

Life events

Adoption Assistance ProgramIf you are a full-time crew member, this benefit offers financial assistance—based on annual IRS limits—for adoption-related expenses, such as agency and legal fees, counseling, uninsured maternity expenses for the birth mother, and other eligible expenses.

Surrogacy Assistance ProgramIf you are a full-time crew member, this benefit provides taxable financial assistance for expenses associated with using a surrogate to assist in carrying and giving birth to a child. Similar to adoption assistance, reimbursement will be provided for agency and legal fees, counseling, uninsured maternity costs for the birth mother, and other eligible expenses.

Find out more about these programs here.

Time out of the office

Paid time off (PTO) is based on tenure, grade level, and scheduled weekly hours. Up to one work week of PTO may be carried over into the next year. Please note, time not used by March 1 will be forfeited.

Vanguard also provides a benefit option that allows you to purchase additional PTO through payroll deduction, beginning in your first full year of employment. Purchased PTO cannot be carried into the next calendar year. Refer to the Paid Time Off (PTO) Policy for full details.

Short-term disability (STD), provided by Vanguard, short-term disability offers income replacement benefits based on tenure and grade level to eligible crew members who are unable to work because of a qualifying illness or injury. Mothers giving birth are eligible for up to ten weeks of disability pay.

Parental leave. Vanguard provides up to six weeks of paid parental leave to eligible crew with at least 12 months of service to bond with your new child and adjust to your new family situation.

Paid family care leave. This policy provides up to two weeks of paid family care leave to eligible crew members with at least 12 months of service caring for a seriously ill family member.

Additional best-in-class benefits

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Crew MemberBenefits 2020

Additional best-in-class benefits

Spend wisely and save

CrewPerks

CrewPerks is your online resource for group auto, home, and pet insurance discounts, as well as identity theft protection and savings on hundreds of products from brand name and local retailers, available through My Discounts, Vanguard’s online discount program. CrewPerks is provided by Vanguard in partnership with Mercer Voluntary Benefits.

Vanguard Investment Plan

The Vanguard Investment Plan (VIP) gives you the opportunity to invest in the Vanguard STAR® Fund and the Target Retirement Funds on an automatic schedule with an initial investment of as little as $25. VIP accounts may be registered as individual, joint, or Uniform Gifts/Transfers to Minors Act (UGMA/ UTMA) accounts. They’re also exempt from fees that would otherwise be assessed, although they’re subject to Vanguard’s exchange policy.

%

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Crew MemberBenefits 2020

The Vanguard Retirement and Savings Plan

A great plan for your future

Another best-in-class benefit Vanguard provides is the Retirement and Savings Plan (RSP)—and getting started in the plan is easy and convenient. That’s because with the RSP:

• You’ll be enrolled automatically at a pre-tax contribution rate of 4% of your eligible pay.

• Your investment election is automatically made for you.

• Your crew contribution rate will increase automatically every year.

You’ll receive more details via email, including information on how to change these elections and name your beneficiaries.

Participating in the RSP is one of the best ways to save for a comfortable retirement. Here’s why:

• Tax advantages. With the RSP, you can reduce your taxable income by making pre-tax contributions, and investment returns are tax-deferred. You can also make some or all of your contributions on a Roth after-tax basis, which can give you tax-free income in retirement, including your investment returns.*

• Vanguard contributions. After you complete one year of service, Vanguard will make fully vested matching contributions to your account. Here’s how it works: For every $1 you contribute up to 4% of your eligible pay, Vanguard will contribute $1. In addition, beginning from your date of hire, Vanguard will make a retirement contribution equal to 10% of your eligible pay every quarter regardless of how much you contribute. Quarterly contributions are fully vested after six years of service.

• Flexibility. While the purpose of the RSP is to help you save for retirement, the plan does offer a loan option and hardship withdrawals.

• Help when you need it. If you’d prefer not to use the automatic investment funds and have someone else manage your investments, the RSP also offers professional advice services.

• Consolidated savings. You can roll over money from other employer plans to the RSP, even if you choose not to contribute.

Vanguard Retirement and Savings Plan contribution is almost 57% higher than what is offered by other employers.

Vanguard matches your contributions up to 4% and provides 10% quarterly contributions.

Vanguard

Other employers

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Crew MemberBenefits 2020

How the RSP stacks up

Vanguard provides investment management and recordkeeping services for nearly 2,000 employer plans. Out of those retirement plans, only 40% provide both an employer match and additional employer contributions.** The RSP is one of those plans.

Among plans that offer both types of contributions, Vanguard’s total contribution is almost 57% higher than the average.

For more information

To learn more about the RSP, refer to Vanguard Retirement and Savings Plan or the Summary Plan Description. Be sure to also check out the education and tools available at vanguard.com/education.

All investing is subject to risk, including the possible loss of the money you invest.

Advice is provided by Vanguard Advisers, Inc., a federally registered investment advisor. Eligibility restrictions may apply.

*Tax implications: You will be responsible for paying any federal, state, local, or foreign taxes on a distribution or withdrawal from pre-tax accounts. A distribution or withdrawal of Roth 401(k) earnings is usually also taxable unless the initial Roth contribution was made more than five years ago and you are at least age 59½. Early withdrawals may be subject to a 10% federal penalty tax. To the extent required by law, Vanguard will make the appropriate withholding for tax purposes.

**Source: How America Saves, 2017.

Vanguard

Average

2.00%0.00% 10.00%6.00%4.00% 12.00% 14.00% 16.00%8.00%

8.90%

14.00%

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Crew MemberBenefits 2020

Medical plan comparison chartsAetna HealthFund HDHP

In-network Out-of-network CrewCare In-network Out-of-network CrewCare

Preventive care $0, no deductible, no coinsurance

30% after deductible $0

$0, no deductible, no coinsurance

40% after deductible $0

Nonpreventive care

Office visit (primary/specialist)

10% after deductible

30% after deductible

$10 copayment

20% after deductible

40% after deductible

Before deductible: $35; After deductible: $7

Teladoc Before deductible: $40After deductible: $4 NA

Before deductible: $40 After deductible: $8 NA

Physical therapy 10% after deductible

30% after deductible

$10 copayment

20% after deductible

40% after deductible

Before deductible: $35; After deductible: $7

Allergy treatmentExam–10% after deductible Shots–$0, no deductible, no coinsurance

Exam and shots–30% after deductible

Exam–$10 copaymentShots–$0, no deductible, no coinsurance

Exam–20% after deductible Shots–$0 after deductible, no coinsurance

Exam and shots–40% after deductible

Exam and shots– Before deductible: $35; After deductible: $7 (exam)/$0 (shots)

Dermatology Office visit 10% after deductible

30% after deductible

NA

20% after deductible

40% after deductible

NATeladoc Before deductible: $75

After deductible: $7.50Before deductible: $75After deductible: $15

Emergency room visit 10% after deductible

10% after deductible

NA

20% after deductible

20% after deductible

NA

Delivery of baby and postpartum office visits

10% after deductible

30% after deductible

20% after deductible

40% after deductible

X-ray, MRI, CAT scan, PET scan, blood test

Outpatient surgery

Inpatient hospitalization

Speech and occupational therapy services

Chiropractic visit services

NA

Behavioral Health

Office visit10% after deductible

30% after deductible

NA

20% after deductible

40% after deductible

TeladocPsychiatrist consultation– Initial visit:Before deductible: $160After deductible: $16Subsequent visits:Before deductible: $90After deductible: $9

Psychiatrist consultation– Initial visit:Before deductible: $160After deductible: $32Subsequent visits:Before deductible: $90After deductible: $18

Master’s level therapist–Before deductible: $80After deductible: $8

Master’s level therapist– Before deductible: $80After deductible: $16

NoteNote: This summary only provides an overview of certain benefits provided by Vanguard; further details can be found in the formal plan documents for these benefits. If there is a conflict between this summary and the formal plan documents, the formal plan documents are the final authority and will govern in all cases. Vanguard has the right to amend, modify, or terminate these benefits at any time.

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Crew MemberBenefits 2020

Medical plan components

Aetna HealthFund HDHP

Deductible • With family coverage, one person can meet the individual deductible.

• Only nonpreventive medical expenses apply toward the deductible

• With family coverage, you pay for medical services and prescriptions until you meet the family deductible.

• Nonpreventive medical and prescription expenses apply toward the deductible.

$950 individual; $1,900 family*

$1,250 individual; $2,500 family*

$1,500 individual; $3,000 family*

Vanguard’s annual contribution to health fund account**

Health reimbursement arrangement (HRA)

$150 individual; $300 family*

Health savings accounts (HSA)

$600 individual; $1,200 family*

Coinsurance 10% in-network; 30% out-of-network

20% in-network;40% out-of-network

Out-of-pocket maximum

• With family coverage, one person can meet their own individual out-of-pocket maximum.

• Separate medical and prescription out-of-pocket maximum costs.

• No individual out-of-pocket maximum for family coverage.

• Medical and prescription out-of-pocket expenses apply to the combined out-of-pocket maximum.

Medical–

$1,900 individual; $3,800 family*

Prescription–

$2,500 individual; $5,000 family*

Medical–

$2,500 individual; $5,000 family*

Prescription–

$2,500 individual; $5,000 family*

Medical and prescription combined–

$3,500 individual; $7,000 family*

*Family coverage is a crew member and at least one dependent.

**Can earn more through Health Smart Rewards.

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Crew MemberBenefits 2020

Prescription drug coverage

Aetna HealthFund HDHP

Fully Covered Drug List* $0 $0

Annual deductible $0 Nonpreventive medical and prescriptionexpenses apply toward the deductible:$1,500 individual;$3,000 family**

30-day supply (retail pharmacy)

Generic $10 copay Preventive*: $10, no deductible Nonpreventive: 20% after deductible

Preferred brand name 20% coinsurance (minimum $25; maximum $85)

Preventive*: 20% coinsurance (minimum $25; maximum $85) Nonpreventive: 20% after deductible

Nonpreferred brand name 30% coinsurance (minimum $40; maximum $160)

Preventive*: 30% coinsurance (minimum $40; maximum $160) Nonpreventive: 20% after deductible

90-day supply (mail service or CVS/pharmacy)

Generic $25 copay Preventive*: $25, no deductible Nonpreventive: 20% after deductible

Preferred brand name20% coinsurance (minimum $62.50; maximum $212.50)

Preventive*: 20% coinsurance (minimum $62.50; maximum $212.50) Nonpreventive: 20% after deductible

Nonpreferred brand name30% coinsurance (minimum $100; maximum $400)

Preventive*: 30% coinsurance (minimum $100; maximum $400) Nonpreventive: 20% after deductible

Out-of-pocket maximum

$2,500 individual; $5,000 family**

Medical and prescription out-of-pocket expenses apply to the combined out-of-pocket maximum:

$3,500 individual; $7,000 family**

*See Prescription plan drug lists for more information.

**Family coverage is a crew member and at least one dependent.

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Crew MemberBenefits 2020

Coverage tier

Medical

Aetna Health FundHDHP

$950/$1,900 $1,250/$2,500

Crew member (CM) $30.60 $21.86 $15.30

CM and spouse/domestic partner (DP) $90.70 $69.94 $53.54

CM, spouse/DP, and one child $123.48 $98.35 $71.03

CM, spouse/DP, and two children $157.36 $125.67 $87.42

CM, spouse/DP, and three children $191.23 $154.08 $104.90

CM, spouse/DP, and four or more children $232.76 $189.05 $125.67

CM and one child $53.54 $39.34 $36.06

CM and two children $87.42 $67.75 $52.45

CM and three children $121.30 $95.07 $68.84

CM and four or more children $166.10 $133.32 $91.79

Your 2020 payroll contributions Vanguard coverage costs for full-time crew are below. To view all bi-weekly contributions, search “crew costs for health benefits”.

You can get personalized guidance and cost estimates for your specific situations by using the interactive ALEX® tool.

Dental and vision

Coverage tierDental Vision

Standard Enhanced

Crew member (CM) $4.30 $8.60 $6.32

CM and spouse/domestic partner (DP) $8.60 $17.20 $11.49

CM, spouse/DP, and one child $12.90 $24.72 $15.32

CM, spouse/DP, and two children $16.12 $33.32 $19.16

CM, spouse/DP, and three children $20.42 $40.84 $22.35

CM, spouse/DP, and four or more children $24.72 $48.36 $27.46

CM and one child $8.60 $16.12 $10.21

CM and two children $11.82 $24.72 $14.04

CM and three children $16.12 $32.24 $17.88

CM and four or more children $20.42 $39.77 $25.54

Medical

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Crew MemberBenefits 2020

Health savings account contribution via paycheck deduction* (HDHP enrollees only)

Annual pledge amount ÷ pay periods remaining in current year =

Cost per pay period $ c I do not want to contribute.

*Maximum annual contribution via paycheck deduction is $2,450 for individual coverage; $4,900 for family coverage with a spouse or domestic partner; $5,400 for family coverage without a spouse or domestic partner. The catch-up provision allows you to contribute an additional $1,000 to your HSA if you reach age 55 by December 31 of the plan year.

Dental

Cost per pay period $

Vision

Cost per pay period $

Domestic partner imputed income and other information are available at corporate orientation and online at Crew costs for health benefits.

Worksheet: 2020 Benefit Plan enrollment

Medical coverageAetna HealthFund HDHP Dental Vision

$950 individual; $1,900 family

$1,250 individual; $2,500 family

$1,500 CM only; $3,000 CM and at least one dependent

Standard Enhanced

Crew member (CM)

CM and spouse/domestic partner (DP)

CM and one child

CM, spouse/DP, and one child

CM, spouse/DP, and two children

CM, spouse/DP, and three children

CM, spouse/DP, and four or more children

CM and two children

CM and three children

CM and four or more children

Waive coverage

You will become a benefits-eligible crew member on your first day of employment. To prepare for online enrollment during orientation, review your benefit options and complete this worksheet.

Crew member name : Crew ID : Date :

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Crew MemberBenefits 2020

Worksheet: 2020 Benefit Plan enrollment

Health care flexible spending account*

Annual pledge amount ÷ pay periods remaining in current year =

Elect c

Waive coverage c

Cost per pay period $

*Maximum annual contribution is $2,750.

Life insurance

Basic (must elect one of the two options below)

$50,000 c

2 x your direct pay c

Supplemental life insurance

1 x your direct pay c

2 x your direct pay c

3 x your direct pay c

4 x your direct pay c

5 x your direct pay c

6 x your direct pay c

7 x your direct pay c

Waive coverage c

Cost per pay period $

Dependent day care flexible spending account**

Annual pledge amount ÷ pay periods remaining in current year =

Elect c

Waive coverage c

Cost per pay period $

**Maximum annual contribution is $5,000.

Long-term disability (must elect one of the two options below)

Pre-tax c

After-tax c

Cost per pay period $

(Enrollment system will help you determine your per-pay cost.)

Spousal life insurance

Coverage amount Cost per pay period

$10,000 c

$20,000 c

$40,000 c

$60,000 c

$80,000 c

$100,000 c

Waive coverage c

Cost per pay period $

Dependent child life insurance

Coverage amount Cost per pay period

$2,500 c $0.10

$5,000 c $0.20

$10,000 c $0.41

Waive coverage c

Cost per pay period $

Legal services coverage Cost per pay period

Hyatt Legal Services c $7.62

Waive coverage c

Cost per pay period $

Total cost per pay period $

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Crew MemberBenefits 2020

Worksheet: Dependent informationUse this worksheet to compile the names, Social Security numbers, and birth dates for those you want to list as dependents as you will need this information to enroll online during orientation.

You must also bring documentation to verify dependent eligibility. Refer to this list of acceptable forms of documentation. If you have no dependents, you may skip this worksheet.

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Benefit(s) you want this person to have:

c Medical c Dental c Vision

Disabled:

c Yes c No

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Benefit(s) you want this person to have:

c Medical c Dental c Vision

Disabled:

c Yes c No

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Benefit(s) you want this person to have:

c Medical c Dental c Vision

Disabled:

c Yes c No

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Benefit(s) you want this person to have:

c Medical c Dental c Vision

Disabled:

c Yes c No

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

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Crew MemberBenefits 2020

Secondary beneficiaries

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Telephone number

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Distribution %

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Telephone number

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Distribution %

Percentages must total 100%.

Primary beneficiaries

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Telephone number

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Distribution %

Name (last, first, middle initial)

Social Security number

Birth date

Relationship

Telephone number

Same address as crew member?

c Yes c No

If no, what address?

City State Zip code

Distribution %

Percentages must total 100%.

Worksheet: Vanguard life and travel insurance beneficiariesUse this worksheet to designate beneficiaries for your Vanguard life and travel insurance during orientation. Your designations must be in whole numbers and must total 100%.(For example, you might have one primary beneficiary at 70% and a second primary beneficiary at 30%.)

Since all benefits-eligible crew members receive basic life insurance and travel insurance, you will be required to provide this information online during orientation.

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Crew MemberBenefits 2020

Contact information

Provider Toll-free number Website

Aetna medical plans flexible spending accounts (FSAs) and wellness program

800-938-0512 (Aetna)844-729-3539 (PayFlex)

aetna.com (medical) payflex.com (FSA)

2nd.MD 866-410-8649 2nd.md/aetna

Carebridge crew assistance program (CAP) and other work-life resources

800-437-0911 myliferesource.com

Cigna long-term disability 800-36-Cigna (800-362-4462) mycigna.com

CVS Caremark prescription drug coverage 866-559-6903 caremark.com

Delta Dental 800-471-1282 deltadentalins.com/vanguard

EdAssist Academic Assistance Plan, Dependent Scholarship Program, Student Loan Repayment Assistance Program

855-729-5960

tamsonline.org/vanguard (Academic Assistance Plan and Dependent Scholarship Program)

tamsonline.org/Vanguardloanrepay(Student Loan Repayment Assistance Program)

HealthEquity health savings accounts (HSA)

866-346-5800 learn.healthequity.com/vanguard/hsa/

Hyatt Legal Plans 800-821-6400 legalplans.com

Mercer Voluntary Benefitsinsurance/protection and My Discounts 866-324-4086 vanguardcrewperks.com

Minnesota Lifelife insurance 866-293-6047 lifebenefits.com

Sedgwickshort-term disability, FMLA, parental leave, paid family care leave

800-495-2310 claimlookup.com/vanguard

Teladoc 855-Teladoc (855-835-2362) member.teladoc.com/aetna

Vanguard Participant ServicesRetirement and Savings Plan

800-523-1188 or Ext. 42000 vanguard.com/retirementplans

Vision Service Plan (VSP) 800-877-7195 vanguard.vspforme.com

Prior to your hire date, if you have questions, call Crew Central at 844-VG1-CREW (844-841-2739). The contact information below is for future reference.

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Crew MemberBenefits 2020

© 2020 The Vanguard Group, Inc. All rights reserved.

Connect with Vanguard®: crewnet.vanguard.com

Have a general question about your benefits?

Call Crew Central at 844-VG1-CREW (844-841-2739) or Ext. 1CREW (12739).

Need a phone number or web address for a benefit provider?

Please refer to the contact information table on page 29.

All investing is subject to risk, including the possible loss of the money you invest.

For more information about Vanguard funds, visit vanguard.com or call 800-523-1188 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

This summary only provides an overview of certain benefits provided by Vanguard; further details can be found in the formal plan documents for these benefits. If there is a conflict between this summary and the formal plan documents, the formal plan documents are the final authority and will govern in all cases. Vanguard has the right to amend, modify, or terminate these benefits at any time. No consent of any participant or beneficiary is required for Vanguard to exercise its right to do so. Vanguard does not have any obligation to – and nothing contained this summary shall be construed as creating an express or implied obligation or promise on the part of Vanguard to -- maintain or continue to offer these benefits. Eligibility to participate in or receive benefits does not constitute a promise or right of continued employment or render any person a crew member of Vanguard.