2005 Employee Benefit Profile for Sample Employee

1 2005 Employee Benefit ProfileforSample EmployeeDear Sample ,This statement is a brief outline of the benefits that are provided to you by Reliance Bank, as well as the cost of those benefits for 2005. Please read this information carefully. If there is a specific Benefit that you would like to discuss in further detail, please do not hesitate to contact the Human Resource Department. I encourage you to share this information with your family. It is my hope that your Benefit package will provide added security for you and your family members. I appreciate your contribution to the continued success of our ,Timothy Sissler, President2005 Gross Annual Wages:$23, *Pay for Time Worked:$20, **Taxable benefits :$2, **Non-Taxable benefits :$11, are 73% of Pay For Time WorkedTOTAL COMPENSATION:$35, or 42% of Total Compensation. The bar chart below illustrates the portion of your benefits for which Reliance Bank pays compared to what you pay for your January 1, 2005, the health care plan was moved to Highmark bluecross blueshield of western PA.

2 This plan provided coverage for routine exams, immunizations, hospital, doctor, and other charges stemming from treatment of an injury or illness. Medical care that was performed by an in- network provider was subject to a $1,000 individual deductible ($2,000 family) and a 10% coinsurance payment. Medical care was also available by out-of-network providers subject to a $2,000 individual deductible ($4,000 family) and a 70% coinsurance payment. In order to help offset the Employee out of pocket expense the Bank reimbursed any in-network deductible and coinsurance charges that were incurred through a Medical Expense Reimbursement Plan (MERP). The out of network deductible and coinsurance does not qualify for reimbursement by the MERP. Retail prescription drugs were covered under the plan at participating pharmacies subject to a $5 copayment for generic drugs, a $15 copayment for preferred brand name drugs, and a $35 copayment for non-preferred brand name drugs.

3 There was a mail order program available that provided a 90 day supply of maintenance drugs for only two times the retail copayment charge. For information on the health care program please see your plan booklet or contact the Human Resource portion of the medical premium was $1, and the employer paid portion is shown to the right.$5, 2005, you received the medical expense reimbursement amount shown to the right.$ Bank provides a dental program to its full-time employees through a Direct Reimbursement Plan. This plan allows you and your eligible dependents to select the dentist of your choice, receive treatment, and then submit proof of payment to the plan administrator for reimbursement. The plan has a four tier reimbursement schedule based on the dollar amount of the expense. The maximum amount of Benefit per year is $1,000 per enrolled participant. Please see the Human Resource Manager for more information on this plan.

4 Your portion of the dental premium was $ and the employer paid reimbursement amount you received is shown to the right.$ Bank provides vision care coverage to all employees through National Vision Administrators (NVA). When you or your eligible dependents use an NVA participating provider, you will receive a discount at the time of service by showing the discount card. No claim forms are submitted and no reimbursements are given. Some of the services discounted in this plan include your routine eye examinations, lenses, frames, and contacts. Please consult your plan booklet for more information or see the Human Resource Manager. The premium for providing this employer paid Benefit is shown to the right.$ a full-time Employee of Reliance Bank you are eligible to participate in the Flexible benefits Plan. There are three parts to this Benefit . The first part of the plan, a Salary Redirection Agreement, allows you to pay for your portion of the group medical and dental premiums on a pretax basis.

5 The second part of the plan, the Medical Spending Account, enables you to set aside dollars from your paycheck on a pretax basis for your out-of-pocket medical, dental, and vision expenses. These include but are not limited to office visit copays, prescription drug copays, over-the-counter drugs, dental, and orthodontia expenses. The maximum amount you may defer is $2,000 per plan year. The third part of the plan, the Dependent Care Account, enables you to pay for your out-of-pocket, work-related dependent day-care/adult-care expenses on a pretax basis. The maximum amount you may defer is $5,000 per plan year, or $2,500 if you are married and filing a separate tax order to encourage participation and help fund the medical and dependent care accounts Reliance Bank contributes to each eligible Employee $ per pay period, to a maximum of $ per plan year. You have elected to defer an additional $ to the Medical Spending Account and $ to the Dependent Care Account.

6 Please see your Summary Plan Description or the Human Resource Manager for more information on this plan. The Bank will have contributed the amount shown to the right for your Benefit this plan year. $ the event you are unable to work because you are medically disabled you will be eligible to receive short-term disability benefits . A medical disability is defined as any medical condition lasting five (5) or more consecutive working days which makes your absence from work unavoidable. This disability must be documented by a physician, in addition, the Bank reserves the right to request a second medical opinion from a physician selected by the Bank at Bank expense. These short-term disability benefits will be paid for a period up to ninety (90) employees medically disabled for more than ninety (90) consecutive days are paid long-term disability benefits on the basis of of their current monthly earnings to a maximum of $5,000 per month.

7 Disability benefits continue to age 65 or until your disability ends as defined in the contract. It is important to note that this Benefit is integrated with statutory disability benefits such as Workers' Compensation and Social Security. As of December 2005 your monthly long-term disability Benefit was equal to $1, The premium for providing this employer paid Benefit is shown to the right.$ Bank is pleased to partner with you in providing for your retirement. Our tax-deferred 401(k) plan offers you the ability to contribute a portion of your annual compensation on a pretax basis to the plan, subject to the limits established by the Plan and statutory limits. The Bank may also make discretionary matching and/or profit-sharing contributions to the plan. You are eligible to participate in the plan once you have completed six (6) months of service, provided that you are twenty-one (21) years old.

8 Please see the Summary Plan Description or the Human Resource Manager for more information on this 2005, your tax deferral contribution to the 401(k) Plan was $1, Your employer matching contribution for 2005 is shown to the right. $ 2005, the Bank made a 3% Discretionary Employer contribution per pay on your behalf of the amount shown to the right.$ a result of the performance of the 2004 "At Risk" Compensation Plan, the Bank was pleased to be able to make an additional Discretionary Profit Sharing contribution on your behalf of the amount shown to the right.$ Reliance Bank provides group life insurance benefits , with an accidental death and dismemberment (AD&D) feature, to all full-time employees in an amount equal to two (2) times your annual salary rounded to the next highest $1,000, to a maximum of $150,000. The face value of your group life and AD&D benefits as of December 31, 2005, was equal to $44,000.

9 The premium for providing this employer paid Benefit is shown to the right.$ full-time and part-time employees of Reliance Bank qualify for vacation days providing opportunities for rest, relaxation, and personal pursuits. The Bank's vacation policy is based on provisions that follow your position and length of service with the Bank . In 2005, you were eligible for vacation hours. Please see your Employee handbook for the guidelines. The total value of your vacation pay for 2005 is shown to the right.$ Bank provided the following paid holidays to all full-time employees in 2005: New Year's Day (as a floating holiday), Martin Luther King Jr. Day, Good Friday (one-half day), Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, and Christmas Day. Each December the holiday schedule is reviewed for the following year by the Human Resource Committee. The total value of your holiday pay for 2005 is shown to the right.

10 $ Bank has taken into consideration, for full-time employees, the personal needs which arise from the death of a family member. Up to three (3) days may be taken off with pay and supervisory approval for the death of an immediate family member (see your handbook for definition). In addition time off for the funeral of any other family member, one (1) day, or close friend, one-half (1/2) day, may be taken off with pay and supervisory 2005 full-time employees were eligible for up to seven (7) paid absence days for their use in the event of a legitimate illness or accident on your part, or on the part of a family member. These days are a privilege of paid time away from work and are not to be taken at your discretion. Please see your Employee Handbook or contact the Human Resource Manager for additional 2005, you received compensation for Absence Hours. The value of these paid Absence Hours is shown to the right.$ employees of Reliance Bank are eligible to receive up to two (2) compensable personal days per year based on a number of provisions.