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Benefit Choices Within Reach Your Flagstar benefits are about you — helping to meet your unique needs so you can be at your best physically, financially and personally. We offer benefit choices, so you can find the plans and programs that are perfect for you. Get started by answering some questions. It will take just a few minutes of your time and will help you make your choices.

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Flagstar offers three main medical plan options through Blue Cross Blue Shield of Michigan (BCBSM) — deciding which one is best for you depends on factors such as your health care needs and preferences. Review your responses and check off the one that makes the most sense.

Let’s talk about how often you need care.

1. How is your and/or your family’s overall health?

a. Excellent

b. Good

c. Not great

2. How much medical care do you (and anyone you cover) typically use in a year?

a. Not a lot — mostly preventive care like annual physicals and screenings

b. Average amount, say, a few office visits plus preventive care

c. Quite a bit, like seeing a specialist and/or multiple trips to the emergency room

What about your saving and spending habits?

3. How would you describe your finances?

a. I’m prepared to cover unexpected health care expenses

b. I’m comfortable but watch what I spend and save

c. I live on a tight budget and can’t afford unexpected health care expenses

4. Would you rather pay:

a. Less out of each paycheck now, more out of your pocket when you need care

b. Somewhere in the middle

c. More out of each paycheck now, less out of pocket when you need care

5. Are you interested in saving for current and future health care expenses tax free?

a/b. Yes, I would like to take advantage of tax savings on my health care expenses and save for the future

c. No, my budget is tight and saving for health care isn’t a priority now

6. If you answered A/B for question five, would you pay a higher contribution amount in exchange for money from Flagstar to kick-start your health savings?

a. No

b. Yes

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Medical: Our interest is providing options that fit your needs

Click or fill in your answer to each question.

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Ok, that’s it for medical! Review your responses and check off the one that makes the most sense.

I answered mostly A I answered mostly B I answered mostly C

The HDHP — Health Value Plan (HVP) might be right for you. This plan has the lowest payroll contributions, with the highest deductible (which is the amount you must pay up front for care), while providing access to a Health Savings Account (HSA). An HSA helps you pay for and save for eligible health care expenses on a tax-free basis.

The HDHP — Health Plus Plan (HPP) might be right for you. While you pay a bit more than the HVP in paycheck contributions, you have a lower deductible. This plan also provides access to an HSA along with money from Flagstar* to help you get your savings started.

The PPO — Health Standard Plan (HSP) might be right for you. This plan has the highest payroll contributions, but you typically pay less as you need care. For example, it has the lowest deductible and you only pay a small fixed amount (called a co-pay) for office and specialist visits. Keep in mind, this plan does not allow you to contribute to an HSA.

*Available to employees with an annual salary of $150,000 or less.

Consider this…

If you live or work in California, you also have access to a Health Maintenance Organization (HMO) through Kaiser. It requires higher payroll contributions, but you generally only pay small fixed amounts (called a co-pay) for your care. Keep in mind that most services require a referral.

If your spouse has coverage through his or her employer, be sure to check out and compare it to your options through Flagstar.

HDHP = High Deductible Health Plan

An HDHP meets government requirements to allow you to contribute to an

HSA. Both the HVP and HPP are considered HDHPs.

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Are you willing to pay a little bit more per month for added peace of mind in the event you have an accident or injury?

Yes. Consider enrolling in accident insurance, which provides you with fixed payments when you have an accidental injury to help make your recovery less expensive and stressful.

No. Keep in mind even seemingly small injuries can come with unexpectedly high medical bills that are not fully covered under your health insurance. Paying a little extra now may save you big later. It’s up to you to decide if you would like this optional coverage.

Do you have planned hospital costs (e.g., pregnancy) or want some extra coverage in case an unexpected hospital stay occurs?

No

This coverage is optional and it’s your choice to make — just remember hospital stays can be expensive. With hospital indemnity insurance, you would have added financial protection

to help cover your costs.

YesHospital indemnity insurance

is a great way to help cover some of the expense when

you have costs for situations like having a baby, surgery

or illness-related hospital admission.

Add-on coverage to supplement medical: Extra protection when you need it most

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Dental: Offering coverage that puts a smile on your face

Flagstar offers two options through Delta Dental. The right choice for you depends on your dental care needs. Answer the questions below to help make your choice.

Let’s take a look at your dental care needs.

1. How much dental care do you (and anyone you cover) typically use in a year?

a. Cleanings plus a filling or two

b. Will need some major work, such as a crown

2. Would you rather pay:

a. Less out of each paycheck now, but a higher percentage of the cost if you receive dental services

b. More out of each paycheck now, but a smaller percentage of the cost if you receive dental services

3. Do you have a child who needs orthodontic services?

a. No

b. Yes

Ok, all done for dental! Review your responses and check off the one that makes the most sense.

I answered mostly A I answered mostly B

The Dental Value Plan (DVP) looks like it might be the right choice. It’s a lower-cost option, but you generally pay more as you receive dental care and it doesn’t include coverage for orthodontia.

Give the Dental Plus Plan (DPP) a look. With this option, you have coverage for orthodontic services for dependents up to age 19. While you pay more in payroll contributions, you generally pay less out of pocket when receiving dental care.

Vision: Take a look at what’s available

Do you or a family member need glasses or have other eye care needs?

Yes. Consider Blue Vision coverage that’s available to you as a Flagstar employee. On an annual basis, it covers an eye exam and provides an allowance for frames/lenses or contacts.

No. You can skip this coverage unless you think you may have an unforeseen need for vision coverage during the year.

Consider this…Both options offer the same broad network of providers through Delta Dental. Using

network dentists saves you money and they will not only charge you

less for care, they will also complete and file paperwork

for you.

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Tax-Savings Accounts: Give yourself a tax break on health care costs Flagstar offers options for saving tax dollars on your eligible out-of-pocket health care expenses. If you’re interested in keeping more dollars in your pocket, the questions below will help you determine what option works best for you.

1. Will you be enrolling in the HVP or HPP?

a. Yes

b. No

2. Do you want to save not only for your current health care expenses but also future needs?

a. Yes

b. No

3. Do you want to receive free dollars from Flagstar to help kick-start your savings?

a. Yes

b. No

I answered mostly A I answered mostly B

Consider the triple tax advantage the Health Savings Account (HSA) offers. You can contribute, save and spend your money without ever paying a dime in taxes (as long as you use your dollars for qualified medical expenses). Keep in mind the HSA is only available when you enroll in the HVP or HPP for medical and meet all other IRS requirements. With the HPP, you receive an added bonus — Flagstar kick-starts your savings with a company contribution*.

The Health Care Flexible Spending Account (FSA) might do the trick for your tax savings. It allows you to reimburse yourself with tax-free dollars, but keep in mind it has a use-it-or-lose-it rule. Meaning, you cannot save money for future use, like you can with an HSA. Federal law requires that you forfeit any money remaining at the end of the plan year.*

Flagstar allows for up to $550 in unused FSA-Health Care or Limited Purpose funds to roll over into the following plan year. The catch is that you have to sign up for FSA-Health Care or Limited Purpose in the new year for the funds to be eligible to roll over.

*Available to employees with an annual salary of $150,000 or less.

Consider this…It’s important to understand IRS rules for the HSA and FSAs (including mid-year enrollment considerations and what qualifies as eligible expenses). Find out more at www.flagstarbenefits.com.

If you enroll in Flagstar’s HVP or HPP, you can elect the Limited Purpose FSA for added tax savings in addition to contributing to the HSA. It works like the regular FSA but with some limitation on the type of expenses that are eligible for reimbursement (e.g., until you meet your medical plan deductible, only vision and dental expenses qualify). 6

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Save taxes on dependent care too

Are you paying for childcare or other dependent day care expenses out of pocket and want to save some cash on taxes?

Yes. Consider the Dependent Care FSA. You can use it to pay yourself back, tax free for eligible expenses including childcare and other dependent day care costs you have while you and your spouse (if applicable) work or attend school full time. Remember that just like the Health Care FSA, the use-it-or-lose-it rule applies.

No. There’s no need to look closer at the Dependent Care FSA since it does not apply to your situation.

Consider added financial protection for a critical illness

Want to avoid the stress of potential unexpected medical bills in the event you are diagnosed with a critical illness?

Yes. Critical illness insurance can

help if you or a covered family member face a challenging diagnosis. It provides a cash payout to help you pay any type of bill (i.e., rent, mortgage, groceries). Covered critical illnesses include heart attack, stroke, cancer and others. You can elect coverage for yourself, spouse and children.

No. It is up to you — this coverage is completely optional and is meant to provide you with added peace of mind if you want it.

Additional Options: Opportunities for cost savings and financial protection

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Life and Accident: Don’t skip financial security for your family

Consider this…Flagstar also offers the option

for you to purchase Spouse Life Insurance and Child Life Insurance.

Consider this added protection for your peace of mind.

Need assistance with everyday personal

legal matters?

Consider enrolling in the legal plan,

which provides access to a network of

attorneys providing services such as

estate planning, help with financial

matters, document preparation

and more.

Flagstar provides a base level of protection at no cost to you. This includes Basic Life and Accidental Death and Dismemberment (AD&D) Insurance equal to 1x your salary (with a maximum of $500,000 and minimum of $20,000) if you are a Regular Full-Time employee. If you are a Regular Part-Time employee, you receive $20,000 in coverage. Is this enough protection for you, or could you use a little more? Answer the questions below to help make your decision.

1. Are you the main earner in your family?

a. Yes

b. No

2. If something were to happen to you would your family have enough money available to cover their current and future expenses?

a. Yes

b. No

3. Are you ok with the basic level of coverage you receive from Flagstar?

a. Yes

b. No

I answered mostly A I answered mostly B

You can waive additional protection if you’re comfortable with the basic coverage you automatically receive from Flagstar.

Consider supplementing the basic coverage you receive from Flagstar with Employee Optional Life Insurance.

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That’s not all — there are more benefits to meet your personal needs As a Flagstar employee, you can take advantage of the following plans and programs available at no cost to you:

401(k) Plan (Retirement Program)

Supports your future financial security by providing a tax-advantaged, long-term retirement savings vehicle. You can enroll and make election changes anytime during the year. Plus, you can save even more with free money from Flagstar’s matching contribution. Go to www.401k.com or call Fidelity at (800) 835-5097.

Ayco Financial Counseling Build financial stability with the help of an Ayco financial coach (offered automatically, at no cost, with no need to enroll). Call (866) 341-9190 or visit www.ayco.com/login/flagstar (click on “New User? Register Here” to register).

Employee Assistance Program (EAP)

Confidential assistance to help balance the demands of work, family and daily life (offered automatically with no need to enroll). Call (800) 869-0276 or visit www.espyr.com (password: flagstar).

TravelConnect Brings help, comfort, and reassurance if you or your eligible dependent(s) face a medical emergency while traveling 100 or more miles from home (offered automatically with no need to enroll). Go to https://mysearchlightportal.com and enter the following Group ID: LFGTravel123.

Disability coverage If you are a regular full-time employee, financial protection provided at no cost to you in case you face a short- or long-term disability. Learn more at www.flagstarbenefits.com.

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Take next steps for your benefit choices

The right benefit choices are within your reach. Get ready to make your choices by taking these steps:

Find out more

Head over to www.flagstarbenefits.com. You’ll find more about each benefit option, info on eligibility and other considerations. If you need assistance, contact the Benefits Helpline at 248-312-2400 or hr-benefits@flagstar.com

Make your choices

It’s up to you to decide what’s best for you. Explore each of your benefit options carefully and choose whether it makes sense to enroll or waive coverage. Remember to consider the eligible family members you may wish to cover.

Gather Dependent Documents

A copy of your marriage certificate and birth certificates for your child(rens) are required to be attached to the last enrollment step in Workday if you are adding a spouse or children to your benefits.

Enroll

Make your choices through Workday (you can find a link to Workday on the home page of myFlagstar):

• New hire enrollment — enroll within 30 days of your hire date. If you do not enroll, you will not have medical, dental, vision, HSA contributions, FSA contributions, optional life insurance coverages or voluntary benefits for the current plan year.*

• Annual open enrollment — enroll by the deadline indicated in the notification email and shown in the benefits guide at www.flagstarbenefits.com. If you don’t enroll, all your coverage elections will carry over to the next year except for any contributions you make to the Health Savings Account (HSA) and Flexible Spending Accounts (FSAs). If you don’t make an active election, HSA and FSA contribution elections will reset to $0 on January 1.

* Voluntary benefits include accident insurance, hospital indemnity insurance, critical illness insurance, and the legal plan

If completing this workbook electronically, be sure to download and

save the file to retain your selections.

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