Health and Welfare
HEALTH INSURANCE: First Bank’s health insurance plan allows employees to select the level of coverage which best meets their individual or family needs. The health insurance plan also offers a Prescription Drug program. The bank currently provides 100% of “employee only” coverage and 33% of the dependent coverage costs.
DENTAL INSURANCE: First Bank’s dental insurance plan allows employees to select the level of coverage which best meets their individual or family needs. The bank currently provides 100% of “employee only” coverage.
LIFE INSURANCE & AD&D: Life insurance is available to employees in multiples of their basic annual salary, rounded to the next higher $1,000. The bank provides three times your annual salary in life insurance, with a maximum of $650,000, with the option of buying supplemental insurance equal to four, five or six times your annual salary. Additionally, employees are eligible for an AD&D principal benefit (if an employee dies or is injured as a result of an accident), that is equal to their life benefit, to a maximum of $500,000. First Bank also provides a spousal death benefit coverage of $5,000 and dependent child coverage of $2,500. There is a Living Benefits Option included in the plan - if an employee is diagnosed with a terminal illness with a life expectancy of one year or less, he/she may receive benefits based on the face amount of his/her coverage. The Living Benefit is provided to employees in a single payment, which is 50% of the face amount of their coverage.
FLEXIBLE SPENDING ACCOUNTS: This plan offers the opportunity to maximize benefits options and to give employees more disposable income by participation in tax-free reimbursement spending accounts. Each account allows for a maximum annual contribution of $5,000.00. The two accounts are listed below:
Medical FS Account - this account offers reimbursement of health care related expenses not covered by insurance, as well as other qualified expenses.
Dependent Care FS Account - this account is used for qualified child care and elder care expenses.
SHORT-TERM DISABILITY: Short term disability benefits will become effective when an employee has used up all available sick and personal days, except for ten total days, and is out with an illness in duration of four days or longer, and up to 89 days. The disability must be certified by a physician and this benefit provides replacement of 75% of an employee’s current gross salary. The Bank pays 100% of the cost for this coverage.
LONG-TERM DISABILITY: This supplemental insurance program provides 60% of an employee’s monthly gross income during a long-term disability period. The Bank pays 100% of the premium cost for this coverage. This benefit becomes active after a period of lost time that is equal to or greater than 90 days.
SICK DAYS: Each employee is allocated ten sick days per year. During the first year of employment the number of days allocated are prorated based on when an employee joins the Bank. For example, if an employee joins in July, they would be entitled to five sick days, since they joined midway through the year. Days not used by year-end are accrued up to a maximum of 90 days. Sick days may be used by the employee’s own illness or to care for an immediate family member, if they are residents of the employee’s household.
PERSONAL DAYS: Each employee is entitled to personal days based on the following allocation: 1 - 3 years of employment - 1 personal day; 4 - 6 years - 2 days; and 7+ years - 3 days.
DEFINED BENEFIT PLAN: Entry into the fund is automatic after one year of employment for all full-time employees who are at least 21 years old. Also, part-time employees become eligible after working 1,000 hours in a given year. The bank makes all contributions to this plan. Vesting is at five years.
401(k) PLAN: All employees are eligible on the first payroll following the date of employment and who are 19 years old. Employees may assign a percentage of their salary (1% to 95%) and the bank will match 100% of an employee’s contribution up to 3% of their salary. For example, if employee has an annual salary of $30,000 and elects to contribute 6% or $1,800 annually to their 401(k), the Bank will contribute 3% or $900 on his/her behalf. Employees who make no election during the initial 60 days of employment will be automatically enrolled for a 2% election. The full match amount will go into the ESOP (see below). Employees have a variety of investment options, which may be modified, as desired. The funds contributed are not taxed until withdrawn. Full vesting occurs after three years.
Employee Stock Ownership Plan (ESOP): Entry into this fund is automatic for all full-time employees after six months of employment. Employees must be at least 19 years of age. The 401(k) match is contributed to the ESOP. Assets are invested primarily in First National Corporation common stock. Dividends are added to an employee’s account at the discretion of the Board. Benefits are payable upon retirement in either lump sum or rollover to a qualified IRA. The vesting for the ESOP is three years.
HEALTH CLUB REIMBURSEMENT: All full time employees are eligible to be reimbursed $100.00 towards the initiation fee or, if there is no initiation fee, towards the first month’s membership fee in a health club or gym. Full time employees are eligible to take advantage of this benefit once every three years.