Wednesday, November 28, 2018
1. During 2019, if FES emerges from bankruptcy as a standalone company, what happens to health care and other benefits that employees are currently signing up for in 2019? For example, will employees continue to have health insurance through FE with our deductibles spent for the year still intact or do we start over with new health insurance and new deductibles?
The health care and other benefits will continue through the effective date of a Plan of Reorganization. The benefits that will be offered post-effective date have not been determined but they would be through different plans than the current health care and other benefits.
2. Will we have an annual bonus (short term incentive) in March?
Short term incentive compensation under the 2018 Short Term Incentive Plan will be paid on or prior to February 28, 2019. The company expects to have a similar Short Term Incentive Plan in 2019.
3. As we get further into the restructuring of our company and further away from FirstEnergy, how will our 401(k)s be affected? Will we continue to receive the FE match of 6% and when will we know what the new company will be providing for us with a match?
Prior to the effective date of a Plan of Reorganization, there will no change with respect to the 401(k) plan. FE will discontinue the match after the effective date. Options post-split will depend on terms of the new 401(k) plan post-effective date, including whether there is any match.
4. The Employee Compensation & Benefits Handbook states that if an employee separates employment for any reason other than death, they will not receive payment for any unused PTO, purchased PTO or deferred PTO, unless otherwise noted under a FirstEnergy plan or program. If we have unused PTO in 2019 and FENOC completes its separation from FirstEnergy during 2019, will unused PTO still be available, or will it be forfeited as the Handbook states?
No determination has been made with respect to the paid time off policy post-effective date.
5. In this season of open enrollment for 2019 benefits, how does the termination of FirstEnergy Shared Services associated with the bankruptcy proceedings affect FES or NewCo personnel benefits for 2019?
The debtors, including FES, and FirstEnergy Service Company are parties to an amended shared services agreement which provides for the continuation of shared services through June 2020, unless the debtors choose to terminate certain categories of shared services prior to that date. So, there has been no termination of shared services with respect to the debtors, including FES.