Dow Corning INTERNAL

U.S. Retiree Benefits Overview

Dow Corning INTERNAL

U.S. Benefits Overview • The brief summaries of benefits contained in this presentation provide only general information. • You should refer to the plan document and summary plan description (SPD) of the applicable plan(s) for a more complete description of a plan’s terms and to see if you are eligible for that plan. • If there is any conflict between (a) the information provided in this presentation (or any other oral or written representations made by anyone regarding a plan) and (b) the legal documents of a plan, including the plan document or SPD for the applicable plan, then the plan's legal documents will govern. • Dow reserves the right to amend, modify and terminate the plan(s) described herein at any time in its sole discretion. 2

Dow Corning INTERNAL

Open Enrollment • Dates – November 2-18, 2016 • Communications: – What’s New document mailed annually – details changes – Communications available on Dow Friends website – includes What’s New and Rate/Coverage charts • Expectations: – For 2017: All pre-Medicare retirees are expected to complete the enrollment process – Review enrollments and beneficiaries annually – Complete working spouse/domestic partner verification annually if spouse is pre-Medicare

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Dow Corning INTERNAL

Medical & Health Insurances

Dow Corning INTERNAL

Dow Retiree Eligibility Retired before January 1, 1995 (Post-65 EGWP Retirees) • No premium changes Retirees who retired after January 1, 1995 Post-65 Aon Retirees • Aon will continue to communicate the enrollment process • HRA continues to be funded, for those eligible Split Families • Pre and Post-Medicare families • Costs based on individual enrollment Pre-Medicare Retirees • New plan options

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Dow Corning INTERNAL

Post-65 EGWP Retirees (Retired Before 1/1/1995) 2017 Plan Design

MAP Plus Option 1 – Low Deductible

Deductible • Individual • Family

• $250 • $500

Out-of-Pocket Maximum • Individual • Family

• $1,750 • $3,500

Monthly Premiums* • Retiree Only • Retiree + Spouse

• $50 • $100

*If you retired with a zero or fixed premium, the costs above do not apply to you. You will remain grandfathered at the same cost. 6

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Post-65 EGWP Retirees Plan Differences Dow

DCC

Deductible

• $250 Medical (ind.)

• $350

Out-of-Pocket Maximum • Individual • Family

• $1,750 • $3,500

• $1,750 • $3,500

Office Visit Copay

20% after deductible

$15 Primary Care Visit $30 Specialty

Coinsurance

20% for most services 10%

Prescription Drugs Retail – Generic / Brand Formulary / Brand Non-Formulary

10% / 20% / 35%

$10 / $20 / $35

$5 / $80 / $150

$25 / $50 / $85

Mail Order* – Generic / Brand Formulary / Brand Non-Formulary

*90 day preferred mail order through CVS/Caremark

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Dow Corning INTERNAL

Post-65 EGWP Retirees Medical Plan Differences • National vendor is Aetna rather than BC/BS. • Coverage very similar but specifics available in the Summary Plan Description (SPD) via Dow Friends website. • Retirees who waive coverage at age 65 or over, and later seek to re-enroll, will not be eligible unless they can show proof of active employer coverage or coverage from a discontinued employer retiree plan immediately prior to enrolling in Dow retiree coverage 8

Dow Corning INTERNAL

Post-65 Aon Retirees Retired on or After 1/1/1995 • Communications continue to be directly through Aon • Dow will fund the Health Reimbursement Account (HRA); $2,020 per person in 2017

• Effective January 1, 2018: Retirees who waive coverage at age 65 or over, and later re-enroll, will not be eligible for the Dow funded HRA contribution unless they can show proof of active employer coverage or coverage from a discontinued employer retiree plan immediately prior to joining an Aon plan through the Dow offering.

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Dow Corning INTERNAL

Split Family Retirees Retired on or After 1/1/1995 • Split Family – when 1 covered member is Medicare eligible and the other is not • Dow treatment effective January 1, 2017:

 Members will elect two different plans, one pre-Medicare and one post-Medicare, and pay split contract rates until all reach Medicare eligibility  Once set up to do so, post-Medicare member will move to Aon while pre-Medicare member continues on Dow preMedicare plan until they reach Medicare eligibility  Once eligible for Medicare, member will move to Aon

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Dow Corning INTERNAL

Split Family Retirees Retired on or After 1/1/1995 Mapping Process from Dow Corning plan to Dow plan: • Retiree is Post-65 and Spouse/DP is Pre-65 – Both will move to MAP 1 plan under Dow and pay higher premium. • Must actively elect MAP 1/MAP 2 coverage • Retiree is Pre-65 and Spouse/DP is Post-65 – If enrolled in Dow Corning CDHP, will move to MAP 2/MAP 1 coverage Coverage Tier

Both Spouses in MAP 1

One Spouse in MAP 1 and Other in MAP 2

Retiree + Spouse

$809

$387

$1,449

$605

Family

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Dow Corning INTERNAL

Pre-Medicare Retirees Retired on or After 1/1/1995 National Preferred Provider Organization (PPO) plans administered by Aetna • Medical Assistance Program = MAP • MAP Plus Option 1 Low Deductible ─ ─

Higher monthly premium Lower out-of-pocket costs at point of service

• MAP Plus Option 2 High Deductible ─ ─

Lower monthly premiums Higher out-of-pocket costs at point of service

Health Maintenance Organization (HMO) and other plans • In-network coverage only (narrow network) • Eligibility based on ZIP code • Generally higher monthly premium and lower out-of-pocket costs

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Dow Corning INTERNAL

Pre-Medicare Eligibility and Enrollment Differences Eligibility/Enroll ment Provision

Dow

DCC

Pre-Medicare Working Spouse/Domestic Partner (DP)

If spouse/DP works full time or is retired from employment and is offered subsidized employer coverage, then must enroll as primary

If spouse/DP works more than 17.5 hours/week and offered subsidized employer coverage, then must enroll as primary

Grandchild Dependents

Must be legal dependent of Retiree – grandfathering those currently covered (new rule effective 1/1/2017)

Eligible if parent of grandchild is Retiree’s eligible dependent child

Enrollment Change Notification

90 days to enroll or change coverage after Qualifying Life Event Change

60 days to enroll or change coverage after Qualifying Life Event Change

Life Event Enrollment Changes

Make changes online or by calling the Retiree Service Center

Complete enrollment form 13

Dow Corning INTERNAL

A Note About Retiree Rates • Dow Corning, like Dow, implemented a contribution cap years ago

• The following note has been taken from the Dow Corning Retiree open enrollment booklets IMPORTANT NOTE REGARDING PRICING AND CREDITS… Dow Corning provides a subsidy of up to $6,000 for retiree only, $12,000 for retiree plus one and $18,000 for retiree plus two or more toward the cost of health care coverage. Your premium is the difference between the actual cost of the plan and this subsidy. The cost of every plan now exceeds this subsidy so all future health care inflation will cause your premium to escalate significantly. Retirees who retired prior to reaching 85 points or 30 years of service or age 60 with 10 years of service have a pro-rated subsidy so the premium increases are even more substantial.

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Dow Corning INTERNAL

A Note About Retiree Rates (Continued) • Trends (medical inflation) for the Dow Corning pre-Medicare retiree population and the Dow Chemical pre-Medicare retiree population were very disappointing: • Very difficult Specialty Pharmacy claims • An increase in the number of catastrophic cases • Affordable Care Act

• In view of these costs and the contribution caps, regardless of the change in ownership structure of the company, Dow Corning retiree rates were going to increase dramatically

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Dow Corning INTERNAL

Pre-Medicare Retirees Medical Plan 2017 Plan Design Deductible • Individual • Family

MAP Plus Option 1 Low Deductible In-Network

Out-ofNetwork

• $125/$100 (Rx) • $375/$300 (Rx)

• $500/$100 (Rx) • $1,500/$300 (Rx)

MAP Plus Option 2 High Deductible In-Network • $2,000 • $4,000

Out-ofNetwork

HMOs

• $4,000 • $8,000

None or minimal

• $4,000

• $8,000

Varies

• $8,000

• $16,000

Max of $2,600 for one person Out-of-Pocket Max • Individual • Family

Full Service Premiums • Retiree Only • Retiree + Spouse • Retiree + Child(ren) • Family

• 4% of last base annual salary • 8% of last base annual salary Max of $7,150 per person

• 8% of last base annual salary • 12% of last base annual salary

Monthly • $ 640 • $1,281 • $1,281 • $1,921

1) In-Network Out-of-Pocket Maximum is limited to $7,150 / $14,300.

Max of $4,000 for one person Monthly • $218 • $437 • $437 • $655

Varies

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Dow Corning INTERNAL

Pre-Medicare Retirees Medical Plan PPO Differences Dow

DCC

Deductible

• $125 Medical (ind) • $100 Pharmacy

• $350

Out-of-Pocket Maximum • Individual • Family

Based on percentage of salary: Max of $7,150 per person

• $5,250

Office Visit Copay

$20 Primary Care Visit $50 Specialty

$15 Primary Care Visit $30 Specialty

Coinsurance

15% for most services

10%

• 4% individual of last base annual salary • $1,750 • 8% family of last base annual salary • $3,500

Prescription Drugs Generic / Brand Formulary / Brand Non-Formulary

20%* / 20%* / 30%*

$10 / $20 / $35

• After an initial retail prescription and two refills, the coinsurance will move to 50% unless you use mail order. • Maintenance Choice Program allows you to get your mail order prescriptions at CVS.

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Dow Corning INTERNAL

Pre-Medicare Retirees Medical Plan HDHP/CDHP Differences Dow

DCC

Deductible

• $2,000 Individual • $4,000 Family

• $1,300 Individual • $2,600 Family

Out-of-Pocket Maximum

• $4,000 Individual • $8,000 Family

• $2,600 Individual • $5,200 Family

Coinsurance

20% in-network for most services

10% in-network

Prescription Drugs Generic / Brand (Formulary/NonFormulary)

20% / 20% / 20%

$10 / $20 / $35

• There is no financial incentive to use mail order, though it is an available option for HDHP/CDHP participants. • Maintenance Choice Program allows you to get your mail order prescriptions at CVS.

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Dow Corning INTERNAL

Pre-Medicare Retirees Medical Plan Differences (all plans) • National vendor is Aetna rather than BC/BS. • Blue Care Network is also available in Great Lakes Bay Region Area. • Coverage very similar but specifics available in the Summary Plan Description (SPD) via Dow Friends website. • Working spouse information must be given every year as part of annual enrollment for all pre-Medicare spouses. Your spouse will be dropped from coverage if not completed. • Four coverage tiers instead of three: Retiree, Retiree+S/DP, Retiree+Child(ren), Retiree+Spouse/DP+child(ren). • Retirees who waive coverage at age 65 or over, and later seek to re-enroll, will not be eligible unless they can show proof of active employer coverage or coverage from a discontinued employer retiree plan immediately prior to 19 enrolling in Dow retiree coverage

Dow Corning INTERNAL

Important HSA Information • No employer contribution to HSA. • Make individual contributions - no payroll deductions Health Equity Fees Monthly Administration

Free – however, balances below $2,500 will incur a $3.95 monthly fee

Paper Statement

$1.00 per statement

Account Closure

$25.00

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Dow Corning INTERNAL

Important Reminders • Check to make sure your provider is in the Aetna network, if you choose an Aetna plan, by accessing Doc Find online or by calling Aetna. • Pre-Medicare working spouse reminder: If spouse/DP works full time and is offered subsidized employer coverage, then they must enroll in their employer coverage as primary. You must complete the working spouse verification during annual enrollment each year.

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Dow Corning INTERNAL

Dental and Vision Plans Dental Plan

• Dental is no longer offered as a group plan with pension deductions • Enroll directly through Delta Dental – mysmilecoverage.com/dow or call Delta Dental directly at 800-971-4108

Vision Plan* • Vision is no longer offered as a group plan with pension deductions • Administered by VSP – in-network and out-of-network coverage • Enroll directly with VSP – go to dowretirees.vspforme.com or call VSP directly at 800-400-4569 2017 Premiums: Monthly Retiree Only $12.80 Retiree + 1 $25.61 Family $30.10 * Coverage for an eye exam each year continues to be available through a Dow medical plan if you do not elect to participate in the vision program. 22

Dow Corning INTERNAL

Other Insurances and Programs

Dow Corning INTERNAL

Legal and AD&D Plans • Not offered to retirees going forward • If currently enrolled, your coverage will end December 31, 2016 • Legal Plan coverage may be continued with Hyatt Legal Services for 30 months at the same rate offered today, but you must pay the entire premium upfront, in full – Premium for 30 months is $397.50 ($13.25 x 30 months) – Continue coverage by contacting Hyatt Legal Services Plan at 800821-6400 within 30 days of loss of coverage

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Dow Corning INTERNAL

Retiree Life Insurance

Group Term Life Policies – Administered by MetLife

Coverage Retiree Life Coverage CompanyPaid

• Pre-65: 1X final base salary + $5,000 • Post-65: ─ Ages 65-69, coverage reduces from 1X final base salary + $5,000 ─ Age 70 and older is $5,000

Retiree-Paid • Current coverage will continue to age 65, if premiums are paid • Any life coverage currently in place will transition over from Minnesota Life to MetLife • For life insurance lost or reduced, conversion/portability options offer opportunities for you to continue coverage through a separate policy with MetLife 25

Dow Corning INTERNAL

Grief Counseling Available to Retirees with Company-Paid Life • Provides counseling and services to help you cope with any major loss, such as death, divorce, serious medical diagnosis, loss of pet, etc. ─ Receive confidential support from licensed professional counselors, either in person or by phone. ─ You, your dependents and beneficiaries are eligible for up to 5 counseling sessions per event, at no cost to you. ─ Additional services and information are also available from research specialists if needed. ─ Call 1-855-609-9989 (24/7 toll-free number), or log onto https://griefcounseling.harrisrothenberg.net/default.aspx ─ Username: MetLife ─ Password: grief

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Dow Corning INTERNAL

Will Preparation/Estate Resolution Services Available to Retirees with Pre-65 Retiree Optional Life

• Will Preparation Service ─ Prepare or update a standard will at no cost, using one of Hyatt Legal Plans’ more than 10,000 network attorneys. ─ Using a non-network attorney, receive partial reimbursement for will preparation - current reimbursement limits are: ─ $150 for employee will, and ─ $175 for employee and spouse will

─ Call Hyatt Legal Plans (1-800-821-6400) – state you are a Dow retiree with Optional Life coverage, Group Number 11700, and are calling about Will Preparation Service.

• Estate Resolution Service ─ Provides assistance to your executor, beneficiaries, etc. in settling your estate – available by calling Hyatt Legal 27

Dow Corning INTERNAL

Pre- Medicare Retirees Omada Diabetes Prevention Program Omada uses a multi-faceted approach that includes: Expert one-on-one Health Coaching Small Group Support with private online peer groups for encouragement Health Data Monitoring Interactive Program that adapts to you Weekly Online Lessons to educate and inspire • Dow covers the cost of the program; you pay nothing ($700 value). • Your participation in the program is voluntary and your responses will be handled confidentially. • No individually identifiable data will be shared with Dow. • If you have questions, please contact your local Health Services representative or call the Retiree Service Center at (800) 344-0661. 28

Dow Corning INTERNAL

Benefits Tools and Resources

Dow Corning INTERNAL

Beneficiary Designation Company-Paid and Retiree-Paid Life Insurance • Life insurance beneficiaries on file with Minnesota Life will be transferred to MetLife in January 2017. – Beneficiaries selected for the Company-Paid Life Insurance plan will be used for all insurances unless you designate a different beneficiary for other plans. >> Through December 2016, change beneficiaries with Minnesota Life. >> From January 2017 forward, designate beneficiaries with MetLife at https://mybenefits.metlife.com/MyBenefits, or click on “Change My Beneficiaries” on the Dow Benefits website.

Retirees’ Savings Plan • Register beneficiary information on Fidelity’s web site at https://nb.fidelity.com/public/nb/dow/home or rely on defaults defined in Summary Plan Description (SPD) 30

Dow Corning INTERNAL

Resources DowFriends Website • General retiree plan information and retiree forms for health and insurance plans are available on the DowFriends website (http://www.dowfriends.com).

Retiree Service Center (for health and insurance benefits) • • • •

(877) 623-0661 E-mail: Dow Benefits website, “Message Center” 8:00 a.m.- 6:00 p.m. ET (Monday-Thursday) 8:00 a.m.- 5:00 p.m. ET (Friday)

Aetna • https://www.aetna.com • 1-800-US-AETNA (1-800-872-3862) • 8:00 a.m. - 7:00 p.m. ET

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Dow Corning INTERNAL

Questions?

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Dow Corning INTERNAL

Thank You