Schneider Xantrex 4pg 10/19/10 4:32 PM Page 1
Your new benefits and retirement plans
at Schneider Electric
As previously communicated, on January 1, 2011 you
will join the benefits and retirement plans offered by
Schneider Electric in Canada (“Schneider Electric”). The
current benefits plan and RRSP arrangements offered
to you will be terminated effective December 31, 2010
as we will be moving to a new flexible benefits plan and
a defined contribution pension plan. This newsletter
presents a high-level view of what you can expect and
what actions you will have to take.
Schneider Electric’s Flexible Benefits Plan
Schneider Electric recognizes that each employee has
different needs. A healthy single person may have fewer
health and dental expenses than an employee with a
family. That is why Schneider Electric offers a Flexible
Benefits Plan (“Flex Plan”), designed to meet your
needs today and in the future. In addition, the new
flexible benefits plan encourages you to take ownership
of your benefits decisions and select the benefits
coverage that is appropriate for you and your family.
Schneider Electric’s Flex Plan offers Company-paid life
insurance and accident insurance for employees, a
Company-paid short-term disability plan, an employee-
paid long-term disability plan, and Company-paid out-of-
country/province emergency medical coverage. You can
also buy increased life and accident insurance for
yourself and life insurance for your dependents. In
many respects the Flex Plan offers similar coverage to
your current plan, but with more choices.
The Flex Plan has three Health Care and three Dental
Care options as shown on page 3. You will have the
possibility to choose:
1. Single coverage – for yourself only;
2. Single + 1 coverage – for yourself and one other
eligible dependent, either a spouse or a child; and
3. Family coverage – for yourself and at least two other
eligible dependents.
Please note: You will be able to opt out of Health
and/or Dental coverage as long as you can prove
comparable spousal coverage.
Key elements under the new Flex Plan
• Prescription drugs: Flex Plan pays between 50% and
90% of the cost of prescription drugs depending on
the Health option you choose.
• Dispensing fee cap: Flex Plan pays $6.50 towards the
cost of the dispensing fee. You will be responsible for
paying any additional cost.
• Non-drug medical expenses: Flex Plan pays between
50% and 100% of non-drug expenses depending on
the Health option you choose.
• Dental services: Preventive, basic, endodontic and
periodontic services are covered between 70% and
90% depending on the Dental option you choose.
Enrolling in the Flex Plan
At enrollment, you will be responsible for choosing your
coverage status, Health and Dental options, and other
optional benefits. Your benefits will take effect on
January 1, 2011.
You will only be able to make changes in time for the
next re-enrollment date at the end of 2011, with an
effective date for January 1, 2012. Future re-enroll-
ments will occur every two years thereafter. However,
if you experience a life event during the year, such as
getting married or having a baby, you will be able to
make changes within 31 days of the life event.
Schneider Electric’s Flex Plan is administered by Sun
Life Financial, which provides your current benefits
coverage. You will continue to have access to the online
Sun Life Plan Member Services.
Your 2010 claims
All claims for health and dental expenses incurred
before December 31, 2010 must be submitted under
your current plans and filed by January 31, 2011.
Please follow the usual claims procedures.
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Costs and flex credits for the Health and Dental options

In the Flex Plan, you and Schneider Electric share the cost of the Health and Dental coverage. Schneider Electric will
assist you to pay for this coverage by providing flex credits. You receive monthly flex credits (a dollar amount) based on
your coverage status and on the type of selected coverage.

Monthly flex credits and costs

Single coverage Monthly health Monthly health Monthly dental Monthly dental
credit cost credit cost

Option 1 $34.22 $24.94

Option 2 $60.31 $62.19 $33.26 $39.07
Option 3 $79.04 $43.77

Single +1 coverage

Option 1 $77.88 $58.66

Option 2 $137.72 $142.10 $79.55 $91.87
Option 3 $180.87 $102.59

Family coverage

Option 1 $91.94 $73.34

Option 2 $162.02 $167.75 $99.43 $114.85
Option 3 $213.54 $128.24

• If you choose the lowest level of coverage (Option 1),
your flex credits will cover the cost of your premiums
and you will have flex credits left over.
• If you have flex credits to spare, you can transfer them
to your Health Care Spending Account (HCSA) to
purchase any product or service allowed as a medical
expense by the Income Tax Act (Canada). At the end of
the calendar year, you may carry forward any unused
flex credits for one additional year. Alternatively, you
can transfer your remaining flex credits to the Group
RRSP or cash them out (less withholding taxes).
• If you choose higher levels of coverage (Option 2 or
Option 3), your flex credits will pay part of your
premiums. You will be responsible for paying the
difference through payroll deductions.
• If you opt out of the Flex Plan based on proof of
comparable spousal coverage, you will receive the
allocation of flex credits based on the coverage status
that you have selected. The respective flex credits can
be further directed to your Health Care Spending
Account, or to the Group RRSP, or can be cashed out
as taxable cash.
Your option choice – things to consider…
• Do you anticipate any unusual expenses in the coming
year? Will your child need extensive Dental work done
or braces? Will you need massage therapy or
chiropractic help?
• Do you have Health and Dental coverage under your
spouse’s plan? If yes, you are eligible to opt out of
Schneider Electric’s coverage in case you are not
interested in having additional coverage.
• If you choose to opt out, you cannot choose Schneider
Electric’s Health or Dental coverage again until the next
re-enrolment period, unless you experience an eligible
life event. Visit the Sun Life website for details.
• If you choose to opt out, you lose the ability to claim up
to 100% of your eligible Health and Dental expenses
under both the Schneider Electric Flex Plan and your
spouse’s plan, if you currently coordinate benefits.

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Benefits Basics

What the plan pays for health care

Coverage Type Option 1 Option 2 Option 3
Prescription Drugs - Pay Direct Card 50% 80% 90%
Supplementary Health 50% 90% 100%

Semi-Private Hospital 50% 90% 100%

Out of Province/Country 100% 100% 100%

Vision Care i.e. laser surgery, prescription 0% 90% 100%

glasses, contact lenses Maximum $250 Maximum $300
every 24 months every 24 months

What the plan pays for dental care

Coverage Type Option 1 Option 2 Option 3

Preventative/Periodontic/Surgical Services 70% 90% 90%

Crowns, Bridges 0% 50% 50%

Dentures and Denture Parts 0% 50% 50%

Orthodontics-Lifetime maximum $2,000 0% 0% 50%

Annual limit for all dental services combined $1,000 $1,500 $2,000

Basic Life Insurance (employer paid)

Benefit amount 2 X annual earnings ($700,000 max combined with Optional Life)
Non-evidence maximum $700,000

Optional Life Insurance (employee paid)

Benefit amount Employee/Spouse: Units of $10,000 to a max of $200,000
Children: Option 1 - $5,000 per dependent child
Option 2 - $10,000 per dependent child

Accidental Death and Dismemberment Insurance (employer paid)

Benefit amount 2 X annual earnings ($400,000 max)

Short Term Disability Insurance (employer paid)

Benefit amount 66.7% to 100% of weekly earnings based on years of service
Tax status Taxable
Waiting period 0 days for accident; 6 days for illness
Benefit period 26 weeks

Long Term Disability Insurance (employee paid)

Benefit amount Option 1: 60% of monthly earnings to max of $11,000
Option 2: 66.67% of monthly earnings to max of $11,000
Non-evidence maximum $11,000
Tax status Non-taxable
Definition of disability 24 months own occupation; any occupation after 24 months
Waiting period 26 weeks
Benefit period To age 65

Out-of-Province/Country Medical Emergency Coverage (employer paid)

Benefit amount $1,000,000 lifetime maximum

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Schneider Electric’s Pension Plan
As of January 1, 2011, you will be eligible to enroll in
the Defined Contribution (DC) component of the
Schneider Electric Pension Plan in Canada.
In the DC component, both you and Schneider Electric
will make contributions into an individual DC account in
your name. Participation is voluntary. You can choose to
contribute from 0% to 5% of your pensionable earnings
which Schneider Electric will match, dollar for dollar.
It will be your responsibility to invest all contributions in
the account – both yours and Schneider Electric’s – by
selecting from a range of investment fund options. You
will be able to create an individual portfolio that will best
meet your needs, based on the following criteria: your
investment goals, the investment risk that you are
comfortable with, and the length of time until your
retirement.
When you leave or retire from the Company, your DC
account will be used to provide you with retirement
income based on the assets in your individual DC
account.
Your DC account will be set up with Manulife Financial.
It will hold all the contributions plus the investment
returns (less investment management fees). Details
about the investment management fees will be
communicated to you during the education sessions.
Please note that neither the Company nor Manulife
Financial will provide investment advice. Should you
wish to seek advice on investment options, please
contact your financial advisor.
Remember: If you would like to receive pension
benefits from the DC component of the pension
plan, you must contribute!
As of January 1, 2011, if you would like to receive a
pension from the DC component, you must begin
contributing. There is no automatic Company
contribution to the DC component. You must contribute
at least 1% of earnings if you would like to receive
matching contributions from the Company.
Your responsibilities in the DC component
are to:
• Decide how much to save for retirement in the Plan
• Make investment decisions from the fund line-up
• Use available information and decision-making tools
• Monitor your contribution room and limits
• Seek investment advice from an appropriately
qualified individual
• Pay investment management fees (IMFs)
What happens to the current RRSP
arrangement?
Effective December 31, 2010, the Company will stop
contributing to the current RRSP arrangement and will
offer you the opportunity to participate in the Defined
Contribution (DC) component of the Pension Plan.
4 Tel: (416)752-8020
In addition to the DC component, you will also be
eligible to participate in the Company Group RRSP
managed by GreatWest Life. However, no matching
contributions will be provided.
The RRSP provides an opportunity to increase your
retirement savings. There are two ways to contribute to
the Group RRSP - through regular payroll deductions or
lump-sum payments. Regular contributions over a long
period of time allow you to average out the high and low
points of the market. If you enroll in the Group RRSP,
the company makes RRSP deductions from your salary
and remits them on your behalf over the course of the
year. Your immediate tax liability is reduced, since the
tax you pay is based on your salary after your RRSP
contribution. By contributing through payroll deductions,
rather than contributing after you are paid, your net
income increases - providing you with more cash
throughout the year.
Is the Defined Contribution (DC) component
similar to the RRSP?
• Your contributions are tax-deductible.
• Your account and all investment earnings remain
sheltered from tax until you withdraw the money.
• The Schneider Electric’s DC component can only be
used to provide retirement income and you cannot use
the money for any other purpose. The RRSP is a
savings plan which can be used for retirement savings
but you can also withdraw the money for other
purposes.
• The Schneider Electric’s DC account cannot be
cashed out during employment. You can cash out the
RRSP at any time, although you will have to pay
withholding taxes.
• The Company will contribute to the DC component by
matching your contributions.
What’s next?
During October / November, we will provide you with
additional information about enrolling in the Flex Plan
and in the Defined Contribution (DC) Pension Plan.
Stay tuned for notification of the Employee Education
Sessions!
Answering your questions
In the meantime, if you have any questions or concerns
about the benefits and pension harmonization process,
©2010 Schneider Electric Industries SAS. All Rights reserved.
please contact your HR business partner.
This brochure provides a summary of the changes in benefits.
Every effort has been made to ensure the accuracy of this
brochure, however in the event of a conflict the provisions of
the terms of the plan text will apply. The Flex Plan may be
subject to change in order to comply with legislation.
In addition, Schneider Electric reserves the right to terminate,
suspend, withdraw, amend or modify all or part of the Flex
Plan at any time.
Schneider Electric Canada Inc.
19 Waterman Ave.
Toronto, Ontario
M4B 1Y2
http://www.schneider-electric.ca September 2010