YOU MUST TAKE ACTION TO HAVE 2019 BENEFITS – 2018 ELECTIONS WILL NOT ROLL FORWARD

NO ENROLLMENT
= NO COVERAGE

2019

YOUR ACTION NEEDED!

Annual Enrollment is November 6-16, 2018

1
ENROLLMENT
2019 ANNUAL ANNUAL ENROLLMENT FOR 2019
BENEFITS IS NOVEMBER 6-16, 2018
CARTERSBENEFITSCENTER.COM • 855.614.0186

NEW FOR 2019!

• Spouse Life Insurance
You cannot change or cancel coverage
• Child Life Insurance
after the Annual Enrollment deadline
• Pet Insurance unless you experience a qualified life
• Back-up Dependent Care event. Only the ID Theft Protection, Life
• Additional options for Employee Supplemental Insurance, Hospital Indemnity, Accident
Life Insurance and Voluntary Accidental Death Expense, and Voluntary STD (if eligible)
& Dismemberment (AD&D) plans permit mid-year changes
without a qualified life event.
• In order to receive the $50/month Tobacco-Free
Credit on medical premiums in 2019, you must
Qualified life events include, but are
complete the Tobacco Attestation. Prior attestations
not limited to:
will not apply.
• Marriage/divorce
• Birth/adoption
• Change in a dependent's eligibility
• Change from FT to PT status and
Check out the newly enhanced benefits website with helpful tools and resources at
DEPENDENT ELIGIBILITY AND VERIFICATION • Gain/Loss of other healthcare

CartersBenefitsCenter.com
coverage
Eligible dependents for medical coverage include your legal spouse
and/or a married or unmarried child (up to age 26)1. You must complete your life event
with the Carter's Benefits Center
When adding a dependent who is not covered today to coverage
no later than:
during Annual Enrollment, you must provide the following documents
Full-time benefits-eligible to the Carter’s Benefits Center by November 30th (or your dependent's
coverage cannot be approved):
• 31 days from the day of the life
event, or
employees must take action • 60 days for birth/adoption/
• Child: copy of birth certificate OR proof of birth for
to have benefits in 2019. 2018 guardianship events

elections will NOT roll forward

NO ENROLLMENT = children under 6 months of age (documentation must
be on hospital letterhead listing you as the parent) OR

NO COVERAGE court papers (if adopted, placed for adoption, or placed

for legal guardianship)
• Spouse: copy of marriage certificate STILL HAVE
PLEASE NOTE

You will need to register for the new benefits website before enrolling.
Be sure to have your Employee ID handy as you will use it and your
date of birth to register. You can locate your Employee ID on your
QUESTIONS?
latest paycheck stub or by logging into Employee Self-Service at
Additional information on plan eligibility and qualified life events can
portal.adp.com. (Registration Code: CARTEROSH-ESS).
The Carter’s Benefits Center is
TIP
be found in the Summary Plan Description (SPD) of The William Carter
Company Welfare Benefit Plan, located at CartersBenefitsCenter.com here to help! Call 855.614.0186
to talk to a benefits specialist
SEE PAGE 25 FOR PREMIUMS (M-F 8am to 8pm EST).

For those who work in Puerto Rico or Hawaii: This guide provides plan information for residents of the continental United States. Plans in Puerto Rico 1
For medical coverage, there is also support for employees who may have an unmarried,
and Hawaii meet state specific guidelines, and details are available at CartersBenefitsCenter.com. Need more information? Just call us at 855.614.0186. incapacitated child who (1) is age 26 and over; (2) is not able to support himself/herself;
and (3) depends on you for support (if the incapacity occurred before age 26).

2 - YOUR HEALTH - 2019 BENEFITS 2019 BENEFITS - YOUR HEALTH - 3

 MEDICAL PLANS
GET TO KNOW YOUR OPTIONS
MONTHLY TOBACCO-FREE CREDIT. During medical plan enrollment, you are required to complete an
attestation regarding the use of tobacco products by you or your covered dependents to determine the
cost of your medical coverage. If you or any covered dependent(s) has not been tobacco-free for at least 30
days, you will pay $50 more per month for medical premiums. If you or your dependent that uses tobacco
quits using tobacco for at least 30 days or completes 5 telephonic counseling sessions in the free Carter's
Tobacco Cessation Program, you can earn the credit back. To contact the Tobacco Cessation Program:
For the remainder of 2018, contact Anthem at 877.252.8410 and beginning January 1, 2019, contact
CARTER’S OFFERS A CHOICE When thinking about your medical benefits, consider the whole picture. 888.548.3432. To certify that you've qualified to get the credit back at any time in 2019, contact the
OF THREE MEDICAL PLANS: When you enroll online at CartersBenefitsCenter.com, use the MyChoice Carter's Benefits Center at 855.614.0186.
tool to receive a personalized coverage recommendation. NOTE: If you unable to meet the qualifications for the Tobacco-Free Credit, contact the Carter's Benefits Center for an alternative.

PLAN OVERVIEW. Amounts shown below are for in-network coverage only. You will pay significantly
more if you go out-of-network, so be sure to check with Anthem before you seek care.

BRONZE PLAN SILVER PLAN GOLD PLAN

IN-NETWORK PLAN OVERVIEW
YOU PAY: YOU PAY: YOU PAY:
HOW THE PLANS ARE THE SAME Annual Deductible2
• Single $3,250 $2,000 $500
• Family $6,500 $4,000 $1,000
• The network. Our plans use the Anthem BCBS provider and Coinsurance 30% 25% 20%
discount network1. Be sure to choose an in-network provider Out-of-Pocket Max (including deductible)2
for lowest-cost services • Single $6,000 $5,000 $2,500
• Family $12,000 $10,000 $5,000
• Preventive Care. 100% coverage for qualifying in-network
HOW THE preventive care like well exams and screenings
• Wellbeing Support. Use Healthcare Bluebook, Best Doctors, Maven,
Health Reimbursement Account Available?
• Company Contribution
No
N/A
Yes
$250 Single/$500 Family
No
N/A

PLANS WORK the Anthem 24/7 Nurse Hotline, and LiveHealth Online virtual visits
Preventive Care
LiveHealth Online
0% 0% 0%

to support your care needs while controlling your out-of-pocket costs • Medical Visit $49 flat rate $49 flat rate $15 Copay
In-network preventive care is • Psychology Visit Varies by provider Varies by provider $30 Copay
covered at 100%, with no deductible. Office Visit: Primary & Convenience Care 30%3 25%3 $30 Copay
Office Visit: Specialist & Urgent Care 30%3 25%3 $40 Copay

You pay for other care up to the

HOW THE PLANS ARE DIFFERENT Outpatient Surgery & Inpatient Admission 30%3 25%3 20%3
Emergency Room 30% 3
25% 3
20%3
deductible (or pay an office visit
copay for the Gold Plan). Once • Your premium cost. The amount you pay from your paycheck Pharmacy Out-of-Pocket Max4
you reach the deductible, you and • The deductible. The amount you pay for covered health services • Single N/A4 $2,000 $2,000
• Family N/A4 $4,000 $4,000
Carter’s share the costs until you before Carter's begins to pay.
Retail Prescription Drugs (30-day supply)
reach the out-of-pocket maximum. • Medical copays (Gold Plan only). The amount you pay when you visit • Generic $10 Copay $10 Copay
a doctor (not subject to the deductible). See page 5 for details • Preferred 25% ($50 min/$100 max) 25% ($50 min/$100 max)
• Non-preferred 50% ($75 min/$150 max) 50% ($75 min/$150 max)
• The coinsurance. Your share of the cost once Carter’s begins to pay Subject to Medical
Mail-Order or Smart90 Walgreens Deductible and
If you reach the out-of-pocket • The out-of-pocket maximum. Your total cost before Carter's begins
Prescription Drugs (90-day supply) Coinsurance
maximum, Carter’s will pay 100% to pay 100% of your expenses for the rest of the plan year • Generic $25 Copay $25 Copay
of the remaining eligible expenses • Available Healthcare Savings or Spending Accounts. Options vary • Preferred $100 Copay $100 Copay
for the rest of the plan year. • Non-preferred $150 Copay $150 Copay
by plan (see page 12)
AVAILABLE HEALTHCARE SPENDING
BRONZE PLAN SILVER PLAN GOLD PLAN
AND SAVINGS ACCOUNTS

Health Savings Account Health Reimbursement

Remember that you can enroll in a Account Healthcare Flexible
Healthcare Flexible Spending Account Limited Purpose Healthcare Spending Account
if you do not enroll in a medical plan Flexible Spending Account Healthcare Flexible
Employees eligible for medical coverage are those with a standard work schedule of 30 or more hours per week. Part-time or Spending Account
NOTE

variable hour employees who work an average of 30 hours or more per week during their initial 11-month new hire measurement
period or ongoing 12-month measurement period will be offered medical coverage for themselves and their eligible dependents,
and will be offered the opportunity to enroll in a Health Savings Account if they elect the Bronze Medical Plan. 2
The family amount can be any combination of family members, but an individual would never satisfy more than his/her own individual amount.
3
After your deductible has been met.
4
On the Bronze Plan, prescription drugs accumulate to the same deductible and out-of-pocket maximum as medical charges, while the Silver
1
In Georgia, it is called the “Blue Open Access POS network” and in all other states, it is called the “National PPO (BlueCard PPO)”. and Gold Plans have a separate out-of-pocket maximum for prescription drugs.

4 - YOUR HEALTH - 2019 BENEFITS 2019 BENEFITS - YOUR HEALTH - 5

 MAXIMIZE

FOR ALL (REGARDLESS OF MEDICAL ENROLLMENT)

WELLBEING SUPPORT
...have a medical concern

YOUR LIVEHEALTH ONLINE: Access virtual doctor visits 24/7 for a

maximum visit cost of $49. If applicable, prescriptions can be sent
directly to your pharmacy (as legally permitted in certain states).

MEDICAL LIVEHEALTH ONLINE PSYCHOLOGY: If you're feeling stressed,

worried, or having a tough time, you can talk to a licensed

COVERAGE RESOURCES FOR WHEN YOU...

psychologist or therapist virtually. It's easy to use, private, and
in most cases you can see a therapist within four days or less.
The cost, in many cases, is less than what you'd pay for an office
therapy visit, and varies by provider.

...are seeking personal or

mental health assistance
...want an expert ...need to schedule EMPLOYEE ASSISTANCE PROGRAM (EAP): FREE confidential

medical 2nd opinion a procedure access to the following resources:

• 24/7 phone consultations plus up to five (5) face-to-face
counseling sessions for support in areas such as life changes,
addiction, stress, or grief*
BEST DOCTORS: Find a Best Doctor in your area, or HEALTHCARE BLUEBOOK: Find the Fair PriceTM for
• Limited legal and financial consultation for areas such as
receive an expert medical 2nd opinion on a diagnosis thousands of healthcare procedures like MRIs, x-rays,
estate planning, taxes, and debt, plus a 25% discount on
or proposed treatment plan. A member advocate will and CT scans. Use the “Doctor Search” feature to find
select additional legal services
listen to your concerns and prepare your case for review the most cost effective facility your doctor uses - prices
• Free referrals to community resources for family needs
by a carefully selected expert. Best Doctors collects vary based on where doctors provide care. Check out
such as child care
your medical records, retests samples if necessary, quality ratings for hospitals and inpatient facilities.
*State law limits California employees to 3 sessions every 6 months.
and provides a full case report. And certain procedures even come with a cash reward
from Carter's when you visit a "green" provider.
24/7 NURSELINE: Speak with a registered nurse at no
cost to you to get real time advice and determine when
and where you may want to seek additional care.
SEE CONTACTS PAGE TO USE THESE BENEFITS!
BENEFITS ON THIS PAGE
ARE FREE TO CARTER'S The best way to help keep your healthcare costs down is to take charge of
MEDICAL PLAN EMPLOYEES

TIP
...are expecting a new
your health! Keep up-to-date with annual preventive care, understand your
own personal health risks, and make an effort to stay active and eat well!

addition to your family

MAVEN: Maven provides personalized support to expectant moms and dads through a tech-driven platform, giving
you on-demand, immediate, 24/7 access to doctors, therapists, lactation consultants, nutritionists, and more.
Maven’s resources support you through:
• Pregnancy and birth
• Postpartum & infant care
• Your transition back to work
• And even during your first months back at work

Enrollment can happen any time during pregnancy or up to 6 months postpartum, and includes those welcoming
a new child by adoption.

6 - YOUR HEALTH - 2019 BENEFITS 2019 BENEFITS - YOUR HEALTH - 7

 PRESCRIPTION ADDITIONAL
DRUG HEALTH
BENEFITS PROTECTION
TO COMPLEMENT YOUR MEDICAL PLAN

The possibility of an accident or a hospital stay is never an easy thing to think about. For a small
amount out of your paycheck, Carter’s provides two plans that offer protection in the form of a lump
Prescription coverage through Express Scripts is included with every Carter's medical sum payment for out-of-pocket expenses if you or your covered dependents experience a qualified
plan. The plan utilizes the Express Scripts National Preferred Formulary, and select accident or hospital stay (i.e. admission) during the plan year.
preventive medications are covered in full by Carter's. Use the Express Scripts mobile
app or visit express-scripts.com/carters to review the formulary, check if your preventive The Accident Expense Plan provides a per-accident cash benefit, up to an annual plan year
medication is covered at 100%, and price medications at retail pharmacies near you. maximum ($1,000 or $3,000), to reimburse employees for expenses they experience for themselves
or their dependents (e.g. Emergency Care, Urgent Care, Fractures, Physical Therapy). Each employee
or spouse on coverage will have up to the maximum annual benefit for qualified expenses, and
dependent reimbursement is capped as one combined benefit for all children on coverage.

The Hospital Indemnity Plan provides a cash payment if you or your covered dependents experience
CARTER’S PROVIDES YOU WITH a qualified hospital admission during the plan year (all claims require a 24-hour minimum stay and
2 OPTIONS FOR FILLING 90-DAY KEEP IN MIND... are limited to one stay per year per covered member). The plan provides a lump sum Daily Hospital
benefit of $1,000 for the 1st day and $100 per day for days 2 through 30. There is also an in-hospital
PRESCRIPTIONS...
Intensive Care Unit (ICU) benefit that provides an additional lump sum benefit of $100 per day for
(for medications you use regularly at a lower out-of-pocket Certain medications require prior a qualifying ICU confinement on days 1 through 30.
cost (vs. a 30-day supply at retail pharmacies)) authorization (PA) from your
physician (to determine medical
necessity or dosing limits). Be
HOME DELIVERY THROUGH SMART 90 sure your doctor works with the
EXPRESS SCRIPTS WALGREENS Express Scripts PA Department
Want more details or to ensure you know what qualifies for coverage? Review
at 800.753.2851.

TIP
the benefit brochures and videos for each plan at CartersBenefitsCenter.com
A 90-day supply of Pick up your 90-day or on the Kemper page at kemperbenefits.com/enrollment/carters
medication, conveniently supply directly from To manage your out-of-pocket
delivered directly to a Walgreens network costs, work with your doctor to
your home. pharmacy. consider a lower-cost option
when beginning a new course
of treatments.
Ask your doctor to submit a 90-day prescription (plus any
NOTE

The underwriting company for the accident expense product is Reserve National Insurance Company, a Kemper Life & Health Company. Kemper Corporation
(NYSE:KMPR) is one of the nation’s leading insurers, with subsidiaries that provide an array of products to the individual and business markets. Kemper
applicable refills), and update automated refills when switching.
underwriting companies are rated “A-” (Excellent) by A.M. Best Company, a leading insurance industry rating authority. Kemper Corporation is not responsible
for the products of any of its underwriting companies. The underwriting company for the hospital indemnity product is Fidelity Security Life Insurance
Company (FSL). FSL is rated “A-” (Excellent) by A.M. Best Company. FSL is not financially affiliated with Kemper Corporation.

8 - YOUR HEALTH - 2019 BENEFITS 2019 BENEFITS - YOUR HEALTH - 9

 DENTAL VISION
PLANS PLAN IT'S A CLEAR CHOICE

COVERAGE TO SMILE ABOUT

GO IN-NETWORK Carter’s offers two Dental plans from MetLife – Basic and Premier –
IN-NETWORK PLAN HIGHLIGHTS INCLUDE:
so you can choose the coverage that’s best for you and your family.
If you compare the plans, the only difference is that the Premier plan
• Low-cost copay for your annual vision exam and contact lens exam (fitting and evaluation)
You can use any qualified provider, offers a higher annual maximum and lifetime orthodontia benefit.
• Comprehensive coverage for frames, lenses, and contacts
but out-of-network providers may • Access to discounts on a variety of lens options and upgrades such as scratch resistance, anti-reflective
bill you for fees in excess of the coatings, and progressives, plus access to refractive (Lasik) surgery discounts from a nationwide network
amounts negotiated by MetLife. DENTAL COVERAGE INCLUDES:
Visit metlife.com/dental (PDP Plus
Network) to review a list of
• Free preventive and diagnostic care, such as routine exams,
MetLife providers.
cleanings, fluoride treatments (for children under age 19), sealants, BENEFIT SUMMARY IN-NETWORK OUT-OF-NETWORK
and x-rays – plus these diagnostic and preventive services do not
count toward your annual benefit max (plan covers 1 preventive Exams (Every 12 Months) Covered In Full After $10 Copay Up To $45 Reimbursement
Consider requesting a pretreatment visit every 6 months)
Standard Lenses Per Pair (Every 12 Months)
estimate from your dental provider to • Basic treatments such as fillings, extractions, root canals, • Single Vision Covered In Full After $25 Copay Up To $30 Reimbursement
help you avoid unexpected costs. oral surgery and gum disease • Bi-Focal Up To $50 Reimbursement
• Major treatments such as crowns, dentures, and orthodontia • Tri-Focal Up To $65 Reimbursement
• Standard Progressive Up to $55 Copay Up To $50 Reimbursement
coverage (for children under age 19)

Contact Lenses Up To $150 Reimbursement

(Every 12 Months In Maximum member cost of $60 for Up To $105 Reimbursement
Lieu of Frames) contact lens evaluation and fitting

BASIC PLAN PREMIER PLAN

BENEFIT SUMMARY Included With Lenses Copay
YOU PAY: YOU PAY:
Frames - Standard $150 allowance plus 20% off any
Up To $70 Reimbursement
Annual Deductible $50 $50 (Every 24 Months) amount over the allowance
($85 Costco allowance)
Annual Maximum Benefit
$1,000 $3,000 Second Pair Benefit
(separate from orthodontia) This benefit gives you additional eyewear coverage. You can get:
(Lenses: Every 12 Months)
• Two pairs of prescription eyeglasses; or
Diagnostic & Preventive 0% 0% (Frames: Every 24 Months) OR
• One pair of prescription eyeglasses and an allowance toward contact lenses; or
(Contact Lenses: Every 12 Months
• Double your contact lens allowance
in lieu of frames)
Basic Benefits, Restorative 20% 20%

Major Benefits (Crowns, Jackets,

50% 50%
Cast Restorations, Prosthodontics)

Orthodontia Benefit (to age 19) 50% Paid 50% Paid

• Deductible $0 $0 WANT MORE INFORMATION?
• Lifetime Benefit $1,000 $3,000 Review the detailed benefit summary at CartersBenefitsCenter.com.

10 - YOUR HEALTH - 2019 BENEFITS 2019 BENEFITS - YOUR HEALTH - 11

 SPENDING
SPENDING AND
SAVINGS ACCOUNTS FAQS
AND SAVINGS Do I need to enroll each year?

ACCOUNTS
HSAs and FSAs require re-enrollment every year so be sure
to take action during annual enrollment.

What is a qualified expense? Enrolling in the Silver Plan? Don’t

Check out the list of eligible HSA/FSA expenses at forget that Carter’s provides you
CartersBenefitsCenter.com. with a $250 individual / $500
family contribution to a Health
Consider electing one of the tax-advantaged accounts you can use toward qualified Do I need to keep my receipts? Reimbursement Account that Anthem
healthcare and dependent care expenses. Save on taxes and increase your take home pay Be sure to keep your receipts when making any purchase associated with automatically applies to your first
by setting aside money you know you’ll spend during the year for qualified expenses. your HSA or FSA. ConnectYourCare may need a copy of your receipt to covered medical expenses during
validate FSA expenses (required by the IRS), you may decide to submit the plan year (prorated for
a claim for reimbursement, or the IRS may ask to review receipts in the midyear plan entry).
HEALTH SAVINGS ACCOUNT (HSA) FLEXIBLE SPENDING ACCOUNT (FSA) future to validate your expenses.

What if I don’t use all of my FSA within the year?

An HSA is a personal pre-tax savings A Healthcare FSA is an account that lets you Managing your FSA or HSA is easy
Money in any type of FSA that is not used by March 15th of the following
account for eligible healthcare expenses. use pre-tax dollars to pay for eligible healthcare through ConnectYourCare. Visit
year or claimed by June 15th of the following year will be forfeited (lost)*.
Your account always belongs to you expenses for you and your eligible dependents. connectyourcare.com or download
For example, for the 2019 FSA plan year, you will have until March 15,
(not Carter’s). HSAs have a triple tax advantage: A Dependent Care FSA allows you to use pre-tax the app for easy access to review and
2020 to incur expenses and must submit claims by June 15, 2020 to
contributions are pre-tax, any investment gains dollars to pay for eligible dependent care services, submit claims, manage your HSA
use up your account balance.
grow tax-free, and qualified distributions are such as preschool, summer day camp, before or investments, set up direct deposit to
tax-free. You even have the option to invest after school programs, and child or adult daycare. What about HSA “catch up” contributions for those 55 and older? your bank account, and more!
your money within your account. Individuals aged 55 and over may contribute an additional $1,000
above the maximum for each tax year.

BENEFIT SUMMARY Health Savings Account (HSA)

Healthcare Flexible Dependent Care Flexible I’m enrolled in the Bronze Plan, can I elect a Limited Purpose FSA? NEW:
Spending Account (FSA) Spending Account (DCFSA)
In addition to electing an HSA, Bronze Plan participants can also consider
a Limited Purpose FSA to use for eligible healthcare expenses. It’s
IMPORTANT NOTE
Qualified medical, pharmacy, Qualified medical, pharmacy, Qualifying childcare and other For Highly Compensated Employees
What can I use it for?
dental, and vision expenses dental, and vision expenses dependent care expenses important to note that the medical plan deductible must be met during
the plan year before you can access this “use it or lose it” account option
Silver or Gold plan participants
Who’s eligible? Bronze plan participants OR those not enrolled in a
All benefits eligible for medical or pharmacy expenses, but you may access the account for If you are a "Highly Compensated
employees Employee" as defined by the IRS, you
Carter’s medical plan dental or vision expenses as soon as your election is active.
will be limited to a maximum annual
$5,000; $1,600 for "Highly
Is there a $3,500 Employee Only Can my spouse and I both enroll in a Dependent Care FSA? contribution of $1,600 per year in
$2,650 Compensated Employees". See
contribution limit? $7,000 Employee + Dependent(s) the 2019 Dependent Care FSA. This
page 13 for more information. Yes, but be sure that you and your spouse don’t deduct more than $5,000
combined (or a max of $2,500 each if filing individually). You also may not is because Plan non-discrimination
As soon as paycheck As soon as paycheck
When are the funds Your election amount be able to participate if you have a nonworking spouse. Check with your testing results have determined
deductions are deposited deductions are deposited
available? is available on January 1st that we need to limit this amount.
to your account to your account personal tax advisor for more details.
Otherwise, we may need to cut your
HSAs require re-enrollment You forfeit the balance in You forfeit the balance in contributions mid-year and there
during Annual Enrollment each this “use it or lose it account” this “use it or lose it account” could be related tax consequences.
Friendly Reminders
year, but you can change your if you leave Carter’s or don’t if you leave Carter’s or don’t
election amount at any time use the money use the money *Those who separate from the Company in 2019 with an unclaimed FSA balance may submit claims
by June 15, 2020 for claims incurred through their separation date, or, if eligible, may enroll in
after-tax FSA contributions under COBRA to extend their timeframe to incur qualifying claims.

12 - YOUR HEALTH - 2019 BENEFITS 2019 BENEFITS - YOUR HEALTH - 13

 FINANCIAL CARTER'S
PROTECTION 401(k)
SAVINGS PLAN
PLANS TO HELP SAFEGUARD YOUR ASSETS The Carter's 401(k) Savings Plan (the "Plan") is a great way to plan
Visit benefits.ml.com or call
800.228.4015 to update your
elections, investments, or learn
for your financial future. Plus, there’s the potential for an annual
about Plan features.
discretionary match of up to 100% of your contributions!1
LEGAL BENEFIT PLAN KEEP IN MIND...
Under the Plan, you may elect either or both of the following Automated phone support is
contribution types: available 24/7 or you can speak
MetLaw is a legal services plan that provides legal representation for you If you choose not to enroll in to an agent M-F from 8am to 7pm
• Pre-tax Contributions reduce your current taxable income, and any
and your dependents at a price that won’t break your budget. Now you have this plan during annual on any New York Stock Exchange
earnings are tax-deferred. Taxes are due upon withdrawal.2
a resource at your fingertips for important, everyday legal services. What’s enrollment, you will not be business day.
• Roth Contributions are made after taxes are withheld, but any
more, you’ll also have someone to turn to for unexpected legal matters. able to do so until the next earnings are tax-free if you take a qualified distribution.
available annual enrollment
With MetLaw, you can receive legal advice and fully covered legal
window. Learn more at You may choose pre-tax and/or Roth 401(k) contributions in any
services for a wide range of personal legal matters, including:
CartersBenefitsCenter.com combination. However, your total contributions cannot exceed 90% of To help calculate your estimated
• Court appearances for traffic violations • Family law or by calling MetLaw at your eligible pay. Your contributions are subject to the IRS limit, which annual retirement income and
• Legal document review and preparation • Real Estate matters 800.821.6400. is $19,000 in 2019 ($25,000 for age 50+). This limit may be adjusted in review your retirement readiness,
• Estate planning future years. log in to your account and use the
Retirement Income Projection
tool by Merrill Lynch.5
Here is a summary of key plan features:
IDENTITY THEFT PROTECTION PLAN • Eligibility: Full-Time, regular employees who are at least 21 years
of age are eligible to participate after 1 month of employment.3
Protect yourself from the risks associated with identity theft by enrolling in this Plan provided by ID Watchdog. • Auto-Enrollment: We make it easy for you to participate! 90 days Complete Plan details
Coverage includes: after your 1 month eligibility date, you will be automatically enrolled can be found in the
with a 3% pre-tax contribution rate.4 You may opt out if desired. Carter's 401(k) Savings
• Credit and identity monitoring and protection • Automatic Increases: Want to save more? You can elect to have your
• Rapid alert notifications
Plan Summary Plan
contributions increased automatically each year, starting the month
• 100% fully managed resolution services in the case of theft, plus $1 million in expense reimbursement and year of your choice. Description (available
insurance for qualifying financial damages incurred as a result of the theft • Vesting: You will become 100% vested in Company matching in your online account).
contributions after completing four (4) years of qualifying service.6
You may enroll in this Plan at any point during the year, with coverage effective on the 1st of the month
This means you earn 25% of your total match balance for each
following your enrollment. 1
As it is discretionary, the Company reserves the right
calendar year in which you work 1,000 hours (see chart below).
to provide any amount of match, including no match,
Once you are 100% vested, you will always remain 100% vested. and generally you must be employed on the last day
Any contributions you make to the Plan and any applicable of the plan year to be eligible.
2
You may also be subject to a 10% additional federal
earnings are always 100% vested. tax if you take a withdrawal before age 59 ½.
3
Part-Time employees may become eligible for the
Carter’s 401(k) Savings Plan by working more than
WANT MORE DETAILS OR TO ENSURE YOU KNOW WHAT QUALIFIES? 1,000 hours in their initial year of service or any
Visit CartersBenefitsCenter.com or call ID Watchdog at 866.513.1518. COMPANY MATCH VESTING SCHEDULE4 subsequent Plan year.
YEAR 1 YEAR 2 YEAR 3 YEAR 4
4
As soon as administratively possible following 90 days.
5
If you were hired by Carter’s prior to January 1, 2016,
25% 50% 75% 100% your current vested balance remains 100% vested as
well as any future Company match.

14 - YOUR MONEY - 2019 BENEFITS 2019 BENEFITS - YOUR MONEY - 15

 INCOME PLAN COVERAGE PREMIUMS
N E W

PROTECTION
Business Travel 6x annual base earnings
100% Company Paid

PET
Accident (up to $450,000)

Options of 1x to 6x annual base

earnings (up to $450,000). INSURANCE
FOR PEACE OF MIND Please note – There are new
options for 2019. Previously,
Carter’s only offered a fixed
Supplemental AD&D benefit of 6x annual base
(Employee only or earnings to a $350,000 100% employee paid
Employee plus family) maximum. If you are currently
enrolled in this benefit and do
Get “nose to tail” coverage
not take action, you will retain through Nationwide’s My
LIFE INSURANCE (Basic and Supplemental) coverage of 6x annual base
Pet Protection Program
earnings for 2019 (but with
the new $450,000 maximum).
NEW Streamlined and additional
options for Supplemental
Spouse Life Child Life Coverage is available at competitive
group rates through convenient
FOR 2019 Employee Life
Insurance Insurance
payroll deduction. Two plans are
available – one with and one without

PLAN COVERAGE PREMIUMS DISABILITY wellness services (which includes

coverage for exams and blood work,
Disability programs, such as salary continuation, short-term disability, vaccinations, dental cleaning, flea,
Basic Life Insurance 1.5x annual base earnings (up to $450,000) 50% Company Paid*
and long-term disability, are intended to protect your paycheck in the tick, and heartworm preventives,
Choose between options from 1x to 5x event that you cannot work due to your own qualifying serious health
Supplemental Employee Life Insurance
annual base earnings (up to $450,000)
100% employee paid* and spaying/neutering). After
condition. Carter's provides a variety of benefits to help our employees enrolling, you simply visit the licensed
Spouse Life Insurance** $50,000 flat benefit option 100% employee paid* in this area. Benefits vary by employee type and length of service, so go veterinarian of your choice and
online to the Carter's Benefits Center to learn more about the benefits then submit the claim and invoice
Child Life Insurance** $10,000 flat benefit option 100% employee paid*
that apply to you. for reimbursement. Premiums vary
*Individual rates will be available during your enrollment session. by state of residence, type of pet
**You must be enrolled in Carter’s Supplemental Employee Life Insurance to elect Spouse or Child Life Insurance.
and plan selected. Learn more at
PAID TIME OFF AND HOLIDAYS CartersBenefitsCenter.com or by
calling Nationwide at 877.738.7874.
IMPORTANT NOTES You work hard and deserve to relax. The Company provides paid
Vacation or Paid Time Off (PTO) benefits to all eligible employees.
• If you are currently enrolled in the Supplemental Employee Life Insurance benefit and you do Specific eligibility and plan details can be found in the Employee
not take action, you will be enrolled in the next higher multiple of pay option for 2019. Success Guide, as well as details on the Company observed holidays
- Example 1: If you earn $40,000 per year and elected coverage of 1.5x annual base earnings and eligibility for holiday pay.
for 2018, you will be defaulted to the 2x annual base earnings option.
- Example 2: If you earn $40,000 per year and elected coverage of $30,000 for 2018, you will
be defaulted to the 1x annual base earnings option.
• There is a special opportunity this annual enrollment to elect up to 2x annual base earnings for
Supplemental Employee Life Insurance without providing Evidence of Insurability (EOI). After
this special opportunity, new Supplemental Employee Life Insurance elections and increases to
existing coverage will require EOI.
• There is also a special one-time opportunity to enroll in Spouse Life Insurance without providing
EOI. In future annual enrollments, EOI will be required.
• For Child Life Insurance, EOI is not required.

LEARN MORE ABOUT THE LIFE INSURANCE OPTIONS DURING YOUR ENROLLMENT SESSION.

16 - YOUR MONEY - 2019 BENEFITS 2019 BENEFITS - YOUR MONEY - 17

 CARTER'S PERKS
ADDITIONAL BENEFITS Your FREE one-stop-shop for exclusive discounts at
hundreds of national and local merchants. Access the
Carter’s Perks portal at carters.perkspot.com from
any browser, smart phone, or tablet to save on cars,
clothing, electronics, groceries, restaurants, tickets,
travel, and much more!

COMMUTER BENEFITS
To help you save money on your commute to work,
you can use pre-tax paycheck deductions to pay for
qualified transit and/or qualified parking expenses
(up to the IRS monthly maximum amount of $260).
You must place your one-time or recurring monthly
order by the 10th of the month for the following
month. All orders placed by the 10th are processed
and mailed by the 23rd.

EMPLOYEE DISCOUNT
All employees are eligible for a generous discount
on purchases made at all Carter's | OshKosh stores,
and may also participate in the Rewarding Moments
program to earn $10 towards a future purchase
for every $100 you spend. Purchases qualifying for
employee discount must be made by you or your
spouse only using your Employee ID.

TUITION ASSISTANCE PROGRAM

Carter's encourages employees to further their
education for their own personal growth and
professional development. The Tuition Assistance
Program reimburses you for up to 75% of your
qualifying tuition and book expenses upon completion
of courses under an approved, job-related degree
program at an accredited institution. Full-time
employees who have completed 6 months of service
are eligible to apply for Tuition Assistance. The
maximum annual reimbursement amount is $5,250 for
a qualifying Bachelors or Associates degree program
and $10,000 for a qualifying Master's degree program.
Now that's a brilliant plan!

Visit CartersBenefitsCenter.com to learn

more about and access these benefits.

18 - YOUR MONEY - 2019 BENEFITS 2019 BENEFITS - YOUR FAMILY - 19

19
 N E W
FAMILY BENEFITS
BACK-UP
NEW PARENT BENEFITS SCHOLARSHIP PROGRAM DEPENDENT
Employees who welcome a new child to their family
can receive a $50 Carter's | OshKosh giftcard from the
Company to celebrate their newest addition! But that's
not all - eligible employees can also use up to 20 days
Are you or your child graduating high school and
planning to attend college? Consider submitting an
application to the Carter's Scholarship Program for
the 2019-2020 school year! Carter's is committed
CARE
of paid Parental Leave during the first 12 months of
welcoming their new child and can also receive a $500
to supporting the education of Company employees
and their dependents with a $1,500 award for each FAMILY CARE SOLVED!
contribution to the Company­sponsored 529 College selected applicant. Applicants must be a current high
Savings Plan. Employees adopting a child, or welcoming a school senior planning to attend an accredited college/
child via a surrogate, may also be eligible for up to $3,000 university within 6 months of graduation who are
in reimbursement for qualifying expenses. To be eligible either the legal child of a Company employee in good Beginning in 2019, you will have access to a new kind of care
for Parental Leave, the Company 529 contribution, or standing or a Company employee in good standing. for your children, spouse or parents.
adoption/surrogacy benefits, you must be a full time Full eligibility and program details can be found in the
employee with one year of continuous service from Scholarship Program Policy on the Company intranet
Use this program to help you care for your family when an unexpected need arises
your most recent hire date, and apply for benefits and annual applications will be released by May 2019.
• Offered through Bright Horizons, a leading provider of early education and family benefits
within 12 months of the date you welcomed your
• Quality back-up care is available at discounted rates to eligible full-time employees for care
new child to your family.
breakdowns for children, adults or elders

Let it serve as your safety net when:

529 SAVINGS PLAN • Your child is sick and cannot go to school or daycare
• Your regular caregiver is ill or on vacation
Rising education costs make planning ahead a very smart idea. Carter's offers a 529 College Savings Plan, through • School or daycare is closed for holidays or teacher in-service days
Georgia's Path2College program that encourages employees to save for a college education – their own, a family • Your spouse or parent has temporary need for care
member's, or a friend's. Contributions are made through automatic payroll deductions on an after-tax basis. The • You’re transitioning back to work after leave… and more!
earnings on your 529 savings plan are tax-free if you use your account for qualified expenses. This program offers
outstanding features and flexibility, so please contact the Carter's Benefits Center for more information.
TYPE OF CARE COPAY NUMBER OF USES PER EMPLOYEE

Center-Based Child Care

GRANDPARENT'S DAY OFF (network of centers vetted
$15 for one child per day;
$25 per family
by Bright Horizons) 7 days per year are available to
full-time benefits eligible employees
Full-time employees with at least one year of service are eligible for one Grandparent's Day Off per new grandchild
to use when needed (no need to enroll
born/adopted. Access the Carter's intranet for more information. In-Home Care (network during Annual Enrollment)
of providers vetted by $6 per hour
Bright Horizons)

THIS BENEFIT WILL BE AVAILABLE BEGINNING JANUARY 1, 2019.

Register in early 2019 (at no cost) to save time when you need to request care.

20 - YOUR FAMILY - 2019 BENEFITS 2019 BENEFITS - YOUR FAMILY - 21

 CHARITABLE
GIVING
SO KIDS CAN BE KIDS

Carter’s is committed to supporting organizations that promote the health and wellbeing of children through
contributions of time, money, and product. In support of this commitment, the Company has established a variety
of programs to encourage employees to support organizations of their choice. Summaries of these programs are
provided below. Please review the Company policy on the Carter’s intranet for additional details on each program.

MATCHING Carter’s is proud to match 100% of every dollar given by an eligible full-time
employee to charitable organizations that benefit the health and wellbeing
GIFTS
of children, up to $500 per employee per calendar year.

CARTER'S IN THE All eligible full-time U.S. employees who spend 16 hours volunteering at an eligible
school can earn a $250 cash grant from Carter’s for that school. Employees may
CLASSROOM apply for one Carter’s in the Classroom grant per calendar year.

VOLUNTEER Full-time Corporate employees, Distribution Center employees, and Retail District
Managers and above in the field are eligible to receive 16 hours of paid Volunteer
TIME Time each calendar year to support charitable organizations of their choosing.
Please note that manager approval is required before utilizing volunteer time.

We have a new matching gifts and volunteer

WE'VE MOVED! time tracking system. Make your donations
directly through the website for easy matching!
VISIT CARTERS.BENEVITY.ORG TO CHECK IT OUT!

The first time you visit the new site, register using your Carter's Employee ID number

NOTE
as your username, and your date of birth following Carter's in the following format:
Carter'sMMDDYYYY. The "C" in Carter's must be capitalized.

22 - YOUR COMMUNITY - 2019 BENEFITS 2019 BENEFITS - YOUR COMMUNITY - 23

 FREQUENTLY ASKED BENEFITS

QUESTIONS PREMIUMS
You and Carter's share in the cost of medical coverage, with Carter's paying the majority of the cost.
CAN MY DEPENDENT(S) SELECT A DIFFERENT MEDICAL PLAN FROM ME? You will pay $50 per month more for medical coverage if you or any of your covered dependents use
No. You and your dependent(s) must all have the same medical plan. tobacco. You are required to complete a tobacco attestation during your enrollment session.

MEDICAL PLAN BI-WEEKLY PREMIUMS

MUST I ENROLL MY DEPENDENT(S) IN ALL OF THE PLANS THAT I SELECT?
No. For instance, you may choose to elect medical and dental for yourself and your spouse may BRONZE PLAN SILVER PLAN GOLD PLAN
keep medical coverage under his/her employer’s plan. However, your dependent(s) may still BENEFIT TIER
NON-TOBACCO TOBACCO NON-TOBACCO TOBACCO NON-TOBACCO TOBACCO
want to enroll in your dental plan with you.
Employee Only $54.58 $77.66 $82.61 $105.69 $99.50 $122.58
Employee + Spouse $171.49 $194.57 $227.56 $250.64 $261.34 $284.42
WILL I RECEIVE A NEW ID CARD FOR THE 2019 PLAN YEAR? Employee + Child(ren) $134.02 $157.10 $185.87 $208.95 $217.12 $240.20
You will only receive a new ID card if you made changes to your plans
Employee + Family $219.53 $242.61 $306.43 $329.51 $358.79 $381.87
during Annual Enrollment or if you enrolled for the first time.

DENTAL PLAN BI-WEEKLY PREMIUMS VISION PLAN BI-WEEKLY PREMIUMS

I HAVE MOVED RECENTLY. DO YOU NEED MY NEW ADDRESS AND WHAT SHOULD I DO? BENEFIT TIER BASIC PLAN PREMIER PLAN BENEFIT TIER BASIC PLAN
Yes. By updating your address, you ensure that you will receive all communications regarding your
Employee Only $11.34 $12.81 Employee Only $3.05
health and insurance plans plus any other Company mailings. Take action at portal.adp.com
(company registration code CARTEROSH-ESS). Employee + Spouse $22.92 $25.94 Employee + Spouse $4.35
Employee + Child $22.92 $25.94 Employee + Child $4.35
Family (Employee + Family (Employee +
I AM A LEGAL GUARDIAN TO A CHILD. IS HE/SHE ELIGIBLE TO RECEIVE BENEFITS THROUGH ME? $41.62 $47.55 $7.80
Spouse and/or Child(ren)) Spouse and/or Child(ren))
Yes. A child is defined as your natural child, stepchild, and legally adopted child for whom you have
been appointed as the legal guardian, or your spouse's child for whom you have legal LEGAL BENEFIT PLAN AND IDENTITY THEFT PROTECTION PLAN BI-WEEKLY PREMIUMS
responsibility resulting from a valid court decree.
BENEFIT TIER LEGAL PLAN IDENTITY THEFT PLAN
Employee Only $8.31 $4.13
WHERE CAN I FIND OUT MORE INFORMATION ABOUT MY BENEFITS?
Employee + Family $8.31 $8.28
Call the Carter’s Benefits Center at 855.614.0186 or visit CartersBenefitsCenter.com.

ACCIDENT EXPENSE BI-WEEKLY PREMIUMS HOSPITAL INDEMNITY BI-WEEKLY PREMIUMS

BENEFIT TIER $1,000 PLAN $3,000 PLAN BENEFIT TIER HOSPITAL INDEMNITY PLAN
Employee Only $4.08 $8.19 Employee Only $4.96
Employee + Spouse $6.94 $13.92 Employee + Spouse $9.92
Employee + Child(ren) $7.75 $15.56 Employee + Child(ren) $9.32
This guide describes the benefit plans available to you as an employee of Carter’s. The benefits material in this guide is provided as a convenience.
Every effort has been made to ensure the accuracy of this material, however, more detailed information about coverage and/or benefits specific Employee + Family $10.20 $20.48 Employee + Family $14.28
to you, based on your employee group, is available in the Summary Plan Description (SPD) for The William Carter Company Welfare Benefit Plan
(the “Plan”), our overall benefit program, as well as specific SPDs for each of the individual benefit programs under the Plan and should serve as
your primary resource for benefit information. Additional information regarding Company policies that are not referenced in the SPDs may also
be found in the Company's Employee Success Guide or HR Policy documents. If you are not clear about the benefits available to you, contact Additional benefit premiums not shown in the guide will be
a member of the Human Resources team. In the event the information in this guide differs from the official Company documents, the official available during your enrollment session.
Company documents will control (Plan or Policy documents). Additionally, if the premium rates in this guide differ from the rates in the Carter’s
Benefits Center enrollment system, the enrollment system will control. Carter’s reserves the right to amend or terminate the plan(s) or program(s)
at any time. This guide does not constitute a contract and participation in any of the benefit plans does not guarantee employment.

24
24 2019 BENEFITS 2019 BENEFITS 25
 2019 CONTACTS
401(k) Merrill Lynch Healthcare Bluebook Maven
800.228.4015 800.341.0504 [email protected]
benefits.ml.com healthcarebluebook.com/cc/carters mavenclinic.com/carters
Mobile app Company Code: CRI
529 College Savings Plan Medical Plan: Anthem
877.424.4377 Hospital Indemnity Plan: Kemper 855.405.3984
path2college529.com 877.851.0890 anthem.com
kemperbenefits.com
Accident Expense Plan: Kemper MetLife Dental
877.851.0890 Identity Theft Protection: 800.438.6388
kemperbenefits.com ID Watchdog metlife.com/dental
866.513.1518
Back-Up Dependent Care idwatchdog.com MetLife Vision
877.242.2737 855.638.3931
CartersBenefitsCenter.com Legal Plan: MetLaw metlife.com/vision
Username: Carter’s 800.821.6400
Password: Carter’s info.legalplans.com Nationwide Pet Insurance
Access Code: Legal 877.738.7874
Best Doctors CartersBenefitsCenter.com
866.904.0910 LiveHealth Online
members.bestdoctors.com 855.603.7985 Prescription Plan:
livehealthonline.com Express Scripts
Carter’s Benefits Center 855.812.5193
855.614.0186 LOA/STD/LTD: Matrix express-scripts.com
CartersBenefitsCenter.com 877.202.0055
matrixabsence.com Tobacco Cessation Program
Connect Your Care
2018: 877.252.8410
877.292.4040
Matching Gifts and Volunteer 2019: 888.548.3432
connectyourcare.com
Time Program
Employee Assistance Program carters.benevity.org
844.640.WELL (9355)
rsli.acieap.com

MOBILE USING MOBILE APPS CAN MAKE IT

EASIER TO MANAGE YOUR HEALTHCARE!

APPS
Access helpful tools to get what you need on the go – with
just a few clicks! Get access to doctor locations, pharmacy
reminders, claims status, virtual ID cards, and so much more.

NOW YOU CAN ENROLL IN BENEFITS ONLINE THROUGH THE MYCHOICE APP:
1. Download MyChoice from the Apple iTunes Store or the Android Play store.
2. Log into your account at CartersBenefitsCenter.com to get an access code.
3. Enter the access code in the MyChoice app and start exploring!

26
26 2019 BENEFITS 2019 BENEFITS 27
27
 20 1 9 C ARTE R ' S B E N E FI T S

28 2019 BENEFITS