In observance of the upcoming holidays, RMI will be closed on the following dates:

Christmas
Friday, December 24 and Monday, December 27, 2010
New Year’s Day
Friday, December 31, 2010

RMI is pleased to announce that Josh Andelin was recently hired as an Account Executive in RMI's St. George office. Josh graduated with honors from Weber State University with a Bachelor's degree in Technical Sales. A St. George native, Josh has worked in various sales positions in the area, including with The Tax Club, Rotech Healthcare, BankMark and Allconnect. Josh is married with two children and enjoys traveling and sports. He is looking forward to expanding the client base in the St. George area and is excited to be part of the RMI team.

RMI welcomes Caroline Taylor to our Finance Department in the Corporate office. Caroline is originally from Ohio and graduated from Southern Utah University with a Bachelor's degree in Accounting. Caroline's core work experience has been with two CPA firms, Steyer & Co. and Cook Martin Poulson, PC. She volunteers with the English Learning Center to help refugees learn English and has spent time volunteering with children with disabilities. Caroline is busy preparing for a wedding. Caroline is excited to be working with RMI and finds the staff "fantastic."

RMI is excited to welcome our newest Payroll Manager, Felina Cordova. Felina graduated from Union College in Lincoln, Nebraska with a Bachelor's degree in Business Administration with an emphasis in Management and Marketing. She previously worked for MRA Forensic Sciences as their office manager before joining RMI. Felina is a Salt Lake City native and her interests include reading and gaming. She is looking forward to working with our clients and is happy to join the RMI family.

For employees that work for an RMI client company that offers a basic life insurance policy to it's full-time employees and are paying for dependent life insurance coverage, the small monthly premium that the employee pays is currently being deducted from paychecks pre-tax. Beginning with the first January 2011 payroll, this premium will no longer be deducted pre-tax. All basic life dependent premiums will now be deducted on a post-tax basis. Since the monthly premium is typically less than $1.00 per month, employees will only end up paying a few additional pennies each month in taxes.

This does not affect supplemental dependent life insurance premiums. These premiums always have been deducted post-tax.

If you or your employees have any questions about how the basic life dependent premium will be deducted in 2011, please contact RMI's Benefits Department at (888) 764-0200.

Beginning November 15, 2010 through December 17, 2010 is open enrollment for the 2011 125(c) Flexible Spending Account Plan for all eligible RMI employees. The 125(c) Plan allows employees to set aside money from each paycheck on a pre-tax basis to be used for out-of-pocket medical, dental, vision, and child care expenses. Examples of expenses that qualify for reimbursement under the 125(c) Plan can be found under the following link: http://www.nbsbenefits.com/documents/SampleExpensesForm.pdf. For a more detailed summary, please review the Summary Plan Description or watch the video entitled, "The Basics of Flexible Spending," on our website at www.rminc.com.

Due to changes under Health Care Reform, employees will no longer be able to receive reimbursement under the 125(c) Plan for over-the-counter (OTC) items purchased after December 31, 2010 unless a prescription from a medical provider is obtained. This does not affect the purchase of insulin and items not considered medicines or drugs (e.g., crutches, bandages, etc.) Please be sure not to include the cost of any OTC items in your annual calculations when enrolling for 2011.

The maximum contribution for medical, dental (non-orthodontic), and vision expenses for 2011 is $5,000. The dependent care reimbursement maximum, set forth by the IRS, is also $5,000. RMI additionally offers a third category for orthodontic expenses and the maximum of $5,000. All expenses for orthodontic work must be claimed under the orthodontic category and cannot be claimed under the general medical/dental category. If you have questions in regards to the different categories, please contact our office for further clarification.

RMI requires all current participants to re-enroll each year for continued participation in the Plan. If you are currently enrolled for 2010 and would like to re-enroll for 2011, please log on to RMI's website at www.rminc.com, click on Employee Resource Center, then Benefits Links, and then click on the link to the National Benefit Services (NBS) website. From the NBS website, you can re-enroll on-line without having to submit any paperwork to RMI. All re-enrollees MUST enroll through the NBS website; no paper forms will be accepted. On the website, you will also be able to view your 2010 election amounts, verify your direct deposit information, or set up new direct deposit information.

If you have previously logged into the NBS website signed up for an account, your user ID and password have been reset to default. You will need to sign up again be able to re-enroll and view your information.

If you are not a current 2010 participant and would like to begin participating in 2011, you will need to complete the 125(c) Election Form found on RMI's website. The form can be faxed to (801) 355-0261, e-mailed to benefits@rminc.com or mailed to our office in Salt Lake City.

Listed below is important information you should understand before enrolling in the Flexible Spending Account Plan for 2011:

• The IRS has established a "use it or lose it" rule for 125(c) Plans to protect against tax evasion. When enrolling, you should contribute a conservative amount to ensure that you are able to use your entire account balance prior to December 31st.



• RMI's Plan runs on a calendar year. Only expenses from 2011 will be eligible for reimbursement under the Plan in 2011.



• If you terminate employment mid-year, you cannot submit expenses for claims incurred after your termination date.



• If you are participating in the day-care category of the Plan, you will need to submit a new continual reimbursement for the 2011 Plan year. This form can be found on RMI's website. Please also note that you will be required to submit quarterly receipts to NBS for continued reimbursement.



• Claims payment tracking can be found by accessing your on-line account. You can use this feature to track your reimbursements and monitor your account balance. A 24-hour toll-free number (888) FLEX-125 is also available for you to use to acquire information regarding your balances and payment history.



• Claims can be submitted on-line which means that you do not have to submit receipts through fax or mail.

All 125(c) election forms for new participants and all on-line enrollments for current participants MUST be received by RMI no later than December 17, 2010. On December 18, 2010 the on-line enrollment feature through the NBS website will be turned off and you will not be able to enroll after this date.

If you have any questions regarding the 125(c) Flexible Spending Account Plan or if you need assistance with enrolling either on-line or with a form, please contact the Benefits Department at (888) 764-0200.

If you plan on issuing year-end bonuses to your employees, please call your Payroll Manager at (888) 764-0200 to coordinate the processing schedule. Please call to finalize these details at least two days prior to RMI processing your last regular payroll in the month of December. The cost for each additional year-end bonus check is $3.00 (not processed on a regular paycheck).

If you process a bonus check for an employee but decide to void the check, the original check must be given to your Payroll Manager and voided before the end of the year. Due to the complexity and labor involved in backing out past year payroll wages, we ask that you please verify and correct all 2010 wages with your Payroll Manager prior to December 31, 2010. Since RMI incurs tax penalties for processing past year wage and tax corrections, all check reversal requests received after the end of the year will be charged a $50.00 service fee instead of $9.00. This service fee not only applies to bonus check reversals, but any check reversal requests that are received after the end of the year. After the first week in January, RMI will be unable to reverse any checks from the prior year.

If you have any questions regarding year-end bonuses and check reversals, please contact your Payroll Manager at (888) 764-0200.

With 2011 quickly approaching, it is important to be aware that several states and local governments are increasing their minimum wage on January 1, 2011. The current federal minimum wage is $7.25 per hour, which may be higher or lower than some states' or local governments' minimum wage. Whichever wage is higher is the minimum wage that is required to be paid. The following table indicates the current state minimum wages and upcoming changes that have been announced to date:

For more information on minimum wage, please contact you RMI HR Representative or Payroll Manager.

If an employee is injured, please complete an Employee Injury Report and submit it to RMI within twenty-four hours of the occurrence. Delays in reporting injuries can result in problems in filing a worker's compensation claim, increased costs on the claim, and possible delays in recovery. Please always submit an Employee Injury Report even if the employee does not initially seek medical treatment: having a report on file is important if they need to seek treatment at a later time. Be sure to indicate if the employee has missed any time from work as a result of their injury.

You may download the form from our website and send the completed Employee Injury Report to your HR Representative at your area RMI office.

Alcohol-related crashes account for pain and sorrow every day for too many families in this country. In fact, the Centers for Disease Control and Prevention (CDC) analyzed the crash data and disclosed that thirty-two people die every day in the United States in a motor vehicle crash that involves an alcohol-impaired driver. That translates to one alcohol-related fatality every forty-five minutes. That fact alone should make one stop and consider his or her own drinking behavior, as well as increase awareness when driving.

How big is the problem?

• In 2008, 11,773 people were killed in alcohol-impaired driving crashes, accounting for nearly one-third (32%) of all traffic-related deaths in the United States.
• Of the 1,347 traffic fatalities among children ages 0 to 14 years in 2008, about one out of every six (16%) involved an alcohol-impaired driver.
• Of the 216 child passengers ages 14 and younger who died in alcohol-impaired driving crashes in 2008, about half (99) were riding in the vehicle with the alcohol-impaired driver.
• In 2008, over 1.4 million drivers were arrested for driving under the influence of alcohol or narcotics. That's fewer than 1% of the 159 million self-reported episodes of alcohol-impaired driving among US adults each year.
• Drugs other than alcohol (e.g., marijuana and cocaine) are involved in about 18% of motor vehicle driver deaths. These other drugs are often used in combination with alcohol.

"Drunk driving is deadly, it's against the law, and unfortunately it's still a problem," said US Transportation Secretary LaHood. "With the help of law enforcement around the country, we are going to continue doing all that we can to stop drunk driving and the needless tragedies that result from this reckless behavior." Personal responsibility for drinking alcohol and knowing when not to drive are the most important factors in preventing alcohol-related crashes. Peer pressure to not drink and drive can have a positive consequence on individual decision-making and encourage people to use a designated driver, taxi, or public transportation after consuming alcohol. In addition, law enforcement actions such as more roadside sobriety checkpoints and targeted enforcement zones are being implemented nationwide to remove impaired drivers from our roadways.

Make the right decision: Drink moderately and assign a designated driver for safe traveling. Step up and stop a friend from getting behind the wheel after drinking. Your decisive action can save a life.

An accident is an unplanned and unforeseen event that can interrupt the flow of production, sales or service. Understanding how the costs of accidents can affect your company's bottom line is critical. The more accidents that occur in a workplace, the higher the costs, both in increased insurance premiums and greater indirect costs.

According to the National Safety Council, the indirect costs of industrial accidents are approximately four times the actual direct costs. The illustration of the iceberg, below, shows how the "visible" direct costs are only a portion of the total cost of an accident.

Direct costs represent the workers compensation and other medical claim costs. Workers compensation claim costs include:

• Medical bills
• Indemnity
• Percentage of weekly wage
• Permanent and partial disability
• Death benefits
• Legal fees
• Claim processing/handling charges

Indirect costs are unbudgeted costs associated with the accident that are required to get the company back to pre-accident status. These costs represent a significant drain on a company's resources. They may include:

• Loss in earning power
• Loss of product/services
• Supervisors' lost time for accident investigations, meetings, report writing, etc.
• Cost of training a substitute
• Damage to equipment, machinery, materials, facility, etc.
• Overtime costs
• Recruiting and training replacement
• Employee morale
• Potential OSHA penalties
• Attorney's fees

To reduce your accident costs, evaluate your safety process to be sure it addresses the following areas:

• Management leadership and employee involvement
• Worksite analysis
• Hazard prevention and control
• Safety and health training
• Injury management and return to work

Your RMI HR Representative can assist you in evaluating and implementing the above. RMI has a return to work program and can assist you in keeping your workers' compensation costs down as well as help injured employees return to work as quickly as possible. Contact your RMI HR Representative with any specific safety needs for your workplace.