2008 M/C Group Life Insurance Update

IMPORTANT INFORMATION
The 2008 annual update of the Management/Confidential (M/C) Group Life Insurance Plan is now in progress. This information is to advise you of changes that may affect your coverage. Please review this information carefully. If you have any questions regarding your enrollment in the plan or if you desire to make changes in your M/C Life Insurance coverage, please contact Human Resource Management, ext. 4821.

AUTOMATIC CHANGES
The annual update will result in automatic changes for:

• Any enrollee who has reached a higher five year premium age bracket as of September 1, 2008.
• Any enrollee whose age as of September 1, 2008 required a reduction in coverage.
• Any enrollee covered for a multiple of annual salary whose salary has changed as of June 1, 2008 by an amount sufficient to affect the amount of total coverage.

Effective September 1, 2008, the Personal Life rates will be reduced by 25% and the rates for AD&D will be reduced by 50%. There will be no rate change for Dependent Life and Accident and Sickness coverage.

CHANGES THAT ARE NOT AUTOMATIC
You must contact Human Resource Management (ext. 4821) promptly if:

• You want to change your beneficiary
• You and your spouse are both enrolled as employees in the M/C Group Life Insurance Plan, and both are insuring children. Insurance industry practice allows children to be insured as dependent of only one employee under any one group insurance program. If duplicate coverage of dependent children is confirmed, coverage will be changed retroactively to comply. You must also review the continued eligibility of your dependent children. Advise Human Resource Management if your child is no longer eligible to continue coverage. If you are interested in a separate conversion policy for your child, you may request a “Conversion of Group Life benefits to an Individual Policy” form from the Employee Benefits Office.
• You want to change your status as a smoker. Individuals presently enrolled as “smoker” who have not smoked since September 1, 2007, may now apply for the special nonsmoker premium discount. to be eligible for a rate reduction, you must submit your application to the employee Benefits Office by September 30, 2008.
• You want to either increase or decrease your multiple of salary option. You must fill out a PS-934, M/C Life insurance Transaction form. Any increase in coverage requires that you submit a Statement of Health form directly to MetLife.
• You are planning to retire and wish to cancel your M/C Life Insurance. Your benefits will continue in retirement at the same level unless a written request is received from you indicating that you wish to cancel your coverage. to cancel your coverage, complete form PS-932 “M/C Life Insurance Transition to Retirement Notice” and select option 3, Cancellation of M/C Life Insurance coverage.

If you wish to convert the amount of coverage lost to a private policy, the Employee Benefits Office can provide you with a conversion form. If your coverage is reduced, your spouse’s coverage may also be reduced. Spouse’s coverage is limited to 50% of the enrollee’s coverage or $20,000, whichever is less.

You are covered for AD&D coverage equal to the amount of your personal life insurance with a maximum amount of $250,000. This benefit is affected by mandatory age reductions at 65, 70, etc. As long as you work, you will be covered for AD&D. For enrollees choosing a multiple of salary option facing mandatory age reductions, AD&D coverage will not go below $15,000; this is similar to your personal life insurance benefit. If you retire, and your age is 70 or older, your AD&D ceases.

BIWEEKLY RATE SCHEDULE - RATES EFFECTIVE SEPTEMBER 1, 2008
EMPLOYEE LIFE AND AD&D

* Maximum AD&D Benefit is $250,000
** Equal to 50% of enrollees coverage with a maximum of $20,000
*** This $0.23 premium cost provides $4,000 coverage for each eligible child