Caring For Those Who Serve Basic Protection Plan (BPP) Replacement

2 BPP Replacement Our Direction Plan 2: Clergy Supplemental Life Insurance Plan Clergy (actives and retirees) enrolled in CPP Plan sponsor elects and pays for coverage new Unum 1 plans …with the following new Unum 1 plans: Plan 1: Lay LTD and Life Insurance Plan Lay employees 2 (actives for LTD; actives and retirees for Life) Plan sponsor elects and pays for coverage Plan 3: Optional Life Insurance Plan Lay Life, CPP or Clergy Supplemental Life enrollees Participant elects and pays for coverage (plan sponsor still needs to sponsor the plan) 1 Fully-insured plans administered by Unum; DBP and DBP Plus benefits remain unchanged and will also be administered by Unum 2 Also includes clergy not eligible for CPP (conference-responsible and/or non-conference responsible) current To replace the current Basic Protection Plan…

3 BPP Replacement Lay Plan Sponsor Choices Lay LTD and Life Insurance Plan LTD and/or Life coverage Lay and/or Clergy (not eligible for CPP) CPP Plan Sponsors – local pastors and/or MODs Non-CPP Plan Sponsors – all Clergy handled same as Lay Actives; or Actives and Retirees Spouses and/or dependent children (of actives) Optional Life Insurance Plan Lay Life participants (actives)

4 BPP Replacement Clergy Plan Sponsor Choices Clergy Supplemental Life Insurance Plan Actives; or Actives and Retirees (covered in CPP) Spouses and/or dependent children (of actives) Optional Life Insurance Plan CPP participants (actives)

5 BPP Replacement Eligibility and Enrollment Criteria For Lay LTD & Life and Clergy Supplemental Life: (Plan Sponsor elects and pays for coverage) Eligibility Criteria Active employees* Minimum hours of service Initial minimum service Minimum age Retired employees Minimum years in plan prior to retirement Enrollment Criteria 100% of eligible population *Includes employees actively-at-work; not those on leave

6 BPP Replacement Eligibility and Enrollment Criteria (cont.) For Optional Life Plan: (Participant elects and pays for coverage) Eligibility criteria Active participants only Lay Life plan participant Comprehensive Protection Plan participant And meets minimum hours of service Spouses & dependent children Enrollment criteria No plan sponsor enrollment requirement

7 BPP Replacement Unique Eligibility Situations BPP Contributory Plan Sponsors (based on BPP Adoption Agreement election) Retiree Life and LTD No contributory options in new plans Can remain contributory for one year under new Unum plan(s) Active Lay & Clergy Life Optional Life Insurance Plan; continued contributory option For Lay, still requires some base Lay Life plan coverage For Clergy, would still need to be covered in CPP and at a 50%+ service appointment For Lay & Clergy, may still require BPP life coverage through 1 st quarter 09 (since Optional Life enrollment period is 1Q 09) ; pro-rate plan sponsor BPP invoice for first quarter Need to work with Conference Liaison; commitment on direction necessary in June/July timeframe New plan(s) adoption agreement will include one-year contributory amendment (if applicable)