Study of Employee Benefits—2011 and Beyond Group Life and AD&D Insurance Used prior claim experience for each entity (Communications, Business, Wireless) and applied 100% credibility to develop self-supporting rates Objective was to develop the most competitive cost structure possible Established rates for groups on combined basis and with new single plan design as conveyed in RFP Retirement Funding Account Tax-advantaged financial instrument used to fund qualified Retiree Life Insurance obligations; regulated by IRS code Currently in place for South Retirees Investment gain on RFA deposits / monies build on tax exempt basis OPEB liability for PVFB of South Retiree group life insurance relative to current RFA level is important

Study of Employee Benefits—2011 and Beyond Group Life and AD&D Insurance 100% credibility for self-supporting rates Develop competitive cost structure Group rates combined with single plan Retirement Funding Account Fund Retiree Life Insurance Investment gain on RFA deposits OPEB liability

Advantages of Choosing Prudential Innovative Products and Services Enhanced offerings help keep your employee benefits competitive Expert Implementation and Account Management Proven project management staff provides flawless account installation Experienced, responsive account team focuses on value-added service Best-in-Class Technology Easy access and functionality streamlines program administration Exceptional Enrollment Capabilities Professional enrollment portfolio gives valuable campaign options Industry Leader Brand recognition helps ensure employee satisfaction with your carrier selection

Record-Keeping Services—The Details by Group 273 Clients ■ 2.8M Covered Employees ■ 95% Persistency Basic / Optional GUL / GVUL Active Retiree Direct Bill Groups Beneficiary and Assignment Services Accept paper or Web All records on Web available 24 x 7 Provide confirmations Process changes and permit self-service Re-solicit for updated records Termination Services (Portability and Conversion) Accept termination files Mail materials to terminated employees with two notices Process portability forms Provide ongoing direct-billing for ported policies Life Claim Facilitation Services Prepare claims with eligibility data Collect supporting documents and certified death certificate Perform follow-up mailings Pay claim via SHC’s dedicated claim team Billing Accept Hewitt and SHC self-billed files Direct bill specified GUL population Eligibility Prudential will transfer and house records

Building a Better Employee Experience June 12, 2012 RealChallenges. Real Solutions. Real Results.

Building a Better Employee Experience June 12, 2012 RealChallenges. Real Solutions. Real Results.

Building a Better Employee Experience June 12, 2012 RealChallenges. Real Solutions. Real Results.