1. Supplemental Disability Open Enrollment Choice in November 2005

2. What will employees be able to do? During November 2005 Open Enrollment:  Enroll for the first time (even if they’ve previously been denied enrollment by Liberty Mutual or previous carriers)  Shorten their waiting period No statement of health required Coverage effective 1/1/2006

3. Special, One-time Event  Plan has not been “open” since 1992  Provides opportunity that many have asked UC to provide

4. Why Enroll?  30% of workers, aged 35-65, will become disabled for 90+ days  Half of all mortgage foreclosures result because homeowner can’t work  UC’s Short-Term and Supplemental Disability Plans rated highly by current claimants

5. Eligible to Enroll/Change  BELI 1 – Full Benefits  Actively at work or on leave Those on leave will be effective upon return to active status

6. Are premiums going up?  Premiums have decreased in each of last two years  Premiums for 2006 will not increase from 2005 levels  Plan is in excellent financial position

7. Any Limitations?  Effective Date Must be in “active employment” and on pay status on January 1 for changes to become effective on that date. Paid vacation/holiday counts as active employment  Pre-existing Condition Exclusion During the first year of coverage, benefits for disability due to pre-existing condition limited to only 12 months. Limitation is to long-term benefits only

8. How Limitations Apply  Enrolling for the first time Limits on both effective date and pre-existing conditions apply  Shortening the waiting period Only limits on effective date apply

9. Impact on Coverage: Example  Employee has medical need for knee surgery, but scheduled date is somewhat flexible  Surgery scheduled for December  Enrolls for first time in November Coverage begins for dates of disability after 1/1/2006. Disability due to knee surgery in December not covered.

10. Impact on Coverage: Example  Pregnant Employee changes from 90-day wait to 7-day wait in November  Baby due in May Coverage begins for dates of disability after 1/1/2006. Disability due to childbirth in May is covered with 7-day wait. Since coverage was previously in place, no pre-ex limit applies

11. Communications  May 2005: Announcement in HR/Benefits Briefing  September 2005: Targeted, personalized mailings to all eligible faculty and staff who are not enrolled Targeted, personalized mailings to all faculty and staff who are currently enrolled regarding waiting periods  October 2005: Open Enrollment materials  November 2005: Liberty Mutual will provide an 800# service to answer employee questions

12. Questions  Any questions?  Can you help get the word out?