Long Term Disability Insurance Plan - General Information

The following pages describe the principal features of your Long Term Disability Insurance Plan. This insurance provides you and your family with protection against complete loss of income during a long period of absence because of a disabling illness or injury.

In addition to providing you with monthly income payments, the plan also provides for continuation of monthly contributions to your Retirement Plan. Medical and Life insurance coverage will also continue as long as you are totally disabled.

Who Is Eligible?

Active Employees - All regular employees age 30 or over who work at least 20 hours a week are required to participate in the Long Term Disability Insurance Plan. Enrollment in the plan takes place on the first day of employment or upon the employee?s 30th birthday. Employees under age 30 may participate at their option.

Employees on Leave of Absence - Except as noted below, if you are granted a leave of absence, you may continue your Long Term Disability Insurance coverage for up to one year from the starting date of your leave. You must make the necessary arrangements for prepaying premiums.

Continuation of insurance is not allowed while on leave for other employment when (1) the other employer offers equivalent coverage or (2) the other employer is an agency or prime contractor of the federal government that will cover the employee under its insurance program.

Outline of Your Long Term Disability Plan

Monthly Income Benefits - You will be eligible to receive Long Term Disability Insurance benefits if you are totally disabled as a result of accident or sickness and are unable to perform the duties of your occupation or employment for a continuous period of six months. Commencing with the seventh consecutive month of disability, you will receive monthly income payments equal to 60% of your monthly full- or part-time base salary.

Your monthly income payments will be reduced by any amount of disability income you are entitled to receive from Workers? Compensation and the amount of Social Security benefits received by you and your dependents. Any increases in Social Security benefits will not cause any further reduction in your Long Term Disability benefits.

How Long Will You Receive Monthly Benefit Payments? - If you become disabled, benefit payment will be paid as indicated in the following schedule:

Disabilities related to mental and nervous disorders will be limited to 24 months unless the individual is hospitalized at the end of 24 months.

Other Benefits Provided While You Are on Long Term Disability Status

Contributions to the Retirement Plan - If you were a participant in the regular AUI Retirement Plan before becoming disabled, monthly contributions will continue to be made by the insurance carrier to your Retirement Plan as long as you qualify for income benefit payments.

The monthly contribution to your Retirement Plan will amount to 13% of your basic monthly earnings.

Medical Insurance Coverage - As long as you continue to qualify for Long Term Disability benefits and you pay the appropriate employee contributions in force, as adjusted each year, you and your eligible dependents will be provided with group medical insurance coverage.

If you qualify for Medicare Health Insurance coverage because of your disability, or if you have reached age 65, you will continue to be covered by the AUI Medical Insurance Plan as a retired employee. Refer to Part I for effect of Medicare.)

Life Insurance Coverage - As long as you continue to qualify for Long Term Disability benefits, you will be provided with the group life insurance coverage that you received before your disability at no cost. If you are entitled to Long Term Disability Insurance benefits beyond age 65, the amount of your group life insurance coverage will be reduced as indicated in Part III: Maximum Life Insurance Coverage Available - Employees Age 65 and Over.

Dental Assistance Plan Coverage - If you were enrolled in the Dental Assistance Plan, you and your eligible dependents may continue your coverage by payment of the appropriate employee contributions. This coverage will cease when Long Term Disability Insurance benefits are discontinued.

What Will Happen If You Return to Work And Become Disabled Again? - If, after receiving Long Term Disability benefits, you return to work on a full-time basis and again become disabled, you will be eligible for the continuation of your previous Long Term Disability benefits and will not be required to establish a new six-month disability qualifying period, provided that your disability recurs within three months after you return to work and is due to a similar or related cause.

If, however, your disability has an entirely new and unrelated cause or if you have returned to work on a full-time basis for more than three months, you will be required to establish a new six-month disability qualifying period before becoming eligible for Long Term Disability benefits.

Employee Premiums for Long Term Disability Insurance

The employee premium for long term disability insurance coverage is 1/4 of 1% of your bi-weekly or monthly base salary, as illustrated below:

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