MEMORANDUM

EMPLOYEE BENEFIT PLAN ENROLLMENT PACKET

2007

This packet includes the following information:

MemorandumComparison of Health Insurance Benefit OptionsDental Plan HighlightsAFLAC Cancer InsuranceDisability Insurance OptionsLife Insurance OptionsLong-Term Care InsuranceVision Care InsuranceVision DiscountsTax-Sheltered Annuity CompaniesRetirement PlansUpdating Your Benefit Coverage

For additional information, please contact Janet Clack, Employee Benefits Coordinator at (770) 887-2461 extension 202136 or 202141 or e-mail at [email protected]. Please check out our Employee Benefits link in the Department section of our web site at forsyth.k12.ga.us.

MEMORANDUM

TO: New Employees for 2007 School Year

FROM: Business Office

SUBJECT: Eligibility Coverage

You are eligible to enroll yourself and your eligible dependents for State Health Benefit coverage if you are:

A certified public school teacher who works half time or more, but not less than 18 hours a week.

A non-certified service employee of a local school system who is eligible to participate in the Teachers Retirement System. You must also work at least 60% of a standard schedule for your position, but not less than 20 hours a week.

An employee who is eligible to participate in the Public School Employees’ Retirement System. You must also work at least 60% of a standard schedule for your position, but not less than 15 hours a week.

To be eligible for all other benefits you must work at least 20 hours per week.

Forsyth County Board of EducationEmployee Benefit Effective Dates

Hire Date Benefits Effective Date

December 2, 2006 – January 2, 2007 February 1, 2007

January 3, 2007 – February 1, 2007 March 1, 2007

February 2, 2007 – March 1, 2007 April 1, 2007

March 2, 2007 – April 2, 2007 May 1, 2007

April 3, 2007 – May 1, 2007 June 1, 2007

May 2, 2007 – June 1, 2007 July 1, 2007

June 4, 2007 – July 2, 2007 August 1, 2007

July 3, 2007 – August 1, 2007 September 1, 2007

August 2, 2007 – September 4, 2007 October 1, 2007

September 5, 2007 – October 1, 2007 November 1, 2007

October 2, 2007 – November 1, 2007 December 1, 2007

November 2, 2007 – December 3, 2007 January 1, 2008

Your employee benefits begin on the first day of the month following one full calendar month of employment.

STATE HEALTH BENEFIT PLAN RATE SHEET

JANUARY 2007 – DECEMBER 2007

The Forsyth County Board of Education pays $49.38 for all employees participating in the health insurance program through the State Health Benefit Plan. Any premiums in excess of the $49.38 are listed below and will be deducted from your monthly paycheck.

UNITED HEALTHCARE (UHC) PPO MONTHLY PREMIUM

PPO Options: www.myuhc.com/groups/gdch Single FamilyPPO (877) 246-4189 $ 21.76 $167.78PPO Tobacco Charge $ 61.76 $207.78PPO Spouse Charge $197.78PPO Tobacco & Spouse Charge $237.78

PPO CCO $ 65.64 $249.24PPO CCO Tobacco Charge $105.64 $289.24PPO CCO Spouse Charge $279.24PPO CCO Tobacco & Spouse Charge $319.24

Indemnity Option: Indemnity $214.62 $522.32Indemnity Tobacco Charge $254.62 $562.32Indemnity Spouse Charge $552.32Indemnity Tobacco & Spouse Charge $592.32

High Deductible Option (HDHP): (877) 246-4195High Deductible $ 0.00 $ 96.62High Deductible Tobacco Charge $ 40.00 $136.62High Deductible Spouse Charge $126.62High Deductible Tobacco & Spouse Charge $166.62

High Deductible CCO $ 23.38 $151.38High Deductible CCO Tobacco Charge $ 63.38 $191.38High Deductible CCO Spouse Charge $181.38High Deductible CCO Tobacco & Spouse Charge $221.38

TRICARE Supplement $ 5.00 $ 10.00

www.asitrisuppga.com (800) 638-2610 Ext. 255

If an employee and spouse are both employed with the Forsyth County School System, please ask about our discounted rates for family coverage.

HMO COVERAGE OPTIONS MONTHLY PREMIUM

HMO Options: Single Family

BlueChoice www.bcbsga.com $ 22.42 $126.42BlueChoice Tobacco Charge (800) 464-1367 $ 62.42 $166.42BlueChoice Spouse Charge $156.42BlueChoice Tobacco & Spouse Charge $196.42

BlueChoice CCO $ 78.98 $239.50BlueChoice CCO Tobacco Charge $118.98 $279.50BlueChoice CCO Spouse Charge $269.50BlueChoice CCO Tobacco & Spouse Charge $309.50

CIGNA www.cigna.com $ 22.64 $126.96CIGNA Tobacco Charge (800)-564-7642 $ 62.64 $166.96CIGNA Spouse Charge $156.96CIGNA Tobacco & Spouse Charge $196.96

CIGNA CCO $ 79.36 $240.38CIGNA CCO Tobacco Charge $119.36 $280.38CIGNA CCO Spouse Charge $270.38CIGNA CCO Tobacco & Spouse Charge $310.38

Kaiser Permanente www.kp.org/ga $ 28.20 $140.58Kaiser Permanente Tobacco Charge (404) 261-2590 $ 68.20 $180.58Kaiser Permanente Spouse Charge $170.58Kaiser Permanente Tobacco & Spouse Charge $210.58

Kaiser Permanente CCO $ 89.32 $262.76Kaiser Permanente CCO Tobacco Charge $129.32 $302.76Kaiser Permanente CCO Spouse Charge $292.76Kaiser Permanente CCO Tobacco & Spouse Charge $332.76

United Healthcare www.provider.uhc.com $ 25.92 $135.02United Healthcare Tobacco Charge (866)527-9599 $ 65.92$175.02United Healthcare Spouse Charge $165.02United Healthcare Tobacco & Spouse Charge $205.02

United Healthcare CCO $ 85.24 $253.62United Healthcare CCO Tobacco Charge $125.24 $293.62United Healthcare CCO Spouse Charge $283.62United Healthcare CCO Tobacco & Spouse Charge $323.62

Delta Preferred Option Dental Program Deductibles and Annual Maximum apply from January 1st – December 31st

The Board of Education pays $23.58 for each employee participating in the dental insurance program.

MONTHLY PREMIUMSEmployee Only $ 6.00 Employee & One Dependent $23.00 Employee & Family $51.00

A BOUT D ELTA P REFERRED O PTION The DeltaPreferred Option (DPO) program allows you to:

♦ Save on out-of-pocket expense when you visit a network dental office ♦ Visit any dentist of your choice — select a different dentist for each member of your family ♦ Change dentists at any time ♦ Go to a dental specialist of your choice ♦ Receive dental care anywhere in the world

____________________________________________________________________________________________ Under the DPO program, you may visit any licensed dentist you wish. However, the greatest cost savings are achieved by visiting a DPO dentist.

DELTA

PREFERRED DENTIST (DPO) NON-DPO

DENTISTS* Your out-of-pocket expense will probably be less because DPO dentists have agreed to charge DPO patients reduced fees.

You may be responsible for the dentist’s fees, which could be higher than those approved by Delta.

Claim forms will be completed and submitted for you at no charge. You may have to complete and submit your own claim forms or pay a service fee.

You may be charged only the patient share** at the time of treatment, not Delta’s portion.

You may have to pay the entire amount in advance and wait for reimbursement.

*If you do not choose to visit a DPO dentist, you may benefit by choosing a DeltaPremier dentist over a non-Delta dentist, since DeltaPremier dentists agree not to balance bill. ** “Patient share” is the copayment, any deductible and any amount over the annual maximum. Some services may not be covered; please refer to your Evidence of Coverage. Some examples of services not covered are cosmetic dentistry, experimental procedure and services to correct congenital malformations.

D ELTA P REFERRED O PTION I S E ASY T O U SE

DeltaPreferred Option is Delta’s preferred provider program. The program provides the maximum benefit when you visit a DPO dentist. DPO dentists are Delta dentists who have agreed to charge DPO patients reduced fees. To use your DPO program, just call the dental office and verify that the dentist is a DPO dentist. For a list of dentists in your area, visit our web site at www.deltadentalins.com and click on dentist directory. Then choose the DeltaPreferred Option (DPO/PPO) dentist’s link. Delta Dental offers you what no other dental plan can — the Delta Difference.® Here’s what makes us unique:

♦ Delta dentists agree to charge you no more than the amount approved by Delta. ♦ A nationwide network of Delta dentists. ♦ We require professional treatment standards. Delta dentists must meet professional standards for hygiene, radiation safety and other areas of quality

care. Sample Claim Payment DPO Dentist Non-Delta Dentist* Dentist Submitted Amount $120.00 $120.00 Delta Approved Amount $75.00 $120.00 Delta Allowed Amount $75.00 $90.00 Delta Payment (80%) $60.00 $72.00 Patient Payment** $15.00 $48.00

*If you do not choose to visit a DPO dentist, you may benefit by choosing a DeltaPremier dentist over a non-Delta dentist, since DeltaPremier dentists agree not to balance bill. **The difference between the Approved Amount and the Delta Payment

PRINCIPAL BENEFITS AND COVERED SERVICES*

In-Network Out-ofNetwork

WHO’S ELIGIBLE

Primary enrollee and spouse as well as dependent children to age 23 (Full-time students to age 25).

DEDUCTIBLES AND BENEFITS MAXIMUM ORTHODONTIC MAXIMUM

$50 per person, $150 per family, per calendar year. The maximum benefit paid per calendar year is $1,000 per person. $1,500 separate lifetime maximum for orthodontics per dependent child until age 23 (Full-time student to age 25).

DIAGNOSTIC AND PREVENTIVE BENEFITS* -- oral examinations, cleanings, x-rays, biopsy/tissue examinations of tissue biopsy, fluoride treatment, space maintainers, specialist consultation

100% of DPO fee schedule (no deductible applies to these services)

100% of UCR (Usual, Customary, and Reasonable) (no deductible applies to these services)

BASIC BENEFITS* -- simple extractions, fillings, simple restorations, miscellaneous restorations; denture repairs, endodontics (root canals); periodontics (gum treatment)

80% of DPO fee schedule

80% of UCR (Usual, Customary, and Reasonable)

MAJOR BENEFITS** -- crowns, jackets and cast restorations and prosthodontics (bridges, partial dentures, full dentures)

50% of DPO fee schedule 12 Month Waiting Period

50% of UCR (Usual, Customary, and Reasonable) 12 Month Waiting Period

ORTHODONTICS BENEFITS* Dependent Children Only

50% of DPO fee schedule 12 Month Waiting Period

50% of UCR (Usual, Customary, and Reasonable) 12 Month Waiting Period

*If you do not choose to visit a DPO dentist, you may benefit by choosing a DeltaPremier dentist over a non-Delta dentist, since DeltaPremier dentists agree not to balance bill. ** “Patient share” is the copayment, any deductible and any amount over the annual maximum. Some services may not be covered; please refer to your Evidence of Coverage. Some examples of services not covered are cosmetic dentistry, experimental procedure and services to correct congenital malformations.

S ERVICES T HAT A RE N OT C OVERED Although your program covers many of the most commonly needed services, some services are not covered. If you are unsure whether a particular procedure is covered, or how much of it is paid for by your program, check with Delta before proceeding. The following are not covered by the program:

♦ Services for injuries or conditions covered under Workers’ Compensation or Employer’s Liability Laws ♦ Cosmetic surgery or dentistry or services to correct congenital malformation ♦ Experimental procedures ♦ Therapeutic drugs, premedication or pain relievers ♦ Hospital costs or extra charges for hospital treatment ♦ Anesthesia (except for general anesthesia for oral surgery) ♦ Extra-oral grafts, implants and implant removal

The preceding information is not intended for use as a summary plan description, nor is it designed to serve as an Evidence of Coverage for the program. This program is administered by Delta Dental Insurance Company. If you have specific questions regarding benefit structure, limitations or exclusions, consult the Evidence of Coverage or contact Delta’s Customer Services department.

Delta Dental Insurance Company P.O. Box 1809 Alpharetta, GA 30023-1809 770-645-8700 or 1-800-616-3631www.deltadentalins.com

VISION DISCOUNTS

Each employee and their families are eligible for vision care discounts with two local providers:

FREE OPTICAL 770-844-8411184 Tri-County PlazaCumming, GA 30040

PEARLE EXPRESS 770-889-2014546 Lakeland PlazaCumming, GA 30040

Simply inform the vision care provider that you are a Forsyth County School system employee and/or family member. You may be required to show your school system badge.

State Health Benefit Plan Insurance also includes a wide range of vision discounts through Lens Crafters. Discounts vary depending upon the vision care center you select. Please call (800) 377-6436 for more information.

Advantage Enhanced Vision Care Monthly Vision Care Rates

Forsyth County School System

Advantage Enhanced Benefit Frequency & Plan DesignEXAMINATION SPECTACLE LENSES FRAME CONTACT LENSES

PLAN B Once every 12 months Once every 12 months Once every 24 months Once every 12 months

Advantage Enhanced Schedule of BenefitsIN-NETWORK OUT-OF-NETWORK

Eye Examination Covered in full after the co-pay* Reimbursed up to $40.00Spectacle Lenses (pair)

-Standard Single Vision-Standard Bifocal-Standard Trifocal-Standard LenticularProgressive Lenses

Covered in full after the co-pay *Covered in full after the co-pay *Covered in full after the co-pay *Covered in full after the co-pay *20% off the UCR, less $50 plan allowance

Reimbursed up to $30.00Reimbursed up to $50.00Reimbursed up to $75.00Reimbursed up to $80.00Reimbursed up to $40.00

Specialty Lenses (pair) 20% off U&C, minus the corresponding standard lens plan payment* Corresponding standard lens reimbursement.

Lens Options Preferred Pricing (20% off retail) Reimbursed up to $0.00Frame $35 wholesale allowance (approx. retail of $75 to $100)

After the co-pay *Reimbursed up to $45.00

Contact Lenses-Elective-Medically Necessary

(In lieu of frame and spectacle lenses)$110 allowance* After an Avesis preferred discountCovered in full with no co-pay*

Reimbursed up to $110.00Reimbursed up to $250.00

Advantage Enhanced Monthly Rates

PLAN B (12,12,24,12) $10/$20 CO-PAY * Employee Only $ 6. 48Employee & One Dependent $ 1 1. 32Employee & Family $ 1 6. 82

* $10/ $20 co-pay includes $10 co-pay for the exam and $20 co-pay for materials (spectacle lenses & frame). Co-pays do not apply for Contacts & out-of-network reimbursement Employees enrolling in the group voluntary plan must agree to remain enrolled during the designated plan period Employees who elect not to enroll during the initial plan enrollment period must wait until the next plan enrollment period Funding may be stand - alone, 100% Voluntary by the Employee.

When you need to see an eye care professional, simply visit www.avesis.com or call Avesis Monday through Friday, 7AM to 5PM (MST) at 1-800-828-9341 for a provider in your area.Avesis’ Customer Service Representatives and its web site have the most current listing of Participating Providers.To use your benefit, simply 1) Select a Participating Provider. 2) Call up and identify yourself as an Avesis member. 3) Schedule an appointment. 4) Present your ID Card and pay any co-pays and expenses not covered under the plan.You may also verify eligibility or print additional or replacement ID cards on-line at www.avesis.com.

AFLAC CANCER POLICY The Board of Education offers a basic cancer plan through AFLAC. The premiums for cancer coverage are payroll deductible and qualify for pre-tax saving under the Cafeteria Plan.

Important Facts:

The cancer policy pays benefits directly to the insured regardless of other coverage with no coordination of benefits;

The specified disease rider will pay extra benefits if hospitalized for any of the specified diseases listed on our insert (meningitis (bacterial), encephalitis, etc.)

The first occurrence benefit rider will add to the first occurrence benefit of $1500 - $500 per year per person until the first diagnosis of an internal cancer. For single parent, employee-spouse and family coverage, the benefit will continue to accrue for those individuals not having been diagnosed with cancer;

Policy is guaranteed renewable for life and portable at the same rate being paid through the school system;

Dependent children may be covered until age 25; Policy has 30-day waiting period. Cancer Screening Wellness Benefit- $40 per calendar year per covered

person. Fax screening results or billing to Betty Suggs at (770) 503-7756.

MONTHLY RATES Individual

$18.70

One-Parent Family$21.70

Employee/Spouse

$30.50

Two-Parent Family$30.50

Specified Disease Rider l.00 l.50 2.00 2.00

First Occurrence BuildingBenefit ($500/year/person-5 units

3.00 4.50 6.50 6.50

If you have any questions, please call Betty Suggs, AFLAC Associate At (770) 532-5171 or (800) 559-5171

LONG TERM DISABILITY INSURANCE2007

LONG TERM DISABILITY INSURANCE – Mutual of Omaha

Core/Base Plan (no cost to employee): Provides 50% coverage of gross monthly Salary (Benefit is taxable)

Buy-Up/Optional Plan (paid by employee): Provides an additional 16.67% coverage for a total of 66.67% (Buy-up portion of benefit is NOT taxable)

Benefits begin after 120 days of continuous disability from accident or illness (sick leave may be used during this time).

Disabilities beginning before the age of 60 have a maximum benefit period to age 65. Disabilities beginning after the age of 60 have a reducing benefit period but a minimum of one year.

Maximum monthly benefit is $7,000.

No medical questions when first eligible.

Definition of Disability:

Class 1 Employees:(Certified)

Inability to perform each of the duties of your “own occupation” for first five years of disability, “any occupation” thereafter.

Includes: Active Superintendent & Assts, Central Office Administrators, Principals & Assts, Full-time Teachers, Media Specialists, Psychologists, Social Workers & Counselors

Class 2 Employees(Non-certified)

Inability to perform each of the duties of your “own occupation” for the first two years of disability, “any occupation” thereafter.

Includes: Active Maintenance & Transportation employees, Para pros & Aides, Secretaries, and Food Service Personnel

Buy-Up Rates Gross Monthly Salary divided by 100 multiplied by .28 equals monthly premium.(i.e. $2500.00 divided by 100 = 25 x .28 = $7.00 per month)

FORSTYH COUNTY RETIREMENT AND SUPPLEMENTAL

RETIREMENT PLANS

TEACHER RETIREMENT (TRS)As of this date, employee contribution to Teachers Retirement is 5% of gross salary.

Eligibility includes: Active Superintendent & Assts, Central Office Administrators, Principals & Assts., Full-time Teachers, Media Specialists, Psychologists, Social Workers & Counselors, Para pros, Secretaries, Food Service Managers.

PUBLIC SCHOOL EMPLOYEES RETIREMENT (PSERS)

Employees not eligible for Teachers Retirement must participate in this plan. The contribution rate is $36 per year deducted at the rate of $4 per month for nine months.

VALIC SUPPLEMENTAL RETIREMENT PLAN – Bus Drivers, Custodians, Food Service Workers, Maintenance and Warehouse

The Board has established a Supplemental Retirement Plan with Variable Annuity Life Insurance Company (VALIC) for employees that participate in the Public School Employees Retirement Plan. The Board will match employee contributions to this plan up to a maximum of 4% of your salary. Employee contributions can be more than the Board maximum. Our representative for VALIC is Mr. Gary Parker, and he can be reached at (678)-576-2673.

LIFE INSURANCE OPTIONS

II. UNIVERSAL LIFE INSURANCE – Trustmark Insurance Company

Cash value accumulation Level premium (does not increase with age) Earns tax-deferred interest at 4.25%, guaranteed minimum 4% Long-term care rider included Terminal illness rider included Waiver of Premium and AD & D options available Coverage is PORTABLE upon termination of employment (same rate & benefit)

Employees Offered:1. Up to 2 times salary or $100,000, subject to two medical questions when first

eligible2. Up to $250,000 subject to three additional medical questions during Open

Enrollment

Family Coverage offered:1. Spouse eligible up to $250,000 with or without employee coverage2. Children’s term rider available with employee or spouse policy (ages 15 days-18

years)3. Child or grandchild policy available with or without employee coverage (ages 0-

26)

Rates are subject to participant’s age, smoker/non-smoker status, and amount of coverage requested. For more information, contact Janet Clack at the Central Office (770-887-2461 ext. 2136).

UNUM PROVIDENT LONG TERM CARE INSURANCE

Who Needs Long Term Care Insurance? If you are hoping to set up a financial plan for a worry-free retirement If you worry about being a burden to your family If you don’t have family members to take care of you If you want to remain independent for as long as you are able

Who Can Apply? Employees – Full –time employees Family Members – Spouses, adult children, siblings, parents (in-

law), and grandparents (in-law) ages 18 to 80 may apply with medical underwriting.

Levels of CareLong Term Care Facility: A Long Term Care Facility is an institution or distinctly separate part of a hospital that provides skilled, intermediate or custodial care under state licensing and certification laws. Assisted Living Facility: An Assisted Living Facility is licensed by the appropriate agency (if required) to provide ongoing care and services to a minimum of three inpatients in one location. Professional Home Care: Includes visits to your home by a licensed Home Health Care Provider during which skilled nursing care; physical, respiratory, occupational, dietary or speech therapy; adult day care or hospice care; or homemaker services are provided.

OptionsInflation Protection: Compound Growth Uncapped. Your monthly benefit amount will increase each year by 5% on a compounded basis. Your pool of benefit dollars will also increase by 5% each year on a compounded basis.

Elimination Period: Your plan’s Elimination Period of 60 consecutive days is the amount of time you must wait before benefits become payable. This time period needs to be satisfied only once during the life of your plan.

What’s the Cost?Your individual cost for insurance will depend on your age, the plan and the options you choose. The younger you are when you purchase the insurance, the lower the cost. Rates will not go up because you grow older. For more information, contact Janet Clack at the Central Office (770-887-2461 ext. 2136)

TAX SHELTERED ANNUITY COMPANIES

BALES & ECKEL LINCOLN NATIONAL TSA475 Tribble Gap Road, Suite 101 3625 Cumberland Blvd. SE Suite 900Cumming, Georgia 30040 Atlanta, Georgia 30339David Bales/Tim Eckel 770-205-6890 John Koshy (770) 799-7075

1st INVESTORS MERRILL LYNCH1100 Circle 75 Parkway Suite #260 380 Dahlonega St. Suite 201Atlanta, Georgia 30339 Cumming, Georgia 30040Adam Hextell (770) 818-0700 Rick Groff 678-513-7908

EDWARD JONES MET LIFE911-C Market Place Blvd. Suite 12 9000 Central Park West, Suite 325Cumming, Georgia 30041 Atlanta, Georgia 30328Rex E. Abbott (770) 844-1000 Steve Shearod (770) 390 - 5680

FIDELITY INVESTMENT NATIONWIDE TSAP.O. Box 770002 3068 Meadow Mere W.Cincinnati, Ohio 45277-0089 Chamblee, Georgia 30341Client#61005 Stephen Ebert (800) 868-1023 Loy Day (770) 781-4130

HORACE MANN INSURANCE CO. NORTHERN LIFE INSURANCE CO.P.O. Box 3145 1645 Blue Pond DriveGainesville, Georgia 30503 Canton, Georgia 30115Andy Gaddis (678) 316 - 1460 Jerry Bohus (770) 499-0659

HARRIS CONSULTING THE SECURITY BENEFIT GROUP555 Sun Valley Drive A4 4924 October Way, NWRoswell, Georgia 30076 Acworth, Georgia 30102Joe Harris (770) 642-2228 ext 3 Jim Downey (770) 975-0244

Michael J. Riscica (404)275-3290ING995 Kilmington Court VALICAlpharetta, Georgia 30004 1100 Ashwood Parkway, Suite 190Derrick Friedman (770) 754-4081 Atlanta, Georgia 30338Stephan Bayani Cell (770) 778-9290 Gary Parker (678) 576 - 2673e-mail [email protected]

LIFE INSURANCE OPTIONS

I. TERM LIFE INSURANCE – The Standard Insurance Co.

A $20,000 Term Life/AD&D Insurance policy is provided at no cost to each eligible employee. This coverage includes a Living Benefits Option and the policy may be continued at group rates when you no longer are eligible.

Supplemental Term Life:

Includes Accidental Death & Dismemberment Includes Living Benefits Option Employees offered a minimum of $10,000 and a maximum of 5 times

annual salary not to exceed $500,000 No medical questions asked when first eligible up to the greater of the

Guarantee Issue Amount of $100,000 or 5 times annual salary. Includes Waiver of Premium Coverage is PORTABLE or CONVERTIBLE upon termination of

employment Family coverage available

1. Spouse minimum $5,000 to a maximum of $100,000 in increments of $5,000

2. No medical questions on spouse when first eligible up to the Guarantee Issue Amount of $20,000

Children minimum $2,000 and maximum of $10,000 (employee must also be covered)

1. Unmarried Child from birth to age 21 or to age 25 if a registered student in full time accredited educational institution

2. No medical questions on children when first eligible up to $10,000

TOBACCO AND NON-TOBACCO RATES AVAILABLE

ADDITIONAL TERM LIFE, AD&D, DEPENDENT TERM LIFEPREMIUM RATES 7-1-2003

EMPLOYEE TOBACCO

Under age 29 = .11430 to 34 = .13335 to 39 = .15340 to 44 = .22345 to 49 = .37550 to 54 = .63855 to 59 = .84660 to 64 = 1.06565 to 69 = 1.7970+ = 2.911

EMPLOYEENON-TOBACCO

Under age 29 = .07430 to 34 = .08735 to 39 = .10040 to 44 = .14845 to 49 = .25150 to 54 = .42655 to 59 = .58760 to 64 = .76365 to 69 = 1.32570+ = 2.324

SPOUSE TOBACCO

Under age 29 = .19230 to 34 = .22135 to 39 = .25740 to 44 = .38045 to 49 = .64850 to 54 = 1.10255 to 59 = 1.42160 to 64 = 2.14465 to 69 = 3.642

SPOUSE NON-TOBACCO

Under age 29 = .12530 to 34 = .14535 to 39 = .16840 to 44 = .25345 to 49 = .43350 to 54 = .69955 to 59 = .98660 to 64 = 1.53765 to 69 = 2.696

Dependent Children $.26 per $2,000 of Coverage

Example of Rate Calculation:Age 35 non-tobacco, $50,000 coverage$50,000 divided by 1000 = 5050 x .100 = $5.00 per month

Benefit Updates

PLEASE remember to update your various benefit coverage.

The benefit choices you make during open enrollment or as a new hire will stay in effect for the duration of the 2007 plan year, unless you experience certain changes in status defined by federal law as qualifying events.

Qualifying events include, but are not limited to:

Marriage or divorce; Birth or adoption of a child or placement for adoption; Death of a spouse or child, if only dependent enrolled; Your spouse’s or dependent’s eligibility for or loss of eligibility for other

group health coverage; A change in residence by you, your spouse, or dependents that makes you or

a covered dependent ineligible for coverage in your selected option; and A change in employment status that leads to a loss or gain of eligibility

under the plan. Your dependent child’s full-time student status;

If you experience a qualifying event, you may be able to make changes for yourself and your dependents, provided you request those changes within 31 days of the qualifying event.

The following changes may be made anytime throughout the fiscal year:

1. Beneficiary updates on Life Insurance and Retirement Plan2. Direct Deposit3. Federal and State Withholding Certificate