2014 U.S. Salaried Retiree Life Insurance & Health Care Modifications* October 8, 2013

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1 2014 U.S. Salaried Retiree Life Insurance & Health Care Modifications* October 8, 2013 * The information presented in this document is intended only to briefly describe certain features and attributes of the referenced programs and benefits. The information contained in this document does not establish your eligibility for any particular benefit or reflect all limitations with respect to the level or scope of any benefit that may apply to your situation. Your eligibility for any benefit described herein is determined exclusively by your personal circumstances and the terms of the applicable benefit plan or program as interpreted by the plan or program administrator. In the event of a conflict between the information provided in this document and the plan or program terms themselves, the plan or program terms control. GM reserves the right to amend, modify or terminate any benefit plan at any time and in its sole discretion without prior notice to participants. The information contained in this communication is intended for internal use only, and should only be shared on a need to know basis.

2 Life Insurance Modifications

3 Salaried Life Insurance Modifications Change of Basic Life insurance amount in retirement for pre 1/1/93 hires who have retired or will retire from 8/1/2009 and into the future from 50% of final salary prior to retirement to zero effective 1/1/2014 No change to Basic Life Insurance amounts for any retiree who retired prior to 8/1/2009 A Voluntary Life Plan at retiree cost will be offered to those retirees losing coverage that retired from 8/1/09 to 4/1/10, as these retirees have term Basic Life insurance. MetLife will offer their Voluntary Life policy with a special enrollment from 10/21/2013 to 11/1/2013. Enrollment kits to be mailed the week of 10/14/2013. Policies will be offered ranging from $5,000 to $100,000 cannot elect more than amount of coverage lost Those retired with Group Variable Universal Life (GVUL) (5/1/10 and later) will not be offered the Voluntary plan as the difference in the amount they are losing will automatically convert to Optional Life Insurance. Retirees can pay for all the coverage, reduce the coverage or cancel the coverage GM Confidential 2

4 Salaried Life Insurance Modifications All retirees who retired up to and including 4/1/2010, who have Optional Life and Dependent Life, will experience a waiver of premium contributions. Eight months for Optional Life and 6 months for Dependent Life. The Waiver will start in March There is no waiver for retirees with GVUL coverage (5/1/2010 and later retirees). No change in Personal Accident Insurance rates Remember there are no pension check deductions for any life insurance premium amounts. Retirees may set up automatic bank withdrawal or receive a bill subject to a $3 service fee Questions call MetLife at , select prompt for Life Insurance 3

5 Health Care Modifications

6 Salaried Retiree Health Care Plan Design Modifications Monthly contributions are decreasing; no changes to deductibles, co-insurance and out-of-pocket maximums 2013 Plan Design 2014 Plan Design Monthly Contributions Annual Deductible Co-insurance Annual Out-of-Pocket Maximum (OOPM) Single - $150 2 Party - $206 Family - $253 Single - $2,500 2 Party - $5,000 Family - $5,000 20% In-network 40% Out-of-network Single - $3,500 2 Party - $7,000 Family - $7,000 Single - $139 2 Party - $191 Family - $235 Single - $2,500 2 Party - $5,000 Family - $5,500 20% In-network 40% Out-of-network Single - $3,500 2 Party - $7,000 Family - $7,000 GM Confidential 5

7 Durable Medical Equipment Carrier Changes Effective January 1, 2014, the Durable Medical Equipment (DME) carrier is changing to Blue Cross Blue Shield of Michigan (BCBSM) DME will no longer be administered through Northwood National Provider Network (NNPN) Please contact BCBSM at regarding DME coverage effective January 1,

8 Cancellation of Health Care Coverage for Sponsored Dependents Effective January 1, 2014, salaried retirees will no longer be able to cover sponsored dependents on their GM health care coverage Individuals that are currently enrolled as sponsored dependents will have their coverage cancelled effective January 1, 2014 A separate communication will be sent to salaried retirees who currently have a sponsored dependent(s) on their coverage Sponsored dependents may be eligible to purchase health care coverage through the Health Insurance Marketplace/Exchanges beginning January 1, 2014 Additional information regarding the Health Insurance Marketplace/Exchanges can be found on GM Confidential 7

9 Health Savings Account (HSA) Updates IRS annual Health Savings Account (HSA) limits are increasing for 2014: Single $3,300 (increase of $50) Two-Party $6,550 (increase of $100) Family $6,550 (increase of $100) If you are at least age 55 during 2014 (but not enrolled in Medicare) you have the opportunity to contribute an additional pre-tax catch-up contribution of $1,000 to your HSA. You must remain in a Consumer Driven Health Care Plan for 12 months. GM will pay the monthly administrative fee for all current and new HSAs through Bank of America for eligible salaried retirees enrolled in the GM Retiree Health Care Plan Additional information about Bank of America HSAs is available at GM Confidential 8

10 Health Care Deductions Automatic Bank Withdrawal Effective January 1, 2013, all salaried retirees enrolled in the GM Salaried Retiree Health Care Plan were required to sign up for Automatic Bank Withdrawal (ABW) for payment of their monthly health care contributions Monthly health care contributions are no longer deducted from pension checks effective January 1, 2013 For additional information regarding ABW enrollment, please contact the GM Benefits and Services Center at

11 Health Care Reform and Available Health Care Options Beginning in 2014, the Affordable Care Act (ACA) requires all individuals to either maintain minimum essential coverage or pay a tax penalty Rule is commonly referred to as the individual mandate For non-medicare retirees, GM s Retiree Health Care Plan will be considered eligible for minimum essential coverage only if the retiree is actually enrolled in the plan Beginning in October 2013, non-medicare retirees can find alternatives to GM s Retiree Health Plan through the Health Insurance Marketplace (also known as the Exchanges ) GM non-medicare retirees are not required to enroll in GM s Retiree Health Care Plan; the Marketplace may offer lower cost options that meet the retiree s health care needs Additional information about the Marketplace can be found at HealthCare.gov Medicare eligible retirees cannot participate in the Health Insurance Marketplace/Exchanges because Medicare satisfies the minimum essential coverage requirement 10

12 What You Can Expect Next GM will be sending a letter to retirees impacted by the life insurance modifications MetLife will then send a letter and enrollment kit for those with term Basic Life Insurance (8/1/09 through 4/1/10 retirees) MetLife will send a letter to those with GVUL (retirees 5/1/10 and latter) regarding new coverage amounts MetLife will send a letter in first quarter 2014 regarding Optional Life and Dependent Life waiver to impacted retirees The Salaried Retiree Newsletter will be mailed to non-medicare eligible retirees who are eligible for GM health care coverage outlining the Annual Enrollment process and the changes that will be implemented for