May Highlights of The JPMorgan Chase U.S. Benefits Program

Transcription

1 May 2009 Highlights of The JPMorgan Chase U.S. Benefits Program

2 What s Inside About the JPMorgan Chase U.S. Benefits Program 2 The Health and Income Protection Plans 4 Medical Plan 4 Dental Plan 11 Vision Plan 13 Spending Accounts Health Care, Child/Elder Care, Transportation 14 Long-Term Disability (LTD) Plan 17 Life and Accident Insurance Plans 17 Long-Term Care Insurance Plan 18 Group Personal Excess Liability Insurance Plan 19 Group Legal Services Plan 19 The Wealth Accumulation Plans 21 Retirement Plan (k) Savings Plan 21 Employee Stock Purchase Plan 22 Additional Employee Programs & Services 22 Important Definitions 23 Appendix 24 Special Notice for Employees Who Have Been Reinstated by JPMorgan Chase Within 31 Days 24 Important Benefits Reminders 25 Page About Eligibility The JPMorgan Chase U.S. Benefits Program described in this brochure is generally available in whole or in part to most full-time and part-time U.S. dollar-paid employees who are: Employed by JPMorgan Chase & Co. or any of its subsidiaries to the extent that such subsidiary has adopted the JPMorgan Chase U.S. Benefits Program; and Regularly scheduled to work 20 or more hours per week. You are considered a full-time U.S. benefits-eligible employee if you are regularly scheduled to work 40 hours per week. You are considered a part-time benefits-eligible employee if you are regularly scheduled to work at least 20 but less than 40 hours per week. Have You Worked for JPMorgan Chase or any of its predecessor organizations in the past? If yes, then your prior service may count toward your eligibility and vesting for certain JPMorgan Chase benefits plans. For more specific information please see page 23. Generally, your Health and Income Protection Plan benefits elections remain in effect throughout the calendar year. In the case of most benefits plans, you re not allowed to make changes to your elections until the next annual enrollment period unless you experience a qualified change in status. If you experience a qualified status change (such as marriage, divorce, the birth or adoption of a child), you must make any eligible Health and Income Protection Plan benefits changes within 31 days of the qualifying event. If you miss the 31-day deadline, coverage for certain benefits (i.e., medical, dental, vision, and the Health Care Spending Account) will be effective as of the date you contact the Benefits Call Center. Otherwise, you will not be able to make the change in coverage until an annual benefits enrollment period. The JPMorgan Chase U.S. Benefits Program is available to most full-time and part-time U.S. dollar-paid salaried employees who are regularly scheduled to work 20 hours or more a week and who are employed by JPMorgan Chase & Co. or one of its subsidiaries to the extent that such subsidiary has adopted the JPMorgan Chase U.S. Benefits Program. This information does not include all of the details contained in the applicable insurance contracts, plan documents, and trust agreements. If there is any discrepancy between this information and the governing documents, the governing documents will control. JPMorgan Chase & Co. expressly reserves the right to amend, modify, reduce, change, or terminate its benefits and plans at any time. The JPMorgan Chase U.S. Benefits Program does not create a contract or guarantee of employment between JPMorgan Chase and any individual. JPMorgan Chase or you may terminate the employment relationship at any time. The JPMorgan Chase U.S. Benefits Program 1

3 About the JPMorgan Chase U.S. Benefits Program JPMorgan Chase is committed to providing a comprehensive set of benefits choices to meet different employee needs and life-styles. In return, we ask our employees to take an active role in designing a personal strategy to help meet their short-term and long-term health and income protection and wealth accumulation objectives. This brochure provides an overview of the JPMorgan Chase U.S. Benefits Program. For the definitions of benefits pay, pay credit service, service, total annual cash compensation, and total service used in the following table and throughout this brochure, please see page 23. JPMorgan Chase Benefits at a Glance BENEFIT COVERAGE SUMMARY WHEN PARTICIPATION BEGINS FOR NEW HIRES** HEALTH AND INCOME PROTECTION PLANS Medical Dental Vision Spending Accounts Health Care Child/Elder Care Transportation (Transit/Parking) Five coverage options depending on your home zip code: Full-time employees: First day of the Point-of-Service (POS)* High Option month following your date of hire Point-of-Service (POS)* Low Option Part-time employees: First day of the Exclusive Provider Organization (EPO) Option/Health Maintenance Organization (HMO) Option month following 90 days from your Consumer Driven Health Option Plus Tax-Deferred Health Savings Account date of hire Traditional Indemnity Option All options include prescription drug coverage No exclusions for pre-existing conditions Employee and dependent coverage (including domestic partner coverage) JPMorgan Chase and employee cost sharing Smoker/non-smoker rates apply Employee contributions on a before-tax basis are generally determined based on level of total annual cash compensation (excluding overtime), the medical option chosen, where you live, the number and type of dependents covered, and employee and covered dependents smoker/non-smoker status. Four coverage options depending on your home zip code: Full-time employees: First day of the Preferred Dentist Program (PDP) Option month following your date of hire Dental Maintenance Organization (DMO) Option Part-time employees: First day of the Dental Health Maintenance Organization (DHMO) Option month following 90 days from your Traditional Indemnity Option date of hire Employee and dependent coverage (including domestic partner coverage) JPMorgan Chase and employee cost sharing Employee contributions on a before-tax basis Coverage for eligible vision expenses like eye exams, lenses (including contacts), and Full-time employees: First day of the eyeglass frames month following your date of hire Employee and dependent coverage (including domestic partner coverage) Part-time employees: First day of Employee contributions on a before-tax basis the month following 90 days from your date of hire Health Care Spending Account Contributions up to $8,000 annually Full-time employees: First day of the Child/Elder Care Spending Account Contributions generally up to $5,000 annually month following your date of hire Transportation Spending Accounts Contributions for work commuting expenses for mass transit Part-time employees: First day of the (up to $230 monthly in 2009) and parking (up to $230 monthly in 2009) month following 90 days from your Employee contributions on a before-tax basis date of hire Employee contributions on an after-tax basis for Transportation Spending Accounts when expenses exceed before-tax limits referenced above Long-Term Disability (LTD) Insurance Employee and Dependent Supplemental Term Life Insurance Three coverage options: Full-time employees: First day of the Replacement of 50% of benefits pay month following your date of hire Replacement of 60% of benefits pay Part-time employees: First day of the Replacement of 60% of benefits pay plus two-year average annual discretionary cash month following 90 days from your pay (including annual bonus) paid or deferred (if eligible) date of hire $700,000 maximum benefits pay recognized for each option Smoker/non-smoker rates apply Employee contributions on a before-tax basis Employee coverage up to 10 times benefits pay in $10,000 increments up to a Full-time employees: First day of the maximum of $3 million month following your date of hire Spouse/domestic partner coverage from $10,000 to $300,000 in $10,000 increments Part-time employees: First day of Child coverage equal to $5,000 or $10,000 per child the month following 90 days from Employee and adult dependent smoker/non-smoker rates apply your date of hire Employee contributions on an after-tax basis *The Empire Blue Cross Blue Shield POS High or Low Option may be referred to as a Preferred Provider Organization (PPO). **Indicates when participation begins if you enroll when first eligible. If you do not enroll when you are first eligible, your participation will not begin unless you enroll due to a qualified status change or during subsequent annual benefits enrollment periods. (This does not apply to Transportation Spending Accounts, Long-Term Care, Basic Life, Business Travel Accident Insurance, or SurvivorSupport Financial Counseling.) 2 The JPMorgan Chase U.S. Benefits Program (continued on next page)

4 JPMorgan Chase Benefits at a Glance (continued) BENEFIT COVERAGE SUMMARY WHEN PARTICIPATION BEGINS FOR NEW HIRES** HEALTH AND INCOME PROTECTION PLANS Basic Life Insurance Business Travel Accident Insurance SurvivorSupport Financial Counseling Employee and Dependent Accidental Death and Dismemberment (AD&D) Insurance Long-Term Care Insurance Group Personal Excess Liability Insurance Plan Company-provided employee coverage equal to one times benefits pay (rounded up to Full-time employees: First day of the next $1,000) to a maximum of $1 million month following your date of hire JPMorgan Chase paid Part-time employees: First day of the month following 90 days from your date of hire Company-provided employee coverage equal to six times annual base salary (minimum of First day of work with JPMorgan Chase $50,000 and maximum of $3 million) Company-provided financial counseling services to a surviving spouse or key adult First day of work with JPMorgan Chase survivor for six months after an employee s death JPMorgan Chase paid Employee coverage up to 10 times benefits pay in $10,000 increments up to a Full-time employees: First day of the maximum of $3 million month following your date of hire Spouse/domestic partner coverage from $10,000 to $600,000 in $10,000 increments Part-time employees: First day of Child coverage from $10,000 to $100,000 in $10,000 increments per child the month following 90 days from Employee contributions on an after-tax basis your date of hire Employee and dependent coverage (including spouse/domestic partner, and First day of the month following date employee s/spouse s/domestic partner s parents and grandparents) of approval by insurance carrier Choice of five daily benefit options with optional forfeiture protection feature Employee contributions on an after-tax basis Provides additional liability coverage in excess of the limits carried on your personal Full-time employees: First day of the insurance policies such as homeowners or renters, automobile, watercraft, etc. month following your date of hire You choose from among three levels of coverage: Part-time employees: First day of $2 million the month following 90 days from $5 million your date of hire $10 million Employee contributions on an after-tax basis WEALTH ACCUMULATION PLANS Group Legal Services Retirement 401(k) Savings Employee Stock Purchase Coverage for attorneys fees for routine legal services related to personal and family Full-time employees: First day of the legal issues month following your date of hire Employee and dependent coverage (including domestic partner coverage) Part-time employees: First day of Employee contributions on an after-tax basis the month following 90 days from your date of hire Participation begins after one year of total service Generally the first day of the month after Monthly pay credits from 3% to 9% of benefits pay (up to the legal limit $245,000 completing one year of total service for 2009) depending on completed years of pay credit service Monthly interest credits 100% vested after three years of total service JPMorgan Chase paid Before-tax and/or Roth after-tax 401(k) contributions (up to the legal limit $16,500 for Full-time employees: First day of the 2009) up to 50% of benefits pay (up to the legal limit $245,000 for 2009) month following your date of hire Participants age 50 and over as of December 31 of any calendar year may be eligible to Part-time employees: First day of make catch-up contributions (up to the legal limit $5,500 for 2009) the month following 90 days from Effective May 1, 2009, dollar-for-dollar matching contributions on the first 5% of benefits pay your date of hire contributed to the plan for participants with total annual cash compensation of less than $50,000 Participants become eligible for Matching contributions begin after one year of total service and are calculated and matching contributions on the first credited to a participant s account at the end of each calendar year. Participants day of the month following generally must be employed on December 31 of that year to be eligible to receive any completion of one year of total matching contribution. (For employees who earn total annual cash compensation service if eligibility criteria is met. of $50,000 or more (but less than $250,000), the firm will decide at the end of the year what, if any, employer contributions to make based on the firm s performance.) Matching contributions are 100% vested after three years of total service if hired on or after May 1, 2009 Participants direct the investment of matching contributions 25 investment funds including the JPMorgan Chase Common Stock Fund JPMorgan Chase and employee contributions Purchase JPMorgan Chase common stock quarterly at a 5% discount with dividend Must be hired on or before reinvestments September 30 to participate in the No brokerage or commission fees following year Employee contributions on an after-tax basis from $240 to $25,000 per year up to 20% Election to participate only during an of benefits pay annual benefits enrollment period Employees with total annual cash compensation of $250,000 or more are not eligible to participate **Indicates when participation begins if you enroll when first eligible. If you do not enroll when you are first eligible, your participation will not begin unless you enroll due to a qualified status change or during subsequent annual benefits enrollment periods. (This does not apply to Transportation Spending Accounts, Long-Term Care, Basic Life, Business Travel Accident Insurance, or SurvivorSupport Financial Counseling.) The JPMorgan Chase U.S. Benefits Program 3

5 The Health and Income Protection Plans Maintaining good health and protecting your income in case you re unable to work are important priorities in your life. That s why JPMorgan Chase offers a variety of options under our Health and Income Protection Plans such as the Medical, Dental, Vision, Spending Accounts, Long-Term Disability, Life and Accident Insurance, Long-Term Care Insurance, Group Personal Excess Liability, and Group Legal Services Plans to provide you with the opportunity to select health care and insurance protection that best suits your needs and those of your eligible dependents. Medical Plan JPMorgan Chase offers five different types of medical options that provide a range of quality and flexible coverage. The number of options available to you is based on where you live. All options generally cover the same medically necessary services and supplies, including prescription drugs. Here s a brief overview of each Medical Plan option: Semi-Monthly Contributions (for most employees) Network In-Network Copayments Physician Office Visit Specialist Office Visit Point of Service (POS) High Option Point of Service (POS) Low Option Exclusive Provider Organization (EPO) 1 Option/ Health Maintenance Organization (HMO) Option Consumer Driven Health Option (CDHO) Traditional Indemnity Option Depends on the level of your total annual cash compensation, the medical option you choose, the number and type of eligible dependents you cover, where you live, and your and/or your dependents smoker status. Both in- and out-of-network coverage 2 available with higher benefits paid in-network $20 $30 $40 $50 In-network coverage; out-of-network benefits only available in cases of emergency $20 $30 Out-of-network benefits only available in cases of emergency Both in- and out-of-network coverage 2 available with higher benefits paid in-network 80% after deductible You can use any provider, but your outof-pocket costs may be lower if you use a UnitedHealthcare network provider 2 80% after deductible Preventive Care 3 100% in-network 70% out-of-network 100% in-network 60% out-of-network 100% in-network Copayment may apply for certain HMOs 100% in- and out-of-network 100% up to $200; then 80% after deductible 4 Coinsurance (after deductible or copayment) surgery, lab work, etc. Annual Deductible In-Network: 90% in-network 70% out-of-network 80% in-network 60% out-of-network 100% in-network coverage; Out-of-network benefits only available in cases of emergency 80% in-network 60% out-of-network 80% Out-of-Network: Employee Only Employee Plus One Adult Employee Plus Child(ren) Employee Plus Family $600 $1,200 $1,200 $1,800 $1,000 $2,000 $2,000 $3,000 Deductible applies both in- and out-of-network $1,200 $2,400 $2,400 $2,400 Deductible applies to all charges $600 $1,200 $1,200 $1,800 Annual Out-of-Pocket Maximum (excludes deductible and prescription drug coverage except where noted) Out-of-pocket maximum applies to all charges, including prescription drugs Out-of-pocket maximum applies to all charges In-Network: Employee Only Employee Plus One Adult Employee Plus Child(ren) Employee Plus Family $1,200 $2,400 $2,400 $3,600 $2,000 $4,000 $4,000 $6,000 $2,500 $5,000 $5,000 $5,000 $2,400 $4,800 $4,800 $7,200 Out-of-Network: Employee Only Employee Plus One Adult Employee Plus Child(ren) Employee Plus Family $2,400 $4,800 $4,800 $7,200 $4,000 $8,000 $8,000 $12,000 $5,000 $10,000 $10,000 $10,000 $2,400 $4,800 $4,800 $7,200 1 Medical Plan coverage may vary for certain HMO and EPO options. For more information, please refer to the Health Plan Comparison Charts on the Benefits Web Center. 2 Coverage for an out-of-network provider under the POS High and Low Options, the CDHO, and coverage under the Traditional Indemnity Option are subject to Reasonable and Customary (R&C) Charges the prevailing charge for most providers in the same or similar geographic area for the same or similar service or supply. 3 Eligible preventive services are subject to age and frequency guidelines. The service must be submitted to the claims administrator as preventive medical care rather than as diagnostic service in order to qualify for preventive care coverage. 4 Eligible mammograms are covered at 100% and do not count toward the $200 limit.

6 POINT-OF-SERVICE (POS)* HIGH AND LOW OPTIONS The POS High and Low Options give you the flexibility to use any licensed provider and receive benefits you do not need to select a primary care physician (PCP). You have the opportunity to get higher, in-network benefits when you use preferred providers who belong to the POS network. Generally, your out-of-pocket costs will be lower if you use network providers because these providers have agreed to offer their services for lower, prenegotiated rates. If you enroll in the POS High Option, you pay higher premiums but have lower deductibles, out-of-pocket maximums, and copayments for doctor s office visits and other services. If you enroll in the POS Low Option, you pay lower premiums but your deductibles, out-of-pocket maximums, and copayments for doctor s office visits and other services are higher. In-network preventive medical care is covered at 100% under both the POS High and Low Options. Please Note: The service must be submitted to the claims administrator as preventive medical care rather than as a diagnostic service in order to qualify for preventive care coverage. Eligible preventive services are subject to certain age and frequency guidelines. The POS High and Low Options are administered by UnitedHealthcare except in the following geographic areas: In This Geographic Area California, Louisiana, Michigan, Western New York, West Virginia Arizona, Delaware, Maryland, Pennsylvania, Texas, Washington D.C. Indiana, Kentucky 2009 Administrator Empire Blue Cross Blue Shield Aetna Anthem Blue Cross Blue Shield *The Empire Blue Cross Blue Shield POS High or Low option may be referred to as a PPO. THE EXCLUSIVE PROVIDER ORGANIZATION (EPO)/HEALTH MAINTENANCE ORGANIZATION (HMO) OPTION EPOs work much like HMOs in that most in-network services are fully paid after a copayment, out-of-network services are generally not covered, and there are generally no deductibles or claim forms to file. There are some differences between EPOs and HMOs: Under an HMO, prescription drug coverage is provided through the HMO; under an EPO, prescription drug coverage is provided through the JPMorgan Chase Prescription Drug Plan, administered by Caremark. Please see page 7 for more information on the Prescription Drug Plan. EPOs are not subject to the same state-mandated benefits or dependent age exceptions to which HMOs are subject. The EPO/HMO Option available to you depends on where you live. When you participate in an EPO/HMO, you receive all your care from the EPO/HMO s network of providers, hospitals, and laboratories. EPO/HMOs do not pay for treatment by non- EPO/HMO providers, except in an emergency. In addition: There are no deductibles or claim forms to file. Generally, all eligible expenses are covered at 100% after you make a copayment. If you receive care outside the network, you re responsible for all charges (except in an emergency). Generally, your care within a EPO/HMO network is coordinated through a primary care physician (PCP). If your plan requires one, you must go through your PCP when you need medical care or a referral to a specialist. Check with your option administrator to determine if a PCP is required. Specific information on the EPO/HMOs available to you will be communicated during your designated enrollment period. The JPMorgan Chase U.S. Benefits Program 5

7 CONSUMER DRIVEN HEALTH OPTION PLUS A TAX-DEFERRED HEALTH SAVINGS ACCOUNT The Consumer Driven Health Option, administered by Aetna, is like the POS Option in that it offers medical and prescription drug coverage with both in-network and out-of-network benefits. However, unlike the POS option, you ll need to satisfy an annual deductible for both in-network and out-of-network expenses before the option begins to pay medical or prescription drug benefits ($1,200 employee only/ $2,400 if you cover any family members). Prescription drug coverage is provided through Aetna. It is important to note that preventive medical care will be covered at 100% even if the annual deductible isn t satisfied. Eligible preventive services are subject to age and frequency guidelines. This option only offers employee and family levels for annual deductibles and annual out-of-pocket maximums. This means that, if you cover any dependents, you will have to meet the entire family deductible before the plan begins sharing a portion of your eligible expenses through coinsurance. The Health Savings Account is a feature of the Consumer Driven Health Option that can help you save and pay for your out-of-pocket medical expenses now or in the future. Contributions are made on a before-tax basis through payroll deductions or direct contributions. The maximum contribution for 2009 is $3,000 for employee-only coverage and $5,950 if you cover any dependents. These amounts are indexed on an annual basis. Covered participants between the ages of 55 and 65 (or who will reach age 55 on or before December 31, 2009) are also eligible to make additional catch-up contributions of up to $1,000 each for (However, catch-up contributions for a spouse cannot be made through payroll deductions.) The balance in your account will roll over from year to year. Any interest earned is based on investment experience. The Health Savings Account is also portable, meaning you can keep your account even if you leave JPMorgan Chase for any reason. Distributions for qualified medical expenses are tax free. Please Note: If you contribute to the Health Savings Account and also elect to participate in the Health Care Spending Account, you can only be reimbursed for dental and vision expenses from your Health Care Spending Account for Certain Individuals are Not Eligible for the Health Savings Account Federal regulations limit eligibility for the Health Savings Account. To be eligible for the Health Savings Account, active employees must not be: Covered by another group health plan (e.g., a spouse s employer coverage); Enrolled in Medicare; Claimed as a dependent on another person s federal income tax return; or Age 65 or older. TRADITIONAL INDEMNITY OPTION The Traditional Indemnity Option, administered by UnitedHealthcare, gives you the flexibility to visit any health care provider or hospital facility and receive benefits for eligible expenses. Generally, the total cost of care under this option is higher than under the other options, so the amount you pay for coverage will be higher. You pay an annual deductible, and then you and the company share the reasonable and customary costs for covered expenses, subject to plan maximums. Please Note: This option also has a preferred provider organization (PPO) feature meaning if you use a UnitedHealthcare PPO network doctor or hospital facility, you may lower your out-of-pocket costs based on negotiated rates. Providers Leaving Networks The list of providers for any given health care network can change during the course of the plan year, so you should check with your doctor to verify that he or she plans to continue participation in the Medical Plan option you choose. If your health care provider does leave your network, it does not qualify, under federal law, as an event that allows you to change coverage during the year. High Performance Networks Many of our Medical Plan options designate a select number of their participating providers as high performance. These are physicians who have proven expertise in providing high quality, cost-effective care. Utilizing these providers can result in lower costs, better outcomes, or both. Visit the Medical Plan option administrator s web site for more information. 6 The JPMorgan Chase U.S. Benefits Program

8 PRESCRIPTION DRUG COVERAGE If you elect coverage under the POS High or Low Option, the EPO Option, or the Traditional Indemnity Option, your prescription drug coverage is provided through the JPMorgan Chase Prescription Drug Plan, administered by Caremark. You will receive two separate ID cards (one for medical services and one for your JPMorgan Chase Prescription Drug coverage offered through Caremark). This coverage gives you the option of having prescriptions filled at a retail pharmacy or through a convenient mail order program. (Please Note: If you elect Medical Plan coverage under either the HMO or Consumer Driven Health Option, your prescription drug coverage is provided through your option administrator, and you will receive only one ID Card for medical services and prescription drug benefits.) Prescription Drug Coverage at a Glance Point of Service (POS) High Option Point of Service (POS) Low Option Exclusive Provider Organization (EPO) Option Retail You Pay (up to a 30-day supply) Annual Deductible $50 per individual/$150 family Generic $10 maximum copayment 1 Preferred Brand 30% coinsurance to $100 max 1 Non-Preferred Brand 45% coinsurance to $150 max 1 Mail Order (up to a 90-day supply) You Pay Annual Deductible Generic $20 maximum copayment 1 Preferred Brand 30% coinsurance to $250 max 1 Non-Preferred Brand 45% coinsurance to $375 max 1 Annual Out-of-Pocket Maximum $2,000 per individual/ $6,000 family 2 Traditional Indemnity Option Health Maintenance Organization (HMO) Option Each HMO Option offers its own prescription drug coverage. Information about the prescription drug coverage provided under an HMO option will be available during your enrollment period. For more information, please refer to the Health Plan Comparison Charts on the Benefits Web Center. Consumer Driven Health Option (CDHO) Retail (up to a 30-day supply) 80% in-network 60% out-of-network Mail Order (up to a 90-day supply) 80% in-network No mail order coverage out-of-network Amounts for both retail and mail order show the percent of eligible prescription drug expenses covered by the CDHO after you satisfy the combined prescription/medical annual deductible. (see page 4.) 1 Maximum amounts shown are per prescription. 2 Annual out-of-pocket maximum includes copayments and coinsurance for covered drugs but does not include the annual retail deductible or costs for non-covered drugs. Also, it is not combined with JPMorgan Chase Medical Plan out-of-pocket costs/limits. The JPMorgan Chase U.S. Benefits Program 7

9 WHICH MEDICAL PLAN OPTION IS RIGHT FOR ME? Following are some additional questions you may want to ask as you decide which Medical Plan option is best for you and your family: Ask Yourself Do I want medical coverage through JPMorgan Chase, or do I have adequate coverage elsewhere? Do I want an option with higher out-of-pocket costs (such as for deductibles or copayments) to reduce my per-pay-period contributions? Would I rather have higher per-pay-period contributions and spend less out of pocket during the year? Do I want the flexibility to receive services either in-or out-ofnetwork? Are my current health care providers associated with the option that I m considering? Do I want to contribute before-tax money to a Health Care Spending Account that must be used within a certain time period or be forfeited? Do I want the opportunity to contribute before-tax money to a Health Savings Account that rolls over from year to year, can accrue interest, and can be used for current and future health care expenses? You May Want to Consider... Comparing JPMorgan Chase Medical Plan options to your spouse s/domestic partner s coverage The POS Low Option or the CDHO The POS High Option or the EPO/HMO Option The POS High and Low Option or the CDHO Checking with your provider. The list of providers for any given health care network can change during the course of the plan year, so check with your provider to make sure that he or she plans to continue participating in your Medical Plan option for 2009 The Health Care Spending Account Enrolling in the CDHO and contributing to a Health Savings Account ELIGIBLE DEPENDENTS In addition to employee coverage, your dependents are also generally eligible for coverage under the JPMorgan Chase Medical Plan. Eligible dependents generally include: Your spouse or domestic partner (as defined below).* Your unmarried, dependent children who are fully dependent on you for financial support, up to the end of the month in which they reach: Age 19; or Age 21 if they are not eligible for benefits through their own employer; or Age 23 if they are a full-time student (as defined on page 9). (This includes dependent children of a domestic partner whether or not they are legally adopted by you, as long as your domestic partner is also enrolled.) You may continue coverage for an unmarried child who is not capable of supporting him or herself due to a mental or physical disability, if that disability began before the age limits described above and if he or she is fully dependent on you for financial support. Please Note: In a limited number of areas, the dependent eligibility guidelines described here may be superseded by state mandates that govern minimum dependent eligibility requirements within a particular state under an HMO Option. For a list of these states, please see the Dependent Eligibility Requirements on HR & Personal > Pay & Benefits > Library. *For purposes of administration of JPMorgan Chase s benefit plans, the term spouse refers to any person to whom you are legally married as recognized by U.S. federal law. Even if you are legally married under state law (i.e., in Massachusetts and California), or non-u.s. law (i.e., Canada, Spain, etc.) to a person of the same sex, your same sex spouse is considered to be your domestic partner for purposes of the administration of the JPMorgan Chase benefits plans, including the federal tax consequences for covering your domestic partner under your benefits (i.e., imputed income) and the benefits that may not be available to that person (i.e., the Health Care Spending Account). For more information regarding domestic partner coverage and the various federal and state tax consequences, please refer to the 2009 Domestic Partner Coverage Guide on HR & Personal > Pay & Benefits > Library. 8 The JPMorgan Chase U.S. Benefits Program Continued

10 Certain The Definition Individuals of a Full-Time are Not Eligible Student for the Health Savings Account Generally, a full-time student is defined as a dependent enrolled in an educational institution at the time services are received. The definition JPMorgan Chase uses for full-time is the same definition used by the educational institution. (Typically, 12 credit hours per semester is considered full time.) During the summer term when many dependents aren t enrolled, coverage is based on enrollment during the previous term unless the student has completed studies (i.e. graduated). An educational institution is defined as a school maintaining a regular faculty, an established curriculum, and an organized student body in attendance. It includes high schools, colleges, technical schools and similar institutions, but doesn t include on-the-job training. Dependents who are taking classes part time in their last semester to complete their degree will continue to meet the definition of a full-time student. The JPMorgan Chase Medical Plan offers four coverage categories to help match your coverage needs: Employee Only Employee Plus One Adult (spouse or domestic parnter) Employee Plus Child(ren) Employee Plus Adult (spouse or domestic partner) Plus Child(ren) You are responsible for understanding the dependent eligibility rules and abiding by them. When you first enroll and each year during your designated enrollment period, or within 31 days following a qualified status change, it is important that you review both the dependent eligibility rules and the status of your covered dependents to ensure that you cover only eligible dependents. JPMorgan Chase conducts dependent eligibility audits on an annual basis. Such audits help ensure that dependents who have been certified for coverage during the enrollment process continue to meet plan rules for eligibility. As a result, you may be asked to provide documentation of eligibility for your covered dependents at any time (e.g. birth certificate, marriage certificate, etc.). Failure to either respond to a request for documentation or provide adequate proof of eligibility may result in termination of dependent coverage, repayment of the cost of that coverage, and/or disciplinary action up to and including termination of employment. For a listing of acceptable documentation, please see the Dependent Eligibility Requirements on HR & Personal > Pay & Benefits > Library DOMESTIC PARTNERS You and your domestic partner must: Be age 18 or older; Have lived together for at least six months and have a serious, committed relationship; Be financially interdependent; Not be related to each other in a way that would prohibit legal marriage; and Not be legally married to, or the domestic partner of, anyone else; OR Have registered as domestic partners pursuant to a domestic partnership ordinance or law of a state or local government, or under the laws of a foreign jurisdiction. Important Note: When enrolling a domestic partner for coverage under certain HMOs, please be sure that the option you select allows coverage for a domestic partner. Kaiser Permanente HMO Colorado only permits same-sex, not opposite sex, domestic partner coverage. Also, the Health Savings Account component of the Consumer Driven Health Option and/or the Health Care Spending Account does not apply to domestic partners unless you can claim him or her as a dependent on your federal tax return. You may wish to contact a personal financial planner and/or tax advisor regarding the tax treatment of coverages related to your domestic partner and/or your domestic partner s children. For additional information on covering domestic partners, please review the 2009 Domestic Partner Coverage Guide on HR & Personal > Pay & Benefits > Library, contact each plan option directly, or contact the Benefits Call Center and speak with a Service Representative. The JPMorgan Chase U.S. Benefits Program 9

11 COST FOR COVERAGE You and JPMorgan Chase share the cost of coverage under the Medical Plan. Your contributions are deducted from your pay on a before-tax basis before federal (and, in most cases, state and local) income taxes are withheld. The amount you pay depends on the level of your total annual cash compensation (excluding overtime), the medical option you choose, where you live, the number and type of eligible dependents you cover, and your and/or your covered dependents smoker status. In general, the higher your total annual cash compensation, the higher the cost of health care in the geographic area where you live, and the more dependents you cover under the Medical Plan, the higher your cost for coverage will be. The following chart shows the total annual cash compensation levels currently used to determine employee before-tax contributions under the Medical Plan. (Specific contribution rates for each of your available Medical Plan options will be communicated during your designated enrollment period.) Total annual cash compensation is your rate of base salary plus applicable job differential pay (e.g., shift pay) as of each August 1, plus any cash earnings from any incentive plans (e.g., annual bonus, commission, draws, overrides, and special recognition payments or incentives), that are paid to or deferred by you for the previous 12-month period ending each July 31. Overtime is not included. For purposes of determining your eligibility to receive company matching contributions under the 401(k) Savings Plan, the Medical Plan contribution pay tier level that applies to you, and eligibility to participate in the Employee Stock Purchase Plan, your total annual cash compensation is recalculated as of each August 1 to take effect the following January 1 and will remain unchanged throughout the year. For most employees hired on or after August 1, total annual cash compensation will be equal to base salary plus job differentials. Total Annual Cash Compensation Levels Used to Determine Medical Plan Contributions Level Total Cash Compensation (excluding overtime) Employee Pays Up to $39, $40,000 $79, $80,000 $149, Least $150,000 $249, $250,000 $349, $350,000 and above Most Smoker and Non-Smoker Rates for Certain Benefits Coverage Eligible employees and their covered dependents who don t smoke pay less for coverage under the following Health and Income Protection Plans than those who smoke: Medical Plan (employee, adult, and child coverage); Long-Term Disability Plan (employee coverage); and Supplemental Term Life Insurance Plan (employee and adult coverage). Under the JPMorgan Chase U.S. Benefits Program, a smoker is any person who has smoked any type of tobacco products (i.e., cigarettes, cigars, or a pipe) regardless of the frequency or location (this includes daily, occasionally, socially, at home only, etc.) in the 12 months preceding any January 1. This definition does not pertain to users of tobacco products that are not smoked, such as chewing tobacco or snuff. When you enroll as a newly eligible employee or during a subsequent annual enrollment period, you will declare a non-smoker/smoker status for yourself and each applicable dependent that you elect to enroll. The status you report will remain in effect for the calendar year. After you (and/or your covered dependents) have been smoke-free for 12 months (as of January 1 each year) or completed a pre-approved smoking cessation course and certified attendance by the applicable deadline (as part of the annual enrollment process), you ll be eligible for lower non-smoker rates beginning January 1 of the following year. If you are hired on or after October 1, for the current plan year and the following plan year you will be assigned non-smoker rates for your and your dependents coverage for certain benefits even if you declare yourself a smoker, because you may not have had an opportunity to complete a smoking cessation program in order to qualify for the lower non-smoker rates. You ll receive more information regarding the opportunity to update your smoker status during the annual benefits enrollment period. More information on smoking cessation programs and requirements is available on HR & Personal > Wellness. 10 The JPMorgan Chase U.S. Benefits Program

12 Dental Plan JPMorgan Chase offers four different dental options based on where you live. All options provide coverage for preventive care, basic and major restorative care, as well as orthodontia services for dependent children (up to age 19). Here s a brief overview of each Dental Plan option: DENTAL OPTIONS AT A GLANCE Provision Preferred Dentist Program (PDP) Option In-Network Out-of-Network Dental Maintenance Organization (DMO) Option Aetna Dental Health Maintenance Organization (DHMO) Option CIGNA Traditional Indemnity Option Annual deductible - Preventive - Restorative (basic and major) $25 individual, $75 family $75 individual, $225 family $75 individual, $225 family - Orthodontia $50 individual (lifetime) $150 individual (lifetime) $150 individual (lifetime) Preventive (exams, cleanings, x-rays, sealants) (no deductible) 100% coverage 70% coverage 100% coverage 100% coverage* with $0 copayment 90% coverage Basic restorative (fillings, extractions, root canal, periodontal, oral surgery, anesthesia) 80% coverage after deductible 60% coverage after deductible 80% coverage Approximately 80% coverage* with copayments ranging from $0 to $250 75% coverage after deductible Major restorative (dentures, bridges, inlays, onlays, crowns) 60% coverage after deductible 50% coverage after deductible 60% coverage Approximately 60% coverage* with copayments ranging from $15 to $325 50% coverage after deductible Orthodontia - Child (up to age 19) 50% coverage after deductible 50% coverage after deductible 50% coverage $2,400 copayment 50% coverage after deductible - Adult 50% coverage $2,900 copayment Maximum benefits - Combined annual for preventive and restorative Maximum $1,500** Maximum $1,500** No maximum No maximum Maximum $1,500 - Lifetime for orthodontia Maximum $2,500** Maximum $2,000** Limited to one course of treatment per lifetime 24 months of interceptive and/or comprehensive treatment (cases beyond 24 months or atypical cases require additional payment by the patient) Maximum $2,000 All in-network percentages above apply to dentists negotiated fees. All other percentages generally apply to reasonable and customary charges. Frequency limits may apply to certain services. *The CIGNA DHMO Option is based on a copayment structure per procedure. This coinsurance percentage reflects an approximation of copayments; the actual copayment will vary. More information will be available to you at the time of your benefits enrollment period. **Combined in- and out-of-network. The JPMorgan Chase U.S. Benefits Program 11

13 PREFERRED DENTIST PROGRAM (PDP) OPTION The Preferred Dentist Program (PDP) Option, administered by MetLife, offers you the flexibility to choose between in-network and out-of-network dental care. Under this option, networks of participating dental providers offer their services for lower, prenegotiated rates. Here s how it works: When you need care, you can choose to visit a network provider or go out of network. In general, when you obtain care from an in-network dentist, your out-of-pocket costs will be lower; when you receive out-of-network care, your out-of-pocket costs will be higher. Once you pay a deductible, you and the company share the reasonable and customary costs for covered expenses, subject to plan maximums. No deductibles apply to in-network or out-of-network preventive services. DENTAL MAINTENANCE ORGANIZATION (DMO)/DENTAL HEALTH MAINTENANCE ORGANIZATION (DHMO) OPTION When you enroll in the Dental Maintenance Organization (DMO)/Dental Health Maintenance Organization (DHMO) Option, administered by Aetna and CIGNA, respectively: You receive care solely from dentists who are associated with the DMO/DHMO network. All of your care within the network is coordinated through a primary dentist. You must go through your primary dentist to receive benefits from the plan and for specialist referrals. In most cases, there are no deductibles. TRADITIONAL INDEMNITY OPTION The Traditional Indemnity Option, administered by MetLife, allows you to visit any dentist and receive care. This option also contains a preferred dentist feature, reducing your overall costs when you use a network dentist because you will be charged lower, negotiated fees. Generally, the total cost of care under this option is higher than under the other options, so the amount you pay for coverage will be higher. If you enroll in the Dental Plan s Traditional Indemnity Option, you pay a deductible and then you and the company share the reasonable and customary costs for covered expenses, subject to plan maximums. ELIGIBLE DEPENDENTS You can cover the same eligible dependents under the Dental Plan as under the JPMorgan Chase Medical Plan (please see page 8). COST FOR COVERAGE You and JPMorgan Chase share the cost of coverage under the Dental Plan. Your contributions are deducted from your pay on a before-tax basis. The amount you pay depends on the option you choose and the number and type of eligible dependents you cover. Important Details About Participation in the Dental Plan Identification (ID) Cards: If you enroll in the DMO/DHMO Option, you will receive a card from your provider. If you enroll in the PDP Option or the Traditional Indemnity Option, you will not receive a card, but can verify that you are a participant in these options by identifying the name of your option and the administrator, MetLife. Providers Leaving Networks: When considering your options under the Dental Plan, please remember that if your dentist leaves a network, it does not qualify as an event that allows you to change coverage during the year. Please check with your provider to ensure that he or she plans to continue participation in the option of your choice. 12 The JPMorgan Chase U.S. Benefits Program

14 Vision Plan The JPMorgan Chase Vision Plan, administered by EyeMed, helps you pay for covered vision expenses like eye examinations, lenses (including contact lenses), and eyeglass frames. When you seek care from a vision care professional within the plan s network, you will generally have a small copayment. If you choose to seek care outside the network, you will be reimbursed up to a specified dollar limit. EyeMed offers vision care coverage through 45,000 vision care providers nationwide at 21,000 locations, including retail chains such as LensCrafters, Pearle Vision, Target Optical, JCPenney Optical, and Sears Optical. Please Note: You cannot be reimbursed for both contact lenses and eyeglass lenses within the same plan year. Vision Plan at a Glance Annual Provision In-Network Allowance Non-Network Allowance Deductible Exams* Single vision lenses* Bifocal* Trifocal* Frames* Contact Lenses* Medically Necessary Conventional Disposable Laser vision correction LASIK or PRK 100% after $10 copayment 100% after $10 copayment 100% after $10 copayment 100% after $10 copayment $130 allowance plus 20% off amount over the allowance 100% $120 allowance plus 15% off amount over the allowance $120 allowance 15% off retail price or 5% off promotional price; whichever is lower Generally reimbursed up to $35 Generally reimbursed up to $25 Generally reimbursed up to $40 Generally reimbursed up to $55 Generally reimbursed up to $45 Reimbursed up to $210 Reimbursed up to $120 Reimbursed up to $120 Not covered *Limited to once per calendar year per covered individual. Please Note: You cannot be reimbursed for both contact lenses and eyeglass lenses within the same plan year. ELIGIBLE DEPENDENTS You can cover the same eligible dependents under the Vision Plan as under the JPMorgan Chase Medical Plan and Dental Plan (please see page 8). COST FOR COVERAGE Your contributions for Vision Plan coverage are deducted from your pay on a before-tax basis. Your cost for coverage depends on the number and type of dependents you cover. Important Details About Participation in the Vision Plan Identification (ID) Cards: All new Vision Plan participants will receive a card from EyeMed. Continued The JPMorgan Chase U.S. Benefits Program 13

15 Spending Accounts Spending accounts allow you to set aside before-tax money to pay for eligible health care, dependent care, and transportation expenses. JPMorgan Chase offers three spending accounts the Health Care Spending Account, the Child/Elder Care Spending Account, and the Transportation Spending Accounts (Mass Transit/Parking). HEALTH CARE SPENDING ACCOUNT You can generally contribute up to $8,000 a year on a before-tax basis to pay for eligible out-of-pocket health care expenses. You may use your Health Care Spending Account for eligible expenses such as: Medical, prescription drug, and dental deductibles and coinsurance; Costs for non-covered prescription drugs such as non-sedating antihistamines; Eyeglasses and contact lenses (for amounts not covered under any Vision Plan you may be enrolled in); and Routine office visit copayments, coinsurance amounts, orthodontia, and other eligible expenses that may not be covered by any medical or dental plan. Certain expenses, such as those for cosmetic surgery or health care premiums, are not reimbursable under the Health Care Spending Account. Please Note: If you elect to participate in both the Health Care Spending Account and the Health Savings Account feature of the Consumer Driven Health Option under the Medical Plan, your Health Care Spending Account will be limited to dental and vision expenses only. Health Care Spending Account Reimbursement Choices If you enroll in the Health Care Spending Account and participate in the POS High or Low Options or the Traditional Indemnity Option under the Medical Plan, or the Preferred Dentist Program (PDP) or Traditional Indemnity Option under the Dental Plan, you have a choice in the way you will be reimbursed from your spending account for medical, dental, or prescription drug out-of-pocket expenses. You can be reimbursed either through a Health Care Spending Account card or through the automatic claim rollover feature. If you participate in the Health Care Spending Account with any Medical or Dental Plan option other than those listed above, you only have the Health Care Spending Account card option available to you. You cannot use the Health Care Spending Account card option with the automatic claim rollover feature, or vice versa. Please Note: Your election can only be changed during your annual enrollment period. If you do not indicate a preference, you will be assigned the Health Care Spending Account card reimbursement option. Health Care Spending Account Card: The Health Care Spending Account card works like a debit card in that it lets you electronically access your account to pay for eligible health care expenses that you incur at locations where the card is accepted. The card can be used at the point of sale (for example, when you re filling a prescription). You will always have the option to submit paper claims for reimbursement if you do not wish to use the Health Care spending Account card, or if your provider does not accept the card. You will receive one card per family, but may request additional cards from the plan administrator, ADP. Please Note: The Internal Revenue Service (IRS) requires proof of purchases made with a spending account card; therefore, it is recommended that you keep your receipts for three years. Card transactions will be automatically substantiated when the card is used at businesses that primarily or exclusively provide eligible health care services and products, or at retail pharmacies, drug stores, and merchants who sell over-the-counter health care products and comply with IRS approval system requirements. You will not be required to substantiate your Health Care Spending Account card purchase when you use it for prescriptions through the JPMorgan Chase Prescription Drug plan (administered by Caremark) if you are enrolled in the following Medical Plan options: POS High and Low, EPO, or Traditional Indemnity. In addition, if your Medical or Dental Plan option has fixed copayments, you may not be required to substantiate these expenses. Automatic Claim Rollover Feature: With the automatic claim rollover feature, most eligible expenses you incur will automatically be submitted to your Health Care Spending Account for reimbursement after payment from your Medical/Dental Plan (under the Medical Plan s POS High or Low Options and Traditional Indemnity Option, and the Dental Plan s PDP and Traditional Indemnity Options). You won t have to submit claim forms for these expenses. You will have to submit paper claims for plans that do not participate in the automatic claim rollover feature, such as vision care expenses, eligible health care expenses under an EPO/HMO or spouse s plan, or over-the-counter health care expenses. For example, when you go to the doctor, once your claim is processed by the medical claims administrator, the remaining amount (i.e., office visit copayment) will be sent to your Health Care Spending Account administrator, ADP, and eligible expenses will automatically be reimbursed to you. 14 The JPMorgan Chase U.S. Benefits Program Continued