2013-2014 Employee Benefit Summary Guide

Table of Contents Introductory Letter... 2 About Your Benefits... 3 2013-2014 Medical Rates... 5 2013-2014 Dental Rates... 5 Online Benefit Enrollment - WorkTerra... 6 Log-in Instructions... 6 General Guidance... 7 Notice of Privacy Information Practices... 8 City of Durham Department Liaisons... 9 BCBSNC Premium Plan Highlights... 10 BCBSNC Core Plan Highlights... 14 BCBSNC Basic Plan Highlights... 18 BCBSNC Dental Plan Highlights... 22 Vision Plan... 23 Employee Assistance Plan... 24 Group Term Life and AD&D - Unum... 26 Long Term Disability Unum... 30 Short Term Disability Unum... 37 Healthcare Reimbursement Arrangement (HRA)... 42 Flexible Spending Accounts (FSA)... 44 Colonial Life Voluntary Products... 47 Hyatt Legal Plan (MetLaw)... 51 Liberty Mutual (Auto and Home)... 52 Long Term Care Insurance... 53 Time Off Benefits...55 Retirement Benefits...59 COBRA Benefits Continuing Your Coverage...61 Employee Discounts... 63 Important Contact Information... 65 About This Guide and Key Terms... 66 Important Tips to Remember... 68 1

June 2013 Dear City Employee: We d like to welcome you to the start of another open enrollment season. It is our pleasure to provide you with this important resource regarding your benefits at the City of Durham. This guide has all of the information you will need for open enrollment and throughout the year so that you can make educated decisions that are right for you and your family. Open Enrollment is a great time to review your existing benefit plans, evaluate any anticipated needs, learn more about your benefits and make adjustments for the upcoming year. Your benefits make up an important part of your total compensation. The City of Durham offers a comprehensive benefits package for our employees and their eligible dependents. Our benefits program provides a flexible approach to certain City benefits, allowing you to select coverage that best meet your needs. We have placed our major focus on enhancements to the City s Wellness program in order to create a culture of wellness. The 2013-2014 plan design continues our effort to be more involved in your health care decisions, to take advantage of preventive health care options, and to adopt healthy lifestyles. We encourage you to continue getting the most from your healthcare benefits by expanding your awareness, attending education sessions, and reading articles and special announcements about health that may be useful to you and your family. The City s 2013 annual OPEN ENROLLMENT period will occur June 18-July 19, 2013. Remember, annual enrollment is the only chance you have each year to adjust your benefits, except for qualifying events or when court ordered. Your benefit plan changes must be completed and submitted no later than Friday, July 19, 2013. Please enroll online at www.workterra.net for health, dental, vision, life, long term disability, short term disability, Hyatt Legal Plans and flexible spending accounts. For voluntary benefits with Colonial, Liberty Mutual and New York Life you will be able to meet with enrollment counselors. Stay tuned for the schedule of site location and times. We look forward to working with you!!!!!!!!!!! Human Resources Department 2

About Your Benefits Choosing Your Benefits Some benefits like basic life insurance are automatic. You don t have to choose them because the City pays the entire cost. But you must actively choose any benefit that you pay for. Your part of the cost is automatically deducted from your paycheck. There are two ways that the money can be deducted: PRE TAX premiums are collected for Medical, Dental and Flexible Spending Accounts; and POST TAX premiums are collected for the following optional benefit plans: Short Term Disability, Long Term Care, Supplemental and Dependent Life Insurance and Universal Life insurance premiums. Making Changes Employee benefit elections must be made before the start of each plan year during open enrollment or as part of the new hire benefits enrollment process. Your benefit selection will remain in effect through August 31, 2014. Generally, you can only change your benefit choices during the annual benefits enrollment period. However, you can change your applicable benefit plans during the year if you have a family status change. Family status changes include: You get married You get divorced or legally separated Birth, adoption, or placement of adoption of an eligible child Death of your spouse or covered child Change in your or your spouse s or domestic partner s work status that affects benefits eligibility (for example: starting a new job, leaving a job, or leave of absence) A significant change in your spouse s or domestic partner s health coverage attributable to your spouse s or domestic partner s employment A change in your child s eligibility for benefits Becoming eligible for Medicare or Medicaid Commencement of or returning from an unpaid leave for employee/spouse If you have a family status change, you must notify your Human Resources team within 30 days of the change and complete appropriate paperwork within 30 days. Depending on the type of change, you may need to provide proof of the change (for example: a copy of a marriage license or birth certificate). If you do not notify your Human Resources team within 30 days, you will have to wait until the next annual enrollment period to make benefit changes unless you have another family status change. Any changes you make to your benefit choices must be directly related to the family status change. Financial hardship is not a change in life status that qualifies for changing or stopping your insurance coverages or Flexible Spending Account contributions. 3

The IRS has strict regulations regarding changes to insurance coverages and flexible spending account plans that allow payroll deductions on a pre tax basis. Once you have elected your coverage and contribution amounts, you cannot start, change, or cancel them during the benefit period unless you have a qualifying change in your life status. The new medical and dental insurance premiums will appear on your first August 2013 paycheck. All other deductions for the 2013 2014 plan years, if you choose to participate, will begin on your September 2013 paycheck. When Coverage Ends All benefits end the last day of the month following a qualifying event change, separation of employment or date of death. If you have a dependent that turns 26 years old their coverage ends on their 26th birthday. Eligibility for Healthcare Benefits All full time and specified part time or temporary with benefits employees (not all benefits may apply to temporary with benefits employees) are eligible for medical coverage beginning on the first day of month following date of employment. You may also enroll eligible dependents, which include your: Spouse Domestic partner (same sex and opposite sex) You must complete an affidavit and provide two documents showing proof of existence of the relationship for at least 6 months (e.g., lease or mortgage, joint bank or credit account) Unmarried children who meet the IRS definition of a dependent, including legally adopted, foster, and step children, children placed for adoption, and children for whom legal guardianship has been awarded to you. You can cover dependents up to the age of 26. Unmarried children who are mentally or physical handicapped and incapable of selfsupport, regardless of age. Contact the benefits team for Questions Michele Cash, Benefits Manager (919) 560 4214 ext 23274 Dee Byers, Health & Wellness Strategies Coordinator (919) 560 4214 ext 23252 Sofia Klenke, HR Consultant (919) 560 4214 ext 23272 Gwen Burnette, HR Consultant (919) 560 4214 ext 23281 4

City of Durham 2013/2014 Health and Dental Insurance Rate Sheet: Monthly Employee/City Contributions HEALTH BLUE CROSS/BLUE SHIELD Premium Plan Total City City Employee Cost Cost % Cost Single $640.50 $572.25 89% $68.25 2 Pty $1,140.30 $772.64 68% $367.66 Family $1,701.00 $1,079.87 63% $621.13 Core Plan Single $572.25 $539.75 94% $32.50 2 Pty $936.60 $772.64 82% $163.96 Family $1,495.20 $1,079.87 72% $415.33 Basic Plan Single $522.90 $522.90 100% $0.00 2 Pty $898.80 $772.64 86% $126.16 Family $1,368.15 $1,079.87 79% $288.28 DENTAL BLUE CROSS/BLUE SHIELD Total City City Employee Cost Cost % Cost Single $41.10 $27.54 67% $13.56 2 Pty $70.90 $41.12 58% $29.78 Family $120.30 $40.90 34% $79.40 5

City of Durham Online Enrollment System Quick Guide Login Instructions WorkTerra Website: Type the following address into your web browser: https://www.workterra.net If your browser blocks pop ups, you must configure your browser to always allow pop ups from this site. You should see the WorkTerra login page pictured below. Enter User ID: Your User ID will be your full Last Name followed by your full First Name without a space between. For example, if your name is Russ Bond your User ID is: bondruss Initial Password: Your password will be your full Date of Birth in MMDDYYYY format. For example, if your Date of Birth is: July 9, 1983 Then your password is: 07091983 Company Name: City of Durham Login: Click the Login button. Help: If you need assistance logging in, please contact the City of Durham Human Resources Department. Legal Agreement & Welcome Page Read the Employee Usage Agreement and click Continue at the bottom of the page. Read the Legal Agreement and click Continue at the bottom of the page. Read the Welcome message and click Continue at the bottom of the page. 6

City of Durham Online Enrollment System Quick Guide Change Password The first time you log in to WorkTerra, you will be required to create a new password. You will see the screen below. WorkTerra password change page pictured below. Secret Questions: For additional security and password recovery, you will select secret questions and enter your answers. Select 2 Secret Questions from the dropdown lists and enter your Secret Answers. New Password: Read the password rules at the top of the screen. Enter your new password. Enter your password again to confirm. Passwords are case sensitive. Click on the Save and Continue button. Demographic Information and Benefit Elections Step by step instructions are available in the forms library in WorkTerra, on the City s Human Resources intranet site, and from your Department Liaison. The following general instructions will help you navigate WorkTerra and successfully complete your enrollment. Do not use your internet browser back and forward buttons. If you do, WorkTerra s security features will log you out and you will have to log in again. Demographic information marked with a red asterisk is mandatory. Even if you do not want to enroll your spouse or children in benefits, add them to the demographic section of WorkTerra so that you can choose them as beneficiaries of your life insurance benefits. To enroll in a benefit, choose the plan that you want by clicking the radio button next to the plan name. If you are covering dependents, select them by clicking the box next to their name. If you do not wish to enroll in a benefit, click on the Waive Enrollment box. Click the Save & Continue button to proceed forward through your enrollment options. Your enrollment is not finished until you click the buttons on the bottom of the Confirmation page. Click either the Print & Finish button or the Finish Without Printing button. It is strongly recommended that you print a copy for your records. You may login to WorkTerra to change your enrollment selections during open enrollment or to view your prior confirmed enrollments. 7

Notice of Privacy Information Practices Our Legal Duty: We are required by law to protect the privacy of your information, provide this Notice about our information practices, and follow the information practices that are described in this Notice. In accordance with 45 CFR Section 164.520 (c) (1) (iii), this Notice is provided to the named insured under the Group Health Plan (s). It is the responsibility of the named insured to share this Notice with his/her dependents. You may also review the City s Privacy Policy at www.durhamnc.gov. Should you have any questions regarding the Notice(s), you may contact the Administrative Entity for the appropriate plan or Gwendolyn Burnette, Human Resources Consultant at Gwendolyn.Burnette@durhamnc.gov. What is HIPAA? A federal regulation, the Health Insurance Portability and Accountability Act of 1996, also known as the HIPAA Privacy Rule, requires the City to provide a detailed notice in writing of its privacy practices. The notice is long because the HIPAA Privacy Rule requires the City to address a number of specific issues in its notice of privacy information practices. Uses and Disclosure of Health Insurance: The City may contract with individuals and entities (Business Associates) to perform various functions and activities on the City s behalf and to provide certain types of services for the City. In their performance of these functions, activities and services, the City s Business Associates may receive, create, maintain, use or dispose Protected Health Information (PHI), but only after the Business Associate has agreed in writing to contract terms designed to appropriately safeguard the information. The Administrative Entity may use PHI to ascertain, on behalf of the Group Health Plan(s), ways to improve the quality of health care and to possibly reduce health care costs. The Administrative Entity may use and disclose PHI for billing, claims management, and collection activities. The vast majority of the PHI that is received, used, and maintained by the Administrative Entity, on behalf of City s Group Health Plan(s), is never seen by the City in its capacity as Plan Sponsor nor in its capacity as the employer. Complaints Under HIPAA: If you believe that your privacy rights have been violated, you may complain to the City in care of: Gwendolyn Burnette, Privacy Officer, HR at 919-560-4214, extension 23281 or Gwendolyn.Burnette@durhamnc.gov. You may also file a complaint with the Secretary of the U.S. Department of Health and Human Services, Hubert H. Humphrey Building, 200 Independence Avenue S.W., Washington, D.C. 20201. All complaints must be submitted in writing. The City will not retaliate against you for filing a complaint. Whom to Contact for More Information: If you have any questions regarding the Notice or the subjects addressed in it, you may contact Gwendolyn Burnette, Privacy Officer, Human Resources Consultant, at (919) 560-4214, extension 23281 or Gwendolyn.Burnette@durhamnc.gov. 8

2013 2014 City of Durham Departmental Liaisons Name Department E mail Address Telephone Barnette, Keshia Economic and Workforce Development Keshia.Barnette@durhamnc.gov 919 560 4965 ext 15215 Bass, Vivienne Budget and Management Services Vivienne.Bass@durhamnc.gov 919 560 4111 ext 20225 Bass Hedgepeth, Joanne Finance JoAnn.Bass Hedgspeth@durhamnc.gov 919 560 4125 ext 18268 Compton, Debbie Inspections Debbie.Compton@durhamnc.gov 919 560 4144 ext 26147 Egerton, Terri Street Maintenance/Public Works Terri.Egerton@durhamnc.gov 919 560 4326 ext 30223 Gardner, Doris Police Employees Services Doris.Gardner@durhamnc.gov 919 560 4402 ext 29153 Hester, Gloria General Services Gloria. Hester@durhamnc.gov 919 560 4197 ext 21238 Horton Bailey, Latasha Fire Latasha.Horton Bailey@durhamnc.gov 919 560 4242 ext 19230 Finch, Allison Water & Sewer Maintenance Division Allison.Finch@durhamnc.gov 919 560 4344 ext 35338 Love, Dan EO/EA Dan.Love@durhamnc.gov 919 560 4180 ext 17245 Mangum, Christel Fire Christel.Mangum@durhamnc.gov 919 560 4242 ext 19225 McClarty, Paula Community Development Paula.McClarty@durhamnc.gov 919 560 4570 ext 22221 McDonald, Cheryl Neighbor Improvement Services Cheryl.McDonald@durhamnc.gov 919 560 1647 ext 34248 Merritt, Sandy Storm Water/ GIS Sandy.Merritt@durhamnc.gov 919 560 4326 ext 30224 Mitchell, Kim Fleet Management Kim.Mitchell@durhamnc.gov 919 560 4101 ext 31221 Neal, Katrena Human Resources Katrena.Neal@durhamnc.gov 919 560 4214 ext 23276 Quick, Saundra Information Technology Saundra.Quick@durhamnc.gov 919 560 4122 ext 33226 Rhodes, Brian Transportation Brian.Rhodes@durhamnc.gov 919 560 4366 ext 36427 Richardson, Barbara Parks and Recreation Barbara.Richardson@durhamnc.gov 919 560 4355 ext 27211 Smith, Cheryl 911/Communications Cheryl.Smith@durhamnc.gov 919 560 4500 ext 16276 Staten, Belinda Solid Waste Management Belinda.Staten@durhamnc.gov 919 560 4186 ext 32238 Varner, Lisa City Attorney's Office Lisa.Varner@durhamnc.gov 919 560 4158 ext 13243 Washington, Norma City Manager's Office Norma.Washington@durhamnc.gov 919 560 4222 ext 11232 Willard, Susan Planning Department Susan.Willard@durhamnc.gov 919 560 4137 ext 28265 Williams, Pamela Water Management Pamela.Williams@durhamnc.gov 919 560 4381 ext 35264 Wright Corbett, Evelyn Mayor's Office/ City Clerk's Office Evelyn.Wright Corbett@durhamnc.gov 919 560 4333 ext 12259 9

City of Durham Premium Plan Effective Date: 09/01/2013 10 U4964, 7/11

Blue Options SM Benefit Highlights (PPO) Physician Office Services (See Outpatient Hospital Services for outpatient clinic In-network Out-of-network 1 or hospital-based services.) Office Visit Includes Office Surgery, Consultation, X-rays, Lab and benefit period maximum of 4 office visits for the assessment of obesity in and out of network. Primary Care Provider $15 copayment 70% after deductible Specialist $30 copayment 70% after deductible Preventive Care Routine Examinations, Well-Child Care, Well-Baby Care, Immunizations, Well- Woman Care, colorectal screening, bone mass measurement, newborn hearing screening, routine eye exam and prostate specific antigen tests (PSAs). Primary Care Provider 100% Not Available* Specialist 100% Not Available* Outpatient Clinic 100% Not Available* *Colorectal screening, bone mass measurement, newborn hearing screening, prostate specific antigen tests (PSAs) and certain well woman care like gynecological exams, cervical cancer screening, ovarian cancer screening and screening mammograms are covered Out-of-network. Therapies Short-Term Rehabilitative Therapies (Maximums apply to Home, Office and Outpatient Settings): Physical/Occupational: 30 visits per Benefit Period Speech Therapy: 30 visits per Benefit Period Primary Care $15 copayment 70% after deductible Specialist $30 copayment 70% after deductible Urgent Care Centers and Emergency Room Urgent Care Centers $15 copayment $15 copayment Emergency Room Visit (Inpatient Hospital benefits apply if admitted. If held for $300 copayment $300 copayment Observation, Outpatient benefits apply. See Inpatient and Outpatient Hospital Services ) Ambulatory Surgical Center 90% after deductible 70% after deductible Inpatient and Outpatient Hospital Services Hospital and Hospital Based Services 90% after deductible 70% after deductible Outpatient Clinic Services 90% after deductible 70% after deductible Professional Services 90% after deductible 70% after deductible Hospital and Professional Outpatient Labs and Mammograms with surgery or other services 90% after deductible 70% after deductible Outpatient Labs and Mammograms without surgery or other services 100% 70% after deductible Outpatient X-rays, ultrasounds, and other diagnostic tests, such as 90% after deductible 70% after deductible EEG s and EKG s CT scans, MRI s, MRA s and PET scans in any location, including 90% after deductible 70% after deductible physician s office Other Services Skilled Nursing Facility (60 days per Benefit Period) 90% after deductible 70% after deductible Home Health Care, Ambulance, 90% after deductible 70% after deductible Durable Medical Equipment and Hospice Maternity Maternity Delivery includes Prenatal and Post-delivery care Hospital Services (Delivery) 90% after deductible 70% after deductible Professional Services (Delivery) 90% after deductible 70% after deductible Transplants Hospital Services 90% after deductible 70% after deductible Professional Services 90% after deductible 70% after deductible 11 Page 2

Blue Options SM Benefit Highlights (PPO) Infertility Services Up to $5,000 Primary Care Provider $15 copayment 70% after deductible Specialist $30 copayment 70% after deductible Hospital Services 90% after deductible 70% after deductible Inpatient and Outpatient Professional Services 90% after deductible 70% after deductible Vision (Routine Eye Exams) 100% Not Available Lifetime Maximum, Deductibles & Coinsurance Maximums In-network Out-of-network 1 The following Deductibles and Coinsurance Maximums apply to the services on the previous page [and Mental Health and Substance Abuse services below]: Lifetime Benefit Maximum Unlimited Unlimited Deductibles Individual (per Benefit Period) $500 $1000 Family (per Benefit Period) $1000 $2000 Coinsurance Maximum Individual (per Benefit Period) $1500 $3000 Family (per Benefit Period) $3000 $6000 Mental Health and Substance Abuse Services Certified* Non-Certified 1 *Inpatient/Outpatient Certification is required. Call Magellan Behavioral Health at 1-800-359-2422. Mental Health Services Office visits $30 copayment 70% after deductible Inpatient Hospital 90% after deductible 70% after deductible Outpatient Hospital 90% after deductible 70% after deductible Substance Abuse Services Office Visit $30 copayment 70% after deductible Inpatient Hospital Outpatient Hospital 90% after deductible 90% after deductible 70% after deductible 70% after deductible Prescription Drugs- Retail Pharmacy Up to 31 day supply. 32-90 day supply is two copayments. Infertility Drugs up to $5000. MAC B Pricing, Brand Penalty. Tier 1 (Generic) $0 copayment Copayment + charge over In-network allowed amount Tier 2 (Preferred Brand) $20 copayment Copayment + charge over In-network allowed amount Tier 3 (Brand) $35 copayment Copayment + charge over In-network allowed amount Diabetic Supplies: 100% 100% Spacers and Peak Flow Meters: 100% 100% Medco Mail Order - 90 day supply: Tier 1 (Generic) Tier 2 (Preferred Brand) Tier 3 (Brand) Diabetic Supplies Spacers and Peak Flow Meters $0 copayment $40 Copayment $70 copayment 100% 100% Not Available Not Available Not Available Not Available Not Available 12 Page 3

ADDITIONAL INFORMATION ABOUT BLUE OPTIONS FROM BCBSNC Benefit Period The period of time, usually 12 months as stated in the group contract, during which charges for covered services provided to a member must be incurred in order to be eligible for payment by BCBSNC. A charge shall be considered incurred on the date the service or supply was provided to a member. Allowed Amount The charge that BCBSNC determines using a methodology that is applied to comparable providers for similar services under a similar health benefit plan. Coinsurance Maximum The dollar amount of coinsurance a member must pay prior to BCBSNC paying 100% for certain services. NOTE: In some plans, there is no coinsurance maximum; members are responsible for coinsurance once the deductible has been met. Day and Visit Maximums All day and visit maximums are on a combined In- and Out-of Network basis. Utilization Management To make sure you have access to high quality, cost-effective health care, we manage utilization through a variety of programs including certification, transplant management, concurrent and retrospective review and care management. If you have a concern regarding the final determination of your care, you have the right to appeal the decision. If you would like a copy of a benefit booklet providing more information about our Utilization Management programs, call the toll free number listed in your information packet. Certification Certification is a program designed to make sure that your care is given in a cost effective setting and efficient manner. If you need to be hospitalized, you must obtain certification. Non-emergency and non-maternity hospital admissions must be certified prior to the hospitalization. If the admission is not certified, a penalty will be applied. For maternity admissions, your provider is not required to obtain certification from BCBSNC for prescribing a length of stay up to 48 hours for a normal vaginal delivery, or up to 96 hours for delivery by cesarean section. You or your provider must request certification for coverage for additional days, which will be given by BCBSNC, if medically necessary. All inpatient and certain outpatient Mental Health and Substance Abuse services must be certified in advance by Magellan Behavioral Health. Office visits do not require certification. In-network providers are responsible for obtaining certifications. The member will bear no financial penalties if the in-network provider fails to obtain the appropriate authorization. The member is responsible for obtaining certification for services rendered by an out-of-network provider. Obtaining certification for Mental Health and Substance Abuse services is the member s responsibility. Health and Wellness Program Because we want to help you stay healthy, we offer a variety of wellness benefits and services. You can take advantage of HealthLine Blue, our 24-hour health information service, a health topics library, asthma and diabetes management and a prenatal program. You will also receive Active Blue, our health magazine and have access to online health and wellness information at www.bcbsnc.com. With our program you can get health advice anytime you need it, so you can learn how to take charge of your health. What Is Not Covered? The following are summaries of some of the coverage restrictions. A full explanation and listing of restrictions will be found in your benefit booklet. Your health benefit plan does not cover services, supplies, drugs or charges that are: Not medically necessary For injury or illness resulting from an act of war For personal hygiene and convenience items For inpatient admissions that are primarily for diagnostic studies For palliative or cosmetic foot care For investigative or experimental purposes For hearing aids or tinnitus maskers For cosmetic services or cosmetic surgery For custodial care, domiciliary care or rest cures For treatment of obesity, except for surgical treatment of morbid obesity, or as specifically covered by your health benefit plan For reversal of sterilization For treatment of sexual dysfunction not related to organic disease For conception by artificial means For self-injectable drugs in the provider's office A waiting period for coverage of pre-existing conditions may apply to your coverage. BCBSNC defines pre-existing conditions as those conditions for which medical advice, diagnosis, care or treatment was received or recommended within 6 months of the date that your [BCBSNC] coverage begins. You may receive credit toward the 12-month waiting period if your enrollment date is within 63 days of the termination of your previous health coverage. The benefit highlights is a summary of Blue Options benefits. This is meant only to be a summary. Final interpretation and a complete listing of benefits and what is not covered are found in and governed by the group contract and benefit booklet. You may preview the benefit booklet by requesting a copy of the Blue Options benefit booklet from BCBSNC Customer Services., SM Registration and Service marks of the Blue Cross and Blue Shield Association. An Independent Licensee of the Blue Cross and Blue Shield Association 13 Page 4

City of Durham Core PPO Plan Effective Date: 09/01/2013 14 U4964, 7/11

Blue Options SM Benefit Highlights (PPO) Physician Office Services (See Outpatient Hospital Services for outpatient clinic In-network Out-of-network 1 or hospital-based services.) Office Visit Includes Office Surgery, Consultation, X-rays, Lab and benefit period maximum of 4 office visits for the assessment of obesity in and out of network. Primary Care Provider $20 copayment 70% after deductible Specialist $40 copayment 70% after deductible Preventive Care Routine Examinations, Well-Child Care, Well-Baby Care, Immunizations, Well- Woman Care, colorectal screening, bone mass measurement, newborn hearing screening, routine eye exam and prostate specific antigen tests (PSAs). Primary Care Provider 100% Not Available* Specialist 100% Not Available* Outpatient Clinic 100% Not Available* *Colorectal screening, bone mass measurement, newborn hearing screening, prostate specific antigen tests (PSAs) and certain well woman care like gynecological exams, cervical cancer screening, ovarian cancer screening and screening mammograms are covered Out-of-network. Therapies Short-Term Rehabilitative Therapies (Maximums apply to Home, Office and Outpatient Settings): Physical/Occupational: 30 visits per Benefit Period Speech Therapy: 30 visits per Benefit Period Primary Care $20 copayment 70% after deductible Specialist $40 copayment 70% after deductible Urgent Care Centers and Emergency Room Urgent Care Centers $20 copayment $20 copayment Emergency Room Visit (Inpatient Hospital benefits apply if admitted. If held for $300 copayment $300 copayment Observation, Outpatient benefits apply. See Inpatient and Outpatient Hospital Services ) Ambulatory Surgical Center 80% after deductible 70% after deductible Inpatient and Outpatient Hospital Services Hospital and Hospital Based Services 80% after deductible 70% after deductible Outpatient Clinic Services 80% after deductible 70% after deductible Professional Services 80% after deductible 70% after deductible Hospital and Professional Outpatient Labs and Mammograms with surgery or other services 80% after deductible 70% after deductible Outpatient Labs and Mammograms without surgery or other services 100% 70% after deductible Outpatient X-rays, ultrasounds, and other diagnostic tests, such as 80% after deductible 70% after deductible EEG s and EKG s CT scans, MRI s, MRA s and PET scans in any location, including 80% after deductible 70% after deductible physician s office Other Services Skilled Nursing Facility (60 days per Benefit Period) 80% after deductible 70% after deductible Home Health Care, Ambulance, 80% after deductible 70% after deductible Durable Medical Equipment and Hospice Maternity Maternity Delivery includes Prenatal and Post-delivery care Hospital Services (Delivery) 80% after deductible 70% after deductible Professional Services (Delivery) 80% after deductible 70% after deductible Transplants Hospital Services 80% after deductible 70% after deductible Professional Services 80% after deductible 70% after deductible 15 Page 2

Blue Options SM Benefit Highlights (PPO) Infertility Services Up to $5,000 Primary Care Provider $20 copayment 70% after deductible Specialist $40 copayment 70% after deductible Hospital Services 80% after deductible 70% after deductible Inpatient and Outpatient Professional Services 80% after deductible 70% after deductible Vision (Routine Eye Exams) 100% Not Available Lifetime Maximum, Deductibles & Coinsurance Maximums In-network Out-of-network 1 The following Deductibles and Coinsurance Maximums apply to the services on the previous page [and Mental Health and Substance Abuse services below]: Lifetime Benefit Maximum Unlimited Unlimited Deductibles Individual (per Benefit Period) $750 $1500 Family (per Benefit Period) $1500 $3000 Coinsurance Maximum Individual (per Benefit Period) $2000 $4000 Family (per Benefit Period) $4000 $8000 Mental Health and Substance Abuse Services *Inpatient/Outpatient Certification is required. Call Magellan Behavioral Health at 1-800-359-2422. Mental Health Services Office Visits $40 copayment 70% after deductible Inpatient Hospital 80% after deductible 70% after deductible Outpatient Hospital 80% after deductible 70% after deductible Substance Abuse Services Office Visit $40 copayment 70% after deductible Inpatient Hospital Outpatient Hospital 80% after deductible 80% after deductible 70% after deductible 70% after deductible Prescription Drugs Up to 31 day supply. 32-90 day supply is two copayments. Infertility Drugs up to $5000. MAC B Pricing, Brand Penalty. Tier 1 (Generic) $0 copayment Copayment + charge over In-network allowed amount Tier 2 (Preferred Brand) $30 copayment Copayment + charge over In-network allowed amount Tier 3 (Brand) $45 copayment Copayment + charge over In-network allowed amount Diabetic Supplies 100% 100% Spacers and Peak Flow Meters 100% 100% Medco Mail Order - 90 day supply: Tier 1 (Generic) Tier 2 (Preferred Brand) Tier 3 (Brand) Diabetic Supplies Spacers and Peak Flow Meters $0 copayment $60 Copayment $90 copayment 100% 100% Not Available Not Available Not Available Not Available Not Available 16 Page 3

City of Durham Basic PPO Plan Effective Date: 09/01/2013 18 U4964, 7/11

Blue Options SM Benefit Highlights (PPO) Physician Office Services (See Outpatient Hospital Services for outpatient clinic In-network Out-of-network 1 or hospital-based services.) Office Visit Includes Office Surgery, Consultation, X-rays, Lab and benefit period maximum of 4 office visits for the assessment of obesity in and out of network. Primary Care Provider $25 copayment 70% after deductible Specialist $50 copayment 70% after deductible Preventive Care Routine Examinations, Well-Child Care, Well-Baby Care, Immunizations, Well- Woman Care, colorectal screening, bone mass measurement, newborn hearing screening, routine eye exam and prostate specific antigen tests (PSAs). Primary Care Provider 100% Not Available* Specialist 100% Not Available* Outpatient Clinic 100% Not Available* *Colorectal screening, bone mass measurement, newborn hearing screening, prostate specific antigen tests (PSAs) and certain well woman care like gynecological exams, cervical cancer screening, ovarian cancer screening and screening mammograms are covered Out-of-network. Therapies Short-Term Rehabilitative Therapies (Maximums apply to Home, Office and Outpatient Settings): Physical/Occupational: 30 visits per Benefit Period Speech Therapy: 30 visits per Benefit Period Primary Care $25 copayment 70% after deductible Specialist $50 copayment 70% after deductible Urgent Care Centers and Emergency Room Urgent Care Centers $25 copayment $25 copayment Emergency Room Visit (Inpatient Hospital benefits apply if admitted. If held for $300 copayment $300 copayment Observation, Outpatient benefits apply. See Inpatient and Outpatient Hospital Services ) Ambulatory Surgical Center 80% after deductible 70% after deductible Inpatient and Outpatient Hospital Services Hospital and Hospital Based Services 80% after deductible 70% after deductible Outpatient Clinic Services 80% after deductible 70% after deductible Professional Services 80% after deductible 70% after deductible Hospital and Professional Outpatient Labs and Mammograms with surgery or other services 80% after deductible 70% after deductible Outpatient Labs and Mammograms without surgery or other services 100% 70% after deductible Outpatient X-rays, ultrasounds, and other diagnostic tests, such as 80% after deductible 70% after deductible EEG s and EKG s CT scans, MRI s, MRA s and PET scans in any location, including 80% after deductible 70% after deductible physician s office Other Services Skilled Nursing Facility (60 days per Benefit Period) 80% after deductible 70% after deductible Home Health Care, Ambulance, Durable Medical Equipment and Hospice 80% after deductible 70% after deductible Maternity Maternity Delivery includes Prenatal and Post-delivery care Hospital Services (Delivery) 80% after deductible 70% after deductible Professional Services (Delivery) 80% after deductible 70% after deductible Transplants Hospital Services 80% after deductible 70% after deductible Professional Services 80% after deductible 70% after deductible 19 Page 2

Blue Options SM Benefit Highlights (PPO) Infertility Services Up to $5,000 Primary Care Provider $25 copayment 70% after deductible Specialist $50 copayment 70% after deductible Hospital Services 80% after deductible 70% after deductible Inpatient and Outpatient Professional Services 80% after deductible 70% after deductible Vision (Routine Eye Exam) 100% Not Available Lifetime Maximum, Deductibles & Coinsurance Maximums In-network Out-of-network 1 The following Deductibles and Coinsurance Maximums apply to the services on the previous page and Mental Health and Substance Abuse services below: Lifetime Benefit Maximum Unlimited Unlimited Deductibles Individual (per Benefit Period) $1,500 $3,000 Family (per Benefit Period) $3,000 $6,000 Coinsurance Maximum Individual (per Benefit Period) $3,000 $6,000 Family (per Benefit Period) $6,000 $9,000 Mental Health and Substance Abuse Services *Inpatient/Outpatient Certification is required. Call Magellan Behavioral Health at 1-800-359-2422. Mental Health Services Office Visits $50 copayment 70% after deductible Inpatient Hospital 80% after deductible 70% after deductible Outpatient Hospital 80% after deductible 70% after deductible Substance Abuse Services Office Visit $50 copayment 70% after deductible Inpatient Hospital Outpatient Hospital 80% after deductible 80% after deductible 70% after deductible 70% after deductible Prescription Drugs Up to 31 day supply. 32-90 day supply is two copayments. Infertility Drugs up to $5000. MAC B Pricing, Brand Penalty. Tier 1 (Generic) $0 copayment Copayment + charge over In-network allowed amount Tier 2 (Preferred Brand) $35 copayment Copayment + charge over In-network allowed amount Tier 3 (Brand) $50 copayment Copayment + charge over In-network allowed amount Diabetic Supplies 100% 100% Spacers and Peak Flow Meters 100% 100% Medco Mail Order - 90 day supply: Tier 1 (Generic) Tier 2 (Preferred Brand) Tier 3 (Brand) Diabetic Supplies Spacers and Peak Flow Meters $0 copayment $70 Copayment $100 copayment 100% 100% Not Available Not Available Not Available Not Available Not Available 20 Page 3

Dental Blue Benefit Highlights - Traditional Plan Services Benefits Diagnostic & Preventive Care 100% Routine Oral Exams, Cleanings, X-rays, Fluoride Application, Sealants Basic Care Routine Fillings, Oral Surgery, Simple Extractions, Endodontics, Space Maintainers Major Care Crowns, Periodontics, Inlays and Onlays, Dentures, Fixed Bridges 80% after Dental deductible 50% after Dental deductible Benefit Period Deductible (Applies to Basic and Major Care) Individual $50 Family $150 Combined Benefit Period Maximum $3,000 (Includes Diagnostic and Preventive, Basic and Major Restorative Care) Orthodontic Care 50% Lifetime Orthodontic Maximum $1,500 Services offered twice per Benefit Period: exams, cleanings, X-rays Services offered once every 5 years: crowns, bridges, dentures, inlays, onlays ADDITIONAL INFORMATION ABOUT DENTAL BLUE FROM BCBSNC Benefit Period The period of time, usually 12 months as stated in the group contract, during which charges for covered services provided to a member must be incurred in order to be eligible for payment by BCBSNC. A charge shall be considered incurred on the date the service or supply was provided to a member. Waiting Period Waiting periods may apply to some services. A waiting period is the amount of time that a member must be enrolled in this dental benefit plan prior to receiving specific services. What is Not Covered? The following are summaries of some of the coverage restrictions. A full explanation and listing of restrictions will be found in your benefit booklet. Your dental benefit plan does not cover services, supplies, drugs, or charges that are: Not medically necessary Hospitalization for any dental procedure Dental procedures solely for cosmetic or aesthetic reasons Dental procedures not directly associated with dental disease Procedures that are considered to be experimental Drugs or medications obtainable with or without a prescription unless they are dispensed and utilized in the dental office during the patient visit Drugs or medications obtainable with or without a prescription unless they are dispensed and utilized in the dental office during the patient visit Services related to temporomandibular joint (TMJ) Expenses for dental procedures begun prior to the member s eligibility with BCBSNC Clinical situations that can be effectively treated by a more cost effective, clinically acceptable alternative procedure will be assigned a benefit based on the less costly procedure Dental implants, oral orthotic devices, palatal expanders and orthodontics except as specifically covered by your dental benefit plan The benefit highlights is a summary of dental benefits. This is meant only to be a summary. Final interpretation and a complete listing of benefits and what is not covered are found in and governed by the group contract and benefit booklet. You may preview the benefit booklet by requesting a copy of the benefit booklet from BCBSNC Customer Services., SM Registration and Service marks of the Blue Cross and Blue Shield Association An Independent licensee of the Blue Cross and Blue Shield Association Billing arrangement: ee, ee+1, ee+2 or more CITY OF DURHAM Effective Date: 09/2013 22

Call ComPsych GuidanceResources anytime for confidential assistance. Call: 855.271.6932 TDD: 800.697.0353 Go online: guidanceresources.com Your company Web ID: durhameap Personal issues, planning for life events or simply managing daily life can affect your work, health and family. ComPsych GuidanceResources provides support, resources and information for personal and work-life issues. GuidanceResources is company-sponsored, confidential and provided at no charge to you and your dependents. This flyer explains how GuidanceResources can help you and your family deal with everyday challenges. Confidential Counseling Someone to talk to. This no-cost counseling service helps you address stress, relationship and other personal issues you and your family may face. It is staffed by GuidanceConsultants SM highly trained master s and doctoral level clinicians who will listen to your concerns and quickly refer you to in-person counseling and other resources for: Stress, anxiety and depression Job pressures Relationship/marital conflicts Grief and loss Problems with children Substance abuse GuidanceResources Online Knowledge at your fingertips. GuidanceResources Online is your one stop for expert information on the issues that matter most to you...relationships, work, school, children, wellness, legal, financial, free time and more. Timely articles, HelpSheets SM, tutorials, streaming videos and self-assessments Ask the Expert personal responses to your questions Child care, elder care, attorney and financial planner searches Just call or click to access your services. Your ComPsych GuidanceResources Program CALL ANYTIME Call: 855.271.6932 TDD: 800.697.0353 Online: guidanceresources.com Your company Web ID: durhameap Copyright 2011 ComPsych Corporation. All rights reserved. Copyright 2011 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. To view the ComPsych HIPAA privacy notice, please go to www.guidanceresources.com/privacy. 24

GuidanceResources Guide to Using GuidanceResources Online First-time users, follow these simple instructions and start exploring the resources offered to you on GuidanceResources Online. 1. Go to guidanceresources.com to reach the website. 2. Once on the guidanceresources.com home page, click the blue link at the bottom right of the page that states I am a first-time user. 3. You will then be asked to enter your Company/Organization Web ID. Your Company/Organization Web ID: You will then be asked to enter a User Name and Password. Both can be anything you would like them to be but should be something you will remember. The User Name (often your name) must be at least six characters long and should have no spaces (for example: joesmith). The Security Question is meant to prompt you if you forget your password. You must select the button verifying that you are at least 13 years of age, as required by federal law. Make sure that you complete all fields that have red asterisks, as these are required fields. When you ve finished, click the Submit button at the bottom of the page. 4. On the next page, you will be asked to provide some demographic information. All of the fields are optional. Be sure to read the Terms of Use and click inside the check box to indicate your agreement to those terms. When you ve finished, click the Submit button at the bottom of the page. 5. You should now be on the website. durhameap For Future Log-ins You will NOT have to enter all of the demographic information again. You will only need to remember your User Name and Password. When you get to step 2 above, instead of clicking on the first-time user link, go to the Login section and enter your User Name and Password and click the login button. This will take you directly to GuidanceResources Online. If you have any problems registering or logging into GuidanceResources Online, e-mail Member Services at memberservices@compsych.com. Copyright 2012 ComPsych Corporation. All rights reserved. 25

Term Life Insurance and AD&D Flex Coverage Highlights City of Durham Policy # 95540-001 Please read carefully the following description of your Unum Term Life and AD&D insurance plan. Your Plan Eligibility Coverage Amounts All full-time and part-time benefit eligible employees as determined by the City of Durham working a minimum of 17.5 hours per week, and their eligible spouses and children (up to age 19, or to 25 if they are full-time students). Employee: Your employer is paying for a base Life and AD&D plan of 1 times annual earnings to a maximum of $250,000. You may purchase additional Life and AD&D coverage equal to: a flat $5,000; 1 times your annual earnings; or 2 times your annual earnings. Overall Life maximum is $500,000 (base and additional combined). Spouse Life (No AD&D): $5,000 Child Life (No AD&D): Live birth to 6 months: $1,000; 6 months to 19 years (25 if a full-time student): $5,000 Note: You must be insured under the plan in order to elect coverage for your dependents. AD&D coverage provides additional benefits for an accidental death, and for an accidental dismemberment, as defined in the schedule of benefits (contact your Plan Administrator for additional details). AD&D Benefit Schedule: The full benefit amount is paid for loss of: Life Both hands or both feet or sight of both eyes One hand and one foot One hand and the sight of one eye One foot and the sight of one eye Speech and hearing Other losses may be covered as well. Please see your Plan Administrator. Coverage amount(s) will reduce according to the following schedule: Age: Insurance Amount Reduces to: 70 65% of original amount 75 50% of original amount Coverage may not be increased after a reduction. ADR1879-2001 26

Term Life Insurance and AD&D Flex Coverage Highlights (Continued) Guarantee Issue Current Employees: If you and your eligible dependents enroll on or before 09/01/2013, you may increase or decrease your Life insurance coverage by any number of levels. Evidence of insurability will be required if you increase your coverage by any level or increase your dependents coverage by more than one level. If your eligible dependents are not currently enrolled in the plan, you may apply for coverage on or before 09/01/2013 and will be required to furnish evidence of insurability for any amount of coverage. AD&D coverage does not require evidence of insurability. Employees hired on or after 09/01/2013: If you and your eligible dependents enroll within 31 days of your eligibility date, you may apply for any amount of Life insurance coverage up to the lesser of 3 times your annual earnings or $350,000 for yourself (base and additional combined) and any amount of coverage up to $5,000 for your spouse without evidence of insurability. If you apply for coverage for yourself or your dependents more than 31 days after your eligibility date, or choose coverage above these amounts, you will be required to provide evidence of insurability and be approved in order to qualify for coverage. AD&D coverage does not require evidence of insurability. Please see your Plan Administrator for your eligibility date. Rates Life Rates* per $1,000 of Coverage Age Rate Age Rate < 25 $0.06 45-49 $0.29 25-29 $0.06 50 54 $0.47 30-34 $0.08 55 59 $0.74 35-39 $0.11 60 64 $1.15 40-44 $0.18 65 69 $1.64 *Life rates are based on five-year increments. Rates increase as you age. Employee Voluntary AD&D Rate: $0.035 per $1,000 of Coverage Dependent Life Rate: $1.98 per Family Unit Additional Benefits Survivor Financial Counseling Services Portability/ Conversion This personalized financial counseling service provides expert, objective financial counseling to survivors and terminally ill employees at no cost to them. This service is also extended to employees upon the death or terminal illness of their covered spouse. The financial counselors, all highly trained attorneys, help develop strategies needed to protect resources, preserve current lifestyles, and build future security. At no time will the counselor offer or sell any product or service. If you retire, reduce your hours or leave your employer, you can take this coverage with you according to the terms outlined in the contract. You may also have the option to convert your Term life coverage to an individual life insurance policy. Accelerated Benefit Waiver of Premium If you become terminally ill and are not expected to live beyond a certain time period as stated in your certificate booklet, you may request up to 50% of your life insurance amount up to $750,000, without fees or present value adjustments. A doctor must certify your condition in order to qualify for this benefit. Upon your death, the remaining benefit will be paid to your designated beneficiary(ies). This feature also applies to your covered dependents. If you become disabled (as defined by your plan) and are no longer able to work, your premium payments will be waived during the period of disability. Retained Asset Account Benefits of $10,000 or more are paid through the Unum Retained Asset Account. This interest bearing account will be established in the beneficiary's name. He or she can then write a check for the full amount or for $250 or more, as needed. 27

Term Life Insurance and AD&D Flex Coverage Highlights (Continued) Additional AD&D Benefits Education Benefit: If you or your insured spouse die within 365 days of an accident, an additional benefit is paid to your dependent child(ren). Your child(ren) must be a full-time student beyond grade 12. (Not available in Illinois or New York.) Seat Belt/Air Bag Benefit: If you or your insured dependent(s) die in a car accident and are wearing a properly fastened seat belt and/or are in a seat with an air bag, an amount will be paid in addition to the AD&D benefit. Limitations/Exclusions/ Termination of Coverage Suicide Exclusion Life benefits for additional life coverage will not be paid for deaths caused by suicide in the first twenty-four months after your effective date of coverage. No increased or additional benefits will be payable for deaths caused by suicide occurring within 24 months after the day such increased or additional insurance is effective. AD&D Benefit Exclusions AD&D benefits will not be paid for losses caused by, contributed to by, or resulting from: Disease of the body or diagnostic, medical or surgical treatment or mental disorder as set forth in the latest edition of the Diagnostic and Statistical Manual of Mental Disorders; Suicide, self-destruction while sane, intentionally self-inflicted injury while sane, or self-inflicted injury while insane; War, declared or undeclared, or any act of war; Active participation in a riot; Attempt to commit or commission of a crime; The voluntary use of any prescription or non-prescription drug, poison, fume, or other chemical substance unless used according to the prescription or direction of your or your dependent s doctor. This exclusion does not apply to you or your dependent if the chemical substance is ethanol; Intoxication. ( Intoxicated means that the individual s blood alcohol level equals or exceeds the legal limit for operating a motor vehicle in the state or jurisdiction where the accident occurred.) Termination of Coverage Your coverage and your dependents coverage under the Summary of Benefits ends on the earliest of: The date the policy or plan is cancelled; The date you no longer are in an eligible group; The date your eligible group is no longer covered; The last day of the period for which you made any required contributions; The last day you are in active employment unless continued due to a covered layoff or leave of absence or due to an injury or sickness, as described in the certificate of coverage; For dependent s coverage, the date of your death. In addition, coverage for any one dependent will end on the earliest of: The date your coverage under a plan ends; The date your dependent ceases to be an eligible dependent; For a spouse, the date of divorce or annulment. Unum will provide coverage for a payable claim which occurs while you and your dependents are covered under the policy or plan. 28

Term Life Insurance and AD&D Flex Coverage Highlights (Continued) Next Steps How to Apply Current employees: To apply for coverage, complete your enrollment form by 08/15/2013. For employees hired on or after 09/01/2013: To apply for coverage, complete your enrollment form within 31 days of your eligibility date. All employees: If you apply for coverage after your effective date, or if you choose coverage over the guarantee issue amount, you will need to complete a medical questionnaire which you can get from your Plan Administrator. You may also be required to take certain medical tests at Unum s expense. Effective Date of Coverage Delayed Effective Date of Coverage Changes to Coverage Your coverage will become effective on 09/01/2013. For employees who become eligible after this date, please see your Plan Administrator for your effective date. Employee: Insurance coverage will be delayed if you are not in active employment because of an injury, sickness, temporary layoff, or leave of absence on the date that insurance would otherwise become effective. Dependent: Insurance coverage will be delayed if that dependent is totally disabled on the date that insurance would otherwise be effective. Exception: infants are insured from live birth. Totally disabled means that, as a result of an injury, a sickness or a disorder, your dependent is confined in a hospital or similar institution; is unable to perform two or more activities of daily living (ADLs) because of a physical or mental incapacity resulting from an injury or a sickness; is cognitively impaired; or has a life threatening condition. At each annual enrollment period or within 31 days of a change in status, you will be given the opportunity to change your coverage. You will be required to provide evidence of insurability and be approved to increase your coverage amounts. Your eligible dependents will be required to provide evidence of insurability and be approved to increase their coverage amounts by more than one level. Questions If you should have any questions about your coverage or how to enroll, please contact your Plan Administrator. This plan highlight is a summary provided to help you understand your insurance coverage from Unum. Some provisions may vary or not be available in all states. Please refer to your certificate booklet for your complete plan description. If the terms of this plan highlight summary or your certificate differ from your policy, the policy will govern. For complete details of coverage, please refer to policy form number C.FP1, et al. Survivor financial counseling services are provided exclusively by The Ayco Company, L.P. The services are subject to availability and may be withdrawn by Unum without prior notice Underwritten by: Unum Life Insurance Company of America, 2211 Congress Street, Portland, Maine 04122, www.unum.com Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. 2007 Unum Group. All rights reserved. 29

Long Term Disability Income Protection Insurance Plan Highlights City of Durham Policy # 588382-001 Please read carefully the following description of your Unum Long Term Disability Income Protection insurance plan. Your Plan Eligibility Guarantee Issue You are eligible for LTD coverage if you are a full-time or part-time benefit eligible employee as determined by the City of Durham in active employment in the United States with the employer. Current Employees: If you enroll on or before the enrollment deadline of 08/15/2013, coverage is available to you. After the enrollment period, you will need to wait until the next year s annual enrollment period to apply for coverage. Employees hired on or after 09/01/2013: You may apply for coverage within 60 days after your eligibility date. After that 60 days of your initial eligibility, you will need to wait until the next year s annual enrollment period to apply for coverage. Please see your Plan Administrator for your eligibility date. Benefit Amount Monthly LTD Benefit: 60% of your monthly earnings To a maximum of $6,000 The total benefit payable to you on a monthly basis (including all benefits provided under this plan) will not exceed 100% of your monthly earnings, unless the excess amount is payable as a Cost of Living Adjustment. However, if you are participating in Unum s Rehabilitation and Return to Work Assistance program, the total benefit payable to you on a monthly basis (including all benefits provided under this plan) will not exceed 110% of your monthly earnings (unless the excess amount is payable as a Cost of Living Adjustment). Your disability benefit may be reduced by deductible sources of income and any earnings you have while disabled. Deductible sources of income include: 1. The amount that you receive or are entitled to receive under: - a workers' compensation law. - an occupational disease law. - any other act or law with similar intent. 2. The amount that you receive or are entitled to receive as disability income payments under any: - state compulsory benefit act or law. - other group insurance plan. - governmental retirement system as a result of your job with your Employer. ADR1877-2001 30

3. The amount that you, your spouse and your children receive or are entitled to receive as disability payments because of your disability under: - the United States Social Security Act. - the Canada Pension Plan. - the Quebec Pension Plan. - any similar plan or act. 4. The amount that you receive as retirement payments or the amount your spouse and children receive as retirement payments because you are receiving retirement payments under: - the United States Social Security Act. - the Canada Pension Plan. - the Quebec Pension Plan. - any similar plan or act. 5. The amount that you: - receive as disability payments under your Employer's retirement plan. - voluntarily elect to receive as retirement payments under your Employer's retirement plan. - receive as retirement payments when you reach the later of age 62 or normal retirement age, as defined in your Employer's retirement plan. Disability payments under a retirement plan will be those benefits which are paid due to disability and do not reduce the retirement benefit which would have been paid if the disability had not occurred. Retirement payments will be those benefits which are based on your Employer's contribution to the retirement plan. Disability benefits which reduce the retirement benefit under the plan will also be considered as a retirement benefit. Regardless of how the retirement funds from the retirement plan are distributed, Unum will consider your and your Employer's contributions to be distributed simultaneously throughout your lifetime. Amounts received do not include amounts rolled over or transferred to any eligible retirement plan. Unum will use the definition of eligible retirement plan as defined in Section 402 of the Internal Revenue Code including any future amendments which affect the definition. 6. The amount that you receive under Title 46, United States Code Section 688 (The Jones Act). With the exception of retirement payments, Unum will only subtract deductible sources of income which are payable as a result of the same disability. We will not reduce your payment by your Social Security retirement income if your disability begins after age 65 and you were already receiving Social Security retirement payments. Definition of Disability You are disabled when Unum determines that: you are limited from performing the material and substantial duties of your regular occupation; and you have a 20% or more loss in indexed monthly earnings due to the same sickness or injury. 31

and during the elimination period you are unable to perform any of the material and substantial duties of your regular occupation. After benefits have been paid for 24 months, you are disabled when Unum determines that due to the same sickness or injury, you are unable to perform the duties of any gainful occupation for which you are reasonably fitted by education, training or experience. You must be under the regular care of a physician in order to be considered disabled. Partial Disability Elimination Period If you have met this definition of disability and have satisfied the elimination period, you can return to work on a part-time basis and still receive a partial benefit, provided your earnings are at least 20% less per month than your pre-disability earnings due to that same injury or illness. The Elimination Period is the length of time of continuous disability which must be satisfied before you are eligible to receive benefits. LTD benefits would begin after 90 days of disability, if you are disabled, as described in the definition above. Benefit Duration Rates Gainful Occupation Option B ADEA I to Age 65: Your duration of benefits is based on your age when the disability occurs. Your LTD benefits are payable for the period during which you continue to meet the definition of disability. If your disability occurs before age 60, benefits will be payable until age 65. If your disability occurs at or after age 60, benefits would be paid according to a benefit duration schedule. Option C 2 Year ADEA (2 Year Benefit): Your duration of benefits is based on your age when the disability occurs. Your LTD benefits are payable for the period during which you continue to meet the definition of disability for 2 years. If your disability occurs at or after age 68, benefits would be paid for a reduced period of time. Employee Elects Benefit Duration Benefit Duration Option B - ADEA I Option C - 2 Year ADEA Employee Age Band Rates per $100 CP Rates per $100 CP 15-24 $0.26 $0.08 25-29 $0.27 $0.09 30-34 $0.34 $0.10 35-39 $0.43 $0.14 40-44 $0.58 $0.18 45-49 $0.81 $0.26 50-54 $1.07 $0.34 55-59 $1.42 $0.44 60-64 $2.40 $0.75 65-69 $2.40 $0.75 70+ $2.40 $0.75 Gainful occupation means an occupation that is or can be expected to provide you with an income within 12 months of your return to work that exceeds: 80% of your indexed monthly earnings, if you are working 60% of your indexed monthly earnings, if you are not working 32

Federal Income Taxation You pay 100% of the premium post-tax dollars, thus your benefits will not be taxed. Additional Benefits Rehabilitation and Return to Work Assistance Dependent Care Expense Benefit Waiver of Premium Work/Life Balance Employee Assistance Program Unum has a vocational Rehabilitation and Return to Work Assistance program available to assist you in returning to work. We will make the final determination of your eligibility for participation in the program, and will provide you with a written Rehabilitation and Return to Work Assistance plan developed specifically for you. This program may include, but is not limited to the following benefits: coordination with your Employer to assist your return to work; adaptive equipment or job accommodations to allow you to work; vocational evaluation to determine how your disability may impact your employment options; job placement services; resume preparation; job seeking skills training; or education and retraining expenses for a new occupation. If you are participating in a Rehabilitation and Return to Work Assistance program, we will also pay an additional disability benefit of 10% of your gross disability payment to a maximum of $1,000 per month. In addition, we will make monthly payments to you for 3 months following the date your disability ends, if we determine you are no longer disabled while: you are participating in a Rehabilitation and Return to Work Assistance program; and you are not able to find employment. If you are disabled and participating in Unum s Rehabilitation and Return to Work Assistance program, Unum will pay a Dependent Care Expense Benefit when you are disabled and you: are incurring expenses to provide care for a child under the age of 15; and/or start incurring expenses to provide care for a child age 15 or older or a family member who needs personal care assistance. The payment will be $350 per month per dependent, to a maximum of $1,000 per month for all dependent care expenses combined. You will not be required to pay LTD premiums as long as you are receiving LTD benefits. Work-life balance is a comprehensive resource providing access to professional assistance for a wide range of personal and work-related issues. The service is available to you and your family members twentyfour hours a day, 365 days a year, and provides resources to help employees find solutions to everyday issues such as financing a car or selecting child care, as well as more serious problems such as alcohol or drug addiction, divorce, or relationship problems. Services include: toll-free phone access to master s-level consultants, up to three face-to-face sessions to help with more serious issues; and online resources. There is no additional charge for utilizing the program. Participation is confidential and strictly voluntary, and employees do not have to have filed a disability claim or be receiving benefits to use the program. 33

Worldwide Emergency Travel Assistance Services Survivor Benefit Limitations/Exclusions/ Termination of Coverage Pre-existing Condition Exclusion However, if you become disabled and are receiving benefits, Unum's On Claim Support can provide additional resources including: coaching on how to communicate effectively with medical personnel, conducting consumer research for medical equipment and supplies, assessing emotional needs and locating counseling resources. Whether your travel is for business or pleasure, our worldwide emergency travel assistance program is there to help you when an unexpected emergency occurs. With one phone call anytime of the day or night, you, your spouse and dependent children can get immediate assistance anywhere in the world. Emergency travel assistance is available to you when you travel to any foreign country, including neighboring Canada or Mexico. It is also available anywhere in the United States for those traveling more than 100 miles from home. Your spouse and dependent children do not have to be traveling with you to be eligible. However, spouses traveling on business for their employer are not covered by this program. Unum will pay your eligible survivor a lump sum benefit equal to 3 months of your gross disability payment. This benefit will be paid if, on the date of your death, your disability had continued for 180 or more consecutive days, and you were receiving or were entitled to receive payments under the plan. If you have no eligible survivors, payment will be made to your estate, unless there is none. In this case, no payment will be made. However, we will first apply the survivor benefit to any overpayment which may exist on your claim. You may receive your survivor benefit prior to your death if you have been diagnosed as terminally ill, your life expectancy has been reduced to less than 12 months, and you are receiving monthly payments. If you elect to receive this benefit, no survivor benefit will be payable to your eligible survivor upon your death. You have a pre-existing condition if:. you received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines in the 3 months just prior to your effective date of coverage; and the disability begins in the first 12 months after your effective date of coverage 34

Instances When Benefits Would Not Be Paid Mental and Nervous Benefits would not be paid for disabilities caused by, contributed to by, or resulting from: intentionally self-inflicted injuries; active participation in a riot; war, declared or undeclared, or any act of war; conviction of a crime; loss of professional license, occupational license or certification; pre-existing conditions (see definition). Unum will not pay a benefit for any period of disability during which you are incarcerated. The lifetime cumulative maximum benefit period for all disabilities due to mental illness and disabilities based primarily on self-reported symptoms is 12 months. Only 12 months of benefits will be paid for any combination of such disabilities even if the disabilities are not continuous and/or are not related. Payments would continue beyond 12 months only if you are confined to a hospital or institution as a result of the disability. Termination of Coverage Your coverage under the policy ends on the earliest of the following: The date the policy or plan is cancelled; The date you no longer are in an eligible group; The date your eligible group is no longer covered; The last day of the period for which you made any required contributions; The last day you are in active employment except as provided under the covered layoff or leave of absence provision. Unum will provide coverage for a payable claim which occurs while you are covered under the policy or plan. Next Steps How to Apply Current employees: To apply for coverage, complete your enrollment form by 08/15/2013. After the enrollment period, you will need to wait until the next year s annual enrollment period to apply for coverage. For employees hired on or after 09/01/2013: To apply for coverage, complete your enrollment form within 60 days of your eligibility date. After that 60 days of your initial eligibility, you will need to wait until the next year s annual enrollment period to apply for coverage. Effective Date of Coverage Delayed Effective Date of Coverage Your effective date of coverage is 09/01/2013. For employees who become eligible after this date, please see your Plan Administrator for your effective date. Insurance will be delayed if you are not in active employment because of an injury, sickness, temporary layoff, or leave of absence on the date that insurance would otherwise become effective. 35

Questions If you should have any questions about your coverage or how to enroll, please contact your Plan Administrator. This plan highlight is a summary provided to help you understand your insurance coverage from Unum. Some provisions may vary or not be available in all states. Please refer to your certificate booklet for your complete plan description. If the terms of this plan highlight summary or your certificate differ from your policy, the policy will govern. For complete details of coverage, please refer to policy form number C.FP-1, et al. All worldwide emergency travel assistance must be arranged by Assist America, which pays for all services it provides. Medical expenses such as prescriptions or physician, lab or medical facility fees are paid by the employee or the employee s health insurance. Work-life balance employee assistance program services are provided by Ceridian Corporation. Worldwide emergency travel assistance services are provided by Assist America, Inc. Services are available with selected Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. The services are not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details. Underwritten by: Unum Life Insurance Company of America 2211 Congress Street, Portland, Maine 04122, www.unum.com 2007 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. 36

Select Short Term Income Protection Plan Insurance Highlights City of Durham Policy # 206909 Please read carefully the following description of your Unum Select Income Protection Plan insurance. Your Plan Eligibility Guarantee Issue Benefit Amount All full-time and part-time benefit eligible employees as determined by the City of Durham working a minimum of 17.5 hours per week, and their eligible spouses and children (up to age 19, or to 25 if they are full-time students). Current Employees: If you enroll on or before the enrollment deadline of 08/15/2013, coverage is available to you without answering any medical questions or providing evidence of insurability. After the initial enrollment period, you can apply only during an annual enrollment period. (After the initial enrollment period, your coverage will be medically underwritten, and your coverage will not begin until Unum determines that you qualify based on information you provide regarding your health history). Employees hired on or after 09/01/2013: You may apply for coverage without answering any medical questions or providing evidence of insurability if you apply for coverage within 31 days after your eligibility date. If you apply more than 31 days after your eligibility date, you can apply only during an annual enrollment period, your coverage will be medically underwritten, and your coverage will not begin until Unum determines that you qualify based on information you provide regarding your health history. Please see your Plan Administrator for your eligibility date. You may purchase a weekly benefit in $100 units, starting at a minimum of $100, up to 60% of your weekly earnings rounded to the nearest $100, but not to exceed a weekly maximum benefit of $2,500. Please see your Plan Administrator for the definition of weekly earnings. Elimination Period The Elimination Period is the length of time of continuous disability, due to injury or sickness, which must be satisfied before you are eligible to receive benefits. You may choose an Elimination Period (injury/sickness) of 14/14 or 30/30 days. Benefit Duration If you meet the definition of disability you may receive a benefit for 13 weeks. EB-999 37

Rates Employee elects Elimination Period (EP) Option B Option C Injury EP (Days) Sickness EP (Days) Benefit Period (Weeks) 14 14 13 30 30 13 Employee Age Band Rates per $10 Benefit Rates per $10 Benefit 15-24 $0.589 $0.330 25-29 $0.630 $0.377 30-34 $0.573 $0.353 35-39 $0.552 $0.349 40-44 $0.588 $0.382 45-49 $0.640 $0.452 50-54 $0.764 $0.584 55-59 $0.991 $0.716 60-64 $1.197 $0.829 65-69 $1.362 $0.848 70+ $1.362 $0.848 Federal Income Taxation Additional Benefits Rehabilitation and Return to Work Assistance The taxability of benefits depends on how premium was taxed during the plan year in which you become disabled. If you paid 100% of the premium for the plan year with post-tax dollars, your benefits will not be taxed. If premium for the plan year is paid with pre-tax dollars, your benefits will be taxed. If premium for the plan year is paid partially with post-tax dollars and partially with pre-tax dollars, or if you and your Employer share in the cost, then a portion of your benefits will be taxed. Unum has a vocational Rehabilitation and Return to Work Assistance program available to assist you in returning to work. We will make the final determination of your eligibility for participation in the program, and will provide you with a written Rehabilitation and Return to Work Assistance plan developed specifically for you. This program may include, but is not limited to the following benefits: coordination with your Employer to assist your return to work; adaptive equipment or job accommodations to allow you to work; vocational evaluation to determine how your disability may impact your employment options; job placement services; resume preparation; job seeking skills training; or education and retraining expenses for a new occupation. If you are participating in a Rehabilitation and Return to Work Assistance program, we will also pay an additional disability benefit of 10% of your gross disability payment to a maximum of $250 per week. In addition, we will make weekly payments to you for 3 weeks following the date your disability ends, if we determine you are no longer disabled while: you are participating in a Rehabilitation and Return to Work Assistance program; and you are not able to find employment. 38

Other Important Provisions Pre-existing Condition Exclusion Definition of Disability Benefits will not be paid for disabilities caused by, contributed to by, or resulting from a pre-existing condition. You have a pre-existing condition if: you received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines in the 3 months just prior to your effective date of coverage; andthe disability begins in the first 12 months after your effective date of coverage. You are disabled when Unum determines that due to your sickness or injury: you are unable to perform the material and substantial duties of your regular occupation; and you are not working in any occupation. You must be under the regular care of a physician in order to be considered disabled. Benefit Integration Instances When Benefits Would Not Be Paid Your disability benefit will be reduced by deductible sources of income and any earnings you have while disabled. Deductible sources of income will include such items as disability income or other amounts you receive or are entitled to receive under: state compulsory benefit laws; automobile liability insurance; legal judgments and settlements; certain retirement plans; salary continuation or sick leave plans; other group or association disability programs or insurance; and amounts you or your family receive or are entitled to receive from Social Security or similar governmental programs. Regardless of deductible sources of income, an employee who qualifies for disability benefits is guaranteed to receive a minimum weekly benefit of $25. Benefits will not be paid for disabilities caused by, contributed to by, or resulting from: war, declared or undeclared, or any act of war; active participation in a riot; intentionally self-inflicting injuries; loss of a professional license, occupational license or certification; commission of a crime for which you have been convicted; any period of disability during which you are incarcerated; pre-existing conditions (see definition). an occupational injury or sickness (this will not apply to a partner or sole proprietor who cannot be covered by law under Workers' Compensation or any similar law); 39

Termination of Coverage Next Steps How to Apply/ Effective Date of Coverage Delayed Effective Date of Coverage Questions Your coverage under the policy ends on the earliest of the following: The date the policy or plan is cancelled; The date you no longer are in an eligible group; The date your eligible group is no longer covered; The last day of the period for which you made any required contributions; The later of the last day you are in active employment except as provided under the covered layoff or leave of absence provision. Unum will provide coverage for a payable claim which occurs while you are covered under the policy or plan. Current employees: To apply for coverage, complete your enrollment form by 08/15/2013. Your effective date of coverage is 09/01/2013. For employees hired on or after 09/01/2013: To apply for coverage, complete your enrollment form within 31 days of your eligibility date. Please see your Plan Administrator for your effective date. If you do not enroll during the initial enrollment period, you may apply only during an annual enrollment. Your coverage will be medically underwritten, and your coverage will not take effect until Unum determines that you qualify based on information you provide regarding your health history. If you are absent from work due to injury, sickness, temporary layoff or leave of absence, your coverage will not take effect until you return to active employment. Please contact your Plan Administrator after you return to active employment for when your coverage will begin. If you should have any questions about your coverage or how to enroll, please contact your Plan Administrator. This plan highlight is a summary provided to help you understand your insurance coverage from Unum. Some provisions may vary or not be available in all states. Please refer to your certificate booklet for your complete plan description. If the terms of this plan highlight summary or your certificate differ from your policy, the policy will govern. For complete details of coverage, please refer to policy form number C.FP-1, et al. Underwritten by: Unum Life Insurance Company of America 2211 Congress Street, Portland, Maine 04122, www.unum.com 2007 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. 40

Unum Voluntary Short Term Disability Monthly Cost Option B: 14 Day Elimination Period, 13 Week Duration 15-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70+ $100 $5.89 $6.30 $5.73 $5.52 $5.88 $6.40 $7.64 $9.91 $11.97 $13.62 $13.62 $200 $11.78 $12.60 $11.46 $11.04 $11.76 $12.80 $15.28 $19.82 $23.94 $27.24 $27.24 $300 $17.67 $18.90 $17.19 $16.56 $17.64 $19.20 $22.92 $29.73 $35.91 $40.86 $40.86 $400 $23.56 $25.20 $22.92 $22.08 $23.52 $25.60 $30.56 $39.64 $47.88 $54.48 $54.48 $500 $29.45 $31.50 $28.65 $27.60 $29.40 $32.00 $38.20 $49.55 $59.85 $68.10 $68.10 $600 $35.34 $37.80 $34.38 $33.12 $35.28 $38.40 $45.84 $59.46 $71.82 $81.72 $81.72 $700 $41.23 $44.10 $40.11 $38.64 $41.16 $44.80 $53.48 $69.37 $83.79 $95.34 $95.34 $800 $47.12 $50.40 $45.84 $44.16 $47.04 $51.20 $61.12 $79.28 $95.76 $108.96 $108.96 $900 $53.01 $56.70 $51.57 $49.68 $52.92 $57.60 $68.76 $89.19 $107.73 $122.58 $122.58 $1,000 $58.90 $63.00 $57.30 $55.20 $58.80 $64.00 $76.40 $99.10 $119.70 $136.20 $136.20 $1,100 $64.79 $69.30 $63.03 $60.72 $64.68 $70.40 $84.04 $109.01 $131.67 $149.82 $149.82 $1,200 $70.68 $75.60 $68.76 $66.24 $70.56 $76.80 $91.68 $118.92 $143.64 $163.44 $163.44 $1,300 $76.57 $81.90 $74.49 $71.76 $76.44 $83.20 $99.32 $128.83 $155.61 $177.06 $177.06 $1,400 $82.46 $88.20 $80.22 $77.28 $82.32 $89.60 $106.96 $138.74 $167.58 $190.68 $190.68 $1,500 $88.35 $94.50 $85.95 $82.80 $88.20 $96.00 $114.60 $148.65 $179.55 $204.30 $204.30 $1,600 $94.24 $100.80 $91.68 $88.32 $94.08 $102.40 $122.24 $158.56 $191.52 $217.92 $217.92 $1,700 $100.13 $107.10 $97.41 $93.84 $99.96 $108.80 $129.88 $168.47 $203.49 $231.54 $231.54 $1,800 $106.02 $113.40 $103.14 $99.36 $105.84 $115.20 $137.52 $178.38 $215.46 $245.16 $245.16 $1,900 $111.91 $119.70 $108.87 $104.88 $111.72 $121.60 $145.16 $188.29 $227.43 $258.78 $258.78 $2,000 $117.80 $126.00 $114.60 $110.40 $117.60 $128.00 $152.80 $198.20 $239.40 $272.40 $272.40 $2,100 $123.69 $132.30 $120.33 $115.92 $123.48 $134.40 $160.44 $208.11 $251.37 $286.02 $286.02 $2,200 $129.58 $138.60 $126.06 $121.44 $129.36 $140.80 $168.08 $218.02 $263.34 $299.64 $299.64 $2,300 $135.47 $144.90 $131.79 $126.96 $135.24 $147.20 $175.72 $227.93 $275.31 $313.26 $313.26 $2,400 $141.36 $151.20 $137.52 $132.48 $141.12 $153.60 $183.36 $237.84 $287.28 $326.88 $326.88 $2,500 $147.25 $157.50 $143.25 $138.00 $147.00 $160.00 $191.00 $247.75 $299.25 $340.50 $340.50 Option C: 30 Day Elimination Period, 13 Week Duration 15-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70+ $100 $3.30 $3.77 $3.53 $3.49 $3.82 $4.52 $5.84 $7.16 $8.29 $8.48 $8.48 $200 $6.60 $7.54 $7.06 $6.98 $7.64 $9.04 $11.68 $14.32 $16.58 $16.96 $16.96 $300 $9.90 $11.31 $10.59 $10.47 $11.46 $13.56 $17.52 $21.48 $24.87 $25.44 $25.44 $400 $13.20 $15.08 $14.12 $13.96 $15.28 $18.08 $23.36 $28.64 $33.16 $33.92 $33.92 $500 $16.50 $18.85 $17.65 $17.45 $19.10 $22.60 $29.20 $35.80 $41.45 $42.40 $42.40 $600 $19.80 $22.62 $21.18 $20.94 $22.92 $27.12 $35.04 $42.96 $49.74 $50.88 $50.88 $700 $23.10 $26.39 $24.71 $24.43 $26.74 $31.64 $40.88 $50.12 $58.03 $59.36 $59.36 $800 $26.40 $30.16 $28.24 $27.92 $30.56 $36.16 $46.72 $57.28 $66.32 $67.84 $67.84 $900 $29.70 $33.93 $31.77 $31.41 $34.38 $40.68 $52.56 $64.44 $74.61 $76.32 $76.32 $1,000 $33.00 $37.70 $35.30 $34.90 $38.20 $45.20 $58.40 $71.60 $82.90 $84.80 $84.80 $1,100 $36.30 $41.47 $38.83 $38.39 $42.02 $49.72 $64.24 $78.76 $91.19 $93.28 $93.28 $1,200 $39.60 $45.24 $42.36 $41.88 $45.84 $54.24 $70.08 $85.92 $99.48 $101.76 $101.76 $1,300 $42.90 $49.01 $45.89 $45.37 $49.66 $58.76 $75.92 $93.08 $107.77 $110.24 $110.24 $1,400 $46.20 $52.78 $49.42 $48.86 $53.48 $63.28 $81.76 $100.24 $116.06 $118.72 $118.72 $1,500 $49.50 $56.55 $52.95 $52.35 $57.30 $67.80 $87.60 $107.40 $124.35 $127.20 $127.20 $1,600 $52.80 $60.32 $56.48 $55.84 $61.12 $72.32 $93.44 $114.56 $132.64 $135.68 $135.68 $1,700 $56.10 $64.09 $60.01 $59.33 $64.94 $76.84 $99.28 $121.72 $140.93 $144.16 $144.16 $1,800 $59.40 $67.86 $63.54 $62.82 $68.76 $81.36 $105.12 $128.88 $149.22 $152.64 $152.64 $1,900 $62.70 $71.63 $67.07 $66.31 $72.58 $85.88 $110.96 $136.04 $157.51 $161.12 $161.12 $2,000 $66.00 $75.40 $70.60 $69.80 $76.40 $90.40 $116.80 $143.20 $165.80 $169.60 $169.60 $2,100 $69.30 $79.17 $74.13 $73.29 $80.22 $94.92 $122.64 $150.36 $174.09 $178.08 $178.08 $2,200 $72.60 $82.94 $77.66 $76.78 $84.04 $99.44 $128.48 $157.52 $182.38 $186.56 $186.56 $2,300 $75.90 $86.71 $81.19 $80.27 $87.86 $103.96 $134.32 $164.68 $190.67 $195.04 $195.04 $2,400 $79.20 $90.48 $84.72 $83.76 $91.68 $108.48 $140.16 $171.84 $198.96 $203.52 $203.52 $2,500 $82.50 $94.25 $88.25 $87.25 $95.50 $113.00 $146.00 $179.00 $207.25 $212.00 $212.00 41

Healthcare Reimbursement Arrangement Information for employees 2013-2014 WHATS COVERED UNDER THE HRA? 2013 Medical Plan Inpatient Hospital Outpatient Hospital Diagnostic Testing Durable Medical Equip. Skilled Nursing Up to $250 of your deductible Up to $250 of your deductible Up to $250 of your deductible Up to $250 of your deductible Up to $250 of your deductible HOW TO FILE A CLAIM FOR REIMBURSEMENT FROM A HEALTHCARE REIMBURSEMENT ARRANGEMENT (HRA) Eligibility for the REIMBURSEMENT IS CONTINGENT UPON COMPLETION OF BCBS S HEALTH RISK APPRAISAL. 42

When a qualified medical expense is incurred, please follow the 3 steps below to receive reimbursement. 1. Obtain the Explanation of Benefits (EOB) from Blue Cross Blue Shield. The EOB will be mailed to you from Blue Cross Blue Shield automatically for every service incurred toward your deductible. The EOB breaks down the cost between insurance carrier and the insured. 2. Attach a copy of your completed health risk appraisal from BCBS. NOTE: Durable Medical Equipment claims can be submitted individually per service date or in a combination of multiple service dates but will be paid to a maximum of the $250 deductible. 3. Complete a Laymon Group HRA Reimbursement Request Form. You can obtain one at www.laymongroup.com. *** Be sure that the form has been signed and the total amount being requested for reimbursement has been written in the appropriate space. 4. Mail, fax, or email your Reimbursement Request Form with the EOB (see above) to: Laymon Group 108 Giles Avenue Ste. 102 Wilmington, NC 28403 FAX: (910) 395-2316 EMAIL: hradepartment@laymongroup.com **If you have questions about previous/current plan year HRA s please contact us at the provided information: HRA department at Laymon Group This article is provided by Laymon Group. It is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. Visit us at http://www.laymongroup.com. 43

Benefit and insurance issues important to you - brought to you by the insurance specialists at: Laymon Group. Flexible Spending Accounts Information for Employees 2013-2014 Flexible spending accounts, or FSAs, provide you with an important tax advantage that can help you pay health care and dependent care expenses on a pretax basis. By anticipating your family s health care and dependent care costs for the next plan year, you can lower your taxable income. Essentially, the Internal Revenue Service (IRS) set up FSAs as a means to provide a tax break to employees and their employers. As an employee, you agree to set aside a portion of your pretax salary in an account, and that money is deducted from your paycheck over the course of the year. The amount you contribute to the FSA is not subject to social security (FICA), federal, state or local income taxes effectively adjusting your annual taxable salary. The taxes you pay each paycheck and collectively each plan year can be reduced significantly, depending on your tax bracket. As a result of the personal tax savings you incur, your spendable income will increase. The example that follows illustrates how an FSA can save you money. Bob and Jane s combined gross income is $30,000. They have two children and file their income taxes jointly. Since Bob and Jane expect to spend $2,000 in adult orthodontia and $3,300 for day care in the next plan year, they decide to direct a total of $5,300 into their FSAs. (See table) Without FSA With FSA Gross income $30,000 $30,000 FSA contributions $0 -$5,300 Gross income $30,000 $24,700 Estimated taxes Federal -$2,550* -$1,755* State -$900** -$741** FICA -$2,295 -$1,890 After-tax earnings $24,255 $20,314 Eligible out-of-pocket medical and dependent care expenses -$5,300 $0 44

Remaining spendable income $18,955 $20,314 Spendable income increase -- $1,359 * Assumes standard deductions and four exemptions. ** Varies, assume 3 percent. The example above is for illustrative purposes only. Every situation varies and it is recommended you consult a tax advisor for all tax advice. Flexible Spending Accounts The Health Care Reimbursement FSA The health care reimbursement FSA lets you pay for certain IRS-approved medical care expenses not covered by your insurance plan with pretax dollars. For example, cash that you now spend on deductibles, copayments or other out-of-pocket medical expenses can instead be placed in the health care reimbursement FSA pretax. The annual maximum contribution to the health care reimbursement FSA is $2,500. Eligible Expenses For information about eligible medical expenses, please refer to IRS Publication 502, Medical and Dental Expenses, available at www.irs.gov/publications/p502/index.html or visit www.laymongroup.com and review our eligible expense guide. The Dependent Care FSA The Dependent Care FSA lets you use pretax dollars toward qualified dependent care. The annual maximum amount you may contribute is $5,000 (or $2,500 if married and filing separately) per calendar year. If you elect to contribute to the dependent care FSA, you may be reimbursed for: The cost of child or adult dependent care The cost for an individual to provide care either in or out of your house Nursery schools and preschools (excluding kindergarten) Eligible Expenses In order for dependent care services to be eligible, they must be for the care of a tax-dependent child under age 13 who lives with you, or a tax-dependent parent, spouse or child who lives with you and is incapable of caring for himself or herself. The care must be needed so that you and your spouse (if applicable) can go to work. Care must be given during normal working hours instances such as Saturday night babysitting does not qualify and cannot be provided by another of your dependents. Is the FSA program right for me? Flexible Spending Accounts are beneficial for anyone who has out-of-pocket medical, dental, vision, hearing or dependent care expenses beyond what his or her insurance plan covers. It s easy to determine if an FSA will save you money. At enrollment time, you will need to determine your annual election amount. Estimate the expenses that you know will occur during the year. These include out-of-pocket expenses for yourself and anyone claimed as a dependent on your taxes. If you had $100 or more in recurring or predictable expenses, the accounts can help you stretch your dollars. How do the accounts work? If you decide to enroll in one or both of the accounts, your contributions are taken out of each paycheck before taxes in equal installments throughout the plan year. Your plan year runs 9/1 8/31. These dollars are then placed into your FSA. 45

The health care reimbursement FSA will reimburse you for the full amount of your annual election (less any reimbursement already received), at any time during the plan year, regardless of the amount actually in your account. The dependent care FSA will only reimburse you for the amount that is in your account at the time you make a claim. How Reimbursements Are Made If you have a Health Care Flexible Care Account, you can be reimbursed in a number of ways. The best way is to use your MBI Benefits Card for an instantaneous point-of-sale reimbursement on eligible expenses. If you decide to submit a claim to our office, you will need to complete a Flexible Spending Account Claim Form and submit it with itemized receipt(s) or billing statement(s) from your qualified expenses. You can submit your claim by mail or fax to the Laymon Group, using the information at the bottom of this Guide, or, if your employer allows, you can submit your claim to a place designated by your employer s Human Resource Department. IMPORTANT: Unused Health Care and Dependent care FSA benefits at the end of a plan year must be forfeited. This use-it-or-lose-it rule is a crucial restriction on these types of accounts. For this reason, employees should be conservative when electing the amounts they want set aside during a plan year. Laymon Group 108 Giles Avenue Ste. 102 Wilmington, NC 28403 Fax 910-395-2316 Email flexdepartment@laymongroup.com This article is provided by Laymon Group. It is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. Visit us at http://www.laymongroup.com. 46

Benefits for Individuals, Benefits That Count Choosing the right benefits at the right time of your life can be critical. That s why Colonial Life is committed to making benefits count by helping people better understand their options. Our menu of personal insurance products offers choices for individuals to better protect themselves and their family members from life s unexpected turns. Accident Insurance Helps offset the unexpected medical expenses, such as emergency room fees, deductibles and copayments, that can result from a fracture, dislocation or other covered accidental injury. Cancer Insurance Helps offset the out-of-pocket medical and indirect, non-medical expenses related to cancer that most medical plans don t cover. This coverage also provides a benefit for specified cancer-screening tests. Critical Illness Insurance Complements your major medical coverage by providing a lump-sum benefit that you can use to pay the direct and indirect costs related to a covered critical illness, which can often be expensive and lengthy. Hospital Confinement Insurance Provides a lump-sum benefit for a covered hospital confinement and a covered outpatient surgery to help offset the gaps caused by copayments and deductibles that are not covered by most major medical plans. Life Insurance Enables you to tailor coverage for your individual needs and helps provide financial security for your family members. Colonial Life s coverages share important features: l Coverage is available for your spouse and children with most products. l Benefits are paid directly to you, unless you specify otherwise. l With most plans, you can continue coverage when you retire or change jobs, with no increase in premiums. l With most plans you receive benefits regardless of any other insurance you may have with other insurance companies. Email your Colonial Life benefits counselor to find out how you can apply for these valuable coverages by visiting www.visityouville.com/cityofdurham These coverages may not be available in all states; product benefits vary by state. Policies have exclusions and limitations that may affect benefits payable. For cost and complete details, please see your Colonial Life benefits counselor. Colonial Life 1200 Colonial Life Boulevard Columbia, South Carolina 29210 coloniallife.com 47 2013 Colonial Life & Accident Insurance Company Colonial Life products are underwritten by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand. 5-13 NS-12571-1

Discover which benefits are right for you - at Youville! Few things are more important than knowing what benefits you need in each stage of your life. After all, the right benefits can help protect you financially during unexpected times of need. Fortunately, understanding your benefits is not nearly as difficult as you may think. An educational website called Youville is here to help you quickly become more knowledgeable about employee benefits. The site offers: l Information on financial protection. l Personalized benefit recommendations. l Insurance terms to know. l Guidance around changing needs at different life stages. A visit to Youville better prepares you for your counseling session. 3 Go to the Youville website. 3 Complete the brief questionnaire. 3 Print out your personal benefit recommendations and summary showing the benefits your employer offers. 3 Take the printout with you to a 1-to-1 session with your Colonial Life benefits counselor. You ll be more informed about the benefit options that can help protect you and your family. So what are you waiting for? Visit us at visityouville.com/cityofdurham While you re there, be sure to subscribe to The Youville Reporter for tips about health and financial protection. Colonial Life 1200 Colonial Life Boulevard Columbia, South Carolina 29210 coloniallife.com 2013 Colonial Life & Accident Insurance Company Colonial Life products are underwritten by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand. 1/13 100990 48

Service Guide for Policyholders The Policyholder Website: My Colonial Life Go to coloniallife.com, click on Sign Up and complete a short registration. As a member of My Colonial Life, you can: l File a wellness claim. l Check on the status of your claim. l Check your policy information. l Download claims and service forms. l Keep your contact information updated. Claims Information How to File a Wellness Claim l For wellness screenings within 12 months of the date you are filing the claim, go to coloniallife.com, log in to the policyholder website and click on File a Wellness Claim Online. Or you may use the automated customer service center at 1.800.325.4368. l For wellness screenings over 12 months from the date you are filing the claim, go to coloniallife.com, click on File a Claim, followed by Health/Wellness Claim (over a year old). Complete and submit the claim as the form instructs. Be sure to review and sign all pages where indicated. How to File Other Claims l All claims: Visit coloniallife.com, click on File a Claim. Complete the sections of the claim form that apply to your specific claim. Be sure the information includes a diagnosis from your doctor, along with copies of any appropriate medical bills. Make sure you sign and date the certification and the authorization portion of the claim form. How to File Disability Claims l Where indicated on the form, be sure to: Have the doctor verify the dates of disability and furnish dates of treatment on the form where indicated. Have the employer confirm the dates missed from work. l Read and sign the claims authorization page. We cannot obtain additional information for your doctor without proper consent. l Submit your claim: Fax the completed form to 1.800.880.9325. Include your name and Social Security number on each page of your fax as indicated. If you fax the claim, you do not need to mail the original document to us; keep it for your records. OR Mail the completed forms to Colonial Life (see contact us section of this document). 49

Optional Services The first page of Colonial Life s claim forms explains optional services that may be utilized by initializing on the blanks provided. The options include: l Authorizing Colonial Life to release information to your benefits counselor, plan administrator or family member. l l Authorizing Colonial Life to communicate claims information via electronic messaging to your home phone number. Send any applicable claim benefits by overnight delivery and deduct the fee from your claim payment. Resolving Your Claim l l l When we receive information regarding your claim, you will be notified by telephone or email. If you selected the electronic messaging option, you will receive a call once the claim is processed. We will notify you by letter if we need any additional information from your doctor or any other source(s). We welcome your assistance in encouraging your doctor to provide the needed information as quickly as possible. Important Reminders l When mailing the claim form or other information, please keep a copy of your information for your records. l If you want us to send any applicable claim benefits by overnight delivery and deduct the fee from your claim payment, check the overnight line in the Optional Service section of the claim form. Ongoing Claims Total disability benefits provided by your coverage are based on disability information submitted on your claim form. Because Colonial Life cannot pay benefits for time you have not yet missed from work, you may be asked to provide verification of your ongoing disability and the dates you are unable to work. All disability dates must be confirmed by your doctor and your employer. Please include medical treatment dates on your claim form. Contact Us Online coloniallife.com Log in to the policyholder website to send us an Email. Telephone 800.325.4368. Call Center representatives are available Monday through Friday, 8 a.m. 8 p.m. Eastern Standard Time. Automated service information is available 24/7, 365. Please have your Social Security or your policy number ready when you call. Hearing-impaired customers who have TDD (Telecommunications Device for the Deaf), please call 1.803.798.4040. Mailing Address Colonial Life Service Center P.O. Box 100195 Columbia, SC 29202-3195 Colonial Life 1200 Colonial Life Boulevard Columbia, South Carolina 29210 coloniallife.com 2012 Colonial Life & Accident Insurance Company Colonial Life products are underwritten by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand. 4/12 43233-34 50

MetLaw Smart. Simple. Affordable. City of Durham Telephone and Office Consultations MetLaw provides you with telephone and office consultations for an unlimited number of matters with the attorney of your choice. During the consultation, the attorney will review the law, discuss your rights and responsibilities, explore your options and recommend a course of action. Legal Representation Trials for covered matters are covered from beginning to end, regardless of length, when using a network attorney. Estate Planning Documents Financial Matters Real Estate Matters Elder Law Matters Simple Wills Complex Wills Revocable Trusts Irrevocable Trusts Powers of Attorney (Healthcare, Financial, Childcare) Healthcare Proxies Living Wills Codicils Personal Bankruptcy/Wage Earner Plan Debt Collection Defense Foreclosure Defense Repossession Defense Garnishment Defense Identity Theft Defense Tax Collection Defense Negotiations with Creditors Tax Audit Representation (Municipal, State, or Federal) Sale, Purchase or Refinancing of your Home (Primary, Second/Vacation) Home Equity Loans for your Home (Primary, Second/Vacation) Tenant Negotiations (Tenant Only) Eviction Defense Security Deposit Assistance (Tenant Only) Boundary or Title Disputes Property Tax Assessments Zoning Applications Consultation & Document Review for issues related to your parents: Medicare Medicaid Prescription Plans Nursing Home Agreements Leases Notes Deeds Wills Powers of Attorney Family Law Traffic Offenses Document Preparation Immigration Assistance Adoption Guardianship Conservatorship Name Change Prenuptial Agreement Protection from Domestic Violence Defense of ANY Traffic Ticket (Excludes DUI) Driving Privileges Restoration (Includes License Suspension due to DUI) Affidavits Deeds Demand Letters Mortgages Notes Review of Any Personal Legal Document Advice & Consultation Review of Immigration Documents Preparation of Affidavits Preparation of Powers of Attorney Juvenile Court Defense Consumer Protection Defense of Civil Lawsuits Personal Property Protection Juvenile Court Defense (Including Criminal Matters) Parental Responsibility Matters Disputes over Consumer Goods and Services Small Claims Assistance Civil Litigation Defense Incompetency Defense Administrative Hearings School Hearings Pet Liabilities Consultation & Document Review for Personal Property Issues Assistance for Disputes over Goods and Services For More Information Visit: www.legalplans.com and enter password 6090399 or GETLAW Or call our Client Service Center at 1-800-821-6400 $18.00 Per Month Automatically Deducted from your Paycheck Covers Employee, Spouse and Dependents Additional Plan Features Reduced Fees Network attorneys provide representation for personal injury, probate and estate administration matters at reduced fees. Attorney Locator Law Firm E-Panel Free, downloadable legal documents E-Services Family Matters ** Available for an additional fee Separate plan for parents of participants for estate planning documents Life Guide Links to financial planning, insurance and work/life matters resources Group legal plans and Family Matters provided by Hyatt Legal Plans, Inc., Cleveland, Ohio. In certain states, group legal plans and Family Matters provided through insurance coverage underwritten by Metropolitan Property and Casualty Insurance Company and Affiliates, Warwick, Rhode Island. Please contact Hyatt Legal Plans for complete details on covered services including trials. No service, including advice and consultations, will be provided for: 1) employmentrelated matters, including company or statutory benefits; 2) matters involving the employer, MetLife and affiliates, and plan attorneys; 3) matters in which there is a conflict of interest between the employee and spouse or dependents in which case services are excluded for the spouse and dependents; 4) appeals and class actions; 5) farm and business matters, including rental issues when the participant is the landlord; 6) patent, trademark and copyright matters; 7) costs and fines; 8) frivolous or unethical matters; 9) matters for which an attorney-client relationship exists prior to the participant becoming eligible for plan benefits. For all other personal legal matters, an advice and consultation benefit is provided. Additional representation is also included for certain matters listed above under Legal Representation. *Not available in all states. **For Family Matters, different terms and exclusions apply. L0611190926[exp0912][All States][DC] 51

Save on your car and home insurance! You re part of an exclusive group that has partnered with Liberty Mutual to save you money. And the best part you receive knowledgeable support, immediate claims assistance and the latest information to help keep you and your family safe. Savings you can count on. As a City of Durham employee, you could save hundreds of dollars a year on car and home insurance with Liberty Mutual. Here s how: 1 Get exclusive group savings off our already competitive rates Add extra savings on your home insurance when you insure both your car and home Obtain additional discounts based on your driving experience, car and home safety features and more 1 Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify. Service and support when and where you need it. We re here for you: With 24-Hour Claims Assistance, 24-Hour Emergency Home Repair and our optional 24-Hour Roadside Assistance*, we have you covered Service your way: Interact the way you want with a local licensed sales representative, online, in person, by phone, or via your mobile device Choose the payment option best for you: We offer payroll deduction, direct billing, online payment, or automatic deductions from your bank account or credit card No down payment or billing fees with payroll deduction option Need additional coverage? Our representatives explain your options in clear terms and recommend the best match for you whether you need to protect your car, home, watercraft or motorcycle. You can also obtain personal liability (umbrella), flood, renters and identity theft insurance. Start Saving Today! Contact me to learn more and receive a FREE no-obligation quote. Melissa Kiner 6320 Quadrangle Drive - Suite 110 Chapel Hill, NC 27517 (919) 401-1550 x56557 melissa.kiner@libertymutual.com www.libertymutual.com/melissakiner Mention client #115365 when you call. Coverage provided and underwritten by Liberty Mutual Insurance Company and its affiliates, 175 Berkeley Street, Boston, MA. 2009 Liberty Mutual Insurance Company. All rights reserved. Exclusive insurance offering for City of Durham employees. AFF 14 E 2008/12 52

The Myths about Long-Term Care Long-term care issues have been everywhere in the news lately from stories of people needing these services to how the government is responding. But there is also a lot of conflicting, and even mistaken, information. Misconceptions may have prevented you from including long-term care planning into your retirement portfolio. But long-term care planning can be a critical component to any comprehensive retirement plan. So now is the time to dispel these myths. Myth #1: I ll never need long-term care. Most people can t imagine themselves needing longterm care services. But, the U.S. Department of Health and Human Services indicates that people age 65 face at least a 40% lifetime risk of entering a nursing home sometime during their lifetime 1. Living a long life may increase your risk of needing longterm care. Isn t it better to insure against what that risk may do to your family and your financial plans? Myth #2: Long-term care is only for the elderly. Actually, a surprising amount of long-term care services are provided to younger people. The U.S. Government Accountability Office estimates that 40% of 13 million people receiving long-term care services are between the ages 18 and 64 2. The unexpected need for long-term care could arise at any age for any number of reasons, including illness, or an accident. Myth #3: I ll pay for my own long-term care. In 2012, nursing home costs averaged over $91,000 a year nationally, but in some regions these costs are 1 Health Insurance Association of America. A Guide to sometimes twice that amount 3. How long can you pay for these expenses without jeopardizing your financial plan or exhausting your savings? It may make good sense to transfer this financial risk just like you do with your homeowner s insurance or auto insurance. Even if you can afford to pay for longterm care services out of pocket, why would you want to when you can transfer the cost to an insurer for premiums that may total a fraction of the cost of care? Myth #4: Medicare will cover my longterm care expenses. Medicare does pay for nursing home care, but only for a maximum of 100 days and if the 3-day qualifying hospital stay requirement has been met. In addition, Medicare will only pay as long as you are showing progress towards recovery. Once your condition becomes stable, even if you are not fully well or back to a completely healthy state of being, Medicare rules indicate that benefits will stop. Also, Medicare does not pay for individuals to attend an adult day care or for the room & board expenses at an assisted living facility. Myth #5: Medicaid will cover my longterm care expenses Medicaid was developed partially to cover long-term care costs for Americans of any age who need help Long-Term Care Insurance. 2007. Page 3. 2 Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 3. 3 New York Life Insurance Company. Survey of Nursing Home Costs. 2012. 364413CV 53

paying for those services. Medicaid is currently the largest payer of long-term care costs in the United States, primarily for care in nursing homes. However, Medicaid focuses on helping people with limited or minimal income and assets, and in order to qualify for benefits, you have to demonstrate a financial need for help. Qualifying means spending nearly all of your own money on your own care before the government will step in to help. Myth #6: My family will take care of me. The financial, physical and emotional stress that fulltime care-giving may place on families can be overwhelming. Many families have struggled to provide care for parents or siblings only to eventually realize that the care required is more than they can provide. The truth is, sometimes the best way for a family to take care of a loved one needing long-term care is to make sure that they have access to professional care. With the advances in home care services, many people needing long-term care are actually able to stay at home, with or near families, and still get the professional care they need. Myth #7: Long-term care insurance covers only nursing homes. Everyone wants to stay at home. Long-term care insurance can offer valuable benefits that may keep you at home for as long as possible. Long-term care insurance can also help cover the cost of care in other locations, such as adult day care centers, assisted living facilities and hospice care. With long life comes long-term planning. Make a plan for you and your family today. For more information on long-term care insurance, please contact Del Mattioli Agent, New York Life Insurance Company at 919-401-9988. The purpose of this piece is solicitation of insurance. An insurance producer (agent) may contact you. New York Life Insurance Company long-term care insurance is issued on policy form series ILTC-5000 and INH-5000 with a state identifier and edition date. Examples: for Idaho ILTC-5000 (ID) (1001) and INH-5000 (ID) (1001) and for North Carolina ILTC-5000 (NC) (1001) (Rev. 0606) and INH-5000 (NC) (1001) (Rev. 0606) and for Pennsylvania ILTC-5000 (PA) (1001), FLTC-5000 MLP (PA) (0503), for Tennessee ILTC-5000 (TN) (1001) and INH-5000 (TN) (1001) and for Texas ILTC-5000 (TX) (0305) and INH-5000 (TX) (0305). New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. 364413CV 54

Time Off Benefits 2013 City Holiday Schedule New Year s Day Tuesday January 1 Martin L. King, Jr. Day Monday January 21 Good Friday Friday March 29 Memorial Day Monday May 27 Independence Day Thursday July 4 Labor Day Monday September 2 Thanksgiving Thursday November 28 and Friday November 29 Christmas Monday December 23, Tuesday December 24 and Wednesday December 25 2014 City Holiday Schedule New Year s Day Wednesday January 1 Martin L. King, Jr. Day Monday January 20 Good Friday Friday April 18 Memorial Day Monday May 26 Independence Day Friday July 4 Labor Day Monday September 1 Thanksgiving Thursday November 27 and Friday November 28 Christmas Wednesday December 24, Thursday December 25 and Friday December 26 55

Paid Annual Leave (Vacation Leave) Your annual paid vacation leave benefits are based upon your length of service with the City. When you are first employed, leave is earned at a rate of one day for each month in which you are on active pay status for at least fifteen calendar days. After that, the rate will increase. The schedule below gives you the rate for years of service. (HRM 502) Years of service Hours earned per Annual Hours 8 hour day 26 bi weekly (whole numbers) equivalent 1 st 3 rd 3.692 96 12 days 4 th 9 th 4.615 120 15 days 10 th 15 th 5.538 144 18 days 16 th 20 th 6.461 168 21 days 21 st and more 7.384 192 24 days Sick Leave Sick leave is granted for each bi weekly pay period worked or on paid leave. You are reminded that paid sick leave is a privilege. It should not be used as annual leave. Sick leave is provided in order to insure against the loss of income during an extended illness. The excessive use of sick leave or failure to use sick leave for the purposes for which it is intended can result in disciplinary action up to and including discharge. Your supervisor may require a doctor s note to verify the use of the sick leave. The accumulation of sick leave begins on the bi weekly pay period following your date of hire. You may accumulate sick leave indefinitely. Currently, upon retirement, the Retirement System grants one month of service credit for every twenty (20) days of unused accumulated sick leave that you have. Sick Leave Incentive A maximum credit of 160 hours (20 days) of sick leave will be credited to the accounts of employees who previously worked for a company, agency, municipality, or government immediately preceding employment with the City. The credit shall be given upon receipt of a letter from the previous employer verifying the amount of unused sick leave held upon separation. The letter should be submitted to the Human Resources Director. (HRM 503) Shared Sick Leave Sick leave can be donated to City employees who are involved in a verifiable medical emergency by other City Employees on a voluntary basis. This policy is only applicable for medical emergencies involving the employee or a member of the employee s immediate family. Also, the potential sick leave recipient must have exhausted or expect to exhaust all paid leave credited to his/her account before donated leave can be used. There is no requirement to repay donated sick leave time. No employee shall be coerced, threatened, or intimidated regarding the donation, receipt, or use of donated sick leave, receipt, or use of donated sick leave. For more information regarding shared sick leave and the procedures involved, please consult HRM 503 or your Human Resources team. 56

Paid Temporary Disability Leave (PTD) The City of Durham offers employees that are classified as regular full time and temporary with benefits the use of Paid Temporary Disability leave. It is designed for certain specified temporary disabilities for off the job injury/illness and non compensable on the job/illness. Qualified employees will be paid their gross base salary for up to six (6) calendar weeks from the date of disability without charges to the employee s accumulated leave. Disabilities covered are: Childbirth (starting from the first workday the doctor indicates the employee should not work); Paralysis (temporary/less than one year); Surgery which requires at least a 2 week recuperation period; and Diagnosed terminal illness (cancer, AIDS, etc). Employees are advised to review this policy for usage and coverage stipulations. Medical certification should be submitted with the request to the Human Resources department. Use of PTD is counted against the FMLA entitlement. Use of sick leave is counted against your Family Medical Leave Act (FMLA) entitlement. Family and Medical Leave The Family and Medical Leave Act (FMLA) of 1993 gives eligible employees unpaid leave for a period of up to 12 work weeks for any FMLA qualifying event. In the event of an FMLA qualifying event, the City is responsible for designating leave as FMLA leave and providing notices to the employee of such designation. If the employee has FMLA leave available and the reason for the leave qualifies under the FMLA, the employee is required to take FMLA leave. If the employee wishes to receive pay while out on FMLA leave, the employee has the option of using paid leave in conjunction with unpaid FMLA leave. Under these circumstances, the absence will be charged against the employee s FMLA leave balance and the employee s paid leave balance. When the necessity for leave is foreseeable, the employee must give the City at least 30 days advance notice of the need for leave. If the need for leave is not foreseeable, the employee needs to give the City as much notice as practical. Request for Family and Medical Leave forms will be provided by the department/division/office head. When Human Resources becomes aware that an employee is absent due to a serious health condition (or when the request involves the health condition of a family member), the department approves the employee provisionally under the FMLA. A final determination is made when the completed FMLA forms are received within 15 days. Final approval of an FMLA leave request is contingent upon the Human Resources Department s confirmation of eligibility. (HRM 607) 57

Civil Leave The City provides time away from the job if you are required to serve as a juror or if you are requested or required to appear as a witness in an official City related matter. You are required to notify your supervisor immediately and submit a Request for Leave form with a copy of the subpoena, or the official notice requiring you to serve as a juror or as a witness in an official City related matter. Should you volunteer or be required to appear in court for any other reason with or without a subpoena, you must request annual leave or leave without pay. Volunteer School/Community Service Time Leave Employees are allowed up to forty eight (48) hours per year to perform volunteer for service in schools or in community programs. Employees must have good performance, good attendance/punctuality ratings, and prior Department Director approval. Employees must set a schedule for the volunteer work which does not conflict with work completion/productivity. Occurrences and times are not charged against employee s leave time. (HRM 541) Funeral Leave The City has established a paid Funeral Leave Policy Plan for its employees. Funeral Leave is established to provide time to make funeral arrangement, and for handling business matters concerning a death. It is a benefit granted to you in the event of a death in the family. Funeral leave does not carry over from year to year. Funeral leave may be taken in hourly increments if needed. Current employees participating as floral bearers, soloists, pall bearers, or honor guards for the funeral if for a current or retired City employee are given City time to complete those duties. (HRM 525) Parent s Leave The City of Durham will allow full time regular employees and temporary employees with benefits to immediately be released from work upon contact from the school principal, guidance counselor, nurse or teacher of the employee s child(ren) for discipline, academic or other emergency needs. Child(ren) includes those who are adopted and those for whom the employee is legally responsible (i.e. legal guardianship). The time away from work will not be charged to the employees paid leave time for up to four (4) hours per school year. Time needed beyond four (4) hours per school year must be the employee s paid leave time. For more detailed information regarding Parent s leave and the procedures involved, please consult HRM 540. 58

Retirement Benefits North Carolina State Retirement System City of Durham employees are required to contribute to the NC State Retirement System at the rate of 6% of their salary until retirement, regardless of age. Contributions to the retirement system are taxdeferred. State law provides that the City, as a participant in the North Carolina Local Governmental Employees Retirement System, may shelter the contributions payable to the system by its employees who are members of the system. This provision enables eligible members to have state and federal income taxes on their contributions to their retirement deferred until after retirement. The City of Durham also contributes to the retirement fund. The City s contributions are based on an actuarial calculation so that employee benefits can be provided on a sound basis. Your retirement program offers several options. These options are discussed more fully in your North Carolina State Retirement Handbook. The ORBIT online system allows members to access their individual account information on demand. You can review your salary history and reported earnings, service credits, and dates of participation as an active member of the retirement system. There are support tools available such as the Benefit Calculator to assist you in calculation your monthly retirement benefit. The Member Benefits Booklet, another benefit tool, provides guidance and increased understanding. Visit ORBIT and logon at www.nctreasurer.com. The City of Durham also provides its employees with an online Retirement Module located at ww2.durhamnc.gov/hr_director/retirement/. The information in this module describes the retirement benefits you can expect to receive as a City of Durham retiree. This module includes topics such as when you qualify for benefits, directions to ORBIT, and so much more. The City of Durham strongly believes you will find our Retirement Module a helpful tool in understanding the benefits of your Retirement. We encourage you to read through the Retirement Module and share this information with your family. If you have any questions or concerns, you can call or email Sofia Klenke, Human Resources Consultant at 919.560.4214 extension 23272. Please call 6 months prior to your retirement date to set up a retirement meeting. Saving money for retirement can be a daunting task for those of us who are not independently wealthy. That is why the City has other savings and investment options for employees who would like to participate. Your contributions are made through payroll deductions, which may be increased or decreased monthly. 59

Plan Name Type Tax Advantage 401(k) Plan Supplemental Retirement Pre tax 457 Deferred Compensation Plan Supplemental Retirement Pre tax Roth 401(k) or 457 Plan Supplemental Retirement Post tax/interest free Any employee interested in participating in any of the plans listed above should contact their HR Team for additional information. 60

COBRA Benefits Continuing Your Coverage Under certain circumstances, you may continue your health care coverage when it would otherwise end. The right described above is given under the Public Health Services Act (PHSA) and stipulated by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA contains a provision giving certain former employees, retirees, spouses, domestic partners and/or dependent children the right to temporary continuation of health coverage at group rates. However, this coverage is only available in specific instances. Group health coverage for COBRA participants is usually more expensive than health coverage for active employees since the City pays a part of its employees insurance premiums. If you are an employee of the City of Durham covered by its health insurance, dental insurance, or have a health care flexible spending account, you have a right to choose this continuation coverage for yourself and your covered dependents if: You lose your coverage under the plan because of a reduction in your hours or employment. Your employment is terminated for reasons other than gross misconduct on your part. Once notified that one of these events has happened, the City s COBRA Administrator will notify you that you have the right to choose continuation coverage. You have 60 days from the date you receive the necessary election forms from the COBRA Administrator to inform the Administrator that you want continuation coverage. If you do not choose continuation coverage, your coverage under the City s plan will end. If you choose continuation coverage, you will receive coverage identical to the coverage currently provided you under the plan. The law requires that you be given the opportunity to maintain coverage for up to 18 months due to loss of coverage resulting from a termination of employment or reduction in hours. If you, or a dependent on continuation coverage, become disabled for purposes for Social Security during the first 60 days of continuation coverage, the affected individual qualifies for 29 months of continuation coverage. The City of Durham must receive notification of the disability determination within 60 days (and before the expiration of the original 18 month period) in order for the affected individual to qualify for this extension. You must also notify the City within 30 days of any final determination that the individual is no longer disabled. Dependents If you are the spouse/domestic partner of an employee covered by the City of Durham s health insurance or dental insurance plans, you have the right to choose continuation coverage for yourself (and your covered dependents, if any) if you lose coverage under the plan for any of the following reasons: 61

Death of your spouse/domestic partner Divorce or legal separation from your spouse Termination of your spouse s or domestic partner s employment (for reasons other than gross misconduct) or reduction in your spouse s or domestic partner s hours of employment Your spouse or domestic partner becomes eligible for Medicare and chooses Medicare as the primary payer Covered dependent children of an employee have the right to continuation coverage if coverage under the plan is lost for any of the following reasons: Death of parent employed by the City of Durham Parent s divorce or legal separation Termination of the parent s employment (for reasons other than gross misconduct) or reduction in parent s hours of employment Parent employed by the City of Durham becomes eligible for Medicare and chooses Medicare as the primary payer Dependent is no longer a dependent child under the plan Under the continuation coverage law, the employee or a family member is responsible for informing the City of Durham s Human Resources Department of a divorce, a legal separation, or a child s losing dependent status within 30 days after this event occurs. Once notified that one of these events has occurred, the City s COBRA Administrator will notify you that you have the right to choose continuation coverage. You have 60 days from the date you receive the necessary election forms form the City s COBRA Administrator to inform the Administrator that you want continuation coverage. If you do not choose continuation coverage, your coverage under the plan will end. If you choose continuation coverage, you will receive coverage identical to the coverage currently provided under the plan. The law requires that you be given the opportunity to maintain coverage for between 18 and 36 months, as applicable. If you have any questions about COBRA, please contact the City s Administrator. COBRA Administrator P & A Group 17 Court Street, Suite 500 Buffalo, NY 14202 Phone: 800-688-2611 Website: www.padmin.com 62

City Employee Discounts Disclaimer: The City of Durham makes no guarantee regarding these discounts or the quality of services rendered by companies offering discounts. The employee selecting the discount is responsible for selection and use of the discount and for contact with the discounting agency regarding any service or product issues. The City of Durham is not liable for any product/service problem that may be encountered. The discounting agency determines eligibility for receipt of the discount. The offering of the discount is neither a guarantee of employment nor of benefits. Discounts may be changed or discontinued at any time at the discretion of the discounting agency. The City retains the right to determine the discounts which will be offered to City employees. Durham Performing Arts Center To get the discount through the City of Durham, use www.dpacnc.com. This site remains updated with new offers. Instructions on ordering are posted on the site, and there is no minimum number of tickets required to get the discount. For availability of regular priced tickets outside of these SuperGroup offers, you can visit Ticketmaster.com or call the DPAC Box Office (919) 680-2787. For questions, please contact: Emily Dahl Group Service Manager Durham Performing Arts Center (919) 281-0587 Verizon Wireless 20% Discount for City of Durham employees. AT&T Wireless 15% Discount for City of Durham employees. Durham Parks and Recreation Current City employees receive a twenty-five percent (25%) discount on all instructional classes for activities provided by the City of Durham Parks and Recreation Department. Child care programs and facility, field, and equipment rentals are excluded from this discount. Contact Rich Hahn or Joy Guy for more information. (919) 560-4355 63

North Carolina Symphony Type of Concert Regular Price City Employee Price Savings Classical $45.00 $30.00 $15.00 Pops $45.00 $30.00 $15.00 Friday Favorites $25.00 $12.00 $13.00 Young People's Concerts $20.00 $12.00 $8.00 $20.00 (lawn) Summer Fest $15.00 (lawn) $20.00 (Wizard of Oz) $5.00 $25.00 (Wizard of Oz) Links and other special event information provided periodically. For questions, please contact: Maria Ewing Keeler Audience Development Manager NC Symphony (919) 789-5480 Phone (919) 781-6066 Fax SUNTRUST at work A solid financial program that works for you. The City and SunTrust have teamed up to offer SunTrust accounts and services as a benefit to City employees. Employees and retirees who are receiving a City of Durham paycheck are eligible. Part-time employees are also eligible to participate in this program. CONTACT Jarrod Basile to help you set up your free premium account today! Call (919) 220-5710 to learn more or go online at suntrust.com/suntrustatwork and start taking advantage of this great benefit. Use the promo code 85151. Jarrod Basile Financial Service Representative II Mail Code: NC-Durham-0104 3421 Roxboro Rd Durham, NC 27704 Tel: 919.220.5710 Fax: 919.220.5816 Jarrod.Basile@SunTrust.com 64

Important Contact Information Benefit Questions If you have questions about any of your benefits, please contact the company that handles the plan administration for the City. If you still have questions, or need more information about any other benefit plans, please contact your Human Resources Team for assistance. They will be happy to assist you. Below is a list of companies, the plans they administer and their contact information. Company Phone Number Website Blue Cross/Blue Shield 1-877-275-9787 www.bcbsnc.com Of North Carolina (Group # 069114) Colonial Products 1-800-325-4368 www.coloniallife.com Community Eye Care 1-888-254-4290 www.communityeyecare.net Hyatt Legal 1-800-821-6400 www.legalplans.com ICMA 457 1-800-669-7400 www.icmarc.org (Deferred Compensation) Laymon Group 1-800-467-2259 www.wealthcareadmin.com (Flex Spending Accounts) Liberty Mutual 919-401-1550 x56557 www.libertymutual.com/melissakiner Nationwide 457 1-877-677-3678 www.nrsforu.com (Deferred Compensation) New York Life 1-800-224-4582 www.newyorklife.com N.C. Retirement System 919-733-4191 www.treasurer.state.nc.us NC Supplemental Retirement 1-866-624-0151 www.prudential.com 401 (k) P & A Group 1-800-688-2611 www.padmin.com Unum 1-866-679-3054 www.unum.com 65

About This Guide This guide describes the benefit plans and policies available to you as an employee of the City of Durham. The details of these plans and policies are contained in the official plan and policy documents, including some insurance contracts. This guide is meant only to cover the major points of each plan or policy. It does not contain all of the details that are included in your Summary Plan Description. Your Summary Plan Descriptions are available through The City s Human Resources department. If there is ever a question about one of these plans and policies, or if there is a conflict between the information in this guide and the formal language of the plan or policy documents, the formal wording in the plan and policy documents will govern. Please note that the benefits described in this guide may be changed at any time and do not represent a contractual obligation on the part of the City of Durham. Key Terms Relating To Your Employee Benefits COBRA Coinsurance Copayment Deductible A federal law that allows workers and dependents that lose their medical, dental or health care flexible spending account coverage to continue any of those coverages for a specified length of time. The percentage of the medical charge that you have to pay. A flat fee that you pay for medical services, regardless of the actual amount charged by your doctor or another provider. This generally applies to physicians office visits and prescription drugs. The amount you pay toward medical and dental expenses each calendar year before the plan begins paying benefits. Reasonable and Customary Flexible Spending Accounts (FSA) The usual amount charged by most doctors for a particular medical services. The R & C Limit may be different in two different geographic areas or it the service was provided under different circumstances (for example, in an emergency versus a non emergency). R & C charges may apply only if you use out of network providers. A flexible spending account is a way for you to save money for approved expenses and not pay taxes on that money. Flexible spending accounts do not carry over from year to year. The IRS allows employees to incur expenses on money that is set aside for the previous year until November that year. 66

Summary Plan Description (SPD) A legal document that describes your benefits, as well as your rights and responsibilities under the Plan. We encourage you to read your SPD and any attached Riders and/or Amendment carefully and to keep your SPD and any attachments in a safe place for your future reference. Please be aware that your Physician does not have a copy of your SPD and is not responsible for knowing or communicating your benefits. NOTE: It is each employee s responsibility to review deductions and coverages for the plan year. The City is only liable for 30 days of back payment when an error is discovered. 67

Important Tips to Remember There can be no changes, other than those defined as family status changes, after Open Enrollment ends. Family status changes include: o marriage, o divorce, o birth, o death, o etc. Family status changes must be made within thirty (30) days of the event constituting the change. Employee must provide appropriate documentation of the change within the thirty (30) day period. Employee is responsible for insuring that deductions are correct for the coverage for which s/he enrolled. The City of Durham will refund a maximum of thirty (30) days deductions in the event that deductions are inaccurate. Employee family status changes occurring outside the open enrollment period may only be made within a plan tier, i.e. from single to twoparty. An employee may not make a change from plan to plan, i.e. from Core to Basic. 68