directory of contacts - app3.unisys.com · directory of contacts for answers to questions about ......

UAW Local 1313 as of 5/10/99 — i

DIRECTORY OF CONTACTS The table of contents and index should help you locate information. However, if you have a question and the answer is not in this booklet, contact the appropriate resource noted below. On all correspondence, reference your name, Social Security number and current mailing address.

Directory of contacts For answers to questions about

Write

Or call/contact via Internet

Unisys Benefits Service Center · enrollment · changing benefit elections · COBRA coverage

Unisys Benefits Service Center PO Box 9233 Boston MA 02205-9233

· 1-800-600-4015, 24 hours a day, 7 days a

week; Participant Service Representative, 8:30 am to midnight any business day (except NY Stock Exchange holidays)

· hearing impaired, 1-800-610-4015 · http://www.netbenefits.fidelity.com

Health Alliance Plan HMO · plan benefits · primary care physician selection · claims

Health Alliance Plan (HAP) 2850 West Grand Blvd. Detroit MI 48202

· 1-800-422-4641

1-313-872-8100 weekdays 8 am to 6 pm

· http://www.hapcorp.org Blue Cross Indemnity Plan (CMM100) · plan benefits · claims

Blue Cross Blue Shield of Michigan National Account Service Center PO Box 341 Detroit MI 48231

1-800-637-2227 reference Group 69900 weekdays 8:30 am to 5 pm

Mail Servi ce Prescription Drug Program (for those in CMM100) · plan benefits · difference in cost for brand-name

versus generic drugs · preauthorization · status of refill request

Merck-Medco Rx Services PO Box 67007 Harrisburg PA 17106-7007

· 1-800-903-4734

24 hours a day, 7 days a week · hearing impaired

1-800-289-1230 weekdays 8 am to 8 pm Saturday 8 am to noon

· http://www.merck-medco.com Unisys Dental Plan: · plan benefits · claims · preauthorization for dental work

costing $300 or more · PDP network providers

MetLife Group Dental Claims PO Box 14093 Lexington KY 40512-4093

· 1-800-942-0854, all time zones

Monday - Thursday 8 am to 8 pm Friday 8 am to 5 pm

· For local PDP providers: http://www.metlife.com/dental

· For PDP directories: 1-800-474-7371

Health Care and Day Care Reimbursement Accounts · plan benefits · claims

Unisys Benefits Payment Office (UBPO) PO Box 2909 — Loop Station Minneapolis MN 55402

· 1-800-223-3580

weekdays 9 am to 7 pm · hearing impaired, 1-800-325-5961

Sickness and Accident Benefits · plan benefits · report absence due to disability · claims

Hartford Life Disability Claims Department 3800 West 80th Street Bloomington MN 55431-4440

1-800-707-5333 weekdays 9 am to 5:15 pm

Long-Term Disability Plan · plan benefits · claims

Same as above for Sickness and Accident Benefits

1-800-752-9713 weekdays 9 am to 5:15 pm

Group Universal Life Program

KVI

1-800-222-1617

ii — UAW Local 1313 as of 5/10/99

· apply for coverage; increase, decrease, terminate coverage

· change GULP beneficiary

PO Box 9122 Des Moines IA 50306-0905

weekdays 9 am to 6 pm

UAW Local 1313 as of 5/10/99 — iii

CONTENTS

iv — UAW Local 1313 as of 5/10/99

Contents

Flexible Benefits Program............................................................... 1 Introduction.........................................................................................................2 Who Is Eligible and Effective Dates of Coverage......................................................2 Eligible Dependents...............................................................................................4 Preexisting Conditions ...........................................................................................8 How the Flexible Benefits Program Works...............................................................9 Your Choices ..................................................................................................... 11 How to Enroll..................................................................................................... 17 If You Fail to Enroll ............................................................................................ 18 Interim Coverage................................................................................................ 20 Changing Elections: Status Changes ...................................................................... 21 When Coverage Ends & Continuation Options ....................................................... 31 Return to Work after Coverage Ends .................................................................... 31

Your Medical Options .................................................................. 33 Introduction....................................................................................................... 34 More Information About Your Medical Options...................................................... 34 Newborns’ and Mothers’ Health Protection Act..................................................... 35 Women’s Health and Cancer Rights Act of 1998.................................................... 35 Mail Service Prescription Drug Program ............................................................... 36

Unisys Dental Plan........................................................................ 43 Your Dental Options ........................................................................................... 44 How the Dental Plan Works ................................................................................. 45 The Annual Dental Deductible .............................................................................. 46 Dental Coinsurance............................................................................................. 47 Annual and Lifetime Dental Benefit Maximums....................................................... 47 Alternative Courses of Treatment ......................................................................... 47 Reasonable and Customary (R&C) ....................................................................... 48 Preauthorization Review ...................................................................................... 48 MetLife’s Preferred Dentist Program (PDP) .......................................................... 49 Covered Expenses and Providers.......................................................................... 52 Expenses Not Covered ........................................................................................ 58 Requesting Benefits from the Dental Plan .............................................................. 60 Facility of Payment............................................................................................. 62 If You Have Coverage Under Another Plan ............................................................ 63 When Coverage Ends & Continuation Options ....................................................... 66 Additional Plan Information.................................................................................. 66

CONTENTS

UAW Local 1313 as of 5/10/99 — v

Reimbursement Accounts ............................................................. 67

Introduction....................................................................................................... 68 Advance Election................................................................................................ 69 Changing Your Reimbursement Account Elections ................................................. 69 Your Contributions ............................................................................................. 69 How the Reimbursement Accounts Work.............................................................. 71 The Tax Advantage............................................................................................. 73 Covered Health-Care Expenses ............................................................................. 75 Covered Day-Care Expenses ................................................................................ 76 Expenses Not Covered ........................................................................................ 77 Requesting Benefits from Reimbursement Accounts ............................................... 78 At Year End . . . Forfeitures and Filing Limitations ................................................. 79 When Before-Tax Contributions End..................................................................... 80 Continuation Options After Coverage Ends ............................................................ 80 Additional Plan Information.................................................................................. 80

Disability Income Benefits ............................................................ 81 Introduction....................................................................................................... 82 Sickness and Accident Benefits (S&A).................................................................. 83 Unisys Long-Term Disability Plan (LTD) .............................................................. 90 Other Benefits If Disabled Longer Than 26 Weeks ............................................... 111

Death Benefits ............................................................................ 113 Introduction..................................................................................................... 114 Company-Provided Life Insurance...................................................................... 115 Accidental Death and Dismemberment (AD&D) Insurance.................................... 120 Business Travel Accident and Seat Belt Insurance ................................................ 123 Group Universal Life Program (GULP) ............................................................... 128 Other Benefits Available to Your Survivors .......................................................... 129

CONTENTS

vi — UAW Local 1313 as of 5/10/99

When Coverage Ends & Continuation Options........................... 131

Introduction..................................................................................................... 132 Certification of Creditable Coverage.................................................................... 132 When Coverage Ends . . . Your Coverage............................................................ 133 When Coverage Ends . . . Your Dependents ........................................................ 134 COBRA Coverage............................................................................................. 135 Company-Sponsored COBRA ............................................................................ 139 Extended Dental Benefits ................................................................................... 149 Extended Company-Provided Life Insurance Benefits ........................................... 149 Conversion to an Individual Life Insurance Policy ................................................ 150 No Conversion Available.................................................................................... 150

Additional Plan Information ...................................................... 151 Official Plan Names and Plan Numbers ............................................................... 152 Plan Sponsor.................................................................................................... 152 Employer Identification Number ......................................................................... 152 Plan Year ......................................................................................................... 152 Type of Plan .................................................................................................... 152 Plan Administrator ............................................................................................ 153 Administrator for Processing Benefits Requests ................................................... 154 How to Appeal a Benefits Request Determination.................................................. 155 Right to Recover Excess Payments..................................................................... 157 Case Review .................................................................................................... 157 Third-Party Liability.......................................................................................... 157 Type of Administration and Funding ................................................................... 159 Indemnification ................................................................................................ 160 Agent for Legal Process .................................................................................... 160 Governing Law ................................................................................................ 160 Your Rights Under ERISA................................................................................. 160 Plan Termination/Revision ................................................................................. 162

Index .......................................................................................... 163

CONTENTS

UAW Local 1313 as of 5/10/99 — vii

CONTENTS

viii — UAW Local 1313 as of 5/10/99

CONTENTS

UAW Local 1313 as of 5/10/99 — ix

UAW Local 1313 as of 5/10/99 — 1

FLEXIBLE BENEFITS PROGRAM


2 — UAW Local 1313 as of 5/10/99

INTRODUCTION The Flexible Benefits Program allows you to select, from a number of options, the specific benefits you feel best meet your individual needs. Each year you can reevaluate your benefit choices based on your projected needs for the next year and the options available through Unisys.

WHO IS ELIGIBLE AND EFFECTIVE DATES OF COVERAGE You are eligible to participate in the benefit plans described in this booklet through the end of the current labor agreement if all of the following apply:

_ You are employed as a regular U.S. employee, normally scheduled to work a full-time schedule.

_ Your terms of employment are subject to the collective bargaining agreement between Unisys and Local 1313 of the International Union United Automobile, Aerospace and Agricultural Implementation Workers of America (UAW).

_ You meet the service requirements for participation noted on the following page.


UAW Local 1313 as of 5/10/99 — 3

When you are eligible to participate In all cases, for benefits to become effective, you must be working your normal full-time schedule on the first scheduled workday concurrent with or immediately following your eligibility date. If you are absent from work when your benefits would otherwise become effective, other than for reasons of an unscheduled workday, coverages begin the first day you are subsequently working your normal full-time work schedule.

Periods of workforce reduction and leaves of absence do not count toward waiting periods for benefit eligibility.

Prior service does not count toward waiting periods for benefit eligibility if your employment ends and you are rehired:

_ after the expiration of your recall rights following a workforce reduction

_ after the expiration of an approved leave of absence of one year or less

_ more than six months after you started missing work due to a disability

First day of employment You are eligible to participate in the following benefit plans on your first day of work in an active full-time status.

_ Health Care Reimbursement Account _ Day Care Reimbursement Account _ Unisys Long-Term Disability Plan _ Business Travel Accident and Seat Belt Insurance

You also are eligible to participate in the optional Group Universal Life Program (GULP) on your first day of work.

After six months of employment You are eligible to participate in the following benefit plans on the first day of the month coincident with or following the month in which you are actively at work for six months:

_ Medical _ Sickness and Accident benefits _ Company-Provided Life Insurance _ Accidental Death and Dismemberment Insurance

After 18 months of employment You are eligible to participate in the Unisys Dental Plan on the first day of the month coincident with or following the month in which you are actively at work for 18 months.


4 — UAW Local 1313 as of 5/10/99

ELIGIBLE DEPENDENTS If you are eligible and choose coverage, you may include your eligible dependents under your medical and/or dental coverage.

Each eligible dependent you elect to include under your medical and/or dental coverage must be registered. If any of your eligible dependent children do not reside with you (for example, children residing with your ex-spouse), you also must provide the mailing address for the dependents.

You must register dependents when you first enroll, and again when you make changes involving dependents, either during annual enrollment or at the time you make an allowable change due to a change in status (information begins on page 21).

If you acquire new dependents during the plan year and you wish to include them under your medical and/or dental coverages, within 30 calendar days of the date the individual becomes your dependent (for example, through marriage, birth, adoption, guardianship or stepchild arrangement), you must call the Unisys Benefits Service Center at the telephone number listed in front of this booklet.

Note: Other than the exception for newborns or newly adopted children noted below, failure to register each new dependent within 30 calendar days prohibits you from adding the new dependent to your medical coverages until the next annual enrollment period. Depending on when you made your last two-year dental election, you may need to wait an additional year before you can add the dependent to your dental election.

Special note regarding newborns: your newborn or newly adopted child is covered for the first 30 calendar days immediately following birth or adoption, provided you notify the Unisys Benefits Service Center of the new child within 30 calendar days of birth or adoption.

If you fail to notify the Unisys Benefits Service Center of your new child within 30 calendar days following birth or adoption, the baby will have no medical coverage from the date of birth or adoption until the date you contact the Center. Once you do call, the child will be added to your coverage effective on the date of your call if you are enrolled in the Blue Cross Indemnity Plan (CMM100). Contributions for the baby will be made on an after-tax basis. Coverage will not be retroactive to the date of birth or adoption; it will apply only from the date of your call forward, assuming your medical plan will accept the newborn.

If you are enrolled in the Health Alliance Plan (HAP) HMO and you miss the 30-day deadline, the HMO may refuse the coverage change until the next annual enrollment. In this case, your new child will not be covered until the first of the following year, assuming you add the child during the next annual enrollment.


UAW Local 1313 as of 5/10/99 — 5

To register a dependent, you need the following information:

_ full name and date of birth

_ Social Security number, if available

_ date the person became your dependent (for example, date of marriage for a new spouse and stepchildren residing with you)

_ address, if not residing with you

_ whether or not the individual has other group coverage

_ full-time student status for a child, age 19 or older who you wish to cover under the Unisys Dental Plan

_ depending on the medical option you elect, you also may need to designate a primary care provider (PCP) or clinic for each dependent

Your spouse Your spouse (including a common-law spouse, if your common-law marriage is recognized by the state in which you reside) may be covered under the available medical options and the dental plan.

Note: If you and your spouse are both employed by Unisys, one of you is eligible for medical coverage through Unisys as a non-bargaining employee and the other is eligible for medical coverage as an employee in UAW 1313, certain restrictions apply to the choices for the non-bargaining spouse (see page 14).

If your spouse is eligible for dental coverage based on current employment with Unisys, your spouse may not be enrolled for dental coverage as an eligible dependent (see page 14).


6 — UAW Local 1313 as of 5/10/99

Your same-sex domestic partner A same-sex domestic partner may be covered under the HAP HMO through Unisys (if you participate in that option) and/or the Unisys Dental Plan. Before coverage begins, you must submit a completed Declaration of Domestic Partnership form. The form is available from the Unisys Benefits Service Center at the telephone number listed in front of this booklet. The form specifies that all of the following are met:

_ You are each other’s sole domestic partner and intend to remain so indefinitely. _ You are of the same gender and neither of you is married to another person. _ You are each at least 18 years of age and mentally competent to consent to contract. _ You are not related by blood to a degree of closeness that would prohibit legal marriage

in the state in which you legally reside if you were of the opposite sex. _ You are engaged in a committed relationship of mutual caring and support. _ You are jointly responsible for each other’s common welfare and you share financial

obligations, or one of you is financially dependent on the other. _ In the last 12 months, you have not enrolled anyone else as a domestic partner for

Unisys benefits.

Taxation Depending on the tax status of your domestic partner:

_ You may not be able to make before-tax contributions for your partner’s coverage. _ You may have to pay taxes on the value of your partner’s coverage. The value is treated

as imputed income

Benefit provisions that apply The benefit provisions of the HAP HMO plan and the Unisys Dental Plan that apply to a spouse apply to a covered same-sex domestic partner.

Status changes involving your domestic partner The opportunities to make benefit changes within 30 calendar days of a status change that apply to a spouse also apply to an eligible domestic partner. These include, but are not limited to:

_ options available when a partnership begins or ends (subject to the 12-month limitation between partnerships noted above), or your partner dies

_ medical and/or dental opt-out provisions if you both work for Unisys _ options available if your domestic partner gains employment or loses employment _ COBRA coverage

If a domestic partner is covered as your dependent through Unisys and that partnership ends, you must complete a Declaration of Termination of Domestic Partnership within 30 calendar days of the date the partnership ends. This form is available upon request from the Unisys


UAW Local 1313 as of 5/10/99 — 7

Benefits Service Center at the telephone number listed in front of this booklet.

Your children

For medical Your natural, unmarried children may be covered under your medical option until the child’s 25th birthday provided:

_ they are legally residing with and dependent on you for more than one-half of their support as defined by the Internal Revenue Code

AND

_ either qualify in the current year for dependency tax status or have been reported as a dependent on your most recent income tax return

For dental Your natural, unmarried children who are not self-supporting, whether or not they reside with you, may be covered until:

_ the child's 19th birthday

_ the earlier of graduation, loss of full-time student status, or the child's 23rd birthday, if your child is a registered full-time student in an accredited institution for higher learning, such as a college, university or an accredited vocational school — you will be asked periodically to provide written proof of full-time student status

Stepchildren and children of your covered domestic partner Stepchildren who reside with you also may be covered based on the same age and student-status requirements as your natural children.

If your covered domestic partner’s children reside with you and you cover your domestic partner, the children also may be covered in HAP HMO (if you participate in that option) based on the same age and student-status requirements as your natural children. However, depending on the tax status of your domestic partner’s children:

_ You may not be able to make before-tax contributions for their coverage.

_ You may have to pay taxes on the value of their coverage. The value is treated as imputed income.


8 — UAW Local 1313 as of 5/10/99

Adopted children Coverage for an adopted child, or a child pending adoption, is available when the child begins to reside with you.

Legal guardianship An unmarried child for whom you are a legal guardian also may be covered based on the same age and student-status requirements as your natural children, provided all of the following criteria apply:

_ primarily supported by you

_ resides with you

_ claimed as a dependent by you for federal income tax purposes

_ has no other health-care coverage available through the benefits program of a natural parent

_ documentation proving legal guardianship is provided to the Unisys Benefits Service Center within 30 calendar days after the date you obtain status as a legal guardian for the child

Disabled children If you have a child who is incapable of self-support because of a mental or physical impairment, that child may continue to be covered, regardless of age, if both of the following conditions are satisfied:

_ the child is covered by the plan sponsored by Unisys at the time the child reaches the age limits noted earlier (age 19, 23 or 25, as appropriate) and the child is disabled before these ages

_ proof of your child's disability is provided to the Unisys Benefits Service Center within 30 calendar days after the date coverage would normally end for the child, and periodically thereafter when requested

Qualified Medical Child Support Order As required by the Federal Omnibus Budget Reconciliation Act of 1993, if your child is an alternate recipient under a Qualified Medical Child Support Order (QMCSO), the child is considered as having a right to dependent coverage under the medical and dental plans sponsored by Unisys, provided the child meets the age and student-status requirements described earlier in this booklet.

PREEXISTING CONDITIONS None of the health-care plans sponsored by Unisys limit coverage due to a preexisting condition you or your eligible dependents may have at the time you join the plans. However,


UAW Local 1313 as of 5/10/99 — 9

you must enroll on a timely basis for coverage to be effective.


10 — UAW Local 1313 as of 5/10/99

HOW THE FLEXIBLE BENEFITS PROGRAM WORKS You make benefits decisions by choosing among options in several benefit areas. In each benefit area you choose from different coverage options, each with a required contribution per pay period. This is the amount you pay. Unisys pays the rest, except for long-term disability coverage, which is fully paid by you.

Tax advantage The Program provides a tax-effective way to share the cost of coverage. Contributions are taken from your pay on a before-tax basis (except if you choose the after-tax long-term disability option). Before-tax contributions reduce your taxable income for federal income and Social Security (FICA) taxes, as well as state and local taxes in most jurisdictions.

The before-tax contributions you make for your flexible benefits elections could reduce the annual amount you can contribute to the Unisys Savings Plan. If you are affected by the applicable Internal Revenue Code imposing this limitation, you will be notified.

Coverage for a same-sex domestic partner and your partner’s children may not be extended the same tax-favored status as noted above:

_ You may not be able to make before-tax contributions for their coverage.

_ You may have to pay taxes on the value of their coverage. The value is treated as imputed income.

Your contributions Each option has a required contribution based on a number of factors, such as the terms of your bargaining agreement, changes in premium costs, the option you elect, and the dependents you choose to cover.

Before you enroll, you receive a statement of your options and the contributions associated with each option.

Medical contributions For medical, contributions are based on your bargaining agreement, the medical option you elect, the dependents you choose to cover, and changes to the premium costs.


UAW Local 1313 as of 5/10/99 — 11

Medical opt-out cash incentive: Unisys offers a cash incentive if you decline medical coverage through the company, provided you have medical coverage elsewhere as noted below. You can use this cash to spend on other benefits, fund a reimbursement account, or take as taxable additions to your pay. Note: if you opt out, Unisys assumes you have coverage elsewhere.

_ If you have group medical coverage or individual medical coverage elsewhere (for example, coverage as a dependent through your spouse’s employer, post-retirement coverage from another employer, coverage through a professional organization, or medical coverage due to prior military service), you can opt out of the Unisys medical options and receive a cash incentive. (Note: The loss of coverage through an individual medical plan is not a change in status that would allow you to make a change in your medical election.)

_ If you are married to another Unisys employee, some restrictions may apply. Refer to page 14 for additional information.

_ If you are eligible for Medicare, federal law does not allow you to opt out of the medical coverage through Unisys and receive a cash incentive. However, you may opt out and receive the cash incentive if you have coverage primary to Medicare under another group plan.

_ If you or your eligible dependents are eligible for Medicaid, you cannot:

· decline coverage through Unisys for those eligible for Medicaid

· opt out of medical coverage and receive the cash incentive

(Note: The end of Medicaid coverage is not a change in status that would allow you to make a change in your medical election.)

Dental contributions Contributions for dental vary based on the family members you choose to cover. Required contributions are subject to change each year.

Each year, Unisys determines how much of the cost of dental coverage the company will pay. Once the amount of the company contribution is determined, the required employee dental contribution is established as the difference between the projected cost of coverage and the company’s contribution.

Dental opt-out cash incentive: Unisys offers a cash incentive if you decline dental coverage through the company. You can use this cash to spend on other benefits, fund a reimbursement account, or take as taxable additions to your pay.

You do not need dental coverage elsewhere to opt out of the Dental Plan. If you are married to another Unisys employee, some restrictions apply. Refer to page 14 for additional information.

If you elect to opt out of dental coverage, your choice is in effect for two enrollment periods.


12 — UAW Local 1313 as of 5/10/99

Long-term disability (LTD) contributions This optional coverage is fully paid by you.

LTD contributions depend on your pay as of the last payday in August of the preceding year (or your date of hire, if later) and the rate per $100 of pay charged by the insurance company providing the LTD policy.

For purposes of the Unisys Long-Term Disability Plan, pay is defined beginning on page 97.

Life insurance and AD&D contributions Company-Provided Life Insurance is provided by Unisys in the amount of one and one-half times your annual pay. Accidental Death & Dismemberment Insurance (AD&D) is provided by Unisys in the amount of one times your annual pay.

For purposes of determining your coverage amounts for Company-Provided Life and AD&D, the definition of pay is determined under the terms and conditions in effect as of May 10, 1999 for Company-Provided Life Insurance for active non-bargaining Unisys employees. This is the same definition of pay for the LTD option that includes base pay plus supplemental pay. (The definition begins on page 98).

YOUR CHOICES Under the Flexible Benefits Program, you determine your coverage by choosing among options in the benefit areas shown on the charts on the following two pages. For medical and dental, you also choose which family members to cover.


UAW Local 1313 as of 5/10/99 — 13

Benefit area

Choose whom to cover

Choose coverage option

No one

No coverage

Participant only (just yourself)

Medical

Health Alliance Plan (HAP) HMO

Participant + one (yourself plus one dependent)

Participant + two or more (yourself plus two or more dependents)

Blue Cross Indemnity Plan (CMM100)

Benefit area

Choose whom to cover


No one

No coverage

Participant only (just yourself)

Dental *

Participant + spouse (yourself and your spouse)

Coverage under the Unisys Dental Plan

Participant + child(ren) (yourself and your children)

Family

ENEFITS PROGRAM

UAW Local 1313 as of 5/10/99

(yourself, your spouse, and your children)

* election effective 2 enrollment periods


UAW Local 1313 as of 5/10/99 — 15

Benefit area

Choose option

Choose contribution option

No coverage

Long-Term Disability (LTD)

Before-tax contributions

contributions made with before-tax dollars; if later eligible for benefits, LTD payments are taxable income

Base pay only

coverage/contribution on base pay only

Base pay plus supplemental pay

coverage/contribution on base pay plus supplemental pay

After-tax contributions

contributions made with after-tax dollars; if later eligible for benefits, LTD payments are not taxable for federal or most state income tax purposes

Benefit area

No need to make a choice

Company-Provided Life Insurance

One and one-half times pay

Benefit area

No need to make a choice

Accidental Death & Dismemberment Insurance

One times pay

Benefit area


Reimbursement Accounts

Health Care Reimbursement Account

before-tax contribution up to $3,000 per year

ENEFITS PROGRAM


Day Care Reimbursement Account

before-tax contribution up to $5,000 per year ($2,500 if married and filing a separate income tax return)


UAW Local 1313 as of 5/10/99 — 17

Restrictions involving your choices

Unisys families — two eligible Unisys employees Medical restrictions: There are certain restrictions that apply to Unisys families for medical coverage:

_ If you are an eligible Unisys employee in UAW 1313 and your spouse or domestic partner also is an eligible Unisys employee in UAW 1313, one of you can opt out of medical coverage and receive the cash incentive while the other elects to cover you as a dependent.

_ If your spouse or domestic partner is a full-time non-bargaining Unisys employee, your spouse or domestic partner cannot opt out of medical coverage, be covered as your dependent, and receive a cash incentive for opting out of medical coverage. You may not be considered a covered dependent under your spouse or domestic partner’s Unisys medical coverage. And your children may not be covered under both plans.

_ If your spouse or domestic partner is a part-time non-bargaining Unisys employee eligible to participate in the Unisys Flexible Benefits Program, your spouse or domestic partner may opt out of medical coverage and be covered as your dependent. There is no cash incentive to do so.

Dental restrictions: There are certain restrictions that apply to Unisys families for dental:

_ If you are a full-time Unisys employee and your spouse or domestic partner is a full-time Unisys employee

· You cannot opt out of dental coverage, be covered as a dependent by your Unisys spouse or domestic partner and receive the cash incentive.

· You or your Unisys spouse/domestic partner can elect to cover dependent children, but both of you cannot cover the children.

· If you both opt out of dental coverage, only one of you can receive the cash incentive. The incentive is paid to the Unisys employee whose birthday is earlier in the year.

_ If you are an eligible employee in UAW 1313 and your dependent is a part-time non-bargaining Unisys employee:

· You may choose to cover yourself — if you do, your Unisys spouse or domestic partner may not also cover you as a dependent.

· You may choose to cover yourself and your children — if you do, your Unisys spouse or domestic partner may not also cover you or the children.

· You may choose to cover yourself and all of your eligible dependents — if you do, your Unisys spouse or domestic partner may not also cover the same family members.


18 — UAW Local 1313 as of 5/10/99

Your choices could affect subsequent enrollment choices The choices you make when you enroll in the Flexible Benefits Program could affect or restrict the choices you subsequently are allowed to make — either during an annual enrollment or as the result of a status change (see information beginning on page 21). The following information should be considered before you make your elections.

Dental: Unlike decisions in other benefit areas, dental choices stay in effect for two enrollment periods.

This restriction protects the Plan from adverse selection. Since major dental work tends to be expensive and predictable, enrollment changes every year would enable participants to schedule most dental care in a year when coverage is elected and postpone care in a year when no coverage is elected. This would increase the overall cost of the dental plan for you and the company.

The following example illustrates how the two-enrollment-period restriction works.

Assume Marilyn elects no dental coverage as of January 1, 1999. Her next opportunity to join the Plan is the annual enrollment period for coverage effective January 1, 2001.

If Marilyn does not join the dental plan effective January 1, 2001, she can join the Plan during the annual enrollment period for coverage effective January 1, 2002, since her dental election already was in effect for at least two enrollment periods.

If Marilyn joins the plan effective January 1, 2002, a new two-year restriction is in place and she is not eligible to opt out of coverage for two enrollment periods, until January 1, 2004.

The two-enrollment-period restriction applies to the option you choose and to your selection of dependents to be included. However, if you are a participant and you experience a status change while you are under the two-enrollment-period restriction, you may be able to change your family members covered. (See information beginning on page 21.)

The two-enrollment-period does not apply in the limited circumstances noted on page 22.


UAW Local 1313 as of 5/10/99 — 19

Unisys Long-Term Disability Plan (LTD): If you decline coverage under the Unisys LTD Plan — or if you were ever denied coverage under one of the company's long-term disability plans — and at a later date you decide you want to participate, your LTD coverage begins on the first day you work your normal full-time schedule after the Unisys Benefits Service Center is notified that you have submitted satisfactory proof of your good health within required time frames and Hartford Life has approved your coverage.

Health Care Reimbursement Account: You may be allowed to increase participation, begin participation or cease participation in the Health Care Reimbursement Account as the result of a status change. (See information beginning on page 21.)

Your Health Care Reimbursement Account election does not carry forward from one year to the next without a new election.

Day Care Reimbursement Account: You may be allowed to change your Day Care Reimbursement Account election as the result of a status change. (See information beginning on page 21.)

Your Day Care Reimbursement Account election does not carry forward from one year to the next without a new election.


20 — UAW Local 1313 as of 5/10/99

HOW TO ENROLL The Internal Revenue Service (IRS) requires that irrevocable elections be registered in advance of the enrollment period. Once the enrollment deadline passes, your elections are officially registered. You may later change your elections if you experience a change in status that allows you to change your elections. (See information beginning on page 21.)

New employees You have 30 calendar days, measured from your date of hire or, if later, the date you first become eligible for the Program, to enroll in:

_ Unisys Long-Term Disability Plan

_ Health Care Reimbursement Account

_ Day Care Reimbursement Account

During this 30-day period, it is assumed that you want to participate in the Long-Term Disability Plan on an after-tax basis, unless you submit a written waiver of participation in the Plan.

Medical and dental coverage: You have until the day before the end of the applicable waiting periods for medical and dental coverage (six months and 18 months respectively) to enroll for these coverages.

Before each enrollment deadline, you receive personalized enrollment materials and instructions.

Your medical and dental elections become effective on the later of:

_ the first of the month concurrent with or immediately following completion of the required waiting periods

_ the day you call the Unisys Benefits Service Center, as long as the call is received within 30 calendar days of your eligibility for the coverage

For medical or dental coverage to become effective, you must still be actively employed and not on an approved unpaid leave of absence at that time. If you are on an unpaid leave of absence, your elections become effective when you return to work, provided you met the required waiting period before your leave of absence started.

If your enrollment is not registered within the 30-day period, Unisys is required to make choices for you. Default coverage is assigned to you (see page 18).


UAW Local 1313 as of 5/10/99 — 21

.Annual enrollment Because your needs could change, you have the opportunity to make flexible benefits decisions each year. You are encouraged to reexamine your benefit elections and make any allowable changes you feel are necessary to meet your needs for the following year.

Before you make benefit decisions during an annual enrollment, you receive personalized enrollment materials.

If you do not register your benefits changes by the enrollment deadline, your current year's coverages, if available, continue into the next year at new contribution levels. The exceptions are reimbursement account elections. These do not carry forward from one year to the next.

IF YOU FAIL TO ENROLL Unisys is required by federal law to have choices registered in advance of the enrollment period for each participant in the Program. Therefore, if you don't register your elections by the enrollment deadline, Unisys is required to make your benefit choices for you. The coverages assigned to you are referred to as “default coverage.”

Default coverages for new hires (or newly eligible individuals) and the annual enrollment are defined below and on the following two pages.

If your coverage under the Flexible Benefits Program ends for any reason and you subsequently return to work, special provisions may apply to your default coverage. Refer to page 31.

Default coverage for new hires or newly eligible individuals Unisys wants you to register your elections to reflect the options you feel best suit your benefit needs. If you fail to do so by the enrollment deadlines. Unisys is required to make choices for you. The choices assigned by Unisys are collectively called “default coverage.”

Default coverage applies to different programs and time frames, depending on your length of employment, as noted in the chart on the following page.


22 — UAW Local 1313 as of 5/10/99

Default coverage after first month of employment Coverage

Eligible full-time employees

Effective date

calendar day 31

Long-term disability (LTD)

No coverage — satisfactory proof of good health required for future enrollment

Reimbursement accounts

None

Default medical, S&A and insurance coverages after six months Coverage


Effective date

first of month coincident or following the month in which you are actively at work for six calendar months

Medical

No coverage — no cash incentive for first enrollment period

S&A benefits

Covered

Company-Provided Life Insurance

Covered: one and one-half times pay

AD&D Insurance

Covered: one times pay

Default dental coverages after 18 months Coverage


Effective date

first of month coincident or following the month in which you are actively at work for 18 calendar months

Dental

No coverage — for two enrollment periods; no cash incentive for first enrollment period

Unless you have a status change as described beginning on page 21, once you are assigned default coverage:

_ you cannot change your LTD, medical or reimbursement account options until the next annual enrollment period

_ you are not able to participate in the Unisys Dental Plan for two enrollment periods


UAW Local 1313 as of 5/10/99 — 23

Default coverage for annual enrollment If you don't register benefit changes by the annual enrollment deadline, your benefit options for the previous year — using the new contribution rates — remain in effect. The exceptions are reimbursement account elections. These do not carry forward into the next year without a new election.

Once you are assigned default coverage, you cannot change your options until the next annual enrollment period, unless you have a status change as described beginning on page 21.

INTERIM COVERAGE During the first 30 calendar days of employment, or until the date you call the Unisys Benefits Service Center, if earlier, interim coverage is assigned to you.

Interim coverage Long-term disability (LTD)

After-tax participation assumed, unless a coverage waiver is signed or unless you previously declined and/or were denied LTD coverage under one of the company's LTD plans

Reimbursement accounts

None

Interim coverages differ if you are in an active employment status with Unisys immediately prior to becoming eligible as an employee in UAW Local 1313. In this case, your service before your date of transfer counts and determines which programs are effective following your transfer:

_ If you already worked for Unisys longer than the six-month and 18-month waiting periods that apply to certain coverages for UAW Local 1313: the benefits provided under the plans in effect prior to your transfer apply until the date you call the Unisys Benefits Service Center to register your new elections or the 31st calendar day following your transfer, whichever is sooner. If you have not called by the 31st calendar day following your transfer, the default coverages noted for newly eligible employees in UAW Local 1313 apply (with the exception of LTD; LTD is defaulted to your election before your transfer date and the rate of pay that applies is your annualized base rate of pay following your transfer).

_ If you have not yet worked for Unisys longer than the six-month and 18-month waiting periods that apply to certain coverages for UAW Local 1313: you must wait until the balance of the waiting period(s) are met before you can participate. If you were eligible for medical and dental coverage prior to your date of transfer, you may continue your prior coverage through COBRA (see page 135).

If your coverage ends and you subsequently are reemployed, special provisions may apply (see page 31).


24 — UAW Local 1313 as of 5/10/99

CHANGING ELECTIONS: STATUS CHANGES You can change some benefit elections during the year if all of the following apply:

_ You have a change in status as described in the following pages.

_ The election you request is consistent with the circumstances of your status change or is allowable under the provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). For example, the birth of a child would allow you to add coverage for children; it would not allow you to drop coverage for a spouse.

_ Within 30 calendar days of the status change, you request the allowable changes in your benefit elections by contacting the Unisys Benefits Service Center at the telephone number listed in front of this booklet.

Timing of changes Allowable benefit changes are effective on the date of the status change, provided the changes are registered through the Unisys Benefits Service Center within 30 calendar days following the date of the status change.

Failure to register new dependents within the 30-calendar-day deadline prohibits you from adding them to your health-care coverages until the next annual enrollment.

Special note regarding newborns and newly adopted Your newborn or newly adopted child is covered for the first 30 calendar days immediately following birth or adoption, provided you notify the Unisys Benefits Service Center of your new child within 30 calendar days of birth or adoption.

If you fail to notify the Unisys Benefits Service Center of your new child within 30 calendar days following birth or adoption, the baby will have no medical coverage from the date of birth or adoption until the date you contact the Center. Once you do call, the child will be added to your coverage effective on the date of your call if you are enrolled in the Blue Cross Indemnity Plan (CMM100). Contributions for your baby will be made on an after-tax basis. Coverage will not be retroactive to the date of birth or adoption; it will apply only from the date of your call forward, assuming your medical plan will accept the newborn.

If you are enrolled in HAP HMO and miss the 30-day deadline, the HMO may refuse the coverage change until the next annual enrollment. In this case, your new child will not be covered until the first of the following year, assuming you add the child during the next annual enrollment.

Dependents no longer eligible for coverage Medical and/or dental coverage ends effective on the date a dependent no longer qualifies for coverage. This is true whether or not you contact the Unisys Benefits Service Center to change coverage for family members.

You can call the Unisys Benefits Service Center at the number listed in front of this booklet at any time to indicate that your former dependent no longer is eligible, including beyond the


UAW Local 1313 as of 5/10/99 — 25

usual 30-day time frame. There are no retroactive adjustments to your contributions if you fail to provide timely notice.


26 — UAW Local 1313 as of 5/10/99

Restrictions involving status changes Generally, the benefit changes you request must be consistent with the circumstances of your status change. Further, if your current enrollment choices restrict you from electing certain options, the restrictions (as noted below and in the section beginning on page 15) continue to apply.

Dental In general, a two-year enrollment restriction applies to participation or opting out of the dental plan. In the event of a status change, you cannot add or drop dental coverage for yourself. If you are a Plan participant, you can change your family members covered consistent with the circumstances of your status change.

If you do not contact the Unisys Benefits Service Center within 30 calendar days of your status change, you may not add coverage for a new spouse, a new domestic partner, or a new child until the next enrollment period in which you are eligible to make dental changes.

There is an exception, however. If all three conditions below are met, you can change from an opt-out to participation in the dental plan.

1. You declined participation in the Unisys Dental Plan for yourself or your dependents due to dental coverage through your spouse’s employer or your domestic partner’s employer.

2. Dental coverage is involuntarily lost because either:

· Your spouse or domestic partner loses dental benefits due to the loss of employment.

· You or your dependents no longer qualify under the other employer’s plan. (For example, due to divorce or dissolution of the domestic partnership.)

3. Within 30 calendar days of the date coverage is lost, you call the Unisys Benefits Service Center to request dental coverage for yourself and any eligible dependents previously covered under the other employer’s plan.

Unisys Long-Term Disability Plan (LTD) If you request LTD participation as a result of a status change, you are required to provide satisfactory proof of good health. Coverage is effective the first day you work your normal full-time work schedule after the Unisys Benefits Service Center is notified that you have submitted satisfactory proof of good health and Hartford Life has approved your coverage.

Status changes/allowable benefit changes The information on the following pages indicate the status changes that allow you to make benefits changes, as well as the changes you are allowed to make. If you drop coverage for dependents following a status change, COBRA is not available to your dependents unless the status change also is one of the qualifying events described in the section beginning on


UAW Local 1313 as of 5/10/99 — 27

page 135.


28 — UAW Local 1313 as of 5/10/99

Benefit changes allowed within 30 calendar days of status change: Type of status change:

Marriage* Benefit Program

Benefit changes you can make

Medical if you already are eligible to participate

· Add new spouse and stepchildren residing with you (if you

previously did not cover your own children, you cannot add them)

· Add coverage if you previously had opted out of coverage · Change from one medical option to the other · Drop coverage if your new spouse’s employer covers you

Dental if you already are eligible and you participate

Add new spouse and stepchildren residing with you · If you previously did not participate, you are not eligible to

participate until after you meet any two-enrollment-period restriction

· If you did not cover your own children prior to your marriage, you cannot add them

Long-term disability

Add coverage subject to satisfactory proof of good health


· Begin participation · Increase participation · Stop participation


· Begin participation · Increase participation · Decrease participation · Stop participation

* If you begin a same-sex domestic partner relationship, you are eligible to make the same

benefit changes as noted above for marriage. However, before coverages become effective for your domestic partner (and your partner’s children who reside with you, if any), within 30 calendar days of the date the relationship begins you must request the benefit changes and submit a completed Declaration of Domestic Partnership form. The form is available upon request from the Unisys Benefits Service Center at the telephone number listed in front of this booklet.

You may not cover a different same-sex domestic partner within the 12-month period following the date coverage ends for anyone else covered through Unisys as your same-sex domestic partner.


UAW Local 1313 as of 5/10/99 — 29

Benefit changes allowed within 30 calendar days of status change (continued): Type of status change:

· Divorce* · Legal separation · Annulment · Death of spouse*

Benefit Program



· Drop coverage for former spouse and stepchildren

Note: if you previously covered your own children, you cannot drop coverage for them

· Add coverage for yourself and your children who were: - previously not covered through Unisys and - were covered under your former spouse’s medical

plan Dental if you already are eligible to participate

· Drop coverage for former spouse and stepchildren

Note: if you previously covered your own children, you cannot drop coverage for them

· Add coverage for yourself and your children who were: - previously not covered through Unisys and - were covered under your former spouse’s dental plan




· Begin participation · Increase participation · Stop participation


· Begin participation · Increase partic ipation · Decrease participation · Stop participation

* If your same-sex domestic partnership ends or your partner dies, you are eligible to

make the same benefit changes as noted above. However, you must submit a completed Declaration of Termination of Domestic Partnership form within 30 calendar days of the date the partnership ends. The form is available upon request from the Unisys Benefits Service Center at the telephone number listed in front of this booklet.



30 — UAW Local 1313 as of 5/10/99


· Spouse* loses employment (or begins an unpaid leave) · Spouse* loses benefits due to reduction in hours · Spouse’s* employer eliminates employer subsidy for benefits

Benefit Program



· Add coverage in your current medical option for eligible

family members previously covered under spouse’s plan · Add coverage for those previously covered under spouse’s

plan · Change from one medical option to the other

Dental if you already are eligible to participate

Add coverage for yourself and/or eligible family members previously covered under spouse’s plan




· Begin participation · Increase participation


· Decrease participation · Stop participation

* If your same-sex domestic partner loses employment, goes on an unpaid leave of

absence, or loses benefits due to a reduction in hours, you are eligible to make the same benefit changes as noted above for a spouse in similar circumstances. However, before coverages become effective for your domestic partner (and your partner’s children who reside with you, if any), within 30 calendar days of the event you must request the benefit changes and submit a completed Declaration of Domestic Partnership form. The form is available upon request from the Unisys Benefits Service Center at the telephone number listed in front of this booklet.



UAW Local 1313 as of 5/10/99 — 31


· Spouse* gains employment · Spouse* returns to work following an unpaid leave of absence

Benefit Program

Changes you can make

Medical

Drop coverage for yourself or dependents covered under spouse’s plan

Dental

Drop coverage for dependents covered under spouse’s plan (but not for yourself)


Stop participation



* If your same-sex domestic partnership gains employment or returns to work following

an unpaid leave of absence, you are eligible to make the same benefit changes as noted above for a spouse gaining employment or returning to work following an unpaid leave of absence.


32 — UAW Local 1313 as of 5/10/99


· Birth of a child · Adoption or placement of a child for adoption*

Benefit Program



· Add your spouse and all family members to your current

medical option, provided the new child is included in your election

· Add coverage for yourself and all family members, if you previously opted out of medical coverage and the new child is included in your election

Dental if you already are eligible and you participate

Add the new child







* Refer to the information on page 21 regarding the availability of medical coverage if you

fail to notify the Unisys Benefits Service Center of the birth of a newborn or a newly adopted child within 30 calendar days.


UAW Local 1313 as of 5/10/99 — 33


· Obtain guardianship of a child · Obtain custody of a child · Comply with a Qualified Medical Child Support Order (QMCSO)

Benefit Program



· Add coverage under your current medical option only for

the new child · Change from one medical option to the other, provided the

new child is included in your election · Add coverage for yourself and the new child, if you

previously opted out of medical coverage Dental if you already are eligible and you participate

Add coverage for the new child if you participate in the plan








34 — UAW Local 1313 as of 5/10/99


Dependent child loses eligibility due to: · age · loss of full-time student status · marriage · death

Benefit Program


Medical

Drop coverage for that child

Dental

Drop coverage for that child


Stop participation


· Decrease participation · Stop participation


UAW Local 1313 as of 5/10/99 — 35

Status change/benefit changes allowed within 30 calendar days of event (continued): Type of status change:

Household move Benefit Program



· Change to Blue Cross CMM100 if you move out of the

HAP service area · Change to HAP if you move from a non-HAP service area

to a HAP service area Health Care Reimbursement Account

· Begin participation if you are required to change your

medical option due to movement out of the HAP service area

· Increase participation if you are required to change your medical option due to movement out of the HAP service area

· Stop participation if you are eligible to join HAP and do so as the result of your move


If your move results in a change in day-care providers: · Begin participation · Increase participation · Decrease participation · Stop participation

Type of status change:

COBRA continuation period exhausted Benefit Program



· Add coverage for yourself if you previously opted out of

medical coverage due to COBRA coverage · Add your dependents to your medical coverage, but only

those you previously did not cover because they participated in COBRA coverage


36 — UAW Local 1313 as of 5/10/99

WHEN COVERAGE ENDS & CONTINUATION OPTIONS Generally, your benefit coverages end during periods for which you receive no pay and/or you are not in an active employment status. You may be eligible to continue health-care coverage through COBRA after your benefits end.

For important information about when your benefit coverages end, company-sponsored COBRA coverage (available in cases of workforce reduction or layoff, disability leave of absence, approved unpaid leave of absence, or death) and COBRA coverage in general, refer to the section beginning on page 131.

RETURN TO WORK AFTER COVERAGE ENDS If your coverage ends for any reason, and you subsequently are reemployed, you must again meet the waiting periods for participation in the various benefit programs.

If you were not previously enrolled in the LTD Plan when your employment ended, satisfactory proof of good health is required and must be approved by Hartford Life before participation in the LTD Plan begins.

Workforce reduction or approved leave of absence Time while you are not working does not count toward meeting eligibility waiting periods.

If your termination was due to a workforce reduction and you return to work within your recall period, you do not need to wait six months for your medical, life, AD&D and S&A coverages to become effective or 18 months for your dental coverage to become effective.

_ If you met these waiting periods before your workforce reduction, no new waiting periods apply.

_ If you did not meet the waiting periods before your workforce reduction, only the unmet balance of the waiting period applies.

A return to work before the expiration of an approved leave of absence is treated the same as a recall during your recall period.


UAW Local 1313 as of 5/10/99 — 37

If you are reemployed in the same enrollment period If you are reemployed by Unisys and complete any required waiting periods in the same enrollment period during which coverage ended, the benefit elections in effect when your coverage ended are reinstated after you again meet the eligibility requirements.

For example, assume Janet resigns February 10 and is rehired May 15. At the time of her resignation, assume she was in Blue Cross CMM100 for herself and one dependent, the Unisys Long-Term Disability Plan (LTD) on an after-tax basis, and a Health Care Reimbursement Account.

When Janet returns, LTD and Health Care Reimbursement Account participation are reinstated immediately. Participation in Blue Cross CMM100 will be reinstated December 1 (the first of the month after she has six months of current service).

Any change you make due to a status change during your COBRA period is reflected in the reinstated coverages. These coverages cannot be changed for the balance of the enrollment period unless you have another status change that allows you to reexamine your benefit elections.

For example, keep all of the previous assumptions about Janet, but this time also assume that she gets married after her resignation and adds her new husband to her COBRA coverage within 30 calendar days of the marriage. In this case, her participation in the medical plan reinstated as of December 1 will include her new spouse.

If you are reemployed in a subsequent enrollment period If you are reemployed by Unisys and complete any required waiting periods in an enrollment period subsequent to the one during which coverage ended, you must make new benefits elections that become effective as if you are a new hire.

There is one exception: if you were eligible for company-sponsored COBRA and it is still in effect when you again meet the eligibility requirements, you continue to be covered by the choices in effect immediately prior to your reemployment — including any changes you made due to a status change or annual enrollment — plus after-tax LTD coverage, provided you were enrolled in the LTD Plan when your coverage previously ended.

38 — UAW Local 1313 as of 5/10/99

YOUR MEDICAL OPTIONS

Complete details on covered services, exclusions, limitations, how the plan works, and grievance procedures are contained in the following documents available from the plans:

_ for Health Alliance Plan (HAP), in the HMO Subscriber Contract

_ for Blue Cross Indemnity Plan (CMM100), in the Certificate of Insurance, reference Group #69900

MEDICAL OPTIONS

UAW Local 1313 as of 5/10/99 — 39

INTRODUCTION The medical options available through Unisys are:

_ the Health Alliance Plan (HAP) HMO

_ the Blue Cross Indemnity Plan (CMM100) — this option includes the mail-service prescription coverage described beginning on page 36

If you participate in one of these medical options through Unisys, you also decide which of your eligible dependents to cover under the option you elect.

If you experience a status change, you may be able to change your medical option and/or family members covered, depending on the type of status change. Refer to the information beginning on page 21.

In addition to the two medical options noted above, you can opt out of medical coverage through Unisys and receive a cash incentive if you meet the criteria noted on page 10.

Note: Special provisions apply with respect to your medical elections if you and any of your dependents are full-time Unisys employees. See page 14.

MORE INFORMATION ABOUT YOUR MEDICAL OPTIONS Complete details on covered services, exclusions, limitations, how the plan works, and grievance procedures are contained in the following documents available from the plans:

_ for the HAP HMO, in the HMO Subscriber Contract

_ for the Blue Cross Indemnity Plan (CMM100), in the Certificate of Insurance, reference Group # 69900

Information about the Mail Service Prescription Drug Program that supplements the Blue Cross Indemnity Plan begins on page 36.

MEDICAL OPTIONS

40 — UAW Local 1313 as of 5/10/99

NEWBORNS’ AND MOTHERS’ HEALTH PROTECTION ACT Under federal law, group health plans and health insurance issuers offering group health insurance coverage generally may not restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child to less than 48 hours following a vaginal delivery, or less than 96 hours following a Cesarean section. However, a shorter stay may be paid if the attending provider (for example, the attending physician, nurse, midwife or physician assistant), after consultation with the mother, discharges the mother or newborn earlier.

Also, under federal law, plans and issuers may not set the level of benefits or out-of-pocket costs so that any later portion of the 48-hour (or 96-hour) stay is treated in a manner less favorable to the mother or newborn than any earlier portion of the stay.

In addition, a plan or issuer may not, under federal law, require that a physician or other health-care provider obtain authorization for prescribing a length of stay of up to 48 hours (or 96 hours). However, to use certain providers or facilities, or to reduce your out-of-pocket costs, you may be required to obtain precertification. For information on precertification, contact your plan.

WOMEN’S HEALTH AND CANCER RIGHTS ACT OF 1998 The Women’s Health and Cancer Rights Act requires group health plans that provide coverage for mastectomies to also cover reconstructive surgery and prostheses following mastectomies. The law mandates that a member receiving benefits for medically necessary mastectomy who elects breast reconstruction after the mastectomy, will also receive coverage for:

_ reconstruction of the breast on which the mastectomy has been performed

_ surgery and reconstruction of the other breast to produce a symmetrical appearance

_ prostheses

_ treatment of physical complications of all stages of mastectomy, including lumphedemas

This coverage will be provided in consultation with the attending physician and the patient and will be subject to the same annual deductibles and coinsurance provisions that apply for the mastectomy.

If you have any questions about your coverage for mastectomies and reconstructive surgery, you are encouraged to contract your plan.

MAIL SERVICE PRESCRIPTION DRUG PROGRAM — FOR THOSE IN BLUE CROSS CMM100

UAW Local 1313 as of 5/10/99 — 41

MAIL SERVICE PRESCRIPTION DRUG PROGRAM If you participate in the Blue Cross Indemnity Plan (CMM100), you and your covered dependents are eligible for the Mail Service Prescription Drug Program.

Merck-Medco Rx Services is the mail-service pharmacy.

Through this program, you receive the prescribed amount of medication, up to a 90-day supply. The prescribed medications are delivered directly to your home.

Note: There are no coordination of benefits provisions under the Mail Service Prescription Drug Program.

Copayment rate for mail-service program The mail-service copayment is the lower of $12 or the amount contracted with Merck-Medco Rx Services.

The charge for a covered prescription in excess of $12 is paid by the Program at 100 percent. The copayment does not apply to your Blue Cross Indemnity Plan deductible or out-of-pocket maximum, if applicable.

The mail-order copayment can be reimbursed through a Health Care Reimbursement Account (information begins on page 67).

Generic drug provisions The generic name of a drug is its chemical name. The brand name is the trade name under which the drug is advertised and sold. By law, generic and brand-name drugs must meet the same standards for safety, purity, strength and effectiveness. Unless your physician directs otherwise, the generic equivalent is dispensed when available and permissible by law.

Merck-Medco Rx Services maintains a generic drug price list. If a brand-name drug is requested by you or your physician — for example, your doctor indicates “dispense as written” (DAW) on your prescription — when one of the listed generic drugs is available, you pay the usual copayment plus the full difference in cost between the brand-name price and the established generic unit price on Merck-Medco’s generic drug price list. The difference in cost is not a covered expense.

If payment for the difference between the brand-name drug and the generic drug is not submitted with the usual mail-order copayment, you are billed. (Note: medications are not dispensed if you have a balance due of more than $50.)


42 — UAW Local 1313 as of 5/10/99

If your physician indicates that you must receive the brand-name medication for specific, medically supported reasons, your physician’s office is contacted and asked to document the medical necessity for the brand-name drug, or you can submit the documentation with your prescription. The process is similar to preauthorization as noted below. Upon evaluation of this data, the brand-name prescription is either:

_ approved at the usual mail-order copayment and the difference between the brand-name drug and the generic drug is waived

_ denied due to lack of data supporting the medical necessity for the brand-name drug — in this case, you are required to pay the full difference in cost between the brand-name price and the established generic unit price in addition to your usual mail-order copayment each time you receive the drug

Note: If a brand-name drug is a single-source brand — in other words, it does not have a generic equivalent — you are charged the usual copayment.

Also note: generic drugs may be introduced during the course of time covered by your refillable prescription. The generic drug provisions apply to refills requested on or after the date the generic becomes available, even if the provisions did not apply for your initial prescription and subsequent refills.

Preauthorization Prescriptions for selected medications or products require approval before being dispensed for the usual copayment. A pharmacist from Merck-Medco Rx Services will contact your physician if any of the following are prescribed:

_ oral contraceptives or contraceptive devices — must be prescribed for purposes other than birth control

_ Retin-A — must not be for aging skin

_ infertility drugs — must be prescribed to restore normal bodily function

The purpose of the call is to determine if the preauthorization criteria have been met for coverage under the Plan.


UAW Local 1313 as of 5/10/99 — 43

Covered prescriptions In order for a prescription to be covered, it must be medically necessary and the medication must be:

_ prescribed by a physician

_ a supply of 90 consecutive calendar days or less per prescription filled

_ a medicine approved by the Food and Drug Administration (FDA) that cannot be dispensed without a doctor's prescription

_ filled or refilled within one year from the order of the doctor

Also covered are:

_ insulin

_ diabetic supplies such as insulin syringes with needles, blood glucose testing strips, ketone testing strips, urine-glucose testing strips, lancets and lancet devices — a physician's prescription is needed for all diabetic supplies

Prescription medications available through the Blue Cross Indemnity Plan (CMM100) generally are covered by the Mail Service Prescription Drug Program. However, there may be some differences in covered drugs. If you have any questions about coverage for a particular medication prescribed by your physician, call Merck-Medco Rx Services at the telephone number listed in front of this booklet.

Note: If a drug cannot be dispensed through the mail (for example, refrigerated drugs), or if the number of days requested exceeds dispensing limitations, the prescription cannot be filled.


44 — UAW Local 1313 as of 5/10/99

Pharmacy items that are not covered Except where noted, the following drugs, equipment, products or supplies are not covered under the Mail Service Prescription Drug Program:

_ amounts in excess of manufacturer's recommended dispensing limitations

_ appetite suppressants

_ contraceptives or contraceptive devices (except where medically necessary for purposes other than birth control — requires preauthorization as noted earlier)

_ durable or disposable medical devices such as crutches, glucometers, ostomy or colostomy supplies, and nebulizers

_ infertility medications (except to restore a normal bodily function — requires preauthorization as noted on the following page)

_ investigational medications; medications with no approved FDA indications; medications used for investigational indications and/or investigational dosage regimens

_ medications for cosmetic purposes only (for example, Retin-A for aging skin or Rogaine/Minoxidil for hair growth stimulation — these drugs if used for other purposes, requires preauthorization as noted earlier)

_ medications covered under Workers' Compensation Act or similar legislation

_ over-the-counter medications or equivalents that do not require a physician's authorization by state or federal law, including prescribed medications that have an over-the-counter equivalent, or over-the-counter smoking cessation products

_ prescriptions filled or refilled after one year from the order of the doctor

_ replacements for prescriptions that have been lost, stolen or broken

_ vitamins, minerals, food supplements, or food substitutes/nutritional supplements for any reason


UAW Local 1313 as of 5/10/99 — 45

Requesting prescriptions — EasyRx_ EasyRx is Merck-Medco’s name for their process for ordering new prescriptions and refill medications from the mail-service pharmacy.

Pamphlets that include information on the mail-service program, a Patient Profile Questionnaire and an order envelope are mailed to your home.

Patient Profile Questionnaire With your first order — or beforehand, if you prefer — complete the Patient Profile Questionnaire. Answer all the questions for yourself and your covered dependents. Make certain to include your Social Security number.

To order a new prescription through the mail Merck-Medco Rx Services cannot accept refills for prescriptions originally filled in any other pharmacy. You must obtain a new prescription when ordering from Merck-Medco Rx Services.

Allow 14 calendar days for delivery from the date you mail your order.

1. Ask your physician to prescribe up to a 90-day supply plus refills, if appropriate.

2. Mail your prescription and your copayment, using your preferred payment method, in the order envelope provided with your other materials on the program.

3. Your order is processed promptly — normally within 48 hours.

4. Your medication is sent to you via U.S. Mail or UPS; included with your medication is a leaflet explaining the purpose of the drug, correct dosages, and other helpful information.

To order a refill You can order refills in any of three ways:

1. By touch-tone telephone at the telephone number listed in front of this booklet Through the use of voice response technology, 24 hours a day, seven days a week, you can:

_ order refills for most current mail service prescriptions (the exceptions are certain categories of drugs with special dispensing limitations)

_ check the status of a refill prescription order (for example, when was it received, processed, or shipped)

2. Through the Internet at http://www.merck-medco.com The Merck-Medco Internet application allows you to order refills or check the status of a refill, similar to the voice response capabilities noted above. In addition, you can obtain information about safely using prescription drugs and other health information. These services are available 24 hours a day, seven days a week.


46 — UAW Local 1313 as of 5/10/99

_ Go to http://www.merck-medco.com _ Click on Member Services _ Select the application you would like from the menu

3. By mail You receive a refill slip and an order envelope with each shipment from Merck-Medco. You can use this information to request a refill.

Refill requests ordered over the voice response system or Internet for the most frequently prescribed medications are filled by a highly automated pharmacy in Nevada. Requested received by noon are filled the same day.

Mail order requests are processed within 48 hours of receipt.

Some tips for using the mail-service program To ensure prompt processing of your order, check your prescriptions before you leave your doctor's office to make sure that:

_ the doctor's name is legible _ the exact daily dosage is indicated _ the exact strength and quantity are indicated _ the full first and last name of the patient for whom the medication is prescribed is

legible

If you are vision-impaired, upon special request with your order, the pharmacist will provide Braille labels for your medication vials.

Paying for your mail-service prescription Payment may be made by one of the following methods:

_ check _ money order _ billing authorized to your MasterCard®, VISA® or DISCOVER® card

If you are ordering a brand-name drug when a generic equivalent is available, and your doctor indicates that it is medically necessary that the brand-name drug be dispensed, refer to the information beginning on page 36 to determine additional steps that must be taken.

If a brand-name drug is not medically necessary but is requested by you or your physician when a generic equivalent is available, you also must include payment for the difference between the discounted brand-name price and the discounted generic drug price. To determine this difference, call Merck-Medco Rx Services at the telephone number listed in front of this booklet. If the additional payment is not included with your request, you are billed or upon your authorization, your credit cared can be charged. (Note: Medications are not dispensed if you have a balance due of more than $50.)


UAW Local 1313 as of 5/10/99 — 47

If you need help or have any questions You can obtain answers to questions you may have by calling Merck-Medco Rx Services at the telephone number listed in front of this booklet. Emergency pharmacy consultation also is available seven days a week, 24 hours a day at the toll-free number. You also can contact Merck-Medco over the Internet at the address noted on the prior page.

Special services for the disabled If you are hearing-impaired, use the special toll-free number listed in the front of this booklet. If you are vision-impaired, upon special request with your order, the pharmacist will provide Braille labels for your medication vials.

When coverage ends For important information about when your coverage ends, company-sponsored COBRA (available in case of workforce reduction or layoff, disability leaves of absence, approved unpaid leave of absence, or death), and COBRA coverage in general, refer to the section that begins on page 131.

Additional plan information Important information is contained in the section that begins on page 151. The subjects covered include, but are not limited to:

_ administration and funding

_ how to appeal a benefits request determination

_ right to recover excess payments and third-party liability

_ plan termination/revision

_ your rights under ERISA

48 — UAW Local 1313 as of 5/10/99

UNISYS DENTAL PLAN

UNISYS DENTAL PLAN

UAW Local 1313 as of 5/10/99 — 49

YOUR DENTAL OPTIONS Unisys offers one dental plan, the Unisys Dental Plan. MetLife’s Preferred Dentist Program (PDP) is available as part of the Unisys Dental Plan.

Once you meet the 18-month waiting period, you may elect or decline coverage. If you properly enroll and request participation, coverage is effective the first of the month after you meet the 18-month waiting period.

You choose which family members to cover, if any. You may elect to cover different family members under the Dental Plan from those you cover under your medical option. You may cover:

_ just yourself (participant only)

_ yourself and your spouse only (participant and spouse)

_ yourself and your children only (participant and children)

_ yourself, your spouse and your children (family)

Eligible dependents are defined beginning on page 4.

Two-enrollment-period restriction Your dental choice stays in effect for two enrollment periods. This applies to the option you choose and the dependents you include. For more details on this restriction and how it applies to status changes, refer to the information beginning on page 15.

Opt-out provision You may opt out of dental coverage through Unisys and receive a cash incentive. For more information, refer to page 10.

Note: Special provisions apply if you and your dependents work full-time for Unisys. See page 14.

UNISYS DENTAL PLAN

50 — UAW Local 1313 as of 5/10/99

HOW THE DENTAL PLAN WORKS This chart represents how the Plan works for covered dental expenses.

How the Dental Plan works

Type of service

You pay (annual deductible)

Plan pays (coinsurance)

Up to this maximum benefit

è

è

Preventive care: · cleaning and scaling — up to

twice/calendar year · oral exams — up to

twice/calendar year · fluoride for children under age

19 — up to twice/calendar year

· space maintainers · sealants for children under

age 15— once per lifetime

è

100%

è

è

Selected diagnostic care: · bite-wing x-rays — up to

twice/calendar year · full mouth x-rays — once

every 36 months · all other dental x-rays, except

those related to orthodontia

è None

80%

Basic services: simple extractions, fillings, root canal therapy

è

è

80%

è

Major services: crowns, bridges, dentures

è

è

50%

è $1,500 per person per calendar year

Covered oral surgery

è

è 80%

è $1,000 per person per calendar year

$ 50 per person $100 per family

UNISYS DENTAL PLAN

UAW Local 1313 as of 5/10/99 — 51

Orthodontia: · braces, study models, x-rays

and other treatment related to functional malocclusion

· oral appliances for TMJ or bruxism

· periodontal appliances

è

è

50%

è $1,000 per person

per lifetime

UNISYS DENTAL PLAN

52 — UAW Local 1313 as of 5/10/99

THE ANNUAL DENTAL DEDUCTIBLE The deductible is the amount of covered dental expenses you pay each calendar year before the Plan shares the cost of covered expenses.

The $50 annual individual deductible applies separately to each covered person. The $100 annual family deductible applies collectively to all covered persons in the family. When the family deductible reaches $100, no further deductible is applied to the covered dental expenses for any covered family member.

For example, if any one of John’s covered family members reaches the $50 annual individual deductible, the Plan begins to share payments for that individual at the coinsurance rate that applies to the type of services performed. The rest of John’s covered family members can meet the additional $50 annual family deductible as a group, then the full family deductible is satisfied and the balance of covered expenses for the family is shared by the Plan at the appropriate coinsurance rate.

It isn't necessary, however, for any one individual to meet the $50 annual individual deductible. If all John’s covered family members combined meet the $100 annual family deductible, the balance of covered expenses is shared by the Plan at the appropriate coinsurance rate. So, if John has $40 in covered expenses, his wife has $40 and one of his children has $20 in covered expenses, the $100 annual family deductible is satisfied.

Three special notes:

1. While your dental decisions stays in effect for two enrollment periods, the deductible applies separately to each calendar year. The deductible applies to all basic, major, oral surgery and orthodontia expenses.

2. Preventive or selected diagnostic services do not require the satisfaction of the annual deductible. Benefits paid at 100 percent as preventive or 80 percent as diagnostic care are not used to satisfy the deductible because the Plan already has considered these expenses without a deductible.

3. Expenses in excess of the Unisys Dental Plan's Reasonable and Customary guidelines (see page 48) and expenses not covered under the Unisys Dental Plan are not applied toward the annual deductible.

UNISYS DENTAL P


DENTAL COINSURANCE Coinsurance is the portion of covered dental expenses paid by you and the Plan after the deductible amount, if any, is met. Coinsurance percentages differ, depending on the type of service received.

The coinsurance percentage paid by the Plan applies only to covered dental expenses. Charges for non-covered services or supplies (see information beginning on page 58), charges exceeding the Plan's Reasonable and Customary allowances (see page 48) and charges exceeding the least costly method of treatment described in the section on alternative courses of treatment (below), are not payable under the Plan.

ANNUAL AND LIFETIME DENTAL BENEFIT MAXIMUMS Each calendar year, the dental plan provides up to $1,500 in benefits protection for you and dependent you cover.

In addition, there is a separate:

_ lifetime orthodontia benefit maximum of $1,000 per covered person

_ annual covered oral surgery maximum of $1,000 per covered person

Note: Dental and orthodontia expenses incurred on or after April 1, 1988, that are reimbursed under the terms of a program sponsored through a current, future or former subsidiary company count toward the Unisys Dental Plan annual and lifetime dental maximum benefits.

ALTERNATIVE COURSES OF TREATMENT If dental standards indicate that a condition can be treated effectively by a less costly alternative to the service proposed by the attending dentist, the dental plan pays benefits based upon the less costly service.

The Dental Plan relies on accepted dental standards established by the ADA for purposes of reviewing alternative courses of treatment. The type of treatment you choose, however, is always your decision.

UNISYS DENTAL PLAN

54 — UAW Local 1313 as of 5/10/99

REASONABLE AND CUSTOMARY (R&C) The Unisys Dental Plan considers as covered expenses the charges for services that are equal to or below the R&C guideline for the geographic area in which the services are provided, subject to the alternative courses of treatment limitations noted earlier.

MetLife’s standard method of determining R&C is used. Under MetLife’s standard, R&C is the lowest of:

_ the usual charge by the provider for the same or similar services or supplies

_ the usual charge of most other providers in the same geographic area for the same or similar services or supplies

_ the actual charge

To establish R&C charges, MetLife uses data accumulated through internal processing of approximately 11 million claims. MetLife sets the 90th percentile charge as the standard R&C allowance for a procedure code within each MetLife City/State Code (MCSC).

For example, if there are 100 reported claims for cleanings in Plymouth, the eleventh highest charge is the 90th percentile and becomes the R&C value for cleanings in that area.

The 90th percentile is generally accepted as a fair R&C level. It recognizes that charges for a procedure may vary based on location, provider qualifications, or the nature of the specific case within a geographically contiguous area. Full payment is allowed for average charges and for fees somewhat above the average rate. At the same time, charges far in excess of the prevailing fee are reduced.

PREAUTHORIZATION REVIEW To assist you in planning expenses and to avoid surprises, when a covered dental service is expected to exceed $300, the Plan recommends, but does not require, that the proposed course of treatment be submitted to MetLife for preauthorization review.

After the proposed services are reviewed, a preauthorization of benefits statement is issued detailing the benefits payable under the Plan. The statement also indicates expenses that may be subject to the alternative courses of treatment provisions or that exceed the Plan's R&C guidelines. The preauthorization statement is not a guarantee of payment. Payment is subject to your continued participation in the Plan, the actual services provided, and the provisions of the Plan on the date services are rendered.

UNISYS DENTAL P


METLIFE’S PREFERRED DENTIST PROGRAM (PDP) MetLife has developed and administers the Preferred Dentist Program (PDP) available as part of the Unisys Dental Plan.

Over 40,000 providers throughout the U.S. — about one out of every three practicing dental providers — participate in MetLife’s PDP; over 8,600 of these providers are specialists.

Participating dentists undergo an extensive credentialing process. Recredentialing occurs at least every two years.

Treatment patterns of participating providers are monitored to ensure compliance with MetLife utilization standards.

How PDP works Full freedom of choice is available. Each and every time you seek dental care, you may choose a network or non-network provider.

_ If you go to a non-network provider, your covered services are reimbursed under the same coverage provisions and coinsurance rates as apply to network providers — there is no penalty for using providers who do not participate in MetLife’s PDP network.

_ If you use a PDP network provider, the same services are covered — and the Plan’s deductibles and coinsurances still apply — but you receive the services at MetLife’s contracted rates; rates that are lower than the provider normally charges.

_ You receive discounts on all services from PDP providers, including those that are limited or may not be covered under the Unisys Dental Plan — for example, a third cleaning in a year, cosmetic dentistry, or implants rather than dentures.

To maximize your benefits and keep your costs down, you are encouraged to use participating MetLife PDP providers. Whenever you or one of your covered dependents needs dental care, call a participating dentist and make an appointment. Identify yourself as a MetLife PDP member and confirm that the dentist still participates in the PDP network.

UNISYS DENTAL PLAN

56 — UAW Local 1313 as of 5/10/99

An example Perhaps the most effective way of describing the advantages of using a PDP network provider is through an example.

Assume Mary Lou lives in Plymouth Michigan, needs a filling and a porcelain crown, and has already met her annual $50 dental deductible. Assume the rates in Mary Lou’s ZIP code area for these services are: Services

Allowable charges

Negotiated PDP rate

Filling

$ 60.00

$ 37.00

Crown

625.00

583.00

This is how the payments compare: Services

Non-PDP

PDP

Filling: paid at 80%

$60 x .80 =

$ 48.00

$37 x .80 =

$ 29.60

Crown: paid at 50%

$625 x .50 =

312.50

$583 x .50 =

291.50

Plan pays

$ 360.50

$ 321.10

Mary Lou pays

$ 324.50

$ 298.90

In this example, if Mary Lou uses a PDP provider, she saves $25.60 ($324.50 minus $298.90) and the Plan saves $39.40 ($360.50 minus $321.10).

“No cost” exams In addition to the discounts available through the Program, MetLife’s Preferred Dentist Program encourages preventive care.

After your initial examination with a PDP dentist under the Plan, your subsequent periodic exams with that same network dentist are provided at no cost to you or the company (but not cleanings and other services received at the same time).

These “no cost” examinations are not applied to your annual benefit maximum.

If your current provider is a PDP dentist, the no cost examinations apply to all exams subsequent to the first exam you receive under the Preferred Dentist Program.

UNISYS DENTAL P


How to identify PDP providers Questions about a particular provider’s participation in the PDP network can be answered in one of three ways:

1. Ask your dental providers if they participate in the MetLife network — one out of every three dentists belong, so chances are that your dentist may participate in PDP!

2. Look for PDP providers in or near any ZIP Code on the Internet. You can use the Unisys Intranet for a direct link into MetLife’s WEB site or link into the WEB site yourself at http://www.metlife.com/dental

3. Request a directory of participating PDP providers in any ZIP code area by calling the telephone number listed in front of this booklet.

You will be asked to input your Social Security number and the ZIP Code of your choice using a touch-tone keypad. Within one business day, a directory will be mailed to your home address based on your records with Unisys. The directory will have the name, specialty, address and telephone number of PDP providers within a 10-mile radius of the requested ZIP Code.

If your dental provider wants to join PDP If your dental provider currently does not participate in MetLife’s PDP network and is interested in becoming a member, your provider can call MetLife at 1-800-MET-DENT (1-800-638-3368) or use the Internet to express interest in participating in the network.

UNISYS DENTAL PLAN

58 — UAW Local 1313 as of 5/10/99

COVERED EXPENSES AND PROVIDERS The following expenses for services by a covered provider are eligible for consideration under the Plan, subject to meeting both of the following:

_ the dental necessity for the treatment of disease or injury is established _ the services meet accepted uniform standards of dental practice for the

purposes of determining covered services

Covered preventive care

Fluoride The Plan covers up to two topical applications per calendar year for children under age 19.

Oral examinations The Plan covers up to two per calendar year.

Prophylaxis (cleaning and scaling) The Plan covers up to two per calendar year. Any prophylaxis performed, whether regular or periodontal, counts toward the calendar-year maximum.

Sealants The Plan covers a single application of sealants per lifetime for children under age 15. To be covered, the treatment must be for non-carious, non-restored first molars, second molars, first bicuspids or second bicuspids.

Space maintainers Space maintainers are covered under the Plan when necessary to retain space created by early tooth loss.

Covered selected diagnostic care

Bite-wing x-rays The Plan covers up to two sets of bite-wing x-rays per calendar year.

Full mouth x-rays

UNISYS DENTAL P


The Plan covers full mouth x-rays once every 36 months.

Other dental x-rays All other dental x-rays are considered under this section of the Plan except those related to orthodontia.

Tests and laboratory exams The Plan covers tests and laboratory exams relating to acidity levels, susceptibility and bacteriologic care.

UNISYS DENTAL PLAN

60 — UAW Local 1313 as of 5/10/99

Covered basic services

Emergency treatment Immediate treatment to relieve pain in an emergency — for example, a dentist is required to remove something lodged in your mouth — is covered. Services to correct an ongoing problem causing dental pain are considered under the appropriate benefit levels of the Plan.

Fillings The Plan covers fillings that are appropriate and necessary as determined by MetLife.

Periodontal disease treatments The Plan covers the treatment of gums and mouth tissues that are affected by periodontal disease.

Posts The Plan covers posts in connection with fillings.

Recementing The Plan covers the recementing of crowns and bridges.

Relining The Plan covers the relining of dentures once within 36 months of original placement (relining during the first six months following the original placement is not covered). There is an exception, however, if relining is required as the result of changes caused by an illness or injury. In that case, relining is covered as often as required.

Repair The Plan covers the repair of crowns, dentures and bridges.

Root canals

The Plan covers root canals and other endodontic treatments.

UNISYS DENTAL P


Simple extractions The Plan covers the simple extraction of one or more teeth.

Therapeutic drug injections The Plan covers therapeutic antibiotic drug injections by a covered dental provider.

UNISYS DENTAL PLAN

62 — UAW Local 1313 as of 5/10/99

Covered major services

Crown buildups A crown is the portion of the tooth covered by enamel and visible above the gum. Some common types of artificial crowns that are covered by the Plan are:

_ full cast gold crown — extremely durable; covered only for certain teeth (usually molars) that withstand the most stress of chewing food

_ porcelain crown — includes a metal body with one or more tooth surfaces covered with a material (porcelain or acrylic) resembling the color of a natural tooth; veneer crowns customarily are covered for front teeth only

_ steel crown — generally used to restore a child's primary teeth up to age 18

Full or partial dentures

Fixed bridges

Addition of teeth to an existing denture

Replace existing prosthesis > 5 years old, cannot be made serviceable All of these devices are covered under the Plan.

A denture is a device replacing missing teeth. A partial denture is a prosthesis that replaces one or more, but fewer than all, of the natural teeth and associated structure, and is supported by the teeth and/or gums. Partial dentures may be fixed, removable, or fixed-removable.

A fixed bridge is a device replacing missing teeth that is attached to natural teeth.

Implants Expenses for the surgery required to prepare the mouth for implants, implant fixtures, final prosthesis, and other related procedures are combined and a maximum benefit amount equal to the R&C fee for the final prosthesis or restoration is considered, subject to the alternative courses of treatment provisions noted on page 47.

Impression An impression is a negative reproduction of a given area used as a mold or cast for fashioning a finished crown, inlay or denture. Related expenses are considered a part of the service for which the impression is being taken and no separate benefit is payable for the impression.

UNISYS DENTAL P


Inlays

Onlays

Crown restorations Inlays, onlays and crown restorations to restore diseased or accidentally broken teeth are covered under the Plan, but only when regular fillings are not adequate.

An inlay is a restoration made to fit a prepared tooth cavity and then cemented in place. An onlay covers the entire surface of the tooth, and is often used to restore lost tooth structure and increase the height of teeth.

Replacement of crowns or gold fillings Replacements for crowns or gold fillings are covered only if the crown or filling is over five years old.

Study models Except for study models related to orthodontia, related expenses for study models are considered a part of the service for which the study model is taken and no separate benefit is payable for the study model.

Temporary crowns

Temporary bridges

Temporary full or partial dentures Related expenses are considered a part of the service for the final crown, bridge or denture and no separate benefit is payable.

An exception is for temporary dentures or temporary crowns for children under age 18. These are considered for payment separately until fitting of a permanent denture or crown is appropriate.

Note: temporary dentures in service for at least one year are treated as if they are permanent dentures and expenses are handled accordingly.

UNISYS DENTAL PLAN

64 — UAW Local 1313 as of 5/10/99

Covered oral surgery The Unisys Dental Plan provides coverage for surgeons' expenses related to certain oral surgeries. It includes charges for medically necessary general anesthesia administered by the operating physician/dentist. Medically necessary hospital expenses and charges made by an anesthesiologist who is not the operating physician are not covered under the Unisys Dental Plan. These expenses may or may not be covered under your medical option. Verify coverage with your medical plan.

The annual $50 per person dental deductible applies to oral surgery expenses. Once the deductible is met, covered expenses are paid at 80 percent up to a separate oral surgery maximum annual benefit of $1,000 per person, subject to the R&C guidelines of the Unisys Dental Plan.

Benefits paid for oral surgery do not count against the annual $1,500 dental plan maximum. So you have up to $1,000 protection for oral surgery in addition to the $1,500 protection for other dental expenses each year.

Covered oral surgeries include, but are not limited to, necessary:

_ alveolectomy without extraction of the tooth _ apicoectomy without extraction of the tooth _ excision of impacted or unerupted teeth _ frenectomy/frenulectomy _ gingivectomy _ incision and drainage of cellulitis _ removal of exostosis _ removal of odontogenic cysts

The following procedures are not covered under the Unisys Dental Plan:

_ incision of sinuses, salivary glands or ducts _ removal of tumors or non-odontogenic cysts _ treatment of fractures of facial bones

Check with your medical plan to determine how expenses for these types of procedures would be handled.

Note: Root canal therapy, root scaling, and simple tooth extractions are considered basic services under the dental plan payable at 80 percent after the $50 deductible is met and subject to the $1,500 annual dental plan maximum benefit.

Also note: For oral surgery services that also are covered under a medical plan sponsored by Unisys, benefits under the Unisys Dental Plan are considered first — in other words, the Unisys Dental Plan is primary to the medical options. In no event will additional payment under a medical plan through Unisys result in a total payment between the Unisys Dental Plan and the medical option that exceeds the benefit that would have been paid had coverage been available only under the medical plan.

UNISYS DENTAL P


Covered orthodontia care Expenses related to orthodontia are covered, provided treatment is for functional malocclusion. Functional malocclusion is defined as occlusion causing difficulties in chewing, articulation (speech) or overall dental functioning.

Orthodontic care or treatment includes any service or supply furnished to prevent, diagnose or correct a misalignment of the teeth, jaws or joint relationships, temporomandibular joint (TMJ) dysfunction or myofacial pain dysfunction.

Appliances and adjustment of appliances The Plan covers appliances and adjustment of appliances used for the treatment of temporomandibular joint (TMJ) dysfunction or bruxism (teeth grinding). The Plan also covers special periodontal appliances (occlusal guards).

Arthrogram and other TMJ films The Plan covers arthrogram and other TMJ films used for the diagnosis and treatment of TMJ dysfunction.

Braces The Plan covers braces and related treatment to straighten teeth.

Occlusal adjustment The Plan covers occlusal adjustments in connection with periodontal treatment.

Covered dental-care providers Covered services from the following providers are eligible for reimbursement under the Unisys Dental Plan if the services are within the scope of the providers’ licenses. To be covered, services must not be performed by a person who ordinarily resides in your household or who is related to you (such as a spouse, parent, child, brother or sister), whether related by blood or marriage.

Dental hygienist A covered dental hygienist is a person who has been trained to remove deposits and stains from the surface of the teeth, and who may provide additional services and information on the prevention of oral diseases.

Dentist

UNISYS DENTAL PLAN

66 — UAW Local 1313 as of 5/10/99

A covered dentist is a legally qualified dentist (D.D.S. or D.M.D.) licensed to practice dentistry. This includes the various specialties in which a D.D.S. or D.M.D. is licensed to practice. As used in the Unisys Dental Plan, dentist also includes a licensed physician.

UNISYS DENTAL P


EXPENSES NOT COVERED The Unisys Dental Plan does not provide benefits for any of the following services, supplies or treatments:

_ for which dental necessity for the treatment of disease or injury is not established as determined by MetLife

_ for which there is no legal obligation to pay or charges would not be made except for the availability of benefits under the Plan

_ which are investigational in nature and/or not recognized as generally accepted dental standards established by the American Dental Association

_ furnished, paid for, or for which benefits are provided or required by reason of past or present service of any family member in the armed forces of a government

_ not performed by a covered dental-care provider

_ performed by a person who ordinarily resides in your household or who is related to you (such as a spouse, parent, child, brother or sister), whether related by blood or marriage

_ due to a condition that could entitle you to any benefit under a Workers' Compensation act or similar legislation

In addition, the Plan does not cover expenses associated with servic es noted below and on the following page.

Antibiotics or prescription drugs Antibiotics or prescription drugs are not covered under the Unisys Dental Plan. The exception is therapeutic antibiotic injections. These injections are covered as basic services under the Unisys Dental Plan.

Athletic mouth guards These are not covered under any circumstances.

Charges for these items: The Plan does not cover charges for:

_ any expense for which no services are provided

_ broken appointments

_ preparation of dental reports, itemized bills or benefit request forms

_ telephone calls

Charges that exceed R&C

UNISYS DENTAL PLAN

68 — UAW Local 1313 as of 5/10/99

The Plan does not cover any portion of an expense exceeding the Plan’s R&C guidelines. Refer to page 48 for information on R&C.

UNISYS DENTAL P


Facings on the pontics or crowns posterior to the second bicuspid These are not covered.

Hospital and anesthesia expenses No hospital expenses are covered under the Unisys Dental Plan.

Expenses for general anesthetics are not covered unless they are medically necessary for oral surgical procedures and are billed by the operating physician/dentist. Expenses billed by an anesthesiologist who is not the operating physician, are not covered under the Unisys Dental Plan.

Note: Hospital and/or anesthesia expenses, if any, for oral surgeries or dental care may not be covered under your medical plan. Verify coverage with your medical plan.

Replacement The Plan does not cover replacement:

_ of crowns or gold fillings less than five years old

_ of an existing prosthesis less than five years old

_ of a lost or stolen prosthetic device or duplication of such a device

_ or repair of an orthodontic appliance

Services, supplies or treatments Services, supplies or treatments are not covered if they are:

_ primarily cosmetic in nature; specialized techniques involving precision attachments, personalization or characterization

_ training, educational instruction or materials relating to dietary counseling, personal oral hygiene or dental plaque control

UNISYS DENTAL PLAN

70 — UAW Local 1313 as of 5/10/99

REQUESTING BENEFITS FROM THE DENTAL PLAN Charges for dental care you receive while you are covered under the Plan should be sent to MetLife at the following address:

MetLife Group Dental Claims PO Box 14093 Lexington KY 40512-4093

Replacement claim forms are provided with each explanation of benefits (EOB) statement. In addition, MetLife accepts the standard dental claim form used by many dentists.

Expenses must be submitted and received within 12 months of the date services are rendered. Expenses received later than 12 months after the date of service are not eligible for reimbursement.

Special payment provisions relating to orthodontia treatments Charges related to orthodontia are considered as follows after annual deductibles have been met:

_ the first payment is made after the initial banding has been completed; this payment is subject to the annual $50 deductible and represents 50 percent of one-quarter of the covered expenses

_ monthly payments are made automatically thereafter until the earlier of the following:

· the $1,000 maximum benefit is reached

· the treatments end

· coverage ends

UNISYS DENTAL PLAN

UAW Local 1313 as of 5/10/99 — 71

For example, assume that the fee for Danielle’s total orthodontia care is $3,000 over a period of 24 months and the annual dental deductible already has been met in the year in which treatments begin. This is how the benefits would be calculated.

Total fee: $3,000.00

First payment: $ 375.00 25% of $3,000 = $750

50% of $750 = $375

Monthly payments: $ 46.88 $3,000 – 750 = $2,250 $2,250 ÷ 24 = $93.75 50% of $93.75 = $46.88

If the annual $50 deductible is not met through other dental services before the first monthly payment of each calendar year, then the monthly installment due in January reflects a reduction for the deductible. In this example, the January payment would be $21.88 ($93.75 - 50.00 = $43.75; 50% of $43.75 = $21.88).

UNISYS DENTAL PLAN

72 — UAW Local 1313 as of 5/10/99

FACILITY OF PAYMENT Generally, benefits are payable to you, the Unisys employee.

Upon your signed authorization, payments can be made directly to any provider of services.

If, in the opinion of MetLife, conditions exist under which a valid release or assignment cannot be obtained — for example, due to your physical or mental incapacity — payment may be made to any individual or organization that has assumed responsibility for your care or principal support and is equitably entitled to payment.

Benefit assignments made prior to your death may be honored for remaining benefits payable by the Plan subsequent to your death.

Any payment made by the MetLife in accordance with this provision fully discharges the Plan of its liability to the extent of such payments.

UNISYS DENTAL P


IF YOU HAVE COVERAGE UNDER ANOTHER PLAN If an expense is covered by both the Unisys Dental Plan and another group plan, payments are subject to non-duplication of benefits provisions.

General provisions: primary and secondary plans When an expense is covered by two group plans, the guidelines provided in the following pages determine which plan pays first. When the primary plan has paid its benefits, the secondary plan may pay an additional amount based on that plan's provisions.

If both you and your spouse are covered by group plans, the plan of the patient's employer is the primary plan. A plan that covers you as a former employee or a dependent of a former employee pays last.

If both you and your spouse cover dependent children under group plans available due to active employment, the primary plan for the children is that of the parent whose birthday occurs earlier in the calendar year, regardless of the year of birth. This is referred to as the birthday rule.

If one plan does not follow the birthday rule, then the plan of the father pays first.

To determine which plan pays first, look at the following chart:

Unisys employee and spouse cover each other and/or children under group plans Unisys employee is

Other plan

Dental expenses of

Who pays first

Husband/father

Wife/mother's employer

Husband

Plan sponsored by Unisys

Wife

Wife's employer's plan

Child whose father's birthday precedes mother's during the calendar year


Child whose mother's birthday precedes father's during the calendar year

Mother's employer's plan

Wife/mother

Husband/father's employer

Husband

Husband's employer's plan

Wife


Child whose father's birthday precedes mother's during the calendar year

Father's employer's plan

Child whose mother's birthday precedes father's during the calendar year


UNISYS DENTAL PLAN

74 — UAW Local 1313 as of 5/10/99

Special provisions: children of divorced or separated parents _ If there is a court decree giving one parent financial responsibility for dental

expenses of the dependent children, the plan of the parent with financial responsibility for dental expenses pays benefits first.

_ In the absence of a court decree assigning financial responsibility for dental expenses, the plan of the parent who has custody pays benefits first; if the parent with custody has remarried, the order of payment is:

· The plan of the parent with custody pays benefits first.

· The plan of the stepparent with custody pays benefits next.

· The plan of the parent without custody pays benefits next.

· In cases of joint custody, the birthday rule described on page 63 applies.

Other situations not following the general provisions If each of the plans has provisions for retirement and/or workforce reductions, the plan of the retired or laid-off individual always pays last for that individual and all covered dependents.

If none of the conditions mentioned above and on page 63 applies, the plan covering the person for the longest period of time pays first.

A plan may declare itself to pay second after other group coverage, even though the order of payments described earlier indicates it should pay first. If this is the case, and the standard practice in the insurance industry supports the Plan sponsored through Unisys as secondary payor, the Unisys Plan pays benefits as if it should pay second, not first.

Finally, if one of the plans has no coordination of benefits or non-duplication of benefits provision, that plan always pays first as the primary plan.

Federal programs Federal programs include Medicare, Medicaid and Champus. Regulations under these programs determine whether the federal program is primary or secondary.

If you are covered by Medicare and a group plan through active employment status (either as an employee or as a dependent), Medicare pays second to the employer's plan. There is, however, an exception for end stage renal disease (ESRD). For ESRD, Medicare guidelines dictate that Medicare pays first after a defined period of time.

If Medicare could be considered primary for you or one of your covered dependents, it is your responsibility to enroll for Medicare. If you are not enrolled for Medicare, benefits payable from the Plan are adjusted to reflect the amount payable as if you had Medicare coverage.

UNISYS DENTAL P


Automobile insurance Many states have no-fault automobile insurance statutes. If you live in such a state and incur expenses that would be covered by both the Unisys Dental Plan and mandated no-fault automobile insurance, benefits are paid as if the automobile insurance is primary and the Unisys Dental Plan is secondary. This is true whether or not a no-fault policy is actually in force.

How non-duplication of benefits works If the guidelines on the preceding pages indicate that the Unisys Plan pays benefits first, it pays benefits as if it were the only plan. If the guidelines dictate that the Unisys Plan pays second, it may make an additional payment, but only to bring the annual cumulative total paid by both plans combined to the amount that the Unisys Plan would pay if it were the only plan.

For example, assume Mary covers her son under the Unisys Dental Plan, and Mary’s husband, Paul, covers their son under Paul’s employer's plan. Also assume that Paul’s birthday falls earlier in the year, so Paul’s employer's plan pays first for their son's expenses. Finally, assume that the Unisys Dental Plan deductible has been met.

When Mary’s son has a $150 expense, it is filed with Paul’s plan first. Let's say that plan pays $100. Then Mary files the expense with MetLife.

· If the benefits the Unisys Dental Plan would have paid if it were the only plan is $100 or less, no additional benefit is payable.

· If the Unisys Dental Plan would have paid $120, an additional $20 is payable from the Plan. This brings the total payable from both plans to $120, the amount that would have been paid in total if the Unisys Dental Plan had been the only plan.

Each time an expense is submitted for which the Plan pays second, the amount that would have been payable under the Plan as if it were the only coverage is calculated. This is added to the determinations for all other covered expenses submitted for that year for that individual for which the Plan pays second. This cumulative figure is then compared to the cumulative benefits paid from the other plan for the same expenses to determine if an additional benefit is payable from the Unisys Plan.

UNISYS DENTAL PLAN

76 — UAW Local 1313 as of 5/10/99

WHEN COVERAGE ENDS & CONTINUATION OPTIONS For important information about when your coverage ends, company-sponsored COBRA (available in case of workforce reduction or layoff, disability leaves of absence, approved unpaid leave of absence, or death), and COBRA coverage in general, refer to the section that begins on page 131.

ADDITIONAL PLAN INFORMATION Important information is contained in the section that begins on page 151. The subjects covered include, but are not limited to:

_ administration and funding

_ how to appeal a benefits request determination and case review

_ right to recover excess payments and third-party liability



UAW Local 1313 as of 5/10/99 — 77

REIMBURSEMENT ACCOUNTS


78 — UAW Local 1313 as of 5/10/99

INTRODUCTION Reimbursement accounts are tax-effective options you may use to pay for certain health-care expenses that aren't covered elsewhere — such as copayments, coinsurance and deductibles — and for day-care services that are necessary to enable you or your spouse to work or continue as a full-time student.

You can elect to participate in one or both of these accounts:

_ Health Care Reimbursement Account — you do not need to be enrolled in a medical plan through Unisys or the Unisys Dental Plan to participate

_ Day Care Reimbursement Account

If you participate, you also elect the amounts to contribute to your accounts, up to the maximum amount for each account.

By projecting carefully and conservatively for the health-care and day-care expenses you expect to incur throughout the year, you can set aside enough money to pay for eligible expenses with dollars that are free from federal income and Social Security taxes, as well as state and local taxes in most jurisdictions.

In exchange for the favorable tax treatment of covered expenses paid through reimbursement accounts, the Internal Revenue Service (IRS) imposes restrictions on the use of your accounts. These restrictions, along with other information about the operation of reimbursement accounts, are explained in the following pages.


UAW Local 1313 as of 5/10/99 — 79

ADVANCE ELECTION The IRS requires you to make an irrevocable advance election regarding participation in a reimbursement account, as well as how much to set aside in tax-free dollars during the year. This advance election requirement applies to your initial enrollment and your annual enrollment as described below.

Note: Once the benefits enrollment deadline passes, your elections are officially registered. You may be allowed to change your elections only if you have a change in status (see below).

Initial enrollment Within your first 30 calendar days of employment, you are eligible to enroll in a Health Care Reimbursement and/or Day Care Reimbursement Account for the balance of the calendar year.

Annual enrollment Each year you want to participate, you must indicate your election in advance, generally early in November for the next calendar year. Your participation stops at the end of each calendar year, but you can ensure participation during the next calendar year by declaring your election during the annual enrollment held early each November.

CHANGING YOUR REIMBURSEMENT ACCOUNT ELECTIONS Your decision to participate in the reimbursement accounts and the amount you set aside stays in effect for the entire enrollment period. However, if you have a change in status, you may be able to change the amount you contribute. Refer to the information beginning on page 21.

YOUR CONTRIBUTIONS If you participate, you authorize contributions from your pay on a before-tax basis.

In addition, you may deposit into your reimbursement accounts any cash incentive provided to you by Unisys for opting out of medical and/or dental coverage.

The amount you choose to deposit is expressed as an annual amount. The annual amount is then restated as a per-pay-period amount that is withheld from each of your paychecks.


80 — UAW Local 1313 as of 5/10/99

For example, assume Helen is paid every other week and she authorizes $1,040 to her day care account. To determine the amount withheld each pay period, divide Helen’s annual contribution of $1,040 by 26 weeks ($1,040 ÷ 26 = $40).

Your deposit decisions are subject to the following minimum and maximum amounts:

Reimbursement account minimum and maximum annual deposits Type of reimbursement account

Minimum

annual deposit

Maximum

annual deposit Health Care

$ 100

$ 3,000

Day Care if you and your spouse each earn $5,000 or more annually

$ 100

$ 5,000

($2,500 if married and filing separate income tax returns)

Day Care if you or your spouse earns less than $5,000 annually

$ 100

lower income amount under

$ 5,000 annually

If you begin participation or change contributions after the first of the year (for example, if you begin participation when you are first hired or due to a status change that allows you to change your participation), contributions are prorated for the balance of the year.

For example, Assume Jim is paid every other week and elects a $1,040 Health Care Reimbursement Account ($40 per pay period for 26 paydays) during annual enrollment. Also assume that Jim and his wife have a baby in June. Within 30 calendar days of the date the baby is born and before his 14th pay day, Jim decides to increase the account to $3,000.

Jim’s contributions beginning in January will be $40 per month. These will continue for 13 pay periods. Beginning with his 14th payday, his monthly contributions will be increased to $190.77 ($3,000 minus the $520 Jim already contributed equals $2,480; the $2,480 balance is divided by the remaining 13 pay periods).



HOW THE REIMBURSEMENT ACCOUNTS WORK Before-tax contributions you authorize for deposit into reimbursement accounts are withheld from your regular paychecks. As you incur expenses that can be reimbursed from these accounts, you submit requests for reimbursement and payments can be made. Payments from reimbursement accounts cannot be made to anyone but you (or your estate in the event of your death).

Health Care Reimbursement Account For a Health Care Reimbursement Account, you are eligible for reimbursement of covered expenses as they occur during the period of time you make contributions, up to your annual election amount. Your contributions continue to be applied per pay period to offset any expenses that have been reimbursed.

You do not need to be enrolled in a medical plan through Unisys or the Unisys Dental Plan to participate.

If you begin participation or change participation during the year If you begin participation or are eligible to change contributions after the first of the year, only eligible expenses incurred on or after the date participation begins and while participation continues are eligible for reimbursement. The maximum reimbursement is matched to your contribution level at the time the expenses are incurred.

Returning to Jim from the example on page 70, let’s say that in February Jim incurs $2,000 in eligible expenses. Then in October, his new baby incurs $3,000 in eligible expenses. In this case:

· $1,040 of the February charges would be reimbursed, since this was the maximum in effect at that time

· $1,960 of the October expenses would be reimbursed, since this was the outstanding balance of the $3,000 election in effect at that time


82 — UAW Local 1313 as of 5/10/99

If you cease making contributions or leave the company If you cease making contributions or leave the company before you have incurred eligible expenses that equal or exceed your contributions for the current year, you forfeit the amount you have in your Health Care Reimbursement Account that exceeds eligible expenses incurred through that date. You can, however, continue to submit benefits requests for eligible expenses incurred during the period contributions were made. For additional information on forfeitures and submitting benefits requests, see pages 78 and 79.

No forfeitures occur if:

_ after your employment ends, through COBRA coverage you continue to make contributions on an after-tax basis (plus a 2 percent administrative fee)

AND

_ while you continue to make contributions you incur eligible expenses that meet or exceed your contributions and/or annual election

Day Care Reimbursement Account For a Day Care Reimbursement Account, covered expenses are reimbursed up to the amount you have contributed.

If your account has an available balance at the time eligible expenses are submitted, payments are made up to the amount available in your account. Excess expenses are pended until the next deposits are reported by Unisys.



THE TAX ADVANTAGE Paying for eligible health-care or day-care expenses through a reimbursement account offers significant tax advantages. You are paying for eligible expenses with dollars that are never taxed. With before-tax contributions you make to reimbursement accounts, you do not pay federal income taxes or Social Security taxes (FICA), and in most cases, state and local taxes. The before-tax contributions lower the taxes you pay because they reduce your taxable income base.

Here's an example of how before-tax payments work.

Suppose Sue earns $35,000, is married, files a joint return, claims three exemptions on her federal income tax return and uses the standard deduction. Here's what Sue’s tax savings would have been in 1998 if she incurred $1,500 in eligible health-care expenses:

In this example, by using a Health Care Reimbursement Account, Sue could increase her take-home pay by $340 a year. Or from a different perspective, Sue could reduce her $1,500 in health-care expenses to $1,160. This example shows only the effects of before-tax payments on federal and Social Security taxes. If you consider state and local taxes, Sue’s savings may be even greater.

Before-tax payments

vs.

After-tax payments

Annual pay

$ 35,000

$ 35,000

Before-tax payments through a Reimbursement Account

- 1,500

- 0 Taxable pay:

$ 33,500

$ 35,000

Federal income tax

$2,749

$2,974

Social Security tax

+2,563

+2,678

Total tax

- 5,312

- 5,652

After-tax payments

- 0

- 1,500

Sue’s net pay

$28,188

$27,848

Actual expenses:

$ 1,500

Tax savings:

- 340

Net expenses:

$ 1,160


84 — UAW Local 1313 as of 5/10/99

Federal income tax credit for dependent day-care expenses Under current law, you may be eligible for two forms of tax relief if you have dependent day-care expenses. The IRS regulations may change these guidelines from time to time.

_ A special federal income tax credit when you file your federal income taxes: Currently, this is 20-30 percent of expenses, depending on your family's adjusted gross income. Eligible expenses are limited to $2,400 with one dependent or $4,800 with two or more dependents.

_ Before-tax dollars you set aside in a Day Care Reimbursement Account: Reimbursement from the Day Care Reimbursement Account reduces, dollar-for-dollar, the amount of expenses eligible for the federal income tax credit for dependent day-care expenses. For example, if you elect to contribute $600 to the Day Care Reimbursement Account, this election reduces the maximum expense for the tax credit for one dependent to $1,800 (the original $2,400 minus the $600 used in the reimbursement account).

The Day Care Reimbursement Account generally provides greater tax savings than the federal income tax credit. However, if your family's adjusted gross income is $24,000 or less, your particular situation will determine which method is better for you, and it may be best to do a side-by-side comparison. Following is a brief comparison.

Comparison of Day Care Reimbursement Account and the federal income tax credit Day Care Reimbursement Account

Federal income tax credit

Maximum annual contribution is $5,000 ($2,500 if married and filing separate tax returns); if spouse earns less than $5,000 annually, the lower income is the most you can contribute.

Maximum expense applicable toward the credit is $2,400 for one dependent, $4,800 for two or more dependents.

Contributions are not subject to federal income taxes, and in most cases, state and local taxes (state exceptions are NJ and PA). You pay your expenses with after-tax dollars, but you're reimbursed from your account with your untaxed contributions.

You pay your expenses with after-tax dollars. A percentage of the expense is then applied as credit against taxes owed.

Contributions are free from Social Security taxes (FICA).

The credit does not reduce FICA.

You must determine your contribution amount before you incur expenses; you forfeit any unused amounts.

No risk of forfeiture; the credit is determined after all expenses are incurred.

You must provide the name, address and Social Security number or other taxpayer identification number of the care provider.

You must provide the name, address and Social Security number or other taxpayer identification number of the care provider.

Consult with a tax advisor or refer to IRS Public ation 503, available from your local IRS office, for more information on the federal income tax credit.



Your Social Security benefit Because reimbursement accounts and other before-tax benefit costs reduce the amount you pay in Social Security taxes, your Social Security benefits may be reduced. If there is a reduction, it generally will be small.

COVERED HEALTH-CARE EXPENSES You can be reimbursed for your out-of-pocket expenses for IRS-qualified medical, dental, vision and hearing-care expenses for yourself and any family members you claim as dependents on your federal income tax return. Family members' expenses can be reimbursed even if you don't cover these individuals under your health-care options through Unisys.

To qualify, expenses cannot be reimbursable from any health-care plan or other insurance.

Common eligible expenses include, but are not limited to:

_ deductibles, copayments, coinsurance and any expenses not covered under a Unisys plan or another group health plan, such as your spouse's plan

_ copayments and the difference in cost between a generic and brand-name drug that are your responsibility under the Mail Service Prescription Drug Program

_ unreimbursed dental expenses, including deductibles and coinsurance

_ routine physical examinations and well-baby care, including immunizations and vaccinations that are not reimbursed elsewhere

_ charges above R&C guidelines of medical and dental plans

_ unreimbursed prescribed medical supplies and equipment

_ unreimbursed vision-care expenses, including exams, frames, lenses and contact lenses

_ unreimbursed hearing-care expenses, including exams, hearing aids and other treatments

_ transportation expenses related to an illness or to obtain medical care

Covered expenses eligible to be reimbursed from reimbursement accounts are subject to IRS requirements. Consult with a tax advisor or refer to IRS Publication 502, available from your local IRS office, for general guidelines about covered expenses.


86 — UAW Local 1313 as of 5/10/99

COVERED DAY-CARE EXPENSES Under IRS guidelines, day-care expenses generally are eligible if they meet all of the following requirements:

_ Expenses must be necessary to enable you to work. If you are married, your spouse must work, must be a full-time student, or must be physically or mentally incapable of self-care.

_ Dependents must be under age 13 or physically or mentally unable to care for themselves. They must be eligible to be claimed as dependents on your federal income tax return.

Note: If you are divorced or legally separated, a child who is under age 13 or is mentally or physically impaired is eligible as a dependent as long as you have legal custody — even if you are not entitled to the federal income tax exemption.

_ If the expenses are for a day-care center that cares for more than six people, the center must comply with all state and local laws.

_ Payments cannot be made to a day-care provider you claim as a dependent on your federal income tax return or to your child under age 19. But payments can be made to a relative who is a day-care provider, even if he or she lives in your home, as long as the relative is not claimed as your dependent on your federal income tax return.

_ If services are provided outside your home for dependents over age 13 (for example, for a parent or grandparent), the dependent must spend at least eight hours per day in your home.

Covered expenses eligible to be reimbursed from reimbursement accounts are subject to IRS requirements. Consult with a tax advisor or refer to IRS Publication 503, available from your local IRS office, for general guidelines about covered expenses.



EXPENSES NOT COVERED Some expenses are not covered under the reimbursement accounts. These include, but are not limited to:

_ health-care expenses, if payment is available through a health-care plan or other insurance

_ state disability insurance taxes

_ payments to purchase health-care coverage, long-term disability coverage, or long-term care insurance

_ expenses for any camp that includes overnight stays (expenses for summer day camp, however, may qualify if the camp meets the criteria included in IRS Publication 503)

_ tuition for a private school

_ funeral expenses

_ non-prescription drugs

_ cosmetic surgery

_ custodial care or long-term care

_ health club dues

_ weight-loss or stop-smoking programs

_ expenses for Rogaine, Retin A, and smoking cessation products unless they are medically necessary for the prevention and treatment of a specific illness


88 — UAW Local 1313 as of 5/10/99

REQUESTING BENEFITS FROM REIMBURSEMENT ACCOUNTS There are special forms to request payment from your Health Care Reimbursement Account or Day Care Reimbursement Account.

Minimum distributions Reimbursement account payments and Explanations of Payment (EOPs) are issued only after covered expenses you submit reach a minimum of $10.

If you submit eligible expenses totaling less than $10, payment will be pended until additional eligible expenses are received and the total reimbursement is at least $10.

There are, however, three situations when payment of less than $10 are made:

1. at the March 31 annual deadline for submitting expenses associated with the prior year’s accounts — eligible expenses under $10 that have been submitted, but have not yet been reimbursed, are paid at that time

2. if you have less than $10 remaining of your maximum benefit

3. if you terminate your employment with Unisys

Health Care Reimbursement Account requests For eligible health-care expenses, you must submit a completed Health Care Reimbursement Account Request for Benefits form and attach an itemized receipt with each request. The form is available from the Unisys Benefits Payment Office at the telephone number listed in front of this booklet. The form also can be downloaded through the Unisys Intranet.

The itemized receipt must show:

1. name of the family member who incurred the expense

2. the date of service or purchase

3. the type of service or supply

4. the amount charged for the service or supply

For prescriptions filled through the mail-service program, attach the bottom two-thirds of the Summary of Benefit Account form that Merck-Medco Rx Services provides with each refill. This portion of the statement qualifies as an itemized receipt.

For dental expenses, submit the explanation of benefits statement (EOB) you receive from MetLife.

Submit your reimbursement request to the Unisys Benefits Payment Office at the address noted on the benefits request form.



Day Care Reimbursement Account requests As you incur eligible day-care expenses, submit them using a Day Care Reimbursement Account Request for Benefits form with an itemized receipt or an itemized day-care services billing. Or ask the provider to complete the Service Provider(s) Statement on the form. The form is available from the Unisys Benefits Payment Office (UBPO) at the telephone number listed in front of this booklet. The form also can be downloaded through the Unisys Intranet.

1. Complete a new benefits request form each time you request payment from your Day Care Reimbursement Account.

2. Complete all requested information in the Employee Information and Person(s) Receiving Care sections of the form.

3. Attach itemized day-care services billings, or ask your day-care service provider to complete the Service Provider(s) Statement on the form. An itemized bill must show:

· name of person receiving care · dates services were provided · amount paid · care provider's name and address · care provider's signature · care provider's Social Security number or Taxpayer Identification Number

(TIN)

4. Sign and date the form and mail your benefits request to the UBPO at the address noted on the form.

AT YEAR END . . . FORFEITURES AND FILING LIMITATIONS You can continue to file requests for reimbursement of eligible expenses for the year in which you participated in a reimbursement account through the first three months of the following year. The request must be received by the UBPO no later than March 31 of the following year in order to be eligible for reimbursement. For example, if you participate in a Health Care Reimbursement Account throughout 1999, your 1999 expenses must be received no later than March 31, 2000.

If a balance remains in your account after the year's reimbursements have been processed (that is, by March 31), this amount must be forfeited. This is a requirement under current federal tax law. Unisys uses forfeitures, if any, to offset administrative expenses.


90 — UAW Local 1313 as of 5/10/99

WHEN BEFORE-TAX CONTRIBUTIONS END Your before-tax contributions to the reimbursement accounts end on the earliest of the following:

_ the date your employment terminates

_ the date you transfer to an ineligible class of employees

_ the effective date of an allowable election to cease contributions due to a change in status (see information beginning on page 21)

_ the first day of an enrollment period in which you do not specifically authorize participation

_ the date your pay from a Unisys payroll is interrupted, for example, an unpaid leave of absence or extended disability

_ the date Unisys discontinues the Plan

If your before-tax contributions end for any reason and you have a balance remaining in your accounts, you are able to submit requests for reimbursement of qualified expenses:

_ for a Health Care Reimbursement Account: for expenses incurred through the date contributions end

_ for a Day Care Reimbursement Account: for expenses incurred through the end of the calendar year

If you die while actively employed and you have a balance in your account, your estate can submit requests for reimbursement of qualified expenses:

_ for a Health Care Reimbursement Account: for expenses incurred through the date of death if contributions continued through that date

_ for a Day Care Reimbursement Account: for expenses incurred through the end of the calendar year

CONTINUATION OPTIONS AFTER COVERAGE ENDS For important information about COBRA coverage for a Health Care Reimbursement Account, refer to the section that begins on page 131.

ADDITIONAL PLAN INFORMATION Important information is contained in the section that begins on page 151. The subjects covered include, but are not limited to:

_ administration and funding _ how to appeal a benefits request determination _ plan termination/revision _ your rights under ERISA

UAW Local 1313 as of 5/10/99 — 91

DISABILITY INCOME BENEFITS

DISABILITY INCOME BENEFITS

92 — UAW Local 1313 as of 5/10/99

INTRODUCTION Unisys provides disability income protection if you are unable to work due to an illness or injury. There are two plans that provide disability benefits to eligible employees:

_ Sickness and Accident benefits (S&A) provide $275 per week for up to 26 weeks for regular full-time employees. Unisys pays the full cost for this protection. You pay nothing.

You become eligible for this protection the first day of the calendar month coincident with or following the month in which you are actively at work for six calendar months. For this protection to become effective, you must be working your normal full-time work schedule on the first scheduled workday concurrent with or immediately following your eligibility date.

_ The Unisys Long-Term Disability Plan (LTD) provides up to 66-2/3 percent of your income during periods of extended disability lasting longer than 26 weeks. Your participation in the Unisys LTD Plan is voluntary. You pay the full cost for this income protection.

You are eligible to participate in this voluntary plan on your first day working in an active full-time status.

This section is divided into separate discussions on each of these disability plans. The headings displayed at the top of each page indicate which plan is being described on that page.

For absences due to covered disabilities beginning on and after January 1, 1994, the Unisys LTD Plan is an insured plan registered in the state of Pennsylvania.

Some state insurance laws require that residents receive additional information regarding extraterritoriality. As of this printing, these states include Arkansas, California, Indiana, Texas and Vermont.

In all cases, the Policyholder is Unisys Corporation, the Group Policy Number is GLT-205436, the effective date is January 1, 1994 and the endorsement is from Hartford Life and Accident Insurance Company, Hartford, Connecticut.

If you reside in any of the states listed above, the information required to conform with the applicable state laws is provided beginning on page 106.

SICKNESS AND ACCIDENT BENEFITS

UAW Local 1313 as of 5/10/99 — 93

SICKNESS AND ACCIDENT BENEFITS (S&A) S&A benefits are $275 per week for up to 26 weeks if you are unable to work your normal full-time schedule due to a covered disability.

Benefits start after you are unable to work all or part of your normal schedule due to illness, injury or pregnancy for one week (that is, beginning on the eighth calendar day). No payment is made for the first week (that is, the first seven calendar days) of disability.

Other source of income: offsets to S&A benefits S&A payments are reduced by:

_ benefits payable to you under Workers' Compensation — if your disability is work-related, S&A benefits are the difference, if any, between your Workers' Compensation benefits and $275 per week

_ benefits payable to you under State disability plans

_ primary and family benefits payable to you and/or other family members on account of your disability through the federal Social Security Act and/or the Railroad Retirement Act

_ benefits paid under no-fault automobile coverage

_ disability benefits paid by other group coverage for the same disability

Your cost for S&A benefits Unisys pays the full cost for your S&A benefits.


94 — UAW Local 1313 as of 5/10/99

When S&A benefits begin

When participation begins No enrollment is required for S&A benefits.

You are eligible the first of the month after you have six months of active employment. For benefits to become effective, you must be working your normal full-time work schedule on the first scheduled workday concurrent with or immediately following your eligibility date. If you are absent from work that day, or if you are working fewer hours than your normal full-time schedule, then you are eligible to participate the first day you work your normal work schedule following your eligibility date.

When S&A benefit payments begin S&A payments begin after you are unable to work all or part of your normal work schedule due to illness, injury or pregnancy for more than one week (that is, beginning on the eighth calendar day).

You are required to submit satisfactory proof of disability to support your eligibility for S&A benefits.

If satisfactory proof of disability is not provided for all or part of your absence, pay is stopped. S&A benefits paid for absences that are not supported by satisfactory proof of disability are overpayments. Overpayments are recovered, generally through payroll adjustments retroactive to the last day supported by satisfactory proof of disability.

What disability means — S&A Any time you are unable to work all or part of your normal full-time work schedule for more than one week (that is, more than seven calendar days) due to an illness, injury or pregnancy is subject to the provisions of the S&A Plan. To be considered disabled, both of the following must apply:

_ you must be under treatment by a licensed physician who certifies your disability

AND

_ it can be verified by Hartford Life (“Hartford,” the third-party administrator for S&A benefits) that you are unable, due to your disability, to perform the essential functions of your regular occupation at any job site within Unisys — essential functions include the ability to work your normal full-time work schedule

You are not considered disabled if you have a medical condition but you do not miss work as the result of the condition — even if the condition may later result in your inability to work. (For example, if you have a heart condition, but you do not miss work as the result of the condition, you are not considered disabled under the Plan.)


UAW Local 1313 as of 5/10/99 — 95

Reduced work schedules — S&A Each day you work less than your normal full-time work schedule due to a disability is treated as if it were a full day. This includes periods of time you may be able to perform your regular duties on a reduced work schedule.

For example, assume Aaron’s normal work schedule is eight hours a day, five days a week. His physician indicates that beginning on Wednesday the 12th, due to Aaron’s medical condition, he can work only four hours per day and only three days per week.

Aaron is eligible for S&A benefits beginning Thursday the 19th, the eighth calendar day after his work schedule was reduced. He is paid for all hours worked. His S&A benefits are offset by pay for hours worked.

Rehabilitative employment — S&A Unisys encourages you to resume work as soon as you can, even if it means working at your regular job for fewer hours or taking a rehabilitative job within Unisys or with another company, as approved by Hartford.

If you work in a rehabilitative status, as approved by Hartford, you are paid S&A benefits equal to the difference between your pay for your hours worked and the $275 per week you would have received if you were not working.

A return to work in a rehabilitative status counts toward your 26-week S&A benefit period and toward the 26-week waiting period under the Unisys LTD Plan (see page 94).


96 — UAW Local 1313 as of 5/10/99

Recurring disabilities — S&A One period of disability applies and you are eligible for whatever remains of your 26 weeks of S&A benefits, not another 26 weeks of coverage, if all of the following apply:

_ your initial period of disability (beyond the one-week waiting period) lasts less than 26 weeks

_ you return to work and work your normal full-time work schedule

_ you again are unable to work all or part of your normal full-time work schedule because of the same or related illness, injury or pregnancy before you work your normal full-time work schedule for two consecutive weeks or more

For example, suppose Joan missed work for 10 weeks due to major surgery (1 week counts as her waiting period and 9 weeks are covered by S&A payments), returns to work, and maintains her normal work schedule for a week. Then she becomes disabled again for 15 weeks due to complications from the original surgery. Because her second period of disability is related to the first — and occurred within two consecutive weeks of her return to her normal work schedule — this is considered to be one period of disability.

In this case, Joan would receive S&A benefits for a total of 24 weeks after she met the initial 1-week waiting period. She would not have to meet a second 1-week waiting period for the second period of absence due to this recurring disability.

Separate periods of disability apply and you are eligible for a new 26 weeks of S&A benefits (after a one-week waiting period) if all of the following apply:



_ you again are unable to work all or part of your normal full-time work schedule because of the same or related illness, injury or pregnancy after you work your normal full-time work schedule for at least two consecutive weeks

Note: You must be performing your regular job duties for your normal full-time work schedule in order for a new 26-week S&A benefit period to apply. For example, returning to work and immediately applying vacation time during any of the two-week period following your return to work does not fulfill the return-to-work requirement.


UAW Local 1313 as of 5/10/99 — 97

A new 26 weeks of coverage also is provided if all of the following apply:



_ you again are unable to work all or part of your normal full-time work schedule due to a new illness, injury or pregnancy that is not related to the first

If you return to your normal full-time work schedule after a period of absence that lasted 26 weeks or longer (beyond the one-week waiting period), then within 26 weeks miss work again due to the same or related condition, no new 26 weeks of S&A benefits is available. (Note: If you are enrolled in the Unisys Long-Term Disability Plan, benefits may be payable from that Plan.)

Some disabilities are not covered by S&A benefits S&A benefits are not available if any one of the following applies:

_ the period of time you are not working your normal full-time work schedule exceeds one week (that is, lasts longer than seven calendar days) and your absence is not certified by an attending physician and by Hartford

_ the length of time you do not work all or part of your normal full-time work schedule exceeds the normal period of time expected for recuperation, based on your medical condition and substantiated medical documentation — in this case, S&A benefits are paid only for the normal period expected for recuperation

_ the diagnosis is not considered a covered diagnosis and/or the treatment is not considered a covered treatment under a medical plan sponsored by Unisys

_ you are working anywhere for compensation or profit — other than in a rehabilitation program approved by Hartford — while you are not working at your regular occupation at your normal full-time work schedule for Unisys because of your disability

_ your disability is caused by intentionally self-inflicted injury or attempted suicide

_ your disability is caused by participation in a riot or service in the armed forces of any country or international authority

_ your disability is caused in the course of committing a felony, trying to commit a felony, or engaging in an illegal occupation


98 — UAW Local 1313 as of 5/10/99

Requesting S&A benefits The following procedures take advantage of reporting and follow-up for disability certifications conducted by telephone. Be sure to follow these procedures. Your S&A benefits will be suspended if you don’t complete these steps, or if your physician fails to provide the requested information.

1. Always immediately notify your supervisor of any absence. Contact your supervisor regularly throughout your absence. If your illness or injury may be work-related, immediately inform your supervisor so a Workers’ Compensation claim can be filed.

2. Call Hartford at the telephone number listed in front of this booklet once you know that your absence will last more than one week (that is, more than seven calendar days), whether you miss the entire day or only some of your scheduled hours.

Call in advance if you know in advance. For example, if you anticipate an absence due to a scheduled surgical procedure or pregnancy, call as soon as you have an anticipated date for the surgery or delivery.

If you don’t know until after you have missed work for one week (that is, until your eighth calendar day of absence) that you will continue to miss work due to your disability, call at that time.

3. After gathering basic information from you, Hartford will assign a disability benefits representative to you. This person will coordinate the collection of information needed to review your eligibility for S&A payments.

4. Ask your physician to contact Hartford as soon as possible to provide them with information about your disability. Be sure your physician is aware of the importance of providing Hartford with information about your condition since the payment of S&A benefits depends on timely input from your doctor. If your physician needs a signed form before discussing your situation with Hartford, you will be provided with a release you can give to the doctor. If your physician does not contact Hartford within one business day of your call, your disability benefits representative will attempt to reach your physician on your behalf.

5. Notify your Hartford disability benefits representative of any changes in your medical status or any other income you or your family members may be receiving because of your disability.

6. Repeat any steps as needed to continue to receive S&A benefits.


UAW Local 1313 as of 5/10/99 — 99

Expediting payments Certain information is needed to continue S&A benefits without interruption. Below are suggestions to expedite your benefit payments:

_ Ask your physician to contact Hartford as soon as possible and provide them with information related to your condition. Authorize your physician to release medical information to Hartford.

_ If Hartford sends forms for completion, do not leave the forms at the physician's office. Prompt attention is more likely if you or a family member waits for the completed form.

_ Request that an estimated date of return to work be noted (for example, “at least until date”). If the physician is unsure and states “indefinitely,” Hartford doesn't know if it means another week, another month, or never. So updates will be requested regularly.

_ If your absence results in reduced hours or other work limitations, your physician should specify the limitations caused by your condition (for example, cannot sit for longer than two hours or cannot lift more than 10 pounds, if sitting and lifting are requirements of your job).

_ Periodically contact Hartford Life to check the status of any outstanding information and help expedite any information that may be needed.

Taxation of benefits — S&A S&A benefits are paid by Unisys and are considered wages for federal income tax, most state and local taxes, and FICA purposes.

Applicable federal, state and local taxes are withheld from your S&A benefits to meet your tax liability and are reported on your Form W-2 with your other earnings.

When S&A coverage ends For important information about when S&A coverage ends, refer to the section that begins on page 131.


_ plan administration and funding _ how to appeal a benefits request determination and case review _ right to recover excess payments _ plan termination/revision _ your rights under ERISA

UNISYS LONG-TERM DISABILITY PLAN

100 — UAW Local 1313 as of 5/10/99

UNISYS LONG-TERM DISABILITY PLAN (LTD) If your inability to work your normal full-time work schedule due to a disability lasts longer than 26 weeks, and you participate in the optional Unisys Long-Term Disability Plan, you may begin to receive LTD benefits equal to 66-2/3 percent of your pay.

Your LTD options You have the option to choose coverage under the Unisys LTD Plan offered through Hartford Life, or to choose no coverage if you feel you have other sources of income to fill your needs should you be unable to work your normal work schedule due to a disability for an extended period of time.

If you elect to participate in this important benefit, you have two options. You can choose to cover:

_ base pay only (as defined by the Plan on page 97)

_ base pay plus supplemental pay (as defined by the Plan beginning on page 98)

You also decide whether to pay for coverage on a before-tax basis or an after-tax basis.

Your options are summarized in the chart on the following page.


UAW Local 1313 as of 5/10/99 — 101

Your LTD options

Option

Implications of selecting this option

Amount of coverage

no coverage

è

If you later decide to participate, you need to provide satisfactory proof of good health

è None

base pay only on a before-tax

basis

è

LTD benefit payments are subject to federal and most state income taxes

è

base pay only on an after-tax

basis

è

LTD benefit payments are not subject to federal or most state income taxes

è

Maximum benefit: 66_% of base pay* only — benefits are offset by other sources of income as listed beginning on page 95 Minimum benefit: $100 per month

base pay plus

supplemental pay on a before-tax

basis

è

LTD benefit payments are subject to federal and most state income taxes

è

base pay plus

supplemental pay on an after-tax

basis

è

LTD benefit payments are not subject to federal or most state income taxes

è

Maximum benefit: 66_% of base pay plus supplemental pay* — benefits are offset by other sources of income as listed beginning on page 95 Minimum benefit: $100 per month

* Refer to the information beginning on page 97 for what pay means for Options 1 and 2.


102 — UAW Local 1313 as of 5/10/99

Changing your LTD elections Each year you can:

_ change between covering only base pay and covering base pay plus supplemental pay

_ change your decision from no coverage to participation — coverage begins on the first day you work your normal work schedule after the Unisys Benefits Service Center is notified by Hartford Life that you have provided satisfactory proof of your good health within the required time frames

_ drop coverage — to later add coverage, you must provide satisfactory proof of good health

_ change between before-tax or after-tax contributions

You also can elect to add LTD coverage if you have a status change that allows you to revisit your LTD election, provided your proof of good health is received on a timely basis and is satisfactory to Hartford Life. Refer to the section beginning on page 21 for more information about status changes.

If you are required to provide satisfactory proof of good health for your election, you must complete and submit the required forms to Hartford Life:

_ on or before December 31 for changes requested during annual enrollment

_ within 30 calendar days of the date of your request to add LTD coverage when such a request results from a status change

If you elect to pay for LTD coverage on a before-tax basis The actual cost to participate in the Plan is lower than your contributions if you elect to pay for coverage on a before-tax basis. This is because you save federal income and Social Security taxes (and in most cases, you also save state and local income taxes) on your contributions.

However, if you pay for coverage on a before-tax basis and subsequently receive benefits from the Plan, your LTD benefit is considered taxable for federal income tax purposes.

If you elect to pay for LTD coverage on an after-tax basis Because you are foregoing immediate tax advantages, paying on an after-tax basis gives you a somewhat higher cost of coverage. If you subsequently receive benefits from the Plan, however, your LTD benefit is not considered to be taxable for federal income tax purposes.

UNISYS LONG-TERM DISABILITY P

UAW Local 1313 as of 5/10/99 —

If you change after-tax/before-tax LTD elections Your LTD benefits are partially taxable and partially non-taxable for federal income tax purposes if you change your after-tax/before-tax elections during the three years preceding the date LTD payments begin.

First year of Plan participation: If you collect LTD benefits during your first year of Plan participation, federal taxation of these benefits is based on how you paid your LTD premiums — on a before-tax or after-tax basis.

For example, if Pat becomes eligible and begins participation in the Plan in February, 1999, elects to pay for coverage on an after-tax basis, and begins receiving LTD benefits during 1999, all benefits Pat receives from the Plan are non-taxable.

Second year of Plan participation: If you collect LTD benefits during your second year of Plan participation, federal taxation of these benefits is based on your method of payment over your first and second enrollment periods.

To continue the example, if Pat elects after-tax coverage in 2000, but before-tax coverage in 1999, LTD benefits Pat receives beginning in 2000 are taxable in part and non-taxable in part. The taxable portion of each payment is that part of her monthly LTD payment which bears the same ratio as her before-tax contributions bear to her total contributions for the period of time she has been in the Plan since February 1, 1999.

Third year of Plan participation: If you participate in the Plan for a third enrollment period and become eligible to receive LTD benefits during that enrollment period, the taxation of the LTD benefit is based on your method of payment over your first, second and third enrollment periods. You receive benefits that are taxable in part and non-taxable in part. The taxable portion of each payment is that part of your monthly LTD payment which bears the same ratio as your before-tax contributions bear to your total contributions for the period of time you've been in the Plan.

Three full years or more of Plan participation: In subsequent years this prorating method is followed by looking back three calendar years.


104 — UAW Local 1313 as of 5/10/99

Participation during leaves of absence If you are on an approved leave of absence without pay, LTD coverage ends when you leave the premises on your last day worked.

If you are on an approved leave of absence with pay for up to a maximum of 26 weeks, your LTD contributions continue to be taken from your S&A benefits, if applicable, and your LTD coverage continues.

How LTD works You can receive 66-2/3 percent of your covered pay (as defined beginning on page 97) if you are disabled (as defined beginning on 101) for longer than 26 weeks. The first 26 weeks is considered to be your LTD waiting period.

The first LTD payment is issued at the end of the month following the conclusion of the 26-week LTD waiting period, provided all required documentation has been received and approved. Thereafter, LTD benefits are issued on a monthly basis, at the end of the month.

Note: For the first 26 weeks of absence due to your disability, you may be eligible for S&A benefits described beginning on page 83.

LTD waiting periods spanning two calendar years The amount of your LTD benefit is based on your covered pay in effect as of the last day you work your normal full-time work schedule before you begin to miss work due to a disability.

For example, if Bill begins missing work due to a disability in November 1999, his LTD benefit is based on his LTD election and coverage amount in effect in 1999, even if his S&A benefits continue into 2000.

This protects the LTD Plan from adverse selection that might result should someone become disabled in one calendar year, then switch the next enrollment period from LTD coverage on base pay only to LTD coverage on base pay plus supplemental pay.



Other sources of income: offsets to LTD Your LTD benefit is reduced by the amount payable from other sources of income to bring the total benefit from all sources to the 66-2/3 percent level. Income from other sources includes:

_ pension benefits from Unisys

_ primary and family benefits payable to you and/or other family members on account of your disability or retirement through the Federal Social Security Act and/or the Railroad Retirement Act

_ any compensation from any employer; however, there are special provisions for rehabilitative employment (see page 102)

_ temporary and permanent disability benefits provided under any Workers' Compensation law or any other similar act

_ any damages or settlement made in lieu of Workers' Compensation benefits and made to you, Unisys, or a Workers' Compensation insurer, to the extent that any damages or settlement represents your loss of income

_ disability benefits mandated by state law

_ any compulsory benefit program of any government that provides payment for loss of time from your job because of your disability

_ primary and family benefits payable to you and/or other family members on account of your disability or retirement through any government pension program, where allowed by law, such as the Canada Pension Plan

Note: This refers only to Social Security types of government pension programs. It does not refer to government pensions earned through employment by the government or through the military.

_ no-fault automobile coverage

_ other group coverage for the same disability, including S&A benefits described beginning on page 83


106 — UAW Local 1313 as of 5/10/99

To show how the offsets work, assume Katie’s covered pay is $2,000 per month. Assume that $850 is payable as primary and family Social Security benefits. In this case, the benefit paid by the Unisys LTD Plan would be reduced so that Katie’s disability income from all sources would not exceed 66_% of her pay:

$ 2,000 times 66_%

$ 1,333 maximum benefit

Primary and family Social Security disability benefits

- 850

$ 483

Unisys LTD Plan benefit after offset for other sources of disability income

The Plan has the right to require that you apply for and appeal any denial of Social Security disability benefits.

Minimum benefit Regardless of the offsets for other sources of income, if you qualify for a benefit from the Plan, you receive at least $100 per month.

Note: The $100 monthly minimum LTD benefit is not payable if LTD benefits have been overpaid due to a retroactive award from other sources of income and you have not reimbursed the Plan.



What pay means — LTD base pay only Base pay means your annual base rate of pay as of the last payday in August of the calendar year preceding the enrollment year.

If you are hired after August of the preceding calendar year, then your annual base rate of pay as of your date of hire is used for purposes of the LTD Plan.

For purposes of the LTD Plan, base pay is frozen for the entire enrollment period.

Changes in your annual base rate of pay occurring after the last payday in August of the preceding calendar year do not increase or decrease your LTD benefit or your contributions for coverage.

For example, assume Fred’s annual base pay is $30,000 on the last payday in August 1999. Even if Fred receives an increase after August 1999, his LTD coverage for base pay only protects 66_% of $30,000 for all of 2000.

The base pay covered under the LTD option for base pay only — and upon which your LTD contributions for the enrollment period are based — is posted on the enrollment materials you receive.


108 — UAW Local 1313 as of 5/10/99

What pay means — LTD base pay plus supplemental pay The following definitions apply:

_ base pay means your annual base rate as of the last payday in August of the calendar year preceding the enrollment year

_ commissions mean the annual average of commissions paid during the 24-month period ending the last payday in August of the calendar year preceding the enrollment year

_ other variable compensation means the annual average variable compensation (such as overtime, shift differential, leader premium, Lump-Sum Recognition Awards, incentives for marketing management and Executive Variable Compensation (EVC)), paid (or eligible to be paid, but deferred) during the 24-month period ending the last payday in August of the calendar year preceding the enrollment year

For example, assume Gene’s annual base rate is $30,000 on the last payday in August 1999, and he received $10,000 for overtime between the first payday in September 1997 and the last payday in August 1999. So Gene’s annualized average overtime earnings during the 24-month period is $5,000.

Under the LTD option for base pay plus supplemental pay, the income protected at 66_% for all of 2000 is $35,000 ($30,000 base plus the $5,000 average of the 24 months of overtime). Gene’s LTD contributions for 2000 also are based on $35,000.

To be considered under the “commissions” or “other variable compensation” categories, the payments must be made under the terms of an ongoing program approved by the Unisys Employee Benefits Administrative Committee as eligible compensation under the Unisys Pension Plan.

Supplemental pay refers to all commissions and variable compensation elements noted above.

If you are hired after August of the preceding calendar year, then your earnings are the same for your first enrollment period for LTD base pay only and LTD base pay plus supplemental pay. No supplemental pay is taken into account. Only your annual base rate of pay as of your date of hire is considered.



If you have fewer than 24 months of earnings as of the August of the preceding calendar year, then your coverage and contributions for the annual enrollment period are based on the annualized average of eligible payments made from your date of hire through the last payday in August of the preceding calendar year.

For example, assume Gene’s annual base pay is $30,000 on the last payday in August 1999, and he received $10,000 for overtime between his January 1, 1998 hire date and the last payday in August 1999 (20 months).

Gene’s LTD base plus supplemental pay benefit for 2000 protects 66_% of $36,000 ($30,000 base plus $6,000; $6,000 is the $500 monthly average for 20 months of overtime times 12). Gene’s contributions throughout 2000 also are based on $36,000.

Changes in your annual base rate of pay and annual average supplemental pay occurring after the last payday in August of the preceding calendar year do not increase or decrease your LTD benefit or contributions for coverage.

The base pay plus supplemental pay for the enrollment period — and your LTD contributions for the enrollment period — is posted on the enrollment materials you receive.


110 — UAW Local 1313 as of 5/10/99

What pay means if you transfer into or out of UAW Local 1313 If you transfer from non-bargaining employment to full-time employment covered by the bargaining contract with UAW Local 1313, your new annualized base rate of pay effective upon transfer is used to determine your benefits and contributions. Supplemental pay is not considered.

For example, assume Rick is a non-bargaining employee from January 1, 1997 to March 1, 1999, when he transfers to employment covered by the contract with UAW Local 1313. As of the last pay day in August 1997, assume Rick had $3,000 of overtime earnings and between September 1997 and the last pay day in August 1998, assume he had $5,000 of overtime earnings.

If Rick participates in the LTD option covering base pay only, his LTD benefit and contributions in 1999 following his transfer are based on his March 1, 1999 base rate of pay.

If Rick participates in the LTD option covering base pay plus supplemental pay, his LTD benefit and contributions following his transfer are based on his March 1, 1999 base rate of pay. There is no consideration for the overtime earnings as a non-bargaining employee.

Similarly, if you transfer from employment covered by the bargaining contract with UAW to non-bargaining employment, your new annualized base rate of pay effective upon transfer is used to determine your benefits and contributions. Supplemental pay is not considered.

What is not included in pay The following are not included as pay for purposes of LTD Plan:

_ achievement awards

_ cash equivalents of non-cash prizes and awards

_ cash incentives paid due to flexible benefits elections

_ educational reimbursements

_ payments under commission or incentive programs not approved by the Unisys Employee Benefits Administrative Committee as eligible compensation under the Unisys Pension Plan

_ per diems

_ reimbursement for relocation expenses



What disability means — LTD

During the first two years of disability For purposes of the Unisys LTD Plan, during the first two-year period, you are considered disabled if all of the following apply:

_ you are unable to work your normal full-time work schedule due to the disability

_ you are being treated for your illness, injury or pregnancy by a licensed physician

_ it can be verified by Hartford Life that you are unable, due to your disability, to perform the essential functions of your regular occupation at any job site within Unisys (essential functions include the ability to work your normal work schedule)

You are not considered disabled under the LTD Plan if you have a medical condition but you do not miss work as the result of the condition — even if the condition may later result in your inability to work.

After two years of disability The definition of disability changes after you have been disabled for two years:

from your own occupation

to any occupation for which you may qualify or may become qualified by education, experience or training

As you near the end of your second year of disability, Hartford Life will contact you to verify that your condition qualifies for ongoing payments. If you do not meet the more restrictive definition, LTD benefits end once you have been disabled for two years.


112 — UAW Local 1313 as of 5/10/99

Reduced work schedules — LTD Each day you work less than your normal full-time work schedule due to a disability is treated as if it were a full day. This includes periods of time during which you may be able to perform your regular duties on a reduced work schedule.

Rehabilitative employment — LTD Unisys encourages you to resume work as soon as you can, even if it means working at your regular job for fewer hours or taking a rehabilitative job within Unisys or with another employer, as approved by Hartford Life.

If as the result of working in an approved rehabilitative status, your pay is less than 80 percent of your covered pay, you continue to receive a benefit from the Plan. Your new LTD benefit is calculated by determining the percentage of covered pay lost, and then multiplying your previous LTD benefit by the percentage of covered pay lost.

For example, if Dan’s covered pay is $3,000 per month and he earns $1,500 through rehabilitative employment, his pay loss is $1,500, or 50 percent.

Dan’s new LTD benefit is 50 percent of his previous amount, or $1,000 (66_% of $3,000 = $2,000; 50% of $2,000 = $1,000). So his total income is $2,500: $1,500 from his paychecks plus $1,000 from the Unisys LTD Plan.

As your pay increases up to a 20 percent loss in covered pay, your LTD benefits are adjusted under this provision. If you earn 80 percent or more of your covered earnings through rehabilitative employment, you no longer are eligible for a benefit from the Unisys LTD Plan.

Recurring disabilities — LTD If the same or related disability results in absence from work within 26 weeks after you return to your normal full-time work schedule, benefits resume under the Unisys LTD Plan without a new 26-week waiting period.

If you return and work your normal full-time work schedule for more than 26 weeks between absences, you must satisfy a new 26-week waiting period before LTD benefits start again.

Note: If you return and work your normal full-time work schedule and later miss work due to a different medical condition, you must satisfy a new 26-week waiting period before LTD benefits start.



Some disabilities are not covered under the Unisys LTD Plan The LTD Plan does not provide benefits if any on of the following applies:

_ your absence is not certified by an attending physician and by Hartford Life

_ the length of time you do not work all or part of your normal full-time work schedule exceeds the normal period of time expected for recuperation, based on your medical condition and substantiated medical documentation — in this case, LTD benefits are paid only for the normal period expected for recuperation

_ the diagnosis is not considered a covered diagnosis and/or the treatment is not considered a covered treatment under a medical plan sponsored by Unisys

_ you are working anywhere for compensation or profit — other than in a rehabilitation program approved by Hartford Life - while you are not working at your regular occupation at your normal full-time work schedule for Unisys because of your disability

_ your disability is caused by an intentionally self-inflicted injury or attempted suicide

_ your disability is caused by participation in a riot or service in the armed forces of any country or international authority

_ your disability is caused in the course of committing a felony, trying to commit a felony, or engaging in an illegal occupation


114 — UAW Local 1313 as of 5/10/99

When LTD payments end LTD payments generally continue for as long as you are disabled as defined beginning on page 101, until your condition improves to the extent you can resume work, or you reach the maximum benefit period as noted below:

Age when S&A benefits begin

Maximum LTD benefit period

Under age 60

Until the 1st of the month after your 65th birthday

Age 60, but under age 65

60 months


36 months


24 months

Age 75 or older

18 months

Note: The definition of disability changes after you have been disabled for two years:

from your own occupation

to any occupation for which you may qualify or may become qualified by education, experience or training

As you near the end of your second year of disability, Hartford Life will contact you to verify that your condition qualifies for ongoing payments. If you do not meet the more restrictive definition, LTD benefits end once you have been disabled for two years.

Mental/nervous or substance abuse conditions provisions If your disability is the result of a mental/nervous or substance abuse condition, LTD benefit payments are limited to 24 months. However, if you are confined to a hospital due to one of these causes on the last day of the 24-month period, benefit payments continue until the earliest of the following dates:

_ the time outlined in the above chart

_ the date your confinement ends, if it was for less than 14 calendar days, or

_ 90 calendar days after the date confinement ends, if it was for 14 or more calendar days

Definition of mental/nervous conditions: For purposes of this section, mental/nervous condition means any psychological, behavioral or emotional disorder or ailment of the mind, including physical manifestations of psychological, behavioral or emotional disorders, but excluding demonstrable, structural brain damage.



Requesting LTD Benefits You will receive an LTD application from Hartford Life after they have determined, through ongoing review of your S&A claim, that you are likely to be disabled as defined by the LTD Plan beyond 26 weeks.

You may be asked to provide updates on your condition and other sources of income from time to time.

Hartford Life has the right to require at any time that you attend an Independent Medical Examination (IME) at no cost to you. Also, Hartford Life can require that you provide any additional information that would clarify your disability status and other sources of income.

When LTD coverage ends For important information about when your coverage ends under the Unisys LTD Plan, refer to the section that begins on page 131.


_ plan administration and funding

_ how to appeal a benefits request determination and case review

_ right to recover excess payments




116 — UAW Local 1313 as of 5/10/99

Extraterritoriality: important information on LTD for employees residing in Arkansas, California, Indiana, Texas and Vermont

Arkansas The insurance laws of the state of Arkansas require that Arkansas residents be informed that unresolved questions may be directed to the Arkansas Insurance Department's Consumer Services Division.

The following information is applicable to residents of Arkansas and is included to bring the LTD Plan into conformity with Arkansas law.

INSURER INFORMATION NOTICE

Any questions regarding the plan may be directed to Hartford Life Insurance Group Sales Office indicated below:

The Hartford Insurance Co. Group Sales Office 303 Lippincott Centre Suite 122 PO Box 670 Marleton NJ 08053

If the question is not resolved, you may contact the Arkansas Insurance Department:

Arkansas Insurance Department Consumer Services Division 400 University Tower Building Little Rock AR 72204 Telephone: 1-800-852-5494

This notice is for information only and does not become a condition of the plan.



California The insurance laws of the state of California require that California residents be notified of the Family Rights Act of 1991.

The following information is applicable to residents of California and is included to bring the LTD Plan into conformity with California state law.

Notice of Family Rights Act of 1991:

The following provision is added to the section entitled Termination as an informational notice.

You may be entitled to continue your coverage for up to 4 months during any 24-month period if you are absent from Active Full-Time work due to a family care leave of absence under provisions of the California Family Rights Act of 1991. During such period, your coverage may be continued according to a plan established by your employer. Please contact your employer for further information on your right to continued coverage during a family care leave of absence.


118 — UAW Local 1313 as of 5/10/99

Indiana The insurance laws of the state of Indiana require that Indiana residents be notified of the address and phone number of the Indiana Department of Insurance for complaints.

The following information is applicable to residents of Indiana and is included to bring the LTD Plan into conformity with Indiana law.

Notice to Policyholders:

As our policyholder, your satisfaction is very important to us. Should you have a valid claim, we fully expect to provide a fair settlement in a timely fashion.

If you feel that a claim that you have submitted has been handled incorrectly, please contact Hartford Life local claim office. Your employer will be able to provide you with the location of the local claims office.

Should you feel you are not being treated fairly or that your claim has not been acted upon within a reasonable period of time, we want you to know that you may contact the Indiana Department of Insurance with your complaint and seek assistance from the governmental agency that regulates insurance.

To contact the department, write or call:

Public Information/Market Conduct Indiana Department of Insurance 311 West Washington Street, Suite 300 Indianapolis IN 46204-2787 Consumer Hotline: 1-800-622-4461 In the Indianapolis area: 1-317-232-2395

This notice to policyholders is for your information only and does not become a condition of this plan.



Texas The insurance laws of the state of Texas require that Texas residents be notified of the address and telephone number of the Texas State Board of Insurance for complaints and special notification that the LTD policy is not a policy of Workers' Compensation insurance.

The following information is applicable to residents of Texas and is included to bring the LTD Plan into conformity with Texas state law.

Where to Call For Information or To Make a Complaint

If you have a question or complaint, you or the policyholder may call Hartford Life at the following toll-free telephone numbers. When calling, please give us the following information:

(1) Policy number; and

(2) Name of the policyholder (employer or organization), as shown in this Plan.

1-800-752-9713 If about a claim 1-800-428-5711 If not about a claim

If the problem is not resolved, you or the policyholder may write to:

The State Board of Insurance PO Box 149091 Austin TX 78714-9091 Fax# (512) 475-1771

This notice of complaint procedure is for information only and does not become a condition of this Plan.

The insurance policy under which this certificate is issued is not a policy of Workers' Compensation insurance. You should consult your employer to determine whether your employer is a subscriber to the Workers' Compensation system. Z(SP)TX2


120 — UAW Local 1313 as of 5/10/99

Vermont The insurance laws of the state of Vermont require that Vermont residents be notified of a number to call if they have a question about a claim.

The following information is applicable to residents of Vermont and is included to bring the LTD Plan into conformity with Vermont law.

Where to Call with Claim Questions

If you have a question about a claim, you may call Hartford Life at the following toll-free telephone number: 1-800-752-9713.

When calling, please provide the following information:

(1) The policy number, and

(2) The name of the policyholder (employer or organization), as shown in this Plan of Insurance.

OTHER BENEFITS IF YOU ARE DISABLED LONGER THAN 26 WEEKS

UAW Local 1313 as of 5/10/99 — 121

OTHER BENEFITS IF DISABLED LONGER THAN 26 WEEKS The following benefits continue while you are disabled as defined under the Unisys LTD Plan (see page 101). You need not be a participant in the LTD Plan. You must, however, meet all requirements for ongoing benefits under the Unisys LTD Plan, even if you are not receiving payments from the Plan, in order to qualify for these benefit continuations. This includes the requirement to submit supporting documentation requested by Hartford Life, even if you are not enrolled for LTD coverage.

Medical Medical coverage is available under the provisions of the medical plan for retirees and disabled former employees that applies to members of UAW Local 1313 (PRM). This is the case even if you had opted out of coverage under a medical plan sponsored by Unisys in the year in which you no longer could work your normal full-time work schedule due to your disability — however, if you defer participation in PRM beyond the date you could first begin participation, satisfactory proof of good health is required for yourself and any dependents you wish to later enroll for medical coverage.

Your dependents who are eligible to be covered prior to the date you become eligible for PRM also may be covered under PRM, provided you make any required contributions for their coverage.

You and your eligible dependents continue to be eligible to participate in PRM as long as your disability qualifies for consideration of benefit payments under the Unisys LTD Plan and you continue to pay any required medical contributions. Your covered dependents also must meet the marital status, age and student status requirements of PRM.

More information is provided on page 145.

As an alternative, you and your dependents also may be eligible to participate in COBRA coverage for a period of time. For more, refer to the information beginning on page 135.

Note: If you are working in a rehabilitative employment status with Unisys, you may be eligible to continue to participate in the medical plan at the same contribution rates that apply to active employees.

Dental Dental coverage ends when your S&A benefits end (or when LTD benefits resume, in the case of a recurring disability). If you and your covered dependents are enrolled in the dental plan when your S&A benefits end, you may be eligible to elect COBRA continuation coverage as described beginning on page 135.

Note: If you are working in a rehabilitative employment status with Unisys, you may be eligible to continue to participate in the dental plan at the same contribution rates


122 — UAW Local 1313 as of 5/10/99

that apply to active employees.



Reimbursement Accounts You may be able to continue making contributions to a Health Care Reimbursement Account, on an after-tax basis through COBRA coverage. See information beginning on page 135.

Company-Provided Life and AD&D Insurance These coverages continue as long as your disability qualifies for consideration of benefit payments under the Unisys LTD Plan.

Retirement benefits

Pension plan through Unisys If you are eligible for the pension plan available through Unisys, you continue to accrue service just as if you were actively at work.

Note: If your LTD benefits end before five years due to your age at the time you became disabled, up to five years of service may continue to accrue under the pension plan. This does not apply, however, if LTD benefits would have ended due to any other Plan limitation not related to your age when you became disabled.

If you are eligible to retire under the terms of the pension plan, you may elect to receive your pension benefits while you are collecting benefits from the Unisys LTD Plan, if any. However, once your pension benefits begin, no further service accrual applies and your pension payments are considered another source of income, so your LTD payments (if any) may be reduced. The combination of your pension benefits and your LTD benefits are subject to the Unisys LTD Plan payment maximum of 66-2/3 percent of your covered pay.

As long as you are eligible for the Company-Provided Life Insurance as noted above, no death benefit is payable from the pension plan.

Unisys Savings Plan You are entitled to withdraw all or any portion of your savings plan account under the disability-related withdrawal rules of the Unisys Savings Plan.

124 — UAW Local 1313 as of 5/10/99

DEATH BENEFITS


UAW Local 1313 as of 5/10/99 — 125

INTRODUCTION A number of programs may provide benefits to your survivors if you die while employed by Unisys.

You are provided with Company-Provided Life Insurance and Accidental Death and Dismemberment Insurance coverage after you satisfy the waiting period.

Business Travel Accident Insurance provides additional coverage while you are traveling on company business. Seat Belt Insurance provides additional coverage while you are driving or riding in a passenger car, anywhere in the world, 24 hours a day, seven days a week. These benefits are provided at no cost to you.

You also have the opportunity to purchase additional life insurance, accident insurance and dependent life insurance through the Group Universal Life Program (GULP). You pay the full cost of coverage based on group rates. The Program also offers a cash accumulation feature.

GULP is separate from the Flexible Benefits Program. Unisys provides the availability of payroll deductions for this program. GULP is offered by MetLife, with Kirke Van Orsdel (KVI) as the administrator for the program.

The Death Benefits section of this booklet has been divided into discussions on these programs:

_ Company-Provided Life Insurance

_ Accidental Death and Dismemberment Insurance

_ Business Travel Accident and Seat Belt Insurance

_ Group Universal Life Program (GULP)

_ Other Benefits Available to Your Survivors

These topics are noted in the headings displayed at the top of each page.

COMPANY-PROVIDED LIFE INSURANCE

126 — UAW Local 1313 as of 5/10/99

COMPANY-PROVIDED LIFE INSURANCE You are provided with life insurance coverage equal to one and one-half times pay after you meet the waiting periods noted earlier in this booklet. Coverage is automatic and is provided at no cost to you.

What pay means — Company-Provided Life Insurance For purposes of Company-Provided Life Insurance, the definition of pay is determined under the same terms and conditions in effect as of May 10, 1999 for Company-Provided Life Insurance for active non-bargaining Unisys employees. The definition is the same as the one used for LTD base pay plus supplemental pay (refer to the information beginning on page 98). The same exclusions also apply (see page 100).

When coverage becomes taxable {tc \l3 "When coverage becomes taxable} Under current federal regulations, if your life insurance coverage equals more than $50,000, the value of coverage over $50,000 is considered taxable income to you and is subject to taxes, including Social Security taxes (FICA). The amount of taxable income is determined from government tables and appears on your Form W-2 for filing with your federal income tax return.

For example, assume Carl’s base pay plus supplemental pay is $57,000. In this case, his life insurance amount is $57,000. The value of the $7,000 coverage that exceeds $50,000 is considered income subject to taxation. The value of the $7,000 subject to taxation varies, depending on Carl’s age and the governmental table rate for Carl’s age.

Covered deaths Company-Provided Life Insurance is payable regardless of the circumstances surrounding your death. There are no exclusions.

Your beneficiary Your beneficiary is the individual or group of individuals whom you designate to receive payment if you die.

When you enroll in the Flexible Benefits Program, you complete a beneficiary designation form. This form applies to benefits payable upon your death from all plans through Unisys that provide survivor benefits, including any lump-sum pension death benefit if you are


UAW Local 1313 as of 5/10/99 — 127

eligible to participate in the pension plan. (A separate beneficiary form is required if you participate in GULP.)


128 — UAW Local 1313 as of 5/10/99

Standard Beneficiary Designation Unisys endorses the Standard Beneficiary Designation noted below.

Standard Beneficiary Designation

Any benefit payable at your death will be paid to your: _ spouse, if living at your death;

if not living

_ surviving children equally, including legally adopted children; if none survives

_ surviving parents equally; if neither survives

_ surviving brothers and sisters equally; if none survives

_ estate

The Standard Beneficiary Designation provides the convenience of automatically updating your beneficiaries as your family composition changes — without the need for you to update the names of those with the noted relationships. You don't need to remember to change your designations when you acquire or lose immediate family members.

For example, if Mary uses the Standard Beneficiary Designation, she does not need to complete a new form to add her newborn child as a beneficiary. Mary also does not need to remember to change her beneficiary if she divorces, remarries, or her immediate family members predecease her.

Non-standard designation You may override the Standard Beneficiary Designation and name any beneficiary you wish, including any corporation except Unisys.

You may choose the same beneficiary for all benefit plans or a different beneficiary for each plan. You must specify the name and relationship of the beneficiary for each plan to which the designation applies. If a specific beneficiary is not designated for each plan, the Standard Beneficiary Designation applies to the plan(s) with no specified beneficiary.

If you are married and you name someone other than your spouse as your sole beneficiary for the Unisys Savings Plan, your spouse must provide written consent by signing the appropriate section on the beneficiary designation form and having that signature witnessed by a notary public.

Changing your beneficiary You may change your beneficiary designation at any time by submitting a new beneficiary


UAW Local 1313 as of 5/10/99 — 129

designation form to the Unisys Benefits Service Center.


130 — UAW Local 1313 as of 5/10/99

No beneficiary designation form on file If no beneficiary designation form is on file, the Standard Beneficiary Designation is assumed.

Beneficiaries who are minors If your beneficiary is a minor, benefits can be paid only to the minor's guardian as substantiated by appropriate documentation proving legal guardianship status.

Special note on state laws and spousal rights Under the laws of several states, your spouse may be entitled to a portion of the life insurance proceeds payable upon your death, regardless of any non-spouse beneficiary designation. If you designate a person other than your spouse as the beneficiary for the Company-Provided Life Insurance, you may wish to consult with an attorney to determine what effect, if any, state law may have upon such designation.

Requesting life insurance benefits If you die, your family should notify the Unisys Benefits Service Center and your supervisor as soon as possible. A certified copy of your death certificate will be requested by the Unisys Benefits Service Center.

Necessary information, including the death certificate, will be provided by the Unisys Benefits Service Center to Kirke Van Orsdel (KVI)..

If your beneficiary is a minor, benefits can be paid only to the minor's guardian as substantiated by appropriate documentation proving legal guardianship status.


UAW Local 1313 as of 5/10/99 — 131

Accelerated death benefit payments An Accelerated Death Benefit Option (ABO) gives you the ability to obtain a lump-sum payment from your Company-Provided Life Insurance while you are alive if you meet both of the following requirements:

1. Your condition is such that you would be eligible for receipt of benefits under the Unisys Long-Term Disability Plan (even if you are not enrolled in the LTD Plan) or your current medical condition is such that you are expected to be able to meet these requirements.

2. You provide a certification from your attending physician that you are diagnosed as terminally ill with a life expectancy of six months or less.

How much you can request You choose the amount of the ABO, up to 50 percent of the coverage in effect at the time your current period of disability prevented you from working your normal full-time work schedule. The amount cannot be less than $5,000 or more than $250,000.

The amount you request is reduced by eight percent to cover the administrative costs of advancing payment to you, the insurance company’s risk and the loss of interest on the up-front portion of the death benefit.

If you receive an ABO payment, upon your death, your beneficiary receives the amount of your Company-Provided Life Insurance reduced by the amount paid to you and the eight percent administrative fee.

Limitations You may choose the ABO option only once. So you cannot make a request for a portion of the balance of your Company-Provided Life Insurance after you receive the ABO payment.

If you reside in a community property state and you are married, you may be required to obtain your spouse’s consent in order to request an ABO.

You may not request an ABO if your Company-Provided Life Insurance has been assigned. You may, however, assign the balance of your Company-Provided Life Insurance after you have requested an ABO.

Unisys does not accept viatical assignments on Company-Provided Life Insurance.

How to request an ABO payment If you are diagnosed as terminally ill with a life expectancy of six months or less, and you want to request an ABO payment, contact Kirke Van Orsdel (KVI) at the telephone number listed in the front of this booklet.


132 — UAW Local 1313 as of 5/10/99

When coverage ends For important information about when your coverage ends, company-sponsored continuation coverage (available in case of workforce reduction or layoff, disability leave of absence, or approved unpaid leaves of absence), and conversion to an individual policy, refer to the section that begins on page 131.







ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE

UAW Local 1313 as of 5/10/99 — 133

ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE You are provided with Accidental Death and Dismemberment (AD&D) Insurance equal to one times pay after you meet the waiting periods noted earlier in this booklet. Coverage is automatic and is provided at no cost to you.

What pay means — AD&D insurance For purposes of AD&D insurance, the definition of pay is determined under the same terms and conditions in effect as of May 10, 1999 for Company-Provided Life Insurance for active non-bargaining Unisys employees. The definition is the same as the one used for LTD base pay plus supplemental pay (refer to the information beginning on page 98). The same exclusions also apply (see page 100).

When benefits are payable AD&D benefits are payable if, as the result of an accident that occurs while you are covered under the Plan, you suffer any of the losses listed below within 90 calendar days from the date of the accident:

For loss of

Benefit amount payable

Payable to

Loss of life

1 times pay*

Your beneficiary

Loss of any of the following combinations: · both hands · both feet · one hand and one foot · sight in both eyes

1 times pay*

You

Loss of one hand or one foot and the sight of one eye

1 times pay*

You

Loss of one hand or one foot

.5 times pay*

You

* The same definition of pay applies as is used for LTD base pay plus supplemental pay (refer to the information

beginning on page 98). The same exclusions also apply.

If you suffer more than one loss as a result of a single accident, benefits are paid for the greater loss.

Loss of hands and feet means complete severance through or above the wrist or ankle joint.

Loss of sight means the complete and irrecoverable loss of sight.

The AD&D benefit is payable in addition to your Company-Provided Life Insurance benefit that may be payable in the event of your death.


134 — UAW Local 1313 as of 5/10/99

Your beneficiary Your beneficiary for AD&D coverage is the same as your beneficiary for your Company-Provided Life Insurance, unless you designate otherwise.

Some losses are not covered AD&D coverage is not provided for death or dismemberment for any of the following reasons:

_ accident, injury, death or other loss caused or contributed to by sickness or infection (except pyogenic infection that occurs through an accidental cut or wound)

_ declared or undeclared war, acts of war, or any act of international armed conflict or conflict involving armed forces of any international authority

_ suicide or attempted suicide

_ bodily or mental infirmity

Requesting benefits and proof of claim If you die or suffer a loss covered by the AD&D Insurance, you or your family should notify the Unisys Benefits Service Center and your supervisor as soon as possible.

The Unisys Benefits Service Center will provide the necessary information to Kirke Van Orsdel (KVI) regarding your death or loss.

KVI will provide you or your beneficiary with any required forms regarding the accident and your loss.

The Unisys Benefits Service Center must be notified of the loss and the requested supporting information must be provided to KVI no later than 90 calendar days after the date of the death or loss.

KVI 400 Locust Street PO Box 9122 Des Moines IA 50306

Failure to furnish proof of loss within the time provided does not invalidate or reduce any benefits request if it is shown not to have been reasonably possible to furnish such proof, and that the proof was furnished as soon as was reasonably possible.

KVI has the right to request and arrange for examinations when and so often as it may reasonably require during the period your benefits request is pended. Further, unless forbidden by law, KVI has the right to request and arrange for an autopsy in the case of your death.

If any of the Plan’s time limitations with respect to furnishing proof of loss or bringing legal action is less than that permitted by the laws of the state or jurisdiction



in which you reside as of the date of the accident, the time limitations will be extended to agree with the minimum period allowed by such law.


136 — UAW Local 1313 as of 5/10/99

When AD&D coverage ends For important information about when your coverage ends and company-sponsored continuation coverage (available in case of workforce reduction or layoff, disability leave of absence, or approved unpaid leaves of absence), refer to the section that begins on page 131.







BUSINESS TRAVEL ACCIDENT AND SEAT BELT INSURANCE

UAW Local 1313 as of 5/10/99 — 137

BUSINESS TRAVEL ACCIDENT AND SEAT BELT INSURANCE Business Travel Accident Insurance provides benefits if you die or suffer a dismemberment as a result of an accident that occurs while you are traveling on company business. There is no waiting period before your coverage for these benefits begins.

Seat Belt Insurance pays a $10,000 benefit to your beneficiary if you die within one year of — and as a direct result of — an auto accident, provided it can be verified that you were properly wearing a seat belt at the time of the accident. Seat belt coverage applies for automobile accidents occurring anywhere in the world, 24 hours a day, seven days a week. You need not be traveling on company business.

These coverages are in addition to your Company-Provided Life Insurance and Accidental Death and Dismemberment Insurance benefits.

Business travel accident Business travel accident benefits cover your death or dismemberment (loss of hands, feet, eyes, hearing or speech) caused on account of an accident that occurs anywhere in the world while you are traveling on company business. Unisys pays the entire cost of this protection; you pay nothing.

Benefits also are paid if you are not found within one year of the disappearance, sinking, or wrecking of a conveyance in which you were riding. Further, payments are made in the event you suffer any covered loss if you are exposed to the elements as the result of an accident.

The business travel accident benefit also applies in the event of injury or death due to the following:

_ skyjacking/hijacking while you are on company business

_ family relocation trip that is reimbursed by the company

_ felonious assault at a Unisys facility

_ fire drills at a Unisys facility

_ bomb scare at a Unisys facility

_ acts of terrorism

_ declared or undeclared war, except within the U.S. or in any nation of which the covered person is a citizen (an act of war is defined as an act that occurs in a war region)


138 — UAW Local 1313 as of 5/10/99

Amount of business travel accident benefit Your coverage is equal to three times your pay. The same definition of pay applies as is used for LTD base pay plus supplemental pay (refer to the information beginning on page 98). These benefits are payable in addition to your Company-Provided Life Insurance benefit and AD&D coverage payable for the same accident or incident. The amounts payable and the individual to whom they are payable are indicated in the following chart.

Business travel accident benefit amounts for full-time employees Type of loss

Benefit payable

Payable to

Loss of life

3 times pay*

Your beneficiary

Loss of any of the following combinations: · both hands · both feet · one hand and one foot · one hand or one foot and the sight in one eye · the sight in both eyes

3 times pay*

You

Loss of speech and hearing

3 times pay*

You

Loss of speech or hearing

1.5 times pay*

You

Loss of one hand or one foot, or the sight in one eye

1.5 times pay*

You

Loss of thumb and index finger of the same hand

.75 times pay*

You

* The same definition of pay applies as is used for LTD base pay plus supplement pay (refer to the information beginning

on page 98). The same exclusions also apply.

If you suffer more than one loss as a result of a single accident, benefits are paid for the greater loss.

Loss of hands and feet means complete severance through or above the wrist or ankle joint.

Loss of sight means the complete and irrecoverable loss of sight.

Loss of speech means total irrecoverable loss of audible communication.

Loss of hearing means permanent total deafness in both ears that cannot be corrected to any functional degree by any aid or device.



Minimum business travel accident benefits The minimum benefit payable for full-time employees is $100,000.

Maximum business travel accident benefits If you receive payment for any benefits provided through Business Travel Accident Insurance and subsequently die as the result of the same accident, the death benefit (three times your pay) is reduced by the amount previously paid. Therefore, the maximum benefit for all injuries and death does not exceed three times your pay (or the $100,000 minimum, if this is less than three times your pay).

Total business travel accident benefits payable are subject to a limit of $5,000,000 for any single accident.

What pay means for business travel accident benefits For purposes of business travel accident benefits, the same definition of pay applies as is used for the LTD option for base pay plus supplemental pay. Refer to the information beginning on page 98. The same exclusions also apply (see page 100).

The maximum covered pay is $772,000.

Some situations are not covered for business travel accident benefits Coverage is not provided unless death, dismemberment or loss occurs as a direct result of injuries incurred within one year of the accident — and for no other cause.

Business travel accident coverage does not include death or dismemberment for any of the following reasons:

_ suicide or attempted suicide

_ declared or undeclared war or acts of war that occur within the U.S. or in any nation of which the covered person is a citizen (an act of war is defined as an act that occurs in a war region)

_ any injury occurring while you are on military duty

_ commuting between home and your usual workplace

_ commission of, or participation in the commission of, a felony

_ travel or flight in any spacecraft or aircraft, except as a passenger

_ serving as the pilot or crew member of an aircraft, except when serving in an official capacity as a pilot or crew member on a Unisys aircraft

_ aircraft flown without an air worthiness certificate or aircraft flown by a pilot without a valid license to fly

_ any bacterial infection not caused by an accidental cut, wound or food poisoning, or loss caused by or resulting from illness, disease or bodily infirmity


140 — UAW Local 1313 as of 5/10/99

Seat belt insurance The seat belt benefit is $10,000. Unisys pays the entire cost of this protection; you pay nothing.

The benefit is payable if you die as a direct result of an automobile accident and you were properly wearing your seat belt. To be covered, the automobile, van, jeep, motor home vehicle, or personal (as opposed to commercial) truck in which you were riding must have been used exclusively for passenger transportation at the time of the accident. If your death occurs within one year of the accident and is directly related to the accident, benefits are payable.

This coverage applies to automobile accidents anywhere in the world, 24 hours a day, seven days a week. You need not be on company business.

Some deaths are not covered by the seat belt benefit No benefits are payable for accidents resulting from the following:

_ race car driving

_ sports car rally

_ exhibition driving

_ automobile travel for a business interest other than Unisys

_ motorcycles

_ other non-routine, non-over-the-road, non-passenger automobile transportation, including but not limited to all-terrain vehicles and snowmobiles

When Business Travel Accident and Seat Belt Insurance coverages begin

When you leave your home to go to work for Unisys at a place other than where you usually work or when you leave from your usual place of work for Unisys to conduct company business, you are considered to be traveling on company business. You are covered from the time your trip begins until you return to your home or usual place of business, whichever occurs first, even if you take personal time during your trip to travel.

For seat belt benefits, coverage applies anywhere in the world, 24 hours a day, seven days a week, beginning on your date of hire (or 61st calendar day of employment, in the case of an eligible part-time employee). You need not be on company business.



How to enroll You need not enroll for Business Travel Accident and Seat Belt Insurance.

Your beneficiary Your beneficiary for this coverage is the same as your beneficiary for your Company-Provided Life Insurance unless you designate otherwise. (Refer to information beginning on page 115.)

Requesting Business Travel Accident and Seat Belt Insurance benefits

If you die or suffer a loss covered by the Business Travel Accident and Seat Belt Insurance, you or your family should notify the Unisys Benefits Service Center and your supervisor as soon as possible. The Unisys Benefits Service Center will provide the necessary information to Unisys Corporate Risk Management regarding your death or loss.

Corporate Risk Management will submit a request for benefits to the insurance company. The insurance company requires that proof of the loss or death be furnished before any benefits are paid.

For seat belt benefits, a certified copy of the death certificate is required. In addition, a copy of the accident report and some documentation verifying that a seat belt was being properly worn at the time of the accident is required. Generally, this information is part of a standard police report.

Instead of a lump-sum payment, your beneficiary may choose installment payments from one of the options being offered at the time of your death.

Payments generally are made within four weeks of the date all the necessary information is received by Corporate Risk Management.

When Business Travel Accident and Seat Belt Insurance ends For important information about when your coverage ends, refer to the section that begins on page 131.

Additional information about Business Travel Accident and Seat Belt Insurance

Important information is contained in the section that begins on page 151. The subjects covered include, but are not limited to:


142 — UAW Local 1313 as of 5/10/99






GROUP UNIVERSAL LIFE PROGRAM (GULP)

UAW Local 1313 as of 5/10/99 — 143

GROUP UNIVERSAL LIFE PROGRAM (GULP) MetLife makes available to Unisys employees a group universal life product. The sole involvement of Unisys in the program is that the company makes available to employees the option of paying premiums through payroll deductions, which Unisys then sends to MetLife.

The program includes life insurance and the availability of an Accidental Death Benefit when you purchase life insurance coverage for yourself, your spouse, or both.

This additional insurance coverage is outside the Flexible Benefits Program and is not an employer-sponsored welfare benefit plan for purposes of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

You may enroll in GULP without the need to provide satisfactory proof of good health, provided you apply within 30 calendar days of your date of hire (or date of transfer to an eligible employment status, if later).

You also may request enrollment subsequent to your initial 30-day enrollment period. However, coverage does not become effective until MetLife has reviewed and approved documentation satisfactorily verifying your good health.

Coverage is portable, so you can continue coverage after you retire or otherwise leave the company. The cost of coverage is higher if you are not paying for coverage through Unisys payroll deductions.

GULP also has a feature that allows you to make after-tax investments and earn money on a tax-deferred basis until the values are withdrawn.

You may receive additional information on the Group Universal Life Program from Kirke Van Orsdel (KVI) at the telephone number listed in front of this booklet.

A separate beneficiary form is required if you participate in GULP. This form also is available from KVI.

The Unisys Concierge Service has enrollment materials for the Group Universal Life Program.

OTHER BENEFITS AVAILABLE TO YOUR SURVIVORS

144 — UAW Local 1313 as of 5/10/99

OTHER BENEFITS AVAILABLE TO YOUR SURVIVORS In addition to the life insurance benefits available to protect your family in the event of your death, Unisys provides other benefit programs for your family's security.

Medical Your dependents may be eligible for the following options for medical coverage.

Company-sponsored COBRA If you die while in active service, coverage for your dependents who were included under your medical option at the time of your death continues to be sponsored by Unisys for six months. Your dependents must make any required contributions for medical coverage to continue. Failure to do so results in the immediate termination of coverage retroactive to the end of the period covered by the last contribution made. (More information is provided on page 148.)

Your dependents may elect COBRA coverage for up to an additional 30 months by paying the cost of coverage plus a 2 percent administrative fee. (Refer to information beginning on page 135.)

PRM coverage Your dependents who were eligible to be covered under a medical plan through Unisys at the time of your death are eligible to participate in PRM after the six-month period of company-sponsored COBRA ends if your death while in active service occurs:

_ after you completed 25 or more years of credited or vesting service (as defined in the pension plan)

OR

_ after meeting the eligibility requirements for PRM

More information is provided on page 148.

Dental If you die while in active service, coverage for your dependents who were covered under the Unisys Dental Plan at the time of your death continue to be sponsored by Unisys for six months. Your dependents must make any required contributions for dental coverage to continue. Failure to do so results in the immediate termination of coverage retroactive to the end of the period covered by the last contribution made.

Your dependents may elect COBRA coverage for up to an additional 30 months by paying the cost of the coverage plus a 2 percent administrative fee. (Refer to information beginning on page 135.)

OTHER BENEFITS AVAILABLE TO YOUR SURVIVORS

UAW Local 1313 as of 5/10/99 — 145

Reimbursement accounts Your estate may request payments from your reimbursement account balances, provided all requests are submitted within the filing limits.

Pension benefits If at the time of your death you have a vested benefit in a Unisys pension plan, your spouse, if any, is eligible to receive a pension benefit. Your spouse's benefit is 50 percent of the amount you would have received under the 50 percent Contingent Annuity Option if you had left the company on the date of your death.

If you are age 55 or older at the time of your death and you have a vested benefit in a Unisys pension plan, your spouse could begin to receive pension benefits payable as of the first of the month following your death.

If you are under age 55 on the date of your death, your spouse could begin to receive pension benefits payable as of the first of the month concurrent with or following the date you would have reached age 55.

In any case, your spouse can defer the receipt of pension benefits to any date after the beginning date noted above. Benefits must begin, however, on or before the first of the month concurrent with or immediately following the date you would have reached age 65.

Unisys Savings Plan benefits If at the time of your death you have a balance in the Unisys Savings Plan, your beneficiary is entitled to receive a distribution from the Plan.

For more information, your beneficiary should contact the Unisys Benefits Service Center at the telephone number listed in front of this booklet.

146 — UAW Local 1313 as of 5/10/99

WHEN COVERAGE ENDS & CONTINUATION OPTIONS

WHEN COVERAGE ENDS

UAW Local 1313 as of 5/10/99 — 147

INTRODUCTION This section provides information on when your coverage ends. It also references continuation of group coverage, certification of creditable coverage and conversion to individual coverage, as applicable.

The information reflects continuation provisions incorporated in the Consolidated Omnibus Budget Reconciliation Act (COBRA) and amendments, and the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

There may be instances when Unisys continues to provide financial support toward the cost of coverage if you are no longer working; this is called “company-sponsored COBRA.”

In some cases, you can convert from group coverage to individual coverage and in other cases, certain benefit provisions may include extended protection for a period of time after you no longer are working.

CERTIFICATION OF CREDITABLE COVERAGE “Creditable coverage” is a period of continuous coverage under a medical or dental plan. For purposes of your medical creditable coverage through Unisys, it is the period of continuous coverage under any of the medical options offered through the company. If you change from one medical option (other than opt-out) to another medical option (other than opt-out), the entire period of time is considered creditable. Creditable coverage is broken by any period of 63 calendar days or more during which you do not have coverage. Eligibility waiting periods do not count against the 63-day break.

If medical and/or dental coverage through Unisys ends for you or any covered dependent, the Unisys Benefits Service Center automatically provides written certification evidencing your prior period of coverage through Unisys as of the date coverage ended. The certification is mailed to the last address on company records for the individual(s) losing coverage.

In addition, the Unisys Benefits Service Center issues written certificates of creditable coverage when you and/or your covered dependents:

_ become eligible for COBRA coverage through Unisys

_ lose COBRA coverage through Unisys

_ request a certificate within 24 months of the date coverage through Unisys ended

The certification of creditable coverage may be used as documentation to reduce any preexisting condition exclusion for certain conditions before you are covered for that condition under the health plan of a subsequent employer or health insurance issue. The certificate may be needed if professional advice, diagnosis, care or treatment was recommended or received for the condition within the six-month period before your enrollment in the new plan. Note: HIPAA limits the circumstances under which coverage may be excluded for medical conditions present before you enroll in a plan. Under HIPAA, a preexisting condition exclusion generally may not be imposed for more than 12 months (18 months for a late enrollee). The 12-month (or 18-month) exclusion period is reduced by your prior health coverage. (None of the Unisys health-care plans limit coverage due to a preexisting condition you or your eligible dependents may have at the time you join the plans. You must enroll, however, on a timely basis for coverage to be in effect.)

WHEN COVERAGE ENDS

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If you become covered under another group health plan, check with the plan administrator to see if you need to provide this certification. You also may need this certificate to buy an insurance policy that does not exclude coverage for conditions present before you enroll.

WHEN COVERAGE ENDS . . . YOUR COVERAGE Generally, your benefits coverages end during periods for which you receive no pay and/or you are not in an eligible active employment status.

Your coverage under a medical plan through Unisys, the Unisys Dental Plan, Company-Provided Life and AD&D Insurance, the Sickness and Accident benefits, and the Unisys Long-Term Disability Plan ends on the earliest of:

_ the last date covered by your contributions, if you cease making required contributions or if payment is received after it is due

_ the date your employment ends, including retirement or death (except as noted beginning on page 142 for a workforce reduction or layoff, absence due to a disability, or approved unpaid leave of absence)

_ the date you are no longer employed in an eligible class of employees

_ the effective date of your election not to participate in the applicable plan, if an opt-out option is available

_ the date Unisys discontinues the plan in whole or in part

In addition, coverage for Sickness and Accident benefits, the Unisys Long-Term Disability Plan, Business Travel Accident and Seat Belt Insurance ends on the earliest of:

_ when you leave the premises on the last day worked if your employment ends for any reason, including retirement, workforce reduction or layoff

_ when you leave the premises on the last day worked prior to commencing any type of approved leave of absence other than an approved disability leave of absence, whether or not you are paid during your leave

_ the date you are no longer employed in an eligible class of employees

_ the date Unisys discontinues the coverage in whole or part

WHEN COVERAGE ENDS

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WHEN COVERAGE ENDS . . . YOUR DEPENDENTS Coverage for your dependents under a medical plan through Unisys or the Unisys Dental Plan ends on the earliest of:

_ the date your coverage ends, unless your coverage ends due to your death and your dependent qualifies for continued coverage following your death as noted on page 148

_ the date the dependent no longer meets the plans' eligibility requirements

_ the effective date of an annual enrollment period election to discontinue coverage for the dependent

_ the effective date of an allowable election to discontinue coverage for your dependent due to a status change

_ for employees who have family coverage under interim coverage provisions, the date default coverage becomes effective

_ the date Unisys discontinues the plan in whole or in part

COBRA COVERAGE

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COBRA COVERAGE Generally, your benefits coverages end during periods for which you receive no pay and/or you are not in an eligible active employment status. As required by the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), Unisys offers optional self-paid coverage for health-care benefits to you and any covered dependent whose coverage would otherwise terminate due to one of the qualifying events described in the section that follows. Do not confuse these qualifying events with changes in status described beginning on page 21.

The health-care plans affected by these provisions are:

_ your medical option

_ Unisys Dental Plan

_ Health Care Reimbursement Account

You can continue coverage in one, all, or any combination of these plans, provided that you are covered under the applicable plans on the day before the qualifying event. For example, if you are covered by the Blue Cross CMM100 Plan and the Unisys Dental Plan, you can choose to continue coverage in both plans or only one of the plans.

Qualifying events Type 1: termination of your employment for any reason (including retirement or disability,

but not gross misconduct) or a reduction in your hours worked that results in loss of Plan eligibility

Type 2: your death

Type 3: divorce, annulment or legal separation from your spouse

Type 4: loss of eligibility by a covered dependent child due to age, marriage, student status or other dependent eligibility requirements noted beginning on page 4

Type 5: for a covered retiree or a disabled former employee and covered dependents: bankruptcy filing by the plan sponsor under Title XI, United States Code, on or after July 1, 1986

Note: Your election to drop coverage under medical and/or dental for dependents when there is no qualifying event does not entitle the dependent to COBRA coverage.

Also note: If you are eligible and enroll in Medicare after making a timely COBRA election, you are not eligible for further COBRA coverage, including dental.

COBRA COVERAGE

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Maximum period of COBRA coverage The maximum period of COBRA coverage for medical and/or dental benefits depends on the type of qualifying event that has resulted in the loss of coverage. For purposes of this section, qualifying events are defined on page 135. Any period of company-sponsored COBRA offsets the maximum period noted below.

For a Type 1 qualifying event For up to 18 months you can participate in COBRA coverage, provided you were enrolled at the time of a Type 1 qualifying event. You also can elect to continue coverage for any dependents who were enrolled for coverage immediately before the qualifying event. If you elect to drop coverage for your dependents, each dependent covered immediately before the Type 1 qualifying event has the right to elect and pay for COBRA coverage on an individual basis.

More than 18 months of COBRA coverage is available in certain circumstances:

_ An additional 11 months is available for all covered family members if any covered family member losing coverage as a result of a Type 1 qualifying event is disabled on the date coverage ends or becomes disabled within 60 calendar days of that date.

For these purposes, disabled means eligible for Social Security disability benefits and the disabled individual must provide a copy of the Social Security Disability Award to the Unisys Benefits Service Center before the end of the initial 18-month COBRA period.

This additional 11-month period of COBRA coverage provides a bridge to Medicare; it ends once the disabled person becomes entitled to Medicare if this occurs before the end of the 29-month period.

_ If you become entitled to Medicare before the end of the 18-month period, dependents not eligible for Medicare are eligible for COBRA coverage for up to 36 months measured from the earlier of the date you become entitled to Medicare or the date of the Type 1 qualifying event.

For health-care reimbursement accounts, the maximum period of COBRA coverage is the end of the calendar year in which a Type 1 qualifying event occurs.

For Types 2, 3 and 4 qualifying events Types 2, 3 and 4 qualifying events allow for up to 36 months of COBRA coverage for eligible dependents.

For a Type 5 qualifying event In this case, the maximum period of COBRA coverage for the retiree or disabled former employee is that individual's death.

For a covered surviving dependent, the maximum period is 36 months after the death of the covered retiree or disabled former employee.

COBRA COVERAGE

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For multiple qualifying events A dependent could qualify for COBRA coverage due to more than one qualifying event. In these cases, the maximum COBRA period is 36 months. The 36-month period is measured from the date of the first qualifying event.

For example, let's say Harry’s employment ends (a Type 1 qualifying event) and he elects COBRA coverage for up to 18 months for himself and his family. If Harry and his wife, Linda, become divorced (a Type 4 qualifying event) and this occurs while Linda is under Harry’s COBRA coverage, Linda may elect COBRA coverage in her own right. She could continue coverage for a maximum of 36 months measured from the date of the Type 1 qualifying event.

When COBRA coverage ends COBRA coverage ends before the maximum 18-, 29-, or 36-month periods noted earlier, when any one of the following occurs:

1. You become covered by Medicare or another group health plan sponsored by an employer other than Unisys — as an employee or as a covered dependent — provided the other group health plan does not contain any exclusion or limitation with respect to any preexisting condition and your coverage begins after you make your COBRA election.

In the event the other plan does contain any exclusion or limitation with respect to preexisting conditions, COBRA coverage is available up to the maximum allowable period only for those who are affected by the preexisting condition limitation or exclusion.

Note: Even though Medicare doesn't cover dental expenses, COBRA dental coverage ends when you become covered by Medicare, provided this occurs after you make your COBRA election.

2. You fail to make the required payment by the due date.

3. Unisys discontinues providing group health benefits to all employees.

For health-care reimbursement accounts, COBRA ends at the end of the calendar year in which a Type 1 qualifying event occurs.

Benefit levels The benefit provisions for your COBRA coverage are the same as if you continued to participate in the applicable plan as an active employee.

COBRA COVERAGE

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Notification requirement If coverage ends due to a Type 1, 2, or 5 qualifying event, the Unisys Benefits Service Center provides a notification of rights to elect COBRA coverage.

If one or more dependents lose coverage due to a Type 3 or 4 event, you or the dependent losing coverage must notify the Unisys Benefits Service Center within 60 calendar days of the date of the qualifying event at the telephone number listed in front of this booklet. This notification must include the date and description of the qualifying event and the current name and mailing address of the dependent losing coverage. The dependent losing coverage will be provided with an application to continue coverage. Failure to notify the Unisys Benefits Service Center of the qualifying event within 60 calendar days of the event results in the loss of COBRA rights.

Election period The Unisys Benefits Service Center provides a notification of the right to elect COBRA coverage. The notification includes instructions for exercising COBRA rights, as well as the cost of COBRA coverage.

You must register your COBRA election by calling the Unisys Benefits Service Center at the number listed in front of this booklet within 60 calendar days of the later of:

_ the date of the qualifying event

_ the date the notification of COBRA rights is distributed

If your COBRA election is not registered with the Unisys Benefits Service Center within the 60-day election period, you lose all COBRA rights.

Paying for COBRA coverage Your first payment is for coverage retroactive to the day after your group coverage through Unisys ended under the applicable health-care plan. Your first payment is due on the later of:

_ 45 calendar days after the day you enroll for COBRA coverage (provided this is on or before the date your right to elect COBRA coverage expires)

_ 31 calendar days following the due date of your first billing

You receive a coupon book for monthly payments due for the balance of the year. If you fail to make the monthly payment within 31 calendar days of the due date noted on the coupon for that month, your COBRA coverage stops and cannot be reinstated.

Requests for benefits are not honored for expenses incurred during a period for which payment has not been received.

COBRA COVERAGE

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Cost of COBRA coverage While you are participating in COBRA coverage, you are not considered to be participating in the Flexible Benefits Program. Contributions for COBRA coverage are made on an after-tax basis and there are no cash incentive payments.

The cost of COBRA coverage is the applicable group rate plus a 2 percent administrative fee and is paid by the individuals for whom coverage is being continued. It is not paid by Unisys. For Type 1 events, the monthly cost for the additional 11-month period is 150 percent of the group rate, instead of 102 percent.

Special note: Health-Care Reimbursement Accounts Health Care Reimbursement Account contributions cease automatically effective as of your date of termination. In the event of a leave of absence, contributions cease on the date payments through payroll end.

The option to continue making contributions is available if you are participating in a Health Care Reimbursement Account when before-tax contributions end. The maximum period of COBRA coverage is the end of the calendar year in which a Type 1 qualifying event occurs.

Payments through COBRA coverage are made with after-tax dollars, and a 2 percent administrative fee applies. However, if you are on an approved Family Medical Leave Act leave of absence, you can make up before-tax Health Care Reimbursement Account contributions missed after you return to work from your leave (provided this occurs in the same calendar year in which your leave started).

Remember, you can be reimbursed through your Health Care Reimbursement Account only for covered expenses incurred during the period of time you make contributions. If you cease making contributions before you have incurred eligible expenses that equal or exceed your contributions, you forfeit the amount you have in your account that exceeds expenses incurred through that date.

COMPANY-SPONSORED COBRA You and your dependents may be eligible for company-sponsored COBRA for selected benefits for a period of time in the case of workforce reduction or layoff, disability, or approved unpaid leaves of absence.

Your dependents may be eligible for company-sponsored COBRA for medical and/or dental benefits for a period of time in the event of your death.

During periods of company-sponsored COBRA, Unisys provides financial support toward the cost of coverage after you are no longer working.

The chart beginning on page 140 summarizes periods of COBRA coverage, including the availability of company-sponsored COBRA. The information following the chart provides further details.

COMPANY-SPONSORED COBRA

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Continuation Coverage for Selected Employment Statuses

Benefit plan

Resignation, release

Workforce reduction or layoff

Absence due to disability (up to 26 weeks)

Extended disability (longer than 26 weeks)

HAP HMO or Blue Cross (CMM100): · COBRA available · check with the plan to

determine if conversion is available

Coverage ends on termination date (last day worked plus pay in lieu of notice, if any).

Company-sponsored COBRA of one week/year of seniority; minimum 4 weeks, maximum 22 weeks. Any required contributions must be paid.

Coverage continues for 26 weeks. Any required contributions must be paid.

Coverage available under the PRM Plan for UAW members as long as disability qualifies under Unisys LTD Plan requirements. Any required contributions must be paid.

Unisys Dental Plan

· COBRA continuation coverage available

· no conversion available

Same as medical.

Same as medical.

Same as medical.

Coverage ends 26 weeks after last day worked.

Sickness and Accident Benefits


Coverage ends upon leaving the premises on the last day worked.


Benefits payable up to 26 weeks if leave of absence is for a covered disability.

Benefits exhausted after initial 26 weeks of disability.

Unisys Long-Term Disability Plan


Same as short-term disability.

Same as short-term disability.

Same as medical.

Contributions continue until LTD benefits are payable. While LTD benefits are payable, no contributions are due.

Company-Provided Life Insurance and AD&D

· conversion available for life insurance

Coverage ends on termination date.

Same as medical.

Same as medical.

Coverage continues as long as disability qualifies under Unisys LTD Plan requirements.

Business Travel Accident and Seat Belt Insurance





Coverage previously ended.

Group Universal Life Program

· coverage portable

Payroll deductions cease. Direct billing begins at higher contribution rate. Call KVI.


Payroll deductions continue.



· COBRA continuation coverage; after -tax


Payroll deductions cease. May submit requests for reimbursement of expenses incurred while contributions made.





Payroll deductions cease. May submit requests for reimbursement of expenses incurred through the end of






· no COBRA continuation coverage available


incurred through the end of the calendar year.




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Continuation Coverage for Selected Employment Statuses (continued) Approved unpaid leaves of absence, including FMLA

Death: ≥ 25 years of service or after qualifying for PRM

Death: <25 years of service and before qualifying for PRM

Retire: after qualifying for PRM

Retire: before qualifying for PRM

Coverage continues up to 3 months from last day worked. Any required contributions must be paid.

Up to 6 months company-sponsored COBRA, then coverage available under PRM for surviving spouse and dependents. Any required contributions must be paid.

Up to 6 months company-sponsored COBRA Any required contributions must be paid.

Coverage available under the PRM. Any required contributions must be paid.


Same as medical.

Coverage ends 6 months after date of death. Any required contributions must be paid.

Coverage ends 6 months after date of death. Any required contributions must be paid.




Coverage ends on the date of death.

Coverage ends on the date of death.



Same as Sickness and Accident benefits

Same as Sickness and Accident benefits.




Same as medical.

Benefits are payable.

Benefits are payable.




Benefits may be payable, depending on circumstances surrounding death.

Benefits may be payable, depending on circumstances surrounding death.




Benefits may be payable. Direct billing for optional dependent coverage. Call KVI.

Benefits may be payable. Direct billing for optional dependent coverage. Call KVI.





Payroll deductions cease. May submit requests for reimbur sement of expenses incurred while contributions made.



Payroll deductions cease. May submit requests for reimbursement of expenses incurred through the end of the calendar year.






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Workforce reduction or layoff

Company-sponsored COBRA Benefits under the following plans continue to be sponsored by Unisys for a specified period of time in the event of a workforce reduction or layoff:

_ your medical option _ Unisys Dental Plan _ Company-Provided Life Insurance _ Accidental Death and Dismemberment Insurance

The period of time these benefits continue to be sponsored by Unisys is indicated in the personalized income assistance package you receive after notice of a workforce reduction or layoff is given. The period of company-sponsored COBRA is counted against the maximum period of COBRA coverage described beginning on page 14, 136.

The minimum period of company-sponsored COBRA for these plans is four weeks measured from the date of the workforce reduction or layoff. Coverage may be sponsored for longer than four weeks if your seniority in the bargaining unit is longer than four years. In that case, you receive one week of company-sponsored COBRA for each year of seniority, up to 22.

During the company-sponsored COBRA period, you must continue to make required contributions. Failure to make required contributions results in the immediate termination of coverage retroactive to the end of the period covered by the last contributions made.

There are no cash incentive payments for opt outs beyond the effective date of the workforce reduction or layoff.

There is no company-sponsored COBRA for the following benefit programs:

_ Day Care Reimbursement Account _ Health Care Reimbursement Account — COBRA coverage is available, however there is

no company subsidy for this benefit _ Sickness and Accident benefits _ Unisys Long-Term Disability Plan _ Business Travel Accident and Seat Belt Insurance

Changing your benefit elections Within 30 calendar days of the effective date of a workforce reduction or layoff, you may change your family members covered to include only yourself. You may not, however, change your medical option or add dependents until the next enrollment period. (If you drop your dependents, they have the right to elect COBRA continuation coverage as described beginning on page 135.)

If there is an annual enrollment during company-sponsored COBRA, you are eligible to change your elections the same as any active employee. The usual coverage change restrictions apply (for example, the two-year dental restriction).

COMPANY-S

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Special provisions for those age 54 or older If you are age 54 or older with four or more years of credited or vesting service, you are eligible to grow into eligibility for post-retirement medical coverage (PRM) during the 12-month period following the effective date of your workforce reduction or layoff. The following chart summarizes your choices. You do not need to collect pension benefits for PRM participation.

Special provisions for workforce reductions for those age 54 or older On the effective date of the workforce reduction:

your age

your pension service

Participation in PRM*

55 or older

5 or more years of vesting or credited service

You have 3 choices:

sponsored COBRA for your active medical plan and begin participation in PRM. Begin participation in PRM the day after your company-sponsored COBRA ends. In this case, satisfactory proof of good health is not required. Defer participation in PRM. There are three possibilities:

pate in COBRA for your active plan: When you request enrollment in PRM, you must provide satisfactory proof of good health. You are covered as a dependent of a Unisys employee under a medical plan sponsored by Unisys: In this case, proof of good health is not required, provided PRM participation begins the day after you no longer are covered as a dependent under a medical plan sponsored by Unisys. You are not continuously covered by a medical plan sponsored by Unisys: In this case:

you can begin participation in PRM only with satisfactory proof of good health you are not eligible to choose HAP.

54 or older

4 or more years of vesting or credited service

If you meet the age and service participation requirements:

during your period of company-sponsored COBRA proof of good health is not required, provided you join PRM effective the day after your company-sponsored COBRA ends otherwise, you must provide satisfactory proof of good health

after your period of company-sponsored COBRA

of good health is not required, provided you participate in COBRA through the end of the month in which you meet the age and service requirements for PRM and you join PRM the first of the following month (versus continuing your coverage through COBRA for the maximum allowable

otherwise, you must provide satisfactory proof of good health

You may choose HAP only if your coverage in that plan is continuous, beginning while you were still in an active employment status (or beginning before the date you are no longer covered in that plan as the dependent of an active Unisys employee). Proof of good health is required if you participate in HAP COBRA before requesting PRM coverage.

Absences of up to 26 weeks due to disability

Company-sponsored COBRA


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Benefits under the following plans continue to be sponsored by Unisys for the period of time Sickness and Accident benefits are payable:


If you are enrolled, your participation also continues in the following plans:

_ Health Care Reimbursement Account _ Day Care Reimbursement Account _ Unisys Long-Term Disability Plan

For coverages to continue during this company-sponsored COBRA period, you must continue to make contributions. Generally, contributions continue to be made through payroll deductions from your S&A benefits. If, however, you are not receiving sufficient payment through payroll to cover required contributions, you must arrange with the Unisys Benefit Service Center to submit required contributions. Failure to make required contributions results in the immediate termination of coverages retroactive to the end of the period covered by the last contributions made.

Changing your benefit elections If there is an annual enrollment during your first 26 weeks of disability, you are eligible to change your elections the same as any active employee. The usual coverage change restrictions apply (for example, the two-year dental restriction). (Note: If you change your LTD option during this annual enrollment period and are unable to return to your normal work schedule at the end of your first 26 weeks of absence due to your disability, your LTD benefits for your extended period of disability are based on the coverage levels in effect on the date you first missed work due to your disability.)

COMPANY


Absences longer than 26 weeks due to disability If your absence due to a disability continues for longer than 26 weeks, you no longer are considered to be an active employee and:

_ Medical coverage is available to you under the provisions of the post-retirement medical plan (PRM).

_ Company-Provided Life and AD&D Insurance continue at the level in effect as of the date you first missed full or partial days due to the disability.

_ Your dental coverage and participation in reimbursement accounts end.

Note: If you are working in a rehabilitative employment status with Unisys, you may be eligible to continue to participate in the medical and dental plans at the same contribution rates that apply to active employees.

PRM, Company-Provided Life and AD&D Insurance coverage To be eligible for PRM coverage, life and AD&D insurance protection beyond your first 26 weeks of disability, your condition must meet the eligibility requirements for ongoing benefits under the Unisys Long-Term Disability Plan, whether or not you are enrolled for the LTD Plan.

You must make any required contributions for coverage under PRM. Failure to do so results in the immediate termination of coverage retroactive to the end of the month covered by the last full monthly contribution.

Note: If you are eligible to participate in PRM and you do not begin to participate immediately after your first 26 weeks of disability, you must provide satisfactory proof of good health for yourself and any eligible dependents before participation can begin at a later date.

PRM versus COBRA coverage Carefully weigh your options when deciding between COBRA coverage and PRM for your medical benefits. There are four possibilities:

1. Participate in PRM immediately after first 26 weeks of disability: In this case, no proof of good health is required.

2. Participate in COBRA for your active plan (this is considered a deferral of PRM participation): When you later request enrollment in PRM, you must provide satisfactory proof of good health. HAP is available only if you request that participation begin immediately after COBRA coverage with HAP ends.

3. Defer PRM participation if you are covered as a dependent of a Unisys employee under a medical plan sponsored by Unisys: In this case, proof of good health is not required, provided PRM participation begins the day after you no longer are covered as a dependent under a medical plan sponsored by Unisys.

4. Allow coverage through Unisys to lapse (this is considered a deferral of PRM participation): In this case:


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· you can begin participation in PRM only with satisfactory proof of good health

· you are not eligible to choose HAP

COMPANY


Approved unpaid leaves of absence

Company-sponsored COBRA Benefits under the following plans continue to be sponsored by Unisys for up to three months in the event of an approved unpaid leave of absence:


COBRA coverage is available for a Health Care Reimbursement Account, however there is no company subsidy for this benefit.

During the company-sponsored COBRA period, you must continue to make required contributions. Failure to make required contributions results in the immediate termination of coverage retroactive to the end of the period covered by the last contributions made.

There are no cash incentive payments for opt outs beyond the effective date of the leave of absence.

Changing your benefit elections If there is an annual enrollment during company-sponsored COBRA, you are eligible to change your elections the same as any active employee. The usual coverage change restrictions apply (for example, the two-year dental restriction).


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Retirement

PRM If you have completed the required years of service and are at least age 55 at the time your employment terminates, you and your covered eligible dependents may elect to participate in post-retirement medical coverage (PRM).

PRM versus COBRA coverage Carefully weigh your options when deciding between COBRA coverage and PRM for your medical benefits. There are four possibilities:

1. Participate in PRM immediately after active employment ends: In this case, no proof of good health is required.

2. Participate in COBRA for your active plan (this is considered a deferral of PRM participation): When you later request enrollment in PRM, you must provide satisfactory proof of good health. HAP is available only if you request that participation begin immediately after COBRA coverage with HAP ends.

3. Defer PRM participation if you are covered as a dependent of a Unisys employee under a medical plan sponsored by Unisys: In this case, proof of good health is not required, provided PRM participation begins the day after you no longer are covered as a dependent under a medical plan sponsored by Unisys.


· you can begin participation in PRM only with satisfactory proof of good health

· you are not eligible to choose HAP

COMPANY


Death while in active service

Company-sponsored COBRA Your eligible surviving dependents are eligible for up to six months of company-sponsored COBRA for medical and/or dental coverage.

During this company-sponsored COBRA period, your dependents must make contributions for the continued benefits. Failure to make required contributions results in the immediate termination of coverages retroactive to the end of the period covered by the last contributions made. There are no cash incentive payments for opt outs following your death.

Changing benefit elections If there is an annual enrollment during the six-month company-sponsored COBRA period, your dependents are eligible to change their elections the same as any active employee. The usual coverage change restrictions apply (for example, the two-year dental restriction). The contribution levels are the same as for active employees.

25 or more years of credited or vesting service or qualify for PRM If you die while in active service, but after having completed 25 years of credited or vesting service — or after meeting the age and service requirements for post-retirement medical coverage (PRM) — your eligible surviving dependents may participate in PRM once company-sponsored COBRA coverage ends. They have four options:

1. Participate in PRM immediately after company-sponsored COBRA ends: In this case, no proof of good health is required.

2. Participate in COBRA for your active plan (this is considered a deferral of PRM participation): When they later request enrollment in PRM, they must provide satisfactory proof of good health. HAP is available only if they request that participation begin immediately after COBRA coverage with HAP ends.

3. Defer PRM participation, if covered as an active Unisys employee under a medical plan sponsored by Unisys: In this case, proof of good health is not required, provided PRM participation begins the day after they no longer are covered under a medical plan sponsored by Unisys.


· they can later begin participation in PRM only with satisfactory proof of good health

· they are not eligible to choose HAP

SPECIAL EXTENSION OF COVERAGE & CONVERSION PROVISIONS

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EXTENDED DENTAL BENEFITS Under certain circumstances, dental plan benefits continue to be payable after coverage under the Unisys Dental Plan ends. Extended benefit payments apply to the following treatments, provided that treatment began while coverage was in effect and services are completed within 60 calendar days of the date coverage ends:

_ when a tooth or teeth are prepared for fixed bridge work, crowns, inlays, onlays or gold restorations

_ when the initial impression for full or partially removable dentures has been taken

_ when a tooth has been opened in preparation for a root canal procedure

For orthodontia treatments, payments cease for services performed after the date coverage ends.

EXTENDED COMPANY-PROVIDED LIFE INSURANCE BENEFITS If you die within 31 calendar days of the date your Company-Provided Life Insurance ends, benefits are payable to your beneficiary.


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CONVERSION TO AN INDIVIDUAL LIFE INSURANCE POLICY When your coverage under the Company-Provided Life Insurance terminates, you can convert this coverage to an individual policy through the insurance company. You have 31 calendar days to do so, and no medical examination is required. Conversion options are those available at the time you wish to convert your policy.

You can convert your life insurance in any amount, up to the amount in effect before your termination date. Your cost depends on your age and the type of insurance you select.

NO CONVERSION AVAILABLE No conversion benefits are available for the following programs:


_ Reimbursement Accounts

_ Sickness and Accident benefits


_ Unisys Long-Term Disability Plan

_ Business Travel Accident and Seat Belt Insurance

168 — UAW Local 1313 as of 5/10/99

ADDITIONAL PLAN INFORMATION



OFFICIAL PLAN NAMES AND PLAN NUMBERS

Unisys Medical Plan (includes all medical plans offered through Unisys)

537

Unisys Dental Plan

538

Unisys Reimbursement Accounts

540

Unisys Short Term Disability Plan (includes all short-term disability and sickness and accident benefits offered through Unisys)

541

Unisys Long-Term Disability Plan

535

Unisys Company-Provided Life Insurance (includes Accidental Death and Dismemberment Insurance)

536

Unisys Business Travel Accident and Seat Belt Insurance

539

PLAN SPONSOR Unisys Corporation Unisys Way Blue Bell PA 19424 1-215-986-4011

EMPLOYER IDENTIFICATION NUMBER 38-0387840

PLAN YEAR All fiscal records are kept on a calendar-year basis, beginning on January 1 and ending on December 31.

TYPE OF PLAN All of the plans listed above are employee welfare benefits plans.


170 — UAW Local 1313 as of 5/10/99

PLAN ADMINISTRATOR The plan administrator has authority to control and manage the operation and administration of the plans. All final decisions regarding the administration and interpretation of the plans are retained by the plan administrator or its designee. The plan administrator has the discretionary authority to supply omissions, make factual determinations, and to decide any dispute that may arise regarding the rights of participants. All such decisions are binding and conclusive on all interested parties.

Unisys Corporation is the plan administrator and the Unisys Employee Benefits Administrative Committee carries out the functions of the plan administrator on behalf of Unisys Corporation for the following plans:

_ Mail-Order Prescription Drug Program


_ Reimbursement Accounts

_ Sickness and Accident benefits

_ Unisys Long-Term Disability Plan for absences due to disabilities that began prior to January 1, 1994

_ Company-Provided Life Insurance


_ Unisys Business Travel Accident and Seat Belt Insurance

The address for Unisys Corporation is:

Unisys Corporation Unisys Way Blue Bell PA 19424 1-215-986-4011

The names and addresses of the plan administrators for the other benefit plans are:

For the Unisys Long-Term Disability Plan, for absences due to disabilities that began on and after January 1, 1994:

Hartford Life Disability Claims Department 3800 West 80th St. Bloomington MN 55431-4440 1-800-752-9713

For Blue Cross CMM100 and HAP: Refer to the medical plans listed in front of this booklet.



ADMINISTRATOR FOR PROCESSING BENEFITS REQUESTS

For reimbursement accounts:

Unisys Benefits Payment Office (UBPO) PO Box 2909 — Loop Station Minneapolis MN 55402 1-800-223-3580

For Blue Cross CMM100 and HAP: Refer to the medical plans listed in front of this booklet.

For the Unisys Dental Plan:

MetLife Group Dental Claims PO Box 14093 Lexington KY 40512-4093 1-800-942-0854

For the Mail Service Prescription Drug Program:

Merck-Medco Rx Services PO Box 67007 Harrisburg PA 17106-7007 1-800-903-4734

For Sickness and Accident benefits and the Unisys Long-Term Disability Plan:

Hartford Life Disability Claims Department 3800 West 80th St. Bloomington MN 55431-4440 1-800-707-5333 (for S&A) or 1-800-752-9713 (for LTD)

For Company-Provided Life and AD&D Insurance:

Kirke Van Orsdel (KVI) PO Box 9122 Des Moines IA 503068 1-800-222-1617


172 — UAW Local 1313 as of 5/10/99

For inquiries on the amount of your coverage, contact the Unisys Benefits Service Center.

For Business Travel Accident and Seat Belt Insurance:

CIGNA 1600 Arch St. Philadelphia PA 19101



HOW TO APPEAL A BENEFITS REQUEST DETERMINATION The administrator for processing benefit requests pays benefits in accordance with the terms of the plans. All final decisions with respect to the administration and interpretation of the terms of the plans, however, remain with the appropriate plan administrator of each plan.

You usually will receive a response to a request for benefits within 20 calendar days. The administrator for processing benefit requests must respond to your request within 90 calendar days. If special circumstances require an extension of time for processing the request, you will be notified.

Call the payment office If you disagree with the determination made on a benefit request, you may be able to satisfactorily resolve the disagreement by calling the administrator for processing benefit requests that issued the determination. If you are not successful in arriving at a satisfactory resolution, there is a formal way to appeal the determination.

Appeals involving medical benefits Complete details on grievance procedures are contained in the following documents governing your medical benefits. These documents are available from the plans.

_ for Health Alliance plan (HAP), in the HMO Subscriber Contract

_ for Blue Cross Indemnity Plan (CMM100), in the Certificate of Insurance, reference Group #69900

Written appeal for all benefit plans other than medical If your request for benefits is denied in whole or in part, you will receive a determination explaining why your request has been denied, and advising you of your right to appeal the determination. If you disagree with the determination, you must submit a written appeal to the appropriate administrator for processing benefit requests, as noted beginning on page 154, within 60 calendar days after the date you receive the benefit determination.

Your written appeal should state the reasons you feel benefit should have been granted. You may ask to see copies of pertinent documents, although in some cases approval may be needed for release of confidential information, such as medical records. You may submit additional information you feel supports your request.

You will be notified of a decision within 60 calendar days after your appeal is received. This period may be extended if you are required to submit additional information or if special circumstances require delay. In any event, you will be notified of a decision no later than 120 calendar days after your appeal is received.

If your appeal is denied, the decision will be written in a manner that you can understand and will specify the reason for the decision.


174 — UAW Local 1313 as of 5/10/99

Final appeal

Sickness and Accident benefits,

Unisys Long-Term Disability Plan for disabilities before 1/1/94,

Reimbursement Accounts,

Business Travel Accident and Seat Belt Insurance, The initial appeal for these plans is your only appeal under the plans' internal appeal procedure. Any denial will be reviewed by the appropriate administrator for processing benefits requests before it is sent to you. The plan administrator responsible for the administration and interpretation of these plans is the Unisys Employee Benefits Administrative Committee.

Unisys Long-Term Disability Plan for disabilities on or after 1/1/94 For LTD claims related to disabilities that started on and after January 1, 1994, Hartford Life serves as the plan administrator for purposes of claims review and appeal determinations. Hartford Life has the full discretion and authority to determine eligibility for benefits and to construe and interpret all terms and provisions of the Unisys Long-Term Disability Plan.

Mail Service Prescription Drug Program,

Unisys Dental Plan If your initial appeal for these plans is denied, and you continue to disagree with the determination, you may appeal for review by the Unisys Employee Benefits Administrative Committee. This Committee is the plan administrator responsible for the administration and interpretation of these plans.

This appeal must be in writing and should be sent to the administrator for processing benefits requests within 60 calendar days after you receive the determination of your initial appeal. The administrator will ensure that no mistake has been made at an earlier level, and will forward your appeal to the Committee.

Your appeal should include all information, evidence, and documents that may support your request, and you may again review pertinent documents.

You will be notified of the Committee's decision within 60 calendar days after your appeal is received. This period may be extended if you are required to submit additional information, or if special circumstances require delay. In any event, you will be notified of the Committee's decision no later than 120 calendar days after your appeal is received.

If your appeal is denied, the decision will be written in a manner that you can understand and will specify the reasons for the decision.



RIGHT TO RECOVER EXCESS PAYMENTS If payments are made in excess of the benefits due under any of the plans described in this booklet, Unisys has the right to recover these excess payments from any person or organization to whom the excess payments are made. If excess payments are made to you, and upon request to do so you fail to return the excess payments, further payments under the appropriate plan are withheld until the full excess payment amount is recovered.

CASE REVIEW The appropriate administrator for processing benefits requests reserves the right, on behalf of Unisys, to request copies of medical or dental records, charts, office records, and any other documentation considered necessary to apply the provisions of the plans in determining benefits payable. Further, for the determination of benefits payable under the plans, the services of professional medical or dental reviewers may be retained to examine and render expert opinions regarding any charges, records or documentation relating to your condition.

THIRD-PARTY LIABILITY For purposes of this section, covered individual means an individual entitled to benefits under a medical, dental, or disability plan sponsored by Unisys. If an individual entitled to benefits subsequently dies, covered individual includes the survivors and estate.

If a medic al or dental plan sponsored by Unisys provides or pays for services to treat an injury or illness of a covered individual, the plan has the right to recover the value of services and payments made under certain circum-stances. This applies in any of the following situations:

_ another party is or may be legally responsible _ covered by no-fault or employers' liability laws _ available or required to be furnished by or through national or state

governments or their agencies _ covered by premises liability insurance available to a third party on whose

property the injury or illness was sustained

The Plan exercises this entitlement through its rights of reimbursement and subrogation.

The right of reimbursement means a covered individual must repay the Plan at the time recovery is made.

The right of subrogation means that the Plan may make claim in the name of the covered individual or in the name of the Plan against any persons, organizations or insurers on account of the injury or illness.

For purposes of this section, recovery includes all amounts received from any


176 — UAW Local 1313 as of 5/10/99

persons, organizations or insurers by way of settlement, judgment, award, or otherwise on account of the injury or illness. Recovery includes, but is not limited to, recoveries from:

_ tortfeasors _ underinsured motorist coverage _ uninsured motorist coverage _ other substitute coverage _ any other right of recovery

The rights of reimbursement and subrogation apply to any types of recovery from any third party, whether based on tort, contract, equity or any other theory of recovery.

Rights of reimbursement and subrogation apply whether or not the covered individual has been fully compensated for losses or damages by any recovery or payments. In the event the covered individual settles any claim against any third party, that person is deemed to have been made whole by such settlement and the Plan will be entitled to immediately collect the present value of the services and payments made by the Plan.

All amounts recovered by the covered individual will be deemed to apply to health-care expenses or services to the extent they are incurred in connection with such illness or injury, regardless of how such amounts are allocated in any judgment or award. Any amounts the covered individual receives from such a recovery must be held in trust for the Plan's benefit to the extent of the Plan's rights of reimbursement and subrogation.

The covered individual must:

_ Sign a Reimbursement and Subrogation Agreement provided by the Plan as a condition of receiving plan benefits for the injury or illness.

_ Complete any applicable questionnaire provided by the Plan. _ Agree to cooperate fully in every effort by the Plan to enforce these rights of

reimbursement and subrogation. _ Agree not to do anything to interfere with these rights of reimbursement and

subrogation. _ Agree to inform the plan administrator promptly in writing of any situation or

circumstance that may allow it to invoke the Plan's rights of reimbursement and subrogation.

If the covered individual does not provide the required cooperation noted above or does not sign the Reimbursement and Subrogation Agreement, the Plan reserves the right to suspend benefit payments, withhold services, or withhold or deduct from future payments an amount equal to the recovery that the Plan administrator determines could have been obtained through the Plan's right of subrogation.

If repayment is not made at the time recovery is received, the Plan will deduct from future benefit payments all amounts due to the Plan until full reimbursement is made to the Plan from the proceeds of any settlement or judgment that is obtained that may result from the exercise of any legal claim for damages brought by or on behalf



of the covered individual, as well as any survivor or wrongful death action.

With respect to the insured Long-Term Disability Plan, Hartford Life has the same rights of reimbursement, subrogation and recovery as are noted above for the Unisys self-funded plans.

TYPE OF ADMINISTRATION AND FUNDING

Health-care benefits Dental and prescription drug benefits are generally administered by Unisys Corporation. The insured Blue Cross CMM100 and HAP plans are administered by independent organizations based on contract provisions. The benefits (and premium payments for insured plans) are funded by company and employee contributions.

Disability benefits Sickness and Accident benefits are provided directly by Unisys Corporation, with benefit requests reviewed on behalf of the Plan by Hartford Life.

For absences due to disabilities beginning on and after January 1, 1994, payments under the Unisys LTD Plan are provided in accordance with an insurance arrangement and are funded solely through employee contributions. For absences due to disability prior to January 1, 1994, payments under the Unisys LTD Plan are provided through a separate LTD trust. LTD benefits continue to be paid to the extent that the assets of the trust can maintain the payments.

For all absences due to disabilities — those absences beginning before January 1, 1994, as well as those beginning after January 1, 1994 — Hartford Life is considered the administrator for processing benefits requests. In addition, Hartford Life is the plan administrator for purposes of final review of LTD appeals for absences due to disabilities that began on or after January 1, 1994.

Death benefits Company-Provided Life and Accidental Death and Dismemberment Insurance benefits are provided in accordance with the provisions of the Plan and are paid by an insurance carrier. Premium payments are made to the carrier and are funded by company contributions.

Business Travel Accident and Seat Belt Insurance benefits are provided in accordance with the provisions of the Plan and are paid by an insurance carrier. Premium payments are made to the carrier and are funded by company contributions.


178 — UAW Local 1313 as of 5/10/99

INDEMNIFICATION Unisys indemnifies any employee or director of Unisys or any affiliated company to whom any fiduciary, administrative or other responsibility under the plans is allocated or delegated, to the full extent permitted under the Unisys Certificate of Incorporation, bylaws or resolution of the Board of Directors. The foregoing right to indemnification is in addition to such other rights as such person may enjoy as a matter of law or by reason of insurance coverage of any kind.

AGENT FOR LEGAL PROCESS Unisys hopes that any disagreement you have with the plans can be resolved without resorting to legal process. If you wish to begin legal proceedings, however, service of legal process may be made to the appropriate Plan Administrator as noted on page 153.

GOVERNING LAW Except to the extent superseded by ERISA, all questions pertaining to the validity, construction and operation of the plans are determined in accordance with the laws of the Commonwealth of Pennsylvania.

YOUR RIGHTS UNDER ERISA As a participant in these plans, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to:

_ examine, without charge, at the plan administrator's office and at other specified locations, such as worksites, during normal working hours, all documents, including trust agreements, collective bargaining agreements, insurance contracts and copies of all documents (such as detailed annual reports filed with the Department of Labor and Internal Revenue Service)

_ obtain copies of all documents and other information upon written request to the Unisys Concierge Service; such documents will be furnished within 30 calendar days at a cost of 10 cents per page

_ receive a summary of the plans' annual financial report — the plan administrator is required by law to furnish each participant with a copy of this summary annual report

_ receive a statement of the assets and liabilities of the plan, or a statement of income and expenses of the plan, or both, along with accompanying notes at no charge

_ receive a written explanation of why any claim for a benefit is denied in whole or in part, and have such claim reviewed



In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plans.

_ The people who operate the plans, called “fiduciaries” of the plans, have a duty to do so prudently, in your interest and that of all participants and beneficiaries.

_ No one, including Unisys, may terminate your employment for the purpose of preventing you from receiving the benefits to which you are entitled. And no one, including the company, a union, or any other person, may discriminate against you in any other way for that purpose or in order to keep you from exercising your rights under ERISA.

If your benefit request is denied in whole or in part, you must receive a written explanation of the reason for the denial. You have the right to have the plan review and reconsider your benefit request.

Under ERISA, there are steps you can take to enforce the preceding rights. For instance, if you request materials from the plans and do not receive them within 30 calendar days, you may file suit in a federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $100 a day until you receive the materials unless they were not sent or received because of reasons beyond the control of the administrator.

If you have a benefit request that is denied or ignored, in whole or in part, you may file suit in a state or federal court.

If it should happen that plan fiduciaries misuse the plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.

The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

If you have questions about your plans, contact the Unisys Benefits Service Center.

If you have any questions about this statement or about your rights under ERISA, contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or:

Division of Technical Assistance and Inquiries Pension and Welfare Benefits Administration U.S. Department of Labor 200 Constitution Avenue, N.W. Washington D.C. 20210.


180 — UAW Local 1313 as of 5/10/99

PLAN TERMINATION/REVISION The collective bargaining agreement specifies that coverages are available throughout the term of the agreement. The company reserves the right to terminate or revise some of these coverages as noted below:

_ For the negotiated plans that apply solely to eligible contract employees (medical options, sickness and accident benefits and Accidental Death and Dismemberment Insurance), Unisys intends to continue to offer these plans as negotiated through the expiration of the current collective bargaining agreement.

Although the company does not presently intend to do so, Unisys reserves the right to change the plans, provided that such change is not inconsistent with the company’s express obligations under the current collective bargaining agreement. The company may change the plans due to changes in federal or state laws governing welfare benefits, the requirements of the Internal Revenue Code or ERISA, the provisions of a contract or a policy involving an insurance company. A plan change may transfer plan assets and liabilities to another plan or split a plan into two or more parts.

Decisions with respect to the method of financing funding or administering the plans described above are at the discretion of Unisys. There is no limitation on Unisys as to the means of financing, funding or administering these plans.

_ For the Unisys plans in which bargaining unit employees and non-bargaining employees participate under the same terms and conditions (including the Unisys Dental Plan, which has a different eligibility requirement for bargaining unit employees, Company-Provided Life Insurance that offers a different multiple of pay, Reimbursement Accounts, Unisys Long-Term Disability Plan, and Business Travel Accident and Seat Belt Insurance), Unisys reserves the right to change the plans described in this booklet. This includes modification of contributions, deductibles, copayments, out-of-pocket maximums, levels of benefits payable, covered expenses, and any other term or condition of any plan.

The company’s decision to change the plans may be due to changes in federal or state laws governing welfare benefits, the requirements of the Internal Revenue Code or ERISA, the provisions of a contract or a policy involving an insurance company or any other reason. A plan change may transfer plan assets and liabilities to another plan or split a plan into two or more parts. If Unisys makes a change or ends a plan, it may establish a different plan providing similar or identical benefits.

The company also reserves the right to terminate for any reason, the plans described in this booklet that do not apply solely to bargaining unit employees. Should such plans be terminated, coverage for all participants would end. However, benefits under the Unisys Long-Term Disability Plan will be provided for covered disabilities that begin before the date of termination to the extent funded.

UAW Local 1313 as of 5/10/99 — 181

INDEX


A Accelerated Death Benefit Option................... 118 alternative

dental treatment........................... 47, 48, 54 B beneficiary

GULP........................................... 115, 128 non-standard designation ................ 116, 117 Standard Beneficiary

Designation............................ 116, 117 C certificate of creditable coverage ............ 132, 133 COBRA coverage.................................6, 20, 22, 30-32, 42, 66, 72, 80, 111, 112, 129, 132, 135-139, 141-144, 146-148 contributions

Company-Provided Life and AD&D ........................11,115, 120

dental.................................................... 10 general ....................................................9 LTD.......................9, 11, 90, 92-94, 97-100 medical..................................... 4, 9, 10, 21 opt out incentive............... 10, 14, 34, 44, 69 reimbursement accounts..................... 69-75

conversion to an individual policy dental........................................... 140, 150 disability benefits ........................... 140, 150 life insurance..........................119, 140, 150 medical......................................... 140, 150

coordination of benefits ........................36, 63-65 covered expenses

dental...................................45, 52-57, 149 mail service drug program .................. 36-38 reimbursement

accounts .......................36, 71-76, 140 creditable coverage ............................... 132, 133 D default coverage ................................ 17-20, 134 disability, recurring

LTD............................................. 102, 111 S&A ................................................86, 87

disability, what it means LTD..............................................101-104 S&A ................................................ 84-87

E effective date

business travel accident and seat belt insurance.............. 3, 123, 126

dental.......................... 3, 17, 19, 20, 22, 31 GULP....................................... 3, 114, 128 life and

AD&D..............3, 19, 20, 31, 114, 120 LTD............................ 3, 17, 19, 22, 82, 92 LTD late entrant .....................16, 22, 31, 92 medical..............................3, 17, 19, 20, 31 reimbursement

accounts ......................... 3, 17, 19, 69 S&A benefits ............... 3, 19, 20, 31, 82, 84

election restrictions dental................................. 4-7, 12, 14, 15,

19-29, 44, 46, 142, 144, 146, 148 LTD.......................................... 16, 19, 20,

22-25, 27, 28, 31, 144 medical................. 4-7, 10, 14, 19-21, 23-30 reimbursement accounts...............16, 18-20,

23-30, 69-72, 139 eligibility

adopted children .................... 4, 5, 8, 21, 27 children .............................4, 5, 7, 8, 21, 27 dependents.................................4-8, 21, 23 disabled children............................... 4, 5, 8 domestic partner................ 4-7, 9, 14, 23-26 employees............................................ 2, 3 legal guardianship ............................. 4, 5, 8 newborn..............................4, 5, 21, 27, 35 spouse...................................... 4, 5, 14, 23 stepchildren ................................4, 5, 7, 23 Unisys families .....................5, 6, 10, 14, 44

F filing limitations

AD&D ................................................ 121 dental.................................................... 60 reimbursement

accounts ................. 71, 72, 78-80, 139 forfeitures

reimbursement accounts ......................72, 79, 80, 139

G generic drugs ..................................... 36, 37, 41 GULP....................................... 3, 114, 115, 128

INDEX

UAW Local 1313 as of 5/10/99 — 183

H HIPAA............................................21, 132, 133 I imputed income

Company-Provided Life Insurance.......... 115 domestic partner............................... 6, 7, 9

interim coverage ............................................ 20 M Mail Service Drug Program........................ 36-42 maternity stays .............................................. 35 maximum benefit, business travel

accident insurance......................... 124, 125 mental disorder

LTD.................................................... 104 N non-duplication of benefits......................... 63-65 not covered

AD&D ................................................ 121 business travel accident

insurance...................................... 125 dental...............................................58, 59 LTD............................................. 103, 104 mail service drug program ....................... 39 reimbursement

accounts ................ 71, 72, 74, 77, 139 S&A ................................................86, 87 seat belt insurance ................................ 126

O offsets

LTD....................................91, 95, 96, 112 S&A benefits ....................................83, 88

opt out dental.............................. 10, 12, 14, 44, 69 medical..................................10, 12, 34, 69

options dental...............................10, 12, 14, 43-66 LTD.......................................... 13, 90-105 medical......................... 9, 10, 12, 14, 33-42 reimbursement accounts................13, 67-80

P pay, what it means

AD&D ................................................ 120 business travel

accident insurance.................. 124, 125 Company-Provided

Life Insurance..........................11, 115 LTD................................................97-100

preauthorization dental.................................................... 48 mail service drug program ............ 36, 37, 41

preexisting conditions ................. 8, 132, 133, 137 Preferred Dentist Program ......................... 49-51 proof of good health

GULP.................................................. 128 LTD..................................... 16, 19, 22-25,

27, 28, 31, 91, 92 PRM ...................... 111, 143, 145, 147, 148

Q Qualified Medical Child

Support Order .................................... 8, 28 R R&C .......................................46-48, 54, 56, 58 rehabilitative employment

LTD...............................................95, 102 S&A ................................................85, 89

requesting benefits AD&D ................................................ 121 business travel accident

and seat belt insurance................... 127 Company-Provided Life

Insurance.............................. 117, 118 dental............................................... 60-65 LTD.................................................... 105 mail service drug program .................. 40-42 reimbursement

accounts ........................71, 72, 78, 79 S&A ................................................88, 89

S status changes ........................4, 6, 15-17, 19-30, 32, 34, 69-72, 80, 92, 134, 142


T taxation

Company-Provided Life Insurance............................... 115

domestic partner............................... 6, 7, 9 flexible benefits .................................. 9, 21 LTD............................. 9, 13, 17, 20, 91-93 newborns ................................................4 reimbursement

accounts .......................13, 68-75, 139 S&A ..................................................... 89

U Unisys families ...................... 5, 6, 10, 14, 34, 44 W waiting period

AD&D .....................3, 19, 20, 31, 114, 120 dental coverage ............ 3, 17, 19, 20, 31, 44 Company-Provided

Life Insurance............................ 3, 19, 20, 31, 114, 115

medical coverage................3, 17, 19, 20, 31 S&A benefits .....................3, 19, 20, 31, 84

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