your health your protection your well-being your future other benefits your benefits ·...

Your Benefits

YOUR PROTECTIONYOUR HEALTH YOUR WELL-BEING YOUR FUTURE OTHER BENEFITS

Your BenefitsYour Benefits


Your Benefits

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As a Liberty Mutual Insurance employee, your total compensation package is more than your direct pay.

Your indirect pay, which consists of your employee benefits, is a large part of your total compensation.

A comprehensive employee benefits package provides broad financial protection for you and your family both today and in the future. You have a number of different benefit plans from which to choose, as well as different coverage levels. The company pays 100% of the cost of some benefits, you share the cost of other coverages with the company, and some coverages are completely employee-paid.

The following is an overview of our employee benefits. In all cases, the terms of the plan will govern. For copies of the summary plan description for each Plan, visit the Program Library within the Your Total Rewards website.

http://www.yourtotalrewards.com/libertymutual


Your Benefits

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Employees on the U.S. payroll who are regularly scheduled to work less than 30 hours per week

No Coverage in any plans if no elections are made.

If You Don’t Submit Your Enrollment

Health: No Coverage Dental: No Coverage Vision: No Coverage Long-Term Disability: 40% Employee Life: 1x Pay

Spouse/Domestic Partner Life: No CoverageChild Life: No CoverageAccidental Death & Dismemberment: No Coverage Health Savings Account: $0Dependent Care FSA: $0

Employees on the U.S. payroll who are regularly scheduled to work 30 or more hours per week

You have 30 days from the day your employment begins to elect your benefits.Regardless of when you confirm your elections during this 30-day period, benefits will begin on your first day of employment with the company. If you do not actively confirm your health and welfare elections on the Your Total Rewards website within this timeframe, you will be automatically enrolled into the standard new hire coverages displayed below and deductions will be taken from your pay.


YOUR PROTECTION YOUR WELL-BEING YOUR FUTURE OTHER BENEFITS

Your Health Benefits

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YOUR HEALTH

Your Health BenefitsSelecting Health CoverageThe Liberty Mutual Health Plan offers you a choice of two Consumer Directed Health Plan (CDHP) options. CDHP participants in each option are automatically enrolled in a Health Savings Account (HSA), if eligible.

Both options are administered by UnitedHealthcare. Both options cover the same services, have the same provider network and offer 100% coverage for preventive care.

Selecting No Health CoverageIf you do not make an election within 30 days of your hire date, you will be assigned to No Coverage under the Liberty Mutual Health Plan.

CDHP Option 1 has higher premiums than CDHP Option 2, but lower coinsurance levels and out-of-pocket maximums. Compared to CDHP Option 2, you pay more for premiums deducted from each paycheck and less out-of-pocket when you receive care.


Under the in-network level of benefits, well child care visits, annual physicals and certain cancer screenings are covered at 100% (within plan limits), without having to meet your deductible. All other visits and/or services are subject to your deductible. Once your deductible is met, the Liberty Mutual Health Plan begins paying a portion of your claims. Your share is called coinsurance. If you meet your total out-of-pocket maximum (the combination of covered expenses used toward your deductible and your coinsurance payments), the Liberty Mutual Health Plan will pay 100% of the cost of your claims (within plan limits).

Prescription Drug CoveragePrescription drug coverage, administered by CVS/caremark, is automatically provided as part of the Liberty Mutual Health Plan. CVS/caremark offers a large, national pharmacy network.


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YOUR HEALTH

Health Plan Options

CDHP Option 2 has lower premiums than CDHP Option 1, but higher coinsurance levels and out-of-pocket maximums. Compared to CDHP Option 1, you pay less for premiums deducted from each paycheck and more out-of-pocket when you receive care.



Liberty Mutual Health Plan

YOUR HEALTH

CDHP Option 1 CDHP Option 2

ADMINISTRATOR UnitedHealthcare

PREVENTIVE CARE Covered at 100%.

PRESCRIPTION DRUG COVERAGE

Administered by CVS/caremark.

Coinsurance applies after the deductible is met.Certain preventive medications covered 100%

Certain maintenance medications not subject to deductible; coinsurance applies

HEALTH SAVINGS ACCOUNT

If eligible, you will be automatically enrolled in a Health Savings Account and receive annual Liberty Mutual contributions:Individual $500/Family $1,000*

*Contributions pro-rated based on your effective date of coverage and family coverage refers to any levels that include you and one or more dependents.

ANNUAL DEDUCTIBLE

Includes medical and prescription drug costs. • In-network: Individual $1,500/Family $3,000

• Out-of-network: Individual $3,000/Family $6,000

COINSURANCE

The amount you pay after meeting your deductible for most covered services.

You pay: In-network 15%, Out-of-network 50% You pay: In-network 25%, Out-of-network 50%

ANNUAL OUT-OF-POCKET MAXIMUM

Includes medical and prescription drug costs.• In-network: Individual $4,000/Family $8,000• Out-of-network: Individual $8,000/Family $16,000

Includes medical and prescription drug costs.• In-network: Individual $6,650/Family $13,300• Out-of-network: Individual $13,300/Family $26,600

Important Note: If you have family coverage and you or a family member reach $7,350 in out-of-pocket costs for in-network care during the calendar year (the IRS maximum), the plan pays 100% coverage for that individual for the rest of the year. All other family members will continue to pay coinsurance until the full family out-of-pocket maximum is met.

Liberty Mutual Health Plan

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Health Savings Account (HSA) Employees who enroll in the Consumer Directed Health Plan (CDHP) and who meet the eligibility requirements are automatically enrolled in an HSA. An HSA is a tax-advantaged account for qualified health care expenses (e.g., medical, prescription drug, dental and vision care). Liberty Mutual may contribute to the HSA each year, and CDHP participants can make before-tax, payroll-deducted contributions. All contributions combined cannot exceed the IRS annual limit.

5 Advantages of an HSA:

You get a triple tax advantage

• Money that goes into your account isn’t taxed — that includes your contributions and Liberty Mutual’s contributions. • Interest and investment earnings on your account aren’t taxed. • You don’t pay taxes on the money you take out (as long as you use it for eligible health care expenses).

You’re in control You decide how much to contribute and when to spend (or save) your HSA dollars.

Use it...or save it

Any money you don’t use by the end of the plan year rolls over into the next year.

It has growth potential

When your HSA balance reaches $1,000, you can turn your HSA into an investment account.

It’s portable

If you leave Liberty Mutual, you take your HSA funds with you and can use them for qualified health care expenses in the future.

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Castlight Health, available to Health Plan participants, helps you find high-quality medical care and see how much you will pay for it before you go.

When you use Castlight’s service online or over the phone, you can compare all of your options and make your health care dollars go further. No longer must you wait for the bill to come weeks or months after your visit before you find out what you owe!

Did you know that Castlight has found that common health care service prices can vary by over 700 percent?

Such wide ranges can be found for all types of services, including primary care visits, specialist visits, labs, x-rays and procedures. Prices for care are negotiated between doctors and health plans, so a high price often means that a doctor belongs to a large medical group that has more negotiating power. Since prices aren’t really tied to a doctor’s education or ability, you can find high-quality doctors who charge below-average prices in your area.

Our health care system is generally designed to hide this information from consumers.

Castlight Health makes it easy to compare your options on cost, quality and convenience so you can make smart health care decisions for yourself and your family.

If you enroll in the Liberty Mutual Health Plan, you and your enrolled dependents have valuable resources available.

Castlight Health: Know Before You Go

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• Compare in-network doctors and medical

services in your area based on the price you’ll pay and quality of care other patients have received.

• See personalized cost estimates before you go to the doctor that take into account your health plan and whether you’ve already met your deductible.

• Review step-by-step explanations of past medical spending so you know how much you paid and why.

• Receive recommendations on ways to save money and find high-quality care.

• Save on prescriptions–get convenient prescription options and learn about low-cost, generic alternatives.

As a new hire, shortly after you enroll in the Health Plan, you’ll receive a welcome email from Castlight. Follow the registration instructions to get started.

Access Castlight Anywhere

Have a smartphone? Download the Castlight mobile app from your phone’s app store (search “Castlight”). You’ll have access anywhere, anytime to information on how to find high-quality, cost-effective care.

Castlight Health: Know Before You Go

Using Castlight online or over the phone, you and your family will be able to:

Best DoctorsWhen you’re facing a critical medical decision, getting it right means everything. With Best Doctors, you can get an expert opinion on your cancer diagnosis and treatment plan or on surgical recommendations for certain conditions, without leaving home.

The Best Doctors Cancer Diagnosis & Treatment program is available to all Liberty Mutual employees and Health Plan dependents. The Surgical Second Opinion program is available to all members of the Liberty Mutual Health Plan.

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DentalLiberty Mutual offers a Dental Plan through Delta Dental of Massachusetts. The Dental Plan is a self-insured Dental Preferred Provider Organization (DPPO). You and Liberty Mutual share the cost of this optional coverage. You pay your share on a before-tax basis. There are two coverage options:

VisionLiberty Mutual offers employees the opportunity to select vision coverage through a Vision Care Plan with EyeMed. (You should note that eye exams are not covered under the Health Plan.) You may receive a complete pair of glasses (up to $130) or contact lenses (up to $120) every calendar year, as well as an annual spectacle eye exam or an annual contact lens exam at participating providers. Specially discounted glasses and contacts may also be purchased, and savings on laser vision correction are offered. You pay 100% of the cost of this optional coverage on a before-tax basis.

Basic Plan

Provides 100% payment, with no deductible, for covered preventive care expenses such as semi-annual cleanings and x-rays. The Basic Plan provides 50% coinsurance for all other covered dental expenses, after the deductible (Individual $50/Family $100). The Basic Plan does not offer orthodontia coverage and carries a lower annual maximum benefit of $1,000 for all covered expenses.

Plus Plan

Provides 100% payment, with no deductible, for covered preventive care expenses such as semi-annual cleanings and x-rays. The Plus Plan provides 80% coinsurance for all other covered dental expenses after the deductible (Individual $100/Family $200). The Plus Plan has an annual maximum benefit of $2,000 for all covered expenses. The Plus Plan also provides 50% coinsurance for covered orthodontia expenses. The lifetime maximum benefit for orthodontia is $2,000 per covered individual.

YOUR HEALTH

YOUR HEALTH YOUR WELL-BEING YOUR FUTURE OTHER BENEFITS

Your Protection

YOUR PROTECTION

Your ProtectionEmployee Life InsuranceThe Employee Life Insurance Plan offers coverage options equal to one to six times your annual earnings with a maximum total coverage amount of $3 million.

The company pays the full cost of coverage equal to 1x pay for employees on the U.S. payroll who are regularly scheduled to work 30 or more hours per week, and half the cost of 1x pay coverage for all other eligible employees. You pay 100% of the cost of any additional coverage at age-related group rates.

You must elect coverage within 30 days of your employment date or your coverage will default to 1x pay for employees regularly scheduled to work 30 or more hours per week and no coverage for all other eligible employees. Newly hired employees have the option to elect any level of coverage without providing Evidence of Insurability. Changes to your Employee Life Insurance can only be made during an Annual Enrollment period or if you have a qualfied status change. If you decide you would like to increase your Employee Life Insurance coverage during a future Annual Enrollment, Evidence of Insurability is required.

For additional information, including how pay is defined, you can view the summary plan description for the Employee Life Insurance Plan on the Your Total Rewards website.

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Your Protection

Spouse/Domestic Partner Life InsuranceSpouse/Domestic Partner Life Insurance offers four levels of life insurance coverage for your spouse or domestic partner: $5,000, $25,000, $75,000 and $100,000. You pay 100% of the cost of this coverage, on an after-tax basis; subject to group age-related rates, based on the age of your spouse/domestic partner. Evidence of insurability is required if you elect the $75,000 or $100,000 options. If you do not complete the online Evidence of Insurability form during the enrollment process, the Spouse/Domestic Partner Life Insurance coverage will default to $25,000 in coverage.

Child Life InsuranceChild Life Insurance offers three levels of life insurance coverage for your eligible dependent: $2,000, $5,000 and $10,000. You pay 100% of the cost of this coverage, on an after-tax basis. For eligibility purposes, a dependent is considered eligible if they are your child or your spouse’s/domestic partner’s child (including any stepchild, foster child, legally adopted child or a child for whom a court order of custody or guardianship has been obtained).

Dependents are covered from birth, up to age 26.

Accidental Death & Dismemberment InsuranceAccidental Death & Dismemberment (AD&D) Insurance provides optional coverage of one to four times pay with a maximum total benefit amount of $2 million to eligible employees for accidents resulting in death or dismemberment. Employees pay 100% of the cost of this optional coverage, on a before-tax basis.

For additional information, including coverage amounts, you can view the summary plan description for AD&D on the Your Total Rewards website.

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Your Protection

Short-Term DisabilityThe Short-Term Disability (STD) Plan is designed to continue all or part of your pay when a non-work-related disability keeps you away from work for more than seven consecutive (7) calendar days and up to 25 weeks. All employees on the U.S. payroll who are regularly scheduled to work 20 or more hours per week are eligible for the STD Plan on their first day of employment. Eligible employees are automatically enrolled in the STD Plan and the company pays 100% of the STD coverage. STD benefits begin on the eighth consecutive calendar day of disability. The first five work days of disability are covered by Flexible Time Off, Personal Holidays and/or Company Holidays if available and applicable, or are unpaid. You are eligible for 8 weeks of STD benefits at 100% of your pay. Benefits are then adjusted to 66-2/3% of pay for each remaining week of STD. STD benefits end after the 25th week of disability.

For additional information, including how pay is defined, you can view the summary plan description for Short-Term Disability on the Your Total Rewards website.

Long-Term DisabilityThe Long-Term Disability (LTD) Plan is a condition of employment for all employees on the U.S. payroll who are regularly scheduled to work 30 or more hours per week. All other eligible employees may also elect to participate in the LTD Plan. The LTD Plan offers three coverage options: 40%, 50% and 60% of pay with a maximum monthly benefit of $15,000. LTD benefits are payable after the 26th week of disability, subject to pre-existing condition exclusions. Benefits coordinate with Social Security and certain other benefits for which you are eligible. You can qualify to receive benefits up to age 65 or 70, depending upon your age when you are disabled. Special limits apply to disability due to mental illness. Employees pay 100% of the cost of this coverage on an after-tax basis; benefits generally are tax-free.

For additional information, including how pay is defined, you can view the summary plan description for Long-Term Disability on the Your Total Rewards website.

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Your Well-Being

YOUR PROTECTIONYOUR HEALTH YOUR FUTURE OTHER BENEFITS

Your Well-Being

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Your Well-Being Program Liberty offers a number of programs designed to inspire a happy, healthy you and support your overall well-being. Participants will have mobile and desktop access to engaging, new activities throughout the year, all designed to help all employees, and all covered spouses/domestic partners on the Liberty Mutual Health Plan, find the most effective ways to improve their health and well-being.

Work Life Solutions PlanThe Work Life Solutions Plan is an Employee Assistance Program (EAP) that offers all Liberty Mutual U.S. employees and their eligible household members a wide range of services designed to help you balance life’s challenges from the everyday to the more complex. Services include online educational resources, access to financial and legal services and referrals to counselors for face-to-face visits. All services are completely confidential. You can access the Work Life Solutions’ web site directly at: www.liveandworkwell.com. The access code is “liberty.” Or, if you prefer, you may also speak confidentially with a representative by calling 1-866-808-2815 (TDD/TTY: 1-866-216-9926). Representatives are available 24 hours a day, 7 days a week.

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YOUR PROTECTIONYOUR HEALTH YOUR WELL-BEING OTHER BENEFITS

Your Future

YOUR FUTURE

Your FutureRetirement ProgramBuilding your retirement income is a shared responsibility, including a 401(k) Plan with a company match on your before-tax, traditional after-tax and/or Roth contributions, combined with a fully company-paid pension plan. If you are eligible to participate in the pension plan, the company will provide you with monthly pay credits and interest credits through a cash balance account. You can view the summary plan description for both the 401(k) Plan and the Retirement Benefit (pension) Plan on the Your Total Rewards website. Soon after your employment begins, you’ll also be able to see the value of your total compensation – your pay and your benefits, including retirement benefits – on this site. It’s available year-round.

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YOUR PROTECTIONYOUR HEALTH YOUR WELL-BEING YOUR FUTURE

Your Other Valuable Benefits

OTHER BENEFITS

Your Other Valuable BenefitsIn addition to health, insurance and retirement plans offered by Liberty Mutual, you also have an array of other valuable benefits available to you. These offerings provide you with added value and can save you money. In addition to the information provided here, please see the Other Valuable Benefits under the Employee Center on the myLiberty intranet site for additional information.

Commuter Benefits ProgramThe national Commuter Benefits Program will help you save money on your commuting costs, and also provide the convenience of home delivery of your orders. Your Spending Account, which is part of the Your Total Rewards website, delivers commuter check vouchers and fare media for a number of transit authorities through an easy online enrollment program.

The program works in a way that is similar to a flexible spending account. You elect to pay with before-tax payroll deductions (to IRS limits) for eligible transportation expenses for public transportation (for example, trains, buses, subways, ferries or vanpools) and/or for parking at or near work. Note: Mileage, tolls, fuel, carpooling and business travel are not eligible for this program.

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Dependent Day Care Flexible Spending AccountThe Dependent Day Care Flexible Spending Account will cover many expenses related to the care of a qualifying individual(s) so that both you and your spouse can work. Eligible dependent care expenses include daycare, nursery schools, after-school care programs and in-home care.

As a newly hired employee, you will be making an election for the remainder of the calendar year. The amount you elect will be split over the remaining pay periods in the calendar year. A qualifying individual under Section 21 of the Internal Revenue Code (“Code”) means an individual who can be claimed by the employee as a dependent (as defined in Code Section 152(a)(1)), is under age 13, and lives with the taxpayer for more than one-half of the taxable year. In addition, a qualifying individual includes the employee’s spouse or an individual who can be claimed by the employee as a dependent under Code Section 152, if they are physically or mentally incapable of caring for him or herself and have the same principal residence as the employee for more than one-half of the taxable year.

You must pay out of pocket for all dependent care expenses and then submit for reimbursement. This account requires an annual election during each Annual Enrollment period. Any unused funds available in the Dependent Care FSA at the end of the year do not carry over to the next plan year and will be forfeited to the company.

Adoption Assistance PlanEligible employees may be reimbursed up to a maximum of $5,000 for each adoption. Employees on the U.S. payroll who are regularly scheduled to work 20 or more hours per week may receive reimbursement for eligible adoption-related expenses.

Eligible expenses include: adoption agency fees, legal/attorney fees, court fees, costs related to physical examination of the child and birth mother’s pregnancy-related expenses.



OTHER BENEFITS



Ayco Survivor SupportAyco’s Survivor Support financial counseling service is a benefit that offers specific, personalized support to help you navigate the complex financial issues following the loss of a spouse or domestic partner.

Connexus Credit UnionEmployees of Liberty Mutual Group and affiliate companies may join Connexus Credit Union. Connexus services Liberty Mutual employees and family members throughout the United states and offers a full line of financial products and services including auto loans, mortgages, and checking accounts. For more information about Connexus Credit Union’s products, services and promotions visit http://www.connexuscu.org or call 1-800-845-5025.

Connexus Credit Union is not a subsidiary, partner, nor is managed or controlled by Liberty Mutual. Liberty Mutual assumes no liability for operations of the Credit Union.

Student Loan RefinancingLiberty Mutual has partnered with CommonBond to provide employees and their dependents the opportunity to consolidate and refinance existing student loans (federal and private) at lower interest rates.

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College Savings PlansEligible employees may invest for college with a state-sponsored, tax-advantaged 529 College Savings Plan. The 529 Plan is a savings vehicle through which you can invest after-tax money, that is then federal income tax free for qualified withdrawals. You can use these savings for eligible higher education expenses at most accredited colleges and universities in the U.S. Liberty Mutual offers this plan through Fidelity and TIAA.

Employee Discounts – Liberty Mutual MarketplaceLiberty Mutual Marketplace offers eligible employees online access to exclusive discounts from well-known retailers, manufacturers and service providers.

Within the first month following your hire date, you will receive a welcome email with a link to the Liberty Mutual Marketplace portal and instructions on how to register. Once you have registered, you can invite up to five family members and friends to join and benefit from some of the same discounts.

myConciergeThrough myConcierge, eligible employees can get expert assistance on everything from recommendations and reservation assistance for that special celebratory dinner, organizing a getaway or family vacation or locating high-quality providers of home services, such as pet care, repair and maintenance services.

See Other Valuable Benefits under the Employee Center on the myLiberty intranet site for additional information.

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Auto and Home Insurance DiscountsEligible employees may receive a discount on their auto and homeowners insurance policies, as well as other personal lines of insurance, and pay for coverage through the convenience of payroll deduction.

There are two programs available:

• Liberty Mutual Auto and Home Insurance Program • Safeco Insurance Group Plan

Advantages of both programs include:

• a discount from standard rates, depending on the state in which you live and the discounts for which you are eligible*; • no monthly checks, no down payment, and no service fees if you choose payroll deduction; and • online access to paycheck deduction information.

For more information or to enroll in the discount program, contact the Liberty Mutual Auto and Homeowner Insurance Program at 1-800-459-4315 or Safeco Insurance Group Plan at 1-888-824-4223.

* Discounts and credits are available where state laws and regulations allow and may vary by state. Certain discounts apply to specific coverage only. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify. The Liberty Mutual Auto and Home Insurance Program is available in all states. At this point in time, the Safeco Insurance Group Plan is not available in Delaware, District of Columbia, Hawaii, Maine, Massachusetts, Mississippi, New Jersey, North Carolina, Rhode Island and Tennessee.

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This Guide provides an overview of the benefits program offeredby Liberty Mutual and it should not be regarded as an indicatorof an employment contract between you and Liberty Mutual.Complete information about retiree coverage under the health,dental and Employee Life Insurance Plans, 401(k) Plan andRetirement Benefit Plan is included in the legal documents foreach Plan. As always, if there are any discrepancies betweenthis Guide and the legal documents, the legal documents willgovern. The Company reserves the right to change or terminateany plan, the terms of any plan or cost-sharing arrangement atany time.

REV 1/2018


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