L-3 Communications Corporation. Long Term Disability Insurance Plan

Transcription

1 S U M M A R Y P L A N D E S C R I P T I O N L-3 Communications Corporation Long Term Disability Insurance Plan Effective January 1, 2007 L - 3 C O M M U N I C A T I O N S

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3 Table of Contents The Long Term Disability Plan 1 Before You Begin 1 Eligibility and Participation 2 How the Long Term Disability Plan Works 2 What Qualifies as a Long Term Disability 2 How LTD Benefits Are Payable 3 Duration of Benefit Payments 4 Successive Periods of Disability 4 Psychiatric or Substance Abuse-Related Disabilities 5 Residual Disability Work Incentive Benefit 5 Spouse Rehabilitation Benefit 6 Employee Rehabilitation Benefit 7 Survivor Benefits 7 What s Not Covered 8 When Benefits End 8 Claiming Benefits 9 How Benefits Can Be Delayed or Denied 9 Responding to Your Claim 9 Claims Denial Notification 10 Appealing a Denied Claim 10 Other Information You Should Know 12 When Your Earnings Change 12 How Other Benefits Are Affected 12 When Coverage Ends 12 Converting to an Individual Policy 13 Ownership of Benefits 13 Plan Administration 13 Compliance With Federal and State Law 13 Future of the Plan 14 Your Rights Under ERISA 14 Prudent Actions by Plan Fiduciaries 14 Enforcing Your Rights 15 Assistance With Your Questions 15 Plan Facts 16 Glossary 17

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5 The Long Term Disability Plan The L-3 Communications Long Term Disability (LTD) Plan provides monthly income during a prolonged illness or injury. Once you become covered by the Plan, you are assured that you will receive LTD benefits equal to a portion of your income for as long as you are totally disabled (as defined in the Plan and determined by CIGNA, the LTD Plan insurer). Before You Begin This Summary Plan Description describes the most important features of the Long Term Disability Plan as in effect on January 1, Please read it and refer to it when you have any questions about the Plan. We have tried to explain the Plan in everyday language, but you will come across some words and phrases that have specific meanings within the context of the Plan. To help you understand them, they are italicized when first used and included in the Glossary that starts on page 17. Also be sure to read the Other Information You Should Know section of this Summary Plan Description for important information and facts about your rights under the Plan. The Long Term Disability Plan helps protect you and your family from the financial consequences of serious illness or injury. Certain Plan provisions vary by business unit. These provisions are specified in the accompanying Supplement, which is part of the Summary Plan Description. Defined terms in the Supplement have the same meaning they have in this booklet. The actual provisions of the Long Term Disability Plan are set forth in the insurance policy and claims fiduciary agreement between L-3 Communications and the CIGNA Life Insurance Company of New York. Should this Summary Plan Description differ from the insurance policy and claims fiduciary agreement, the terms of the insurance policy and claims fiduciary agreement will govern. the ltd plan 1

6 Eligibility and Participation The rules governing eligibility and participation who s eligible, when coverage begins, how to enroll and how much coverage costs are different at each L-3 Communications business unit. Refer to the Supplement for the eligibility and participation rules that apply at your business unit. If you work for more than one business unit of L-3 Communications Corporation, you will be covered by only one business unit s LTD plan. How the Long Term Disability Plan Works Benefits under the LTD Plan are payable to you once you have been totally disabled for the LTD Plan s waiting period 90, 150 or 180 consecutive days. Refer to the Supplement for the waiting period that applies at your business unit. A period of total disability will be considered continuous even if you return to work temporarily for up to a total of 15 days (if you have a 90-day waiting period) or 30 days (if you have a 150-day or 180-day waiting period). In addition, if you work during the waiting period (which, even though you meet the Plan s definition of totally disabled, you may be able to do on a less than full-time basis), any hours you work may count toward satisfying the waiting period as long as you don t work more than 15 or 30 days, as applicable. What Qualifies as a Long Term Disability To be eligible for LTD Plan benefits, you must meet the Plan s definition of totally disabled. During the first 24 months in which Plan benefits are payable, you are considered totally disabled if, because of injury or illness, you cannot perform all the material duties of your regular occupation or, solely due to injury or illness, you are unable to earn more than 80% of your indexed covered earnings. After 24 months of disability, you are considered totally disabled if you are unable, because of injury or illness, to perform all the material duties of any occupation for which you are, or may reasonably become, qualified by training, education or experience. In addition, you must be under the care of a licensed physician throughout your disability for benefits to be payable. The insurance company may require that your continued disability be certified from time to time. In all circumstances, the insurance company is responsible for determining whether you are totally disabled as defined by the Plan. In doing so, it has full discretionary authority to rely on its own materials, expertise and procedures, especially in determining issues concerning defined terms in the insurance contract. The insurance company has final and complete discretionary authority to make all such determinations. 2 eligibility and participation

7 How LTD Benefits Are Payable The Plan replaces a percentage of your pre-disability covered earnings. Refer to the Supplement for the benefit percentage that applies at your business unit. The minimum monthly benefit the Plan will pay is $100; the maximum benefit payable is $25,000 a month. While you are disabled, you may be eligible for benefits from other sources. The Plan takes into account these other sources of income payable due to the same disability. That means your Plan benefits are reduced by income payable from the following sources due to the same disability: disability benefits you or, if applicable, any of your dependents receive or are assumed to receive from (or under) any of the following: any local, state, provincial or federal government disability or retirement plan or law any L-3 Communications-sponsored sick leave or salary continuance plan any Workers Compensation, occupational disease, unemployment compensation law or similar state, provincial or federal law, including all permanent and temporary disability benefits any work loss provision in mandatory No-Fault automobile insurance the Canada and Quebec Pension Plans You are assumed to receive any of the benefits described here if you are eligible for them whether or not you actually receive them. It is your responsibility to claim all benefits you re eligible for and to ensure that you receive the correct amount. the Railroad Retirement Act amounts payable by any franchise or group insurance plan or similar plan (such as a plan offered by a professional association) any Social Security disability or retirement benefits you or any third party receives (or is assumed to receive) on your or your dependents behalf or, if applicable, which your dependents receive (or are assumed to receive) because of your entitlement to such benefits any retirement benefits you receive under an L-3 Communications-sponsored retirement plan any wage or salary for work performed while Plan benefits are payable, other than earnings while you are residually disabled (as described on page 5). how the plan works 3

8 If your monthly income from these other sources does not add up to the amount determined by your business unit s benefit percentage, the Plan will make up the difference. For example, suppose: your business unit s benefit percentage is 66.67% of your monthly covered earnings Social Security is expected to provide a significant portion of your disability income. It pays benefits to you, after a five-month waiting period, if you are considered permanently disabled. It is your responsibility to claim Social Security benefits and ensure that you receive the correct amount. Your Plan your monthly covered earnings are $3,000 you receive $700 a month from Social Security. To make up the difference between Social Security ($700) and 66.67% of your monthly covered earnings ($2,000), the Plan would pay a monthly benefit of $1,300. Once your LTD Plan benefit is set, any increases in Social Security disability benefits (such as cost-of-living increases) will not reduce the amount you get from the Plan. If the benefits paid from other sources (as described above) are paid in a lump sum, your LTD Plan benefit will be adjusted as if the lump sum was paid in monthly amounts, pro-rated over the period for which the sum is given. If no time span is specified, then the lump sum will be pro-rated monthly over a five-year period. Duration of Benefit Payments If you become totally disabled before your 62nd birthday, Plan benefits are payable until you reach age 65. If you become totally disabled at age 62 or later, benefits are payable as shown on this chart. benefit will be coordinated with the Social Security benefit you (and your family, if applicable) are eligible to receive, whether Age at Disability At least 62 but not yet 65 At least 65 but not yet 67 At least 67 but not yet 69 Maximum Benefit Period 36 months 24 months 18 months or not you actually receive it. CIGNA s Social Security Assistance Program will contact you to help you apply for Social Security benefits. 69 or over 12 months Successive Periods of Disability If you are receiving LTD Plan benefits, return to active service with L-3 Communications for six consecutive months or less and become disabled again from the same or a related cause, your benefits will resume without you having to satisfy the waiting period. However, you will have to satisfy the waiting period again before benefits can resume in either of the following situations: you come back to work for more than six consecutive months and become disabled again from the same or a related cause your second period of disability results from a cause that is unrelated to the first. 4 how the plan works

9 Psychiatric or Substance Abuse-Related Disabilities If you are disabled because of a mental disorder, alcoholism or substance abuse, the Plan generally will pay no more than 24 months of benefits. For benefits to be payable for more than 24 months, you must be confined to a hospital or similar facility for at least 14 consecutive days or be enrolled in an approved program of medically supervised treatment or rehabilitation. This 24-month limit is a lifetime limit that applies to each employee enrolled in the Plan. In any case, benefit payments will be limited as provided above under Duration of Benefit Payments. Residual Disability Work Incentive Benefit Ordinarily, your Plan benefits end when you return to active employment. However, you may be eligible for a work incentive benefit if you are residually disabled, which means you can come back to work at your regular occupation on a part-time basis or you can perform some work at any other occupation on a full-time or part-time basis for less pay. As shown in the chart below, the amount of your benefit under this provision is determined using your indexed covered earnings. You may be eligible for a work incentive benefit if you can return to your regular occupation on a part-time basis or you can do some other job on a full-time or part-time basis for less pay. For This Period of Time The first 12 months after you return to work After 12 months Your Work Incentive Benefit Will Equal your regular Plan benefit. If for any month during this period the sum of your regular Plan benefit, employment earnings and other income benefits (as described on page 3) exceeds 100% of your indexed covered earnings, your Plan benefit will be reduced by the excess amount. your regular Plan benefit reduced by 50% of your employment earnings. If for any month the sum of your regular Plan benefit, employment earnings and other income benefits (as described on page 3) exceeds 80% of your indexed earnings, your benefit will be reduced by the excess amount. how the plan works 5

10 For example, if your indexed covered earnings are $3,000 a month, your regular Plan benefit is $1,800 a month and you return to work on a residually disabled basis for $1,200 a month: Your spouse may be eligible for assistance on their earnings potential through the Spouse Rehabilitation Benefit while you are on a long term disabilityrelated leave of absence. for the first 12 months after you return to work, the Plan will pay you your full regular Plan benefit of $1,800. Thus, your income while you are employed on a residually disabled basis would be: $1,200 employment earnings +1,800 work incentive benefit $3,000 total income (which is limited to 100% of your indexed covered earnings) after 12 months, the Plan will reduce your monthly benefit by 50% of $1,200, which is $600, leaving you with a work incentive benefit of $1,200 ($1,800 $600 = $1,200). Thus, your income while you are employed on a residually disabled basis would be: $1,200 employment earnings +1,200 work incentive benefit $2,400 total income (which is limited to 80% of your indexed covered earnings). Spouse Rehabilitation Benefit While you are disabled, the Plan may help your spouse improve his/her earnings potential by paying certain of his/her education, job placement, moving and child care expenses. You and your spouse must meet all of the following conditions for this benefit to be payable: your spouse s earnings cannot be more than 60% of your pre-disability covered earnings you must have been continuously disabled for 12 months the insurance company must consider your spouse to be a suitable candidate. In exchange for providing employment assistance, the Plan will reduce your LTD benefit by 50% of your spouse s earnings (or, if your spouse was working prior to your disability, 50% of your spouse s increase in earnings attributable to the employment assistance provided by the Plan). You can get more information about this from the insurance company. 6 how the plan works

11 Employee Rehabilitation Benefit If the insurance company determines that you are a suitable candidate for rehabilitation, it will work with you to formulate a rehabilitation plan. The rehabilitation plan spells out the vocational or physical rehabilitation services the insurance company will provide and that you will participate in. Among the topics the rehabilitation plan may cover are payment of your medical, education, moving, accommodation and/or family care expenses. Both you and the insurance company must agree in writing to the plan s terms and conditions before it will go into effect. Survivor Benefits The Plan may provide your family with a temporary monthly income if you die after receiving Plan benefits for at least six months and are receiving benefits at the time of your death. These payments, which would be equal to your monthly LTD benefit, are payable to your surviving spouse for six months, starting on the first of the month after your death. If you have no surviving spouse, survivor benefits are paid in equal shares to your unmarried children under age 21 (including any stepchildren living with you at the time of your death). If there are no spouse and no children, benefits will be paid to your estate. If you die before you have received all Plan benefits to which you are entitled, the Plan will make payment to your survivors or estate, as determined by CIGNA. how the plan works 7

12 What s Not Covered While LTD benefits are paid for most bona fide disabilities, they are not payable for disabilities that result directly or indirectly from: suicide, attempted suicide or self-inflicted injuries Contact your Human Resources Department if you have questions about what is and isn t covered. full-time active duty service in any armed forces active participation in a riot participation in a felony committing an act of terrorism. Pre-existing conditions. The insurance company will not pay benefits for any disability which is caused by, contributed to by, or results from a pre-existing condition. A pre-existing condition is any illness or injury for which you did any of the following within the three months before the last date on which you became covered under the Plan: incurred expenses received medical treatment, care or services, including diagnostic measures took prescribed drugs or medicines. A pre-existing condition also includes any illness or injury you have within the three months before the last date on which you became covered under the Plan for which a reasonable person would have consulted a physician. The Plan will cover pre-existing conditions once you have been covered for 12 consecutive months. New business units. If you are joining the Plan as a result of your employer s acquisition by L-3 Communications and you were insured under your employer s prior LTD plan for at least 60 days before your business unit s integration into this Plan, the insurance company will credit you for all time served towards that prior plan s limitation period, for similar or lower benefit amounts. If benefits under this Plan are higher than under your prior plan, you do not receive credit for the higher benefit levels. This limitation also applies to newly added or increased benefits. When Benefits End LTD benefits will end on the earliest of the following: the date you earn more than 80% of your pre-disability earnings the date the insurance company determines you are no longer disabled the end of the maximum benefit period described on page 4 your date of death. 8 how the plan works

13 Claiming Benefits After you ve been disabled for about six weeks, contact your Human Resources Department to begin the process of claiming Plan benefits. Your Human Resources Department will explain how it works. The insurance company has the right to require you to submit a signed statement identifying all other income benefits for which you are eligible and proof that you and your dependents have applied for them. Your claim for LTD benefits will be delayed or denied if you do not return any information requested by the insurance company on a timely basis. How Benefits Can Be Delayed or Denied Benefit payments may be delayed or denied if: you or your beneficiary do not properly file a claim for benefits on time you or your beneficiary do not furnish information required to complete or verify a claim your or your beneficiary s current address is not on file with L-3 Communications or the Plan Administrator. If you improperly file a claim, the insurer will notify you as soon as possible and give you the opportunity to properly refile the claim. Keep in mind that if a claim form has to be returned to you for more information, delays in payment may result. Submit claims by calling the toll-free CIGNA Claim Reporting Hotline number CIGNA ( ) or by going online to cigna.com. If your claim is denied, you have the right to request a review (see page 10). If the Plan mistakenly pays you a greater benefit than you are entitled to, L-3 Communications may seek permissible remedies (as allowed by law) to recover benefits paid to you in error. Responding to Your Claim For properly filed disability claims, the insurer will make a decision on the claim and notify you of its decision within 45 days. If the insurer needs more time for reasons beyond their control, it will notify you of the reason for the delay and the date the decision will be made, and it will do so before the 45-day period expires. The insurer will make its decision within 30 days of notifying you of the delay, although it may take an additional 30 days as long as it notifies you, before the first 30-day extension period expires, of the circumstances requiring the second extension and the date by which the insurer expects to make a decision. If the insurer needs an extension because it needs additional information from you, the extension notice will specify the information needed. In that case, you will have 45 days from receipt of the notification to supply the additional information. If you do not provide the information within that time, your claim will be denied. The insurer will notify you of its decision within 30 days of receiving in a timely manner the additional information that it requested. claiming benefits 9

14 Claims Denial Notification The insurer will notify you in writing if your claim has been denied, either in full or in part. This notice will state: the specific reason(s) for the denial You may have an authorized representative act on your behalf in filing a claim or an appeal of a denied claim. reference to the specific Plan provision(s) on which the denial is based a description of any additional material or information necessary to support the claim, and an explanation of why the material or information is necessary an explanation of the appeal procedures, including a statement that you may bring a civil action under Section 502(a) of ERISA but only after you have followed the Plan s claims procedures and received an adverse decision on appeal a copy of any internal rule, guideline or protocol that was relied on in making the determination or a statement that it is available upon request at no charge an explanation of any scientific or clinical judgment that formed the basis for the determination, or a statement that it is available upon request at no charge. Appealing a Denied Claim If your claim is denied in whole or in part, or if you disagree with the decision made on a claim, you may ask for a review. Your request for review must be made in writing to the insurer within 180 days after you receive notice of denial. How the review process works. You have the right to review documents relevant to your claim. You may submit written comments, documents, records and other information relevant to the claim. In addition, as part of the review procedure, you will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim. A document, record or other information is relevant if it falls into any of the following categories: the insurer relied on it in making the decision the insurer submitted, considered or generated it (regardless of whether it was relied upon) it demonstrates compliance with the Plan s administrative processes for ensuring consistent decision-making it constitutes a statement of Plan policy regarding the denied treatment or service. Upon request, you will be provided with the identification of medical or vocational experts, if any, who gave advice to the insurer on your claim, without regard to whether their advice was relied upon in deciding your claim. 10 claiming benefits

15 A different person will review your claim than the one who originally denied the claim. The reviewer will not give deference to the initial adverse benefit determination. The decision will be made on the basis of the record, including such additional documents and comments that you may submit. If your claim was denied on the basis of a medical judgment, a health care professional who has appropriate training and experience in a relevant field of medicine will be consulted. When you ll be notified. You will be sent a notice of decision on review within 45 days after you file your appeal. If the insurer requires up to an additional 45 days for reasons beyond their control, they will notify you of the reason for the delay and the date the decision will be made. You will be notified before the expiration of the original 45-day period. How you ll be notified. The insurer will notify you in writing of its decision on your appeal of a denied claim. This notice will state: You must complete each step of the claim and appeal procedure before you can take legal action. the specific reason(s) for the decision reference to the specific Plan provision(s) on which the decision is based a statement that you may have access to or copies of all documents or records that are relevant to your claim free of charge a statement that you have a right to bring a court action under Section 502(a) of ERISA following an adverse benefit determination on review if an internal rule, guideline or protocol was relied upon in making the decision, you will receive either a copy of the rule, guideline or protocol or a statement that it is available upon request at no charge if the determination is based on medical reasons, you will receive an explanation of the scientific or clinical judgment for the determination applying the terms of the Plan to your claim, or a statement that it is available upon request at no charge. Please note that you may not start a lawsuit to obtain benefits until after you have requested a review and a final decision has been reached on review, or until the appropriate timeframe described in this booklet has elapsed since you filed a request for review and you have not received a final decision or notice that an extension will be necessary to reach a final decision. The law also permits you to pursue your remedies under section 502(a) of the Employee Retirement Income Security Act without exhausting these appeal procedures if the Plan has failed to follow them. No action at law or in equity (that is, no lawsuit) may be brought (started) more than three years after written proof of loss must be furnished. If you have any questions regarding the claims appeal process, contact your Human Resources Department. claiming benefits 11

16 This section contains important administrative information and facts about your rights as a participant in the Plan. Other Information You Should Know This booklet is provided to you so that you may generally know about the benefits offered under the L-3 Communications-sponsored Long Term Disability Plan and the steps you must follow to take full advantage of the Plan. The previous sections describe the most important features of the Plan; what you will find here is important administrative information and facts about your rights as a participant in this Plan. This booklet and the accompanying Supplement constitute the Summary Plan Description (SPD) for L-3 Communications Long Term Disability Plan. The actual provisions of the Long Term Disability Plan are set forth in the insurance policy and claims fiduciary agreement between L-3 Communications and the CIGNA Life Insurance Company of New York. Should this Summary Plan Description differ from the insurance policy and claims fiduciary agreement, the terms of the insurance policy and claims fiduciary agreement will govern. When Your Earnings Change Your Plan coverage is based on your pre-disability earnings. If your earnings increase while you are on LTD leave, your LTD benefit will not be increased. The increased coverage will go into effect on the day you return to work. How Other Benefits Are Affected During a long term disability, your L-3 Communications-sponsored benefits may continue for a limited period of time. Refer to the Supplement to find out how this works at your business unit. When Coverage Ends Your Plan coverage will end when the earliest of the following happens: your employment with L-3 Communications terminates you are laid off you are no longer an eligible employee the date the Plan is terminated. 12 other information

17 Converting to an Individual Policy You may be eligible for conversion coverage if, for at least 12 consecutive months, you have been insured for disability benefits under this Plan and are actively at work. You must apply for conversion insurance within 31 days after your insurance under this Plan ends. The conversion plan s benefits will be those offered by the insurance company at the time you apply. The premium will be the rates in effect for conversion plans at that time. Conversion insurance is not available if any of the following apply: you are retired you are age 70 or older you are not in active service because you are disabled Being a member of the Plan described in this booklet does not give you any right of continued employment with L-3 Communications. the Plan is terminated for any reason. Ownership of Benefits The benefits described here are exclusively for Plan participants or their properly designated beneficiaries. These benefits cannot be sold, transferred or assigned for any reason (except as provided by law). Plan Administration L-3 Communications Corporation, as the Plan Administrator, is responsible for the administration of the Plan. Your business unit s Human Resources Department acts on behalf of the Plan Administrator, and is responsible for routine plan administration, such as collecting enrollment forms (if applicable) and answering questions about eligibility and coverage. The Plan Administrator has the full and complete discretionary authority and responsibility to administer the Plan and may delegate any or all of its authority and responsibility to any individuals or entities by action of its Board of Directors. The Plan Administrator has delegated to the insurance company the full and complete discretionary authority and responsibility to decide all questions of eligibility for benefits under the Plan. For example, the insurance company has the full and complete discretionary authority and responsibility to decide whether you are disabled under the terms of the Plan. The insurance company s decisions are final and binding on all persons to the full extent permitted by law. Compliance With Federal and State Law In general, ERISA pre-empts state law. However, ERISA does not pre-empt state laws that regulate insurance. The Plan will always be construed to comply with applicable federal and state law. In the event there is no controlling federal or state law, the law of the State of New York will apply. other information 13

18 Under ERISA, you have the right to obtain copies of documents governing the operation of the Plan. Future of the Plan L-3 Communications intends to continue the Long Term Disability Plan indefinitely, but reserves the right to change, terminate, amend or modify the Plan at any time, in any manner, at L-3 Communications sole discretion by action of the Board of Directors, according to the procedures spelled out in the official Plan documents and subject to applicable collective bargaining agreements. You will be notified of any change; however, the change, amendment, termination or modification may become effective before notice is given to you. Premium and contribution rates (if applicable) may change each year, subject to applicable collective bargaining agreements. Your Rights Under ERISA As a participant in the Plan, you are entitled to the following rights and protections under the Employee Retirement Income Security Act of 1974, as amended (ERISA). ERISA provides that you will be entitled to receive information about your Plan and benefits, as follows: Examine, without charge, at the Plan Administrator s office and at other specified locations, such as work sites and union halls, all documents governing the Plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the Plan Administrator with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and an updated Summary Plan Description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate the Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA. 14 ERISA rights

19 Enforcing Your Rights If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the Plan and do not receive them within 30 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 $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court after you have followed the Plan s claim procedures. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in 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. Contact the nearest office of the Employee Benefits Security Administration if you have questions about ERISA. You can get publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. Assistance With Your Questions If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC You can get publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. To visit the Department of Labor s Web site, go to ERISA rights 15

20 Plan Facts Contact the Corporate Plan Name Plan Sponsor L-3 Communications Welfare Plan L-3 Communications Corporation 600 Third Avenue New York, NY Human Resources Department to get a list of participating L-3 Communications business units. Employer Identification Number Plan Number 502 Plan Administrator and Named Fiduciary L-3 Communications Corporation c/o Vice President, Human Resources 600 Third Avenue New York, NY Agent for Service of Legal Process Process may be served upon the Plan Administrator at the address indicated above. Plan Year January 1 December 31 Type of Plan Type of Administration Plan Records Plan Funding Welfare Insurance contracts with the following CIGNA underwriting companies: CIGNA Life Insurance Company of New York Two Grand Central Tower 140 East 45th Street New York, NY and Life Insurance Company of North America Two Liberty Place 1601 Chestnut Street Philadelphia, PA The records of the Plan are maintained on a calendar year basis. Refer to the Supplement for funding information that applies to your business unit. 16 plan facts

21 Glossary This Glossary is provided to help you understand the Plan by summarizing several of its key terms. However, any questions about Plan coverage that concern these terms will be answered by the insurer, which has full discretionary authority to use its own materials, procedures and expertise to define these terms. The insurer is not limited to the summary definitions provided in this Glossary. Earnings means your pre-disability covered earnings, as defined below. Immediate family includes your parents, children, siblings and the spouse of any of the foregoing, whether the relationship derives from blood or marriage. Indexed covered earnings consist of your covered earnings adjusted annually to reflect any increases in the Consumer Price Index (CPI-W) during the preceding calendar year, up to a 10% annual increase. Mental disorder includes mental illness and anxiety, delusional (paranoid), eating, depressive or somatoform (psychosomatic) disorders. Physician means a licensed doctor practicing within the scope of his or her license, and rendering care and treatment to you that is appropriate for your condition and locality. The term physician does not include yourself, your spouse, your immediate family or a person living in your household. Pre-disability covered earnings consist of your basic monthly salary or wages plus, if applicable, the monthly average of any Management Incentive Bonuses (MIB) and Sales Incentive Bonuses (SIB) you received during the 36 months before your disability began (or your entire time with L-3 Communications, if less than 36 months). Your pre-disability covered earnings also will include commissions if you get all or part of your earnings from them. The amount included in your pre-disability covered earnings will be based on an average of the commissions you received from L-3 Communications for the 24 months before your total disability began (or your entire time with L-3 Communications, if less than 24 months). Pre-existing condition is any illness or injury for which you did any of the following within the three months before the last date on which you were covered under the Plan: incurred expenses received medical treatment, care or services, including diagnostic measures took prescribed drugs or medicines. A pre-existing condition also includes any illness or injury you have within the three months before the last date on which you were covered under the Plan for which a reasonable person would have consulted a physician. glossary 17

22 Residually disabled means you can come back to work at your regular occupation on a part-time basis or you can perform some work at any other occupation on a full-time or part-time basis for less pay. Retirement plan means, for LTD Plan purposes, any L-3 Communications-sponsored defined benefit or defined contribution money purchase pension plan. It does not include an individual deferred compensation agreement, profit sharing plan, employee savings plan, individual retirement account or 401(k) plan. Spouse means, for LTD Plan purposes, your lawful spouse. 18 glossary

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