CenturyTel ABSENCE PAY AND LEAVE PROGRAMS TABLE OF CONTENTS

Transcription

1 CenturyTel ABSENCE PAY AND LEAVE PROGRAMS TABLE OF CONTENTS INTRODUCTION...1 SUMMARY OF ABSENCE PAY AND LEAVE PROGRAMS...2 Absence Pay Plans...2 Paid-Time Off (PTO) Plan...2 Short-Term Disability (STD) Pay Plan...2 Supplemental Accident Pay Plan (SAP)...2 Workers Compensation Pay Plan...2 Long-Term Disability (LTD) Plan...2 Leave Programs...2 Disability Management Program...2 Federal Family & Medical Leave...2 Military Family Leave...3 State Mandated Leave...3 ABSENCE PAY PLAN & PAID TIME OFF (PTO)...4 Introduction...4 Eligibility...4 Cost of Coverage...4 Payment of PTO Benefits...4 Accruing PTO...4 Your Maximum PTO Bank Balance...5 Scheduling PTO...5 PTO and Your Own Disability...5 PTO and Family & Medical Leave (FMLA)...5 Leave Application...6 PTO and Holiday Pay...6 PTO and Overtime Pay...6 PTO and Differential Pay...6 PTO and Partial Day Absence for Exempt Employees...6 Illness during Scheduled PTO...6 Unused PTO Hours at Year-End...6 Transfer to or from a Union Position...6 When You Leave the Company...6 SHORT-TERM DISABILITY PAY...8 Introduction...8 Eligibility...8 Cost of Coverage...8 Payment of STD Benefits...8 How Your STD Benefits are Determined...8 STD and PTO Supplementation...9 STD and Sales Incentive Plan...9 How the PTO Plan Works with the STD Plan...9 Example 1: Consecutive Absence...9 Example 2: Intermittent Absence for Different Disabilities due to Different Reasons...9 ABSENCE PAY AND LEAVE PROGRAMS (CT1) January 2009

2 Example 3: Intermittent Absence for the Same Disability with Relapse...9 How Long STD Plan Benefits May Be Paid...10 When Short-Term Disability Ends...10 STD and Holiday Pay...10 STD and Family & Medical Leave (FMLA)...10 Leave Application...11 Exclusions...11 Abuse of Leave Benefits...11 SUPPLEMENTAL ACCIDENT PAY AND WORKERS COMPENSATION...12 Introduction...12 Cost of Coverage...12 Payment of SAP Benefits...12 Administration...12 Sample Benefit Calculation and Offset...13 Workers Compensation Pay Plan...13 LONG-TERM DISABILITY INSURANCE PLAN...14 Introduction...14 Eligibility...14 Enrollment and When Coverage Begins...14 Cost of Coverage...14 What is a Disability...14 Your Job while on LTD...15 Continuing Other Benefits while on LTD Leave...15 The Benefit Waiting Period...15 When Disability Benefits Begin...15 Benefit Amount...16 Calculation of Monthly Benefit...16 Changes in Your Monthly Benefit...16 Changes in the Plan...16 Maximum Duration of Benefits Table...16 Exclusions...17 When Benefit Payments Cease...18 Mental Illness, Substance Abuse and Other Limited Conditions...18 Recurrent Disability...19 Rehabilitation Program...20 Return to Work Incentive...20 Vocational Rehabilitative Employment...20 Survivor Income Benefit...21 How to File a Claim...21 When Payment Checks are Issued...22 Notification of a Decision On Claim...22 How to Appeal a Denied Claim...22 When Legal Action Can Begin...23 Subrogation Rights...24 Overpaid Benefits...24 Termination of Coverage...24 GLOSSARY FOR ABSENCE PAY PLANS...26 Actively at Work...26 Active Full-time Employee...26 Any Occupation...26 Current Monthly Earnings...26 Definitions of Disability and Disabled...26 ABSENCE PAY AND LEAVE PROGRAMS (CT1) January 2009

3 Employer...26 Indexed Pre-Disability Earnings...26 Material Duties...27 Monthly Benefit...27 Monthly Rate of Basic Earnings...27 Other Income Benefits...27 Own Occupation...28 Physician...28 Pre-disability Earnings...28 Regular Care of a Physician...28 Retirement Plan...28 We/Us/Our...28 You/Your...29 FORMAL INFORMATION ABOUT THE PLAN...30 Conforming Instrument...30 Plan Name and Number...30 Plan Sponsor and Administrator...30 Type of Plan...30 Agent for Service of Legal Process...30 Sources of Contributions...30 Type of Administration...30 Plan Amendment Procedure...31 DISABILITY MANAGEMENT PROGRAM...32 Medical Leave...32 Medical Leave Categories...32 Medical Leave of Absence for Employees with Less Than One Year of Service...32 Administrative Leave of Absence...32 Federal Family & Medical Leave...32 Extended Medical Leave...32 Long-Term Disability Leave...33 Pay while on Leave...33 Administration of Disability Leave Program...33 Medical Leave Application...33 Application Review and Approval...34 Medical Re-Evaluations...34 Reinstatement of Employment...34 The Modified Duty Return to Work Program...35 Modified Duty Return to Work Eligibility...35 Pay while Participating in the Modified Duty Return to Work Program...35 Modified Duty Return to Work Application...36 Modified Duty Return to Work Application Review and Approval...36 Modified Duty Return to Work Re-Evaluations...36 Modified Duty Return to Work Reinstatement Leave Less Than 480 Hours...36 Modified Duty Return to Work Reinstatement - Leave More Than 480 Hours...37 MEDICAL LEAVE FOR EMPLOYEES WITH LESS THAN A YEAR OF SERVICE...38 Medical Leave Application...38 Medical Re-Evaluations...38 Notification of Approval...39 Pay While On Leave...39 Voluntary Separations Other Situations...39 ADMINISTRATIVE LEAVE OF ABSENCE...40 Leave Request...40 ABSENCE PAY AND LEAVE PROGRAMS (CT1) January 2009

4 Pay While On Leave...41 Voluntary Separations Other Situations...41 FEDERAL FAMILY & MEDICAL LEAVE ACT (FMLA)...42 Basic Leave Entitlement...42 Military Family Leave Entitlements...42 Benefits and Protections...42 Eligibility Requirements...42 Definition of Serious Health Condition...43 Use of Leave...43 Substitution of Paid Leave for Unpaid Leave...43 Employee Responsibilities...44 Employer s Responsibilities...44 Unlawful Acts by Employers...44 Enforcement...44 SUMMARY OF STATE MANDATED LEAVE REGULATIONS...45 Summary of Leave Laws for Alabama Employees...45 Leave for Volunteer Firefighters and EMS...45 Summary of Leave Laws for Arkansas Employees...45 Leave for Organ Donation...45 Summary of Leave Laws for Colorado Employees...45 Domestic Violence Leave Law...45 Leave for Volunteer Firefighters...45 Summary of Leave Laws for Florida Employees...45 Leave for Domestic Violence...46 Summary of Leave Laws for Illinois Employees...46 Victim s Leave...46 Leave for Blood/Platelet Donation...46 Family Military Leave...46 School Visitation Leave...46 Summary of Leave Laws for Louisiana Employees...46 School and Daycare Conference and Activities Leave Act...46 Disaster Leave...46 Leave for Bone Marrow Donation...47 Summary of Leave Laws for Minnesota Employees...47 Birth or Adoption Leave...47 Sick or Injured Child Care Leave...47 School Conferences and Activities Leave...47 Leave for Adoptive Parent...47 Leave for Family of Military Personnel...47 Crime Victims and Next of Kin...48 Civil Air Patrol (CAP) Service...48 Bone Marrow Donation Leave...48 Summary of Leave Laws for Montana Employees...48 Maternity Leave Act...48 Leave for Crime Victims and Witnesses...48 Summary of Leave Laws for North Carolina Employees...48 Leave for School Visits...48 Summary of Leave Laws for Ohio Employees...48 Leave for Victims of Crime...48 Summary of Leave Laws for Oregon Employees...49 Care for Newborn Child, Newly Adopted Child or Placed Foster Child...49 Care for Family Member with a Serious Health Condition...49 Serious Health Condition of Employee...49 ABSENCE PAY AND LEAVE PROGRAMS (CT1) January 2009

5 Care for Sick Child...49 Leave of Absence to Donate Bone Marrow...49 Leave for Domestic Violence, Sexual Assault and Stalking...49 Summary of Leave Laws for Tennessee Employees...49 Maternity Leave Law...50 Parent-Teacher Conferences...50 Summary of Leave Laws for Washington Employees...50 Birth or Adoption...50 Care for Child under the Age of 18 Suffering from Terminal Health Condition...50 Care of Child under the Age of 18 with Health Condition Requiring Treatment or Supervision...50 Care for Family Member with a Serious Health Condition...50 Leave for Crime Victims...50 Leave for Volunteer Firefighters...51 Washington Military Family Leave...51 Summary of Leave Laws for Wisconsin Employees...51 Birth or Adoption...51 Care of a Child, Spouse or Parent with a Serious Health Condition...51 Employee s Own Serious Health Condition...51 STATEMENT OF ERISA RIGHTS...52 ABSENCE PAY AND LEAVE PROGRAMS (CT1) January 2009

6 INTRODUCTION The Company recognizes that, to consistently do our best on the job, it s important to be able to balance our time at work and away from work. That is why we offer a comprehensive program with the flexibility to help ensure that you can take time-off from work when you need it. An employee s pay status during any approved time-off will be dependent on the nature of the absence. Pay and administration specifics are addressed in this summary for the following participating employees: Regular non-represented employees, and Employees covered by a collective bargaining agreement made between CenturyTel and the following: - Ohio CWA Local Oregon IBEW Local 89 - Oregon CWA Montana IBEW Local Washington CWA Local Washington IBEW Local 89 This summary also applies to the collective bargaining agreements shown below, except for the following sections Absence Pay Plan & Paid Time Off (PTO), Short-Term Disability Pay and Administrative Leave of Absence. Please refer to your specific collective bargaining agreement for information regarding these benefits. - Alabama CWA Locals 3971, 3972 and Arkansas CWA Locals 6171 NW and 6171C - Michigan IBEW Local Missouri IBEW Local Missouri CWA Locals 6301, 6310, 6311, 6312 and Wisconsin CWA Locals 4671, 4672, 4674 and 4675 Although CenturyTel intends to continue the benefit plans outlined in this booklet, it reserves the right to amend, change, or terminate any plans, plan provisions or benefits at any time for any reason to the extent permitted by law. This means the plans may be discontinued in part or in its entirety, modified to provide different benefits, different levels of benefits, or a different cost sharing between the company and employees; or changed in any other way. If there are any changes made in the future, you will be notified. WHERE TO CALL For Information, Questions or Services CenturyTel Benefits Services: (800) P.O. Box 9901 Vancouver, WA ABSENCE PAY AND LEAVE PROGRAMS (CT1) 1 JANUARY 2009

7 SUMMARY OF ABSENCE PAY AND LEAVE PROGRAMS The Absence Pay and Leave Programs described in this book are an important part of your total compensation package. The programs include benefit plans, policies and procedures to meet your needs for time-off from work for rest and relaxation, illness, injury, to care for a family member or other personal time off. The Absence Pay and Leave Programs available to employees include: Absence Pay Plans Paid-Time Off (PTO) Plan The PTO Plan provides a combination of vacation and sick leave into a single bank of hours you can use when you need paid time away from work for rest and relaxation, short-term illness or injury (up to 40 hours for each illness/injury), doctor or dentist appointments, to care for a family member, or other personal time off. Short-Term Disability (STD) Pay Plan The STD Plan provides you with a source of income up to a maximum of 1,000 hours if your own illness or injury continues after the PTO waiting period. Supplemental Accident Pay Plan (SAP) Supplemental Accident Pay may provide you income up to 100% of regular base pay when added to your Workers Compensation benefit in the event of your occupational-related disability, unless a bargaining agreement states otherwise, Supplemental Accident Pay is available up to a maximum of 180 days (1,040 hours) for a single disability. Workers Compensation Pay Plan Pay while on an occupational disability leave varies according to state law. SAP benefits are offset by Workers Compensation benefits. Specific information on the percent of gross salary paid as income replacement is available from your Human Resources manager. Long-Term Disability (LTD) Plan Long-Term Disability (LTD) plan benefits are provided when you are disabled due to an occupational or non-occupational disability for more than 180 consecutive days for any one period of disability and otherwise qualify for the benefit. Leave Programs Disability Management Program The Disability Management Program integrates policies and procedures related to absence from work, including pay, employment status and staffing issues that may arise when you experience a disabling condition. Federal Family & Medical Leave The Family & Medical Leave Act (FMLA) of 1993 allows eligible employees of a covered employer to take job-protected, unpaid leave, or to substitute appropriate paid leave if the employee has earned or accrued it, for up to a total of 12 workweeks in any 12 months because of birth or adoption of a child, to care for a family member, or because of the employee s own serious health condition. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 2 JANUARY 2009

8 Military Family Leave The National Defense Authorization Act (NDAA) amended the FMLA to provide eligible employees up to 12 weeks of leave because of any qualifying exigency or up to 26 weeks of leave for military caregiver. State Mandated Leave In addition to the Federal Family & Medical Leave Act of 1993, some states make provisions based on state regulations for medical and/or family leave. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 3 JANUARY 2009

9 ABSENCE PAY PLAN & PAID TIME OFF (PTO) Introduction The Paid-Time Off (PTO) Plan is designed to give you more freedom in deciding how you use your time away from work. It combines vacation and sick leave for short-term illnesses into a single bank of hours you can use for any reason when you need paid time away from work. Eligibility Unless a collective bargaining agreement states otherwise, you are eligible for the PTO Plan on the first day on which you are a regular full-time employee, or a regular part- time employee working 20 hours a week or more. Cost of Coverage The Company pays the cost of the PTO Plan. Payment of PTO Benefits PTO is paid at 100 percent of your regular straight-time rate of pay up to a maximum of 40 hours per workweek. PTO benefits become payable when you are away from work due to: Vacation Health care appointments or your non-occupational illness or injury for up to 40 work hours Family illness or injury Other personal time off Accruing PTO PTO benefits are credited to your PTO bank each pay period during which you have any regular work or other paid hours. The amount of PTO you receive is based on your length of service with the Company. Full-time employees accrue PTO each pay period (every two weeks) as shown below: Years of Service PTO Accrual 0 through through through through through or more 9.24 Note: Accrual rate changes on the 5, 10, 15, 20 and 25-year anniversary date. Regular parttime employees, working a minimum of 20 hours per week, accrue PTO hours at one-half the rate shown above. Accrued hours may be used in the pay period in which they are credited to your PTO bank. PTO will not accrue for any pay period during which you are on unpaid leave for the entire pay period, layoff status or receiving benefits from the Company s Long-Term Disability Plan (LTD). ABSENCE PAY AND LEAVE PROGRAMS (CT1) 4 JANUARY 2009

10 Your Maximum PTO Bank Balance PTO hours are credited to your PTO bank until you reach a maximum balance. Your maximum balance is based on your years of service. When any additional accrued PTO hours would exceed your maximum balance, no further hours will be credited to your account until you take time off. Below are the maximum balances you may accrue based on your years of service: Years of Maximum Service Accrual 0 through through through through through or more 280 Note: The maximum accrual balance increases on your 5, 10, 15, 20 and 25 year anniversary. For part-time employees, the maximum accrual is half the hours shown above. Scheduling PTO PTO must be scheduled as far in advance as possible for the mutual convenience of yourself and the Company. If you are unable to report to work because of an illness or injury, you must notify the designated supervisor of the intended absence and the reasons as promptly as available means of communication permit. PTO and Your Own Disability When you are unable to work due to non-occupational illness or injury, PTO benefits may be paid for up to 40 hours (or unpaid, if PTO is unavailable) for consecutive absences due to the same or different disabilities, intermittent absences for each different disability due to different reasons, or intermittent absences for the same disability. The first 40 hours of PTO due to illness or injury is called the PTO Elimination Period. If your own disability meets Federal Family & Medical Leave (FMLA) guidelines, (see section under Leave Programs), you must appropriately code your PTO absence as FMLA eligible with the correct pay code. For the 40 hour PTO Elimination Period, you must use all earned PTO. IF your PTO balance is insufficient you must use available Floating Holidays before going on unpaid status. PTO and Family & Medical Leave (FMLA) As outlined in the Federal Family & Medical Leave (FMLA) section under Leave Programs, you may be eligible for FMLA for up to twelve (12) weeks of leave during a twelve (12) month period for absences related to: The birth and/or adoption of a newborn child. Adoption or placement of a foster child in your home. Care required for qualified family member due to serious health condition. Except to the extent that applicable state laws or collective bargaining agreements provide otherwise, if you are absent to care for a qualified family member due to a serious health condition, you must use all earned PTO then floating holidays before going on unpaid status. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 5 JANUARY 2009

11 Leave Application A Leave of Absence Application (Form #2760) must be completed in accordance with the Disability Management Program. See Leave Programs section. PTO and Holiday Pay If a paid holiday is observed while you are on PTO, you will receive holiday pay for that day instead of PTO benefits, provided you are in a paid status the entire day prior to the holiday as well as the entire first scheduled workday after the holiday. PTO and Overtime Pay PTO hours taken are not eligible when calculating overtime pay. PTO and Differential Pay Shift differential pay is not applied to PTO hours taken. PTO and Partial Day Absence for Exempt Employees To comply with FLSA guidelines, an exempt employee who works only a portion of the full work day (i.e. worked 4 hours and goes home sick for 4 hours) and does not have sufficient PTO hours to cover a full day s absence, cannot have a reduction in pay. Hours not worked for a partial day absence must be coded to paid administrative leave if no PTO hours are available. Note: If the employee is absent a full day and has insufficient PTO hours to cover the time off, the hours not payable with PTO are coded to unpaid leave. Illness during Scheduled PTO If you are on PTO for vacation purposes and suffer a disability that extends beyond five (5) work days (40 hours) you are expected to notify your immediate supervisor as soon as possible. Upon notice, your supervisor will, if appropriate, authorize pay from the Short-Term Disability (STD) Plan. Unused PTO Hours at Year-End Accrued but unused PTO hours will carry over from one year to the next. You may carry over hours up to your maximum PTO bank balance, based on your years of service. Transfer to or from a Union Position If you transfer from a position whose time off benefits are governed by a bargaining agreement that is not covered by PTO, you will have unused vacation hours currently on record converted to the PTO bank balance. No additional hours are eligible to be converted. Your PTO accrual from that point forward will be based on years of service. If you transfer to a position whose time off benefits are governed by a collective bargaining agreement that is not covered by PTO, you will have unused PTO converted to a vacation balance. Additional prorated vacation hours awarded in the calendar year of your transfer, and carryover of unused vacation hours from one calendar year to the next are subject to the provisions outlined in the collective bargaining agreement. When You Leave the Company When you leave the company for any reason other than retirement, PTO hours accrued but not taken will be paid to you. PTO cannot extend the separation date beyond the last day worked. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 6 JANUARY 2009

12 When retiring, you may elect one of the following three options regarding accrued but unused PTO: 1. Receive pay for PTO hours at your termination date, 2. Use the hours to extend your termination date. Floating holiday may also be used to extend the termination date, or 3. Elect a combination of 1 and 2 above. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 7 JANUARY 2009

13 SHORT-TERM DISABILITY PAY Introduction The Short-Term Disability (STD) Plan is intended to provide you with a source of income if your own illness or injury continues after the PTO waiting period. Eligibility Unless a collective bargaining agreement states otherwise, you are eligible for the STD Plan if you are a regular full-time employee with one (1) or more years of full-time service. Less than one (1) year of service, part-time, casual and temporary employees are not eligible for STD benefits. If you are unable to work due to pregnancy, illness or injury, the STD Plan will provide a source of income until you are released to return to work or unable to return to work up to a maximum of 1,000 hours. While receiving STD benefits, you must keep the Company informed if you relocate from your home or normal work location during your disability. No benefits shall be paid for such period of absence, unless you have received confirmation from Disability Management regarding your relocation, and have provided medical certification to satisfy proof of disability. Cost of Coverage The Company pays the cost of the STD Plan. Payment of STD Benefits STD benefits become payable for each period of disability that extends beyond the period covered by PTO as outlined in the PTO plan section. To be eligible for STD benefits, you must provide written verification from your doctor that you are disabled. The plan reserves the right to conduct an independent medical examination, at Company expense, to confirm your disability. How Your STD Benefits are Determined The STD Plan pays benefits as shown below based on your years of service: Employees with less than one (1) year of service are not eligible for STD benefits. If you mark your one (1) year of full-time service while on an approved medical leave of absence you become eligible to receive STD benefits once you have satisfied the PTO elimination period. If your length of service is one (1) through four (4) years, your STD benefit equals 100% of pay, up to 40 hours, then 50% of pay, up to 960 additional hours. If your length of service is five (5) years or more, your STD benefit equals 100% of pay up to 440 hours, then 65% of pay up to 560 additional hours. For all eligible employees, the first forty (40 continuous hours of disability is paid from available PTO hours. If your PTO balance is insufficient, you must use available Floating Holidays before going on unpaid status unless otherwise stated by a collective bargaining agreement. If an employee on intermittent leave is off work less than 40 consecutive hours, the intermittent leave will not be eligible for STD pay. Additionally, once an employee has returned to work from a continuous leave with a full medical release, and then is absent again for the same condition, the employee is again required to fulfill the 40 hour PTO ABSENCE PAY AND LEAVE PROGRAMS (CT1) 8 JANUARY 2009

14 elimination period. Once you have been back at work for 60 days without receiving STD benefits for the same disability, you will again be eligible for up to a maximum of 1000 hours of STD once you have fulfilled the PTO elimination period of forty (40) continuous hours. STD and PTO Supplementation You may use available PTO hours to supplement your STD benefits to bring your pay up to 100%. However, once you are receiving STD pay, you cannot substitute PTO for STD pay while you are out for the same disability. Please note: you may NOT use Floating Holidays to supplement your STD benefit pay. STD and Sales Incentive Plan It is the intent of the plan to pay only STD benefits during the time an employee is on leave and not sales compensation during the same time period. How the PTO Plan Works with the STD Plan The following are three examples of how PTO benefits work with the STD Plan: Example 1: Consecutive Absence Tim is unable to work for 15 workdays due to back surgery. If Tim has five years of service, here is how time off benefits are paid to him: During his first five (5) days (40 hours) of continuous absence, he receives 100% of pay from his PTO bank if hours are available, floating holiday, or unpaid if not available; then For the remaining ten (10) days (80 hours) of absence, he receives 100% of pay from the STD Plan. Example 2: Intermittent Absence for Different Disabilities due to Different Reasons Julie is unable to work for five (5) days due to a knee injury. She returns to work for a day, then is absent for the next two days due to a cold. The following is how time off benefits are paid to her in this case: During her first five (5) days (40 hours) of continuous absence due to the knee injury, she receives 100% of pay from her PTO bank if hours are available, floating holiday, or unpaid if not available; then During her next two (2) days (16 hours) of absence due to the cold, she received 100% of pay from her PTO bank if hours are available, floating holiday, or unpaid if not available. STD benefits do not become payable in this case because her time off was for a different reason than her first 40 hours. Example 3: Intermittent Absence for the Same Disability with Relapse Gene is unable work for two (2) days due to the flu. He returns to work for a day, then has a relapse and is absent for the next eight (8) days with the flu. The following is how time off benefits are paid to him in this case: During his first two (2) days (16hours) of absence due to the flu, he receives 100% of pay from his PTO bank if hours are available, floating holiday, or unpaid if not available; ABSENCE PAY AND LEAVE PROGRAMS (CT1) 9 JANUARY 2009

15 then During the first five (5) days of continuous absence due to relapse of the flu, he receives 100% of pay from PTO if hours are available, floating holiday, or unpaid if not available; then For the remaining three (3) days of absence, he receives 100% of pay from the STD Plan. How Long STD Plan Benefits May Be Paid STD benefits may be paid up to the earlier of the date you recover or the date you have received benefits or a maximum of 1,000 hours. If you remain unable to work due to the same illness or injury after 1,000 hours of STD, benefits may become payable under the Long-Term Disability Plan (LTD), if approved. When Short-Term Disability Ends Short-term disability pay ceases at the earliest of the following: STD benefits may be paid up to the earlier of the date you recover, or the date you have received benefits for up to a maximum of 1,000 hours. If you remain unable to work due to the same illness or injury after 1,000 hours of STD, benefits may become payable under the Long-Term Disability Plan (LTD), if approved. You become eligible to apply for benefits under the Long-Term Disability Plan (LTD). At any time when you do not supply the necessary information to support absence from work due to disability. Refusal to attend an Independent Medical Evaluation. You have been released by a physician to return to work, whether you do so or not. The approved leave of absence stops for any reason. You are not actively at work due to a work stoppage. You separate from Company employment. STD and Holiday Pay If a paid holiday is observed while on STD, you will receive holiday pay for that day instead of STD benefits, provided you are on paid status the entire day prior to the holiday as well as the entire first scheduled workday after the holiday. STD and Family & Medical Leave (FMLA) STD benefits may be payable during an approved FMLA leave when an absence is attributed to your own serious health condition as defined in the Federal Family & Medical Leave Act (FMLA). (See Leave Programs section). Unless a state law allows otherwise, after the PTO and floating holiday period, STD benefits are not payable for: Parental leave to care for a child after birth (parental leave begins after any leave for temporary disability due to pregnancy ends) ABSENCE PAY AND LEAVE PROGRAMS (CT1) 10 JANUARY 2009

16 Placement for adoption or foster care of a child Leave to care for a family member with a serious health condition. Leave Application For any absence that is expected to exceed five (5) consecutive work days (40 hours) for the same or different disabilities or five (5) intermittent work days (40 hours) for the same disability, a Leave of Absence Application must be completed. See Leave Programs section. Exclusions You will not receive benefits under the STD Plan for any absence that is caused by the following: Occupational illness or injury Commission of or attempt to commit a felony, or to which a contributing cause was your being engaged in an illegal occupation; or criminal conduct War, or any act of war Willful self injury Abuse of Leave Benefits Misrepresentation of the facts with respect to any disability for which benefits may be claimed under this plan disqualifies you from such benefits and is just cause for disciplinary action up to and including termination. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 11 JANUARY 2009

17 SUPPLEMENTAL ACCIDENT PAY AND WORKERS COMPENSATION Introduction The Supplemental Accident Pay (SAP) Plan is designed to provide income up to 100% of regular base pay (unless a collective bargaining agreement states otherwise), when combined with your Workers Compensation benefit, when you incur either a bodily injury by accident or disease while in the course and scope of your employment and miss time from work. To be eligible for SAP benefits you must be a regular full-time or part-time employee. Casual and temporary employees are not eligible for SAP benefits. Cost of Coverage The Company pays the cost of the Supplemental Accident Pay (SAP) Plan. Payment of SAP Benefits SAP benefits are available up to a maximum of 1,040 hours for a single occupational disability. Once you have exhausted the maximum of 1,040 hours you will be placed on an unpaid status with the Company, no longer receiving SAP benefits. If you are eligible for Workers Compensation benefits, these benefits would remain payable. You cannot substitute PTO once your SAP benefits have been exhausted. Unless a collective bargaining agreement states otherwise, during an occupational disability leave, you will receive both SAP and Workers Compensation benefits. It is important to properly deduct/credit Workers Compensation benefits/ payments from your SAP and/or payroll check(s). You are not permitted to receive more than 100% of base pay, and appropriate adjustments will be made to your subsequent check(s). You must notify your Human Resources Manager if you are receiving more than 100% of your base pay immediately. Any overpayments made to you by receiving both SAP and Workers Compensation benefits in excess of 100% of base pay will be deducted from your SAP paycheck, regular paycheck or you must reimburse the Company the amount in excess of 100% of base pay. Your supervisor will contact the Human Resources Manager whenever you have missed three (3) or more days due to a work related illness or injury, and again when you return to work. Administration The Manager of Risk Insurance is responsible for providing Payroll with a report of Workers Compensation benefits paid. This report is due to Payroll on the Friday before payroll runs. Separate reports will be required from the Human Resources Department where employees work in monopolistic or self-insured (WA, OH, WY) states. Payroll will offset the SAP payment and in the case of overpayments, your regular paycheck by the amount of the Workers Compensation benefits. Therefore, you should actually receive a partial SAP benefit and the remainder of your base pay in the form of a Workers Compensation payment. Due to Workers Compensation waiting periods, the payment of SAP benefits and the Workers Compensation benefit reduction may never actually coincide. Since Workers Compensation benefits are non-taxable, it is the desire of the Company to have Workers Compensation payments made payable to the employee. The Payroll Department is ABSENCE PAY AND LEAVE PROGRAMS (CT1) 12 JANUARY 2009

18 responsible for making the adjustments. Sample Benefit Calculation and Offset The Supplemental Accident Pay (SAP) plan is designed to pay you 100% of your base pay (unless a collective bargaining agreement states otherwise) when combined with your Workers Compensation benefit. In most states, Workers Compensation benefits are designed to pay you 66 2/3% of your earnings subject to a limited maximum weekly wage. An example of an SAP benefit is as follows: Joe makes $1, every two weeks (gross). While driving a company vehicle, Joe is involved in an accident and is disabled. Joe s scheduled payment from the SAP benefit is $1, less his scheduled Workers Compensation payment. Joe s scheduled Workers Compensation benefit is $ per week or $1, every two weeks. Assuming the provisions and guidelines outlined above, Joe should receive a $ SAP check in addition to his $1, Workers Compensation check for a total of $1, (gross). Applicable taxes and other deductions, such as health insurance, will be taken from the $ check. Due to timing differences, Joe may actually receive a SAP check in the amount of $1, AND a Workers Compensation check in the amount of $1, This may also occur if Workers Compensation has only paid a partial payment. This constitutes an overpayment on the part of your SAP benefit. Joe should contact his Human Resources Manager immediately, and anticipate an appropriate deduction(s) on his next SAP or regular paycheck to account for the overpayment, and/or be prepared to reimburse the Company for the overpayment. Contact your Human Resources Manager if you have any questions regarding this and/or the receipt of Workers Compensation benefits or payment of SAP benefits. Workers Compensation Pay Plan Workers Compensation benefits provide income protection and medical expense reimbursement for compensable claims of employees who are injured or become ill due to their jobs. Pay while on an occupational disability leave varies according to state law. SAP benefits are offset by Workers Compensation benefits. Specific information on the percent of gross salary paid as income replacement is available from your Human Resources Manager. Medical expenses are paid for by the Company s Workers Compensation administrator. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 13 JANUARY 2009

19 LONG-TERM DISABILITY INSURANCE PLAN Introduction The Long-Term Disability (LTD) Plan provides partial income protection for you in case of loss of income due to a covered accidental bodily injury, sickness or pregnancy. LTD benefits are coordinated with Social Security and other sources of income to replace a portion of your predisability earnings. The LTD Plan is a fully insured plan. Every effort has been made to ensure that this summary accurately reflects the provisions contained in the group insurance policy. Since this is only a summary of the policy, it does not cover all details found in the policy. Should any discrepancy exist between the summary and the policy, the official group insurance policy on file with the insurance carrier is the controlling document and is binding upon all parties. If you are approved for LTD insurance you will receive a group insurance certificate containing a detailed description of the insurance coverage including the definitions, exclusions, limitations, reductions and terminating events. The controlling provisions will be in the employer s sponsored group policy. Neither the certificate nor the information presented in this booklet modifies the group policy or the insurance coverage in any way. If you have additional questions, please contact your human resources representative. The insurance carrier has full discretion and authority to determine eligibility for benefits and to construe and interpret all terms and provisions of the group insurance policy. Eligibility Unless a collective bargaining agreement states otherwise, you are eligible for the LTD Plan if you are a regular full-time employee with one (1) or more years of full-time service. Less than one (1) year of service, part-time, casual and temporary employees are not eligible for LTD benefits. Enrollment and When Coverage Begins You enroll for LTD insurance when you first start work. Your coverage will begin on the first day you complete one year of service as a full-time employee. If you are not capable of Active Work on the day before the scheduled effective date of your insurance, your coverage will be effective after you complete one full day of Active Work. Cost of Coverage The Company currently pays the cost of the Long-Term Disability Plan, unless a collective bargaining agreement states otherwise. What is a Disability Subject to the exclusions and maximum benefit period limitations, the LTD Plan covers disability caused by sickness, accidental bodily injury, mental illness, substance abuse, or pregnancy occurring while you are covered. The Plan defines disability as follows: During the benefit waiting period and the first 24 months you receive LTD benefits, disability means you are not able to perform with reasonable continuity the material duties of your occupation, and as a result you are earning less than 20% of your pre-disability earnings. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 14 JANUARY 2009

20 After the first 24 months of LTD benefits, disability means you are prevented from performing the material duties of any gainful occupation for which you are qualified by education, training or experience and in which you can be expected to earn at least 80% of your Predisability Earnings within twelve months following your return to work regardless of whether you are working in that or any other occupation. At all times, to be considered disabled, you must be under the care of a qualified licensed physician and must not engage in any occupation or work for wage or profit except as approved for the Plans Rehabilitative Employment benefit. You will not qualify for disability income if you fail to submit to any required medical examination or any other reasonable requirement necessary to prove the existence of any uninterrupted disability. Your Job while on LTD You remain on leave status with the Company while receiving LTD benefits. You are not guaranteed a position when your LTD benefits cease or when you are given a release to return to work. However, you are encouraged to apply for all job vacancies, which occur near where you live for which you are qualified and able to perform. Continuing Other Benefits while on LTD Leave Unless a collective bargaining agreement states otherwise, if you become disabled and begin receiving LTD benefits, you will be eligible to continue the active employee medical, dental and vision coverage (Basic AD&D and Voluntary AD&D benefits do not continue) for you and your eligible dependents by paying any required premiums. If you become disabled your basic and supplemental life insurance for you and your dependents may continue with premium remittance for supplemental life for you and your dependents up to 12 months. Your basic and supplemental life insurance may continue beyond 12 months if you are approved for waiver of premium with CenturyTel s group life insurance policy. Supplemental life insurance for your dependents will terminate at the end of 12 months. Your health coverage may continue until you are no longer receiving benefits from the LTD Plan. Your family s coverage will also end when your coverage ends. Health care coverage for covered dependents will also end when they no longer meet the Plan s eligibility requirements or discontinue making any required contributions. The Benefit Waiting Period The benefit waiting period is the period of time you must be disabled before benefits become payable. It is the last to be satisfied of the following: The first 180 consecutive days of any one period of disability; or With the exception of benefits required by state law, the expiration of any Company sponsored short-term disability benefits or salary continuation program. To receive LTD benefits, your claim for benefits must be approved by Standard Insurance Company. When Disability Benefits Begin You will be paid a monthly LTD benefit after you complete the benefit waiting period and your application for coverage is approved. The benefit waiting period is the first 180 days of each ABSENCE PAY AND LEAVE PROGRAMS (CT1) 15 JANUARY 2009

21 period of continuous disability. You must be under the regular care of a physician during and after the waiting period. Benefits accrue as of the first day after the benefit waiting period and are paid monthly. Benefit Amount The LTD benefit is equal to 65% of your monthly rate of basic earnings. The minimum monthly benefit will be the greater of $100, or 10% of the monthly benefit before the deduction of other income benefits. The maximum monthly benefit is $10,000. Calculation of Monthly Benefit If you are disabled after the benefit waiting period, your monthly benefits will be calculated as follows: Multiply your monthly rate of basic earnings by the benefit percentage (65%) up to the maximum benefit ($10,000); Subtract all other income benefits, see LTD Glossary. The result is your monthly benefit. Your monthly benefit, however, will not be less than the minimum monthly benefit (greater of $100 or 10% of the monthly benefit before the deduction of other income benefits). Changes in Your Monthly Benefit Your LTD benefit may increase or decrease on the date there is a change in your employment status or monthly rate of basic earnings. However, no increase in benefit will be effective unless on that date you are an active full-time employee; and are not absent from work due to being disabled. If you were so absent from work, the effective date of such increase will be deferred until you are actively at work for one full day. No change in your rate of basic earnings will become effective until the date the insurance company receives notice from the Company of the change. Changes in the Plan Any increase or decrease in coverage because of a change in the Plan will become effective on the date of the change, subject to the following limitations: The deferred effective date provision; and Pre-existing conditions limitations. Maximum Duration of Benefits Table Age When Disabled Prior to age 63 Age 63 Age 64 Age 65 Age 66 Benefits Payable To normal retirement age or 42 months, if greater To normal retirement age or 36 months, if greater To normal retirement age or 30 months, whichever is longer 24 months 21 months ABSENCE PAY AND LEAVE PROGRAMS (CT1) 16 JANUARY 2009

22 Age 67 Age 68 Age 69 and over 18 months 15 months 12 months Normal retirement age means the Social Security Normal Retirement Age as stated in the 1983 revision of the United States Social Security Act. It is determined by your date of birth as follows: Year of Birth Normal Retirement Age 1937 or before months months months months months 1943 through months months months months months 1960 or after 67 The above table shows the maximum duration for which benefits may be paid. All other limitations of the Plan will apply. Exclusions The Plan does not cover, and no benefit shall be paid for a disability: That is caused or contributed to by war or act of war (declared or not); Caused by your commission of or attempt to commit a felony, or to which a contributing cause was your active participation in a violent disorder or riot; Caused or contributed to by an intentionally self-inflicted injury, while sane or insane; Caused or contributed to by the loss of your professional license, occupational license or certification; You are not covered for a Disability caused or contributed by a Preexisting Condition or medical or surgical treatment of a Preexisting Condition unless, on the date you become Disabled, you: a. Have been continuously insured under the Group Policy for 12 months; and b. Have been Actively At Work for at least one full day after the end of that 12 months. Preexisting Condition means a mental or physical condition whether or not diagnosed or misdiagnosed: a. For which you have done or for which a reasonably prudent person would have done any of the following: ABSENCE PAY AND LEAVE PROGRAMS (CT1) 17 JANUARY 2009

23 i. Consulted a physician or other licensed medical professional; ii. Received medical treatment, services or advice; iii. Undergone diagnostic procedures, including self-administered procedures; iv. Taken prescribed drugs or medications; b. Which, as a result of any medical examination, including routine examination, was discovered or suspected. c. At any time during the 90-day period just before your insurance becomes effective. When Benefit Payments Cease Benefit payments cease as follows: The date you are no longer disabled; The date you fail to furnish proof, when requested, that you continue to be disabled; The date you are no longer under the regular care of a physician, or refuse to be examined by a physician, if such an examination is required; The date you die; The date determined from the maximum duration of benefits table; or The date your current monthly earnings exceed 80% of your indexed pre-disability earnings. Mental Illness, Substance Abuse and Other Limited Conditions Payment of LTD benefits is limited to 12 months during your entire lifetime for a Disability caused or contributed to by any one of the following or medical or surgical treatment of one or more of the following: Mental Disorders Substance Abuse Other Limited Conditions This is a 12 month combined limit for Mental Disorders, Substance Abuse and Other Limited Conditions. Mental Disorder Payment of LTD Benefits is limited to 12 months during your entire lifetime for a Disability caused or contributed to by Mental Disorders, or medical or surgical treatment of Mental Disorders. However, if you are confined in a Hospital solely because of a Mental Disorder at the end of the 12 months, this limitation will not apply while you are continuously confined. Mental Disorder means any mental, emotional, behavioral, psychological, personality, cognitive, mood or stress-related abnormality, disorder, disturbance, dysfunction or syndrome, regardless of cause (including any biological or biochemical disorder or imbalance of the brain) or the presence of physical symptoms. Mental Disorder includes, but is not limited to, bipolar affective disorder, organic brain syndrome, schizophrenia, psychotic illness, manic depressive illness, depression and depressive disorders, anxiety and anxiety disorders. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 18 JANUARY 2009

24 Substance Abuse Payment of LTD Benefits is limited to 12 months during your entire lifetime for a Disability caused or contributed to by Substance Abuse, or medical or surgical treatment of Substance Abuse. Substance Abuse means use of alcohol, alcoholism, use of any drug, including hallucinogens, or drug addiction. Hospital means a legally operated hospital providing full-time medical care and treatment under the direction of a full-time staff of licensed physicians. Rest homes, nursing homes, convalescent homes, homes for the aged, and facilities primarily affording custodial, educational, or rehabilitative care are not Hospitals. Other Limited Conditions Payment of LTD benefits is limited to 12 months during your entire lifetime for a Disability caused or contributed to by Other Limited Conditions, or medical or surgical treatment of Other Limited Conditions. Other Limited Conditions means: Chronic fatigue conditions (such as chronic fatigue syndrome, chronic fatigue immunodeficiency syndrome, post viral syndrome, limbic encephalopathy, Epstein-Barr virus infection, herpesvirus type 6 infection, or myalgic encephalomyelitis) Any allergy or sensitivity to chemicals or the environment (such as environmental allergies, sick building syndrome, multiple chemical sensitivity syndrome or chronic toxic encephalopathy) Chronic pain conditions (such as fibromyalgia, reflex sympathetic dystrophy or myofascial pain) Carpal tunnel or repetitive motion syndrome Temporomandibular joint disorder Craniomandibular joint disorder However, Other Limited Conditions does not include neoplastic diseases, neurologic diseases, endocrine diseases, hematologic diseases, asthma, allergy-induced reactive lung disease, tumors, malignancies or vascular malformations, demyelinating diseases, or lupus. Recurrent Disability Attempts to return to work as an active full-time employee during the benefit waiting period of 180 or more days, up to 30 such return-days are allowed and will not interrupt the benefit waiting period. Any day you were actively at work will not count towards the benefit waiting period. After the benefit waiting period, when a return to work as an active full-time employee is followed by a recurrent disability, and such disability is due to the same cause or related cause; and is within 180 days of the return to work, the period of disability prior to your return to work and the recurrent disability will be considered one period of disability. If you return to work as an active full-time employee for 180 days or more, any recurrence of a disability will be treated as a new disability. A new disability is subject to a new benefit waiting period and a new maximum duration of benefits. The term "period of disability" as used in this provision means a continuous length of time during which you are disabled under this plan. ABSENCE PAY AND LEAVE PROGRAMS (CT1) 19 JANUARY 2009