Alcatel-Lucent Long-Term Disability Plan Summary Plan Description- Management Employees Effective January 1, 2014

Transcription

1 Alcatel-Lucent Long-Term Disability Plan Summary Plan Description- Management Employees Effective January 1, 2014

2 Alcatel-Lucent Long-Term Disability Plan for Management Employees Disclaimer This is a summary of the benefits offered under the management plan design of the Alcatel-Lucent Long-Term Disability Plan for Management Employees (the Long-Term Disability Plan or LTD Plan or the Plan ) formerly the Alcatel-Lucent Long-Term Disability Plan for Management or LBA Employees. This summary is provided for informational purposes only and is intended to comply with Department of Labor requirements for Summary Plan Descriptions ( SPDs ). More detailed information about the Plan is provided in the official Long-Term Disability Plan document, a copy of which can be obtained by writing to the Plan Administrator (see Important Contacts, and Other Information). This summary is based on Plan provisions in effect as of January 1, 2014 and replaces all previous SPDs under the Plan. If there is any conflict between the information in this SPD and the Long-Term Disability Plan document, the Long-Term Disability Plan document will govern. Long-Term Disability Plan May Be Amended or Terminated The Company expects to continue the Long-Term Disability Plan but reserves the right to amend or terminate the Plan, in whole or in part, at any time by the resolution of the Board of Directors or its properly authorized designee. In addition, the Company does not guarantee the continuation of any longterm disability benefits during employment, at expiration of Short Term Disability benefits or at or during retirement nor does it guarantee any specific level of benefits or contributions. Questions regarding your benefits should be addressed as indicated in this SPD (see Important Contacts). Because of the many detailed provisions of the Long-Term Disability Plan, no one other than the personnel or entities identified in this SPD (see Important Contacts) is authorized to advise you as to your benefits. Neither Alcatel-Lucent nor the Plan can be bound by statements made by unauthorized personnel or entities. In the event of a conflict between any verbal information provided to you by an authorized resource and information in the official Long-Term Disability Plan document, the Long-Term Disability Plan document will govern. I Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

3 Alcatel-Lucent Long-Term Disability Plan for Management Employees HOW THIS SPD IS ORGANIZED THE PLAN IS ORGANIZED INTO AN APPENDIX A AND AN APPENDIX B. THIS SPD IS ALSO ORGANIZED INTO AN APPENDIX A AND AN APPENDIX B. YOU WILL ONLY BE ELIGIBLE FOR THE BENEFITS DESCRIBED UNDER EITHER APPENDIX A OR APPENDIX B. HOWEVER, YOU SHOULD STILL REVIEW THIS ENTIRE SPD TO ENSURE THAT YOU FULLY UNDERSTAND WHICH APPENDIX IS APPLICABLE TO YOU. PLEASE NOTE THAT THE DESCRIPTIONS PROVIDED IN APPENDIX A AND APPENDIX B OF THIS SPD APPLY SOLELY TO THAT APPENDIX IN WHICH THE DESCRIPTIONS ARE PROVIDED. GENERALLY SPEAKING, BUT EXPLAINED MORE FULLY IN THIS SPD: APPENDIX A IS APPLICABLE TO YOU IF: (1) YOU BEGAN TO RECEIVE BENEFITS UNDER THE PLAN BEFORE JANUARY 1, 2014 AND YOU ARE CURRENTLY RECEIVING BENEFITS UNDER THE PLAN, OR (2) YOU WISH TO APPLY FOR BENEFITS UNDER THE PLAN AND ON OR BEFORE JANUARY 1, 2014 YOU WERE RECEIVING SHORT TERM DISABILITY BENEFITS UNDER THE ALCATEL-LUCENT SHORT TERM DISABILITY PLAN ( STD PLAN ) (OR COMPLETING AN APPLICABLE ELIMINATION PERIOD TO RECEIVE SHORT TERM DISABILITY BENEFITS) UNDER THE STD PLAN AND YOUR HAVE RECEIVED THE MAXIMUM AMOUNT OF SICKNESS DISABILITY BENEFITS THAT ARE AVAILABLE TO YOU. APPENDIX B IS APPLICABLE TO YOU IF: YOU BEGAN TO RECEIVE SHORT TERM DISABILITY BENEFITS UNDER THE STD PLAN FOR A SICKNESS THAT BEGAN ON OR AFTER JANUARY 1, 2014 AND YOU HAVE RECEIVED THE MAXIMUM AMOUNT OF SHORT TERM DISABILITY BENEFITS THAT ARE AVAILABLE TO YOU. Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

4 Alcatel-Lucent Long-Term Disability Plan for Management Employees APPENDIX A Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

5 Alcatel-Lucent Long-Term Disability Plan for Management Employees TABLE OF CONTENTS APPENDIX A PAGE DISCLAIMER... INSIDE FRONT COVER SECTION A. INTRODUCTION... 1 SECTION B. THE LONG-TERM DISABILITY PLAN HIGHLIGHTS... 2 SECTION C. ELIGIBILITY AND PARTICIPATION... 4 WHO IS ELIGIBLE 4 HOW TO ENROLL 5 WHEN COVERAGE BEGINS 5 HOW TO BECOME ELIGIBLE FOR BENEFITS 5 WHEN ELIGIBILITY ENDS 5 HOW TO APPLY FOR LTD PLAN BENEFITS 6 HOW LONG LTD PLAN BENEFITS LAST 6 COST 7 SECTION D. LONG-TERM DISABILITY BENEFITS... 8 HOW BENEFITS ARE PAID 8 OTHER SOURCES OF DISABILITY INCOME 8 ABOUT SOCIAL SECURITY DISABILITY BENEFITS 9 EMPLOYMENT WHILE YOU ARE DISABLED 9 IF YOU BECOME DISABLED AGAIN 10 WHAT IS NOT COVERED 10 SECTION E. TERMS YOU SHOULD KNOW SECTION F. IMPORTANT CONTACTS SECTION G. OTHER IMPORTANT INFORMATION COVERAGE UNDER OTHER COMPANY PLANS 14 EMPLOYMENT STATUS ERROR! BOOKMARK NOT DEFINED. BENEFITS CANNOT BE ASSIGNED 14 LTD PLAN DOCUMENTS GOVERN 14 LTD PLAN FUNDING AND PAYMENT OF BENEFITS 14 LTD PLAN MAY BE AMENDED OR TERMINATED 15 LTD PLAN ADMINISTRATOR 15 SECTION H. CLAIM REVIEW AND APPEAL PROCEDURES Claim Review Procedures SECTION I. YOUR RIGHTS UNDER ERISA ASSISTANCE WITH YOUR QUESTIONS 19 SECTION J. ADMINISTRATIVE INFORMATION... I COVERAGE UNDER OTHER COMPANY PLANS 40 EMPLOYMENT STATUS ERROR! BOOKMARK NOT DEFINED. BENEFITS CANNOT BE ASSIGNED 40 LTD PLAN DOCUMENTS GOVERN 40 LTD PLAN FUNDING AND PAYMENT OF BENEFITS 40 PLAN FUNDING AND PAYMENT OF BENEFITS 40 LTD PLAN MAY BE AMENDED OR TERMINATED 40 LTD PLAN ADMINISTRATOR 41 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

6 Alcatel-Lucent Long-Term Disability Plan for Management Employees YOUR RIGHTS UNDER ERISA ASSISTANCE WITH YOUR QUESTIONS 43 ADMINISTRATIVE INFORMATION Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

7 APPENDIX A Section A. Introduction Section A. Introduction Here s your summary of the key features of Appendix A of the Alcatel-Lucent Long-Term Disability Plan (LTD Plan). The Plan, in combination with other benefits provided by the Company and/or government, is designed to extend benefit pay should an Eligible Employee continue to remain out of work due to Disability and continue to meet the Disability criteria after exhausting 26 weeks of Alcatel-Lucent Short Term Disability Plan (Short Term Disability) benefits. 1 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

8 APPENDIX A Section B. The Long-Term Disability Plan Highlights Section B. The Long-Term Disability Plan Highlights This is a summary of the key features of the LTD Plan. LTD Plan Feature Definition of Long-Term Disability Eligibility Benefits When Coverage Begins When Coverage Ends Summary You must be unable to do your own job or a job at the Participating Company for which you are qualified, based on training, education or experience for a one-year period commencing immediately after 26 weeks of Short Term Disability Benefits have been paid. Thereafter, you must be unable to do any job for any employer for which you are qualified, or may reasonably become qualified by training, education or experience, other than a job that pays less than 60% of your annual base salary as of your first day of absence under the Alcatel-Lucent Short Term Disability Plan. You must have been on the Short Term Disability Plan for 26 weeks of paid Short Term Disability benefits immediately prior to becoming eligible under the Long-Term Disability Plan. You are eligible to apply for benefits under the Long-Term Disability Plan if you are a regular full-time or regular part-time employee who works for a Participating Company and you are not covered by any other company provided long-term disability plan and meet the other requirements in Section C. If you are an Eligible Employee or LTD Participant, you must satisfy the definition of Disability to receive benefits. The Company provides LTD Plan coverage at no cost to you. This coverage, when combined with other sources of disability income, replaces up to 60% of your annual base salary while you remain Disabled. If approved for the benefit, Long-Term disability benefits begin after 26 weeks of short term disability benefits are paid under the Alcatel-Lucent Short Term Disability Plan (Short Term Disability or STD Plan). Long-Term disability benefits end at the earliest of the following: The date on which you no longer satisfy the definition of Disability under the Plan as determined by the Claims Administrator; You reach the maximum time limit for receiving benefits (see 2 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

9 APPENDIX A Section B. The Long-Term Disability Plan Highlights Other Sources of Disability Income How Long LTD Benefits Last ); The date on which you are able to return to work for an employer other than the Participating Company in a job that pays 60 percent or more of your Eligible Pay at the time when you became Disabled; Termination of the Plan; or Upon the death of the LTD Participant. Benefits are reduced by income you are eligible to receive from other sources such as Social Security Administration, any companysponsored pension benefit and workers compensation (see How Benefits Are Paid ). 3 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

10 APPENDIX A Section C. Eligibility and Participation Section C. Eligibility and Participation Who Is Eligible You are eligible to apply for benefits under Appendix A of the LTD Plan if: You are a regular full-time or part-time regular employee who works for a Participating Company as provided in Section E, and You are not covered by any other long-term disability program provided by Alcatel- Lucent or any of its affiliates, and one of the following applies to you: (1) You were absent from work on the account of sickness or injury, as classified by the Company, and such first date of absence for such sickness was on or before December 31, 2013 and continued for seven consecutive days (even if such seven consecutive days began in year 2013 and ended in year 2014), which resulted in you applying short term disability benefits under the STD Plan and receiving the maximum amount of short term disability benefits allowed under the STD Plan; or (2) You received short term disability benefits under the STD Plan for a portion of year 2013 but returned to work prior to the end of However, during year 2014 and within 13 weeks of the your return to work following your receipt of short term disability benefits in year 2013, you are again absent from work and you exhaust short term disability benefits under the STD Plan; or (3) You received short term disability benefits for a portion of year 2013 and such short term disability benefits continued into 2014 but you returned to work in However, during the year 2014 and within 13 weeks of your return to work following your receipt of Short Term Disability Benefits in year 2014, you are again absent from work and exhaust short term disability benefits under the STD Plan. If you are on an approved leave of absence, your eligibility is subject to applicable law and the Alcatel-Lucent leave of absence policy. 4 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

11 APPENDIX A Section C. Eligibility and Participation Note that individuals who are not paid from the U.S. payroll of a Participating Company, who are employed by an independent company (such as but not limited to a nonemployee worker or temporary staffing agency, consulting firm and outside vendors), or whose services are rendered pursuant to an agreement excluding participation in benefit plans, are not eligible to participate in the LTD Plan. How to Enroll You do not have to enroll. If you meet the eligibility requirements under the Plan, you will be eligible for the coverage under the Plan as of your first day of work at a Participating Company. When Coverage Begins As an Eligible Employee, your coverage under the LTD Plan is effective on your first day of employment with a Participating Company. How to Become Eligible for Benefits To receive LTD Plan benefits, you do not have to be hospitalized or confined to your home, but you must meet the following requirements: You must be considered Disabled under the LTD Plan. This may differ from being considered disabled for purposes of the Alcatel-Lucent Short Term Disability Plan, any Alcatel-Lucent pension benefits you may be eligible to receive, workers compensation, Social Security or other benefits you might be entitled to under a private insurance plan. You must have received and exhausted the full 26 weeks of short term disability benefits under the Alcatel-Lucent Short Term Disability Plan. When Eligibility Ends Your eligibility for LTD Plan benefits ends upon your death or when you are no longer employed by the Company for any reason other than for a Disability covered under the LTD Plan. How to Qualify for LTD Plan benefits: You must be unable to do your own job or a job at the Participating Company for which you are qualified, based on training, education or experience for a one-year period at the expiration of your 26 weeks of Short Term Disability benefits. Thereafter, you must be unable to do any job for any employer for which you are qualified or may reasonably become qualified by training, education or experience, other than one that pays less than 60 percent of your annual base salary as of your first day of absence under the Alcatel-Lucent Short Term Disability Plan. At all times during your Disability, you must be under a physician s care and following the recommended care and course of treatment to receive benefits. 5 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

12 APPENDIX A Section C. Eligibility and Participation You will be required to submit proof of your continuing Disability to the Claims Administrator from time to time. Failure to do so on a timely basis will cause your benefits to cease. The Claims Administrator will determine the extent of your Disability based on medical evidence and reserves the right to have a physician of its choice examine you. If you are requested by the Claims Administrator to be examined by a physician of the Claims Administrator s choice and you do not consent or fail to appear at said examination, your benefit payments may be immediately suspended until such examination takes place and the Claims Administrator s physician certifies the Disability. How to Apply for LTD Plan Benefits If you are disabled pursuant to the requirements for short-term disability and you are receiving short term disability benefits, you will receive long-term disability forms for you and your physician to complete before the end of the period for which benefits are payable under the Short Term Disability Plan. You may also need to be examined by a physician of the Claims Administrator s choice. The Claims Administrator will then determine whether you are Disabled and eligible for LTD Plan benefits. You must apply for benefits within 90 days of the expiration of your benefits under the Short Term Disability Plan. If you fail to apply within 90 days following the last day of short term disability benefits, your case may be determined to be inactive. This may result in a permanent denial of benefits. How Long LTD Plan Benefits Last If you are Disabled, LTD Plan benefits begin after you have received 26 weeks of short term disability benefits under the Alcatel-Lucent Short Term Disability Plan. LTD Plan benefits then continue until the earliest of these events: You are no longer Disabled as defined under the LTD Plan; You reach the maximum time limit for receiving benefits (see the chart below); You are able to return to work for an employer that pays more than 60% of your eligible annual base salary at the time you became Disabled; Termination of the Plan; or Upon the death of the LTD Participant. 6 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

13 APPENDIX A Section C. Eligibility and Participation Age When Long-Term Disability Begins 61 or younger To age /2 years 63 2 years /2 years 65 1 year 66 3/4 year 67 1/2 year 68 1/4 year 69 and older Ineligible Maximum Duration of LTD Plan Benefits Cost Your Participating Company pays the full cost of your Long-Term Disability coverage. 7 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

14 APPENDIX A Section D. Long-Term Disability Benefits Section D. Long-Term Disability Benefits How Benefits Are Paid Long-term disability benefits are paid in combination with other sources of disability income except disability income from individual insurance you have purchased. Your income from other sources together with your plan benefit would equal 60 percent of your Annual Base Salary. For example: If Your Income From Other Sources Is: LTD Plan Coverage Pays: 30% of Annual Base Salary 30% of Annual Base Salary 50% of Annual Base Salary 10% of Annual Base Salary 60% or more of Annual Base Salary 0% of Annual Base Salary Important! Because the Participating Company pays the full cost of your long-term disability coverage, any long-term disability benefits you receive from the LTD Plan are taxable. Other Sources of Disability Income The LTD Plan is designed to provide benefits in conjunction with other sources of disability income to provide your total disability income. The LTD Plan considers all of your sources of disability income (except disability income from a private insurance plan), and makes up the difference after benefits that you are eligible to receive from other sources are determined, such as: Primary Social Security benefits (payable to you, even if not actually received); Workers Compensation or any similar benefits; Any state or federal disability benefits except veteran s benefits; and Any Alcatel-Lucent pension benefits you may be eligible to receive, even if not actually received, at the time your long-term disability benefits begin. If the amount of your disability income from other sources increases after you begin receiving benefits from the LTD Plan, your LTD Plan benefits will not be further reduced unless the increase in other benefits is retroactive to the start of your disability. 8 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

15 APPENDIX A Section D. Long-Term Disability Benefits About Social Security Disability Benefits In order to receive maximum disability benefits, you need to apply for Social Security benefits as follows: Call Social Security to learn whether you are eligible for Social Security Disability Insurance and how to apply for benefits. Your LTD Plan benefits may be reduced by your estimated Social Security benefit even if you aren t actually receiving Social Security disability benefits. Only your primary Social Security benefits reduce your LTD Plan benefits. Social Security benefits of a spouse or other family member won t affect your benefit. If your Social Security benefit is determined after your LTD Plan benefit begins, your LTD Plan benefit will be recalculated retroactively. If this recalculation results in an overpayment, you must repay the difference to the Claims Administrator. You may either make direct payments to the Claims Administrator or have your monthly LTD Plan payments reduced until the overpayment is recovered. If Social Security denies you benefits, the LTD Plan may require you to file an appeal with Social Security. If you have been notified to file an appeal and you have not done so, your monthly LTD Plan benefits may be reduced by the amount of the Social Security benefits you could be receiving had your appeal been successful. If you are not eligible for a Social Security Disability Insurance Benefit (DIB), LTD Plan benefits will not be offset. However, your LTD Plan benefit will be reduced by your Old Age Insurance Benefit starting as soon as you are eligible to receive it. If you choose not to start your Social Security Old Age Insurance Benefit until later, the Claims Administrator will reduce your LTD Plan benefit by an estimated Social Security Old Age Insurance Benefit amount. Please note that the standard for disability under the LTD Plan is different than under Social Security. See Eligibility for Benefits for more information. Employment While You Are Disabled If you are able to find and accept suitable employment while you are Disabled, you may still receive LTD Plan benefits for your disability dependent upon whether you qualify for benefits under the LTD Plan. Your earnings must be less than 60 percent of your annual base salary and you must continue to meet the LTD Plan s definition of Disability. If you are able to work while you are Disabled for an employer other than the Company, in a job that pays 60 percent or more of your previous annual base salary, you are no longer covered by the LTD Plan. In applying for and accepting benefits under the LTD Plan you are agreeing to notify the company of any employment you may accept and the amount you are paid while out due 9 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

16 APPENDIX A Section D. Long-Term Disability Benefits to Disability. Failure to do so may result in your benefits being stopped and you having to repay benefits to the LTD Plan. If You Become Disabled Again If you recover from your Disability and then become disabled again, benefits will be determined as described below: If you are rehired and you return to work for a Participating Company for fewer than 13 weeks and become Disabled again for purposes of the LTD Plan, LTD Plan benefits will begin immediately. If you are rehired and you return to work for a Participating Company for 13 weeks or more and become disabled again (as determined under the Short Term Disability Plan), LTD Plan benefits will not begin again until you have exhausted 26 weeks of Short Term Disability benefits. What Is Not Covered The LTD Plan does not cover disabilities caused or contributed to by: Your commission of a felony; Military service; War or any act of war, declared or undeclared; Your active participation in a riot, insurrection, rebellion or civil commotion; or Intentionally self-inflicted injury while sane or insane. 10 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

17 APPENDIX A Section E. Terms You Should Know Section E. Terms You Should Know There are several words and phrases that have a specific meaning under the LTD Plan. This section explains these terms so that you can better understand your benefits. These terms are capitalized throughout the SPD to let you know they re defined here. Disabled or Disability means the Eligible Employee or LTD Participant must be unable to do his or her own job or a job at the Participating Company for which he or she is qualified, based on training, education or experience for a one-year period immediately following the expiration of 26 weeks of paid Short Term Disability benefits. Thereafter, the Eligible Employee or LTD Participant must be unable to do any job for any employer for which he or she is qualified, or may reasonably become qualified by training, education or experience, other than one that pays less than 60 percent of the Eligible Employee s or the LTD Participant s annual base salary as of the first day of absence under the Alcatel-Lucent Short Term Disability Plan. The Eligible Employee must have been on the Alcatel-Lucent Short Term Disability Plan for 26 weeks of paid Alcatel-Lucent Short Term Disability Plan benefits immediately prior to Long-Term Disability. Eligible Employee(s): a regular, full-time or part-time employee who works for a Participating Company and is not covered under a collective bargaining agreement. Employees shall not include interns, co-op participants, consultants, non-employee workers, leased or temporary employees. Note that individuals who are not paid from the payroll of a Participating Company, who are employed by an independent company (such as but not limited to a non-employee worker or temporary staffing agency, consulting firm and outside vendors) or whose services are rendered pursuant to an agreement excluding participation in benefit plans are not eligible to participate in the LTD Plan. LTD Participant means a former Eligible Employee who is and continues to be Disabled, as determined by the Claims Administrator. Participating Company(ies): the companies that participate in the LTD Plan, as listed below. As of January 1, 2014, Participating Companies are: Alcatel-Lucent USA Inc. Alcatel-Lucent Investment Management Corporation LGS Innovations LLC LGS Innovations International Inc. 11 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

18 APPENDIX A Section E. Terms You Should Know Note: Effective April 1, 2014, each of LGS and LGS Innovations LLC is no longer a participating company. Short Term Disability Plan (STD)/ (STD PLAN)/Alcatel-Lucent Short Term Disability Plan: Alcatel-Lucent Short Term Disability Plan, which provides short term disability benefits for Eligible Employees. 12 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

19 APPENDIX A Section F. Important Contacts Section F. Important Contacts Contact/Service Provided Claims Administrator Approves or denies claims. Address/Telephone Number CIGNA P.O. Box Pittsburgh, PA Or CIGNA 1600 West Carson St. Pittsburgh, PA Plan Administrator Responsible for Interpretation of Plan Design Alcatel-Lucent Disability and Leave Administrator Acts as Liaison to Claims Administrator and Telephone: or Alcatel-Lucent USA Inc. Long-Term Disability Plan Administrator Alcatel-Lucent Room 2B Mountain Ave. Murray Hill, NJ Contact the Disability and Leave Administrator by calling the Human Resources Customer Center Effective April 14, 2014, name changed to HR at Your Service Provides Employees who have exhausted Short Term Disability with Information on LTD Process Performs Initial Assessment of Eligibility for Disability Refers Claims to Claims Administrator, as appropriate 13 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

20 APPENDIX A Section G. Other Important Information Section G. Other Important Information This section contains other important information about the LTD Plan and other details required under the terms of a federal law, the Employee Retirement Income Security Act of 1974, as amended (ERISA). Employment Status If you are Disabled for purposes of the LTD Plan, your employment with the Company automatically ends after you receive the maximum amount of short term disability benefits available under the Short Term Disability Plan. There is no guarantee of reemployment after this period. Coverage under Other Company Plans Employee benefits, such as medical, dental and life insurance, will cease on the last day of the month in which your employment ends due to expiration of STD benefits. For information on your rights to continue or convert these benefits, including deadlines for doing so, please review the Summary Plan Descriptions (SPDs) for those plans, or call the Alcatel-Lucent Benefits Center (ALBC) at If you contact the ALBC, explain to the representative that your employment is terminating due to expiration of your STD benefits. Benefits Cannot Be Assigned You cannot assign or transfer benefits received under the LTD Plan. However, the Alcatel-Lucent LTD Plan is required to comply with qualified federal tax levies. LTD Plan Documents Govern This SPD is designed to describe the Alcatel-Lucent Long-Term Disability Plan in easy-tounderstand terms. It is shorter and less technical than the legal LTD Plan documents. However, it is the LTD Plan documents and contract that determine your rights under the LTD Plan. In all instances, the LTD Plan documents will govern. LTD Plan documents include the official LTD Plan text and any applicable contract terms, which specifically relate to your benefit claim. LTD Plan Funding and Payment of Benefits Unless borne by participants plan benefits are funded by Alcatel-Lucent USA Inc., LTD Plan benefits are paid directly by CIGNA, P.O. Box 22325, Pittsburgh, PA, 15222, from funds made available for this purpose by the company. LTD Plan benefits are not insured. CIGNA provides only administrative services. 14 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

21 APPENDIX A Section G. Other Important Information LTD Plan May Be Amended or Terminated The Company expects to continue the LTD Plan indefinitely, but reserves the right to amend or terminate the LTD Plan at any time by the resolution of the Board of Directors or a properly authorized designee. In addition, the Company doesn t guarantee the continuation of any LTD Plan benefits during employment or at or during retirement, nor does it guarantee any specific level of benefits or contributions. LTD Plan Administrator The LTD Plan Administrator has the full discretionary authority and power to control and manage all aspects of the LTD Plan, to determine eligibility for LTD Plan benefits, to interpret and construe the terms and provisions of the LTD Plan, to determine questions of fact and law, to direct disbursements, and to adopt rules for the administration of the LTD Plan as deemed appropriate in accordance with the terms of the LTD Plan and all applicable laws. The Plan Administrator may allocate or delegate its responsibilities for the administration of the LTD Plan to others and employ others by which to carry out or render advice with respect to its responsibilities under the LTD Plan, including discretionary authority to interpret and construe the terms of the LTD Plan, to direct disbursements and to determine eligibility for LTD Plan benefits. 15 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

22 APPENDIX A Section H. Claim Review and Appeal Procedures Section H. Claim Review and Appeal Procedures Claim Review Procedures Employees and their beneficiaries (if applicable) eligible for a benefit under the Long-Term Disability Plan (LTD Plan), or any individual duly authorized by them, have the right under ERISA and the LTD Plan to file a claim for benefits. Send all claims for LTD Plan matters to the Claims Administrator (see Important Contacts). All claims for benefits under the Plan must be brought within 90 days of the date on which such claim accrued. All claims brought after the 90-day period will be time barred. The procedure for filing a claim is described below. If a claim is denied, in whole or in part, you will receive a written notice of the Claims Administrator s decision, including the specific reason(s) for the decision, reference to the LTD Plan provisions on which the decision is based, a description of any additional information necessary to perfect the claim and a description of the LTD Plan s review procedures, along with a statement of your rights under Section 502(a) of ERISA, within 45 days after the Claims Administrator receives the claim. If the Claims Administrator needs more than 45 days to make a decision, a representative will notify you in writing within the initial 45-day period and explain why more time is required. An additional 30 days (for a total of 75 days) may be taken if the Claims Administrator sends this notice. The extension notice will show the date by which the Claims Administrator s decision will be sent. If, prior to the end of the first 30-day extension period, the Claims Administrator determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within that extension period, the period for rendering a decision may be extended for up to an additional 30 days (for a total review period of 105 days), provided that the Claims Administrator notifies you, prior to the expiration of the first 30-day extension period, of the circumstances requiring the extension and the date by which the Claims Administrator expects to render a decision. If you do not hear from the Claims Administrator within any of the appropriate time frames as described above, your claim will be deemed to have been denied. The following appeal procedures give the rules for appealing a denied claim. 16 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

23 APPENDIX A Section H. Claim Review and Appeals Procedure Appeal Procedures If your claim for benefits is denied, in whole or in part, an appeal process is available to you. You or your authorized representative may appeal in writing within 180 days after the denial is received. Send the appeal directly to CIGNA P.O. Box Pittsburgh, PA If you or your representative submits a written request for review of a denied claim, you have the right to: Review pertinent LTD Plan documents, which you can obtain free of charge, and Send to CIGNA Appeals a written statement of the issues and any other documents in support of the claim for benefits or other matter under review. CIGNA Appeals will conduct a review and make a final decision within 45 days after receiving the written request for review. If special circumstances cause CIGNA Appeals to need more than 45 days to make a decision, a representative will notify you in writing within the initial 45-day period and explain why more time is required. An additional 45 days, for a total of 90 days, may be taken if CIGNA Appeals sends this notice. The decision will be in writing and will include the specific reasons for the decision, reference to specific LTD Plan provisions on which the decision was based, a statement that you are entitled to receive upon request and free of charge copies of all documents and information relevant to your claim, and a statement of your rights to bring an action under Section 502(a) of ERISA. If CIGNA Appeals does not respond within 45 days (or 90 days if more time is required), your claim will be deemed to have been denied, and you will be considered to have exhausted your administrative remedies under the LTD Plan and will be entitled to pursue a remedy under Section 502(a) of ERISA. CIGNA Appeals will serve as the final review committee under the LTD Plan. Decisions by CIGNA Appeals will be conclusive and binding on all parties and not subject to further review. Also, please note that applicable law and the LTD Plan s provisions require you to pursue all your claim and appeal rights on a timely basis before seeking any other legal recourse regarding claims for benefits. If you do not hear from the Claims Administrator or CIGNA Appeals within any of the appropriate time frames as described above, you will be considered to have exhausted your administrative remedies under the LTD Plan and will be entitled to pursue a remedy under Section 502(a) of ERISA. 17 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

24 APPENDIX A Section I. Your Rights Under ERISA Section I. Your Rights Under ERISA As a participant in the Alcatel-Lucent Long-Term Disability (LTD) Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended (ERISA). These rights are described in this Section. ERISA provides that all Plan participants are entitled to: Examine, without charge, at the Plan Administrator s office and at other specified locations, such as worksites, all Plan documents and, if applicable, insurance contracts, and a copy of the latest annual report (Form 5500 Series) filed by the Plan 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 copies of the latest annual report (Form 5500 Series) and updated SPD. The administrator may make a reasonable charge for the copies. In addition to establishing rights for Plan participants, ERISA imposes certain duties on the people responsible for the operation of a Plan. The people who operate your Plan, called fiduciaries, have a duty to do so prudently and in the interest of all participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to keep you from obtaining a welfare benefit or exercising your ERISA rights. If your claim for a benefit is denied, 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 administrator. 18 Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

25 APPENDIX A Section I. Your Rights Under ERISA 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. 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. Assistance With Your Questions 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, United States Department of Labor, listed in your telephone directory, or write to: Division of Technical Assistance and Inquiries Employee Benefits Security Administration United States Department of Labor 200 Constitution Avenue N.W. Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

26 APPENDIX A Section J. Administrative Information Section J. Administrative Information Plan Name Plan Sponsor Type of Administration Plan Administrator The official plan name is the Alcatel-Lucent Long-Term Disability Plan. The Plan Sponsor is: Alcatel-Lucent USA Inc Mountain Ave. Room 2B-410 Murray Hill, NJ The LTD Plan is administered by Alcatel-Lucent on a contract administration basis with CIGNA, which has the right to grant and deny claims for benefits under the LTD Plan and to review, on appeal, claims it has denied. The Plan Administrator is: Long-Term Disability Plan Administrator Alcatel-Lucent Mountain Ave., Room 2B-410 Murray Hill, NJ Claims Administrator CIGNA, P.O. Box Pittsburgh, PA Or CIGNA, 1600 West Carson St. Pittsburgh, PA You also may call or Agent for Service of Legal Process Plan Records and Plan Year Type of Plan Direct any process of legal service regarding a claim for benefits to the Claims Administrator. All other legal actions should be directed to Alcatel-Lucent. The LTD Plan and all of its records are kept on a calendaryear basis, beginning January 1 and ending December 31 of each year. The LTD Plan is considered a welfare benefit plan under the Employee Retirement Income Security Act of 1974, as amended (ERISA). i Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

27 APPENDIX A Section J. Administrative Information Plan Number The Plan Number for the Long-Term Disability Plan is 516. Employer Identification Number The Employer Identification Number is ii Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

28 APPENDIX B i Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

29 YOUR BENEFIT PLAN Alcatel-Lucent USA Inc. Management Employees Disability Income Insurance: Long Term Benefits Certificate Date: January 1, 2014 ii Effective January 1, 2014 This summary plan description is intended for Eligible Employees under the Alcatel-Lucent Long-Term Disability Plan for Management Employees. In the case of a discrepancy between this Summary Plan Description and the official plan document for the Alcatel-Lucent Long-Term Disability Plan for Management Employees, the official plan document shall control.

30 Alcatel-Lucent USA Inc. 600 Mountain Avenue, Room 2B410 Murray Hill, NJ TO OUR EMPLOYEES: All of us appreciate the protection and security insurance provides. This certificate describes the benefits that are available to you. We urge you to read it carefully. Alcatel-Lucent USA Inc.

31 Metropolitan Life Insurance Company 200 Park Avenue, New York, New York CERTIFICATE OF INSURANCE Metropolitan Life Insurance Company ( MetLife ), a stock company, certifies that You are insured for the benefits described in this certificate, subject to the provisions of this certificate. This certificate is issued to You under the Group Policy and it includes the terms and provisions of the Group Policy that describe Your insurance. PLEASE READ THIS CERTIFICATE CAREFULLY. This certificate is part of the Group Policy. The Group Policy is a contract between MetLife and the Policyholder and may be changed or ended without Your consent or notice to You. Policyholder: Group Policy Number: Type of Insurance: Alcatel-Lucent USA Inc G Disability Income Insurance: Long Term Benefits MetLife Toll Free Number(s): For Claim Information THIS CERTIFICATE ONLY DESCRIBES DISABILITY INSURANCE. THE BENEFITS OF THE POLICY PROVIDING YOU COVERAGE ARE GOVERNED PRIMARILY BY THE LAWS OF A STATE OTHER THAN FLORIDA. THE GROUP INSURANCE POLICY PROVIDING COVERAGE UNDER THIS CERTIFICATE WAS ISSUED IN A JURISDICTION OTHER THAN MARYLAND AND MAY NOT PROVIDE ALL THE BENEFITS REQUIRED BY MARYLAND LAW. WE ARE REQUIRED BY STATE LAW TO INCLUDE THE NOTICE(S) WHICH APPEAR ON THIS PAGE AND IN THE NOTICE(S) SECTION WHICH FOLLOWS THIS PAGE. PLEASE READ THE(SE) NOTICE(S) CAREFULLY. GCERT2000 fp 1