Short Term Disability

Transcription

1 Short Term Disability General Information If you become ill or injured and are unable to work, the Hitachi Data Systems US Benefits Program can help protect you financially. The following plan has been designed to protect your income for short-term absences and longer periods of disability: Short-Term Disability (STD) Details about the plan, including under what circumstances benefits are paid, are described in this section. Who Is Eligible You are eligible to participate in the STD Plan on the first day you are actively employed on the Company's U.S. payroll and are not part of a collective bargaining unit. Although you are eligible on the first day of employment, if you have been employed for less than 90 days on the date you become disabled, you will receive a reduced benefit (described later under Short Term Disability - Coverage Amount ). If you choose not to participate in STD and wish to do so at a later day, you must wait until the next open enrollment period. You cannot enroll mid-year. Note: If you are receiving disability benefits, you will generally be considered to be on a leave of absence and, therefore, no longer an active employee. For information about leaves and their affect on benefits, see Leaves Of Absence. The Cost of Coverage Coverage under the Short-Term Disability (STD) is paid for completely by participating employees. If you are eligible to participate in the STD plan and choose to do so, contributions for STD coverage will be deducted from your pay on an after-tax basis. (Note that disability coverage is mandatory in California, New Jersey, New York, Rhode Island, Hawaii and Puerto Rico; employees living in those states must comply with mandated disability coverage in accordance with state laws.) Because you pay for STD coverage on an after-tax basis, any disability benefits you receive will not be taxed. Short-Term Disability In general, short-term disability (STD) coverage pays a percentage of your weekly compensation if you are disabled and unable to work. Benefits under the Hitachi Data Systems Short-Term Disability (STD) Plan begin on the earliest of:

2 1. The eighth (8th) day of Disability, provided you have been examined by or are under the care of a Physician during some portion of that eight-day period; 2. the first (1st) full day of Hospital Confinement; or 3. the first (1st) day of treatment in a Surgical Clinic or Surgical Unit of a hospital, provided you are disabled for a period of at least eight (8) days as a result of the condition for which treatment was rendered. Successive periods of Disability separated by less than fourteen (14) calendar days of continuous Active Employment at the Participant's normal work schedule will be considered one period of Disability, unless the subsequent Disability is due to an illness or injury found by the Plan Administrator to be entirely unrelated to the cause of the previous Disability and commences after return to Active Employment with the Company for at least one day. Benefits may continue until your 365th day of disability. If you are still disabled after 365 days, you are eligible for Long Term Disability (LTD) benefits, underwritten by Lincoln Financial. Please refer to your Lincoln Financial LTD Certificate for details. Mandatory STD Coverage for California Employees The state of California mandates that all employees have a minimum level of short-term disability insurance. As a result of this mandate, employers have a choice of offering the state program or its own program as long as the employer's program is equal to or better than the state's program. Through the HDS California STD Plan, HDS offers similar benefits to those in the Company s STD Plan, but in accordance with California requirements. All California employees will automatically be enrolled in the HDS California STD Plan. Contact HDS Benefits Direct at for more information. Additional Mandated Coverage for New Jersey, New York and Rhode Island Employees Employees who live in these states are enrolled automatically in the state-mandated short-term disability program. The cost of this coverage is paid through after-tax payroll deductions. Because the HDS STD Plan offers greater coverage than the New Jersey, New York, Rhode Island or Puerto Rico state plans, employees in these areas may also choose to participate in the HDS STD Plan. Benefits under the HDS STD Plan will be reduced by any benefits paid under any state STD program. Coverage Amount The HDS STD Plan pays 80 percent of weekly earnings up to a maximum benefit of $3,100.00, subject to increase for participation in certain rehabilitation programs and to reduction if you receive wages, retirement benefits, or other disability benefits for the same period (see Benefit Reductions below). Partial weeks are paid at a daily rate equal to one-seventh of your weekly benefit. If you have been employed by HDS for less than 90 days on the date of your disability, the HDS STD Plan pays 55 percent of weekly earnings up to a maximum equal to California s State Disability Insurance maximum.

3 For the purposes of the STD Plan, your "Weekly earnings" means: Weekly base pay, excluding lead and shift differentials, bonus, overtime and other forms of additional compensation, during the last regularly scheduled work period immediately preceding the onset of Disability.; or For employees compensated by sales commissions, earnings means the Benefit Target Compensation amount used for determining the amount of coverage under HDS group life insurance program, which excludes commissions, bonus and other incentives. Weekly Earnings is calculated by dividing Earnings by fifty-two (52). To bring your total benefit payment up to 100%, you may coordinate your STD benefit with any accrued vacation time as described under Time Off. In no case can your disability benefit exceed 100% of your pre-disability earnings. Changes in Amount of Weekly Benefit The amount of your Weekly Benefit may change as a result of a change in your earnings or class. The new Weekly Benefit amount: will take effect on the date of the change; and will apply only to Disabilities commencing thereafter. However, if you are not an Active Employee on the above date, the new Weekly Benefit amount will take effect on the date you are again an Active Employee. Benefit Reductions Benefits otherwise payable under the STD Plan will be reduced or will not be paid if you are receiving or are eligible to receive: Primary and Dependent Disability or retirement benefits under the Federal Social Security Act, or any other similar plan or act; provided, however, that any cost-of-living increases in such benefits, effective after the initial reduction in the Plan benefit, will not serve to further reduce the Plan benefit. Temporary and permanent disability payments (whether total or partial), vocational rehabilitation payments, and any other amounts awarded to or allocated for you under any Workers Compensation law, occupational disease law, or any other legislation or law of similar purpose. Any amount awarded or paid in a lump sum which represents payment for a specified period will be prorated over that period. Otherwise, the benefit will be reduced to zero until the total amount of reduction equals the amount of the lump sum. For example, if you received a settlement as a result of a third party causing an accident that left you disabled; or if you received a Social Security payment retroactive 3 months those would be lump sums. If the amount awarded or paid in a lump sum does not represent

4 payment for a specified period, or if such a specified period can not be determined, the lump sum will be deducted from the Plan benefit payable commencing from the date of the award or settlement and continuing for as many future months as is necessary to equal the amount of such lump sum. Benefits under s State Disability plan or a Company plan established in lieu thereof. Benefits under any plan, fund or other arrangement by whatever name called, providing disability benefits pursuant to any compulsory benefit act or law or any government. Disability benefits under any other Company-sponsored or Company-funded plan. Company-paid wages Note that your benefit will be reduced by the amount paid by these other benefit sources. If you fail to apply for any of the above-itemized benefits to which you might be entitled, the Plan benefit will be reduced by the amount of the benefit which you would have received had application been made. Determination of the amount of each benefit will be made by the Plan Administrator. When STD Benefits Begin Your disability benefits will begin on the earliest of: 1. the eighth (8th) consecutive day of Disability, provided you have been examined by or are under the care of a Physician during some portion of that eight-day period; 2. the first (1st) day of Hospital Confinement; or 3. the first (1st) day of treatment in a Surgical Clinic or Surgical Unit of a hospital, provided you are Disabled for a period of at least eight (8) days as a result of the condition for which treatment was rendered. The period of time between the date your disability begins and the date STD benefits begin is known as the "elimination period." You must use 5 days of accrued sick leave and if you do not have sick leave, you have the option of using vacation benefits during the elimination period. (See Paid Vacation for details.) Method of Payment When the Plan Administrator determines you are disabled: Weekly Benefits are paid one week after you qualify for them and on a weekly basis thereafter. Benefits will be paid to you. However, benefits unpaid at your death will be paid to: o your spouse, if living; otherwise o your children, if living, divided equally; o your estate. Weekly Benefits due for a period of less than a week will be paid at a daily rate of 1/7th of the Weekly Benefit payable.

5 Right To Recover Overpayments The plan has the right to recover from you any amount that is determined to be an Overpayment. You have the obligation to refund the plan any such amount. An Overpayment occurs when the plan determines that the total amount paid on your claim is more than the total of the benefits due under This Plan. This includes any Overpayments resulting from: retroactive awards received from sources shown in the List of Other Income Benefits; fraud; or any error the Plan Administrator makes in processing your claim. The Overpayment equals the amount paid in excess of the amount that should have paid under This Plan. In the case of a recovery from a source other than This Plan, our Overpayment recovery will not be more than the amount of the recovery. You have the right to appeal any Overpayment recovery. An Overpayment also occurs when payment is made by the plan that should have been made under another group plan. In that case, the plan may recover the payment from one or more of the following: any other insurance company; any other organization; or any person to or for whom payment was made. The plan may, at its option, recover the Overpayment by: reducing or offsetting against any future benefits payable to you or your survivors; stopping future benefit payments (including Minimum Benefits) which would otherwise be due under This Plan. Payments may continue when the Overpayment has been recovered; or demanding an immediate refund of the Overpayment from you. In the event that you are injured through the acts or omissions of another person or organization, benefits under the Plan will be provided only on condition that you agree in writing to the following: 1. to reimburse the Plan for the full amount of payments made under the terms of the Plan, immediately upon receipt of the proceeds of any settlement of, or judgment in, an action at law, arbitration, claim, or other proceedings to determine your rights of recovery arising out of your injury, net of you reasonable expenses in collecting such amount including reasonable attorney s fees, and net of any amounts which are allocated by terms of any judgment for the instruments and papers and do whatever else is reasonably necessary to secure the rights of the Plan to reimbursement out of such proceeds, and you will do nothing to prejudice such rights;

6 2. to provide the Plan with a lien on the proceeds described in the preceding paragraph, to the extent of the full amount of payments made under the terms of the Plan; and 3. to provide the Plan with a credit against payments to be made in the future under the Plan equal to the proceeds described above, less any amount paid to the Plan by way of reimbursement. Temporary Disability Two disability periods will be considered to be one disability period if you return to active work between the two disability periods for less than 14 consecutive days and the second disability is related to the previous disability. During the Temporary Recovery you will not qualify for any change in coverage caused by a change in any of the following: the rate of earnings used to determine your Predisability Earnings; or the terms, provisions, or conditions of the plan. If your recovery lasts longer than the Temporary Recovery period allowed, when you become Disabled again you will have to begin a new Elimination Period. Concurrent Disability If a new Disability occurs while Weekly Benefits are payable, it will be treated as part of the same period of Disability. Weekly Benefits will continue while you remain Disabled. They will be subject to both of the following: the Maximum Benefit Duration; and Limitations and Exclusions that apply to the new cause of Disability. Weekly Benefits After it is determined that you are Disabled, your Weekly Benefits will not be affected by: termination of This Plan; termination of your coverage; or any plan change that is effective after the date you became Disabled. Definition of Disability State-mandated definitions of disability may differ from HDS STD Plan. For the purposes of HDS STD Plan, you will be considered disabled if the Plan Administrator, based on objective medical evidence and any other relevant information, determines that you: Are unable to perform your job or any reasonably related job due to illness, injury or pregnancy. (If you are a full-time employee and are able to work part-time while you are disabled, you will be considered disabled as long as you are unable to earn 100% of your predisability earnings.)

7 Are receiving Appropriate Care and Treatment* from a Doctor on a continuing basis; Contracted or were exposed to a communicable disease (e.g., tuberculosis, chicken pox), and your doctor (or a licensed health official) states, in writing, that you must stay away from work. Are under treatment for drug or alcohol abuse and are participating in an accredited residential treatment program. Your loss of earnings must be a direct result of your sickness, pregnancy or accidental injury. Economic factors such as, but not limited to, recession, job obsolescence, paycuts and jobsharing will not be considered in determining whether you meet the loss of earnings test. For an Employee whose occupation requires a license, loss of license for any reason does not, in itself, constitute Disability. * Appropriate Care and Treatment means medical care and treatment that meet all of the following: it is received from a Doctor whose medical training and clinical experience are suitable for treating your Disability; it is necessary to meet your basic health needs and is of demonstrable medical value; it is consistent in type, frequency and duration of treatment with relevant guidelines of national medical, research and health care coverage organizations and governmental agencies; it is consistent with the diagnosis of your condition; and its purpose is maximizing your medical improvement. You will not be considered disabled if you: Are doing work for any kind of pay or profit, unless you have obtained approval from the Plan Administrator; or Turn down alternative employment offered by the Company that is within your physical capabilities and is comparable in status and pay to your regular job. Exclusions You are generally eligible to receive benefits under the STD Plan provided you are unable to work and disabled as defined above. However, you are not eligible to receive STD benefits if: You were not a Plan participant when your disability began Your illness or injury was self inflicted You became disabled because of your commission or attempted commission of a felony or other illegal occupation You are injured in a war (as a civilian or soldier), act of war, riot, insurrection, or rebellion You are no longer under the care of a doctor, unless the Plan Administrator determines that your disability does not warrant such attention

8 Your disability stems from dipsomania, drug addiction or sexual pyschopathy; provided, however, that this exclusion will apply only to periods during which you are confined by court order or certification as a result of such condition or conditions. No benefits are payable: 1. For any disability which is not supported by a certificate from a Physician, stating the medical facts, including secondary diagnoses when applicable, within the Physician s knowledge, a conclusion with respect to your disability, and an opinion with respect to the probably duration of the disability. The certificate must also contain a diagnosis or diagnostic code prescribed in the International Classification of Diseases, or, where no diagnosis has yet been obtained, a detailed statement of symptoms. The certificate must be based on a physical examination and a documented medical history. a. For purposes of disability related to normal pregnancy or childbirth, the certificate of a duly licensed nurse-mid-wife or nurse practitioner acting within the scope of his or her practice will be accepted. b. As Rehabilitation Incentive While Disabled and participating in a Rehabilitation Program approved by The Plan Administrator, your Weekly Benefit, before reduction for Other Income Benefits, is increased by the sum of the following: (a) an amount equal to 10% of the weekly or daily benefit, plus (b) the amount of any earnings for work performed in the Rehabilitation Program, plus (c) after the 4th week of disability, the amount of eligible family care expenses outlined in the following section.. However, your Weekly Benefit will never exceed 100% of your pre-disability earnings. If you are Disabled and eligible for a Rehabilitation Program but refuse to participate in it, the Weekly Benefit will be reduced by 55% of Weekly Earnings up to a maximum equal to California s State Disability Insurance maximum. A Rehabilitation Program means (a) a return to active employment on either a part-time or full-time basis in an attempt to enable resumption of gainful employment or service in an occupation for which you are reasonably qualified taking into account your training, education, experience and past earnings; or (b) participating in vocational training or physical therapy deemed by The Plan Administrator to be appropriate. Family Care Expenses After the 4th week of Disability, when you work or participate in a Rehabilitation Program approved by The Plan Administrator, you will be reimbursed for Eligible Family Care Expenses incurred with respect to each Eligible Family Member. "Eligible Family Member" means a person who is: living with you as part of your household; and chiefly dependent on you for support.

9 "Eligible Family Care Expenses" mean the weekly expenses incurred by you in order for you to participate in a Rehabilitation Program, up to $60 for each Eligible Family Member. These are expenses incurred: to provide child care with respect to an Eligible Family Member under age 13. Child care must be provided by a licensed child care facility or other qualified child care provider. The child care provider may not be a member of your immediate family or living in your residence. to provide care to an Eligible Family Member who as a result of mental or physical impairment, is incapable of caring for himself or herself. Family Care Expenses for services provided by a member of your immediate family or any one living in your residence will not be reimbursed. Eligible Family Care Expenses do not include expenses for which you are eligible for reimbursement under any other group plan or from any other source. You must provide satisfactory proof to us that you incurred such charges. You must give The Plan Administrator proof that the Eligible Family Member is incapable of caring for himself or herself and is chiefly dependent on you for support. The proof must be satisfactory to The Plan Administrator. When STD Benefits End Your STD benefits will end on the earliest of: The day you reach the maximum STD benefit period (365 days), at which time you may be eligible for Long Term Disability (LTD) benefits. The day you are no longer disabled failure to cooperate in a medical examination within thirty (30) days following a written request by The Plan Administrator to do so Refusal by you to provide information to provide information requested in writing by The Plan Administrator for the purpose of determining whether you are entitled to benefits under the Plan; failure to furnish such information within thirty (30) days after such information has been requested will be considered to be a refusal the date you are no longer under the regular and continuous care and treatment of a Physician, unless The Plan Administrator determines that such regular and continuous care and treatment are not medically indicated given the nature of the disability The day you die. Termination of Coverage This provision applies to you if you are not Disabled. You will cease to be covered on the earliest of the following dates: the date This Plan terminates; the date you cease to be an Eligible Employee;

10 the date you stop making any required contributions; at midnight of the date you are laid-off; at midnight of the15th day of the month in which you begin a personal leave of absence. Extension of Benefits This provision applies if your coverage ceases while you are Disabled. During your Elimination Period your coverage will continue while you are continuously Disabled until the end of your Elimination Period. Benefits will begin after the end of your Elimination Period. Your coverage will continue in either of the following situations: this Plan terminates; or you cease to be an Eligible Employee but required payments are made to us. Benefits are payable if your Disability began while coverage was in force and continues without interruption after termination. Extension of benefits beyond the period coverage was in force is limited to the Maximum Benefit Duration. Extension of benefits is subject to all of the following: your Elimination Period; and payment of any required contributions; and all other applicable provisions of This Plan. Filing Claims If you believe you are eligible to receive STD benefits, notify your manager and Human Resources immediately. Your Human Resources representative will provide the appropriate claim form. To qualify for STD benefits, you may also be required to submit information from your doctor regarding your condition and the expected day you will return to work, as well as any records on file in a hospital or from another company that may be relevant to your claim. Benefits Checklist In order to receive benefits under this Plan, you must provide to the administrator, at your expense and subject to the administrator's satisfaction, all of the following documents. Initial submission of these documents should be made no later than the sixty (60) days following your original date of disability unless it is not reasonably possible for you or your representative to do so. In no event will the application be accepted by the Plan Administrator if your application is filed more than six (6) months after the date benefits become payable. Proof of Disability. Evidence of continuing Disability.

11 Proof that you are under the Appropriate Care and Treatment of a Doctor throughout your Disability. Information about Other Income Benefits. Any other material information related to your Disability which may be requested by us. Upon receipt of your application, the Plan Administrator will make a determination as to your eligibility for benefits. If the Plan Administrator determines that you are not eligible for benefits, you will be provided with written notification of the denial within fourth-five (45) days after receipt of the application, unless the Plan Administrator determines that an extension of time is required due to circumstances beyond the control of the Plan and notifies you within the forth-five (45) day period of such determination, including a description of such circumstances and the date by which the Plan Administrator expects to make such determination, which shall not be later than thirty (30) days following the date the initial forty-five (45) day period expires or, if later, the date on which you provide additional information required by the Plan Administrator in the first extension notice. If prior to the end of this thirty (30) day period the Plan Administrator determines that a second extension of time is required due to circumstances beyond the control of the Plan and notifies the Participant within the initial thirty (30) day extension period of such determination, including a description of such circumstances and the date by which the Plan Administrator expects to make such determination, the period for making the determination may be extended for an additional thirty (30) days following the date the first thirty (30) day extension period expires or, if later, the date on which you provide additional information required by the Plan Administrator in the second extension notice. Any notice extending the period of time for a determination will specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and you will be afforded at least forty-five (45) days within which to provide the specified information. Any notice denying a claim in whole or part will be written in a style and manner calculated to be understood by you. The notice of denial will set forth: 1. the specific reason or reasons for the denial; 2. specific references to pertinent Plan provisions on which the denial is based; 3. a description of any additional material or information necessary for you to perfect the claim and an explanation as to why such material or information is necessary; 4. if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion; or a statement that such rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination and that a copy of the rule, guideline, protocol, or other similar criterion will be provided free of charge to you upon request; 5. if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the plan to your medical circumstances, or a statement that such explanation will be provided free of charge upon request;

12 6. the identification of any medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and 7. an explanation of the Plan s claim review procedure, including a statement of your right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review.: Claim Review Procedure If your claim has been denied in whole or in part, you or your representative will have the right to request a review of the decision made on your claim. Such request must: 1. be in writing; 2. be filed within one hundred eighty (180) days after receipt of the written decision; 3. set forth all of the grounds upon which the request for review is based and any facts, documents, records or other information in support thereof; and 4. set forth any issues or comments which you deem pertinent to your claim. You or your representative may, without charge, review and receive copies of all documents, records and other information relevant to the claim. Upon receipt of the request for review of the decision, the Plan Administrator will consider the written request and provide you with a written decision within forty-five (45) days after receipt of the request for review. No deference will be given to the original adverse determination, and the fiduciary who decides the appeal shall be a different person from, and not a subordinate of, the person who made the original adverse determination. Should additional time be required in which to review your request, you will be notified on or before the date the forty-five (45) day period expires. Such notice will describe the circumstances giving rise to the need for extension, the date on which a decision will be made, and any additional information needed to decide the request for review. In no event will the written decision be issued more than ninety (90) days after the request for review is received, excluding from such ninety (90) day period the number of days between the date such notice of extension is given and the date you respond to any request for additional information. The decision of the Plan Administrator on any benefit claim review will be final and conclusive upon all persons and if such decision is a denial of the request for review, will include: 1. The specific reason or reasons for the denial; 2. Reference to the specific Plan provisions on which the benefit determination is based; 3. A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits; 4. A statement of your right to bring an action under section 502(a) of ERISA; 5. If an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion; or a statement that such rule, guideline, protocol, or other similar criterion was

13 relied upon in making the adverse determination and that a copy of the rule, guideline, protocol, or other similar criterion will be provided free of charge to you upon request; 6. If the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the plan to your medical circumstances, or a statement that such explanation will be provided free of charge upon request; and 7. The following statement: You and your plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your local U.S. Department of Labor Office and your State insurance regulatory agency. Social Security If you become disabled, the Plan Administrator provides you with assistance in applying for Social Security disability benefits. Before outlining the details of this assistance, you should understand why applying for Social Security disability benefits is important. Why You Should Apply For Social Security Disability Benefits Both you and your Employer contribute payroll taxes to Social Security. A portion of those tax dollars are used to finance Social Security's program of disability protection. Since your tax dollars help fund this program, it is in your best interest to apply for any benefits to which you may be entitled. Your spouse and children may also be eligible to receive Social Security disability benefits due to your Disability. There are several reasons why it may be to your financial advantage to receive Social Security disability benefits. Some of them are: Avoids reduced retirement benefits Should you become disabled and approved for Social Security disability benefits, Social Security will freeze your earnings record as of the date Social Security determines that your disability has begun. This means that the months/years that you are unable to work because of your disability will not be counted against you in figuring your average earnings for retirement and survivors benefit. Medicare Protection Once you have received 24 months of Social Security disability benefits, you will have Medicare protection for hospital expenses. You will also be eligible to apply for the medical insurance portion of Medicare. Trial Work Period

14 Social Security provides a trial work period for the rehabilitation efforts of disabled workers who return to work while still disabled. Full benefit checks can continue for up to 9 months during the trial work period. Cost of Living Increases Awarded by Social Security Will Not Reduce Your Disability Benefits The Plan Administrator will not decrease your Disability benefit by the periodic cost of living increases awarded by Social Security. This is also true for any cost of living increases awarded by Social Security to your spouse and children. This is called a Social Security "freeze." It means that only the Social Security benefit awarded to you and your dependents will be used by the Plan Administrator to reduce your Disability benefit; with the following exceptions: a. an error by Social Security in computing the initial amount; b. a change in dependent status; or c. your Employer submitting updated earnings records to Social Security or earnings received prior to your Disability. Over a period of years, the net effect of these cost of living increases can be substantial. The following definitions are used by the Plan Administrator when determining the benefits payable under the LTD Plan. Eligible Pay - For the purposes of the LTD Plan, eligible pay means: Gross monthly base pay and short-term target incentive at 100% of target prior to the date your disability began. Your base pay is calculated before any contributions you make to the 401(k) Plan or Flexible Spending Accounts. Gross monthly benefit target compensation (for selected sales positions), which takes into consideration both base pay and sales incentives based on the type of sales position held. Eligible pay does not include draw, bonuses, or any other forms of compensation. Eligible Survivor - Your surviving spouse or domestic partner; otherwise, your surviving children under age 25. Hospital (also Institution) - A facility licensed to provide care and treatment for the condition causing your disability. Mental Illness - Disorders which are diagnosed to include a condition such as: Bipolar disorder (manic depressive syndrome) Schizophrenia Delusional (paranoid) disorders Psychotic disorders Depressive disorders Anxiety disorders Somatoform disorders (psychosomatic illness) Eating disorders

15 Mental illness Additional Information Effect on Benefits In general, if you are receiving benefits under the STD Plan, you will also be considered to be on a medical (or pregnancy-related) leave of absence. This results in a change of your employment status, which affects your benefits eligibility. For details, see Leaves Of Absence.. For additional information about the effect of a change in employment status, contact Human Resources. You should also be aware that if you have been receiving Social Security disability benefits for more than two years, you may be eligible for Medicare benefits. Contact your local Social Security office for more details. When Coverage Ends Your coverage under the Hitachi Data Systems STD plan ends: On the day you leave Hitachi Data Systems On the last day of the period covered by your last premium contribution On the day your layoff or leave of absence begins On your first day of service in the armed forces (including short-term service in the Reserves) When you are no longer eligible for disability benefits and have not returned to work at Hitachi Data Systems When you give written notice that you want to withdraw from the plan On the day immediately before your retirement or termination from Hitachi Data Systems When Hitachi Data Systems terminates the plan. If Hitachi Data Systems terminates the disability plan while you are entitled to receive benefits, you will continue to receive benefits for as long as you remain disabled by the same disability and according to the provisions of the plan. However, these benefits will not be provided beyond the date the plan would have stopped paying benefits. Revised: May 10, 2010 Hitachi Data Systems - Internal Use Only