Important changes to your overall benefits package including additional paid time off and enhanced pension

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1 Important changes to your overall benefits package including additional paid time off and enhanced pension This issue of Focus provides nonexempt salaried employees with important information about recent and upcoming changes to your GE benefits package a comprehensive set of benefit plans and programs that provides valuable coverage and protection for you and your family. The new benefits package ensures that GE continues to provide excellent benefits among the best in our industries while allowing the GE businesses to remain competitive. ON GE BENEFITS PACKAGE SEPTEMBER 2011 INSIDE THIS ISSUE Paid Time Off...2 Pension...3 Job & Income Security...6 Disability & Health...7 PAID TIME OFF Increased vacation time Paid parental leaves VALUABLE PENSION IMPROVEMENTS Both pension formulas enhanced Significant pension increase for many long-service employees Required contributions reduced or eliminated for many employees JOB & INCOME SECURITY PROTECTIONS Renewed SERO, SERO 30 and PCPO for eligible employees SERO "window" opportunity for up to 400 employees Voluntary Retirement Incentive Payment, a lump sum equal to 75% of pay, for up to 400 employees Layoff plan changes HEALTH CARE IMPROVEMENTS Dental and vision benefits improved Disability benefits improved OTHER BENEFITS IMPROVEMENTS Emergency and family aid grants increased Adoption assistance improved Bereavement benefits expanded Educational loan limits increased Scholarships for surviving children enhanced CORE - NEX SAL

2 page 2 benefits.ge.com Paid Time Off: Enhancements provide more time off Vacation benefits improved for early career employees As an eligible employee, the amount of vacation you earn is based on your continuous service with the Company. As your continuous service increases, you become eligible for additional weeks of vacation. As of June 20, nonexempt employees with five years of service are eligible for three weeks of vacation (up from 2 1/2 weeks of vacation) regardless of the method in which vacation is earned (i.e., Annual Allotment or Earn-As-You-Go). Paid parental leave added as a GE benefit A paid time off benefit for eligible exempt and nonexempt salaried employees is being added as of January 1, 2012 to provide two weeks of paid leave that can be used for the following: Maternity leave (following medical clearance from the pregnancy disability); Paternity leave; and Adoption leave. Parental leaves run concurrently with Family Medical Leave Act (FMLA) leaves and similar leaves under other laws, as applicable. Employees can take time (up to two weeks), within one year of the birth or adoption. The leave can be taken in daily increments, with manager approval. In cases of adoption or birth, where both parents are Company employees, each parent is eligible for the two weeks paid leave. Other Benefit Programs More improvements to benefits Grants increased in the GE Emergency & Family Aid Plan Beginning January 1, 2012, the maximum amount for grants will be increased from $500 to $1,000. Emergency aid loans have been eliminated. Bereavement to cover death of a legal guardian The benefit has been expanded to include legal guardians, as of June 20, 2011, providing up to three paid days of leave. GE Educational Loan Program limits increased The loan amount has increased to $6,000 per student per year as of June 20, The maximum outstanding loan balance will also increase to $36,000. GE Adoption Assistance reimbursement doubled The Company will reimburse up to $8,000 of eligible expenses (up from $4,000) for each legal adoption with a decree finalized on or after June 20, GE Scholarship for Surviving Children enhanced In the event of an employee s death on or after June 20, 2011, each eligible child can receive a scholarship of up to $5,000 annually a $2,000 increase. The maximum amount over four years is $20,000.

3 benefits.ge.com page 3 Pension Plan Substantial pension improvements provide even greater retirement security Pension formulas enhanced The GE Pension Plan uses two formulas to calculate benefits: the Regular Pension and the Guaranteed Pension. Both consider your pay and service, and when you retire you ll receive the one that pays the higher amount. Significant improvements have been made to each to help ensure that the plan continues to provide targeted levels of replacement income. Guaranteed Pension rates increased The Guaranteed Pension will improve, with monthly benefit rates going up at every pay level. The lowest rate will increase from $34 to $35 per year of Pension Benefit Service (PBS), and the highest rate will jump from $70 to $80 per year of PBS an increase of over 14%. This change is effective on July 1, Contribution threshold raised; fewer employees required to contribute Employees are currently required to contribute 3% of their pay over $70,000 in order to participate in the plan. Beginning in 2012, the threshold will increase to $80,000. This will reduce and even eliminate required contributions for many employees over the next few years. As a result of this improvement, you might have as much as an extra $300 per year to contribute to S&SP, and if you chose to make those extra contributions, they may be eligible for a Company match. Or, you could contribute to the Voluntary Pension Account to keep earning additional benefits under the GE Pension Plan. Either way, it s a good idea to continue strengthening your financial foundation for retirement. New Table of Guaranteed Pensions FINAL AVERAGE COMPENSATION Over Up to MONTHLY BENEFIT PER YEAR OF PBS FINAL AVERAGE COMPENSATION Effective 7/1/11 Over Up to MONTHLY BENEFIT PER YEAR OF PBS Effective 7/1/11 $38,000 $35 $60,000 $61,000 $58 $38,000 $39,000 $36 $61,000 $62,000 $59 $39,000 $40,000 $37 $62,000 $63,000 $60 $40,000 $41,000 $38 $63,000 $64,000 $61 $41,000 $42,000 $39 $64,000 $65,000 $62 $42,000 $43,000 $40 $65,000 $66,000 $63 $43,000 $44,000 $41 $66,000 $67,000 $64 $44,000 $45,000 $42 $67,000 $68,000 $65 $45,000 $46,000 $43 $68,000 $69,000 $66 $46,000 $47,000 $44 $69,000 $70,000 $67 $47,000 $48,000 $45 $70,000 $71,000 $68 $48,000 $49,000 $46 $71,000 $72,000 $69 $49,000 $50,000 $47 $72,000 $73,000 $70 $50,000 $51,000 $48 $73,000 $74,000 $71 $51,000 $52,000 $49 $74,000 $75,000 $72 $52,000 $53,000 $50 $75,000 $76,000 $73 $53,000 $54,000 $51 $76,000 $77,000 $74 $54,000 $55,000 $52 $77,000 $78,000 $75 $55,000 $56,000 $53 $78,000 $79,000 $76 $56,000 $57,000 $54 $79,000 $80,000 $77 $57,000 $58,000 $55 $80,000 $81,000 $78 $58,000 $59,000 $56 $81,000 $82,000 $79 $59,000 $60,000 $57 $82,000 $ $80 WHAT IS VPA? It s the Voluntary Pension Account (VPA), which lets you: Contribute 3% of your pay up to the point at which required contributions begin (after pay reaches $80,000 starting in 2012); and Earn tax-deferred interest on those contributions.

4 page 4 benefits.ge.com WHAT IS REPLACEMENT INCOME? Replacement income is the portion of income you earned while working that you ll need to replace in retirement in order to maintain your standard of living. Generally, the standard for replacement income is between 70% and 80% of your earnings in the last years of work. The GE Pension Plan can be an important component of your replacement income. Update increases Regular Pension for many long-service employees Many long-service employees will receive a sizeable increase in their Regular Pension benefits as a result of a one-time update. The update calculates an alternate Regular Pension amount under a formula that is based on your PBS and your three highest consecutive years pay (including overtime) during the years 2005 through If the alternate amount is greater than the Regular Pension already earned, your Regular Pension will be increased to the higher level. This updates your pension benefit to more closely reflect your recent pay, helping to ensure the plan continues to provide targeted levels of replacement income. After the Regular Pension is updated, you continue earning benefits under the Regular Pension formula. How to Calculate the Regular Pension Update (.85% of your average annual pay* up to $45,000 PBS as of December 31, % of your average annual pay* over $45,000) your If this amount is larger than your annual Regular Pension benefit as of December 31, 2010, you ll get the larger annual amount. *Average annual pay is the average of your three highest consecutive years pay, with overtime, during the years 2005 through Qualifying for the Regular Pension Update To be eligible for the Regular Pension Update, you must: Have at least 25 years Pension Qualification Service (PQS), or be at least age 55 with 20 years of PQS, as of December 31, 2010; and Be actively participating in the Pension Plan on July 1, 2011 or when you terminate employment in June 2011 after becoming eligible to retire. Qualifying retirees will see the update in their pension checks beginning in December Regular Pension formula also improved Under the Regular Pension, you earn a benefit each year that s equal to: 1.45% of your pay up to a breakpoint, plus 1.9% of your pay over the breakpoint. Each year s benefit is added to what you ve earned in previous years to determine your total Regular Pension benefit at retirement. The breakpoint in the formula, which had been fixed since 2008 at $40,000, was scheduled to increase in 2012 to about $50,212. From there it would have increased each year, reaching about $58,456 by Under the new benefit package, the breakpoint for 2012 through 2015 will be fixed at $45,000. This means more of your pay (as much as $13,456 in 2015) is eligible to earn a pension benefit at the higher 1.9% rate. EXAMPLE OF REGULAR PENSION UPDATE An employee with 27 years of PBS has had several pay increases over her career. Her average pay is now $91,000. Her annual Regular Pension before the update is $22,640. After the update, it will be $28,337, an increase of $5, % $45, yrs. = $10, % ($91,000 $45,000) 27 yrs. = $18,009 $28,337

5 benefits.ge.com page 5 Supplements improve, helping bridge you to Social Security benefits Supplements are designed to provide additional income after you retire until Social Security benefits can begin. This can help you manage the financial transition to retirement. The new GE benefit package makes this bridge even stronger. Under the new package, the Regular Supplement will increase from $18 to $20 per month, per year of PBS for eligible employees who terminate on or after June 1, The Special Supplement, which was set to expire, has been renewed until June 30, 2015 and has been increased from $375 per month to $400 per month for eligible employees who terminate on or after June 1, In addition, the extension for both supplements beyond age 62 has been renewed until June 30, This means that many employees who retire at age 60 in the next four years will enjoy supplements for a full three years instead of two a substantial help in bridging them to the age at which they can receive 80% of their Social Security benefits. (See the table below.) At retirement, employees with five years of PQS are eligible for the Regular Supplement and those with 25 years of PQS are also eligible for the Special Supplement. New Plan Participants* are not eligible for supplements. Protection for disabled employees improves Active employees with 15 years of PQS who become permanently disabled (and unable to perform their jobs) while participating in the GE Pension Plan can receive a Disability Pension, reduced for payment before age 60. The Company will improve this important safety net by eliminating the reduction for early payment, except in the case of New Plan Participants*, for whom the reduction will improve to a flat 25% (from the previous range of 27% to 37% depending on age at commencement). This improvement is effective for eligible employees who terminate for permanent disability on or after June 1, Reductions for payment as a 50% or 75% survivor benefit continue to apply. SUPPLEMENTS CAN MAKE A BIG DIFFERENCE An employee with 30 years of PBS who retires at age 60 in 2012 will receive $12,000 in supplements each year for three years for a total of $36,000. This includes an extra $12,000 paid beyond age 62 due to the extension. YEAR OF BIRTH AGE TO WHICH SUPPLEMENT PAID Before 1955 Age and 2 months and 4 months and 6 months and 8 months and 10 months After 1959 Age 64 The improved supplements will be a substantial help to bridge many long-term service employees to Social Security benefits. * New Plan Participants are generally nonexempt salaried employees (not including nonexempt employees in production-type jobs) who were hired on or after January 1, 2005 and before January 1, Rehired employees may or may not be New Plan Participants. You should consult Your Benefits Handbook if you have questions about which benefits you are eligible for.

6 page 6 benefits.ge.com Job & Income Security Protection for the future Voluntary SERO window and Voluntary Retirement Incentive Payment (VRIP) create retirement opportunities in 2011 The Company will offer both a one-time SERO window and a one-time Voluntary Retirement Incentive Payment (VRIP). These one-time opportunities, both of which will be offered later this fall, will be extended to eligible employees even though they haven t been affected by a permanent job-loss event. SERO Window The SERO window will be available for up to 400 hourly and nonexempt salaried employees on the active payroll who are at least age 55 and under age 60 with 30 or more years of Pension Qualification Service (PQS). Priority for the window will be based on Pension Benefit Service (PBS). Employees who retire under the window will receive: An unreduced pension, including applicable improvements; A Regular Supplement that continues until the employee is eligible to collect Social Security at the 80% level (80% Social Security age), at the new, higher rate of $20 per month per year of PBS; A Special Supplement at the new, higher level of $400 per month, again continuing until the employee s 80% Social Security age; and Other retiree benefits, including GE medical, dental and life insurance coverage. * New Plan Participants are generally nonexempt salaried employees (not including nonexempt employees in production-type jobs) who were hired on or after January 1, 2005 and before January 1, Rehired employees may or may not be New Plan Participants. You should consult Your Benefits Handbook if you have questions about which benefits you are eligible for. All retirements under the window will occur on December 1, In October, eligible employees who meet the age and service requirements will receive a detailed explanation of all the conditions of the window, including when and how to apply. New Plan Participants* are not eligible for the SERO window. VRIP Under VRIP, the Company will offer a one-time lump sum equal to 75% of annual pay (excluding overtime) for up to 400 hourly and nonexempt salaried employees. VRIP will be available to employees who voluntarily terminate from active employment on November 30, 2011 after reaching at least age 60 with 10 or more years of continuous service. Priority for VRIP will be based on PBS. Employees who receive the special payment will also be able to take advantage of any GE retirement benefits for which they are eligible. For example, an employee who takes a VRIP and who also participates in the GE Pension Plan could start an unreduced pension on December 1, 2011 and could also take advantage of any other retiree benefits for which he or she is eligible (e.g., retiree health). The VRIP lump sum will not count as pay under any GE benefit plan, and employees who receive it will not be eligible for any benefits associated with job loss or lack of work. VRIP will be paid in In early October, eligible employees meeting the age and service requirements will receive information about VRIP, including information on when and how to apply. VRIP and the SERO window are mutually exclusive. An eligible employee must be at least age 60 by November 30 to be eligible for VRIP, but must be under age 60 by the same date to be eligible for the SERO window. Effective January 1, 2012, there will be changes to layoff benefits in the event of a job loss for salaried employees (exempt and nonexempt), including All salaried employees will be required to sign a release of claims to receive the full layoff payment benefit (four week minimum) and six months of subsidized health care. Separate lump sum transition payments for signed releases will no longer be available. Employees who do not submit a signed release will receive two weeks of pay and 60 days of subsidized health care. All salaried employees will no longer be required to have one year of service at the time of job loss to be eligible for layoff payments. All salaried employees will now have the same layoff payment formula: one week per year of service, integrated with state unemployment benefits. Enhanced plant or office closing layoff payments will no longer be available for salaried employees. For additional information, please refer to the Handbook Update in Your Job Loss Handbook at benefits.ge.com.

7 benefits.ge.com page 7 Renewed SERO, SERO 30 and PCPO help employees affected by job loss Direct Impact SERO and SERO 30 Employees who are 55 to 59 with at least 25 years of Pension Qualification Service (PQS) and whose jobs are directly impacted by a permanent job-loss event (a plant closing, work transfer, automation, discontinuation of a product line or reduction in force of indefinite duration) are eligible for the Special Early Retirement Option (SERO). SERO 30 helps protect hourly and nonexempt salaried employees who are under 55 but have at least 30 years of PQS, and who are directly impacted by a permanent job-loss event. The Plant Closing Pension Option (PCPO) provides a cushion for eligible employees who are directly impacted by the closing of a manufacturing plant, service shop or other facility where they work, but who don t qualify for a SERO or SERO 30. PCPO is available to eligible employees who meet the following age and service requirements: Age PCPO AGE AND SERVICE REQUIREMENTS PQS < Eligible employees whose jobs are directly impacted, and who retire under SERO, SERO 30 or PCPO, will receive: An unreduced pension, including applicable improvements, starting the month after the permanent job-loss event; A Regular Supplement that continues until the employee is eligible to collect Social Security at the 80% level (80% Social Security age), at the new, higher rate of $20 per month per year of PBS; A Special Supplement at the new, higher level of $400 per month, again continuing until the employee s 80% Social Security age; and Other retiree benefits, including GE medical, dental and life insurance coverage. (Employees retiring under PCPO qualify for these benefits only if they have at least 30 years PQS, or are at least 50 with 25 years of PQS.) SERO and SERO 30 Substitution SERO and SERO 30 will also both have a limited substitution feature for employees who wish to retire early but who are not directly impacted by a permanent job-loss event. In the case of SERO, an hourly or nonexempt employee who meets the SERO eligibility requirements may retire as a substitute for another employee in the same classification whose job has been directly impacted. In the case of SERO 30, an hourly or nonexempt employee who meets the SERO 30 eligibility requirements may retire as a substitute for an employee with less continuous service in the same classification whose job has been directly impacted and who would otherwise have been eligible to retire under SERO 30. In either case, a substituting employee will receive: An immediate, unreduced regular or guaranteed pension, including applicable improvements, starting the month after the permanent job-loss event; and Access to pre-65 health care and dental coverage at full retiree plan cost. The new SERO, SERO 30 and PCPO replace the early retirement options that expired on June 30, They are available only for permanent job-loss events that occur after June 30, 2011 and before July 1, 2015, and are not available to New Plan Participants*. Special Supplement Benefit Option renewed and increased, providing even more support in case of job loss The Special Supplement Benefit Option (SSBO) has been renewed and increased from $375 a month to $400 a month, paid in one of two ways, at the employee s choice: From age 60 until the 80% Social Security age; or Starting as early as six months after the permanent job-loss event and continuing for the same number of months the payment would have been made if it had started at age 60. SSBO is available to employees who are under age 60 and have at least 25 years of PQS, and who are directly impacted by a permanent job-loss event on or after June 1, 2011, and on or before June 30, 2015 (but not to New Plan Participants*, anyone who withdraws his or her pre-1989 contributions before age 60, or to anyone who retires under PCPO, SERO or SERO 30, including a SERO or SERO 30 substitute). * New Plan Participants are generally nonexempt salaried employees (not including nonexempt employees in production-type jobs) who were hired on or after January 1, 2005 and before January 1, Rehired employees may or may not be New Plan Participants. You should consult Your Benefits Handbook if you have questions about which benefits you are eligible for.

8 page 8 benefits.ge.com Disability Benefits Improvements provide important income protection Salary Continuation Program improved The maximum weekly benefit for extended illness payments, equal to 60% of your pay, will rise from $700 to $750 for disabilities beginning on or after January 1, 2012 and to $800 per week for disabilities beginning on or after January 1, Employees are eligible for these payments or 50% of pay for up to 26 weeks or any benefit required by state disability whichever is higher. Your business may approve extended illness payments of 100% of your pay, depending on your performance and/or your length of service. Starting January 1, 2012, a new minimum weekly short-term disability benefit of $350 a week, not to exceed your normal rate of pay, will become effective. NEW HEALTH CARE CONTRIBUTION RATES Effective January 1, 2012, there will be new contribution rates for GE Health Choice. There will be a modest increase on average, about $80 for the year. Only contribution rates are changing there will be no change to deductibles or co-insurance. The contribution rates are available at the GE Health Choice web site at ge.com/healthahead --> Select Health Care Decisions. Dental care improvements Dental implant coverage added and dental schedules to increase The GE Dental Schedule Option (DSO) and the GE Dental Premium Option (DPO) will add coverage for dental implants up to 50% of reasonable, necessary and customary charges. The amount you pay will count toward the plan maximum for restorative and prosthodontic services. The maximums are $2,500 bi-annually under the DSO and $2,500 annually for the DPO, effective for services received on or after January 1, Effective January 1, 2013, the dental benefits schedule under DSO will be updated, increasing the allowance for most procedures to reflect increases in dental charges since the last schedule update. You need to enroll in DSO, but you do not pay contributions for this coverage. Vision care improvements Free contact lenses and scratch resistant coatings Effective January 1, 2012, under the Vision Basic Option, the co-payment will be eliminated for in-network purchases of up to four boxes (up from two) of contact lenses a year for those under 19 and four boxes every other year for those over 19. The $20 co-pay for scratch resistant coating on eyeglass lenses will also be eliminated. Both the Vision Basic Option and the Vision Plus Option will be expanded to include new coverage for plan participants diagnosed with low vision who require certain types of vision aids.