UNISYS SUPPLEMENTAL UNEMPLOYMENT BENEFITS PLAN

Transcription

1 UNISYS SUPPLEMENTAL UNEMPLOYMENT BENEFITS PLAN Effective January 1, 2009

2 TABLE OF CONTENTS Page INTRODUCTION...1 WHO IS ELIGIBLE...2 WHO IS NOT ELIGIBLE...4 SPECIAL SITUATIONS THAT ARE NOT COVERED...6 Sale, Merger, Jint Venture, Divestiture r Lss f a Gvernment Cntract...6 Temprary Wrk Interruptins...6 Furlughs...6 DEFINITIONS...7 What Date f Ntice Means as t a Wrkfrce Reductin r Layff...7 What Ntice Perid Means as t a Wrkfrce Reductin r Layff...7 What Separatin Date Means...7 Relatinship f Date f Ntice, Ntice Perid, and Separatin Date as t a Wrkfrce Reductin r Layff...7 What Pay Means...7 What Service Means...8 What Same General Gegraphic Area Means...8 What FMLA Means...9 What Military Leave Means...9 CALCULATION OF SUB PAYMENTS...10 Number f Weeks f SUB Payments...10 Basic Frmula fr Number f Weeks f SUB Payments...11 Amunt f SUB Payments...11 Offset fr Amunts Owed t the Cmpany...12 PAYMENT UNDER THE PLAN...13 Timing f SUB Payments...13 Cmmencement f SUB Payments...13 Cnfirmatin f Eligibility...14 Wrk Elsewhere...15 Surce f SUB Payments...15 Tax Treatment f SUB Payments...16 Right t SUB Payments...16 i

3 Table f Cntents cnt'd Page WHEN SUB PAYMENTS END...17 UNEMPLOYMENT COMPENSATION...18 CHANGE IN ADDRESS...18 OTHER BENEFITS...18 ADDITIONAL PLAN INFORMATION...19 OFFICIAL PLAN NAME AND PLAN NUMBER...19 PLAN SPONSOR...19 EMPLOYER IDENTIFICATION NUMBER OF THE PLAN SPONSOR...19 PLAN YEAR...19 TYPE OF PLAN...19 PLAN ADMINISTRATIVE INFORMATION...20 PLAN ADMINISTRATOR...20 PLAN AND SPD...20 HOW TO FILE A CLAIM OR AN APPEAL FOR SUB PAYMENTS...20 If Yu Want t File a Claim fr SUB Payments If Yu Want t File an Appeal fr SUB Payments...21 RIGHT TO RECOVER EXCESS PAYMENTS...22 CASE REVIEW...22 FUNDING OF SUB PAYMENTS...22 ADMINISTRATIVE COSTS...22 APPOINTMENT/REMOVAL OF PLAN MANAGER AND COMMITTEE MEMBERS...23 AGENT FOR LEGAL PROCESS...23 GOVERNING LAW...23 YOUR RIGHTS UNDER ERISA...23 Receive Infrmatin Abut Yur Plan and Benefits...23 Prudent Actins by Plan Fiduciaries...23 Enfrce Yur Rights...24 Assistance with Yur Questins...24 PLAN TERMINATION OR AMENDMENT...25 ii

4 INTRODUCTION The Unisys Supplemental Unemplyment Benefits Plan (the "Plan") is designed t ease the transitin fr yu if yur emplyment is terminated as a result f business cnditins requiring an invluntary wrkfrce reductin r layff. The Plan generally supplements the state unemplyment cmpensatin benefits yu may be entitled t receive in these circumstances. The Plan, as amended and restated, is effective fr invluntary wrkfrce reductins r layffs fr which ntice is prvided n r after January 1, Unisys Crpratin ("Unisys") and its participating affiliates (cllectively the "Cmpany") supprt several different prgrams and prcedures t ease the transitin: Yu are prvided with at least tw weeks' advance ntice f the effective date f a wrkfrce reductin r layff. This ntice perid may be lnger if Federal, state r lcal law dictates a lnger perid f ntice. Yu receive regular pay and sme benefits thrughut the perid frm the date ntice is given, thrugh and including the last day f the ntice perid, which is called yur "Separatin Date." After yur Separatin Date, yu may receive payments under the Plan that are supplemental t state unemplyment cmpensatin benefits ("SUB Payments"), with the number f weeks f payments depending n yur years f service with the Cmpany, up t a maximum f 26 weeks; and Cmpany-spnsred benefit cntinuatin under certain grup health plans included in the Unisys Flexible Benefits Prgram. This bklet prvides infrmatin n the Plan, as well as infrmatin n the Cmpany's Ntice f Wrkfrce Reductin prvisins, that is intended t help yu understand yur benefits under the Plan. If yu are eligible t receive SUB Payments under this Plan, yu will nt be eligible t receive incme assistance benefits under the Unisys Incme Assistance Plan (the "Incme Assistance Plan"). Hwever, if yu begin t receive SUB Payments under the Plan and yu die befre receiving all f yur SUB Payments, any remaining payments yu wuld have received under this Plan will be payable t yur beneficiary under the Incme Assistance Plan instead. 1

5 WHO IS ELIGIBLE Effective fr invluntary wrkfrce reductins r layffs fr which ntice is prvided n r after January 1, 2009, yu are eligible fr SUB Payments under the Plan if, immediately befre yu receive ntice f the invluntary wrkfrce reductin r layff: Yu are in an active emplyment status as a regular full-time United States ("U.S.") emplyee f the Cmpany; Yu are in an active emplyment status as a regular part-time U.S. emplyee f the Cmpany, and yur nrmal wrk schedule is 20 r mre hurs per week immediately befre yu receive ntice f the wrkfrce reductin r layff; and yu have been emplyed by the Cmpany fr mre than 60 cnsecutive calendar days when ntice f the wrkfrce reductin r layff is given; r Yu are a regular full-time r regular part-time U.S. emplyee f the Cmpany, as described abve, and yu are n an apprved family/medical ("FMLA") r persnal leave f absence f 90 days r less and are scheduled t return t wrk n r after January 1, 2009, but n wrk is available; yu are unable t wrk yur nrmal wrk schedule due t a disability that was certified under the Unisys Shrt-Term Disability ("STD") Plan fr 26 weeks r less, and n r after January 1, 2009 yu are medically certified t return t yur nrmal wrk schedule at the end f yur apprved leave f absence under the STD Plan, but n wrk is available; r yu are n a military leave f absence, and n r after January 1, 2009 yu make a timely applicatin t return t wrk after yur release frm military service, but n wrk is available. In each case, yu will receive SUB Payments under the Plan nly if yu are given ntice f an invluntary wrkfrce reductin r layff r there is n wrk available n yur return frm a leave f absence as described abve and: The Plan Manager r his r her delegate (the "Plan Manager") determines that yu are unemplyed, available fr wrk and eligible t receive state unemplyment cmpensatin benefits; r The Plan Manager wuld have made the same determinatin, except that yu D nt have sufficient emplyment t be cvered by yur state's unemplyment cmpensatin benefit system; Have exhausted yur state's unemplyment cmpensatin benefits; r 2

6 Are serving a waiting week under yur state's unemplyment cmpensatin benefit system. Ttal management Slutins, Inc. ("TmS") has been retained t assist the Plan Manager with making these determinatins and peridically cnfirming these determinatins fr nging eligibility t receive SUB Payments. The prcedures fr yu t prvide TmS with the infrmatin necessary t make these determinatins are described n pages 14 and 15 f this bklet. Please review the prcedures carefully and be sure t cmply because yur SUB Payments will generally be discntinued if yu d nt prvide the necessary infrmatin t TmS at the required times. 3

7 WHO IS NOT ELIGIBLE Yu are nt eligible fr SUB Payments under the Plan if, n r befre yur Separatin Date, yu: vluntarily resign frm the Cmpany, including, but nt limited t, by btaining alternate emplyment r electing t retire; die; are released due t unsatisfactry jb perfrmance r are discharged fr cause (as defined in applicable Cmpany plicies, as in effect frm time t time); r vlunteer t be cnsidered fr the wrkfrce reductin r layff and yur request is accepted by an authrized representative f Unisys. Yu als are nt eligible fr SUB Payments under the Plan if yu: are classified in Unisys recrds as either a regular part-time emplyee whse nrmal wrk schedule is less than 20 hurs per week, a temprary emplyee, a c-p, r an intern n the date f ntice f the wrkfrce reductin r layff; are an emplyee f a U.S. subsidiary r business grup f Unisys (including, but nt limited t, Unisys Technical Services, L.L.C.) that has nt adpted the Plan n the date f ntice f the wrkfrce reductin r layff; are a member f a cllective bargaining unit (unless the agreement gverning yur emplyment prvides fr participatin in the Plan) n the date f ntice f the wrkfrce reductin r layff; are eligible fr anther severance plan r arrangement (ther than the Incme Assistance Plan) that has been apprved by the Senir Vice President, Wrldwide Human Resurces r his r her designee; are n an apprved persnal leave f absence in excess f 90 days n the date f the ntice f a wrkfrce reductin r layff; d nt return n the scheduled return-t-wrk date frm leave f absence under the STD Plan, military leave f absence, r apprved FMLA r persnal leave f absence f 90 days r less; are still unable, after 26 weeks, t wrk yur nrmal wrk schedule due t a disability in this case, yur status is changed t "inactive" at the later f the date yu cease wrking a reduced wrk schedule r after 26 weeks f absence (Nte that yu are nt eligible fr pay during the ntice perid r fr benefits under the Incme Assistance Plan r SUB Payments, even if yu are nt certified fr Unisys Lng-Term Disability ("LTD") Plan benefits at the end f this perid.); 4

8 decline an ffer f alternate emplyment by Unisys r ne f its U.S. subsidiaries within the same general gegraphic area (as defined n page 8) in this case, yu are cnsidered t have resigned; accept the terms f a vluntary retirement incentive prgram r similar prgram; are nt an emplyee f the Cmpany but prvide services as a leased emplyee as described in sectin 414(n)(2) f the Internal Revenue Cde f 1986, as amended (the "Internal Revenue Cde") n the date f ntice f the wrkfrce reductin r layff; r are classified as an independent cntractr by the Cmpany r are nt treated by the Cmpany as an emplyee fr purpses f withhlding Federal emplyment taxes n the date f ntice f the wrkfrce reductin r layff, regardless f: hw yu are classified by the Internal Revenue Service, anther gvernmental agency, gvernment r curt; r a cntrary gvernmental r judicial determinatin relating t such emplyment status r tax withhlding. 5

9 SPECIAL SITUATIONS THAT ARE NOT COVERED There are als sme special situatins in which yu will nt be eligible fr SUB Payments under the Plan. These situatins are described belw. Sale, Merger, Jint Venture, Divestiture r Lss f a Gvernment Cntract Successr cmpanies ften ffer nging emplyment in the fllwing situatins: the lss by the Cmpany f a gvernment cntract; the sale r divestiture f a Cmpany facility, functin r unit; r the frmatin f a jint venture invlving a Cmpany facility, functin r unit. Yu are nt eligible fr the Plan in such a situatin if bth f the fllwing apply: yu are ffered emplyment with a successr cmpany, persn r entity; and the psitin is in the same general gegraphic area (as defined n page 8). Temprary Wrk Interruptins The Plan des nt apply t brief, temprary wrk interruptins caused by fire, fld, weather, etc., and yu are nt eligible t receive SUB Payments fr these wrk interruptins. Furlughs Shrt-term shutdwns (usually up t tw weeks in any 12-mnth perid) may be authrized by the Cmpany. Yu receive hliday pay fr any Cmpany-designated hlidays celebrated during the furlugh perid. Yu may apply unused vacatin r yur emplyee-designated hliday(s), if any, t cntinue yur pay during the furlugh. N SUB Payments are payable during a furlugh. If the furlugh ccurs during yur ntice perid, yu cntinue t receive ntice pay fr the balance f yur ntice perid, and unused vacatin time is nt charged. 6

10 DEFINITIONS Keep the fllwing definitins in mind as yu read this bklet. What Date f Ntice Means as t a Wrkfrce Reductin r Layff The Cmpany prvides advance ntice prir t the Separatin Date. The date yu are ntified in writing that yur emplyment will be terminated as a result f a wrkfrce reductin r layff is cnsidered t be the date f ntice. What Ntice Perid Means as t a Wrkfrce Reductin r Layff The time between the date f the ntice and the Separatin Date is the ntice perid. Yu will receive at least 2 weeks ntice. The ntice perid culd be lnger if Federal, state r lcal law requires a lnger ntice perid. What Separatin Date Means The last day f the ntice perid is the Separatin Date. Relatinship f Date f Ntice, Ntice Perid, and Separatin Date as t a Wrkfrce Reductin r Layff The three terms defined abve are key t understanding the Plan. The fllwing example illustrates the relatinship f these terms in a hypthetical situatin. Fr example: if a tw-week ntice f a wrkfrce reductin r layff is given n August 15, the fllwing dates apply: Date f ntice = August 15 Ntice perid = August 16 thrugh August 29 Separatin Date = August 29 What Pay Means Fr purpses f the Plan, including calculating SUB Payments, pay means yur weekly base rate f pay as f yur Separatin Date. Overtime, cmmissins, sales incentives, Executive Variable Cmpensatin ("EVC") Plan and ther annual incentive r bnus payments, Lump Sum Recgnitin Awards, leader premiums, shift differentials, and any ther incme are nt included. If yu are paid n a biweekly basis, yur biweekly base rate f pay is multiplied by 26 t arrive at an annual base rate f pay. This annual base rate f pay is then divided by 52 t determine yur weekly base rate f pay. 7

11 If yu are paid n a mnthly basis, yur mnthly base rate f pay is multiplied by 12 t arrive at an annual base rate f pay. This annual base rate f pay is then divided by 52 t determine yur weekly base rate f pay. What Service Means Fr purpses f the Plan, generally, yur service means the cmpleted number f whle years between: yur mst recent date f hire, rehire, r recall (whichever applies t yu) by the Cmpany in the U.S.; and yur Separatin Date. If yu wrked fr a freign subsidiary f Unisys, yur date f hire fr purpses f the Plan generally is yur mst recent date f hire r rehire as a lcal hire in the U.S. An exceptin t this general rule applies if: yu transferred frm a freign subsidiary f Unisys t U.S. emplyment with the Cmpany n the U.S. payrll with n break in yur service with Unisys and the subsidiary; and yu neither received, nr are yu entitled t receive in the future, any severance r ther terminatin payments r benefits f any kind as a result f yur transfer frm the freign subsidiary t the Cmpany in the U.S. If this exceptin applies, yur date f hire fr purpses f the Plan is yur mst recent date f hire r rehire by the freign subsidiary f Unisys befre yur transfer t the Cmpany in the U.S. If yu wrked fr an rganizatin that Unisys acquired r with which Unisys established an utsurcing arrangement and the terms f the applicable acquisitin agreement r the utsurcing cntract expressly prvide that service with the prir emplyer will be cnsidered fr purpses f severance pay r incme assistance, yu will receive credit fr service with the prir emplyer t the extent prvided fr under the terms f the agreement r cntract. If any state r Federal law requires that yur service with a prir emplyer be recgnized fr purpses f severance pay, Unisys will recgnize that service in accrdance with the law. Yur service is cunted in whle years fr purpses f the Plan. Therefre, if yur service includes a partial year, yur service is runded dwn t the next lwer whle number fr purpses f calculating SUB Payments. Fr example, assume Phyllis is hired by the Cmpany n Octber 1, 1994, and this is her mst recent date f hire. Phyllis is ntified f an invluntary wrkfrce reductin r lay ff with a Separatin Date n August 1, Phyllis has 14 years f service fr purpses f the Plan. What Same General Gegraphic Area Means Fr purpses f the Plan, an ffer f alternate emplyment is cnsidered t be in the same general gegraphic area unless the distance between the new principal place f wrk and yur residence is 8

12 at least 50 miles greater than the distance between yur frmer principal place f wrk and yur residence, as determined under a methdlgy selected by the Plan Manager. What FMLA Means Fr purpses f the Plan, FMLA refers t a leave f absence fr family r medical reasns that is apprved pursuant t the Unisys Family and Medical Leave Practice r under any state r Federal law. What Military Leave Means Fr purpses f the Plan, military leave refers t an apprved leave f absence frm the Cmpany due t active military service, prvided that yu make a timely applicatin t return t wrk after yur release frm military service and the length f yur military service r the nature f yur discharge d nt disqualify yu frm reinstatement rights under Federal law r under any applicable Unisys plicy. 9

13 CALCULATION OF SUB PAYMENTS SUB Payments will be payable after yur Separatin Date and until yu are n lnger eligible t receive SUB Payments, if yu meet all f the applicable cnditins in the Plan. The amunt f SUB Payments is determined as a weekly amunt. See pages 13 t 16 fr the descriptin f rules regarding the payment f SUB Payments, including the schedule n which SUB Payments will be paid, when SUB Payments will cmmence, and the prcedures fr cnfirming eligibility with TmS. The SUB Payments yu receive are based n: the number f weeks f SUB Payments yu are entitled t under the Plan, as described belw; the amunt f yur pay, as defined abve; the amunt f yur initial weekly state unemplyment cmpensatin benefits, as described belw; and whether a reductin fr any amunts yu we the Cmpany applies, as described belw. Number f Weeks f SUB Payments The number f weeks f SUB Payments yu will receive will depend n the fllwing factrs: yur service, as defined abve; whether the minimum f tw weeks f SUB Payments applies; whether the maximum f 26 weeks f SUB Payments applies. Generally, as nted in the fllwing table, yu are eligible fr SUB Payments f ne week fr each full year f service, with a minimum f 2 weeks and a maximum f 26 weeks. Yur SUB Payments will generally end if yu are n lnger eligible t receive state unemplyment cmpensatin benefits r if yu d nt prvide required infrmatin t TmS at the applicable times. See page 17 fr a mre detailed explanatin f when SUB Payments end. 10

14 Basic Frmula fr Number f Weeks f SUB Payments Full years f service (see definitin n page 8) Weeks f SUB Payments Less than ne year * 2 weeks 1 year, but less than 2 years 2 weeks 2 years, but less than 3 years 2 weeks 3 years, but less than 4 years 3 weeks 4 years r mre 1 week fr each full year f service, t a maximum f 26 weeks * Part-time emplyees with less than 60 days f service are nt eligible fr SUB Payments. Amunt f SUB Payments Generally, the amunt f yur SUB Payment fr each week yu are eligible fr SUB Payments is: yur pay, as defined abve; minus yur initial state unemplyment cmpensatin benefit. When yu begin t receive SUB Payments, the amunt f yur initial state unemplyment cmpensatin benefit will be estimated by TmS. This estimated amunt f yur state unemplyment cmpensatin benefit will be subtracted frm the amunt f yur pay t determine the amunt f the SUB Payments yu will receive. If the initial state unemplyment cmpensatin benefit yu actually receive is less than the amunt estimated by TmS, yu shuld cntact TmS as sn as pssible by calling the tll free phne number The SUB Payments yu receive will be adjusted based n the actual state unemplyment cmpensatin benefits yu receive, if TmS is able t verify the amunt f yur actual initial state unemplyment cmpensatin benefit. Yu will need t prvide a cpy f the check stub r payment cnfirmatin fr yur state unemplyment cmpensatin benefit t TmS t cnfirm that the amunt f yur state unemplyment cmpensatin benefit is different than the estimated amunt. N adjustment t the amunt f yur SUB Payments will be made if yu d nt, r cannt, prvide TmS with a cpy f the check stub r payment cnfirmatin fr yur state unemplyment cmpensatin benefit. If the initial state unemplyment cmpensatin benefit yu actually receive is less than the amunt estimated by TmS, yu will receive a lump sum payment t make up the difference between the reductin estimated by TmS and yur actual state unemplyment cmpensatin benefit fr any SUB Payments yu have received. Yur future SUB Payments, if any, will als be adjusted. The adjustment t yur SUB Payments t take int accunt yur actual initial state unemplyment cmpensatin benefits will be made after TmS receives yur check stub r payment cnfirmatin t verify the actual amunt and after the change is prcessed. The amunt f time it will take t prcess the adjustments t yur SUB Payments will depend n the circumstances. 11

15 If the amunt f yur state unemplyment cmpensatin benefit is changed after yu begin t receive state unemplyment cmpensatin benefits, the change will nt be applied t change the amunt f yur SUB Payments. The amunt f yur SUB Payments will nly be adjusted if the TmS estimate f yur initial state unemplyment cmpensatin benefit is incrrect. N subsequent adjustments t yur state unemplyment cmpensatin benefits will be applied t adjust the amunt f yur SUB Payments. Offset fr Amunts Owed t the Cmpany If yu we any amunts t the Cmpany at the time f an invluntary wrkfrce reductin r layff, the amunt f yur weekly SUB Payment is reduced by the amunt yu we the Cmpany. The amunt f the verpayment will be spread evenly ver the number f weeks f SUB Payments yu are entitled t, as determined under the table abve, and each SUB payment will be the net amunt. Fr example, assume Alex earns $ per week and he was paid by the Cmpany fr three weeks when he was absent, but his claim fr STD Plan benefits fr thse three weeks is denied. Alex has been verpaid fr a ttal f $1,500.00, and he wes the Cmpany fr that verpayment. Alex receives ntice f an invluntary layff when he has six years f service and befre he has repaid the Cmpany fr the amunt he wes. The amunt f his SUB Payment is reduced by $ per week ($1, divided by 6 weeks). Reminder: the amunt f SUB Payments is determined as a weekly amunt; the schedule fr payment and ther payment rules are described belw. 12

16 PAYMENT UNDER THE PLAN Timing f SUB Payments If yu are entitled t SUB Payments under the Plan, generally yu will receive SUB Payments n a biweekly basis. Hwever, the Plan Manager may determine that SUB Payments will be paid t yu n a mre frequent peridic basis (fr example, weekly) if the Plan Manager decides that is necessary t satisfy applicable rules f state law fr supplemental unemplyment benefits r fr ther reasns determined by the Plan Manager. If yur regular pay was paid via direct depsit t yur bank, yur SUB Payments will als be paid by direct depsit n a biweekly basis, and yur pay statements will be mailed t yur hme. If yur regular pay was nt paid via direct depsit, bth the checks fr yur SUB Payments and the accmpanying pay statements will be mailed t yur latest hme address n the Unisys recrds. Cmmencement f SUB Payments Generally, SUB Payments will be payable beginning immediately after yur Separatin Date. Hwever, if yu are a "specified emplyee" as defined in sectin 409A f the Internal Revenue Cde and the rules adpted by Unisys (that is, essentially, ne f the tp 50 fficers f Unisys and its affiliates ranked by cmpensatin) n yur Separatin Date: yur incme assistance benefits will begin n the first day f the seventh mnth fllwing yur Separatin Date, as required under sectin 409A f the Internal Revenue Cde; n that day, yu will receive a lump sum payment f the benefits that wuld therwise have been paid t yu during the first six mnths fllwing yur Separatin Date, and yur remaining benefits, if any, will be paid n a biweekly basis r as therwise described abve. Als, fr any emplyee wh becmes entitled t SUB Payments, if yu receive a payment fr accrued vacatin at the end f yur ntice perid, the cmmencement f yur SUB Payments may be delayed. Mst f the states in which the Cmpany has significant peratins disregard payments fr accrued vacatin fr purpses f eligibility fr state unemplyment cmpensatin benefits. If yu wrked in ne f thse states, yur SUB Payments will nt be delayed fr this reasn, even if yu receive a payment fr accrued vacatin. Hwever, sme states prvide that a payment fr accrued vacatin makes a persn ineligible fr state unemplyment cmpensatin benefits fr a perid f time. If yu wrked in ne f thse states and yu receive a payment fr accrued vacatin, the cmmencement f yur SUB Payments will be delayed. In states in which a delay applies, the perid f time that a persn is treated as ineligible fr state unemplyment cmpensatin benefits as a result f a payment fr accrued vacatin varies frm state t state. The perid can be as lng as the number f days fr which the payment is made, while in sme states the perid cincides with the state's waiting week, and ther states have different rules. 13

17 If yu receive a payment fr accrued vacatin at the end f yur ntice perid and that payment makes yu ineligible fr state unemplyment cmpensatin benefits fr any perid in the state in which yu wrked fr the Cmpany: Yu will receive a letter frm TmS shrtly after yur Separatin Date telling yu when yur SUB Payments will begin; and Yur SUB Payments will begin: when yu are eligible fr state unemplyment cmpensatin benefits, r when yu wuld have been eligible fr thse state benefits, except that yu are serving a waiting week r d nt have sufficient emplyment t be eligible fr the benefits under yur state's unemplyment cmpensatin system. Please nte: It is imprtant that yu prmptly submit yur final time reprt via Webtime r Jamis, as applicable, s that yur vacatin entitlement can be determined. Any delay in submissin culd delay the cmmencement f yur SUB Payments. Als, if yu are a specified emplyee, yur benefits will nt begin befre the first day f the seventh mnth fllwing yur Separatin Date. Cnfirmatin f Eligibility Please Make Nte f This Imprtant Infrmatin In rder fr yu t receive SUB Payments, yu are required t cnfirm with TmS, weekly, in a timely manner, that yu meet the cnditins fr eligibility. Specifically, yu will need t cnfirm t TmS in a timely manner, that: Yu are unemplyed, available fr wrk and eligible t receive state unemplyment cmpensatin benefits; r Yu wuld be eligible t receive state unemplyment cmpensatin benefits, except that yu D nt have sufficient emplyment t be cvered by yur state's unemplyment cmpensatin benefit system; Have exhausted yur state's unemplyment cmpensatin benefits; r Are serving a waiting week under yur state's unemplyment cmpensatin benefit system. In the persnalized package yu receive when ntice is given, yu will be given written directins n hw and when t cntact TmS t cnfirm yur eligibility t receive SUB Payments and additinal infrmatin n what actins yu may need t take under the Plan and when t cnfirm yur status and eligibility. Yu will be able t cntact TmS 24 hurs a day, seven days a week t update yur status by: calling a tll-free phne number ; r ging nline via the TmS website at 14

18 Generally, yu will have a set number f calendar days t cntact TmS and prvide the required infrmatin. The number f days yu will have will be specified in the persnalized package yu receive when ntice is given r in a fllw-up cmmunicatin frm TmS. If yu d nt cntact TmS within this perid, TmS will send yu a letter at yur last address n file at Unisys ntifying yu that it has nt received the necessary infrmatin frm yu (a "n-respnse letter"). Yu will have a set number f calendar days after the date f the n-respnse letter t cntact TmS and prvide the required infrmatin. If yu d nt cntact TmS within the required time after the nrespnse letter, yur SUB Payments will stp and will nt begin again. Yu are required t prvide accurate and cmplete infrmatin t TmS regarding yur emplyment status at the required times. The prper payment f Plan benefits and tax treatment f Plan benefits is dependent n TmS receiving this infrmatin frm yu in a timely manner. Yur peridic cnfirmatins are subject t audit by TmS r Unisys. Failure t prvide truthful and cmplete infrmatin culd result in yur lss f SUB Payments retractive t the last verifiable date f eligibility. Wrk Elsewhere The prvisins fr receiving regular pay during the ntice perid and SUB Payments after the ntice perid are intended t prvide yu with a financial bridge t yur next perid f emplyment. In exchange, yu agree t ntify the Plan Manager (by cntacting TmS) in a timely manner if yu becme emplyed r self-emplyed during yur ntice perid r while yu are receiving SUB Payments. If yu btain emplyment elsewhere, including self-emplyment, in a capacity that makes yu ineligible t receive state unemplyment cmpensatin benefits, yu are nt entitled t receive further SUB Payments. Als, if yu were a part-time emplyee f the Cmpany befre the wrkfrce reductin r layff and yu btain emplyment elsewhere in any capacity, including a capacity that may nt cut ff yur eligibility fr state unemplyment cmpensatin benefits, yu are nt entitled t further SUB Payments. TmS will assist the Plan Manager with updating recrds fr individuals receiving SUB Payments wh btain new jbs. Therefre, whenever yu btain a new jb, either during yur ntice perid r while yu are receiving SUB Payments, yu must cntact TmS immediately, but n later than three calendar days after the start date f yur new jb, t prvide infrmatin n yur new emplyment. Yu must cntact TmS at the required time t prvide this infrmatin even if yu are aware r believe that the new emplyment will nt cut ff yur eligibility fr state unemplyment cmpensatin benefits. Yu will be able t prvide the infrmatin t TmS in a timely manner via its website at r by calling its tll-free telephne number: Surce f SUB Payments Yur SUB Payments are paid frm a trust fund that Unisys has established t fund the SUB Payments under the Plan. The Cmpany will make all cntributins t the trust necessary t fund the SUB Payments. The cntributins the Cmpany makes t the trust t fund SUB Payments are nt wages fr any purpse. 15

19 Tax Treatment f SUB Payments The SUB Payments are intended t be exempt frm withhlding fr federal Scial Security and Medicare taxes (tgether, knwn as FICA taxes), and FICA taxes will nt be withheld frm SUB Payments. SUB Payments are als designed t be exempt frm certain state and lcal taxes in thse states r lcalities that have exemptins fr supplemental unemplyment cmpensatin benefits. Hwever, apprval f the apprpriate state r lcal authrity is needed befre these tax exemptins can be applied. Fr that reasn, state and/r lcal taxes will be withheld frm SUB Payments in each area until Unisys has btained any necessary apprval f a state r lcal authrity t stp tax withhlding frm SUB Payments fr a particular area. All amunts withheld fr taxes will be shwn n the statement yu receive reflecting each SUB Payment. Nte: Because Unisys cannt give tax r legal advice, yu are strngly urged t cnsult yur wn persnal tax r legal advisrs t determine hw t treat any SUB Payments fr tax purpses. Right t SUB Payments Emplyees and frmer emplyees have n rights r interest in benefits under the Plan r under the trust fund assciated with the Plan until all the cnditins fr eligibility fr SUB Payments are met, as described in the Plan. Als, SUB Payments will be discntinued if the requirements fr cntinued payment, including, but nt limited t, prviding status updates t TmS in a timely manner, are nt met, as described in the Plan. 16

20 WHEN SUB PAYMENTS END Yur SUB Payments end at the earliest f when yu: receive the number f weeks due under the basic frmula in the table abve (up t a maximum f 26 weeks); are reemplyed by the Cmpany; decline an ffer f alternate emplyment with Unisys, ne f its U.S. subsidiaries, r a successr emplyer within the same general gegraphic area; die during the perid SUB Payments wuld therwise be made; btain any ther emplyment, if yu were a part-time emplyee f the Cmpany; r btain ther emplyment that makes yu ineligible t receive state unemplyment cmpensatin benefits r becme ineligible t receive state unemplyment cmpensatin benefits fr any ther reasn, ther than that yu D nt have sufficient emplyment t be cvered by yur state's unemplyment cmpensatin benefits system; Have exhausted yur state's unemplyment cmpensatin benefits; r Are serving a waiting week under yur state's unemplyment cmpensatin benefits system. Yur SUB Payments will als stp if yu d nt cntact TmS via its website r its tll-free phne number t update yur status with the necessary infrmatin at the required time. Yur SUB Payments will nt stp if yu becme disabled after yur SUB Payments cmmence, even if the disability makes yu ineligible fr state unemplyment cmpensatin benefits. Hwever, while yu are disabled, yu must cntinue t cntact TmS via its website r its tll-free phne number t cnfirm yur disability status. If yu d nt cntact TmS at the required time with the infrmatin necessary t verify yur disability, as required by the Plan Manager in his r her discretin, yur SUB Payments will stp. Als, if yu die while yu are receiving SUB Payments, althugh yur SUB Payments will stp, yur beneficiary will be eligible t receive benefits under the Incme Assistance Plan instead. The number f weeks f Incme Assistance Plan benefits payable t yur beneficiary will generally be equal t the remaining number f weeks f SUB Payments that wuld have been paid if yu had nt died. 17

21 UNEMPLOYMENT COMPENSATION Yur eligibility fr state unemplyment cmpensatin benefits while yu are cllecting ntice pay r SUB Payments is determined by the prvisins f law f the state regulating these payments. Check with yur lcal emplyment security cmmissin r unemplyment cmpensatin benefits ffice prmptly t determine if and when yur state allws yu t receive unemplyment cmpensatin benefits and when yu shuld apply. CHANGE IN ADDRESS While yu are receiving SUB Payments, it is imprtant fr yu t ntify Unisys prmptly f any change in yur address t avid any disruptin t the benefit payment prcess. Yu shuld cntact the Unisys Benefits Service Center (UBSC) at t reprt an address change. The UBSC is generally available Mnday thrugh Friday (excluding hlidays), 9:00 a.m. t 5:00 p.m., Eastern time ("ET"). OTHER BENEFITS Sme f yur ther benefits may cntinue t be available fr a perid f time beynd yur Separatin Date. Sme benefit cverages may end as f yur last day wrked, and sme cverages may be extended if yu cntinue t pay the cst f cverage. Details n hw yur benefit cverages are affected are prvided in the persnalized package yu receive at the time ntice f a wrkfrce reductin r layff is given. 18

22 ADDITIONAL PLAN INFORMATION The fllwing are cntacts fr answers t questins abut the Plan. On all crrespndence, reference yur name, Unisys emplyee ID number and current mailing address. If yu are nt the emplyee, include the name, current mailing address and Unisys emplyee ID number f the Unisys emplyee. Ttal management Slutins, Inc. ("TmS") 175 Mansfield Avenue P.O. Bx 394 Nrtn, MA Phne: Fax: Unisys Crpratin Unisys Way, M/S E6-123 Blue Bell, PA Phne: OFFICIAL PLAN NAME AND PLAN NUMBER Unisys Supplemental Unemplyment Benefits Plan Plan Number 556 PLAN SPONSOR Unisys Crpratin Unisys Way, M/S E6-123 Blue Bell, PA EMPLOYER IDENTIFICATION NUMBER OF THE PLAN SPONSOR PLAN YEAR All fiscal recrds are kept n a calendar-year basis, beginning n January 1 and ending n December 31. TYPE OF PLAN The Plan is an emplyee welfare benefit plan that is cnsidered a severance plan under the Emplyee Retirement Incme Security Act f 1974, as amended ("ERISA"). The Plan is designed t be a supplemental unemplyment benefits plan under sectin 501(c)(17) f the Internal Revenue Cde. 19

23 PLAN ADMINISTRATIVE INFORMATION Yu can get infrmatin abut the Plan by calling PLAN ADMINISTRATOR The plan administratr has authrity t cntrl and manage the peratin and administratin f the Plan. All final decisins regarding the administratin and interpretatin f the Plan are made by the plan administratr r its designee. The plan administratr has the discretinary authrity t supply missins, reslve ambiguities, make factual determinatins, and t decide any dispute that may arise regarding the rights f participants, including the sle discretinary authrity t grant r deny benefits under this Plan. All such decisins are binding and cnclusive n all interested parties and will be subject t review nly fr abuse f discretin. The Plan Manager is the plan administratr fr the Plan. The Plan Manager has delegated the respnsibility fr making certain determinatins relating t Plan benefits and ther administrative functins t TmS, as further described in this bklet. The name and address f the plan administratr fr purpses f the Plan, including fr purpses f prcessing benefits requests, is: Plan Manager Unisys Crpratin Unisys Way, M/S E6-123 Blue Bell, PA Phne: PLAN AND SPD This bklet serves as the plan dcument and summary plan descriptin fr the Plan. The adptin f the Plan and the prvisin f SUB Payments under the Plan by Unisys des nt imply the creatin f a cntract f emplyment between the Cmpany and any emplyee r an bligatin n the part f the Cmpany t cntinue the present r future level f SUB Payments. HOW TO FILE A CLAIM OR AN APPEAL FOR SUB PAYMENTS If yu disagree with the determinatin made regarding a request fr SUB Payments r cntinuatin f SUB Payments, yu may be able t satisfactrily reslve the disagreement by calling Unisys at If yu are nt successful in arriving at a satisfactry reslutin, there is a frmal way t file a written claim fr benefits under the Plan. 20

24 If Yu Want t File a Claim fr SUB Payments. If yu r yur beneficiary believe that the Plan has failed t prvide yu r yur beneficiary with any benefit t which yu are entitled, yu, yur beneficiary r yur duly authrized representative may prmptly file a written claim with the Plan Manager. In the case f a claim fr benefits that is whlly r partially denied, the Plan Manager will prvide yu with ntice f the decisin n the claim within 90 days after the claim has been received (r within 180 days in the event f special circumstances if the Plan Manager furnishes ntice f the extensin befre the end f the initial 90-day perid, including the reasn fr the extensin f time and the date by which a decisin is expected). A ntice f the denial f a claim, in whle r in part, will set frth: The specific reasn r reasns fr the denial; Reference t the specific Plan prvisins upn which the denial is based; A descriptin f any additinal material r infrmatin needed fr yu t perfect yur claim and an explanatin f why such material r infrmatin is necessary; and An explanatin f the Plan's appeal prcedures (which are set frth belw) and the time limits applicable t appeals, including a statement f yur right t bring a civil actin under sectin 502(a) f ERISA fllwing an adverse benefit determinatin n appeal. If Yu Want t File an Appeal fr SUB Payments. Within 60 days f the receipt f a ntice denying a claim, yu, yur beneficiary, r yur duly authrized representative may request, in writing, a full review f the claim denial by the Unisys Emplyee Benefits Administrative Cmmittee (the "Cmmittee"). In cnnectin with any such review, yu, yur beneficiary, r yur duly authrized representative will be prvided, upn request and free f charge, reasnable access t, and cpies f, all dcuments, recrds, and ther infrmatin relevant t the claim fr benefits, and may submit t the Cmmittee written cmments, dcuments, recrds r ther infrmatin relating t yur claim fr benefits. The Cmmittee's review will take int accunt all written cmments, dcuments, recrds r ther infrmatin submitted relating t yur claim fr benefits, withut regard t whether such infrmatin was submitted r cnsidered in the initial benefit claim determinatin. The Cmmittee will make a decisin within 60 days after yur request fr a review is received (r within 120 days in the event f special circumstances if the Cmmittee furnishes ntice f the extensin befre the end f the initial 60-day perid, including the reasn fr the extensin f time and the date by which a decisin is expected). The Cmmittee's decisin will be final and binding n all parties. A final ntice f the denial f the claim n appeal, in whle r in part, will set frth: The specific reasn r reasns fr the denial; Reference t the specific Plan prvisins upn which the denial is based; Yur right t, upn request and free f charge, reasnable access t, and cpies f, all dcuments, recrds and ther infrmatin relevant t the claim fr benefits; and 21

25 A statement f yur right t bring a civil actin under sectin 502(a) f ERISA fllwing a denial f yur appeal. Appeals that are nt filed in a timely manner will be barred. As stated abve, the Cmmittee's decisin n appeal will be final and binding n all parties. If yu r yur beneficiary decide t challenge the appeal decisin f the Cmmittee, a review by a curt f law shall be limited t the facts, evidence, and issues presented during the claim and appeal prcess described abve. The claim and appeal prcess described abve must be exhausted befre yu r yur beneficiary can pursue the claim in Federal r state curt. Issues nt raised by yu r yur beneficiary during the claim and appeal prcess described abve shall be deemed waived. RIGHT TO RECOVER EXCESS PAYMENTS If payments are made in excess f the benefits due under the Plan, the trust fund fr the Plan has the right t recver these excess payments frm any persn t whm the excess payments are made. In additin, if excess payments are made t yu, and upn request t d s yu fail t return the excess payments t the trustee, further payments under the Plan and/r under the Incme Assistance Plan are withheld until the full excess payment amunt is recvered. CASE REVIEW The Plan Manager and TmS and their delegates reserve the right t request cpies f any dcumentatin cnsidered necessary t apply the prvisins f the Plan in determining benefits payable. Further, fr the determinatin f benefits payable under the Plan, the services f a thirdparty administratr, such as TmS, r anther service prvider may be retained t examine and prvide advice regarding any facts, recrds r dcumentatin relating t yur claim fr benefits. FUNDING OF SUB PAYMENTS SUB Payments are prvided frm a trust fund established by Unisys t pay these benefits. The name and address f the trustee are: The Bank f New Yrk One Wall Street 12 th Flr New Yrk, NY The Unisys Pensin Investment Review Cmmittee is respnsible fr all matters relating t the cntrl and management f Plan assets t the extent nt assigned t the trustee in the trust agreement r ther instrument. The Unisys Pensin Investment Review Cmmittee is respnsible fr the selectin f an investment manager and the trustee and the mnitring f the perfrmance f the investment manager and trustee. ADMINISTRATIVE COSTS All reasnable expenses related t the administratin and peratin f the Plan (including, but nt limited t, payment fr utside legal, accunting, and ther necessary services), t the extent nt paid by Unisys, are payable frm the trust fund. 22

26 APPOINTMENT/REMOVAL OF PLAN MANAGER AND COMMITTEE MEMBERS The Plan Manager, the Cmmittee and the Unisys Pensin Investment Review Cmmittee are appinted and may be remved by the Bard f Directrs f Unisys (the "Bard"). The Plan Manager and persns appinted t the Cmmittee r the Unisys Pensin Investment Review Cmmittee may be, but need nt be, emplyees f the Cmpany. The Plan Manager and any Cmmittee r Unisys Pensin Investment Review Cmmittee member may resign by giving written ntice t the Bard, which ntice shall be effective 30 days after delivery. AGENT FOR LEGAL PROCESS Unisys hpes that any disagreement yu have with the Plan can be reslved withut resrting t legal prcess. If yu wish t begin legal prceedings, hwever, service f legal prcess may be made n the Plan Manager r n the trustee at the relevant addresses listed abve. GOVERNING LAW Except t the extent superseded by ERISA, all questins pertaining t the validity, cnstructin and peratin f the Plan are determined in accrdance with the laws f the Cmmnwealth f Pennsylvania withut regard t any chice f law prvisins, and all questins pertaining t the validity, cnstructin and peratin f the trust are determined in accrdance with the laws f the State f New Yrk withut regard t any chice f law prvisins. YOUR RIGHTS UNDER ERISA As a participant in this Plan, yu are entitled t certain rights and prtectins under ERISA. ERISA prvides that all Plan participants shall be entitled t: Receive Infrmatin Abut Yur Plan and Benefits examine, withut charge, at the plan administratr's ffice and at ther specified lcatins, such as wrksites, during nrmal wrking hurs, all dcuments gverning the Plan, including trust agreements, and a cpy f the latest annual reprt (IRS Frm 5500) filed with the U.S. Department f Labr and available at the Public Disclsure Rm f the Emplyee Benefits Security Administratin; btain, upn written request t the plan administratr, cpies f all dcuments gverning the peratin f the Plan and cpies f the latest annual reprt (IRS Frm 5500) and updated summary plan descriptin. The administratr may make a reasnable charge fr the cpies; and receive a summary f the Plan's annual financial reprt. The plan administratr is required by law t furnish each participant with a cpy f this summary annual reprt. Prudent Actins by Plan Fiduciaries In additin t creating rights fr Plan participants, ERISA impses duties upn the peple wh are respnsible fr the peratin f an emplyee benefit plan. 23

27 The peple wh perate the Plan, called "fiduciaries" f the Plan, have a duty t d s prudently, in yur interest and that f all participants and beneficiaries. N ne, including Unisys, may terminate yur emplyment r therwise discriminate against yu in any way t prevent yu frm btaining a Plan benefit t which yu are entitled r exercising yur rights under ERISA. Enfrce Yur Rights If yur claim fr a Plan benefit is denied r ignred, in whle r in part, yu have a right t knw why this was dne, t btain cpies f dcuments relating t the decisin withut charge, and t appeal any denial, all within certain time schedules. Under ERISA, there are steps yu can take t enfrce the preceding rights. Fr instance, if yu request a cpy f Plan dcuments r the latest annual reprt frm the Plan and d nt receive them within 30 days, yu may file suit in a Federal curt. In such a case, the curt may require the plan administratr t prvide the materials and pay yu up t $110 a day until yu receive the materials, unless they were nt sent r received because f reasns beynd the cntrl f the administratr. If yu have a claim fr benefits which is denied r ignred, in whle r in part, yu may file suit in a state r Federal curt. If it shuld happen that Plan fiduciaries misuse the Plan's mney, r if yu are discriminated against fr asserting yur rights, yu may seek assistance frm the U.S. Department f Labr, r yu may file suit in a Federal curt. The curt will decide wh shuld pay curt csts and legal fees. If yu are successful, the curt may rder the persn yu have sued t pay these csts and fees. If yu lse, the curt may rder yu t pay these csts and fees, fr example, if it finds yur claim is frivlus. Assistance with Yur Questins If yu have questins abut yur Plan, yu shuld cntact the plan administratr r his r her delegate. If yu have any questins abut this statement r abut yur rights under ERISA, r if yu need assistance in btaining dcuments frm the plan administratr, yu shuld cntact the nearest ffice f the Emplyee Benefits Security Administratin, U.S. Department f Labr, listed in yur telephne directry r: Divisin f Technical Assistance and Inquiries Emplyee Benefits Security Administratin U.S. Department f Labr 200 Cnstitutin Avenue, N.W. Washingtn, D.C Yu may als btain certain publicatins abut yur rights and respnsibilities under ERISA by calling the publicatins htline f the Emplyee Benefits Security Administratin. 24

28 PLAN TERMINATION OR AMENDMENT Unisys reserves the right t amend the Plan. This right includes the authrity t mdify the eligibility rules, levels f benefits payable, r any ther term r cnditin f the Plan. The decisin by Unisys t change the Plan may be due t changes in Federal r state laws gverning welfare benefits, the requirements f the Internal Revenue Cde r ERISA r any ther reasn. If Unisys makes a change r terminates the Plan, it may decide t establish a different plan prviding similar r identical benefits. Unisys als reserves the right t terminate the Plan fr any reasn. Shuld the Plan be terminated, cverage fr all participants wuld end. If Unisys amends r terminates the Plan, any assets f the trust fund established t make SUB Payments will remain in the trust fund and will cntinue t be used t make any SUB Payments that remain due. The trust fund has been established fr the exclusive purpse f making SUB Payments. N assets f the trust fund can r will be returned t Unisys unless all liabilities fr SUB Payments under the Plan have been satisfied and the return f any remaining assets is permitted under bth ERISA and sectin 501(c)(17) f the Internal Revenue Cde. 25

29 ADDITIONAL INFORMATION ON THE NOTICE OF WORKFORCE REDUCTION PROVISIONS If yur emplyment is terminated as a result f an invluntary wrkfrce reductin r layff and yu are eligible under the Unisys Supplemental Unemplyment Benefits Plan (the "SUB Plan"), yu are als eligible fr advance ntice f the wrkfrce reductin r layff. The time frm the date f the ntice t and including the Separatin Date is the ntice perid. The ntice perid is at least 2 weeks. The ntice perid culd be lnger if Federal, state r lcal law requires a lnger ntice. DEFINITIONS See the definitins f the terms "date f ntice," "ntice perid," and "pay" n page 7 f the SUB Plan t determine the amunt f pay yu will receive during the ntice perid. Als, see the SUB Plan fr the definitins f the terms "Unisys," "Cmpany," "Separatin Date," "STD," "FMLA," and "military leave." The term "SUB Payments" means payments made under the SUB Plan that are intended t supplement state unemplyment cmpensatin benefits fr eligible emplyees f the Cmpany whse emplyment is terminated as a result f any invluntary wrkfrce reductin r layff and wh meet ther cnditins described in the SUB Plan. PAY DURING THE NOTICE PERIOD Thrughut the ntice perid, yu remain n the active payrll and yur paychecks are distributed n yur nrmal pay cycle dates (that is, n a biweekly r mnthly basis). Unisys may require that yu cntinue t reprt t wrk fr all r part f the ntice perid. Failure t reprt fr wrk n scheduled wrkdays is subject t the same attendance requirements as fr ther active emplyees. Unisys may determine that yu are nt required t cntinue t reprt t wrk fr the entire ntice perid. Yur ntice pay ends if yu vluntarily resign, including, but nt limited t, by btaining alternate emplyment r electing t retire, are released due t unsatisfactry jb perfrmance, are discharged, are n an unpaid apprved leave f absence, r die n r befre yur Separatin Date. In thse cases, yur last day wrked determines when yur pay ends. Yu must prmptly ntify Ttal management Slutins, Inc. ("TmS") if yu btain ther emplyment during r after yur ntice perid as described n page 15 f the SUB Plan. 1