HR Support Center 855.GO.MCKHR Press 1 Oprime 1

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1 Long Term Disability Plan Summary Plan Description Effective April 1, 2018

2 Introduction Losing your ability to work can be devastating to you and your family s emotional and financial well-being. If you become totally disabled as the result of an accident or sickness that occurs on or off the job, the Long Term Disability (LTD) plan can provide income protection for you and your family. We hope the information provided in this summary plan description (SPD) answers most of the questions you have regarding your LTD benefits. Although provisions of the LTD plan are summarized in this SPD, this summary doesn t state all of the plan s terms and conditions. The information provided here doesn't cover every situation. This SPD isn't intended to replace the group policy or to change its meaning. In all cases, the group policy and not this summary governs benefits under the plan. When you need assistance or have specific questions, contact the resources listed on the back cover of this SPD. The benefits described in this SPD are available to eligible employees of McKesson Corporation. While the LTD plan is expected to continue, McKesson Corporation reserves the right to amend, suspend, or terminate the plan at any time. The plan s terms cannot be modified by written or oral statements to you from human resources representatives or other personnel. Where conflict exists, the terms as set forth in the group policy govern. Refer to the Glossary (p. 26) for definitions of terms used in this SPD that may be unfamiliar to you or that have unique meanings under the plan. HR Support Center 855.GO.MCKHR ( ) Your source for benefits information and gateway to an advocate. Press 1 for Health, Vitality and Pension questions. Benefit experts are available: 7 a.m. - 6 p.m. Central time, M-F. Oprime 1 para asistencia en español a través del McKesson Benefits Center. 2

3 What s Inside Plan Highlights 4 Quick Guide to Long Term Disability Coverage 5 How to File a Disability Claim 7 Frequently Asked Questions Long Term Disability Benefits 8 Long Term Disability Benefits Circumstances That May Affect Benefits 11 Other Income Benefits 12 Workers Compensation Limitations and Exclusions 13 Limitations 13 Exclusions Claim Information 14 How to File a Claim General Provisions 18 Authority for Interpretation of This Plan Appendix 19 Appendix A Eligibility and Cost 20 Appendix B Enrollment 21 Appendix C Termination of Coverage 23 Appendix D Administrative Information 24 Appendix E Your Rights Under the Plan Glossary 26 Glossary 3

4 Plan Highlights Quick Guide to Long Term Disability Coverage Benefits under this plan are payable if you re ill or injured and unable to work for more than 180 consecutive calendar days. Depending on your current status, you may or may not need to file a claim for LTD benefits. If you re eligible for and are receiving short term disability (STD) benefits, contact Cigna to see if any additional information is needed to transition your claim from STD to LTD. If you re not eligible for STD benefits, file a claim with Cigna as soon as you think your absence for a disability may last longer than 180 days. File your claim by calling Cigna (the LTD insurance company) at Cigna (24462) or apply online at Cigna.com/customer-forms. Submit proof of your claim and authorize your physician to release information about your medical condition to Cigna. If you re eligible, you: Receive benefits for the period beginning on the 181st day of your disability. Your benefit amount is equal to a percentage of your predisability earnings minus earnings from other income. Continue receiving benefits up to age 65 (or longer depending on your age at the time you become disabled) as long as you continue to provide Cigna proof of your disability. 4

5 Plan Highlights How to File a Disability Claim Filing Your Long Term Disability Claim Contact Cigna File your claim by calling Cigna at CIGNA (24462) or apply online at Cigna.com/customer-forms. If you re currently receiving STD benefits, contact Cigna to see if any additional information is needed to transition your claim from STD to LTD. Be prepared to provide this information: Your personal information Social Security Number Name Address Phone number Birth date address, if available Your manager s information Name Phone number address, if available Your medical information Symptoms Date symptoms began Diagnosis Your doctors information Names Dates of visits Phone numbers Fax numbers addresses, if available Whether you're receiving any benefits such as: Workers Compensation Social Security Unemployment State Disability What happens next? A Cigna Claim Manager, who is your main contact during your disability, contacts you to answer your questions and discuss the claim process. You must sign and return a Disclosure Authorization Form. You may obtain this form from your Cigna Claim Manager or at notices-of-privacy-practices/disability-and-accident-life-forms/customer-authorizationform.pdf. This form gives your doctor permission to release needed medical information to Cigna. 5

6 Plan Highlights Filing Your Long Term Disability Claim (continued) What happens next? How do I get paid? You receive a series of notice letters from Cigna to keep you informed of the status of your claim: When your claim is opened When more information is required When your claim is approved or denied When your claim is extended When your claim is closed Cigna notifies McKesson of the approval/denial of your claim. Your LTD benefits are paid by Cigna. Following the waiting period, the benefit paid is generally 60% of basic monthly earnings. This benefit can be paid until age 65 (or later if you become disabled on or after age 63), as long as you remain disabled, as determined by Cigna. All LTD benefits are offset by other types of payments, such as state disability insurance, workers compensation and/or Social Security benefits. 6

7 Plan Highlights Frequently Asked Questions Coverage If I m disabled for only a few weeks, can I receive benefits? The LTD plan covers only eligible disabilities that continue for more than 180 days. If you are disabled for a few weeks, ask your supervisor if you re eligible for benefits under the Company s STD Plan. Benefits How much does the LTD plan pay? Generally, you receive 60% of your predisability earnings, not to exceed $25,000 per month, minus other income benefits. What are other income benefits? These are amounts you receive from other plans such as state disability insurance, Social Security, workers compensation, or retirement plans, as well as earnings from any employment during your disability. Why are benefits reduced by benefits from other income? Benefits are reduced to avoid duplication of benefit payments for the same disability. How do my benefits work together during a disability? The following illustration shows an example of how your benefits might work together. Disability Coverages If you become disabled, a number of disability benefits may continue part of your earnings for limited periods of time. The following illustration shows which benefits may be available during different times. Date of Disability How Long Term Disability Benefits Work Together Up to 100% of Earnings Long Term Disability (LTD) Plan Benefits 60% of Earnings Social Security Benefits State Disability Benefits (CA, HI, NJ, NY, RI only) Social Security Benefits Continues Months Paid time off (PTO) and STD plan benefits; depending on job classification and length of service, benefits may provide 0% to 100%-of-pay replacement lasting from a few days up to 26 weeks. State disability benefits for eligible employees continue up to 26 weeks in Hawaii, New Jersey, and New York; 30 weeks in Rhode Island; and 52 weeks in California. How long can I receive benefits? Generally, benefits are available up to age 65 (subject to your providing proof of your continuing disability). Exceptions apply if you re age 63 or older when you become disabled. Claims How do I submit a claim? Simply contact Cigna at and select option 1 or online at Cigna.com/customer-forms. You need to have specific information when you contact Cigna see the Claim Information section of this SPD. What if I m already receiving STD benefits? You don t need to file a separate LTD claim. Cigna contacts you if there is any additional information required to transition your claim from STD to LTD. Is there a deadline for submitting a claim? Yes. Generally, you must submit your claim within 31 days of the date of the loss on which the claim is based. Exceptions apply if it isn t reasonably possible to meet this deadline contact Cigna for further information. Can I visit my own doctor to obtain proof of disability? Yes. You can visit any licensed doctor you choose. Under certain circumstances you may be required to have an examination by a specified physician or vocational expert. You re notified if this applies to you. What do I need to provide as proof of my disability? Your proof must specify the date your disability started, the cause of your disability, and the degree of your disability. Cigna lets you know acceptable formats for submitting your proof. What is the Disclosure Authorization Form? You may obtain this form from your Cigna Claim Manager or on Cigna s website at Cigna%20notices-of-privacy-practices/disability-and-accidentlife-forms/customer-authorization-form.pdf. Your completion of this form allows your doctor to provide information to Cigna about your disability. Cigna may periodically ask you for an update. Direct communication between Cigna and your doctor significantly improves claims processing time. Social Security benefits may be available after you have been disabled for five months. After 180 days of disability, LTD benefits make up the difference between other benefits and 60% of your predisability earnings. The minimum benefit is $50 if other benefits exceed the 60% level. The maximum benefit is $25,000 per month. 7

8 Long Term Disability Benefits Long Term Disability Benefits The LTD plan provides monthly benefits if you re unable to work as a result of a covered disability lasting more than 180 consecutive days. To be eligible for benefits under the plan, your injury or sickness must occur, and your disability must begin, while you're covered under the plan. Benefits are payable after Cigna approves your claim and if you have completed your elimination period, are under the appropriate care of a physician, and meet all other terms and conditions of the LTD plan. The LTD benefits are shown in the Schedule of Benefits. Disability Defined Disability or disabled means that: During the elimination period and the next 24 months of disability: you re unable to perform the material duties of your regular occupation solely because of an injury or sickness, and are unable to earn 80% or more of your indexed earnings* from working in your regular occupation. After benefits under the plan have been payable for 24 months, you qualify for Social Security Disability benefits solely due to injury or sickness. If you do not qualify for Social Security Disability benefits solely because of age, you are disabled if you would otherwise qualify for those benefits. A loss of a license for any reason does not, in itself, constitute disability. Cigna determines whether your injury or sickness meets the definition of disability. * See Glossary p. 29 for description of indexed earnings." Elimination Period (Waiting Period) The elimination or waiting period is the period of time you must be continuously disabled before disability benefits are payable. A period of disability is not continuous if separate periods of disability result from unrelated causes. Before LTD benefits begin, you must satisfy a benefit waiting period of 180 consecutive calendar days. Schedule of Benefits The LTD plan provides for a gross disability benefit of 60% of your basic monthly earnings rounded to the nearest dollar (not to exceed the maximum disability benefit of $25,000 per month). The minimum benefit is $50 per month. For example, Mary is regularly scheduled to work 40 hours per week and is paid monthly earnings of $4,000. Mary s monthly gross disability benefit is as follows: Disability Begins 180 Day Waiting Period No LTD benefits Mary may receive pay from her paid time off (PTO) and STD plan benefits LTD Benefits Begin Beginning on 181st day of disability 60% of salary $2,400 per month The disability benefit payable to you is determined using your gross disability benefit, other income benefits, the calculation for optimum ability (p. 10) and the return-to-work incentive. During any month you have no disability earnings, the monthly benefit payable is the gross disability benefit reduced by other income benefits and by the calculation for optimum ability. During any month you have disability earnings, benefits are determined under the return to work incentive. Cigna pays the minimum benefit shown in the Schedule of Benefits regardless of any reductions made for other income benefits. The minimum benefit doesn t apply if benefits are being withheld to recover an overpayment of benefits. 8

9 Long Term Disability Benefits When Benefits End Benefits end on the earliest of the following dates: The date you earn, from any occupation, more than the percentage of indexed earnings set forth in the definition of disability applicable to you at that time; The date Cigna determines you're not disabled; The end of the maximum benefit period; The date you die; The date you refuse, without good cause, to fully cooperate in all required phases of the rehabilitation plan and assessment; The date you re no longer receiving appropriate care; The date you fail to cooperate with Cigna in the administration of the claim. Such cooperation includes, but is not limited to, providing any information or documents needed to determine whether benefits are payable or the actual benefit amount due. Benefits may be resumed if you begin to cooperate fully in the rehabilitation plan within 30 days of the date benefits are terminated. Tax Liability A portion of your benefit payments under the plan are considered taxable income, based on current federal and state tax regulations. Benefit Periods of Less Than a Month Your benefit is paid on a prorated basis for any period of disability that doesn t extend through a full month. The rate is 1/30th per day for that period of disability. For example, if Mary is eligible for a monthly benefit amount of $2,400 and is eligible for benefits for only 15 days in May, her benefit amount for May is $1,200 ($2,400 divided by 30 days multiplied by 15 days). Maximum Benefit Period The maximum benefit period depends on your age at the time you become disabled. Your Age When Disability Begins Age 62 or under Maximum Benefit Period To age 65 or a minimum 42 months months months months months months months 69 or older 12 months Return to Work Incentive Your monthly payable benefit is calculated as follows during the first 24 months disability benefits are payable and you have disability earnings: 1. Add your gross disability benefit and disability earnings. 2. Compare the sum from 1. to your indexed earnings. 3. If the sum from 1. exceeds 100% of your indexed earnings, then subtract the indexed earnings from the sum in Your gross disability benefit is reduced by the difference from 3., as well as by other income benefits and the calculation for optimum ability. 5. If the sum from 1. does not exceed 100% of your indexed earnings, your gross disability benefit is reduced by other income benefits and the calculation for optimum ability. After disability benefits are payable for 24 months, the monthly benefit payable is the gross disability benefit reduced by other income benefits, the calculation for optimum ability and 50% of disability earnings. No disability benefits are paid, and insurance ends if it's determined that you re able to work under a modified work arrangement and you refuse to do so without good cause. 9

10 Long Term Disability Benefits Calculation for Optimum Ability The calculation for optimum ability is performed by taking the amount of income you could earn if working at your optimum ability and reducing that by actual disability earnings, if any. Successive Period of Disability A separate period of disability is considered continuous: If it results from the same or related causes as a prior disability for which benefits were payable; and If, after receiving disability benefits, you return to work in your regular occupation for less than six consecutive months; and If you earn less than the percentage of indexed earnings that would still qualify you to meet the definition of disability/ disabled during at least one month. Any later period of disability, regardless of cause, that begins when you're eligible for coverage under another group disability plan provided by any employer isn't considered a continuous period of disability. Survivor Benefit If you die while receiving monthly LTD benefits, a lump sum benefit is paid to your eligible survivor. This survivor benefit is an amount equal to three times your last monthly benefit. Your last monthly benefit is the monthly benefit paid to you immediately prior to your death without any reduction for earnings received from employment. An eligible survivor is your lawful spouse or domestic partner, if living. If you do not have a spouse or domestic partner, the survivor benefit is paid to your surviving children in equal shares. "Children" means your unmarried children under age 21 who are chiefly dependent upon you for support and maintenance. "Children" includes a stepchild living with you at the time of your death. If you don t have a spouse or children, the survivor benefit is paid to your estate. The survivor benefit pays a lump sum benefit if you die while receiving benefits under the plan. For any separate period of disability, which isn't considered continuous, you must satisfy a new elimination period. Rehabilitation During a Period of Disability If Cigna determines that you re a suitable candidate for rehabilitation, you may participate in a rehabilitation plan and assessment at Cigna s expense. Cigna has the sole discretion to approve your participation in a rehabilitation plan and to approve a program as a rehabilitation plan. Cigna works with you, McKesson, your physician and others, as appropriate, to perform the assessment, develop a rehabilitation plan, and discuss return to work opportunities. The rehabilitation plan may, at Cigna s discretion, allow for payment of your medical expense, education expense, moving expense, accommodation expense, or family care expense while you participate in the program. 10

11 Circumstances That May Affect Benefits Other Income Benefits You may be eligible for benefits from other income sources. If so, Cigna may reduce the disability benefits by the amount of such other income sources, which include: Any amounts received (or assumed to be received) by you or your dependents under: - The Canada and Quebec Pension Plans; - The Railroad Retirement Act; - Any local, state, provincial or federal government disability or retirement plan or law payable for injury or sickness provided as a result of employment with McKesson; - Any sick leave or salary continuation plan of McKesson; - Any work loss provision in mandatory No-Fault auto insurance; Any Social Security disability or retirement benefits you or any third party receives (or is assumed to receive) on your own behalf or for your dependents; or which your dependents receive (or are assumed to receive) because of your entitlement to such benefits; Any retirement plan benefits funded by McKesson; Any proceeds payable under any franchise or group insurance or similar plan. If other insurance applies to the same claim for disability, and contains the same or similar provision for reduction because of other insurance, Cigna pays for its pro rata share of the total claim. Pro rata share means the proportion of the total benefit that the amount payable under one policy, without other insurance, bears to the total benefits under all such policies; Any amounts received (or assumed to be received) by you or your dependents under any workers compensation, occupational disease, unemployment compensation law, or similar state or federal law payable for injury or sickness arising out of work with McKesson, including all permanent and temporary disability benefits. This includes any damages, compromises, or settlements paid in place of such benefits, whether or not liability is admitted; Any amounts paid because of loss of earnings or earning capacity through settlement, judgment, arbitration, or otherwise, where a third party may be liable, regardless of whether liability is determined. Dependents include any person who receives (or is assumed to receive) benefits under any applicable law because of your entitlement to benefits. Assumed Receipt Benefits Cigna assumes you (and your dependents, if applicable) are receiving benefits for which you're eligible from other income benefits. Cigna reduces your disability benefits by the amount from other income benefits it estimates are payable to you and your dependents. Cigna waives assumed receipt of benefits, except for disability earnings for work you perform while disability benefits are payable, if you: Provide satisfactory proof of application for other income benefits; Sign a reimbursement agreement; Provide satisfactory proof that all appeals for other income benefits have been made unless Cigna determines that further appeals are not likely to succeed; and Submit satisfactory proof that other income benefits were denied. Cigna doesn't assume receipt of any pension or retirement benefits that are actuarially reduced according to applicable law, until you actually receive them. Increases in Other Income Benefits Any increase in other income benefits during a period of disability due to a cost of living adjustment won t be considered in calculating your disability benefits after the first reduction is made for any other income benefits. This section doesn t apply to any cost of living adjustment for disability earnings. Lump Sum Payments Other income benefits or earnings paid in a lump sum are prorated over the period for which the sum is given. If no time is stated, the lump sum is prorated over five years. If no specific allocation of a lump sum payment is made, then the total payment is an other income benefit. Social Security Assistance Cigna may help you apply for Social Security Disability Income (SSDI) benefits, and may require you to file an appeal if Cigna believes a reversal of a prior decision is possible. There s no charge to you for using this service. If you refuse to cooperate with or participate in the Social Security Assistance Program, Cigna will reduce disability benefits by the amount Cigna estimates you will receive. 11

12 Circumstances That May Affect Benefits Workers Compensation Coverage under the LTD plan is not in lieu of, nor does it affect any requirements for coverage under any workers compensation law or other similar law. 12

13 Limitations and Exclusions Limitations Cigna pays disability benefits for no more than 24 months during your lifetime for any of the following conditions: Alcoholism Anxiety disorders Delusional (paranoid) disorders Depressive disorders Drug addiction or abuse Eating disorders Mental illness Somatoform disorders (psychosomatic illness) If, before reaching your lifetime maximum benefit, you re confined in a hospital for more than 14 consecutive days, that period of confinement doesn t count against your lifetime limit. The confinement must be for the appropriate care of any of the conditions listed above. Exclusions This plan doesn t pay any disability benefits for a disability that results, directly or indirectly, from: Suicide, attempted suicide, or self-inflicted injury while sane or insane; War or any act of war, whether or not declared; Active participation in a riot; Commission of a felony; or The revocation, restriction or non-renewal of your license, permit or certification necessary to perform the duties of your occupation unless due solely to injury or sickness otherwise covered by the plan. In addition, Cigna doesn t pay disability benefits for any period of disability during which you re incarcerated in a penal or corrections institution. Preexisting Condition Limitation Cigna doesn t pay benefits for any period of disability caused or contributed to by, or resulting from, a preexisting condition. A preexisting condition means any injury or sickness for which you incurred expenses, received medical treatment, care or services including diagnostic measures, took prescribed drugs or medicines, or for which a reasonable person would have consulted a physician within three months before your most recent effective date of insurance. The preexisting condition limitation applies to any added benefits or increases in benefits. This limitation doesn t apply to a period of disability that begins after you are covered for at least 12 months after your most recent effective date of insurance, or the effective date of any added or increased benefits. 13

14 Claim Information How to File a Claim Contact your supervisor or manager to report your absence as soon as you know you re unable to work due to your disability. If you re eligible for and are receiving STD benefits, contact Cigna to see if any additional information is needed to transition your claim from STD to LTD. To file a claim, contact Cigna: By phone at Cigna (24462). This phone line is available from 7 a.m. to 7 p.m. Central time. Online at Cigna.com/customer-forms. Whether you contact Cigna by phone or online, you need to provide the following information: Your name, birth date and Social Security Number. Time Limits for Submitting Claims You or your authorized representative must submit your claim to Cigna within 31 days of the date of the loss on which your claim is based. (References to you in this section also include your authorized representative.) If that s not possible, you must notify Cigna as soon as it is reasonably possible to do so. The claim must be submitted in a form or format satisfactory to Cigna. If applicable, Cigna sends you claim forms upon receipt of your claim. If you don t receive these forms within 15 days of submitting your claim, you may send Cigna your proof of claim without waiting for the forms. Cigna has up to 45 days from the date your claim is received to determine whether or not benefits are payable to you in accordance with the terms and conditions of the plan. Your complete address, phone number and address. Your manager s name, phone number and address. Your medical information including symptoms, date your symptoms began and diagnosis. Your physician s name, phone number, fax number, address and dates of visits (provide this information for all medical providers who are treating you for the condition that makes you unable to work). Whether you re receiving any benefits such as workers compensation, Social Security, unemployment or state disability insurance. A Cigna Claim Manager, who is your main contact during your disability, contacts you to answer your questions and discuss the claim process. In order to make a determination on your claim, Cigna needs information about your condition from your treating medical provider(s). You must sign a Disclosure Authorization form that allows your medical provider to release information about your medical condition to Cigna. This form is available from your Cigna Claim Manager or on Cigna s website at Cigna%20notices-of-privacy-practices/disability-andaccident-life-forms/customer-authorization-form.pdf. There may be instances when your verbal authorization to Cigna is all that s needed to obtain medical information and you won t be required to sign a Disclosure Authorization form. No benefits are payable until Cigna approves your claim. 14

15 Claim Information Proof of Loss Requirements You must send written proof of loss, or proof by any other electronic/telephonic means authorized by Cigna, within 90 days after the date of loss for which a claim is made. If it s not reasonably possible to submit your proof within this time period, your claim won t be invalidated or reduced if you submit your proof as soon as reasonably possible, and in no event later than one year after the 90 day period. If proof is provided outside of these time limits, the claim is denied. (An exception may apply if you re unable to comply due to the absence of legal capacity.) No benefits are payable until Cigna approves your claim. Your proof must specify: The date your disability or started. The cause of your disability. The degree of your disability. Benefits continue for your period of disability only if you provide Cigna with proof that you continue to be disabled and that you continue to require the appropriate care of a physician. You must provide this proof at your own expense within 30 days of the date that proof is requested by Cigna. Physical Examination and Autopsy During the review period, Cigna may require a medical examination of the insured, at its own expense, or additional information regarding the claim. If a medical examination is required, Cigna notifies you of the date and time of the examination and the physician s name and location. It s important that you keep any appointments made since rescheduling examinations could delay the claim process. If additional information is required, Cigna must notify you, in writing, stating the information needed and explaining why it is needed. Cigna may, at its expense, require an autopsy unless prohibited by law. Claim Payments Disability benefits are paid at regular intervals of not less frequently than once a month. Any balance, unpaid at the end of any period for which Cigna is liable, is paid at that time. Who Is Paid Disability benefits are paid to you. If any person to whom benefits are payable is a minor or, in Cigna's opinion, isn't able to give a valid receipt, such payment is made to his or her legal guardian. However, if no request for payment has been made by the legal guardian, Cigna may, at its option, make payment to the person or institution appearing to have assumed custody and support. If you die while any disability benefits remain unpaid, Cigna may, at its option, make direct payment to any of your following relatives: spouse, mother, father, children, brothers or sisters; or to the executors or administrators of your estate. Cigna may reduce the amount payable by any indebtedness due. Payment in the manner described above releases Cigna from all liability for any payment made. Legal Actions No action at law or in equity may be brought to recover benefits under the plan less than 60 days after written proof of loss, or proof by any other electronic/telephonic means authorized by Cigna, has been furnished as required by the plan. No such action shall be brought more than three years after the time satisfactory proof of loss is required to be furnished. Time Limitations If any time limit stated in the plan for giving notice of claim or proof of loss, or for bringing any action at law or in equity, is less than that permitted by the law of the state in which you live when the plan is issued, then the time limit provided in the plan is extended to agree with the minimum permitted by the law of that state. Physician/Patient Relationship You have the right to choose any physician who is practicing legally. Cigna doesn t disturb the physician/ patient relationship. 15

16 Claim Information If Your Claim Is Approved If your claim is approved, you receive the appropriate benefit from Cigna. If Your Claim Is Denied If your claim is denied, in whole or in part, you must receive a written notice from Cigna within the review period. In the case of a claim for disability benefits, Cigna will provide you written notice of an initial denial within a reasonable period of time, but not later than 45 days after receipt of the claim. Cigna may extend this period for up to 30 days, provided that Cigna both determines that such an extension is necessary due to matters beyond the control of the plan and notifies you, prior to the expiration of the initial 45-day period, of the circumstances requiring the extension of time and the date by which the plan expects to render a decision. If, prior to the end of the first 30-day extension period, Cigna determines that, due to matters beyond the control of the plan, a decision can't be rendered within that extension period, the period for making the determination may be extended for up to an additional 30 days, provided that Cigna notifies you, prior to the expiration of the first 30-day extension period, of the circumstances requiring the extension and the date as of which the plan expects to render a decision. In the case of any extension, the notice of extension shall 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 shall be afforded at least 45 days within which to provide the specified information. Cigna's written notice must include the following information: The specific reason(s) the claim was denied. Specific reference to the plan provision(s) on which the denial was based. For disability claims only, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: - The views you presented to the LTD plan of healthcare professionals treating you and vocational professionals who evaluated you; - The views of medical or vocational experts whose advice was obtained on behalf of the LTD plan in connection with your claim denial, without regard to whether the advice was relied upon by the LTD plan in making the benefit determination; and - A Social Security Administration determination that you're disabled presented to the LTD plan. If the denial of disability benefits 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 LTD plan to your medical circumstances, or a statement that such explanation will be provided free of charge upon request. For disability claims only, either the specific internal rules, guidelines, protocols, standards or other similar criteria of the LTD plan relied upon in denying your claim or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the LTD plan don't exist. A statement that you're 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. A description of the appeal procedure and the time limits applicable to such procedures, including a statement of your right to bring a civil action under section 502(a) of ERISA if your appeal is denied. Any additional material or information required for you to perfect your claim and an explanation of why this material or information is necessary. 16

17 Claim Information Filing Appeal McKesson has appointed Cigna as the named fiduciary for adjudicating claims for benefits under the plan, and for deciding any appeals of denied claims. Cigna shall have sole discretionary authority to interpret the terms of the plan, to decide questions of eligibility for coverage or benefits under the plan, and to make any related findings of fact. All decisions made by Cigna shall be final and binding on participants and beneficiaries to the full extent permitted by law. Appeal If Cigna denies your request for benefits, you or your authorized representative may appeal the denial. To begin the appeal process, you must file a written notice of the appeal with Cigna within the time limit specified in the table below. If you fail to do so, you waive your right to appeal. In your notice, you should state why you believe your claim should be paid. You may submit written comments, documents, records, and other information relating to your claim in connection with your appeal. You may also request to receive, free of charge, reasonable access to, or copies of, all documents, records, and other information relevant to your claim for benefits. Your deadline for filing an appeal Plan notice of appeal decision Time Limits for Processing Appeals 180 days after receiving claim denial notice. No later than 45 days after receipt of the appeal. If necessary due to special circumstances, the period may be extended for an additional 45 days. In this case, you re notified in writing prior to the extension of the special circumstances and the date a decision is rendered. A decision is made as soon as possible, but no later than 90 days after receipt of the appeal. Procedure Appeal The review of your appeal gives no deference to the original claim decision and takes into account all comments, documents, records and other information submitted by you and your medical providers that relate to your claim. In addition, the decision maker on appeal is different from the decision maker at the initial claim level, as is any healthcare professional consulted at the appeal level. In deciding an appeal that is based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, Cigna consults with a healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment. The healthcare professional consulted won t be the individual who was consulted in connection with the denial of the claim that is the subject of the appeal (or the subordinate of that individual). Upon request, Cigna provides the identification of any medical or vocational experts whose advice was obtained on behalf of the LTD plan in connection with the denial, without regard to whether the advice was relied upon in making the benefit determination. Before denying your disability benefits claim on appeal, Cigna will provide you, free of charge, with any new or additional evidence considered, relied upon, or generated by the LTD plan, Cigna, or other person making the determination on appeal (or at the direction of the LTD plan, Cigna or such other person) in connection with your disability benefits claim. This evidence will be provided as soon as possible and sufficiently in advance of the date on which you are notified that your claim has been denied on appeal to give you a reasonable opportunity to respond prior to that date. Before denying your disability benefits claim on appeal based on a new or additional rationale, Cigna will provide you with the rationale free of charge. The rationale will be provided as soon as possible and sufficiently in advance of the date on which you are notified that your claim has been denied on appeal to give you a reasonable opportunity to respond prior to that date. 17

18 General Provisions Filing Appeal (continued) Notice of Determination on Appeal Within the time limit specified in the table on p. 17 regarding appeals, Cigna provides you with written notice of the decision. If Cigna determines that benefits should be paid, Cigna takes whatever action is necessary to pay benefits as soon as possible. If your appeal is denied, the notice will include the following information: The reasons for the denial, including references to specific LTD plan provisions, as applicable, upon which the denial was based. Your entitlement to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information (other than legally or medically privileged documents) relevant to your claim for benefits. A discussion of the decision to deny disability benefits, including an explanation of the basis for disagreeing with or not following: - The views you present to the LTD plan of healthcare professionals treating you and vocational professionals who evaluated you. - The views of medical or vocational experts whose advice was obtained on behalf of the LTD plan in connection with the denial of your appeal, without regard to whether the advice was relied upon by the plan in making the benefit determination. - A Social Security Administration determination of your disability presented to the LTD plan. If a denial of disability benefits on appeal 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 LTD plan to your medical circumstances, or a statement that such explanation will be provided free of change upon request. If disability benefits are denied on appeal, either the specific internal rules, guidelines, protocols, standards or other similar criteria of the LTD plan relied upon in denying your appeal or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the plan don't exist. A statement of your right to bring an action under section 502(a) of ERISA and a description of any applicable contractual limitations period that applies to your right to bring such an action, including the calendar date on which the contractual limitations period expires for your claim. No legal action may be taken to gain benefits from the LTD plan after three years from the date the loss occurred for which a claim was made. No legal action may be taken to gain benefits from the LTD plan until you have: Submitted a written claim for benefits, Been notified by Cigna that the claim is denied, Filed a written request for an appeal of the denied claim with Cigna, Been notified in writing that claim denial has been affirmed on appeal. Recovery of Overpayments An overpayment is any payment made to you (or elsewhere for your benefit) in excess of the amount properly payable under the LTD plan. If you have cause to reasonably believe that an overpayment may have been made, you must promptly notify Cigna of the relevant facts. If Cigna determines that an overpayment was made to you, Cigna notifies you in writing and you must promptly pay the amount of the overpayment to Cigna. If Cigna has made a written demand for the repayment of an overpayment and you haven t repaid the overpayment within 30 days following the date on which the demand was mailed, then any amounts subsequently payable as benefits under the plan with respect to you may be reduced by the amount of the outstanding overpayment or Cigna may recover the overpayment by any other appropriate method, as determined by Cigna (or McKesson), including deducting amounts from future benefits payable to you (or on your behalf) under the LTD plan. (In this event, your benefit amount may be less than the plan s minimum benefit amount.) Authority for Interpretation of This Plan Cigna has sole discretionary authority to construe the terms of this plan and to determine benefit eligibility under the plan. Decisions regarding construction of the terms of this plan and benefit eligibility are conclusive and binding. Conforming With State Statutes Any provision of this plan that, on the effective date, is in conflict with a statute of the governing jurisdiction of this plan is hereby amended to conform to the minimum requirements of the statute. 18

19 Appendix A Eligibility and Cost Eligibility and Eligibility Date If you qualify as an employee as defined on pp , you re eligible for coverage under the plan on the plan s effective date or, if later, the first of the month following your date of hire. The eligibility waiting period is the period of time you must be in active service to be eligible for coverage. Your eligibility waiting period is extended by the number of days you aren t in active service. Except as noted in the Reinstatement of Insurance provision, if you terminate your coverage and later wish to reapply, or if you are a former employee who is rehired, you must satisfy a new eligibility waiting period. You re not required to satisfy a new eligibility waiting period if your insurance ends because you no longer qualify under your class definition, but you continue to be employed, and within one year you qualify again. Cost The employee contribution rate for coverage is set by McKesson and may change from year to year. Currently, you pay 30% of the premium for your coverage. Current contribution information is available from the HR Support Center at 855.GO.MCKHR ( ), McKNet (McKesson s Intranet), or UPoint at Premiums While Benefits Are Payable Your premium payments are waived during any period for which benefits are payable. To continue coverage, premium payments must be resumed following a period during which they were waived. The eligibility waiting period doesn t apply to you if you were covered under an acquired company s disability plan and satisfied the eligibility waiting period of that plan, if any, and are in active service on the date your company is acquired by McKesson. Credit is given for any time that was satisfied. 19

20 Appendix B Enrollment Enrollment If you elect coverage within 31 days after you become eligible, or within 31 days after a qualifying event, your insurance is effective on the latest of the following dates: The plan effective date. The date you authorized payroll deduction. The date the completed enrollment form is received by McKesson or Cigna. If your enrollment form is received more than 31 days after you're eligible for insurance, you must satisfy the Insurability Requirement before your insurance is effective. If approved, your insurance is effective on the date Cigna agrees in writing to insure you. If you re not in active service on the date your insurance would otherwise be effective, your insurance is effective on the date you return to any occupation for McKesson on a full-time basis. Effective Date of Coverage Your coverage is effective at 12:01 a.m. on: Your eligibility date, if you enrolled before that date. The date you enrolled, if you enrolled during your initial eligibility period. The January 1 immediately following an annual enrollment period during which you enroll. On the first day of the following month, if you enroll within 31 days of a qualifying event. Delayed Effective Date The effective date of your coverage is delayed if you re not in active service because of injury or sickness. Coverage starts on the date you return to active service. 20

21 Appendix C Termination of Coverage Termination of Coverage Your coverage ends on the earliest of the following dates: The date you re eligible for coverage under a plan intended to replace this coverage; The date this plan is terminated; The date you re no longer in an eligible class; The day after the end of the period for which premiums are paid; The date you re no longer in active service; The date benefits end because you didn t comply with the terms and conditions of the insurance coverage. If you re entitled to receive disability benefits when the plan terminates, disability benefits are payable to you if you remain disabled and meet the requirements for the insurance. Any later period of disability, regardless of cause, that begins when you are eligible under another disability coverage provided by any employer, isn t covered. Continuation of Coverage The continuation of coverage provision modifies the Termination of Coverage provision to allow insurance to continue under certain circumstances, if you re no longer in active service. Insurance that is continued under this provision is subject to all other terms of the Termination of Coverage provision. If your active service ends due to any other excused short term absence from work that s reported to McKesson timely in accordance with McKesson s reporting requirements for such short term absence, your insurance continues until the earlier of: The date your employment relationship with McKesson terminates; The date premiums aren't paid when due; The end of the 30 day period that begins with the first day of such excused absence; The end of the period for which such short term absence is excused by McKesson. Notwithstanding any other provision of this plan, if your active service ends due to layoff, termination of employment, or any other termination of the employment relationship, insurance terminates and continuation of coverage doesn t apply. If your insurance is continued pursuant to this continuation of coverage provision, and you become disabled during such period of continuation, disability benefits won t begin until the later of the date the elimination period is satisfied or the date you are scheduled to return to active service. Your disability insurance continues if your active service ends because of a disability for which benefits under the plan are or may become payable. Your premiums are waived while disability benefits are payable. If you don t return to active service, this insurance ends when the disability ends or when benefits are no longer payable, whichever occurs first. If your active service ends due to personal or family medical leave approved timely by McKesson, insurance continues for you up to 12 weeks, if the required premium is paid when due. 21

22 Appendix C Termination of Coverage Conversion Privilege If your insurance ends because employment with McKesson ends, or you are laid off or on an uninsured leave of absence, you may be eligible for conversion insurance. To be eligible, you must have been insured for disability benefits and actively at work for at least 12 consecutive months. If you enroll for this option within 31 days after insurance under this plan ends, conversion insurance is effective as of the date insurance under this plan ends. If you enroll for this option more than 31 days after insurance under this plan ends, Cigna requires you to provide satisfactory evidence of good health at your own expense. Conversion insurance is effective on the date Cigna agrees in writing to insure you. You must apply for conversion insurance within 62 days after insurance ends. The benefits of the conversion plan are those benefits offered at the time you apply. The premium is based on the rates in effect for conversion plans at that time. Conversion insurance isn t available if any of the following conditions apply: You re retired or age 70 or older; You re not in active service because of disability; The plan is canceled for any reason; You re no longer in a class of eligible employees, but are still employed by McKesson. Reinstatement of Insurance Your coverage may be reinstated if your insurance ends because you are on a Company-approved unpaid leave of absence. Your insurance may be reinstated only if reinstatement occurs within 12 weeks from the date it ends due to a McKesson approved unpaid leave of absence or you must be returning from military service pursuant to the Uniformed Services Employment Act of 1994 (USERRA). For your insurance to be reinstated, the following conditions must be met: You must qualify under the class definition. The required premium must be paid. A written request for reinstatement and a new enrollment form for you must be received by Cigna within 31 days from the date you return to active service. Your reinstated insurance is effective on the date you return to active service. If you didn t fully satisfy your eligibility waiting period or preexisting condition limitation (if any) before your insurance ended due to an unpaid leave of absence, you receive credit for any time that was satisfied. Grace Period If your required premium isn't paid on the premium due date, there's a 31 day grace period after each premium due date after the first. If the required premium isn't paid during the grace period, insurance will end on the last day for which the premium was paid. Leaves of Absence Your coverage under the plan may be continued during certain Company-approved leaves of absence. When you need to take a leave of absence for any reason, contact the McKesson Leave Team for information on how your leave affects your benefits. McKesson Leave Team Leaves@McKesson.com (Say Leaves of Absence ) 22