abb · pdf filethe company expressly reserves the right to change, suspend or terminate any of...

ABB Benefits

INTRODUCTION TO TOTALU

Effective January 1, 2008

The Company expressly reserves the right to change, suspend or terminate any of its benefits plans, or to change any statement made in the ABB Benefits Booklet, at any time.

The Company’s decision to amend, suspend, discontinue or terminate the plans may be due to changes in federal or state laws governing welfare or pension benefits, the requirements of the Internal Revenue Code or the Employee Retirement Income Security Act of 1974, as amended (ERISA), Company policy, or any other reason.

The Plan Administrator and/or the Claims Administrator has the sole discretionary authority to determine eligibility for, and the amount of, benefits and to take any other actions with respect to questions arising in connection with the plans, including the construction and interpretation of the terms of the plans. All decisions, determinations and interpretations of the Plan Administrator and/or the Claims Administrator are conclusive and binding on all persons.

Table of Contents

ABOUT THIS BOOKLET................................................................................................................................ 3 INTRODUCTION ............................................................................................................................................ 5 IMPORTANT TERMS ..................................................................................................................................... 7 THE FLEXIBLE BENEFITS PROGRAM ........................................................................................................ 9

Who Is Eligible............................................................................................................................................ 9 How the Plan Works................................................................................................................................... 9 Your Coverage Category...........................................................................................................................10 Your Benefit Options .................................................................................................................................10 Cost of Coverage ......................................................................................................................................11

Core Benefits ......................................................................................................................................11 Shared Cost Benefits ..........................................................................................................................11 Cost Sharing for Medical Benefits .......................................................................................................12 Cost Sharing for Buy-up Benefits ........................................................................................................12

About Enrollment.......................................................................................................................................13 Enrollment Materials ...........................................................................................................................13 How to Enroll.......................................................................................................................................14 Default Coverage If You Do Not Enroll................................................................................................14

When Coverage Begins.............................................................................................................................15 You Can Change Your Coverage..............................................................................................................15

Family Status Change Summary.........................................................................................................16 When Changes Are Effective ..............................................................................................................21 Things to Consider When You Have a Change in Family Status ........................................................21

BENEFITS SERVICES — AT YOUR FINGERTIPS!.....................................................................................23 ABB Service Center ..................................................................................................................................23 NetBenefits................................................................................................................................................23 Automated Voice Response System .........................................................................................................24 Benefits Central, the Benefits Page on the ABB Intranet...........................................................................24

IMPORTANT TELEPHONE NUMBERS........................................................................................................25 GENERAL INFORMATION ...........................................................................................................................27

Appealing a Claim .....................................................................................................................................27 Plan Continuation and Reservation of Rights ............................................................................................27 Plan Documents ........................................................................................................................................27

YOUR RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 (ERISA) ...29 Duties of the Plan Fiduciaries....................................................................................................................29 Steps You Can Take to Enforce Your Rights ............................................................................................30 If You Have Questions ..............................................................................................................................30

PLAN IDENTIFICATION INFORMATION .....................................................................................................31 Flexible Benefits Program .........................................................................................................................31

TABLE OF CONTENTS

About This Booklet

This ABB Booklet is designed to help you understand ABB’s TotalU—YourHealth, YourWealth, YourGrowth program. The plan-specific summary plan descriptions (SPD) focus on benefits available under YourHealth and YourWealth. Each SPD describes a different benefit plan within the TotalU program. As changes are made, you will receive updates to this information. Please keep them with this Booklet as a reference if you have questions about your coverage.

While this Booklet summarizes the benefits provided, the benefits are subject to the full terms and conditions of the plan documents and insurance and/or other contracts that govern the benefit plans. If there is a discrepancy between this Booklet and the plan documents and contracts, the documents and contracts will control. Other important information about the plans is contained in “Your Rights Under the Employee Retirement Income Security Act of 1974, as amended (ERISA)” in each SPD.

ABOUT THIS BOOKLET 3

Introduction

ABB’s overall benefits package is one of the best in our industry. It supports—and must continue to support—our critical need to attract and retain a world-class workforce. Our program is called TotalU. It is the unique combination of your health, wealth and growth opportunities that gives you personal satisfaction and contributes to making ABB the right place for you.

YourHealth includes all the different programs that weave together to support your health-related needs. These range from our medical, dental and vision plans, to our wellness-related tools and resources such as Optum Nurseline, the Employee Assistance Plan and the Health Management Center. YourHealth includes programs that encourage you to find a healthy outlet for stress and that provide tools and information to help you manage issues of work/life balance.

YourWealth covers the retirement benefits (the Cash Balance Pension Plan and PRISM), insurance coverage and other programs that provide financial security for you and your family. In addition, these programs can save you money by reducing your taxes or providing you options available at lower “group rates.”

YourGrowth includes what you learn on the job, and the Company’s support from training opportunities to educational assistance to recognition programs.

Your Benefits Handbook, which includes this Introduction to TotalU, as well as the SPDs for the individual benefit plans, provides details about all the plans available that contribute to your health and your wealth. As you review the various plans, ABB wants you to start thinking more about the special connection between your wealth and your health. Most of us will live longer than our parents. That means we will need to work longer than previous generations or save more for retirement—or both. Healthier people have more time to save for retirement because they have more time to work. Also, once we retire, having better health usually means having a happier and financially secure retirement.

To help you build a benefits program that best meets your needs, the ABB program provides flexibility, with multiple options allowing you to tailor the plan to suit your needs. And it also promotes efficiency. While a quality benefits program is becoming more and more valuable to every employee, it is also becoming more costly. This program allows you and ABB to make better, more cost-efficient use of the money we all are spending on benefits.

ABB provides a set of fully-paid “core” benefits that serve as the foundation for your benefits program. The Company also pays a portion of plans like medical and PRISM, called “shared cost” benefits. Other “Voluntary” benefits are available, which are fully paid by you, but are available at lower group rates negotiated by ABB. These include vision care, group universal life insurance, and long term care insurance.

INTRODUCTION 5

Here is an overview of the benefits available under YourHealth and YourWealth.

From Core Benefits (Paid by ABB)

Basic Dental Coverage Dental Option B Aetna DMO

TotalHealth – resources for better health: Employee Assistance Plan (EAP) Workplace Wellness program Quit for Life™, a quit tobacco program Nurseline 24-hour service (Optum) Personalized Health Management Program

(Matria) Health Management Center online resources

International SOS Program (visit http://www.international sos.com/private/abb)

Paid Vacation

Basic Life Insurance

Basic AD&D Insurance

Basic LTD Coverage (60% of Salary)

Cash Balance Pension Plan

Adoption Assistance Plan

Survivor’s Financial Support Plan

Business Travel Accident Plan

Involuntary Separation Pay Plan

Short-term Disability Plan

From Shared Cost Benefits (Paid by ABB and You)

Medical Options United, Anthem or Aetna Premier United, Anthem or Aetna Select United, Anthem or Aetna Horizon United, Anthem or Aetna Freedom United Medical Plus Plan

Buy-up Dental (Option A)

Retiree Medical Plan If your hire date is prior to 1/1/2006

Buy-up Supplemental AD&D Employee 2, 3, 4, 5 times Salary Family coverage

Buy-up LTD (66 2/3% of Salary)

PRISM (401(k) Plan)

Voluntary Benefits (Paid by You)

Vision Plan

Long Term Care Insurance

Vacation Buy (not available at all locations)

Retiree Medical Plan If your hire date is on or after 1/1/2006

Dependent Day Care Flexible Spending Account

Health Care Flexible Spending Account

Limited Scope Health Care Flexible Spending Account

Group Universal Life Insurance (GUL)

Prepaid Legal Plan

Auto/Boat and Homeowners/Rental Insurance

Section 529 Education Savings Plan

Employee Share Acquisition Plan (ESAP)

For more complete information on any of these plans, please refer to the plan-specific summary plan descriptions.

6 INTRODUCTION

http://www.international/

Important Terms

Certain terms used in this Booklet have specific meanings. These include:

Actively at Work means you are working a full day (at your usual place of business or traveling on business) performing your usual duties.

Company means ABB Inc., U.S.A.

Regular Employment, for purposes of establishing eligibility for this plan, will be determined by the Company in accordance with standard practices and legislative requirements, but excludes, for example, casual employees and other individuals employed on a temporary basis; leased employees; independent contractors or consultants; and non-resident aliens, except those in the United States on non-immigrant visas.

Salary, for determining benefits under this program, means current annual base salary. It may or may not include other compensation or payments made to you based on the terms of the plan. See the definition of “Salary” in the plan-specific summary plan descriptions for more information.

For purposes of determining your “medical cost sharing salary band” (see page 12), salary means current annual base salary plus net commissions and shift differentials paid in the preceding 12 months, and the most recent incentive compensation paid during the preceding 12 months.

IMPORTANT TERMS 7

The Flexible Benefits Program

WHO IS ELIGIBLE You are eligible to participate in the Flexible Benefits Program if you are:

Employed on a regular salaried or hourly basis by the Company in a business that has adopted the program; and,

A member of a group of employees for whom the plan has been adopted; and,

Not represented by a collective bargaining agent unless the collective bargaining agreement provides for coverage under the plan.

Part-time employees are eligible if they are regularly scheduled to work 20 hours or more each week.

Casual employees and other individuals employed on a temporary basis, leased employees, and independent contractors or consultants are not eligible to participate in the plan.

HOW THE PLAN WORKS The Flexible Benefits Program allows you to choose the type of benefits coverage that best suits your needs and the needs of your family. Each year at annual enrollment, you tailor the program that’s right for you. Core, shared, and voluntary benefits are all offered through TotalU.

Each year during annual enrollment, you choose:

Whether you will be covering any dependents;

Which benefit options you want; and,

The amount of coverage you need.

Let’s look at your choices.

THE FLEXIBLE BENEFITS PROGRAM 9

YOUR COVERAGE CATEGORY Your coverage category indicates whether you will be covering just yourself, or whether you will be including your spouse and eligible dependent children.

If you have dependents, it’s important to be sure that they are covered either under the ABB Flexible Benefits Program or through some other plan, such as one offered through your spouse’s employer.

When you enroll, you will be asked to choose one of three coverage categories:

Yourself only: If you are single and have no dependents, or if your dependents have health care coverage through a separate plan and you want to cover only yourself.

Yourself and one dependent: If you want to cover yourself and your spouse, or yourself and one dependent child.

Yourself and your family: If you want to cover all family members.

For the health care program, you may choose a different coverage category for medical, dental and vision coverage. For example, you may choose to cover your family for medical coverage, but yourself only for dental benefits.

You may also choose a different coverage category for AD&D protection.

YOUR BENEFIT OPTIONS Once you know whom you want to cover, you select your benefit options. The benefits offered through the Flexible Benefits Program are:

Health Care Medical Dental Vision

Flexible Spending Accounts (FSAs) Health Care FSA Limited Scope Health Care FSA Dependent Day Care FSA

Life Insurance Basic Life Insurance

Accidental Death and Dismemberment Coverage

Disability Long-term Disability

Vacation Vacation Buy

10 THE FLEXIBLE BENEFITS PROGRAM

COST OF COVERAGE Each of the benefits has different coverage options available. Before each enrollment period, you will receive information about the annual or per-pay-period premium cost for every flexible benefits option available to you. You will be able to see how much of that premium ABB would pay toward each option, and what you would have to pay.

Core Benefits To ensure that each employee has a foundation of personal and financial security, ABB pays 100% of the cost of your core benefits, as shown on the following chart:

Type of Plan Coverage Amount

Basic Life Insurance Two times Salary or $50,000, whichever is greater. Employees with basic coverage of more than $50,000 will have the option of electing a flat amount of $50,000 to avoid taxable imputed income on higher amounts of Basic Life Insurance coverage.

Basic AD&D One times Salary (employee only)

LTD 60% of Salary

Dental Dental Option B or the Aetna DMO (if available in your area), whichever you choose.

Shared Cost Benefits Shared cost benefits let you build on the core foundation to design your own benefits plan. You may choose from any of the medical options available to you, and increase your “core” benefit coverage using buy-up options. For example, you may elect greater dental coverage, additional AD&D coverage, or higher LTD benefits. ABB pays the major part of shared cost benefits, and you pay a portion of the cost as well. Here is how costs are shared:

Shared Cost Benefits

Type of Plan What You Pay

Medical Plans You pay a percentage of the cost based on your Salary and the number of people you wish to cover.

Buy-up Plans:

Dental (Option A)

AD&D

2, 3, 4 or 5 times Salary Family coverage

LTD Option 66-2/3%

You pay the amount in excess of the “core” benefit cost that ABB covers.


Cost Sharing for Medical Benefits Each medical option has a premium cost associated with it. ABB pays the major share of the cost. You pay a share as well. Your contributions are based on your Salary and the number of people you cover. ABB considers those who earn more as more able to afford to pay. Therefore, high-paid employees contribute more toward coverage than lower-paid employees.

To calculate your medical plan contribution, the Company determines the percentage of the plan premium you pay based on your salary band and coverage tier. The chart below illustrates how it works. [Note: the following chart does not apply to employees of ABB Automation Products in Syracuse, N.Y. If you are an employee of this business, contact your Human Resources representative for information about cost-sharing.]

Medical Cost Sharing Salary Bands

If your Salary is… You pay this percentage of the medical plan premium…

Participant Only

Participant + 1 Dependent

Participant + Family

$39,999 or less 10% 15% 15%

$40,000 to $59,999 15% 20% 20%

$60,000 to $74,999 20% 25% 25%

$75,000 to $89,999 25% 30% 30%

$90,000 + 30% 35% 35%

You have the option to decline medical coverage if you have coverage under another plan.

Cost Sharing for Buy-up Benefits If you decide to add to your core benefits, you pay a portion of the cost. You pay the amount in excess of the “core” benefit cost that ABB covers. For example, assume you want to buy-up to Dental Option A and enroll for single coverage. Also assume that the annual premium for Dental Option A (“Shared Cost” benefit) is $390, and for Option B (“Core” benefit) is $235. Your annual cost to buy-up to Option A would be:

Premium for Option A: $390

Minus Premium for Option B ($235)

Equals Your Annual Cost for Option A: $155


ABOUT ENROLLMENT Each fall, ABB offers an open enrollment period for the Flexible Benefits Program. At that time, you may enroll or change some or all of your benefit options. Newly-hired employees will be offered the opportunity to enroll in the program within 31 days of their date of employment.

Enrollment Materials During the annual enrollment each fall, all the information you need to enroll will be available via NetBenefits. If you do not have access to the internet at home, please contact your HR representative. He or she will provide you with access to an internet-enabled computer so that you can select your benefit options and enroll.

Newly-hired employees will receive an enrollment kit containing the following:

A Benefits Value Statement (BVS); and,

A Personal Fact Sheet (PFS).

Each of these statements is personalized with information just about you. For each coverage category, they show the benefit options available in your geographic area, the total annual or per-pay-period cost of those options, the ABB share of the cost of each option, and your share of the cost of each option.

A Medical Plan Summary, which compares the features of the medical options available in your area.

An Enrollment Guide, which provides more information about your options, and how to enroll.

A Group Universal Life Insurance enrollment package. (Note: even if you do not enroll for additional coverage through the Group Universal Life Insurance Plan, you should complete and return the beneficiary designation form. This form also provides beneficiary information for your basic life insurance.)

A Cash Balance Pension Plan beneficiary designation form, if you are eligible for that plan.

Enrollment materials for the PRISM 401(k) plan will be sent separately. To enroll in PRISM without the enrollment materials, simply log on to NetBenefits.


How to Enroll Enroll through NetBenefits at http://netbenefits.fidelity.com or by calling the ABB Service Center at 1-800-354-8069.

To Continue Your Curren Elections t

If you are enrolled in the Flexible Benefits Program and want to keep all of your current benefits, check the enrollment site on NetBenefits or call the ABB Service Center for enrollment rules, which can change from year to year. If all of your options are available for the next calendar year, you may not have to take any action, even though your costs for the next calendar year may change.

To Enroll or Change Your Elections

If you want to re-enroll or change your current elections, or if you are enrolling for the first time, you may access NetBenefits or call the ABB Service Center.

NetBenefits, Fidelity’s online enrollment site, can be reached through Benefits Central on the ABB intranet at http://inside.abb.com/us/hr, or through the internet at http://netbenefits.fidelity.com.

To enroll over the phone, call the ABB Service Center during normal business hours.

Default Coverage If You Do Not Enroll If you are a new employee and do not enroll for benefits within 31 days of becoming eligible, you will be provided with a limited package of benefits (default coverage).

If you are currently enrolled, but are notified that one or more elections will no longer be available to you, you must re-enroll or you will be provided with default coverage.

The enrollment kit will include a description of the default coverage package.


http://netbenefits.fidelity.com/

http://inside.abb.com/us/hr


WHEN COVERAGE BEGINS When you enroll during the annual fall enrollment period, coverage under the options you elect will begin January 1 of the following year and will continue for the full calendar year. If you are a new employee enrolling at a time other than the annual enrollment period, and you enroll within 31 days of becoming eligible, coverage under the options you elect is retroactive to your first day of active employment and will continue until the end of the year.

If you are not Actively at Work on the date coverage would become effective, your new coverage under the dental, vision, life, AD&D, and LTD insurance plans will begin when you return to active employment. Medical coverage begins on the plan effective date, regardless of whether you are Actively at Work on that day.

If you do not enroll during the appropriate enrollment period, you will be covered under the default plan. The default plan provides limited coverage. You will not be able to change your coverage until the next annual enrollment period unless you have a qualified family status change.

YOU CAN CHANGE YOUR COVERAGE In general, the choices you make are for only one year. You can change any benefit option you want during the annual enrollment period.

However, by federal law, the options you elect during annual enrollment each year must remain in effect for the entire calendar year. You may change your elections during the year only if you have a change in family status. Qualified changes must be made within 31 days of the date of the event, either on NetBenefits or by calling the ABB Service Center.

If you wish to change your election, the change you request must be consistent with the reason for the change. For example, if you get married during the year, you can change your coverage category to cover your spouse as well.

Family status changes are effective retroactive to the date of the event. Coverage for a new dependent is retroactive to the first day of eligibility. Coverage for newborns begins at birth, provided the baby is enrolled in the plan within 31 days from the date of birth.


Family Status Change Summary The following charts provide summaries of what you may change for some of the more common life events. Use these charts as general guidelines. Federal regulations governing the permitted changes are updated from time to time. For the most current permitted changes or to make a change, contact the ABB Service Center. If you do not request a change within 31 days of the event, you will have to wait until the fall enrollment period to change your benefit elections.

Contact the ABB Service Center for more information about qualified family status changes.

In some cases, a family status change will involve a change in your personal information, such as name and/or address. In those situations, please update your personal information at NetBenefits.

What You May Change If You Get Married

Coverage Category You may change your coverage category from employee only to employee + 1 dependent, or from employee + 1 dependent to employee + family.

Medical/Dental/Vision You may change your coverage, add your spouse for coverage, or terminate your own coverage to enroll in your spouse’s plan.

Basic Life You may change your option level.

AD&D You may change your option level or change your coverage category.

LTD You may change your option level.

Health Care FSA Depending on your medical plan elections, you may start contributions, increase contributions, or stop contributions if you are electing coverage through your spouse’s plan.

Limited Scope Health Care FSA Depending on your medical plan elections, you may start contributions, increase contributions, or stop contributions if you are electing coverage through your spouse’s plan.

Dependent Day Care FSA You may stop contributions if your spouse does not work.

And Don’t Forget… If you are enrolled in a Freedom Plan, you may change your Health Savings Account (HSA) contribution at any time (subject to Federal limits – see your HSA materials or contact Fidelity for more information).

You may change your beneficiary designation for life insurance, the Cash Balance Pension Plan and PRISM at any time.

You may elect life insurance coverage for your spouse under the universal life insurance plan. You may also elect coverage for yourself or increase coverage for yourself up to 1 times Salary without evidence of good health (based on plan coverage limits).

If you are changing your name and/or your address, you must update your personal information via NetBenefits.


Family Status Change Summary (continued)

What You May Change If You or Your Spouse Has a Baby, Adopts a Child, or Gains a Stepchild

Coverage Category You may change your coverage category from employee only to employee + 1 dependent or employee + family, or from employee + 1 dependent to employee + family.

Medical/Dental/Vision You may change your coverage, add your dependent for coverage, or elect coverage if you currently waived medical/dental/vision.




Health Care FSA Depending on your medical plan elections, you may start contributions, increase contributions, or stop contributions.

Limited Scope Health Care FSA Depending on your medical plan elections, you may start contributions, increase contributions, or stop contributions.

Dependent Day Care FSA You may start contributions or increase contributions.


You may change your beneficiary designation for life insurance, the Cash Balance Pension Plan or PRISM at any time.

You may elect life insurance coverage for an eligible dependent under the universal life insurance plan. You may elect coverage for yourself or increase coverage for yourself up to 1 times Salary without evidence of good health (based on plan coverage limits).

You may want to find out more about benefits under the Adoption Assistance Plan, where available.



What You May Change If You Get a Divorce, Annulment or Legal Separation, or Your Spouse Dies

Coverage Category You may change your coverage category to employee only if your spouse was the only dependent covered under the plan; or to employee + 1 dependent if you covered yourself, your spouse and a child; or from employee only to employee + 1 or employee + family, if your dependents are losing coverage under a spouse’s plan.

Medical/Dental/Vision You may drop coverage for your spouse or elect coverage if you lose coverage under your spouse’s plan.




Health Care FSA You may stop contributions or decrease contributions.

Limited Scope Health Care FSA You may stop contributions or decrease contributions.

Dependent Day Care FSA You may start contributions or increase contributions.



You may decrease or cancel universal life insurance coverage on yourself at any time. Your spouse may elect an individual policy, if covered, within 90 days.

You may want to find out more about the Survivor’s Financial Counseling Plan if your spouse dies.




What You May Change If a Dependent Child Dies or Loses Eligible Status

Coverage Category You may change your coverage category only for medical/dental, vision/hearing and AD&D coverage. You may decrease the number of dependents you are covering in categories of employee + 1 or employee + family, or move from employee + 1 to employee only coverage.

Medical/Dental/Vision You may change your coverage category only.




Health Care FSA You may stop contributions or decrease contributions.

Limited Scope Health Care FSA You may stop contributions or decrease contributions.

Dependent Day Care FSA You may stop contributions or decrease contributions.



A dependent covered under the universal life insurance plan who loses eligible status under the flexible benefits plan may elect an individual policy within 90 days.

A Note About Student Eligibility. The ABB plan covers dependents up to age 19, or up to age 25 if the dependent is a full-time (FT) student. If your FT student graduates or loses FT student status, please call the ABB Service Center. He or she will be eligible for continued coverage under COBRA for 36 months.

If your dependent enrolls as a FT student and is not currently covered by the ABB plan, call the ABB Service Center to add him or her to your coverage.

For more information about COBRA, contact the ABB Service Center or see your medical plan SPD.



What You May Change If You Move Into or Out of a Health Plan Network Service Area

Coverage Category No change permitted.

Medical/Dental/Vision You may change your medical or dental coverage option. You may not drop or add coverage.

Basic Life No change permitted.

AD&D No change permitted.

LTD No change permitted.

Health Care FSA You may change the amount of your contributions only if you change health care plans, and you may elect automatic reimbursement only if a UnitedHealthcare option is available.

Limited Scope Health Care FSA You may change the amount of your contributions only if you change your health care plan.

Dependent Day Care FSA No change permitted.




When Changes Are Effective If you are making a qualified family status change, the change in coverage is effective retroactive to the date of the event. Coverage for newborns begins at birth, provided the baby is enrolled in the plan within 31 days from the date of birth.

Things to Consider When You Have a Change in Family Status Your benefits plan is designed to be flexible to accommodate the needs of your changing life and lifestyle. The more you understand about your benefits, the more you can benefit from these plans. Here are some things to consider:

Be sure to contact the ABB Service Center either through NetBenefits or by calling 1-800-354-8069 within 31 days of the date of a family status change.

If your family situation is changing, be sure your beneficiary information for life insurance, AD&D coverage, PRISM and the cash balance pension plan is up-to-date. See the PRISM and Cash Balance Pension Plan summary plan descriptions for more information.

Moving? ABB needs your new address! Update your address under the My Profile tab on NetBenefits. To find out whether your move makes you eligible or ineligible for a managed care medical or dental option, you should also contact the ABB Service Center at 1-800-354-8069.

Retiring? Contact the ABB Service Center to determine your Cash Balance Pension Plan benefit and options available for retiree medical benefits.


Benefits Services — At Your Fingertips!

ABB SERVICE CENTER ABB has developed systems and services to make the benefits available through TotalU easy to understand and use. The ABB Service Center handles most benefits administration services, rather than your local Human Resources representative. You can access the services you need directly by telephone, at the desktop, or through the internet.

ABB SERVICE CENTER 1-800-354-8069

(1-800-610-4015 TDD/TT)

OVERSEAS CALLS: Dial your country’s toll free AT&T Direct® access number, then enter 800-354-8069.

In the U.S., call 1-800-331-1140 to obtain AT&T Direct access numbers. From anywhere in the world, access numbers are available online

at www.att.com/traveler or from your local operator.

HTTP://NETBENEFITS.FIDELITY.COM

Contact the ABB Service Center via NetBenefits or by calling 1-800-354-8069 to:

Get information about your benefits. For more specific information available by plan, see the summary plan description for the plan;

Change your family status (marriage, birth, adoption);

Change personal information (name, address, emergency contact, etc.);

Update income tax withholding elections;

Access electronic copies of current and historic pay statements;

Enroll for or change Direct Deposit.

NETBENEFITS NetBenefits provides online access to account information through the internet for PRISM, pension, life events, health and insurance, and HR and payroll. Most of the information and transactions you’ll need to manage your benefits and payroll can be done using NetBenefits.

You can reach NetBenefits at: http://netbenefits.fidelity.com.

BENEFITS SERVICES – AT YOUR FINGERTIPS! 23

www.att.com/traveler


AUTOMATED VOICE RESPONSE SYSTEM The ABB Service Center’s Automated Voice Response system gives you telephone access to information for PRISM, pension, life events, health and insurance, and HR and payroll. Use the system if you do not have access to the internet for NetBenefits, or if you need to speak with a representative.

BENEFITS CENTRAL, THE BENEFITS PAGE ON THE ABB INTRANET Benefits Central offers a convenient way to enroll for benefits, complete forms, and find benefits information right at your desktop. You can access Benefits Central at http://inside.abb.com/us/hr for the following:

Forms and Publications:

Claim forms

Beneficiary forms

Internal Revenue Service Publications 502, 503 and 969 listing reimbursable expenses for the spending accounts

Health Care and Dependent Day Care Spending Account Worksheets

Link to Fidelity’s NetBenefits site for:

PRISM information and transactions

Cash Balance Pension Plan information and modeling

Health and Insurance Plan information

Flexible benefits enrollment

Verify dependent information or view current benefit choices

View and print your pay statements

Direct Deposit forms

Federal tax withholding

State W-4 forms

Download or View Summary Plan Descriptions

See how a Life Event changes affect your benefits, and what you need to do

Get to Provider Links

Health plan sites

MetLife’s dental provider page

IRS site and more…

24 BENEFITS SERVICES – AT YOUR FINGERTIPS!

http://inside.abb.com/us/hr

Important Telephone Numbers

FLEXIBLE BENEFITS PROGRAM

ABB Service Center Annual Enrollment/Ongoing Information/Family Status Changes 8:30 a.m. – 8:00 p.m. Eastern time, Monday through Friday

1-800-354-8069 (1-800-610-4015 TDD/TT)

THE HEALTH CARE PROGRAM

The UnitedHealthcare Automatic Response Unit for The Medical Plus Plan

1-800-424-1181

The UnitedHealthcare Automatic Response Unit for the Premier, Select, Horizon and Freedom Plans

1-800-842-9677

United Behavioral Health Managed Psychiatric and Substance Abuse Program for the UnitedHealthcare Medical Plans 24 hours a day, 7 days a week

1-800-562-2532

The Aetna Automatic Response Unit for the Premier, Select, Horizon and Freedom Plans

1-800-445-0128

Aetna Behavioral Health Care (Psychiatric and Substance Abuse Program)

1-800-445-0128

Anthem Automatic Response Unit for the Premier, Select, Horizon and Freedom Plans

1-866-798-7059

THE DENTAL PLAN

Metropolitan Life Insurance Company (Dental Options A and B) Monday through Thursday, 8:00 a.m. – 8:00 p.m., Eastern time

Friday, 9:00 a.m. – 5:00 p.m., Eastern time

1-800-942-0854

The Aetna DMO 1-877-238-6200

THE EYEMED VISION PLAN 1-866-723-0514

THE LIFE INSURANCE PLAN AND ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) COVERAGE Metropolitan Life Insurance Company

1-800-GETMET8 (1-800-438-6388)

THE DISABILITY MANAGEMENT PROGRAM Aetna

1-800-520-4685

THE ABB AUTOMATED PRISM OR CASH BALANCE PENSION PLAN LINE

24 hours a day, 7 days a week

1-800-354-8069 (1-800-610-4015 TDD/TT)

PAYROLL INFORMATION ABB Service Center

1-800-354-8069

IMPORTANT TELEPHONE NUMBERS 25

General Information

APPEALING A CLAIM The method for filing a claim or an application for benefits, as well as the method for appealing a claim, is described under each plan in the plan-specific summary plan descriptions.

PLAN CONTINUATION AND RESERVATION OF RIGHTS The Company presently intends to continue the plans described in this Handbook, but reserves the right to amend, suspend, discontinue, or terminate any or all of the plans at any time.

The Company’s decision to amend, suspend, discontinue or terminate any of the plans may be due to changes in federal or state laws governing welfare or pension benefits, the requirements of the Internal Revenue Code or the Employee Retirement Income Security Act of 1974 (ERISA), the provision of a contract or policy involving an insurance company, Company policy, or any other reason.

For more information about your rights if PRISM or the Cash Balance Pension Plan is terminated, see the sections of this Handbook describing those plans.

If any of the other benefit plans described in this Handbook is terminated, you will not have any further rights other than payment of expenses or other claims incurred before the plan was terminated. After all benefits have been paid and other requirements of law have been met, any remaining plan assets will be, at the discretion of the Company, either used to purchase benefits or distributed to plan participants in accordance with the requirements of law.

PLAN DOCUMENTS This Handbook describes only the highlights of your benefit plans, and does not attempt to cover all the details. The contents of this Handbook are an integral part of the official plan documents.

Additional details may be provided in the plan documents and insurance and/or service contracts, which legally govern the plans. The additional documents may be seen in the Plan Administrator’s office during normal working hours. These documents include any documents filed with the Internal Revenue Service, the annual financial reports and the plan descriptions that are filed with the U.S. Department of Labor, and may include contracts and other documents used by the Claims Administrator. You may obtain copies of these documents by sending a written request to the Plan Administrator. There will be a charge to cover copying costs. In the event of any discrepancy between this Handbook and the other controlling documents, the controlling documents will prevail.

GENERAL INFORMATION 27

Your Rights Under the Employee Retirement Income Security Act of 1974 (ERISA)

As a participant in the plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended (ERISA). ERISA provides that all plan participants shall be entitled to:

Receive Information about Your Plan and Benefits

Examine, without charge, through the Plan Administrator’s office and at other specified locations, such as work sites and union halls, all documents governing the plan, including insurance contracts, collective bargaining agreements and a copy of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor, and available at the Public Disclosure Room of the Employee Benefits Security Administration.

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the plan, including insurance contracts, collective bargaining agreements and copies of the latest annual report (Form 5500 Series), and updated summary plan descriptions. The Plan Administrator may make a reasonable charge for the copies.

Receive a summary of the plan’s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report.

Continue Group Health Plan Coverage

For information about continuing group health plan coverage, please refer to your health plan summary plan description.

DUTIES OF THE PLAN FIDUCIARIES In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the plan. The people who operate the plan, called “fiduciaries,” have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including the Company, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

YOUR RIGHTS UNDER ERISA 29

STEPS YOU CAN TAKE TO ENFORCE YOUR RIGHTS ERISA specifically provides for circumstances under which you may take legal action as a plan participant.

If your claim for a benefit is ignored or denied, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you or your beneficiary can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the Plan Administrator, and do not receive them within 30 days, you may bring suit in federal court. The court may require the Plan Administrator to provide the materials, and pay you up to $110 a day until you receive the materials. The provision does not apply, however, if the materials were not sent to you for reasons beyond the control of the Plan Administrator.

If you have a claim for benefits that is ignored or denied, in whole or in part, you or your beneficiary may file suit in a state or federal court. In addition, if you disagree with the plan’s decision, or lack thereof, concerning the qualified status of a domestic relations order or a medical child support order, you may file a suit in federal court.

If the plan fiduciaries misuse the plan’s money, or if you are discriminated against for asserting your rights, you or your beneficiary may seek assistance from the U.S. Department of Labor or file suit in a federal court. The court will decide who should pay court costs and legal fees. If you or your beneficiary is successful, the court may order the person you have sued to pay these costs and fees. But if you lose (if, for example, the case is considered frivolous) you or your beneficiary may have to pay all costs and fees.

IF YOU HAVE QUESTIONS If you have any questions about the plan, you should contact the Plan Administrator. If you have any questions about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest Office of the Employee Benefits Security Administration, U.S. Department of Labor listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, DC 20210. You may also obtain certain publications concerning your rights and responsibilities under ERISA by calling the publications Hotline of the Employee Benefits Security Administration.

30 YOUR RIGHTS UNDER ERISA

Plan Identification Information

FLEXIBLE BENEFITS PROGRAM

Legal Name of Plan ABB Inc. Flexible Benefits Program (a “program” under the ABB Inc. Group Benefit Plan)

Common Name of Plan Flexible Benefits Plan; Flex Plan

Plan Type Cafeteria Plan

Plan Year January 1 – December 31

Type of Financing/Administration UnitedHealthcare, Aetna and Anthem Medical Plans, MetLife Dental, EyeMed Managed Vision, and Long-term Disability are self-insured. HMOs, DMOs, Blue Cross/Blue Shield plans, Basic Life Insurance, and Accidental Death and Dismemberment (AD&D) plans are insured.

Plan Administrator and Agent for Service of Legal Process

ABB Inc. 501 Merritt 7 P.O. Box 5308 Norwalk, CT 06856-5308 (203) 750-2200 The Plan Administrator has the sole authority to:

Interpret plan provisions Exercise discretion in the interpretation and administration of the plan Make the final determination of a benefit claims appeal

Service of legal process may also be made on the Plan Trustee.

Plan Trustee Mellon Trust of New England, N.A. 135 Santilli Highway Everett, MA 02149

Claims Administrators:

UnitedHealthcare Premier Plan, Select Plan, Horizon Plan, Freedom Plan and Medical Plus Plan

UnitedHealthcare P.O. Box 740800 Atlanta, GA 30374-0800

Aetna Premier Plan, Select Plan, Horizon Plan and Freedom Plan

Aetna P.O. Box 981282 El Paso, TX 79998-1282

Anthem Premier Plan, Select Plan, Horizon Plan and Freedom Plan

Anthem 220 Virginia Avenue Indianapolis, IN 46204

PLAN IDENTIFICATION INFORMATION 31

Dental Plan Options A and B Metropolitan Life Insurance Company Dental Claims P.O. Box 981282 El Paso, TX 79998-1282

Vision Plan EyeMed Vision Care P.O. Box 8504 Mason, OH 45040-7111

Managed Pharmacy Program Express Scripts P.O. Box 390873 Bloomington, MN 55439-0873

Flexible Spending Accounts UnitedHealthcare Attn: Flexible Spending Unit P.O. Box 981178 El Paso, TX 79998-1178

Long-Term Disability Plan Aetna 1601 S.W. 80th Terrace Plantation, FL 33324-4036

Insurer:

Basic Life Insurance and Accidental Death and Dismemberment

Metropolitan Life Insurance Company P.O. Box 6154 Utica, NY 13504-6154

Dental Maintenance Organization (DMO)

Aetna P.O. Box 14094 Lexington, KY 40512

Employer Identification Number 36-3100018

Plan Number 575 In addition to the Flexible Benefits Program, the Company offers short-term disability coverage and universal life insurance. Short-term disability benefits are paid by the Company. Universal life insurance is entirely employee-paid.

32 PLAN IDENTIFICATION INFORMATION

Introduction, effective January 1, 2008