Participating in the Long-Term Disability Plan

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The Long-Term Disability (LTD) Plan

Participating in the Long-Term Disability Plan

The general guidelines for participating in the JPMorgan Chase Long-Term Disability (LTD) Plan are described in this section. Because the benefits described here are provided by insurance, the terms of the policy or insurance certificate will control eligibility for benefits. In the event of any discrepancy between this description and the policy or certificate, the policy or certificate will control.

Eligibility

Your participation in the JPMorgan Chase Long-Term Disability Plan is optional. In general, you are eligible to participate if you are:

A U.S. dollar-paid employee who receives salary or earns draw, commissions, or production overrides ("salaried employee");

Regularly scheduled to work 20 or more hours per week; and

Employed by JPMorgan Chase & Co. or one of its subsidiaries to the extent that such subsidiary has adopted the plan.

Please Note: An individual classified or employed in a work status other than as a common law salaried employee by his/her employer, such as an:

Independent contractor/agent (or its employee);

Hourly-paid employee;

Intern; and/or

Occasional/seasonal, leased, or temporary employee,

is not eligible to participate in the plan regardless of whether an administrative or judicial proceeding subsequently determines this individual to have instead been a common law salaried employee.

Long-Term Disability Plan Options

The LTD Plan provides a level of income replacement should you continue to be disabled for more than 182 days. If approved by The Hartford, the claims administrator and insurance carrier, the plan provides you with a monthly benefit based upon a percentage of your benefits pay, less certain other disability benefits. Benefits pay under the plan is limited to $700,000.

You can choose long-term disability coverage from among the following options:

Replacement of 50% of benefits pay, to a maximum monthly benefit of $29,167;

Replacement of 60% of benefits pay, to a maximum monthly benefit of $35,000;

Replacement of 60% of benefits pay plus two-year average bonus paid or deferred, to a maximum monthly benefit of $35,000, if eligible. (Please see "Important Terms" for the definition of "Benefits Pay" and "Bonus.")

Please Note: Employees paid on a draw-and-commission basis are not eligible for this option. In addition, new employees are not generally eligible to participate in this option; however, you may be able to participate if you meet the following criteria and are able to submit appropriate documentation:

You were previously enrolled in a group long-term disability plan that allowed you to include cash bonuses as eligible compensation (you must provide proof of participation and a copy of the summary plan description for the plan); and

You received in your offer letter from JPMorgan Chase a bonus guarantee (you must provide the letter).

If you meet the above criteria, you can call the Benefits Call Center to request this LTD coverage option at the time you are first eligible for coverage; or

No Coverage.

Your benefit is subject to offset by other disability-related income benefits. Please see "Important Terms" for the definition of "Benefits Offset."

The maximum monthly benefit represents the maximum you would receive per month if you earn, either as a base or base plus bonus, $700,000 or more.

Cost of Coverage

You pay for LTD coverage on a before-tax basis, and as a result you may generally be required to pay applicable income taxes on any benefits you may eventually receive. Your cost depends on your benefits pay, the level of coverage you choose, and your status as a smoker or non-smoker. (Please see "Important Terms" for the definitions of "Benefits Pay" and "Disabled" or "Disability.")

For the 50% and 60% LTD options, your benefits pay is updated as changes occur throughout the year. Under the 60% of Benefits Pay Plus Bonus option, your two-year average bonus remains fixed throughout the year for purposes of the LTD Plan. However, any adjustments in your benefits pay will be made throughout the year, as noted above.

Your contributions toward the cost of coverage begin on or near the first day of the pay period in which your coverage begins. Your contributions are automatically deducted from your paycheck in equal installments (unless retroactive payments are required).

If you become eligible to receive benefits under the plan, you won't have to pay for your coverage during any approved period of long-term disability.

Smoker Status

Employees who do not smoke pay less for LTD coverage. Each year, employees must verify their status as a non-smoker or smoker. To be considered a non-smoker and pay lower, non-smoker rates under the plan for a plan year, you must be smoke free for at least 12 months as of January 1 of that plan year, or complete an approved smoking cessation program. If you continue to smoke, you will need to complete an approved smoking cessation course annually to continue to qualify for the lower, non-smoker rates.

Please Note: In your first calendar year of employment, you will be assigned non-smoker rates even if you declare yourself a smoker, because you may not have had an opportunity to complete a smoking cessation course in order to qualify for the lower, non-smoking rates. In subsequent years, however, you will be eligible for non-smoker rates only if you have been smoke-free for 12 months (as of January 1) or if you complete a smoking cessation course, as described in the preceding paragraph.

However, if you were hired on or after October 1, for the current plan year and the following plan year you will be assigned non-smoker rates for your coverage even if you declare yourself a smoker, because you may not have had an opportunity to complete a smoking cessation program in order to qualify for the lower, non-smoker rates.

How Smoker Is Defined

Under the JPMorgan Chase Benefits Program, a person who has smoked any type of tobacco product (e.g., cigarettes, cigars, or a pipe) regardless of the frequency or location (this includes daily, occasionally, socially, at home only, etc.) in the 12 months preceding any January 1 is considered a "smoker." This definition does not pertain to users of tobacco products that are not smoked, such as chewing tobacco or snuff.

How to Enroll

Participation in the Long-Term Disability Plan is optional.


If You:	What You Need to Do to Enroll:
Are an Employee	During an annual benefits enrollment period, you need to make your choice through the Benefits Web Center via My Rewards @ Work or via the Benefits Call Center. At the beginning of each enrollment period, you'll receive instructions on how to enroll. You'll also receive information about the choices available to you and their costs at that time. You need to review your available choices carefully and enroll in the option that best meets your needs.
Are a Newly Eligible or Newly Hired Employee	If you've just joined JPMorgan Chase and are enrolling for the first time, you can make your elections through the Benefits Web Center via My Rewards @ Work or via the Benefits Call Center within 31 days of your date of hire if you are a full-time employee, and within 31 days prior to becoming eligible if you are a part-time employee. Part-time employees will receive their enrollment materials within 31 days prior to becoming eligible and can enroll at that time. You can access your benefits enrollment materials online via Company Home > HR & Personal > Pay & Benefits > Enrollment Materials. (In most cases, a copy of these materials will also be sent to you via interoffice mail. However, you do not need to wait for these materials to arrive to make your enrollment election online.) During this 31-day period, your LTD coverage is guaranteed and no health-related questions will be asked. Your next opportunity to enroll will be during the annual benefits enrollment period and you will be required to submit evidence of insurability.
Have a Change in Work Status	If you're enrolling during the year because you're a newly eligible employee due to a work status change, you'll have 31 days from the date of the change in status to make your new elections through the Benefits Web Center via My Rewards @ Work or by calling the Benefits Call Center and speaking with a Service Representative. During this 31-day period, your LTD coverage is guaranteed and no health-related questions will be asked. Your next opportunity to enroll will be during the annual benefits enrollment period and you will be required to submit evidence of insurability.

If You Do Not Enroll

The Additional Advantages of Electing LTD Coverage

If you qualify to receive benefits under the JPMorgan Chase Long-Term Disability (LTD) Plan, you will also continue to receive company-sponsored benefits, such as subsidized medical coverage, as well as dental coverage, basic life insurance, and pay credits under the Retirement Plan. Please carefully consider these additional advantages when deciding whether to elect LTD coverage.

If you choose not to enroll in the LTD Plan, or if you enroll in the LTD Plan but are denied benefits under the plan, your employment and your participation and coverage in the JPMorgan Chase benefit plans described above will end when your benefits under the Disability Leave Policy end, unless you are approved for additional leave under another JPMorgan Chase Policy, such as the Disability and Reasonable Accommodation Policy. If you participate in the LTD Plan and receive LTD benefits, then you may continue to participate in certain benefit plans and receive pay credits under the Retirement Plan.

When Coverage Begins

Generally, you must be actively-at-work on the effective date of the coverage (including any increase in coverage). (Please see the definition of "Actively-at-Work" in "Important Terms.") If you're not, your coverage (including any increase) will take effect on the day you return to work. Here are additional time frames and conditions for when coverage can begin:


If You:	When the Coverage You Elect Begins:
Are an Employee	If you enroll for coverage for the first time (or increase current coverage) during an annual benefits enrollment period, evidence of insurability (EOI) is required. A Personal Health Application (PHA) form will be mailed to your home address. Generally, your new or increased coverage will take effect on the later of the date that your PHA form is approved by the insurance carrier or the day you return to work. Your contributions toward the cost of coverage will begin on or near the first day of the pay period after your coverage has been approved. If you elect to reduce or discontinue your LTD coverage during an annual benefits enrollment period, your election will take effect the following January 1.
Are a Newly Eligible or Newly Hired Employee	If you enroll for coverage as a newly hired employee, coverage takes effect as follows: If you are a full-time employee, the date you become eligible, if you enroll within your 31-day election period. If you are a part-time employee regularly scheduled to work at least 20 but less than 40 hours per week, coverage begins on the first of the month following 90 days from your date of hire if you enroll within your 31-day election period. No evidence of insurability is required in these situations.
Have a Work Status Change	The coverage you elect as a result of a work status change (such as an adjustment to your regularly scheduled work hours that results in a change in benefits eligibility) takes effect the day of the qualifying event, if you have already met the plan's eligibility requirements. No evidence of insurability is required in these situations.

Please see "Pre-Existing Condition Exclusion" for details about how pre-existing conditions may impact when coverage begins.

Employees who are not actively-at-work during the annual benefits enrollment period can still make elections for new coverage or changes in coverage. However, the change in coverage will not become effective until the day the employee returns to active employment from an absence due to illness or injury.

Evidence of Insurability

Evidence of insurability (EOI) is required if you are electing long-term disability coverage for the first time during an annual benefits enrollment period (and you are not a newly hired employee or a newly eligible employee) and for increases in benefit amounts above the assigned coverage indicated on your Personalized Fact Sheet during an annual benefits enrollment period. If you elect a long-term disability coverage level that requires EOI, you will receive a Personal Health Application (PHA) form from The Hartford after the end of your designated enrollment period. If you do not complete and return the PHA form or if your application is not approved by The Hartford, only previously assigned coverage amounts not requiring EOI will be effective, which might include no coverage.

Since employees generally do not receive a bonus when they are first hired, if you receive a bonus in the year following the year of your hire and you elect the 60% of Benefits Pay Plus Bonus option for the first time during the next annual benefits enrollment period, you will not have to submit EOI, assuming you already participate in the 60% plan. If you elect to cover your bonus during a later annual benefits enrollment period, EOI will be required. If you are enrolled in the 50% plan and elect the 60% of Benefits Pay Plus Bonus option during an annual benefits enrollment period, EOI will be required.

Pre-Existing Condition Exclusion

If you were not covered under the LTD Plan previously and you are electing LTD coverage for the first time; or, if you were covered previously, your coverage subsequently terminated, and you have since become re-enrolled under the LTD Plan with a new coverage effective date, then LTD benefits will not be paid if:

During the first 12 consecutive months of your coverage you become disabled; and

You received treatment for that disabling condition during the six months before your most recent coverage effective date.

A similar rule applies if you are increasing coverage, except that LTD benefits will be paid at the original (lower) coverage level you had before making your 2008 elected increase.

You have a pre-existing condition if you received treatment, consultation, care, or services (including diagnostic measures), or took prescribed drugs or medicines for the condition in the six months prior to your effective date of coverage.

Eligibility for Other Benefits

Important Note Regarding Eligibility for Other Benefits

If you accept a settlement of your LTD claim from the LTD claims administrator, JPMorgan Chase will no longer consider you a "benefits-eligible individual" and as such, any health and income protection benefits you were receiving as a result of your active receipt of LTD payments will end. Please carefully consider this if you decide to accept a settlement offer.

While you're receiving LTD benefits, you'll be considered a "benefits-eligible individual" and will remain eligible to participate in a number of other JPMorgan Chase benefits plans — as long as you continue to make any required contributions for your elected coverage. These plans include:

Medical Plan — You can continue current coverage at active employee rates, even if you become eligible for Medicare;

Dental Plan — You can continue current coverage at active employee rates;

Vision Plan — You can continue current coverage at active employee rates;

Basic Life Insurance — Coverage will continue at no cost to you;

Supplemental Term Life Insurance — You can continue current coverage at active employee rates; you cannot elect new coverage or increase coverage for yourself or your dependents;

Accidental Death and Dismemberment Insurance — You can continue current coverage at active employee rates; you cannot elect new coverage or increase coverage for you or your dependents;

Long-Term Care Insurance — You can continue current coverage, but you will be billed directly by MetLife, the claims administrator;

Group Legal Services Plan — You can continue current coverage at active employee rates;

Retirement Plan — You will continue to receive pay credits based on your pay credit percentage and benefits pay at the time you begin receiving LTD benefits. You'll earn full pay credits, but at the pay credit percentage you were receiving at that time;

Survivor Support® Financial Counseling Service — Your participation will continue at no cost to you; and

Employee Assistance Program — Your participation will continue at no cost to you.

Coverage for the Child/Elder Care and Transportation Spending Accounts, as well as Business Travel Accident and Short-Term Disability, automatically stops when you receive LTD benefits. Coverage for the Health Care Spending Account will continue until the next annual benefits enrollment period. In addition, you are not responsible for premiums related to LTD coverage while receiving LTD benefits.