The cost of your coverage under each of the healthcare plans is listed in the sections that describe each plan.

Your costs for coverage may change. Generally, these changes occur each January 1.

The Company reserves the right to change the amount you are required to contribute at any time.

You pay for your coverage (other than coverage for a domestic partner and his/her approved dependent child(ren)) with before-tax dollars.

None. Your annual base salary will be used to calculate all salary related benefits.

Paying for coverage on a before-tax basis means that the amount you pay toward your healthcare coverage comes out of your pay before taxes are withheld, so you are paying taxes on a lower amount of salary. Your take-home pay is higher than it would be if you paid for your coverage on an after-tax basis.

Your Social Security benefits may be slightly reduced because you pay for coverage on a before- tax basis. This is because your Social Security is based on your taxable pay, and your taxable pay is reduced by the amount you pay for healthcare coverage.

Your contribution to cover a domestic partner and the dependent child(ren) of a domestic partner is the same as the cost to cover other eligible family members. However, because of IRS requirements, these contributions will be made on an after-tax basis—even for coverage that would in most cases be paid on a before-tax basis. Additionally, the difference between the cost of coverage and your contributions could be imputed as taxable income to you.

An exception applies if you domestic partner and the child(ren) of a domestic partner are your tax dependents. If your partner (or his or her child(ren)) qualifies as a dependent under IRS Section 152and IRS Publication 501, your contributions for domestic partner coverage will be on a before-tax basis, and imputed income would not apply.

Under current tax laws, the Company's cost for providing healthcare coverage to domestic partners results in "imputed income" to you; you must pay tax on this income. The full cost of domestic partner coverage (both the employee and employer contributions to coverage) is subject to federal, Social Security (FICA) and if applicable, state and local income taxes.

Your amount of imputed income equals the full cost to cover your partner (and/or partner's child(ren)) less your after-tax contribution to cover that person. Your dollar amount of imputed income is calculated every payroll cycle and is reflected on your semi-monthly electronic pay check. It is also reported on your year-end W-2 Form as a component of taxable income from the Company.

Tables in each of the sections describing an affected healthcare plan show the imputed income amounts.

If your domestic partner (or his or her child(ren)) qualifies as a dependent under Internal Revenue Code Section 152 and IRS Publication 501, imputed income does not apply.

You must complete the Declaration of Domestic Partner's Tax Status and return it as the form instructs. You will be notified by the MMC Global Benefits Department if you qualify.