Continuation of Benefits Options If You Leave Employment with
The City of Kannapolis, NC | Plan Year: July 1, 2008 - June 30, 2009

WageWorks healthcare FLEXIBLE SPENDING Account
If you have a positive balance (payroll deductions are greater than the amount you have received in reimbursement) in your Health Care Spending Account at the time of your termination, you may continue participation in the Plan for the remainder of the Plan year. If you want to remain in the Plan, you can do so by selecting one of the COBRA options.

If you prefer to terminate your participation and contribution to the Plan, any balance in your account on the date of termination will be forfeited if expenses were not incurred prior to the date of termination. For more detailed information, please call the City Of Kannapolis Benefits Department at 704- 920-4300.

UNITED HEALTHCARE & CITY OF KANNAPOLIS DENTAL PLANS
Under the United Healthcare Medical and City of Kannapolis dental plans, you and your covered dependents are eligible to continue coverage through COBRA according to the "qualifying events".

If you and your dependents are enrolled in either plans, you will be eligible to continue coverage through COBRA after you leave your employment for a specified period. In addition, while covered under the plan, if you should die, become divorced or legally separated, or become eligible for Medicare, your covered dependents may be eligible to continue dental coverage through COBRA. Also, while you are covered under the plan, your covered children who no longer qualify as an eligible dependent may continue coverage through COBRA. Examples of an ineligible dependent would be when your child graduates from college, or reaches the age of not being eligible for dependent coverage. You will receive notification with premium and continuation options shortly following your termination of employment. Should you have any questions you may contact the City Of Kannapolis Benefits Department at 704-920-4300.

ASSURITY CANCER PLAN
When you leave employment you may continue your Assurity Cancer coverage by having the premium that is currently deducted from your paycheck drafted from your bank account. You may contact Assurity at 888-358-8808, ext. 23.

Standard Life Short Term Disability Plan
When you leave employment, you may continue your disability coverage provided continuous employment is maintained. Your new occupation must be within acceptable underwriting guidelines. Coverage expires at age 65. You can have the premium that is currently deducted from your paycheck drafted from your bank account. You may contact Standard Life at 800- 327-0695.

Jefferson pilot FINANCIAL INSURANCE COMPANY TERM LIFE

Conversion
If your employment terminates while you are covered under the plan or when you are approved for long-term disability, you may purchase without medical evidence of insurability, any individual insurance policy, except a term policy. You must apply for conversion within 31 days after the date your coverage terminates. This applies to Optional Life and Dependent Life as well as the basic coverage.

Coverage is underwritten by Jefferson Pilot Financial Insurance Company, Omaha, NE, a Lincoln Financial Group company. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

Continuation of Coverage

This option gives you the opportunity to continue your Term Life Insurance policy without submitting Evidence of Insurability, if employment or policy terminates due to anything other than sickness, injury or retirement. Coverage must be in force for at least 12 months in a row to be eligible. Continuation of coverage applies to Optional Employee Life Insurance and Accidental Death and Dismemberment.

When you terminate coverage, you should receive a conversion and/or continuation form from your group administrator with the coverage volume and other group related information already completed.

To Continue your coverage, you will submit the necessary premium for a continued policy along with the signed continuation form.

To receive a conversion quote you may call Jefferson Pilot at 800-423-2765 and one of their Client Management Representatives will assist you with the conversion process.

Transamerica accident
When you leave employment you may continue your Transamerica Accident coverage by having the premium that is currently deducted from your paycheck drafted from your bank account. You may contact Transamerica at 800-400-3042.

UNUM Universal LIFE
When you leave employment you may continue your Unum Provident Universal Life coverage by having the premium that is currently deducted from your paycheck drafted from your bank account. You may contact Unum Life at 800- 635-5597.

Important Phone Numbers:

City of Kannapolis Benefits Department - 704-920-4300

Mark III Brokerage, Inc.- 800- 532-1044

United HealthCare - 800-259-1605

WageWorks Health and Dependent Care - 877-924-3967

Assurity Cancer - 888-358-8808, ext. 23

Standard Life Short Term Disability - 800-327-0695

Transamerica - 800-400-3042

Jefferson Pilot Term Life - 800-423-2765

Unum Provident Universal - 800-635-5597