Index

About Pre-Tax Spending

Eligibility and Enrollment

Pre-Tax Contributions for Medical, Dental and Vision Plan Coverage

Health Care Flexible Spending Account

Dependent Care Flexible Spending Account

Claiming Reimbursement

Tax Implications

Administrative and ERISA Information

Continuation Coverage

Q. Can coverage be continued after eligibility for this Plan ends?
A. Yes. The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) entitles you and your covered dependents to extend benefits beyond the date your coverage would normally end.

Continuation Coverage Rights Under COBRA

Introduction
You are required to be given the information in this section because you are covered under a group health plan, known as a health care flexible spending arrangement (referred to in this section as the Plan or HCFSA). This section contains important information about your right to COBRA continuation coverage, which is a temporary extension of coverage under the Plan. This section generally explains COBRA continuation coverage, when it may become available to you and your family, and what you need to do to protect the right to receive it.

The right to COBRA continuation coverage was created by a federal law, the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA continuation coverage can become available to you when you would otherwise lose your group health coverage. It can also become available to other members of your family who are covered under the Plan when they would otherwise lose their group health coverage. For additional information about your rights and obligations under the Plan and under federal law, you should review this SPD or contact ExxonMobil Benefits Administration/ Health Plan Services at the telephone numbers or address listed under Benefits Administration on page 33.

What is COBRA Continuation Coverage?

COBRA continuation coverage is a continuation of plan coverage when coverage would otherwise end because of a life event known as a "qualifying event." Specific qualifying events are listed later in this section. After a qualifying event, COBRA continuation coverage must be offered to each person who is a "qualified beneficiary." You, your spouse and your dependent children could become qualified beneficiaries if coverage under the Plan is lost because of the qualifying event. Under the HCFSA, qualified beneficiaries who elect COBRA continuation coverage must pay for COBRA continuation coverage.

An employee will become a qualified beneficiary if the employee loses coverage under the HCFSA because either one of the following qualifying events happens:

• Hours of employment are reduced; or
• Employment ends for any reason other than the employee's gross misconduct.

The spouse of an employee will become a qualified beneficiary if the spouse loses coverage under the HCFSA because any of the following qualifying events happens:

• The employee dies;
• The employee's hours of employment are reduced;
• The employee's employment ends for any reason other than his or her gross misconduct;
• The employee becomes entitled to Medicare benefits (under Part A, Part B, or both); or
• Divorce.

Dependent children will become qualified beneficiaries if they lose coverage under the HCFSA because any of the following qualifying events happens:

• The parent-employee dies;
• The parent-employee's hours of employment are reduced;
• The parent-employee's employment ends for any reason other than his or her gross misconduct;
• The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both);
• The parents become divorced; or
• The child stops being eligible for coverage under the Plan as a dependent child.

When is COBRA Coverage Available?
The Plan will offer COBRA continuation coverage to qualified beneficiaries only after the correct Benefits Administration entity has been notified that a qualifying event has occurred. When the qualifying event is the end of employment or reduction of hours of employment, death of the employee or retiree, or commencement of a proceeding in bankruptcy with respect to the employer, the employer must notify the correct Benefits Administration entity of the qualifying event. See page 33 for the contact information of Benefits Administration entities.

You Must Give Notice of Some Qualifying Events
For the other qualifying events (divorce or a dependent child's losing eligibility for coverage as a dependent child), you must notify the correct Benefits Administration entity within 60 days after the later of the date the qualifying event occurs or the date you would lose benefits under the Plan. page 33 for the contact information of Benefits Administration entities. Notices of these qualifying events from current employees must be made by logging onto Employee Direct Access (EDA) located on the ExxonMobil Me HR Intranet site. Forms are also available from ExxonMobil Benefits Administration/Health Plan Services for those individuals who do not have access to EDA. Notice is not effective until either an EDA change is made or the properly completed form is received by Benefits Administration.

How is COBRA Coverage Provided?
Once the correct Benefits Administration entity receives notice that a qualifying event has occurred, COBRA continuation coverage will be offered to each of the qualified beneficiaries. Each qualified beneficiary will have an independent right to elect COBRA continuation coverage. Covered employees or retirees may elect COBRA continuation coverage on behalf of their spouses, and parents may elect COBRA continuation coverage on behalf of their children.

COBRA continuation coverage is a temporary continuation of coverage. Because the coverage is HCFSA, this temporary continuation of coverage lasts until the end of the plan year in which the qualifying event occurs and may not be extended beyond that date.

If You Have Questions
Questions concerning your plan or your COBRA continuation coverage rights should be addressed to the contact or contacts identified below. For more information about your rights under ERISA, including COBRA, the Health Insurance Portability and Accountability Act (HIPAA), and other laws affecting group health plans, contact the nearest Regional or District Office of the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) in your area or visit the EBSA Web site at www.dol.gov/ebsa. (Addresses and phone numbers of Regional and District EBSA Offices are available through EBSA's Web site.)

Keep Your Plan Informed of Address Changes
In order to protect your family's rights, you should keep the correct Benefits Administration entity informed of any changes in your address as well as the addresses of dependents. You should also keep a copy, for your records, of any notices you send to Benefits Administration.

Benefits Administration: