Liberty Mutual Group Benefits and Leland Stanford Junior University

1. Liberty Mutual Group Benefitsand Leland Stanford Junior University FMLA and Leave Administration

2. FMLA—Did You Know? • 50 to 75 % of FMLA and STD leaves are for the same employee absence1 • The U.S. Department of Labor found violations of FMLA regulations in 53%of cases investigated2 • FMLA costs employers $21B+ not counting costs for administration, compliance, & tracking3 • Employees on FMLA are five times more likely to apply for STD4 1. Liberty Mutual Group Benefits Leave Services analysis of customer data. 2008. 2. U.S. DOL. Wage & Hour Division. http://www.dol.gov/esa/whd/statistics/2008FiscalYear.htm 3. http://www.inc.com/news/articles/200504/fmlastudy.html# 4. Workforce Management. Pushing for an integrated approach to employee health. January 2009.

3. Liberty Mutual • Founded in 1912 • 41,000 employees in >900 offices worldwide • Administering FMLA services since 1996* • Recordkeeping FMLA leaves for >900,000 employees* • Consistent track record of high customer satisfaction * Services Provided by Liberty Life Assurance Company of Boston, a member of the Liberty Mutual Group.

4. What Is FMLA? • 12 weeks of unpaid job protection in a 12 month period • Employee’s own Serious Health Condition (SHC) • Care for a qualifying family member with a SHC (parent, spouse, child, domestic partner • Continuous Leave (an absence of more than 3 days) • Intermittent Leave

5. Family Medical Leave Act (FMLA) • 12 weeks of unpaid job protection in a 12 month period • Employee’s own Serious Health Condition (SHC) (pregnancy related/maternity) • Family leave may also be referred to as “bonding with the child” leave • Eligibility requirements: worked 12 months for the employer and have worked 1250 hours within 12 months immediately preceding the leave begin date. In order for the location to be eligible it must have 50 employees within a 75 mile radius

6. Serious Health Condition • Illness, injury, impairment, or physical or mental condition • Hospital care • Absence plus treatment • Pregnancy • Chronic conditions requiring treatment • Permanent/long-term conditions requiring supervision • Multiple treatments

7. Medical Leave • Employee’s spouse, child, or parent with a serious health condition • Employee unable to perform the functions of his/her job due to a serious health condition

8. What Is Family Leave? • Family leave may also be referred to as a leave to bond with a child for the below purposes: • Birth of a child • Adoption • Foster care

9. Eligibility Requirements for FMLA • 12 months of service with Leland Stanford Junior University • 1250 service hours within the past 12 months immediately preceding the leave begin date • Leave requested qualifies under FMLA such as the serious health condition and the covered family member definitions

10. FMLA Administration—Military Leave • Military Caregiver Leave for Covered Service Member (spouse, child, parent, or next of kin) • Up to 26 weeks of leave in a single 12 month period • Qualifying Exigency (spouse, child, parent) • Up to 12 weeks of leave in a 12 month period

11. Qualifying Exigency—Covered Service Member Under FMLA • Covered Service Member • Qualifying Exigency • Short-notice deployment • Military events and related activities • Childcare and school activities • Financial and legal arrangements • Counseling • Rest and recuperation • Post-deployment activities • Additional activities

12. State Leave Administration • Liberty Mutual currently administers 22 state leaves(CA, CO, CT, DC, HI, IA, KY, LA, MA, ME, MN, MT, NE, NJ, OR, OH, PA, RI, TN, VT, WA, WI) • State leave applied when benefit complements or enhances federal • State leave time applied during initial processing • State leaves may run concurrently with, prior to, or after federal benefit

13. State Leave Law Administration Rules • If the employer is subject to both the federal and state leave laws: • The employee is eligible to be protected under the federal and state leave laws • Employer must provide the employee with the greatest protection under the two laws if they overlap

14. Administration of FMLAin the State of CA

15. Pregnancy Disability Leave • Unpaid job protection for female employees • Up to 16 weeks of job protection which may run concurrent with FMLA • Medical certification is required • Qualifying events include pregnancy, childbirth and related conditions

16. California Family Rights Act (CFRA) • After the pregnancy disability leave (PDL) ends, the employee, if eligible under the CFRA, may request an additional 12 weeks of unpaid leave for bonding with her new child • CFRA allows employees to take unpaid family leave for the birth of a child, the adoption or placement of a minor foster child in their home, or a serious health condition of self, parent, child, or spouse • You must inform your supervisor of your decision to take CFRA leave as soon as possible and tell them the amount of time you require and when it will occur

17. Family Temporary Disability (FTD) • FTD insurance benefits are based on the claimant’s (care provider’s) earnings which can be 60% of your weekly salary or up to the State maximum per week for up to six weeks • FTD does not provide job protection or return rights. Your job may be protected if your employer is subject to the federal Family Medical Leave Act and the California Family Rights Act • For more information, visit: • http://benefits.stanford.edu/cgibin/health_and_life/disability/ • http://benefits.stanford.edu/doc/family_disability_faq.01_04_2010.pdf

18. Typical Maternity Leave

19. Intermittent Bonding • Two instances of Intermittent Bonding leave are allowed in the state of California • The minimum duration of FMLA/CFRA leave must be at least one day but less than two weeks' duration on any two occasions. Leave for childbirth or placement for adoption or foster care must conclude within twelve (12) months of the birth or placement. • FMLA/CFRA leave is provided to either parent for birth, adoption, or foster placement of a child

20. Leave Administration Plan Provision • Calendar year entitlement tracking period • Employee’s regain their FMLA entitlement on January 1st • Any day of the year can be counted against FMLA entitlement • Recertification period is 365 days • Eligibility re-check on January 1st

21. Intermittent Leaves • Intermittent time sheets must be submitted and signed by HR or Supervisor for SLAC • Campus-DLS tracks the Intermittent usage and reports the time to Leave Services • DLS requests hours at the end of each pay period • DLS sends hours to Liberty Mutual each Monday

22. Disability and Leave Process

23. The Life of an FMLA Only Leave • Day 1: Determine eligibility and entitlement • Day 2: Acknowledgement package sent • Day 15: Leave documentation reminder notification • Day 30: Determination of FMLA • Approval • Closure • Denial

24. The Life of a Coordinated FMLA Leave • Day 1: Determine eligibility and entitlement • Day 2: Acknowledgement package sent • Approval utilizing disability information as a proxy • Up to day 45 determination • Leave separation from VDI (Voluntary Disability Insurance)

25. The Life of FTD and Family Care Leave • Day 1: Determine eligibility and entitlement • Day 2: Acknowledgement package sent to employee • If intermittent, employee to submit medical certification to FMLA for leave approval • If continuous, approval utilizing disability as a proxy

26. Communication with Employee • Employee acknowledgement package • Timeframe to submit forms • 15 day deadline to submit Medical Certification • 15 day grace period • 90 day appeal • Approval letter • Denial letter • Closing claim

27. Resources for Information • Liberty Mutual Leave Services team • (800)283-0823 • LEADSADMIN@libertymutual.com • Infosource for reports, contracts and forms • Department of Labor (DOL) www.dol.gov

28. ClaimTrac

29. ClaimTrac

30. ClaimTrac

31. Thank You!