RISD’s New Supplemental Short-Term Disability Plan

1. RISD’s New Supplemental Short-Term Disability Plan

2. INTRODUCTION • PURPOSE OF BENEFIT • Enhance short-term income protection • Replace and improve upon the current Voluntary Short-term Disability Plan (also administered by Prudential Insurance) • 100% employer paid • Benefit coverage increased from 70%, inclusive of TDI, and capped at $1,500/wk. to 80%, inclusive of TDI, no cap.

3. KEY BENEFIT FEATURES • ELIGIBILITY • Non bargaining unit Staff • Budgeted work hours 17.5/week and 910/year • ENROLLMENT • Effective as of July 1, 2010 • Eligible individuals will be automatically enrolled • Current voluntary coverage will cease as of 6/30/10

4. KEY BENEFIT FEATURES (cont) • COST • 100% paid for by RISD • COVERAGE • Seven (7) consecutive days waiting period • 80% of weekly base earnings, inclusive of TDI • Supplemental benefit is taxable as employer paid • Eligible non work-related claims incurred on or after July 1, 2010

5. CLAIMS PROCESS • Employee contacts Prudential • Prudential will gather information from: • Employee • Treating Physician(s) • RISD • Prudential will determine the eligibility of claim and potential benefit amount • Prudential will inform RISD HR/Payroll of claims status and payment amount • Employee receives benefit via payroll check

6. EXAMPLE • RISD employee Stewie • Disabled by doctor for three (3) weeks • Claim filed with Prudential • Claim filed with TDI

7. EXAMPLE (cont) • Prudential will make initial assumption that TDI, if approved, will pay 60% of base salary • Stewie’s pay is $1,000 per week • 80% of $1,000 is $800 • TDI covers 60% of $1,000 or $600 (non taxable) • Supplemental plan will cover remaining 20% or $200 and the $200 is taxable

8. QUESTIONS? Cathy Davis | ext. 6429 | cdavis@risd.edu Steven Lee | ext. 6429 | slee05@risd.edu