GMAC PR Flex Guide

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					                      flex
                     2004       Flex Resource
                                        Guide
                                For GMAC and MIC Employees
                                              in Puerto Rico




Enroll for Flex 2004
October 27 – November 7, 2003
                                                       Choices and
What’s Inside                                          Flexibility
This Flex Resource Guide contains details
you can use as a reference to help in your             Remember that choices and flexibility are
decision making. It outlines your enrollment           what annual enrollment is all about. GM
options for 2004 as well as the process for            provides you with a range of options so that you
verifying eligible dependents, concentrating on        can choose the benefits that you feel are most
some of the items you should consider while            appropriate for you and your family. We
making these decisions. Additional information         continually strive to offer you the best possible
is available in the handbook titled Your GM            choices, and provide information and resources
Benefits — available in electronic format online       that you can use in making your enrollment
via MySocrates (under the ”Services” tab, scroll       decisions.
down to “Total Compensation” and click on
                                                       We do this to encourage you to take a look at
“Your GM Benefit Booklets”).
                                                       your needs each year, consider how things in
3     Your Health… You’re in the Driver’s
      Seat
                                                       your life may have changed and decide whether
                                                       a change to your benefit elections makes sense.
5     Adding Quality to Your Health Care
      Decisions
                                                       Remember…you’re in the driver’s seat when it
                                                       comes to your GM Flex benefits. If you choose
8      Flexible Compensation Payment                   not to make any changes, your elections
10     Ayco Financial Planning                         currently in effect will continue for the 2004
                                                       plan year with the applicable 2004 monthly
12     Flexible Benefits At-A-Glance                   contributions, if available and you remain
14    How to Verify Dependent Information              eligible.

18     Medical Options
                                                         GM is Committed…
22    Extended Care Coverage (ECC)

24    Dental Options                                     To improving the quality of health care and
                                                         the quality of life for GM employees and their
26     Vision Options                                    families. We work year-round to maintain
                                                         quality options in the face of increasing costs.
28     Supplemental Extended Disability
       Benefit Options                                   Your medical options and coverages continue
                                                         to be among the best in the nation.
30     Basic and Optional Life Insurance
       Options

33     Dependent Life Insurance Options

35     Personal Accident Insurance Options

36    Personal Accident Insurance Options
      for Dependents




                                                   2
Your Health…You’re in the Driver’s Seat
During the annual enrollment you have an               Your Health Care Resources
opportunity to re-evaluate your health care
                                                       Health Care Plan Summaries. You can access
options and decide whether any changes may
                                                       health plan coverage summaries for each of the
improve the care that you receive. Ask yourself
                                                       options available to you through the enrollment
if you are making the best choices for you and
                                                       web site.
your family, and consider how these choices
may affect your out-of-pocket costs and the            LifeSteps. You can use LifeSteps to help you
way in which you want to receive care.                 assess how healthy and fit you are, as well as
                                                       learn about personal health and safety issues.
GM is constantly striving to improve the quality
                                                       The confidential LifeSteps Health Risk Appraisal
and delivery of health care while developing           (HRA) helps evaluate a person’s health status
tools to help you — the consumer — make
                                                       and develop plans to maintain and improve it.
informed decisions. Take the time to carefully
                                                       If you would like to fill out an HRA, visit the
review your enrollment information and refer
                                                       LifeSteps web site at www.lifesteps.com.
to the other resources that GM provides. The
more you understand in terms of quality, cost          Quality Information. You can use the quality
and coverage, the better your ability to make          information (provided in the health plan
well-informed health care decisions and enroll         summaries through the enrollment web site) to
in the options that will best meet the needs of        compare the quality of your health care choices.
you and your family.                                   HMO plans are evaluated in five categories —
                                                       Access and Service, Doctor Communication and
In addition to determining which plan is right
                                                       Service, Staying Healthy, Getting Better/Living
for you, also consider how you can become
                                                       with Illness and Accreditation.
a better health care consumer throughout
the year.



                                                       Enroll Online
                                                       October 27 — November 7, 2003
                                                       You can access the enrollment web site from
                                                       work via MySocrates or from home at
                                                       http://socrates.gm.com. Go to MySocrates and
                                                       select the “Services” tab. View the “What’s
                                                       New” section and select “Flex 2004 Enroll.”
                                                       Remember, you will need your GMID, password
                                                       and GM PIN to enroll. If you have problems
                                                       accessing MySocrates, call the MySocrates
                                                       Customer Assistance Center at 1-866-467-6222.




                                                   3
Four Steps to Safer Health Care                                Generic Drugs — Safe, Effective,
                                                               FDA-Approved
Did you know that up to 98,000 Americans die in
hospitals each year as a result of preventable                 When considering a product, most consumers
medical errors? Here are four simple things you can            weigh cost with quality to determine the best
do to help reduce the risk of medical errors in your           value for their money. Many health care consumers
health care:                                                   choose pricier, well-known brand-name drugs over
                                                               the less expensive generic equivalent — assuming
■   Choosing your doctor is the first step in                  that higher cost equals higher quality. But, this is
    improving your safety in health care.                      not the case when it comes to prescription drugs.
    One of the best ways to evaluate doctors who
    participate with your plan is to be sure they are          Generic drugs cost 25 to 80 percent less than
    board certified. That means the doctor has                 brand-name drugs, but offer equally effective
    completed a prescribed period of residency in a            treatment. The Food and Drug Administration
    specialty, passed oral and written exams and               (FDA) regulates generic drugs, putting them
    handled a specified number of cases. Board                 through many rigorous tests to make sure they
    certification is no guarantee of quality,                  are interchangeable with their brand-name
                                                               counterparts. For a generic drug to be determined
    but doctors who pass their boards meet
                                                               equally effective by the FDA, it must:
    standards above those required for a medical
    license. To find out if a doctor is board certified,       ■   Have the same active ingredients, dosage form
    visit www.abms.org, call 1-866-275-2267 or                     (e.g., tablet or capsule) and strength as the
    look it up in the Directory of Medical Specialists             brand-name drug
    (usually available at local libraries).
    Hospital affiliations. The ideal doctor is
                                                               ■   Act on the body in the same way and to the
    probably affiliated with a well-equipped                       same degree as the brand-name drug
    hospital, either as a staff member or as an                ■   Be approved as safe and effective
    attending physician. Without this arrangement,
    you will have to see another doctor to be                  ■   Follow the same strict manufacturing guidelines
    admitted into the hospital. You can gather                     as the brand-name drug
    information about professional qualifications              ■   Have the same patient information inserts as
    and practice arrangements by asking the doctor’s               the brand-name drug
    office staff or by checking the Directory of
    Medical Specialists.
■   If you need surgery, consider an                                Prescription Drug Reminder
    experienced hospital where the procedure
                                                                    For the Basic Medical Plan (BMP),
    you need is performed frequently. Don’t
                                                                    Enhanced Medical Plan (EMP), Preferred
    forget to predetermine service with your health
                                                                    Provider Organizations (PPOs) and
    plan, if required.                                              Activecare — if there is a generic
■   Speak up if you have questions or                               equivalent available for a covered, brand-
    concerns. You have every right to ask questions                 name medication, the Program pays at the
    about your condition and treatment options.                     generic level. This means that if you
    If you are not sure, ask for a second opinion.                  receive the brand-name medication, you
■   When your doctor writes a prescription,                         are responsible for the generic copayment
                                                                    plus the difference in cost between the
    make sure you can read it. If you cannot read
                                                                    generic and the brand-name drug.
    your doctor’s handwriting, your pharmacist might
    not be able to read it either.
                                                           4
Adding Quality to                                       Here’s what the stars tell you:
                                                        ★★★★★ Plan performance is considerably
Your Health Care                                              better than average
                                                        ★★★★
Decisions                                                            Plan performance is better than
                                                                     average
Choosing a health plan is an important decision.        ★★★          Plan performance is average
You have to think about the services you and            ★★           Plan performance is worse than
your family need, the costs you can afford and                       average
how easy it will be to obtain care when you             ★            Plan performance is considerably
need it. You also need to think about the quality                    worse than average
of the care you will receive. It is important to
compare quality because some health plans,              Look for HMOs with the most stars in the
doctors and hospitals do a better job than              categories that are most important to you and your
others. GM is offering you access to some of            family.
the best health care organizations in the nation
— but even among these organizations,                   A Close-up Look at What’s
differences in quality exist. That is why GM            Measured
has joined forces with other auto companies             Access and Service
and selected health care purchasers to create           More stars mean that more individuals:
better ways to measure the quality of health            ■ Receive care quickly
plans — and report the results to you.                  ■ Receive helpful, informative customer service
                                                        ■ Have their complaints handled well by the
The quality report card on the enrollment web
                                                          health plan
site compares HMOs offered by GM. In some
markets, the report card also includes limited          ■ Give their health plan high ratings

quality information for PPOs, the Basic Medical
                                                        Doctor Communication and Service
Plan and the Enhanced Medical Plan.                     More stars mean that more individuals:
                                                        ■ Have doctors who listen and communicate well
Benchmark HMO
                                                        ■ Receive courteous, helpful service from the
This measure is specific to GM. “YES” means
                                                          doctor’s staff
that the HMO meets the highest quality, service
                                                        ■ Give high ratings to their personal doctor,
and cost standards GM has set for the HMOs
offered. High quality health care does not always         specialists and overall care
mean higher cost. If you select a benchmark             Staying Healthy
HMO, your monthly contributions will be the             More stars mean that more individuals receive
lowest required for any HMO offered.                    appropriate:
                                                        ■ Screenings for breast cancer and cervical cancer
What’s In the Stars?
                                                        ■ Childhood and adolescent immunizations
In each quality category, an average health plan
                                                        ■ Prenatal care and check-ups after childbirth
earns three stars. Plans earn more stars if they
are better than the average plan in the report          ■ Well-child visits and adolescent well-care visits

card and fewer stars if they are worse.


                                                    5
Getting Better/Living with Illness                       Where the Information Comes From
More stars mean that more individuals receive:           Information for the report card comes from survey
■ Appropriate treatment after a heart attack             responses of individuals enrolled in HMOs, visits to
■ Timely follow-up after being in the hospital for       HMOs and data on the care provided. The
  mental illness                                         information is audited, scored and reported by
                                                         independent organizations — not by the health
■ Exams when they have diabetes
                                                         plans or GM.
Accreditation
Each HMO plan is eligible to receive one of the
                                                             Important Notes
following accreditation outcomes from the
National Committee for Quality Assurance                     ■   GM does not endorse or
(NCQA):                                                          recommend any particular HMO.
■ Excellent — Achieves the highest range of
                                                                 Some options (BMP, EMP and PPOs)
   national or regional performance                              have not been rated in sme categories
                                                                 because there is not an existing
■ Commendable — Meets or exceeds all
   requirements                                                  process for gathering necessary data.
■ Accredited — Meets most requirements
                                                             ■   The measurements referred to are
                                                                 based on existing data and may
■ Provisional — Meets some, but not all
                                                                 not necessarily represent the quality
   requirements
                                                                 of care you will receive in the future,
■ Not Accredited — Did not apply, failed to
                                                                 nor do the measurements represent
   receive or is currently under review for
                                                                 the quality of care you will receive for
   accreditation
                                                                 any particular service from any
Note: PPOs are accredited by the American                        particular HMO.
Accreditation Health Care Commission/URAC and                ■   Remember — the choice of a
are only eligible to receive an outcome of
                                                                 medical plan is a personal one.
“Accredited” or “Not Accredited.” The other
three accreditation outcomes do not apply.                       You are solely responsible for your
                                                                 selection. If you have any questions
                                                                 about a particular HMO, you should
                                                                 contact that HMO directly.
                                                             ■   HMOs and PPOs may not be
                                                                 available in all geographic
                                                                 locations due to issues such as cost,
                                                                 quality and access.




                                                     6
Quick Checks for Quality                               When choosing a treatment, make sure you
                                                       understand:
Look for a plan that:
                                                       ■ What your diagnosis is
■ Has been rated highly by its members on the
  things that are important to you                     ■ Whether treatment is needed at this time
■ Does a good job of helping people stay               ■ What your treatment options are
  well and get better                                  ■ Whether the treatment options are based
■ Has a favorable accreditation outcome, if that         on the latest scientific evidence
  is important to you                                  ■ The benefits and risks of each treatment
■ Has the doctors and hospitals you want or need       ■ The cost of each treatment
■ Provides the benefits you need
                                                       Look for a hospital that:
■ Provides services where and when you
  need them                                            ■ Is covered by your health plan
■ Meets your budget                                    ■ Is accredited by the Joint Commission on
                                                         Accreditation of Healthcare Organizations
Look for a doctor who:                                 ■ Is rated highly by State or consumer or
■ Participates with your health plan                     other groups
■ Is rated to give quality care                        ■ Is one where your doctor has privileges,
                                                         if that is important to you
■ Has the training and background that
  meet your needs                                      ■ Has experience with your medical condition
■ Takes steps to prevent illness — for example,        ■ Has had success with your medical condition
  talks to you about quitting smoking                  ■ Checks and works to improve its own
■ Has privileges at the hospital of your choice          quality of care
■ Encourages you to ask questions
                                                       Look for a long-term care facility that:
■ Listens to you
                                                       ■ Has been found by State agencies, accreditors
■ Explains things clearly                                or others to provide quality care
■ Treats you with respect                              ■ Has the services you need
                                                       ■ Has a staff that meets your needs
                                                       ■ Meets your budget
    Quality health care means that health                — U.S. Department of Health and Human Services
    organizations, doctors and other
                                                       Quality vs. Cost




                                                                       $
    professionals are striving to do the right
    things at the right time in the right              In comparing HMOs, higher HMO costs do
    amount for the right people. It also means         not necessarily mean higher quality. In fact,
    that the treatment they provide helps              those HMOs with the best performance on
    ensure the best possible results. With             the selected quality measures AND greatest
    quality care, people feel better, function         cost effectiveness generally have the lowest
    better and enjoy a better quality of life.
                                                       monthly contributions.



                                                   7
Flexible                                             ELECTION RULES

                                                     To be eligible for a full FCP allotment, you
Compensation                                         must be a salaried employee with a service date
                                                     on or before January 1, 2004 and on the active
Payment                                              salaried payroll as of January 15, 2004.

OPTIONS                                              You cannot change your 2004 FCP election
                                                     after November 28, 2003.
Flexible Compensation Payment (FCP)
options, if eligible:                                If as of December 31, 2003 you are not
    Cash lump sum paid in March 2004                 eligible to contribute to the S-SPP because
■
                                                     of a suspension resulting from a hardship
■   Lump sum deposited into your S-SPP account       withdrawal, you cannot defer your FCP to
    in March 2004                                    the S-SPP.
The amount of your FCP for 2004 depends on           Employees who retire effective
your length of service as of January 1, 2004,        January 1, 2004 are not eligible for the
as shown below:                                      Flexible Compensation Payment in 2004.
Service as of
January 1, 2004                  FCP Allotment

Less than 5 years                $1,000
5 but less than 10 years         $1,100
10 but less than 20 years        $1,200
At least 20 years                $1,300




                                                 8
CONSIDERATIONS

If you choose an FCP cash lump sum                        A change in employment status
payment, it will be added to your regular                 during 2004 may have an impact on
                                                          your FCP. No FCP will be paid to
March pay. It will be subject to all applicable
                                                          employees terminating GM
income taxes, based on your withholding                   employment on or before March 15,
elections on file.                                        2004 for any reason, other than
                                                          retirement, or to employees retiring
Your FCP contribution to your S-SPP                       effective January 1, 2004.
account is not eligible for GM matching
contributions. The contribution will be on
a before-tax basis. If you reach any tax law
limits, the remaining FCP contribution to your
S-SPP account will be on an after-tax basis or,
                                                          If you are not currently contributing to
in some cases, may not be permitted.
                                                          the S-SPP, electing a FCP contribution to
Your FCP contribution will be invested                    the S-SPP may be an easy way to start
according to your current S-SPP                           the savings habit.
investment election for your “discretionary
contributions” — those contributions which are
not required to be invested in the Corporation
Common Stock Funds.

If you do not have an S-SPP investment
election on file, your FCP contribution will be
invested in the Promark Income Fund until you
make an investment election. To make an S-SPP
investment election, call the GM Investment
Service Center at 1-800-489-4646 or visit the
S-SPP web site at www.gm401k.com. If calling
the GM Investment Service Center from outside
the United States or Canada, you must first
get an AT&T Direct Access number by
(1) visiting www.att.com/traveler, (2) calling
1-800-331-1140 for a list of country codes, or
(3) asking the local operator for assistance. After
you dial your AT&T Direct Access number, enter
1-877-833-9900 to reach the GM Investment
Service Center.

Once the FCP is contributed to the S-SPP,
it becomes subject to all rules and conditions of
the Program.




                                                      9
ALL OF THE FOLLOWING INFORMATION REGARDING AYCO FINANCIAL PLANNING IS PROVIDED BY AYCO

                                                            provide an objective assessment of your current
Ayco Financial                                              financial situation (including stock option
Planning                                                    planning).

                                                            Aycofn.com provides "do-it-yourselfers" with
OPTIONS
                                                            the tools they need to assess their financial
■   No coverage                                             health and prioritize while guiding them through
                                                            the steps they need to take. It allows users to
■   Money In Motion® Personal Finance Program
                                                            keep a secure, easily updatable record of their
                                                            progress and features a variety of financial
                                                            modeling tools. You can model multiple
CONTRIBUTIONS
                                                            scenarios as life events occur and access Ayco’s
Contributions are deducted from your end-of-                online reference library for information on cash
month pay on an after-tax basis. Refer to your              flow, debt management, investments, estate
online personal benefit information for the amount          planning, insurance, tax planning and key life
you will be required to pay for this service.               events.

                                                            Using Aycofn.com in conjunction with an
ELECTION RULES                                              AnswerLine planner can help you make better-
                                                            informed decisions and avoid costly mistakes in
Financial planning is available only to U.S.                today’s complex financial environment.
residents, International Service Personnel
and residents of Puerto Rico.
                                                                About Ayco

FEATURES                                                       The Ayco Company (a wholly owned
                                                               subsidiary of the Goldman Sachs Group,
Real-world personal guidance for all major life                Inc. is widely recognized as one of the
events plus analytical tools for the “do-it-                   nation’s foremost fee-based (i.e.,
yourselfer.”                                                   objective) financial counseling firms, and
The Personal Finance Program provides access to                provides comprehensive financial
an experienced, objective financial planner via the            planning services to employees at over
toll-free Ayco AnswerLine® service as well as the              300 major corporations. Ayco’s financial
interactive power of the Ayco Financial Network                planners are not salespeople, and its
(www.aycofn.com), a password-protected,                        services are not sales programs. Most of
member-only web site that acts as your financial               Ayco’s financial planners hold credentials
mentor and record-keeper. Through The Ayco                     such as a law or MBA degree — or a
AnswerLine®, you can get personalized,                         CPA or CFP certificate. All are required to
professional advice on your planning issues,                   hold NASD securities licenses, and all
including your GM benefits and the financial                   participate in Ayco’s internal training
implications of such life events as getting married,           and continuing education programs.
buying a home, preparing for a child’s education,
helping aging parents and preparing for
retirement. Personalized, topic-specific reports


                                                       10
What the Personal Finance Program includes:                CONSIDERATIONS

■   “Welcome Letter” and brief confidential                This service is designed to be meaningful to
    questionnaire that helps Ayco understand your          all GMAC/MIC salaried employees, at any
    planning needs                                         stage of their lives.
■   Personalized financial counseling via The Ayco         The service includes five hours of telephone
    AnswerLine® service (up to five hours annually)        access to Ayco financial planners familiar
■   Ayco’s Updates newsletters (10 issues)                 with GMAC/MIC benefit plans. Ayco’s
                                                           consultants will provide information on a broad
■   The Ayco-Approved List of Mutual Funds                 range of topics including tax withholding,
■   Access to personalized Focus Reports on                investment allocation, life insurance analysis,
    retirement, asset allocation and education             and estate planning.
    funding
■   Unlimited access to the Ayco Financial
    Network
                                                            For More Information
■   The Investing In Your Future guidebook, a               About the Financial
    comprehensive planning reference                        Planning Option
                                                            ■   Call Ayco’s Customer Service Line at
                                                                1-800-437-6383, Monday through Friday,
                                                                9:00 am to 5:00 pm Eastern time
                                                                (1-518-464-2488 if calling from outside
                                                                of the United States)
                                                            ■   Visit Ayco’s web site at
                                                                www.aycofinancialnetwork.com/afpc/gm
                                                                for more information on the Ayco Financial
                                                                Network ™ and the other services available to
                                                                GMAC/MIC employees




                                                      11
Flexible Benefits                                         The IRS defines “life event changes”
                                                          to be major changes in your family situation.
At -A-Glance                                              For example:

                                                          ■   Certain changes in employment status
How GM Flex Works —                                           for you or your spouse
Annual Enrollment
                                                          ■   Marriage or divorce
OPTION CONTRIBUTIONS                                      ■   Addition or loss of a dependent
Each option has a contribution related to the             ■   Relocation
level of coverage. Refer to your online personal
benefit information for these contributions.              Life Insurance and Supplemental Extended
Before-tax options are purchased with                     Disability Benefits are determined by your
contributions deducted from your pay before both          base salary in effect as of September 1, 2003.
income taxes and social security taxes are                Promotions or salary increases after September 1,
calculated.                                               2003 will not affect or increase benefit levels until
                                                          the following GM Flex plan year.
After-tax options are paid for with deductions
taken from your pay after all taxes are calculated
and withheld.                                                  Who is Eligible?
                                                               You qualify for GM Flex as of the first
BOTTOM LINE                                                    day of the third month following your
                                                               date of hire, if you are:
The online enrollment system will show your net
monthly cost for each option and add up your                   ■   A regular active salaried employee
total cost for benefits. Note: Your total Flex
                                                               ■   A part-time salaried employee
prices do not include the fees for Ayco Financial
                                                                   qualifying for benefit coverage
Planning. These contributions are deducted from
your pay in addition to any deductions for Flex.               ■   Either of the above on a
                                                                   compensable leave

MID -YEAR CHANGES
                                                               Family status categories available
                                                               include:
You can only change certain benefit elections
during the calendar year if you experience a                   ■   You only
qualifying “life event change” as defined by the               ■   You and your spouse/partner
IRS. It is your responsibility to notify the
National Benefit Center at www.gmnbc.com or                    ■   You and your dependent children
by calling 1-800-828-9236 (1-800-872-8682 TTY)                 ■   You and your family
within 31 days of any qualifying life event change                 (spouse/partner and dependent
if you want to make a change to your elections.                    children)




                                                     12
ANNUAL ENROLLMENT

GM Flex is an annual program, with
enrollments each fall for the following calendar
year’s coverages.

Keeping current coverages is easy — If you
want to keep your current coverages, you do
not need to enroll. This means you will receive
your current elections with 2004 contributions,
including Financial Planning (if elected in 2003).

The following are exceptions:

■   If your medical plan is no longer available, you
    will be enrolled in the Enhanced Medical Plan
    at your current family status
■   If your dental plan is no longer available, you
    will be enrolled in the Traditional Dental Plan
    at your current family status




                                                       13
How to Verify                                             Make sure the family status you have elected
                                                          for medical, dental and vision corresponds with
Dependent                                                 your eligible dependents. For example, if you are
                                                          listing only a spouse/partner as an eligible
Information                                               dependent, do not elect “employee and children”
                                                          or “employee and family” coverage. Select
You are required to review the accuracy of                “employee and spouse/partner.”
your dependent information as shown on the
screen when you enroll online. The list on the
                                                          The Verification Process
screen shows any dependents — including
Sponsored Dependents — who currently are                  This verification process is being performed
covered under your GM medical, dental and/or              to ensure the accuracy of GM’s dependent
vision coverage, based on information you                 eligibility files. It is your responsibility to
have provided. If you do not currently cover              notify the National Benefit Center as soon
dependents, the online data will indicate you have        as a dependent no longer meets the
“no covered dependents on file.”                          eligibility rules.

When you review the list, confirm that each               It is important for you to review your dependent
dependent listed is eligible and that the                 information. If GM pays any claims and/or
information provided is correct.                          premiums for any ineligible person, you will be
                                                          required to reimburse GM for these payments.
■   To cancel dependents who will be
    ineligible effective January 1, 2004,
    use the online enrollment web site.
                                                              Sponsored Dependents
■   To cancel dependents who are currently
    not eligible, contact the National Benefit                Sponsored Dependents are not included
    Center at www.gmnbc.com or                                in your health care family status
    1-800-828-9236 (1-800-872-8682 TTY)                       elections or option prices listed online.
                                                              You are, however, required to verify
■   To correct other dependent information —                  the eligibility of your Sponsored
    such as relationship status, date of birth                Dependents.
    or spelling of a dependent’s name —
    or to add a dependent, contact the National               Information about employee-paid
    Benefit Center at www.gmnbc.com or                        medical coverage contributions
    1-800-828-9236 (1-800-872-8682 TTY).                      for Sponsored Dependents will be
                                                              available in late December by calling the
                                                              National Benefit Center. Sponsored
                                                              Dependents are not eligible for Extended
                                                              Care Coverage, dental or vision.




                                                     14
How to Determine                                           Definitions
if a Dependent Is Eligible
                                                           These definitions are included to help you
The charts on pages 16 and 17 walk you                     understand the terms that appear on the
through dependent eligibility requirements. You            dependent eligibility charts on pages 16–17.
should review them as you verify your dependents’
eligibility. If you have any questions whether a           Qualified Medical Child Support Order
dependent meets the eligibility criteria, or during        (QMCSO) — a court order requiring you to
the enrollment process you accidentally cancel a           provide health care coverage for the child
dependent’s eligibility, contact the National              identified, if the child meets all tests except for
Benefit Center at www.gmnbc.com or                         residency and dependency. The child must be
1-800-828-9236.                                            the child of the GM employee. A QMCSO may
                                                           affect the options you can elect. If you have
The steps for adding dependents have                       questions, contact the National Benefit Center
not changed from last year. You can access the             at www.gmnbc.com or 1-800-828-9236
form to add dependents at www.gmnbc.com or                 (1-800-872-8682 TTY).
request it by calling the National Benefit Center
at 1-800-828-9236 and accessing the automated              Children enrolled as of October 31, 1992 under
voice response system available Monday through             the former “principally supported child or
Friday, 7 am to 8 pm (Eastern time).                       legal guardianship” provisions are eligible if:

The charts on the following pages are excerpts             ■   They remained continuously enrolled and
from the Guide to Dependent Eligibility for the                eligible, and
GM Salaried Health Care Program. You can                   ■   You are legally entitled to claim an
access this guide at www.gmnbc.com —                           exemption for them on your personal federal
or request a copy by calling the National Benefit              income tax return
Center at 1-800-828-9236 (1-800-872-8682 TTY).
                                                           The GM Salaried Health Care Program’s
                                                           definition of “Totally and Permanently
    Domestic Partner Coverage                              Disabled” is having a medically determinable
                                                           physical or mental condition which prevents
    The GM Salaried Health Care Program                    the child from engaging in substantial gainful
    offers the option of enrolling a qualifying            activity and which can be expected to result
    same-sex domestic partner and/or the                   in death or be of a long-term or indefinite
    domestic partner’s eligible children in
                                                           duration. The child must be determined to be
    health care coverage. To find out more
                                                           Totally and Permanently Disabled before the
    about this coverage, you can access an
    enrollment kit at www.gmnbc.com                        end of the year in which he or she becomes
    or call the National Benefit Center at                 25 years of age.
    1-800-828-9236 (1-800-872-8682 TTY).




                                                      15
If You Are a Salaried Employee and Have Dependent Children
Your children must satisfy each of four tests to be eligible for GM health care coverage as a dependent. These
tests — relationship, marital status, age and residency — are summarized in the following chart. Start with
the top box under “Relationship” and walk through the chart to determine the eligibility of each child.

    Start here

    Relationship                   Marital Status                          Age                       Residency
  Is this your or your             Is the child married?          Is the child under age          Does the child reside
  spouse’s child by birth                                         19 or is the child’s            with you as a member
  or legal adoption?        Yes                              No   19th birthday this        Yes   of your household?      Yes
                                                                  year?                           (A child temporarily
                                                                                                  away from home
                                                                                                  while attending
                                                                                                  school will qualify.)


        No                                     Yes                      No                             No

  Is this a child in the                                          Is the child (1) under        Are you legally
  process of adoption                                             age 25 or is this the         responsible for the
  who resides with you                                            calendar year of the          health care expenses
  and for whom you                                                25th birthday, and        Yes of the child per a        Yes
  have physical custody                                           (2)* did/will the child       divorce decree or per
  or who is under age                                             maintain status as a          a QMCSO?
                             Yes
  18 and has been                                                 full-time student for
  “placed” for adoption                                           at least one term                    No
  with you (meaning you                                           during the calendar
  have assumed and                                                year?                         Is this a child for
  retain legal obligation                                                                       whom you are legally
  for partial or total                                                  No                      responsible for
  support of the child)?                                                                        providing health care
                                                                  Does the child qualify    Yes per a paternity order
                                                                                                                          Yes
                                                                  as Totally and                or court order (other
        No
                                                                  Permanently Disabled          than a QMCSO) and
                                                                  under Program                 for whom you claim a
  Is this a child who
                                                                  provisions?                   federal income tax
  was enrolled under
  the “guardianship” or                                                                         exemption?
  “principally supported                                                No
  child” provisions as of                                                                              No
  10/31/92, has been         Yes
  continuously eligible                                           This child is not                                 The child is eligible
  and enrolled since                                              eligible for coverage                             for enrollment,
  then and for whom                                               as a dependent child.                             with Corporation
  you claim a federal                                             However, the child                                contributions, under
  income tax                 No                                   may be eligible as a                              the Salaried Health
  exemption?                                                      Sponsored Dependent.                              Care Program.




                                                                              See the chart on page 17 for Sponsored
     *Such children, age 24 or older, must also qualify as
      your dependents under Section 152 of the Internal
                                                                              Dependent eligibility.
      Revenue Code.


                                                                   16
     To Determine if a Dependent Qualifies as a Sponsored Dependent
     The following chart walks through the requirements for a Sponsored Dependent of a salaried employee. Review
     it to verify that your current Sponsored Dependents remain eligible. Also, dependents who are not eligible for
     coverage as your dependents may qualify as Sponsored Dependents.
          Start here

        Is this your spouse
        acquired after
                                  Yes
        retirement and on or
        after July 1, 1988?
              No

        Is this your parent or    Yes   Can and do you legally    Yes     Is the individual a        Yes   Was this individual   Yes   This individual is
        your spouse’s parent?           claim an exemption                U.S. citizen?                    previously enrolled         eligible for employee
              No                        for this individual                                                as a Sponsored              or retiree-paid
                                        under Section 151 on                                               Dependent?                  Sponsored Dependent
        Is this an unmarried            your federal income                                                                            health care coverage,
No      child?                          tax return?                                                                                    but reenrollment
             Yes                                                                                                                       requires a six-month
                                              No                                 No                             No                     waiting period from
        Is this your child                                                                                                             the date the
        acquired after                                                                                                                 application is
                                  Yes
        retirement and on or                                                                                                           received. Dental,
        after July 1, 1988?                                                                                                            Vision and Extended
              No                                                                                                                       Care Coverage are not
                                                                                                                                       available.
        Does this child live
        with you (or, if not
        living with you, whose
        health care expenses
        are your responsibility   Yes                          Yes                                 Yes
        due to a QMCSO) and
        is the child ineligible         Are you legally                   Has this individual                                          This individual is
        for coverage due to             responsible for this              been in the U.S. one                                         eligible for employee
        his/her age?                    individual’s health               year and is the                                              or retiree-paid
                                        care per a QMCSO?                 individual entitled to                                       Sponsored Dependent
              No                                                          remain indefinitely?                                         health care coverage.
                                                                                                                                       Dental, Vision and
        Is this a minor living                                                                                                         Extended Care
                                              No                                No
        with you whose                                                                                                                 Coverage are not
        parents are both                                                                                                               available.
                                  Yes
        deceased and are you
        or your spouse the
        guardian pursuant to
        a court order?

              No
        Is this a minor child                                                                              Remember
        living with you who
        is the child of an        Yes                                                                      You pay the full cost of medical coverage
        individual who is
        covered under the
                                                                                                           for a Sponsored Dependent. Do not
        Program as your                                                                                    include any Sponsored Dependents when
        dependent child?                                                                                   selecting your family status for health care
              No                        This individual is not eligible for health care                    coverage.
                                        coverage as a Sponsored Dependent.


                                                                        17
Medical Options                                            Health Care Plan Option
                                                           Performance Ratings
OPTIONS
                                                           The health care plan summaries available
■   Basic Medical Plan (BMP)                               through the enrollment web site contain
■   Enhanced Medical Plan (EMP)                            ratings for selected quality measures for
                                                           health care plans available to you. The
Where available:                                           monthly contributions for your HMO
■   Preferred Provider Organizations (PPOs)                options equally reflect selected quality
                                                           measures and cost. The lowest
■   Health Maintenance Organizations (HMOs)                contributions generally are charged for
                                                           options with the highest quality and the
■   Activecare                                             lowest cost.
■   Opt out for non-GM coverage or no coverage
■   Waiver for other GM coverage
                                                       CONTRIBUTIONS

                                                       Contributions for each option vary by the
     A Comment About                                   family status category that you elect.
     Health Care Contributions
                                                       GM currently requires no contribution for the
     General Motors shares year-to-year                BMP. For other coverage options, you may be
     increases in the cost of health care              required to pay before-tax contributions.
     coverage with you. Because your
     medical plan contribution reflects a              Prices for HMOs reflect the individual plan’s
     portion of the cost of the plan to General        performance on selected quality measures and
     Motors, it is likely that your                    financial performance. Those HMOs with the
     contributions for a particular plan may           best performance on the selected quality
     change from year to year. Those plans             measures and greatest cost-effectiveness have
     with the least favorable performance              the lowest prices.
     generally have the highest prices.
                                                       If you opt out of GM’s medical coverage,
     Program cost increases are based on
                                                       you will receive an opt-out credit to spend on
     business conditions and integrated with
                                                       other benefits or as cash in your pay.
     GM’s approach to total compensation.
     This means the sharing of increases               If you waive medical coverage to be a
     could vary from year-to-year.
                                                       dependent under your spouse’s GM plan,
                                                       you will not receive an opt-out credit because
                                                       you still have GM medical coverage.




                                                  18
ELECTION RULES                                              ELECTION RULES BY
                                                            GEOGRAPHIC LOCATION
The family status you elect for medical also will
apply to Extended Care Coverage (if elected).               Availability of medical options is determined
                                                            by your most recent GM address on record.
Remember: If you change your family status
from what you have currently, make sure your                Residents of Canada are also eligible for
eligible dependent(s) are listed on your online             Optional Canadian Health Care Coverage (OCHCC).
confirmation statement. If not, you can access the          If you elect OCHCC, this election may not be
form to add dependents at www.gmnbc.com or                  changed as long as you continue to live
request it by calling the National Benefit Center at        in Canada. OCHCC currently has medical, dental
1-800-828-9236 and accessing the automated                  and vision coverage, as well as an optional
voice response system — available Monday                    Comprehensive Medical Expense Insurance
through Friday, 7 am to 8 pm (Eastern time).                Program component. If you elect OCHCC,
                                                            you must elect one family status for medical,
An opt out or waiver of GM medical                          dental and vision.
coverage is in effect for one year unless you
experience a qualifying life event change.                  Residents of Hawaii have special coverage
                                                            provisions because of state law. Any resident of
When you waive medical coverage to be a                     Hawaii who elects to waive medical coverage will
dependent under your spouse’s GM plan,                      have to submit a completed proof-of-coverage
you automatically waive dental and vision coverage          form to the State of Hawaii.
as well.
                                                            International Service Personnel (ISP)
If you waive or opt-out of medical, you                     currently are covered under the GM International
are permanently excluded from future                        Health Care Plan, which includes medical,
re-enrollment in Extended Care Coverage                     dental and vision coverage. As an ISP employee,
(ECC) unless you waive medical to be covered as             you will have the option either to elect the
a dependent of another GM salaried employee or              International Health Care Plan or to waive
retiree who has ECC.                                        coverage to be covered as a dependent under
                                                            another GM plan. You must elect one family
                                                            status for medical, dental and vision.
  Rx Home Delivery
  Enrollees in the BMP, EMP, PPO and
  Activecare options can enjoy the
  convenience of obtaining home delivery
  prescription drug refills online at
  www.medcohealth.com or by calling
  1-800-464-4679. Note: Starting a new
  prescription in home delivery requires the
  prescription to be written for up to
  a 90-day supply.




                                                       19
CONSIDERATIONS                                            If you elect an HMO : If you do not use
The Basic, Enhanced and PPO options                       physicians and facilities that are part of
include three special features:                           your HMO or do not obtain a referral
                                                          from your HMO primary care physician, the
■   Care Management provides a resource to                plan generally will not pay for services
    help ensure the medical treatment you receive         received unless the services are a result of an
    is medically necessary and appropriate                emergency.
    through a best practices predetermination.
    You and your eligible dependents must                 Coverage may vary by individual HMO plan
    call Health International (toll-free at               and could differ from that offered by the BMP,
    1-877-299-4635) before any surgery,                   EMP and PPO options. Additionally, HMOs are
    hospital stay, skilled nursing facility               responsible for establishing medical policy and for
    admission or home health care service.                reviewing inquiries and appeals. For more
    If you do not call — or if you proceed with           information on coverage and copayments, contact
    services considered inconsistent with                 the HMO you are considering or see the online
    nationally recognized best practices —                plan comparison.
    sanctions of $200 per occurrence (up to $600          You may purchase medical coverage only —
    per year) will apply.                                 not ECC, dental or vision coverage — for
■   Disease Management can enhance quality                any qualifying Sponsored Dependent. The
    of life when you or a family member lives             medical coverage must be the same option you
    with a chronic medical condition. Health              choose for yourself. Each Sponsored Dependent
    International medical professionals can work          has his or her own set of contributions,
    with you and your doctor to develop a                 deductibles, copayments and out-of-pocket
    personalized coordinated plan of care.                maximums.
    This feature is voluntary.
■   Centers of Excellence offer the opportunity
                                                          FOR MORE INFORMATION
    to receive care from among the best facilities
    and doctors — nationally recognized for               Refer to the handbook titled Your GM Benefits
    improved outcomes in treating specific                for more information about medical plan
    serious medical conditions. Health                    coverages. The handbook is available online via
    International medical professionals can               MySocrates (under the “Services” tab, scroll
    advise you on local and regional facilities.          down to “Total Compensation” and click on
    This feature is voluntary.                            “Your GM Benefit Booklets”).

If you elect a PPO: When you receive care
from providers not participating in your
PPO and without a referral from your PPO
provider, you will pay a larger portion of the
cost. Your expenses for care from a non-PPO
provider will not count toward your out-of-pocket
maximum expense.



                                                     20
    Defining Your Medical Options
   HMOs — are health care plans that coordinate your care. An HMO provides care through a network
   of doctors, hospitals, health care centers, laboratories, pharmacies and other health care providers.
   Because of their focus on keeping you healthy, HMOs offer a variety of preventive care, wellness and
   disease management programs. To help coordinate your care, you choose a doctor from the HMO’s
   network. This doctor is usually a family practitioner, internist or pediatrician. If you enroll in an HMO,
   you must use network providers for all of your covered health care — except in an emergency.
   Traditional/Indemnity Plans — BMP and EMP — are health care plans that let you obtain care
   from any doctor or facility for appropriate covered expenses. You pay a percentage of the cost of all
   of the services that you receive after satisfying your annual deductible (up to your annual out-of-
   pocket maximum). With a Traditional plan, you decide which doctors to see and you coordinate your
   overall care. You must call Health International at 1-877-299-4635 for a predetermination of
   specified health care services.
   PPOs — are health care plans that blend aspects of an HMO and a Traditional/Indemnity plan.
   Your care is provided through a network of doctors and facilities — but you can go outside this
   network if you wish. You pay a percentage of the cost for all services you receive after satisfying
   your annual deductible. If you use a network provider, you pay less for your care as your copay
   percent is lower and the provider charges are generally lower. You must call Health
   International at 1-877-299-4635 for a predetermination of specified health care services.
   Activecare — unique health care plans that put an emphasis on personal attention and high
   quality care. They focus on helping you maintain and improve your health by encouraging a strong
   physician-patient relationship. Activecare promotes involvement in your health care decisions,
   while providing many of the benefits of coordinated care. Activecare provides benefits generally at
   the HMO level of coverage, with no deductibles for in-network care. This includes hospital care,
   doctor's office visits, preventive services and prescription drug coverage for care provided in the
   Activecare network. If you obtain care outside the Activecare network, you still receive coverage
   similar to the GM Enhanced Medical Plan (with deductible plus 20% coinsurance). Activecare is
   available in the Greater Ann Arbor, Michigan and Dayton, Ohio service areas.




Prescription Drug Provisions                                Your physician can appeal the specific need for a
                                                            brand-name drug through the Medco Health appeal
For the BMP, EMP, PPOs and Activecare — if
                                                            process. If your physician establishes the medical
a generic equivalent is available for a covered
                                                            necessity and appropriateness of dispensing
brand-name medication, the Program pays at the
                                                            the brand-name drug rather than the generic
generic level. If you receive the brand-name
                                                            equivalent, the additional amount will be
medication, you will be responsible for the generic
                                                            refunded after the applicable brand-name
copayment plus the difference in cost between the
                                                            copayment is applied.
generic and the brand-name drug.



                                                    21
                      FOR EMPLOYEES WITH A SERVICE DATE PRIOR TO JANUARY 1, 2003

Extended Care Coverage (ECC)
OPTIONS                                                  ELECTION RULES

■   Continue ECC                                         You must elect one of the medical plans to
                                                         elect ECC, which is provided at the same family
■   Waive ECC
                                                         status category as your medical coverage.
If you waive ECC, you are permanently
                                                         If you waive ECC and/or medical coverage,
excluded from future re-enrollment unless
                                                         you will not be able to elect ECC again unless:
you waive medical coverage to be covered as a
dependent of another GM salaried employee or             ■   You waive medical to be covered as a
retiree who has ECC. (See details under “Election            dependent of a GM salaried employee or
Rules” on this page.)                                        salaried retiree who has ECC. In such cases,
                                                             you may add ECC coverage at a future date
Changing your medical plan does not affect
                                                             when you again elect GM medical coverage.
your ECC coverage.
                                                         If you terminate or drop your ECC coverage,
                                                         you cannot reinstate it at a later date other than
CONTRIBUTIONS                                            as described above.
Seperate monthly contributions for ECC are based
                                                         Sponsored Dependents are not eligible
on the family status you elect for your medical
                                                         for ECC.
coverage.
                                                         Employees with a service date on or after
ECC monthly contribution amounts for 2004 are:
                                                         January 1, 2003 are not eligible for ECC.
■   $5 for you only
                                                         International Service Personnel (ISP) are not
■   $14 for you and spouse/partner                       eligible for ECC while enrolled in the International
                                                         Health Care Plan.
■   $14 for you and children
■   $19 for you and family

                                                              For more details about ECC, refer to the
                                                              handbook titled Your GM Benefits,
                                                              available online via MySocrates (under the
                                                              “Services” tab, scroll down to “Total
                                                              Compensation” and click on “Your GM
                                                              Benefit Booklets”).




                                                    22
CONSIDERATIONS

Extended Care Coverage supplements your                      Long-Term Care
medical coverage when certain services are                   Insurance (LTC): A Reminder
required. It covers:                                         LTC is not a flex election. If you
                                                             currently have LTC through John
■   Hospital, skilled care or home health care
                                                             Hancock, you do not need to re-enroll
    services that exceed medical plan limits
                                                             to continue coverage.
■ Custodial  care, which is not covered by
    the medical plan                                         To purchase LTC, you or your spouse
                                                             can apply for coverage at any time
ECC has no deductible or copayment. The                      through John Hancock. Your parents
plan pays benefits up to an annual maximum of                and/or parents-in-law also may enroll.
$50,000 per covered person.
                                                             For more information or to enroll,
ECC pays:                                                    call John Hancock — Monday through
                                                             Friday between 8:30 am and 4:30 pm
■   A reasonable and customary rate for approved             Eastern time.
    hospital or skilled nursing facility stays beyond
    the medical plan’s limits; skilled care at an            ■   1-800-200-6773
    approved nursing facility; and home health               ■   1-800-255 -1808 (TTY)
    care — skilled only or a mixture with unskilled
    — that exceeds medical plan coverage
■   Up to $35 a day for unskilled care at a
    hospital, skilled nursing facility or licensed
    nursing home, or received through a home
    health care agency or by a privately contracted
    qualified nurse professional approved by the
    ECC carrier




                                                        23
Dental Options                                            CONSIDERATIONS

                                                          Similar to HMOs, Alternative Dental Plans
OPTIONS                                                   (ADPs) require the use of network providers for
                                                          you to receive benefits. Call the plan directly for a
■   Traditional Dental Plan (MetLife)                     list of participating dentists. If you elect the
■   Alternative Dental Plans (where available)            Traditional Dental Plan, you can choose to see
                                                          any dentist and receive covered benefits. However,
■   Waive (now a one-year waiver)                         you can lower your out-of-pocket costs by
                                                          using a dentist in MetLife’s Preferred Dentist
                                                          Provider (PDP) network. The PDP network
CONTRIBUTIONS
                                                          operates “silently” within the Traditional Dental
Contributions for each option vary by the family          Plan and does not require special enrollment.
status category you elect. You will pay before-tax        Use of a PDP dentist is voluntary, but it can save
contributions for your dental election.                   both you and GM money. Examples of cost-saving
                                                          opportunities common to the MetLife Traditional
                                                          Dental Plan are found on page 25.
ELECTION RULES

The family status you elect for medical,
                                                          FOR MORE INFORMATION
dental and vision coverage need not match.
                                                          Refer to the handbook titled Your GM Benefits
Remember — if you change your family                      for more information about dental coverage.
status for dental from what you have                      This handbook is available online via MySocrates
currently, make sure your eligible dependents             (under the “Services” tab, scroll down to “Total
are listed on your online confirmation statement.         Compensation” and click on “Your GM Benefit
If not, you can access the form to add dependents         Booklets”).
at www.gmnbc.com or request it by calling the
National Benefit Center at 1-800-828-9236 and             If you are enrolled in MetLife’s Traditional Dental
accessing the automated voice response system             Plan, you can find information on available
— available Monday through Friday, 7 am to                benefits, eligibility and status of your claims online
8 pm (Eastern time).                                      at www.gmnbc.com (select “MyBenefits”).

When you waive dental coverage, you do
not receive a credit.



      Note: The names of the Alternative
      Dental Plans may be similar to your
      other options — make sure you are
      electing the plan that you want.




                                                     24
Save Money on Traditional Dental Costs by Using a PDP Provider
Here are some examples of cost-saving opportunities common to the MetLife Traditional Dental Plan.
(Note: For purposes of illustration, these examples assume the provider charge equals R&C *.)

1. Periodic Oral Exam plus Cleaning (Plan pays 100%)
              Traditional Dentist (non-PDP)                    PDP Dentist                    Total Savings
 Provider Traditional        Plan         You        PDP           Plan          You        You         GM
 Charge      R&C*            Pays         Pay       Fee**          Pays          Pay        Save       Saves

   $95.00      $95.00       $95.00       $00.00     $65.00        $65.00        $00.00      $00.00     $30.00
                          (100% x $95)                          (100% x $65)

2. Crowns (Plan pays 90%; You pay 10%)
              Traditional Dentist (non-PDP)                    PDP Dentist                    Total Savings
 Provider Traditional        Plan         You        PDP           Plan          You        You         GM
 Charge      R&C*            Pays         Pay       Fee**          Pays          Pay        Save       Saves

  $700.00     $700.00      $630.00       $70.00    $475.00       $427.50        $47.50      $22.50     $202.50
                          (90% x $700)                          (90% x $475)

3. Complete Denture — Upper (Plan pays 50%; You pay 50%)
              Traditional Dentist (non-PDP)                    PDP Dentist                    Total Savings
 Provider Traditional        Plan         You        PDP           Plan          You        You         GM
 Charge      R&C*            Pays         Pay       Fee**          Pays          Pay        Save       Saves

  $979.00     $979.00      $489.50       $489.50   $679.00       $339.50       $339.50     $150.00     $150.00
                          (50% x $979)                          (50% x $679)

4. Orthodontia Services (Plan pays 50%, up to $1,800 lifetime maximum)
              Traditional Dentist (non-PDP)                    PDP Dentist                    Total Savings
 Provider Traditional        Plan         You        PDP           Plan          You        You         GM
 Charge      R&C*            Pays         Pay       Fee**          Pays          Pay        Save       Saves

 $4,760.00    $4,760.00     $1,800 $2,960.00       $3,350.00     $1,675.00     $1,675.00   $1,285.00   $125.00
                           ($1,800                                 (50%
                          maximum)                                x 3,350)

To learn more about your Traditional Dental Plan benefits and locate a PDP dentist, visit
www.metlife.com or call MetLife at 1-888-224-0240.
 * Reasonable and Customary (“R&C”) charges are based on the lowest of a dentist’s usual, actual and
   community average charge as determined by MetLife. You are responsible for the amount of the fee above
   the R&C charge, if any.
** PDP fee refers to the negotiated fees that participating PDP dentists have agreed to accept as payment in full.

                                                   25
Vision Options                                           CONSIDERATIONS

                                                         The Vision Plan is a traditional plan, which means
OPTIONS                                                  you can choose to see any vision provider and
                                                         receive benefits. Use of a network vision provider
■   Vision Plan (Cole Managed Vision)                    is voluntary, but it can save both you and GM
■   Waive (now a one-year waiver)                        money. For network providers in your area,
                                                         contact Cole Managed Vision at
                                                         www.colemanagedvision.com or
CONTRIBUTIONS                                            1-800-638-0166.
Monthly contributions for vision coverage vary by
the family status category you elect:
                                                         FOR MORE INFORMATION
■   $1 for you only                                      Refer to the handbook titled Your GM Benefits
■   $2 for you and spouse/partner                        for more information about vision coverage. This
                                                         handbook is available online via MySocrates
■   $2 for you and children                              (under the “Services” tab, scroll down to “Total
■   $3 for you and family                                Compensation” and click on “Your GM Benefit
                                                         Booklets”).

ELECTION RULES

The family status you elect for medical,
dental and vision coverage need not match.

Remember — if you change your family
status for vision from what you have
currently, make sure your eligible dependents
are listed on your online confirmation statement.
If not, you can access the form to add dependents
at www.gmnbc.com or request it by calling the
National Benefit Center at 1-800-828-9236 and
accessing the automated voice response system
— available Monday through Friday, 7 am to
8 pm (Eastern time).

When you waive vision coverage, you do
not receive a credit.




                                                    26
Vision Benefits At-A-Glance

                                          Network             Out of
 Benefit             Frequency            Provider            Network              Out of Area*

 Vision Exam         Once each            Covered in full     Enrollees are        Enrollees are
                     calendar year                            reimbursed           reimbursed based
                                                              based on carrier     on R&C** minus
                                                              fee schedule         $7 copay


 Frames              Once every two       Covered in full     Enrollees are        Enrollees are
                     consecutive          if selected from    reimbursed           reimbursed based
                     calendar years       designated          based on carrier     on R&C** minus
                                          frame display       fee schedule         $10 copay
                                          (30% discount
                                          available on all
                                          other frames)

 Lenses              Once every           Covered lenses      Enrollees are        Enrollees are
                     calendar year        available at no     reimbursed           reimbursed based
                                          cost (enrollees     based on carrier     on R&C** minus
                                          pay non-covered     fee schedule         $10 copay
                                          additives)

 Contact             Once every           Enrollees pay       Enrollees are        Enrollees are
 Lenses              calendar year in     the difference      reimbursed $65       reimbursed $75
                     place of regular     between                                  minus $10 copay
                     lenses               providers charge
                                          and $75


Note: A vision exam provided by a non-network ophthalmologist results in the enrollee being reimbursed
      based on R&C** minus $7 copay. Frames are covered in full if selected from the discounted frame
      display shown by the network provider. A 30% discount is available on all other frames.

  * Out of Area occurs when there is no network provider within 25 miles of the enrollee’s residence.
 ** R&C stands for reasonable and customary charge.




                                                  27
Supplemental                                            CONSIDERATIONS

                                                        SEDB is intended to supplement your GM
Extended Disability                                     Extended Disability Benefits (EDB).
Benefit Options                                         If eligible and enrolled, SEDB payment begins
                                                        when your EDB payments are exhausted, but only if
OPTIONS                                                 you received at least one monthly EDB payment and
■   No Coverage                                         made at least one SEDB contribution. SEDB payments
                                                        will equal 60% of your monthly base salary as of
■   Supplemental Extended Disability Benefits (SEDB)    September 1, 2003. SEDB premiums are discontinued
    coverage                                            after you have been disabled for six months.

CONTRIBUTIONS                                           SEDB is reduced by other benefits that may be
                                                        payable, such as Workers’ Compensation benefits
Contributions for SEDB are before-tax, but any          and certain social security benefits.
benefits paid will be taxable to you when you
receive them. Note: The monthly amount of your          All EDB plan rules apply equally to SEDB. Receipt
SEDB benefit will be based on your salary as of         of SEDB does not extend eligibility for health care
September 1, 2003.                                      and life insurance coverage.

                                                        See page 29 for considerations based on your
                                                        service date.




                                                   28
Supplemental Extended Disability Benefits

 If you have a service date prior to                      If you have a service date on or after
 January 1, 2001:                                         January 1, 2001:

 ■   The before-tax contribution for SEDB is based        ■   The before-tax contribution for SEDB is a
     on your age as of December 31, 2004 and your             composite rate of $.0019 per dollar of benefit.
     credited service as of January 1, 2004.
                                                          ■   You must have 13 months of service to receive
 ■   You are eligible to enroll for SEDB if you have          SEDB. Therefore, to be eligible to enroll for
     less than 10 years of credited service.                  SEDB this year, you must be hired before
                                                              November 1, 2003.
 ■   SEDB provides the same maximum duration
     of benefits as is available under EDB to             ■   Deductions from your pay for purchasing SEDB
     employees with 10 or more years of credited              coverage will not begin until the month after
     service.                                                 you acquire 13 months of service.
 ■   It is important to enroll for SEDB when you are      ■   EDB provides benefits for a maximum period of
     eligible. If you become disabled, the duration of        five years. The maximum duration of SEDB is
     your Sickness and Accident (S&A) Benefits and            the earlier of (1) recovery, (2) death or (3) the
     EDB is based on your years of credited service.          later of age 65 or receipt of SEDB for five
     If you are enrolled in SEDB, benefits may                years.
     continue to the earlier of (1) recovery, (2) death
                                                          ■   It is important to enroll for SEDB when you are
     or (3) age 65.
                                                              eligible. If you do not enroll when you are first
                                                              eligible, you may be required to provide proof
                                                              of good health to enroll anytime thereafter.


 Elected coverage will not take effect unless you are actively at work.
 Flexible Service employees are not eligible for SEDB.




                                                       29
Basic and Optional                                        ELECTION RULES

                                                          Proof of good health is not required if you
Life Insurance                                            increase your Basic Life Insurance coverage level
                                                          from “1 x annual base salary” to “2 x annual base
Options                                                   salary.” For any other increase to your coverage
                                                          level, you must provide proof of good health,
OPTIONS
                                                          unless the increase is due to certain qualifying
For You                                                   life event changes. Proof of good health forms
                                                          are available through the enrollment web site.
■   1 x annual base salary                                Completed proof of good health forms must be
■   2 x annual base salary                                received by the National Benefit Center no later
                                                          than March 1, 2004.
■   3 x annual base salary*
                                                          Any election to increase coverage will take
■   4 x annual base salary*
                                                          effect when you are actively at work on or
■   5 x annual base salary*                               after January 1, 2004. If proof of good health is
                                                          required, increased coverage levels will become
■   6 x annual base salary*
                                                          effective the first of the month following the
■   7 x annual base salary*                               approval of proof of good health if you are then
                                                          actively at work. Proof of good health forms are
*Portion of coverage that exceeds 2 x annual
                                                          available through the enrollment web site.
 base salary is employee-paid Optional Life
                                                          Completed proof of good health forms must be
 Insurance and is on an after-tax basis.
                                                          received by the National Benefit Center no later
                                                          than March 1, 2004.
CONTRIBUTIONS                                             Elected decreases in coverage take effect
Contributions are determined by your annual               January 1, 2004 even if you are not actively
base salary as of September 1, 2003 and your age          at work.
as of December 31, 2004. Rates are listed in your
                                                          If your present life insurance has an assignee
online personal benefit information.
                                                          or applicant owner, you cannot make any
If you elect “1 x annual base salary,” you will           elections for your life insurance because you
receive a credit. Refer to your online personal           do not own it. The assignee or applicant owner
benefit information for the amount of your credit.        may contact the National Benefit Center at
                                                          1-800-828-9236 (1-800-872-8682 TTY) during
By law, you pay taxes on “imputed income” for             the Flex enrollment period to make a change.
the value of your Basic Life Insurance (2 x annual
base salary) over $50,000. Imputed income                 If you do not enroll, the option that you elected
appears on your IRS Form W-2 as part of your              for 2003 will continue for 2004. Your actual
total compensation.                                       coverage amount and premium may change,
                                                          determined by your annual base salary as of
                                                          September 1, 2003.




                                                     30
CONSIDERATIONS
                                                          How Much Life Insurance
If your base salary changes (after
                                                          Do You Need?
September 1, 2003 or any time throughout 2004),
your 2004 coverage amount will not change during          The amount of life insurance you may
2004 as a result of your salary change.                   need depends on what stage you have
                                                          reached in your life, your lifestyle and
The beneficiaries currently on file will                  the financial needs of your dependents.
continue. If your family status or life situation         Do you have a mortgage on your home?
changes, you should review your beneficiary               Do you have children who will be
designations.                                             attending college in the future? Is your
                                                          spouse currently employed? All of these
You can now update your General Motors Life
                                                          factors come into play when determining
Insurance beneficiary designation(s) online
                                                          your life insurance needs. To give you a
via a secure web site at www.gmnbc.com or
                                                          rough idea, financial planning experts
socrates.gm.com. You will receive an electronic
                                                          suggest you need seven to ten times
confirmation upon completion. In addition, a paper
                                                          your annual salary during the years that
confirmation statement will be mailed to your
                                                          family obligations are the greatest.
address of record within 7 – 10 business days.
                                                          To gain a better idea of your personal
You should review and update your beneficiary
                                                          life insurance needs, you need to
designation after situations such as marriage,
                                                          determine the gap between your family’s
re-marriage, divorce, birth, adoption, or the death
                                                          financial resources and its projected
of your intended beneficiary, so that your insurance
                                                          expenses if your income were no longer
proceeds are paid to the beneficiary or beneficiaries
                                                          there. The worksheet on page 33 can
you intend. The few minutes that it takes for you to
                                                          help you calculate this gap and answer
update your beneficiary information can help provide
                                                          the question, “How much life insurance
security and peace of mind for your family’s future.
                                                          do I need?” The decision as to the
Note: You also may request a beneficiary form             amount of life insurance is a personal
by calling the National Benefit Center at                 decision.
1-800-828-9236 and a form will be mailed to your
address of record. To complete your beneficiary           Online Life Insurance
designation, fill out and return the form to the          Calculator
National Benefit Center.                                  A tool from MetLife to help you
Basic Life Insurance includes an Accelerated              determine your life insurance needs
Benefits Option for eligible employees who                is available online at
are terminally ill. Employees may apply to receive        www.metlifeiseasier.net/GM.
up to 50% of the amount of their Basic Life
Insurance. Contact the National Benefit Center
at www.gmnbc.com or 1-800-828-9236
(1-800-872-8682 TTY) for details.




                                                     31
Life Insurance Worksheet
STEP 1                    Estimate what your family’s financial resources and expenses would be if you died unexpectedly
                          and weren’t there to provide for them.


Financial Resources                                Primary Expenses                             Secondary Expenses
Estimate your family’s financial                   Estimate your family’s expenses              Estimate additional or one-time
resources without your income:                     for basic needs:                             expenses that your family may face:
Spouse’s annual income times                       Remaining mortgage                           Funeral expenses
number of years to age 65.          $_________     (or rent times estimated                     (Average in U.S.
                                                   number of years expected                     is $8,000 to $15,000)            $_________
Value of savings plans                             to be paid)                    $_________
(401(k), 403 (b), IRA, etc.)        $_________
                                                   Annual household expenses                    Elder care times estimated
Savings-Stock Purchase                             (insurance, property tax, etc.)              numbers of years expected
Program (S-SPP)                     $_________     times number of years expected               to be paid                       $_________
                                                   to be paid                      $_________

Equity in your home                 $_________     Annual personal expenses                     Wedding costs                    $_________
                                                   (clothing, food, etc.) times
                                                   number of years expected
                                                   to be paid                     $_________
Cash savings, bonds, stock,
securities (current value)          $_________     Child care times number                      College tuition for dependents   $_________
                                                   of years expected to be paid   $_________
Cash value of your life
insurance                           $_________     Health insurance premiums                    Emergency money                  $_________
                                                   and other medical expenses
Survivor pension                    $_________     expected                       $_________

Other assets or income your                        Debt from credit cards,                      Estate taxes, probate fees,
family would have access to         $_________     car loans, etc.                $_________    attorney fees                    $_________

Total A                             $_________     Total B                        $_________    Total C                          $_________




STEP 2                    Complete the equations below and compare them to your current life insurance amount.
                          (Remember that these calculations do not account for inflation or changes in annual earnings.)

A) Subtract your family’s total financial resources from their primary expenses.                     Total B – Total A =
   (This is the amount of life insurance you may need to cover your family’s basic needs.)
                                                                                                     $______________________


B) Add your family’s total primary expenses and secondary expenses together to get their (Total B + Total C) – Total A =
   total expenses. Subtract your family’s total financial resources from their total expenses.
   (This is the amount of life insurance you may need to cover your family’s basic needs       $______________________
   plus provide a cushion for any additional or one-time expenses.   )



                                                                        32
Dependent Life                                              ELECTION RULES

                                                            Unless you are newly eligible, proof of good
Insurance Options                                           health is required for:
                                                            ■   Any first-time election to cover your
OPTIONS
                                                                spouse/partner or children
For Your Spouse/Partner
                                                            ■   Any increase in the current level of coverage
■   No coverage                For Your Children                for your spouse/partner or children

■   $10,000                    ■   No coverage              Important: If you live in Texas, by law, dependent
                               ■   $5,000 per child         life insurance for a spouse/partner, or for children,
■   $25,000
                                                            cannot exceed the amount of your life insurance
■   $50,000                    ■   $10,000 per child        (Basic Life Insurance and Optional Life Insurance
■   $75,000                    ■   $15,000 per child        combined). For example, an employee with an
                                                            annual base salary of $50,000 who elects
■   $100,000                                                “1 x annual base salary” may not elect more than
                                                            $50,000 of coverage for a dependent spouse/partner.

CONTRIBUTIONS                                               Any election to increase coverage for
                                                            your spouse/partner or your children will take
After-tax contributions for Dependent Life
                                                            effect when you are actively at work on or
Insurance for your spouse/partner are
                                                            after January 1, 2004. If proof of good health is
determined by your age — not your
                                                            required, increased coverage levels will become
spouse’s/partner’s age — as of
                                                            effective the first of the month following approval of
December 31, 2004. Rates are listed in your
                                                            proof of good health if you are then actively at work.
online personal benefit information.
                                                            Proof of good health forms are available through the
After-tax contributions for Dependent Life                  enrollment web site. Completed
Insurance for your children is a flat rate based            proof of good health forms must be received
on amount of coverage, regardless of the                    by the National Benefit Center no later than
number of children covered.                                 March 1, 2004.

                                                            Elected decreases in coverage take effect
                                                            January 1, 2004 even if you are not actively
    Same-Sex Domestic Partners                              at work.
    Effective January 1, 2003, GM expanded                  If your spouse/partner is a GM employee and
    eligibility of qualifying same-sex domestic             your children are dependents of both you and your
    partners to include participation in                    spouse/partner, both of you may cover the children
    additional benefits, policies and programs,             under Dependent Life Insurance.
    including Dependent Life Insurance. If you
    would like more information regarding                   If you do not enroll, the options that you elected
    same-sex domestic partner coverage,                     for 2003 will continue for 2004. It is your
    please contact the National Benefit Center              responsibility to review eligibility and cancel
    at www.gmnbc.com or 1-800-828-9236.                     coverage if you no longer have any eligible
                                                            dependents.
                                                       33
CONSIDERATIONS

A special death benefit of $2,000 will cover               For Dependent Life Insurance and
your first-born child from the moment of live birth        Personal Accident Insurance, an eligible
up to 60 days after birth if you have Dependent            dependent means the employee’s
Life Insurance in effect for your spouse.                  spouse/partner or your children or your
                                                           spouse’s/partner’s children who are your
Additional children are covered automatically              dependents as defined under the General
at birth, if you currently have Dependent Life             Motors Salaried Health Care Program.
Insurance in effect for your children.                     Sponsored Dependents are not eligible
                                                           dependents.
You (the employee) are always the beneficiary for
Dependent Life Insurance.




    Signature Required for
    Dependent Life Insurance

    Current law requires a signature from
    dependents age 18 or over who are
    enrolled for the first time in $10,000
    or more of coverage. If newly eligible,
    you must complete the dependent
    signature form, available through the
    Flex enrollment web site, and return it to
    the National Benefit Center. Coverage
    will not take effect unless the signed
    form is received.

    Note: If you are not newly eligible, proof
    of good health is required instead of the
    dependent signature form.




                                                      34
Personal Accident                                           If your spouse/partner is an active or retired
                                                            GM salaried employee, you may be covered
Insurance Options                                           as both an employee and a spouse/partner under
                                                            PAI coverage.
OPTIONS                                                     If your present PAI coverage has an assignee
For You                                                     or applicant owner, you cannot make any
                                                            elections for your PAI because you do not
■   No coverage       ■   $200,000                          own it. The assignee or applicant owner may
                                                            contact the National Benefit Center at
■   $10,000           ■   $250,000                          www,gmnbc.com or 1-800-828-9236
■   $25,000           ■   $300,000                          (1-800-872-8682 TTY) during the Flex enrollment
                                                            period if he or she wishes to make a change.
■   $50,000           ■   $400,000*
■   $100,000          ■   $500,000*
                                                            CONSIDERATIONS
*Cannot elect if greater than 10 times your
 annual base salary as of September 1, 2003.                PAI provides benefits only in the event of
                                                            accidental death or qualifying accidental
                                                            injury. Death resulting from illness or disease is
                                                            not covered under PAI.
CONTRIBUTIONS

After-tax contributions are based on a flat                 While in some cases PAI coverage overlaps GM’s
monthly rate per $1,000 of coverage. Rates are              Basic and Optional Life Insurance coverages, it is
listed in your online personal benefit information.         not intended to replace them.

                                                            You can name a PAI beneficiary when you
                                                            initially enroll in PAI, or change a beneficiary,
ELECTION RULES                                              online via a secure web site at www.gmnbc.com
You must purchase Personal Accident                         or socrates.gm.com. You also may request a
Insurance (PAI) for yourself to be able to                  beneficiary form by calling the National Benefit
purchase it for your spouse/partner or any                  Center at 1-800-828-9236 (1-800-872-8682 TTY).
eligible children.                                          If you do not designate a beneficiary, any proceeds
                                                            will be paid to the beneficiary of your Basic Life
Any election to add or increase coverage for                Insurance.
yourself will not take effect until you are actively
at work on or after January 1, 2004.

Elected decreases in coverage take effect
January 1, 2004 even if you are not actively
at work.

Proof of good health is not required for PAI.




                                                       35
Personal Accident                                          Any election to add or increase coverage
                                                           for your spouse/partner or your children will
Insurance Options                                          not take effect until you are actively at work on or
                                                           after January 1, 2004.
for Dependents                                             Elected decreases in coverage take effect
OPTIONS
                                                           January 1, 2004 even if you are not actively at work.

For Your Spouse/Partner For Your Children                  Proof of good health is not required for PAI.

■   No coverage              ■   No coverage               If your spouse/partner is a GM employee, you
                                                           may be covered as both an employee and a
■   $10,000                  ■   $10,000 per child
                                                           spouse/partner under PAI. Also, both you and your
■   $25,000                  ■   $20,000 per child         spouse/partner may cover your children under PAI.
■   $50,000                  ■   $30,000 per child
                                                           CONSIDERATIONS
■   $100,000                 ■   $40,000 per child
                                                           A special death benefit of $10,000 will cover your
■   $200,000                 ■   $50,000 per child
                                                           first-born child from the moment of live birth up to
■   $250,000                                               31 days after birth if PAI is in effect for your spouse.
■   $300,000                                               PAI provides benefits only in the event of
■   $400,000*                                              accidental death or qualifying accidental
                                                           injury. Death resulting from illness or disease
■   $500,000*                                              is not covered under PAI.
*Cannot elect if greater than 10 times your
                                                           You (the employee) are always the beneficiary for
 annual base salary as of September 1, 2003.
                                                           dependent PAI.

CONTRIBUTIONS

After-tax contributions are based on a flat                   Same-Sex Domestic Partners
monthly rate per $1,000 of coverage. Rates are
listed in your online personal benefit information.          Effective January 1, 2003, GM expanded
                                                             eligibility of qualifying same-sex domestic
                                                             partners to include participation in
ELECTION RULES                                               additional benefits, policies and programs,
The amount of your spouse’s/partner’s or                     including PAI. If you would like more
children’s coverage cannot exceed the                        information regarding same-sex domestic
amount of your own Personal Accident Insurance               partner coverage, please contact the
(PAI) coverage.                                              National Benefit Center at
                                                             www.gmnbc.com or1-800-828-9236.




                                                      36
Right to Amend
General Motors reserves the right to amend,
modify, suspend or terminate any of its benefit
plans or programs by the action of its Board
of Directors, or individual or other committee
expressly authorized by the Board to take such
action. The benefits to which an employee is
entitled are determined solely by the provisions
of the applicable benefit program. Absent an
express delegation of authority from the Board of
Directors, no one has the authority to commit the
Corporation to any benefit or benefit provisions
not provided for under the applicable benefit
program, or to change the eligibility criteria or
any other provisions of such program.

General Motors has also reserved the right to
construe and interpret these benefit programs.
Each benefit program also has an appeal
procedure which serves as the exclusive manner
for resolution of all disputes concerning the
interpretation or application of the program.
The decision on appeal is final and binding.




                                                    October 2003

				
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