Diageo2010. OE Guide FINALENG

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Diageo2010. OE Guide FINALENG Powered By Docstoc
					                       Celebrating
                                      YOU
DIAGEO TOTAL REWARDS Health • Wealth • Life




   Your Benefits 2010




   This year’s Open Enrollment runs
   November 2 through November 18.
Table of
Contents


    1    Choosing Diageo Benefits for 2010
    2    What’s in This Kit?
    3    What’s Not Changing and What is Changing
  4–5    Eligibility, Enrolling, and Paying for Coverage
  6–8    Medical Coverage
 9–10    Dental Coverage
   11    Vision Coverage
 12–14   Flexible Spending Accounts
   15    Spending Account Worksheet
   16    Disability Insurance
   17    Life Insurance
   18    Vacation Buy Program
   19    Legal Assistance Plan
   20    Ready, Set, Enroll!
 21–22   Consider Enrolling in a Savings Plan This Year
 23–25   Other Benefits Available to You
   26    Contact Information
Choosing Diageo
Benefits for 2010

Open Enrollment is your opportunity to enroll for the following benefits:
I   Medical coverage                 I   Basic and Supplemental Life and
I   Dental coverage                      AD&D Insurance and Business
                                         Travel Accident Insurance (BTA)
I   Vision coverage                  I   Vacation Buy Program
I   Flexible Spending                I   Legal Assistance Plan
    Accounts (FSAs)
                                     I   401(k) Plan
I   Long-Term Disability
    Insurance
I   ShareValue Plan

You have from November 2 to November 18 to enroll for coverage or make changes to these benefits.
This Guide will help you understand what your options are and how to select the best benefits for
your needs.
I   Enrollment in the ShareValue Plan will also take place during the Open Enrollment period.
    This will be your only opportunity to participate in the 2010 offering of the ShareValue Plan. Complete
    plan participation and enrollment information is included in the packet.
I   You can also enroll in or review your savings in the 401(k) Savings Plan. Do you want to save for
    the future? The Savings Plan offers a convenient way to save for retirement using pretax dollars.
    That means less money for the IRS and more money for you. Additional information is included on
    page 21.
Keep in mind that when you make an enrollment election, you are making a financial decision for
both you and the Company. As you may remember from the Open Enrollment newsletter you received
recently, you and Diageo share in the cost of your medical care. You can see your monthly cost
compared with the Company’s monthly cost in the enclosed 2010 Benefit Costs and Worksheet. It’s
important to take the time to consider your options and choose the benefits that best suit your needs.




    Enrollment Deadline
    If you want to make changes to your coverage, contribute to a Flexible Spending Account (FSA), or
    participate in the Vacation Buy Program for 2010, you must submit your elections by November 18.




                                                                  1
What’s
in This Kit?

The contents of this Enrollment Kit are designed to help
you understand the benefit options that you are currently
enrolled in and your options for 2010. Remember, the Open
Enrollment period is from November 2 to November 18.

This Enrollment Kit includes the following:
I   2010 Flexible Benefits Enrollment Guide: Use this Guide
    to review all your available benefit options for 2010, plus
    enrollment reminders and useful contact information.
I   2010 Medical Comparison Guide: This shows you a
    comparison of all your medical coverage options.
I   2010 Benefit Costs and Worksheet: This outlines the cost
    for each of the benefits in this Guide, including both your
    costs and the Company’s costs for the coverage. This also
    includes a worksheet to help you calculate your projected
    cost per paycheck for each benefit election.
I   ShareValue Guide: This year, enrollment in the ShareValue
    plan will also take place during open enrollment. Use this
    Guide to learn about the ShareValue Plan, how it works,
    who’s eligible, and how to enroll.
I   Enrollment Worksheet: If you are an hourly employee,
    you will receive a separate mailing with a worksheet to
    aid in your enrollment elections. You can use this
    worksheet if you do not have Internet access to review
    your current elections. Please see the next page for
    enrollment instructions.
    If you do not make elections by November 18, you will be
    re-enrolled in the same medical election that you have now.
    You must also re-enroll for the FSA and Vacation Buy
    elections, as these do not carry over year to year.




    Diageo Benefits Calculator tool
    Are you overinsured for medical coverage? Are you
    choosing the best coverage for you and your family?
    During Open Enrollment, use the Diageo Benefits
    Calculator tool at www.mydiageobenefits.com to find the
    right coverage for you.




                                                                  2
What’s Not Changing
and What is Changing

No contribution changes
In 2008, we introduced new plan administrators who have assisted us in stabilizing our health care
costs. As a matter of fact, our projected health care cost increase for 2010 is only 2.6% — far below
the national average. Diageo will absorb this cost increase and freeze employee contributions for 2010.
This means your health plan contributions will remain the same as what you paid for comparable
coverage in 2009. Furthermore, Diageo was able to negotiate reduced rates for the Dependent Life and
Long Term Disability plans. Employees enrolling in those plans will see a decrease in contribution costs.

Enroll using the new Health and Welfare website and Benefits Center
Our new self-service website — www.mydiageobenefits.com — that was rolled out earlier this year
will be used for enrolling in all of our Health and Welfare plans for 2010. This website can be accessed
from any computer with an Internet connection, 24 hours a day, seven days a week. You can also call
the Benefits Center at 1-800-523-2309 between 8 a.m. and 8 p.m. EST if you do not have access to a
computer. If you haven’t registered on the website yet, you can do so by following the “First-Time User?”
link. Please note that your ShareValue Plan elections will still be collected on the Diageo One website.

New offerings
Diageo is pleased to announce the following improvements and additions to offerings for 2010:

I   As part of Mental Health Parity legislation, Mental Health services will no longer have annual visit
    limits tied to them.
I   All UnitedHealthcare and Aetna medical plans will use Medco pharmacy services for their
    Prescription Drug plan. This change will allow for consistency between the prescription drug
    offerings for the UnitedHealthcare and Aetna plans. You will receive a new prescription drug card
    to use for 2010 if you choose an Aetna or United Healthcare medical plan.
I   Due to your responses to last year’s Rewards Survey . . .
    – White fillings will be covered under the Dental plans.
    – Access to Bright Horizons back-up child care centers and a network of in-home care providers will
      be available. For a small copay at a center, or a modest hourly rate for in-home care, you can ensure
      that your childcare needs will be met.
    – College Coach will offer their expertise to help alleviate the stress and distraction of the college
      admission and application process. Included are financial workshops, personal counseling with
      former college admissions officers and unlimited access to an e-mail/phone help desk.
    – Quorum Financial will offer a unique suite of banking services: one of the largest, free ATM
      networks in the country; checking with interest; checking/credit rewards; vehicle loans; and
      mortgage and home equity loans.
    – Work-life balance was a concern for 77% of employees who responded to the survey.
      We evaluated the current concierge services provided by LifeCare and decided that a new
      company called Circles can provide our employees with an enhanced level of service. Beginning
      January 1, 2010, all Diageo employees will have access to Circles via an 800 number, e-mail or website.
      More information on these exciting new offerings will be provided in the near future.




                                                                     3
Eligibility, Enrolling,
and Paying for Coverage

Who’s Eligible To Participate?
All full-time (20 or more hours per week) nonbargaining unit employees of Diageo, and their dependents,
are eligible to participate in the Company’s Flexible Benefits Program beginning on their date of hire.

Diageo reserves the right to audit dependent elections to ensure they abide by plan rules. Please review
the eligible dependent definition below and use the Open Enrollment period to make any needed updates.

Your eligible dependents* include:
I   Spouse (unless legally separated)
  – Civil union partner
  – Spouse of the same sex
I Domestic partner of the same or opposite sex

I   Natural, preadopted, or legally adopted children or stepchildren (including children of eligible civil union
    partners, same-sex partners married in Massachusetts and domestic partners) who are:
    –   Unmarried
    –   Under age 19 (or under age 25 if they are full-time college students)
    –   Primarily dependent upon you for support
    –   Not employed full-time AND living with you
    Coverage ends for children at the end of the month in which they reach age 19 (age 25 or graduation
    for full-time students, whichever occurs first).
I   Disabled children of any age (subject to plan approval)

Paying for Coverage
You and Diageo share in the cost of health care coverage. The cost of your coverage depends on the options
you elect and the level of coverage you choose. You pay for your share of health care coverage, FSAs, and
vision coverage with pretax money that is deducted from your regular paycheck before taxes have been
withheld. Diageo pays for the rest. You can view both your monthly cost and the Company’s monthly cost
for coverage in the enclosed 2010 Benefit Costs and Worksheet.

If you are covering a domestic partner, his or her coverage is taxable. The value of your domestic partner’s
coverage will be reflected in your payroll statement as imputed income, and income taxes will be withheld
from your pay based on your tax liability for that imputed income.

When you enroll for medical, dental, and vision coverage, you must choose one of the following
coverage levels:
I   Employee             I   Employee + 2
I   Employee + 1         I   Employee + 3 or more

* Any new dependents will require verification documentation, such as marriage certificate or a birth certificate.
  Exact details of the required documentation will be provided to you when adding a new dependent.




                                                                     4
What Is a Domestic Partner?
The Company defines a domestic partner as a relationship between two people (same or
opposite sex) who meet all of the following criteria:
I   Each of you is of legal age (at least 18 years of age or older), mentally competent to
    enter into contracts, and a legal U.S. resident.
I   You have joint responsibility for each other’s welfare and for all your financial obligations.
I   You have resided in the same household with each other for more than 12 months and are
    continuing to reside in the same household together.
I   You have had an intimate, committed relationship for over 12 months, intend to do so
    indefinitely and have no such relationship with any other person.
I   You are not related by blood to your partner to a degree of kinship that would prevent
    a marriage between you from being recognized under the law of the state in which
    you reside.
I   Neither one of you is married to any third party.

To enroll your domestic partner and his or her children, you must complete an Affidavit
of Domestic Partnership. If you submit a false Affidavit or fail to notify the Company of a change
in the above criteria, you will be responsible for reimbursing the Company for all claims paid by any
of Diageo’s plans.

When Can I Change Coverage during the Year?
If you have a life-status change during the year and wish to change your benefit elections, you must
notify your local Human Resources Representative within 31 days of your life-status change.




    What Happens If You Don’t Enroll?
    If you are an eligible employee during 2009 and you don’t re-enroll during the 2010
    Open Enrollment period, you will be re-enrolled in the same elections you have now,
    other than FSA and Vacation Buy elections. You must re-enroll for FSA contributions and
    Vacation Buy elections as they do not carry over year to year.




                                                                     5
Medical Coverage


Understanding the Medical Plan Offerings
It’s important to remember that Diageo pays the majority of the cost for both the health care
services you receive and the premium cost of the medical plans we offer. As both the cost of         Need Help Deciding?
care and medical coverage increase, we continue to look for new ways to offer the protection
and value you deserve at a price we can all afford.                                                  Use the Diageo Benefits Calculator
                                                                                                     tool at www.mydiageobenefits.com
We also understand the importance of choice. We want to continue giving you a choice of              by simply entering some general
medical plan options so you can tailor coverage to your personal and family needs and budget.
                                                                                                     information about your family’s health
This is why we have partnered with Aetna and UnitedHealthcare to offer choices from two of
                                                                                                     care needs. The Diageo Benefits
America’s leading health insurers. We encourage you to learn as much as you can about the
plans and the companies that offer them. Use the resources in this Enrollment Guide to get to        Calculator tool can help you estimate
know Aetna and UnitedHealthcare and what they offer you and your family.                             your potential costs for each
                                                                                                     medical plan.
Four Aetna plan options and four UnitedHealthcare plan options are available to you for 2010.
California–based employees have the choice of an HMO plan from Kaiser Permanente.

The Aetna and UnitedHealthcare plans are identical. As you make your enrollment decision, you’ll need to
compare the two companies, their provider networks and the value-added programs and services they offer.

A general summary of your health care options is described below. Details of your costs for
specific services are outlined in the enclosed 2010 Medical Comparison Guide. You may also visit
www.diageobenefitsenroll2010.com for links to the UHC and Aetna website for additional information.

Aetna Plan Options
The four Aetna plan options vary based on their deductibles, copays, coinsurance, out-of-pocket maximums,
and per-paycheck contributions. These plans are:
I   Aetna Plan 100
I   Aetna Plan 90
I   Aetna Plan 80
I   Aetna HMO

Aetna Plan options 100 to 80 use the same network of doctors. The Aetna HMO uses another network. You
can determine which network is best for you by going to the Aetna DocFind® website. See below for more
information. Although you can use any provider you wish, you will receive a higher level of benefits when
you use an in-network provider.

Is Aetna Right for You?
The Aetna Provider Network
Aetna maintains one of the nation’s largest networks of doctors, hospitals, pharmacies and other health care
providers. They contract with more than 490,000 primary care doctors and specialists, and over 4,900 hospitals.
This means you can find a variety of network providers near you. In fact, many of the providers you now use
most likely belong to Aetna’s network. You can find out by using DocFind, Aetna’s online provider directory.
Just go to www.aetna.com and click on “Find a Doctor.” For plans 100 to 80, you will need to search the
Choice POS II network. For the HMO, you will need to search the Open Access Aetna SelectSM network.




                                                                  6
Medical Coverage
(continued)


Your UnitedHealthcare Plan Options
The four UnitedHealthcare plan options vary based on their deductibles, copays, coinsurance,
out-of-pocket maximums, and per-paycheck contributions. These plans are:
I   UnitedHealthcare Plan 100
I   UnitedHealthcare Plan 90
I   UnitedHealthcare Plan 80
I   UnitedHealthcare HMO

Each option provides you with a network of doctors to choose from. The UnitedHealthcare Plan
options 100 to 80 use the same network of doctors. The UHC HMO uses another network to
determine what network is best for you, visit www.myuhc.com/groups/diageobenefits. Although
you can use any provider you wish, you will receive a higher level of benefits when you use an
in-network provider.
                                                                                                        The Value of Network
Is UnitedHealthcare Right for You?                                                                      Providers
The UnitedHealthcare Provider Network
UnitedHealthcare’s provider network includes 490,000 primary care physicians and specialists,           If you use a network provider, you
and more than 5,000 hospitals. You can use Find-a-Doctor, the UHC online provider directory,            will almost always save money and
to find network providers near you. Just visit www.myuhc.com/groups/diageobenefits, look                avoid the inconvenience of filing
under “Find Physicians and Facilities” and fill in the requested information. The UnitedHealthcare      claims. (In HMOs, you are required
provider directory lets you search for doctors, hospitals, facilities and other providers, as well as   to use network providers.)
providers of medical equipment and supplies. You can search for a specific doctor, all doctors
in a given area, specialists, doctors recognized by the National Committee for Quality Assurance
                                                                                                        The UnitedHealthcare and Aetna
(NCQA), and more. You can also refine your search by gender and language preferences. Provider
                                                                                                        plans offer a large network of
details include office hours, education and credentials, and hospital affiliations. For plans 100 to
80, search the Plan 100, Plan 90, or Plan 80 network; for the UHC HMO, search the HMO network.          providers. If you would like to
                                                                                                        find out if a specific provider
Kaiser Permanente HMO                                                                                   participates in these plans, visit
                                                                                                        www.diageobenefitsenroll2010.com
Kaiser Permanente is only available in California. Each HMO offers varying levels of medical
services and prescription drug coverage, but all require you to use network providers in order          and click on the provider link,
to receive a benefit, except in an emergency.                                                           go directly to
                                                                                                        www.myuhc.com/groups/
Carefully review the 2010 Medical Comparison Guide to determine if you are eligible for a               diageobenefits or
Kaiser Permanente HMO, and if so, whether this option best suits you and your family’s needs.           www.aetna.com or use
                                                                                                        the provider search tools on
                                                                                                        www.mydiageobenefits.com.




                                                                   7
No-Coverage Option
The no-coverage option is for employees who receive medical coverage through another source,           Plan for Your Health
such as through coverage available to a spouse, domestic partner, civil union partner, or same-sex
spouse. If this applies to you, you can receive cash back in your paycheck if you enroll in that       Aetna recently launched a Plan for
                                                                                                                   SM
coverage instead of Diageo’s medical coverage.                                                         Your Health public education
                                                                                                       campaign that is available at
The $500 cash back you would receive is taxable and is paid over the course of the year. If you        www.planforyourhealth.com.
elect this option, but lose that other coverage at a later date, you will have 31 days to elect        If you register for the website,
Diageo medical coverage.                                                                               you can receive a free copy of
                                                                                                       Navigating Your Health Benefits
How Do I Choose?
                                                                                                       for Dummies, a booklet that
Diageo gives you a variety of medical and prescription drug benefit options to choose from, so         can help you learn more about
it’s up to you to enroll in the plan that best suits your needs. To decide what the best medical
                                                                                                       health benefits and how to
plan option is for you, there are several things you should consider:
                                                                                                       choose and use them wisely.
I   Look at your general level of health. Are you and your family members in good health? Do you       This guide does NOT contain
    eat right and exercise?                                                                            Aetna-specific information; it’s a
I   Review how frequently you use medical services. How many times do you and your family              general guide that anyone may
    members generally go to the doctor in a year? Is there a specialist who one of you sees on a       find helpful. Register today to
    regular basis? How many prescriptions do you fill each year?                                       receive your free copy!
I   Think about your anticipated needs for 2010. Are you expecting a baby or any other type of
    planned hospitalization?
I   Compare the coverage that Diageo offers with other coverage available to you. Is another group’s
    medical plan available to you, such as through your spouse or domestic partner’s employer?

For assistance with this decision, use the Diageo Benefits Calculator tool, which will be available
during Open Enrollment on www.mydiageobenefits.com. Simply enter some general information
about your family’s health care needs for the coming year, and the tool will do the rest:
I   See what your medical and prescription drug costs would be under the plans available to you
    using the Medical Expense Estimator.
I   You can also use the Health Care Spending Account Estimator and the Dependent Care
    Spending Account Estimator to help you determine how much you should contribute to a
    Health Care FSA and/or a Dependent Care FSA. The tool will estimate your anticipated health care
    costs and calculate your federal tax savings so you can maximize your savings with an FSA.
I   You can also use the Life Insurance Estimator and Long Term Disability Estimator to help
    determine the right coverage levels for you.
The 2010 Medical Comparison Guide included in this Enrollment Kit can also help you compare
plan options. Be sure that your elections are the right choices for you!




                                                                  8
Dental
Coverage

               Diageo offers three dental coverage options through Delta
               Dental. All these options encourage preventive care and
               also help you pay for a broad range of other dental services
               when treatment is needed.

               All three options allow you to use any dentist you choose,
               but using an in-network dentist will generally cost you less
               than an out-of-network dentist. Within the three dental
               options, there are two networks for you to choose from:
               DeltaPreferred and DeltaPremier. It is not necessary
               to select a network when you enroll, but you can receive
               enhanced benefits for certain services by using dentists who
               participate in the DeltaPreferred network—see opposite
               page for details.

               Network providers have agreed to accept payment at a
               negotiated rate that is lower than the rate normally charged,
               and network provider charges are almost always within
               reasonable and customary (R&C) limits. Also, your cost is
               usually less if you use in-network providers. In addition to
               lower out-of-pocket costs, a network provider usually
               submits all claim forms on your behalf.

               To find out whether a specific provider participates in one of
               the Delta Dental plan networks, call 1-800-452-9310 or log
               on to www.deltadentalnj.com.

               No-Coverage Option
               If you don’t enroll in dental coverage through Diageo
               because you have dental coverage available through
               another source, you can select the no-coverage option and
               receive $50 cash back per year. The $50 cash back is taxable
               and is paid over the course of the year. If you elect this
               option, but lose your other coverage at a later date, you will
               have 31 days to elect Diageo dental coverage.




           9
                                                        Dental Option 1                  Dental Option 2                   Dental Option 3
Annual Deductible                                                                     Individual: $50; Family: $150
Preventive and Diagnostic Care                                                               Covered at 100%
(exams, X-rays, routine cleanings)
Basic Restorative Care                                  I DeltaPremier,* or out-of-network dentist: The plan pays 80% of the R&C**
(extractions, fillings, etc.)                             cost after deductible.
                                                        I DeltaPreferred* dentist: The plan pays 100% of the R&C cost after deductible.


Major Restorative Care (crowns, inlays,                 Not covered                      I DeltaPremier,* or out-of-network dentist: The
onlays, bridgework, etc.)                                                                  plan pays 50% of the R&C cost after deductible.
                                                                                         I DeltaPreferred,* or out-of-network dentist: The

                                                                                           plan pays 60% of the R&C cost after deductible.
Dental Implants                                         Not covered                      Not covered                       The plan pays 50%
                                                                                                                           of the R&C cost after
                                                                                                                           deductible, up to $1,000
                                                                                                                           lifetime maximum
Orthodontia                                             Not covered                      Not covered                       The plan pays 50%
                                                                                                                           of the R&C cost after
                                                                                                                           deductible, up to $2,000
                                                                                                                           lifetime maximum
Annual Benefit Maximum                                  $750                             $1,500                            $3,000
Lifetime Benefit Maximum                                N/A                              $1,000 treatment                  $1,000 for treatment
                                                                                         of TMJ                            of TMJ; $2,000 for
                                                                                                                           orthodontia; $1,000
                                                                                                                           for implants

 * To find out whether your dentist is a member of one of the Delta Dental networks, log on to www.deltadentalnj.com, or call Delta Dental at
   1-800-452-9310 to speak with a representative.
** Reasonable and Customary (R&C) — Charges based on what providers with similar professional backgrounds, education, and experience charge for a
   specific service within a given area. Generally, you are required to pay amounts above R&C limits.




                                                                              10
Vision Coverage


The Vision Service Plan (VSP) reimburses you for a portion of the cost of some vision services, including
routine vision exams, lenses, frames, contact lenses and LASIK surgery. You can use any provider you
wish, but you will save money by using Vision Service Plan network providers. To find out whether a
provider is a member of the Vision Service Plan network, call 1-800-877-7195, or log on to
www.vsp.com.

When considering whether to enroll in the Vision Service Plan, it’s important to factor in what you
would pay annually in paycheck contributions for the coverage, and whether that exceeds the
cost you would pay for frames or lenses without the coverage. You may also save on your vision
expenses by simply using the Health Care FSA to pay for your vision expenses with pretax dollars.

Also, consider how vision care is covered by your medical plan. Most medical plans cover vision
care that is due to illness or injury of the eye, and some even cover basic annual eye examinations.
Check with your medical plan to be sure.



Vision Service Plan Benefits
                                                VSP In-Network Provider                 Out-of-Network Provider
Vision Exam (one exam per year)                 $5 copay                                $45 reimbursement
Lenses (one pair per year)                      $20 copay                               $45 to $125 reimbursement
                                                                                        depending on lenses purchased
Frames (one pair every two years)               $20 copay                               $47 reimbursement
Contacts (one pair per year)                    VSP pays full amount if medically       $210 reimbursement if medically
                                                necessary, $120 if elective             necessary, $105 if elective
LASIK Surgery                                   Contact VSP for benefit                 Contact VSP for benefit




                                                                11
Flexible Spending
Accounts

Flexible Spending Accounts (FSAs) give eligible employees the opportunity to set aside pretax dollars for
nonreimbursed health care expenses (through the Health Care Account) and for dependent day care
expenses incurred while working (through the Dependent Care Account). Your pretax contributions are
deducted from your paycheck in equal installments throughout the year.

Saving money with a Health Care Account is easy. If you enroll in the Health Care Account for 2010, you’ll be
able to open an FSA Debit Card. The FSA Debit Card is a quick and convenient way to be reimbursed for
eligible FSA expenses. See below for details.

Remember, if you want to contribute to an FSA for 2010, you must make an election between November 2
and November 18; your 2009 FSA elections will not carry over to 2010. Estimate your expenses carefully
because you will forfeit any unused money left in your account at the end of the year. Use the Diageo
Benefits Calculator tool at www.mydiageobenefits.com for help.

If you need more information on which expenses are eligible for reimbursement through FSAs, visit
www.myuhc.com or see IRS Publications 502 and 503, which are available by accessing www.irs.gov or
calling 1-800-829-3676. These documents contain a complete list of eligible health care and dependent
care expenses. You are responsible for making sure that the expenses you submit for reimbursement are
allowable expenses as defined by the IRS.

NOTE: You may have heard that the IRS recently passed a ruling that extends the deadline for incurring FSA
expenses to help participants avoid losing leftover funds at the end of the year. However, this legislation conflicts
with certain FSA plan features, and the regulations are currently being reviewed by the IRS. Diageo continues to
monitor and assess the feasibility of implementing the extension, but due to uncertainties in the legal and
administrative environment, a decision was made to delay adoption of this deadline extension.

Health Care Account
How the Card Works
If you enroll in the Health Care Account for 2010, you will receive a debit card in the mail. After you activate
the card, you can present it when paying for medical and prescription drug services wherever MasterCard® is
accepted, and the appropriate amount will be automatically deducted from your account. With the swipe of
your card at approved locations, you automatically withdraw funds from your Health Care Account to pay for
prescriptions and copayments at the doctor’s office, emergency room, and more.




 Use It or Lose It
 Be sure to plan your FSA contributions carefully. The IRS requires that you forfeit any money not used for
 expenses incurred between January 1 and December 31, 2010. You have until March 31, 2011, to request
 reimbursement for expenses incurred during the 2010 calendar year.




                                                                     12
Flexible Spending
Accounts (continued)

The debit card will automatically debit your FSA account based on the guidelines established by the IRS
and the provisions of your medical plan. The card may not work for certain health care expenses,
including some dental and vision expenses, and medical expenses if you’re not enrolled in a Diageo
medical plan. If your card is denied, you can still use your Health Care Account to pay for those
expenses, but you will need to file a traditional claim.

Keep all receipts for health care transactions. The Health Care Account and card are regulated by the
IRS, so you may be required to substantiate your purchases.

How the Health Care Account Works
You can contribute between $120 and $5,000 per year to a Health Care Account. When you incur an
eligible expense, you will be reimbursed up to the maximum amount that you set aside for the year,
even if that amount has not yet been deducted from your pay. Due to the “use it or lose it ”rule, you
forfeit any unclaimed balance in your account at the end of the year.

Below are some examples of eligible expenses for your Health Care Account:
I   Over-the-counter medications such as antacids (e.g., Tums), allergy and cold medications (e.g.,
    Benadryl), pain relievers (e.g., Advil), and antibiotic ointments
I   Acupuncture treatments
I   Birth control items prescribed by a doctor
I   Copayments
I   Deductibles
I   Prescription eyeglasses or contact lenses
I   Smoking cessation programs and drugs prescribed to alleviate nicotine withdrawal
I   Speech therapy

Below are a few examples of expenses that are ineligible for Health Care Account reimbursement:
I   Dental bleaching
I   Health club fees
I   Marriage and family counseling
I   Expenses reimbursed by other insurance plans (including your spouse’s, domestic partner’s, civil
    union partner’s, and same-sex spouse’s insurance plans, Medicare or Medicaid)




                                                                  13
Dependent Care Account
The Dependent Care Account follows the same pretax
rules as a Health Care Account. It can be used to pay for
day care, nursery school, or summer camp. To be eligible
for reimbursement, the care must enable you (and your
spouse, if you are married) to work, look for work, or
attend school full-time.

You can contribute between $1,000 and $4,000 each year
in the Dependent Care Account. Reimbursements will be
processed for expenses after they are incurred and will be
reimbursed up to the account balance available at the time
the claim is submitted. You forfeit any unclaimed balance in
your account at the end of the year.

Eligible expenses for Dependent Care Accounts include:
I   Licensed day care provider
I    Individuals, including relatives, who provide care in or
    outside your home (other than your dependents or your
    children under age 19)
I   Nanny expenses for services provided in your home
I   Summer day camp

Below are a few examples of expenses that are ineligible for
Dependent Care Account reimbursement:
I   Care provided by your spouse, domestic partner, civil union
    partner, same-sex partner, your children under age 19, or
    any other dependent
I   Care provided for non-work-related reasons
I    Expenses paid to a housekeeper, maid, cook, etc., unless
    specific to the care of your dependent
I   Overnight camp



    Diageo Matches a Portion of Your Dependent Care Account Contributions!
    To help you pay for your dependent care expenses, Diageo will match 25¢ for every pretax dollar you contribute to your
    Dependent Care Account each year, up to a maximum of $1,000. For example, if you contribute $2,000 to the Dependent
    Care Account, the Company will add $500 to your account, so you could be reimbursed for up to $2,500 of dependent care
    expenses that year.




                                                                  14
Spending Account
Worksheet

Use the worksheet below to help you estimate your eligible health care and dependent care expenses for 2010. The Diageo
Benefits Calculator tool also has a Health Care Spending Account Estimator tool that can help you determine how much
you can save if you contribute to a Health Care Account—visit www.mydiageobenefits.com to get started.


Health Care Account Worksheet
Deductibles, copayments and coinsurance under your Company’s and/or your                                   $
spouse’s medical plan
Other medical expenses not covered by your Company and/or your spouse’s plan                               $
(e.g., out-of-network expenses, outpatient mental health sessions that exceed
annual plan maximums, physical therapy sessions that exceed plan maximums,
glasses and orthotics)
Deductible, copayments and coinsurance under your Company’s and/or your spouse’s                           $
dental plan
Other dental expenses not covered by your Company and/or your spouse’s plan                                $
(e.g., amounts that exceed annual plan maximums)
Any other medical, dental or vision expenses not covered under your Company’s or                           $
your spouse’s plan
Total estimated health care expenses for 2010                                                              $
Dependent Care Account Worksheet
Care provided (in or outside your home) for:
  I   Children under age 13                                                                                $
  I   Disabled children over age 13                                                                        $
  I   Dependent adults of any age                                                                          $
Before-school or after-school care for children under age 13                                               $
Nursery school                                                                                             $
Summer day camp                                                                                            $
Total estimated dependent care expenses for 2010                                                           $

Remember—estimate your expenses carefully. The IRS requires that you forfeit any money not used for expenses incurred between January 1 and
December 31, 2010. You have until March 31, 2011, to request reimbursement for expenses incurred during the 2010 calendar year.




                                                                           15
Disability Insurance


In the event that you become disabled, Diageo’s Long-Term Disability Insurance provides employees and
their families with financial assistance.

Company-Provided Disability Benefit
The Company provides a basic benefit of 50% of your annual base salary, up to $225,000, if
you are totally disabled for more than six months. This coverage is provided at no cost to you.

Elective Disability Benefits
In addition to the coverage provided by the Company, you can elect coverage of:
I   60% of your salary (so that you are paying for the extra 10% of coverage above the Company-provided
    benefit), or
I   70% of your salary (so that you are paying for the extra 20% of coverage above the
    Company-provided benefit)

If you elect the 70% coverage option for the first time, you will be provided with a Personal Health Statement
(PHS) that you must complete and return before coverage can go into effect for 2010. This only applies if
you go from 50% to 70%, not from 60% to 70%.

The monthly costs for elective disability benefits are outlined in the enclosed 2010 Benefit Costs
and Worksheet.



    Do I Need the Elective Coverage?
    When considering whether to elect additional disability coverage beyond what the
    Company provides, ask yourself:
    I   If I become permanently disabled, what other source of income would
        be available?
    I   Could my dependents maintain their present lifestyle on the Company-provided
        disability benefit alone?
    I   If I become disabled, would I need to hire someone to care for me? If so, how would
        I pay for that care?




                                                                   16
Life Insurance


Diageo offers life insurance to provide you with financial assistance in case of severe injury
or death. This includes Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental
Life and AD&D, and Dependent Life Insurance. You also have access to Business Travel Accident
Insurance (BTA).

Basic Life and AD&D Insurance
The Basic Life and AD&D benefit allows you to elect either $50,000 or two times your annual base
salary, up to a $1 million maximum, at no cost to you.

Supplemental Life and AD&D Insurance
Supplemental Life and AD&D Insurance is available for purchase for coverage equal to one, two, three,
four, or five times your annual base salary, up to a maximum of $1,500,000 (combined with Basic Life
and AD&D). The cost of your coverage is determined based on the amount of coverage you elect, your
annual base salary, your age, and whether you are a smoker. The monthly costs for supplemental
insurance are outlined in the enclosed 2010 Benefit Costs and Worksheet.
                                                                                                        Life Insurance:
If you wish to increase your coverage during Open Enrollment, you will receive a Personal Health        Things to Consider
Statement (PHS) that you must complete and return before your coverage becomes effective
for 2010.                                                                                               Ask yourself:

Dependent Life Insurance                                                                                I   How many people depend
                                                                                                            on my income for support?
You can elect the following dependent life insurance:
                                                                                                            My spouse’s income?
I   For your spouse, domestic partner, civil union partner, or same-sex spouse:
                                                                                                        I   What other insurance
    – $10,000 coverage                                                                                      does my spouse have,
    – $25,000 coverage                                                                                      such as through his or
    – $50,000 coverage                                                                                      her employer’s plan?
                                                                                                        I   Do we have major expenses
I   For each dependent child:                                                                               to cover such as a mortgage,
    – $5,000 coverage                                                                                       a loan, or tuition?
    – $10,000 coverage                                                                                  I   How might an accident
                                                                                                            affect my finances? If I lost
The monthly costs for dependent life insurance are outlined in the enclosed 2010 Benefit                    a limb, would I still be able
Costs and Worksheet.                                                                                        to do my job? Would I be
                                                                                                            able to pay for medical or
If you increase your dependent life insurance coverage for a spouse during Open Enrollment,                 rehabilitation costs not
you will receive a PHS that you must complete and return before your coverage becomes                       covered by my medical plan?
effective for 2010.

Business Travel Accident Insurance (BTA)
This Company-provided benefit offers added protection against accidental loss of limb, life,
or sight while you are traveling on Company business. Your benefit equals five times your annual
salary, up to a $500,000 maximum.




                                                                  17
Vacation Buy
Program

The Vacation Buy program allows you to buy up to one week of vacation time through pretax payroll
deductions. To take advantage of the Vacation Buy program, you must make an election during the Open
Enrollment period.

You are unable to purchase partial days. You may request reimbursement for unused vacations days during
the distribution period only by completing a form, obtaining your manager’s signature, and sending it to
First Point. You will be notified ahead of time of the distribution period. Forms can be found
on Diageo One.




Vacation Buy Worksheet
This worksheet may help you determine how many hours of vacation time you may purchase based on cost.
Depending upon your work schedule, you may purchase up to one week of vacation per calendar year. The
cost of your vacation is calculated using your hourly rate of pay multiplied by the number of standard hours
in your regularly scheduled work day.

Calculating Days To Purchase (in Hours):
       Number of standard hours in a work day
       Number of days you wish to purchase                                                         X
       Vacation days, in hours, you wish to purchase*                                              =
Calculating Your Monthly Cost:
       Vacation days, in hours, you wish to purchase*
       Your hourly rate of pay                                                                     X
       Total cost for number of days purchased                                                     =
       Divide by 12 months                                                                         ÷   12
       Your monthly cost of vacation time purchased                                                =
* This number may not exceed the number of standard hours in your regularly scheduled work week.




                                                                           18
Legal Assistance
Plan

                        The Diageo Legal Assistance Plan gives you convenient, affordable,
                        and accessible legal advice for a small monthly after-tax payroll
                        deduction. You may use your discretion in selecting an attorney or
                        chose one from Signature Legal Care’s network of more than
                        10,000 attorneys nationwide. Services received through a network
                        attorney are often fully covered by the plan. See the 2010 Benefit
                        Costs and Worksheet for details.

                        Some services covered under the Legal Assistance Program
                        include:
                        I   Adoptions
                        I   Attorney office work
                        I   Child custody/child support
                        I   Consumer protection
                        I   Debt collection defense
                        I   Defendant civil action
                        I   Driver’s license suspension
                        I   Estate administration
                        I   Guardianship
                        I   IRS audit
                        I   Juvenile court proceeding
                        I   Marriage matters
                        I   Name change
                        I   Real estate matters
                        I   Wills and trusts

                        For more information, call 1-800-848-2012, or visit
                        www.legalcareplan.com. Select Diageo from the pull-down
                        menu and key in the password: 43164.




                   19
Ready, Set, Enroll!


Enrolling in Diageo’s Flexible Benefits Program is easy—just follow these steps:


I   Our new self-service website — www.mydiageobenefits.com —
    that was rolled out earlier this year will be used for enrolling in all of our
    Health and Welfare plans for 2010. This website can be accessed from
    any computer with an Internet connection, 24 hours a day, seven days a
    week. You can also call the Benefits Center at 1-800-523-2309 between
    8 a.m. and 8 p.m. EST, if you do not have access to a computer. If you
    haven’t registered on the website yet, you can do so by following the
    First-Time User? link.
    Upon logging onto the www.mydiageobenefits.com website, you may
    review your dependent, beneficiary, and enrollment information. You may
    also use the Diageo Benefits Calculator tool on the website—see below for
    more information. Once you are ready to enroll, click the “Enroll Online”        Please note that your ShareValue
    button in the upper left-hand corner of the Welcome page.                        Plan elections will still be collected
                                                                                     on the Diageo One website. If you

I   Read your Enrollment Kit. Review this Guide and all enclosures                   need a password reset, you should
    carefully to understand all your benefit options.                                make your request to the Help Desk or
                                                                                     via the Password Reset service as soon

I   Use the Diageo Benefits Calculator tool. During Open Enrollment,                 as possible. Otherwise, you will risk
    you can use this tool to help estimate your cost of care and figure out          missing the Open Enrollment deadline.
    which plan best suits your needs. Log on to www.mydiageobenefits.com
    to use the tool.

I   Consider enrolling in a savings plan.

I   Enroll by the deadline. Make your elections during the Open
    Enrollment period, which is from November 2 to November 18, 2009.
If you have any questions, contact your local Human Resources
Representative or First Point at 1-877-446-4461 or
firstpoint_americas@diageo.com.
Remember, if you do not make elections during the Open Enrollment period, your
current benefit options will be automatically renewed. You will however, need to
re-enroll for your FSA and Vacation Buy elections.
If you enroll for benefits on www.diageobenefits.com, be sure to print a copy of
your 2010 elections for your records. If you enroll using the Benefits Center, a
confirmation statement will be mailed to your home after the enrollment period
ends and your elections have been processed.




                                                        20
Consider enrolling in a
Savings Plan This Year

ShareValue Plan
The Diageo ShareValue Plan is an employee stock purchase plan. You have the opportunity to buy
Diageo stock at a discount based on the terms of the Plan. You can set aside from $250 to $20,000 of
after-tax money that will be deducted from your paychecks throughout 2010. The money you’ve set
aside will be used to buy Diageo American Depository Shares at the end of the 2010.

You are eligible to participate if you customarily work 20 or more hours per week at least five months
during the year and have a hire date of 10/1/2009 or earlier. You are also eligible if you are an
International Assignee, on a home country package working in the U.S. and excluded from participation
in a comparable plan in your home country.

The enrollment process will be accomplished by accessing Diageo One.

401(k) Savings Plan
The 401(k) Savings Plan makes it easy to save for your retirement. The Plan offers
you several savings advantages, including:
I   Convenient payroll deductions: You may contribute from 1% to 50% of your salary (pretax and/or
    after-tax) each year up to IRS limits.
I   Tax deferrals: You do not pay taxes on pretax contributions or on any earnings on your account until
    distribution.
I   Investment choices: The Plan offers you a broad selection of investment funds for your savings and
    an opportunity to change your investments on a daily basis.
I   Access to your money: You may borrow or withdraw money from your 401(k) account before
    retirement.
I   Vesting: You are always 100% vested in your contributions.
I   Distribution of your account: If you leave the Company or retire, the full value of your vested account
    is available to you. Various payout options are available if your account balance is greater than
    $5,000.

You many enroll in or access your Savings Plan account at any point during the year, however, Open
Enrollment is a great time to do so. Log on to www.401k.com to get started.




                                                                  21
Deferred Compensation Plan (DCP)
The DCP allows Executives to defer up to 100% of their current
Annual Base Salary and/or Annual Incentive Bonus on a pretax
basis. The deferral amounts will earn interest based on either
a fixed rate or on a menu of investment options.

All Senior Leaders, L2 and L3 Executives on a US reward
framework are eligible to participate in the DCP.

The enrollment process will be accomplished by accessing
AlignOne, the Internet website hosted by Clark Consulting,
the Plan Administrator, at www.alignone.com. This website
contains all the information and forms necessary to
participate in the DCP for the 2010 Plan Year. If you are an
executive and choose not to enroll in the Diageo North
America, Inc., Deferred Compensation Plan for 2010, you
will still need to access AlignOne and click the “Decline
Enrollment” button on the Welcome Page.




Key Reminders
I   Enroll in the ShareValue Plan if you would like to participate
    for 2010.
I   Enroll in or review your savings in the 401(k) Savings Plan.




                                                                     22
Other Benefits
Available to You

                        The following is a list of work/life benefits that Diageo
                        makes available to you. These services include:
                        I   Employee Assistance Program (EAP)
                        I   Group Auto, Home, and Pet Insurance
                        I   Long-Term Insurance Care
                        I   Commuter Expense Reimbursement Program (CERA)

                        Though you can enroll in these programs at any time, it is
                        important that you are aware of all the benefits Diageo has
                        to offer. Note: you don’t need to enroll in the EAP or
                        LifeCare programs; as a Diageo employee, you are
                        automatically enrolled.

                        Employee Assistance Program (EAP) and the
                        New Circles Concierge Services
                        The EAP program gives you access to valuable services
                        and referrals to help you manage both the simple and
                        complicated matters of your daily life. On your first day
                        of work, you are automatically enrolled for this program,
                        for which Diageo pays the full cost. Refer to your 2010
                        Employee Benefits Summary Plan Description (SPD) at
                        www.diageobenefitsbook.com for details about this
                        program.

                        Stay tuned for additional information about the new Circles
                        Concierge program that will be available on January 1, 2010.




                   23
Group Auto, Home, and Pet Insurance
Diageo gives you the opportunity to purchase auto, home, and pet insurance at discounted group rates
(available in most states) through MetLife in after-tax payroll deductions.

The following types of policies are available for Group Auto and Home Insurance:
I   Home (not available in         I   Condominium                   I   Fire
    California or Florida)         I   Boat owners                   I   Mobile home
I   Auto                           I   Recreational vehicle          I   Personal excess liability
I   Renters                        I   Landlord’s rental dwelling        (umbrella)


The following types of policies are available for Pet Insurance:
I   Dogs                           I   Birds                         I   Rabbits
I   Cats                           I   Ferrets                       I   Exotic pets

For more information, call 1-800-438-6388 or visit www.metlife.com/mybenefits
(enter Diageo North America as the Company name).

Long-Term Care Insurance
Long-Term Care Insurance, provided through MetLife, addresses emotional and financial issues associated
with caring for those who are unable to take care of themselves. The plan covers a number of Long-Term
Care services, including nursing home care, adult day care, and assisted-living facilities.

You can also get coverage for your spouse, domestic partner, civil union partner, same-sex spouse, parents
and parents-in-law, grandparents and grandparents-in-law, and adult children age 18 and over. The cost for
coverage is determined by the age of the person enrolled.

If you would like more information about this program, log on to www.metlife.com/mybenefits (enter
Diageo North America as the Company name), or call 1-800-GET-MET8 (438-6388), Monday through Friday
between 6:00 a.m. and 8:00 p.m. PST and Saturday between 7:00 a.m. and 3:30 p.m. PST.




                                                                    24
Commuter Expenses Reimbursement Account (CERA)
CERA allows you to pay for commuting expenses such as mass transit, vanpools, and parking using
pretax and after-tax dollars. These can be paid through payroll deductions.

How CERA Works                                                               Eligible Expenses                  Ineligible Expenses
Through CERA, you have access to a national catalog of parking and
transit vendors. If your vendor is listed in the catalog, UnitedHealthcare    I   Bus                           I   Taxicabs
will automatically pay the vendor each month. You will receive your           I   Trains                        I   Carpools
parking or transit pass by mail.                                              I   Subway                        I   Limousines
                                                                              I   Ferry                         I   Tolls
If your vendor is not in the catalog, you must submit a claim for             I   Streetcar                     I   Parking on or near
reimbursement. You have six months to submit a claim from the date            I   Vanpools*                         employee residential
you incur a commuting expense. After six months, the funds remaining          I   Parking at or near work           parking
in your account will be carried over, available for use for future claims.    I   Parking at or near public
No further payroll deductions will be made until you submit a claim.              transportation you use
                                                                                  to get to work
The advantages of CERA include:
                                                                             * The vehicle must have seating for at least six adult passengers,
I   For every dollar you contribute to your CERA account, Diageo               with 80% of mileage and 50% of seating capacity used for
    will match it by contributing 50¢, up to a maximum of                      employee transport.
    $50 a month for commuting expenses only.
I   Your entire monthly commuting fee will be deducted from
    your first monthly paycheck.
I   Enroll only one time while you’re an employee of Diageo North
    America as long as your commuting expenses don’t change. If
    they do change, your elections can be modified anytime during
    the year.
I   You may authorize pretax payroll deductions of up to $230 per month for commuting
    and $230 per month for parking.
I   If you have expenses above the pretax limits, you can authorize payroll deductions of after-tax dollars
    up to a combined pretax and after-tax maximum of $500 per month.

To Enroll in CERA
You can enroll in CERA or modify your elections at any time. Simply follow these steps:
I   Log on to www.myuhc.com.
I   Complete the online CERA worksheet, which can help you determine your annual CERA pretax and
    after-tax deductions for the year.
I   Follow the prompts on the screen.

You can also call 1-877-311-7849 between 9:00 a.m. and 8:00 p.m. EST.




                                                                   25
Contact Information


For More Information About:            Contact:
Aetna                                  1-800-562-2955
I Plan 80                              www.aetna.com
I Plan 90

I Plan 100

I Aetna HMO



UnitedHealthcare                       1-888-697-9063 or
I Plan 80                              www.uhc.com or
I Plan 90                              www.myuhc.com
I Plan 100

I UHC HMO



Prescription Drug Plan                 www.medco.com
I Select option

I Enhance option



Health Maintenance Organizations       Kaiser Permanente North & South (CA)—1-800-464-4000 or
Kaiser Permanente (CA only)            www.kaiserpermanente.org

Aetna Global Benefits Expatriate       1-800-231-7729 or use AT&T International Toll-Free Service calling
Medical Plan                           instructions or www.aetna.com/agb

Delta Dental of New Jersey             1-800-452-9310 or www.deltadentalnj.com

Vision Service Plan                    1-800-877-7195 or www.vsp.com

Health Care and Dependent Care         1-877-311-7849 or www.myuhc.com for claims information
Flexible Spending Accounts

Legal Assistance Plan                  1-800-848-2012 or www.legalcareplan.com
                                       (Select Diageo from the pull-down menu and key in the password: 43164)

Life Insurance, Long-Term Disability   Diageo One or your local HR Representative
and Vacation Buy Program




                                                     26
Notes




        27
Federally Mandated
Mastectomy Care

Federal law requires plans that cover mastectomy to cover
certain reconstructive surgery following a mastectomy, and to
provide plan participants with a notice of this coverage each
year. In compliance with this law, Diageo’s medical plans cover:
I   Reasonable and customary expenses associated with
    reconstructive surgery following a mastectomy
I   Reasonable and customary expenses associated with
    reconstructive surgery on the other breast to achieve
    symmetry
I   The reasonable and customary cost of prostheses
I   The reasonable and customary costs for the treatment of
    physical complications at any stage of the mastectomy,
    including lymphedemas

The normal copays, deductibles and coinsurances for the
medical plan you select will apply.




                                                               28
Diageo North America, Inc.
Human Resources Solutions
801 Main Avenue
Norwalk, CT 06851




These materials are intended to provide an easy-to-understand summary of the provisions of the medical plans. The information is meant to assist you in making
your benefit decisions. It is not meant to take the place of the official plan documents that govern the plans. If there is a discrepancy between these comparisons
and the plan documents, the provisions of the plan documents will prevail. You may request copies of the plan documents by submitting your request through
First Point at firstpoint_americas@diageo.com, or call 1-877-446-4461.



                                       30%


              Cert no. SW-COC-002935




CCG 09-0617 10/2009

				
DOCUMENT INFO