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Healthy Living

FALL 2010 Enroll Now for Your 2011 Benefits

Journey to

Dear Serco Colleagues: Welcome to the 2011 Benefits Open Enrollment period. Now is the time of year to carefully consider the benefits available to you and make the choices that best reflect your family’s needs over the coming year. Please take this opportunity to consider your personal journey to healthy living and make the choices that will help you commit to living well in 2011. There are many changes in this year’s benefits reflecting the national health care landscape changes and the addition of more resources to better serve your needs including a new online benefits advisor. Two major forces have shaped the changes summarized here—Health Care Reform, which became law this past spring, and Serco’s own escalating health care costs. For more information on the 2011 changes, see page 2. As a company, we saw our health care costs rise by about 30 percent in 2010. This is significantly higher than national trends, which averaged about a 10% increase. We’ve made changes to our medical plans to help better manage costs in the future. Now, more than ever, it’s important that you understand your needs and choose the plan that’s right for you. Some of these increased costs could be avoided if every covered family member took advantage of their 100% covered preventive care. Preventive care helps to identify problems early and prevent higher costs later on. Ultimately, when claims increase, our insurance costs increase. So, the healthier our population, the lower our claims, and the lower costs are for you and Serco. For 2011 we’re putting in place more incentives for healthy behavior. See next page for details. Our 2011 benefits program continues to be attractive and competitive while encouraging you to: l Choose well—offering you more choices and the ability to customize a benefits program to meet your unique needs l Use well—giving you new tools and information to help you make better and more informed choices l Live well—presenting you with programs and incentives to make it easier for you to take care of yourself and lead a healthier life There are many resources available to help you better understand your benefit choices this year including a call center and a new online advisory tool, which are referenced and described in this newsletter. I hope you will take full advantage of these resources so that you thoroughly understand your options and can feel confident that you have made the very best choices for you and your family. Please join me and the entire Serco family in committing ourselves to achieving our journey to healthy living for all in 2011. Sincerely,

Open Enrollment Decisions........................... 1 Summary of 2011 Plan Changes.................... 2 Preparing for Enrollment... 3 Eligibility for Benefits......... 4 Health Assessment........... 5 Your Medical Options........ 7 Medical Plans At-A-Glance....................... 8 The Premier and Value Medical Plans.......... 9 Prescription Drug Benefits........................... 11 TRICARE Supplement Program. .......................... 12 Dental Benefits................ 14 Vision Benefits. ................ 15 Flexible Spending Accounts . ....................... 16 Life and AD&D Insurance. ........................ 17 Disability Insurance......... 19 401(k) Plans.................... 20 Employee Assistance .......................... 21 Program. Voluntary Benefits........... 22 Resources At-A-Glance. .. 24 How to Enroll................... 25

Louis Montgomery SVP Human Resources


Important Information
Open Enrollment for all Serco employees
Nov. 8, 8 a.m. ET to Nov. 19, 8 p.m. ET Use Serco’s online enrollment system to elect benefits for 2011. See enrollment instructions on page 25.

Benefits Information Webinars
Nov. 8-18 Serco’s Benefits Webinars can help you learn more about your benefit options. And, the Webinars are open for your spouse or domestic partner to participate. See a complete schedule on pages 2-3.

Open Enrollment Solutions Center
Nov. 8-19 Open 8 a.m. to 8 p.m., ET, weekdays. Within the U.S.: (888) 892-0487 Outside the U.S.: (703) 939-6010

Incentives for 2011

To begin your journey to healthy living, we’re offering the following incentives in 2011: l Take care of yourself by getting an annual physical and learning your important health numbers (e.g., cholesterol, blood pressure, etc.) - In-network preventive care is covered at 100% -  If you enroll in the CIGNA Value Medical Plan, you’ll also receive points (that can later be applied against the cost of copays or deductibles) when you complete your annual physical and other recommended preventive tests and treatments l Learn about your health risks by completing your health assessment -  Your health assessment is a survey (posted on CIGNA’s website) that helps you identify your health risks and actions you should be taking to help mitigate those risks -N  EW REQUIREMENT: If you are enrolled in a CIGNA U.S. plan, you must complete the health assessment before March 15, 2011 or an additional $15 surcharge will be deducted from your paycheck each pay period until your health assessment is completed. Completion status will be reviewed and updated quarterly. l If you’re an expectant mother, participate in CIGNA’s Health Pregnancy, Healthy Babies program -  Sign up and complete this CIGNA program and you can receive up to $250

Open Enrollment Decisions

Open Enrollment offers you choices. While some of the benefits and plan features may be familiar to you, others will be new. Take the time to learn about all of your options and consider what makes the most sense for you and your family. You may enroll in, drop or make changes to the plans listed below:
l  edical M

Jellyvision Benefits Advisor

(prescription drug benefits are

included in the medical plan)
l  ental D l  ision V lF  lexible

Spending Accounts Life* and AD&D

lS  upplemental

lV  oluntary

Benefits (e.g., pre-paid legal,

pet insurance, commuter assistance*)
*These benefits can be added or changed at any point during the year.

The new Benefits Advisor online tool from Jellyvision helps you select the benefits that best suit your needs. The tool walks you through a confidential set of questions. Your answers are then fed into a custom algorithm that determines which combination of benefit options is right for you. Not only will the tool provide a recommended plan, but it will explain exactly why the plan is best for you, so you can feel confident and informed when making your benefit decisions. You will find the Jellyvision Benefits Advisor on Serco’s portal,

If you are enrolled for 2010 coverage and take no action during Open Enrollment, you will automatically continue in the same plans for 2011, with the exception of flexible spending accounts. You must enroll each year to take advantage of a flexible spending account. See page 16 for more information on these plans.

Choose Well. Use Well. Live Well.


Summary of 2011 Plan Changes
Each year we evaluate our benefit plans and vendor partners.
We want to ensure your benefits remain competitive, cost-effective and deliver a good customer experience. Here is a quick summary of the 2011 changes, which are described in more detail throughout this newsletter:
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Medical Plan no longer carries a lifetime benefits maximum; this plan also offers an incentive for getting preventive care. reflux will require a generic first. This change does not apply if records show that you have purchased a brand-name drug within the last 120 days, or your doctor requests a brandname drug for medical reasons and it is approved by CVS Caremark. complete a health assessment through CIGNA by March 15, 2011, or an additional $15 per paycheck surcharge will be deducted from your paycheck (if you participate in a CIGNA U.S. medical plan.) medications not prescribed by a physician (except insulin) are not eligible for reimbursement from the health care flexible spending account. Premier Plan Health Reimbursement Account will be automatically used to pay for prescription drugs at the point of sale (retail pharmacy or mail order) without submitting a claim for reimbursement. vision plans are now offered— standard and enhanced. new critical illness insurance plan is available. Read more on page 22.

lN  ew prescriptions for high cholesterol or acid

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costs for all medical plans increase. There are also changes to deductibles, copays and coinsurance, so review your medical options carefully. new online tool, the Jellyvision Benefits Advisor, helps you make your enrollment decisions. Read more on page 1. children are now eligible for health, dental, vision, and dependent life/ AD&D coverage up until age 26. Plans no longer require student verification; CIGNA international, HMSA and Kaiser plans will require an affidavit signed by the employee stating the dependent does not have coverage available through the dependent’s employer.


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Webinar Schedule
Date Time

November 8,9,10,11,12,15,16,17 and 18 November 8,9,10,11,12,15,16,17 and 18 November 10 and 17 November 9 and 16 November 11 November 16

11 am -12 pm ET 6:00 pm - 7:00 pm ET 5:00 pm - 6:00 pm ET 1:00 pm - 2:00 pm ET 9:00 am ET 9:00 pm ET

2011 Serco Employee Benefits – Cigna Health Plans 2011 Serco Employee Benefits – Cigna Health Plans 2011 Serco Employee Benefits – HMSA Health Plans 2011 Serco Employee Benefits – Kaiser and Cigna Health Plans 2011 Serco Employee Benefits – Cigna International 2011 Serco Employee Benefits – Cigna International

Serco Benefits Team

Note: Spouses are welcome!


Choose Well. Use Well. Live Well.

Preparing for Enrollment
Take action to ensure you are ready:
lR  ead

through this newsletter carefully your needs for 2011

lC  onsider lT  alk

to your family about your options

lP  articipate lU  se

in a live Webinar or use the online self-paced tool the Jellyvision Benefits Advisor tool on to help with your decisions the Open Enrollment Solutions Center with questions a decision about your benefits for 2011

Webinar Schedule

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Join us for an overview of everything you need to know to make your 2011 elections. Registration is not required for any of the webinars. To join the Webinar:
lF  ollow lE  nter lF  or

lM  ake

the WebEx Link

the Meeting Number and Password

Go to to enroll. See page 25 for detailed instructions.

audio, call the Dial-In Number and input the Conference Code

If you can’t attend one of the live Open Enrollment Webinars, you can access an online, self-paced presentation at any time on

WebEx Link

WebEx Meeting Number 795 159 648 793 828 172 798 765 035 790 103 336 797 578 247 797 185 266

WebEx Password

Audio Dial In Number

Conference Code

SercoOE2011 877-885-2711


Choose Well. Use Well. Live Well.


Eligibility for Benefits
If you are a full-time employee working at least 30 hours per week you are eligible to enroll in the Serco Benefits Program.
Dependents eligible for the medical, dental, and vision plans include your spouse, same-sex or opposite-sex domestic partner, and children under age 26.

Tax Implications of Domestic Partner Benefits

The medical and/or dental premium associated with coverage for a domestic partner and his/her child(ren) may be paid as a taxable benefit. The amount associated with the full premium for the domestic partner and his or her children, who do not qualify as a “dependent” under the Internal Revenue Code, must be imputed as income for federal income tax purposes. Generally, domestic partner premiums will be treated as subject to state income tax. Employees who believe they may qualify for a state tax exemption should consult their personal tax advisor.

Effective January 1, 2011, health care coverage (except TRICARE) will be available to any dependent child up to age 26. If your dependent child previously lost coverage under our plans because of age and is again eligible for coverage, you have 30 days from the beginning of our enrollment period to re-enroll your child. After the online enrollment period ends on November 19, you can enroll your dependent by sending a paper enrollment form to the Benefits Department by December 8, 2010.The paper enrollment form is available on For more information, contact the Serco Benefits Department at (703) 939-6010 or (888) 892-0487.

Health Care Benefits Eligibility Extended to Age 26

ID Cards

Medical Plan ID Cards—You will only receive a new medical plan ID card if you change plans (e.g., move from the Premier plan to the Value plan), or if you are enrolled in the Standard plan. If new ID cards are issued, they will automatically be issued for each plan participant. Prescription Drug Plan ID Cards—If you are enrolled in a CIGNA U.S. plan, you will receive a new CVS Caremark Card if you change medical plans or are enrolled in the Premier plan. Please Note—Your new ID cards must be used to access your benefits starting January 1, 2011.

When Payroll Deductions Begin for These Selections
Payroll deductions for Serco benefits that go into effect January 1, 2011 will begin with your January 14, 2011 paycheck.


Choose Well. Use Well. Live Well.

Health Assessment Saves You Money!
Here’s an important number for you to remember this enrollment season:
Is My Health Information Secure?
Rest assured that CIGNA will hold your health assessment information confidential, just as your health plan claims data is kept confidential. Your results will not affect your employment status with Serco or your benefits eligibility with CIGNA. Based on the results of your health assessment, a CIGNA representative may contact you to discuss ways to improve your health. you can print and use for your own personal health planning. Your report has suggestions for keeping you healthy, and it’s a great way to get started on your personal journey to healthy living! The individual results of your health assessment are confidential, but the aggregate results will show the health and wellness needs of Serco employees and help us design strategies for improving the health of our overall population. Here are some examples of what other companies have learned as a result of the health assessment.
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If you enroll in a CIGNA U.S. plan, you can save $15 each pay period just for taking 15 minutes of your time to visit CIGNA’s website and complete your health assessment online. You must complete your health assessment between now and March 15, 2011 or you will pay a $15 per pay surcharge beginning April 1, 2011. This surcharge will appear as a separate payroll deduction. Here’s how to access the health assessment. If you’re currently enrolled in a CIGNA medical plan, go to and follow the links for the health assessment. You’ll need to login using the username and password you established for accessing the CIGNA site. If you are enrolling in a CIGNA domestic medical plan for the first time, you may access the health assessment prior to January 1, 2011 by following this special link: Registration/LoginPage.aspx?o=f89244ce-be6b4c6d-a590-0d35fa298ef5 You’ll be asked to set up a username and password the first time you access the site. Be sure to make a note of it, as you’ll need this information in the future. So, what is a health assessment? It’s a confidential survey that offers you personal recommendations for keeping yourself healthy. It only takes about 15 minutes to complete. You answer questions about your current health and lifestyle. You immediately receive a report that

Management – 51% are above the recommended weight range Fitness – 55% showed need for improving fitness levels Risk Reduction – 52% have higher cancer risk Risk Reduction – 22% have a moderate to high coronary risk Stress – 13% are bothered by excessive stress

lI   mproving

lC  ancer

lC  oronary

lM  anaging

Choose Well. Use Well. Live Well.


Take Control of Your Health
Know Your Numbers
Knowing your important health numbers — cholesterol, blood pressure, blood sugar, and body mass index (BMI) — can help you better manage your health. That’s because these numbers are indicators of your risk for chronic diseases, such as heart disease and diabetes. Your numbers will tell you and your doctor what you are doing right and what areas you need to work on. Your health assessment is most effective when you include “your numbers” in your response. So, next time you visit your doctor, ask him/her to give you your important health numbers. CIGNA has a convenient tool posted on that will help you record and track your health numbers.

Wellness Programs

There are numerous programs available to employees who are covered by a CIGNA U.S. medical plan. These programs are free of charge and are designed to help you know more about your current state of health so you can get the care you need…and save money! Programs offered include:
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nutrition, fitness, sleep and stress coaching management programs for weight loss, strength and resilience and tobacco cessation Babies® Rewards® Health Information Line Health Record

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Preventive Care

Getting routine care is the best way to learn about your health risks before they turn into problems. All Serco medical plans provide 100% coverage (no deductibles, copayments, or coinsurance) for the following services when performed by an in-network doctor:
lA  nnual

To find out more about any of these programs, visit the CIGNA website at

physical gynecological exams care screening screening

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lM  ammography


Expecting a pregnancy in 2011? The CIGNA Healthy Pregnancies, Healthy Babies™ program can help ensure everything goes exactly as planned. A CIGNA maternity nurse will support you and your doctor in developing a plan for your pregnancy and provide follow-up throughout your pregnancy. And, you can earn up to $250 for participating! Visit for more information.


Choose Well. Use Well. Live Well.

Your Medical Options
Serco offers four CIGNA medical plans for employees who live in the United States1, except in Alaska and Puerto Rico .

The plans differ in these ways:
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in-network care is covered under the Value and Standard plans. The Enhanced and Premier plans cover both in- and out-ofnetwork care. deductible is different depending upon the plan you choose. way you pay for care is different—some plans have copays for services and some use coinsurance.
• Basic coverage • Incentive Points (see page 10) • For some services you pay a flat fee, called a copay; for others the plan pays 70 percent of the cost after you meet your deductible. • In-network coverage only • Higher deductible • Serco pays half of your deductible through a Health Reimbursement Account • In- or out-of-network coverage

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The four medical plans are:
l Value

Plan Plan Plan Plan

l Premier

l Enhanced l Standard

Value Plan – Lowest Premium

The plans are alike in these ways:
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have access to the same extensive CIGNA network of providers. If you change from one plan to another, you’ll be able to keep your in-network doctors! cover in-network preventive care services at 100 percent. limit your out-of-pocket costs— if you use network providers, the most you will pay outof-pocket within a calendar year for any plan is $3,000 for individual coverage or $6,000 for family coverage. plans have a deductible.

Premier Plan – Low Premium

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Enhanced Plan – Medium Premium

Your CIGNA Network
When using the CIGNA website, be sure to select Open Access Plus, OA Plus, Choice Fund OA Plus as your network.
Standard Plan – Highest Premium

• For some services you pay a flat fee, called a copay; for others, you pay a percentage of the cost (your coinsurance); once you have met your deductible—the plan pays 80 percent of the cost (in network). • In- or out-of-network coverage • For some services you pay a flat fee, called a copay; for others the plan pays 90 percent of the cost after you meet your deductible. • In-network coverage only

1 2

Employees living outside the United States will have CIGNA International for medical, dental and vision. Medical benefits for employees in Puerto Rico and Alaska will vary. For more information, log onto or contact the Open Enrollment Solutions Center at (888) 892-0487.

Choose Well. Use Well. Live Well.


Medical Plans At-A-Glance
The chart below highlights some important differences among your medical plan choices. For more information on the plans, call the Open Enrollment Solutions Center at (888) 892-0487 during Open Enrollment.

Rates can be found on
  Feature   Deductible
(employee only/ employee + dependents)

CIGNA Medical Plans
Standard In-Network $200/$400 90% $2,500/$5,000 In-Network $300/$600 80% $3,000/$6,000 Enhanced Out-of-Network $600/$1,200 60% $4,000/$8,000 Premier In-Network $1,500/$3,000 90%* $2,000/$4,000 Out-of-Network $3,000/$6,000 70%* $4,000/$8,000 Value** In-Network $500/$1000 70%* $2,000/$4,000

Coinsurance Coinsurance Out of Pocket Maximum
(employee only/ employee + dependents)

Health Reimbursement Account Wellness/Incentives





N/A Employees can earn up to $200/yr ($400/ yr with spouse or domestic coverage N/A Copays for office visits, and ER/Urgent Care included in out of pocket maximum $20 $30 100% 70%*

A variety of wellness programs are available through Cigna

Copay Out of Pocket Maximum

copays included in out of pocket maximum above $20 copay $40 copay 100% 90%*

copays included in out of pocket maximum above


PCP Office Visit Specialist Office Visit Preventive Care Diagnostic Laboratory and X-ray – outpatient facility except MRI/ PET/CT scan MRI/PET/CT scans – outpatient Inpatient Hospital Outpatient Hospital Emergency Room

$20 copay $30 copay 100% 80%*

60%* 60%* 60%* 60%*

90%* 90%* 100% 90%*

70%* 70%*  100% 70%*

90%* 90%* 90%* $200 copay, then 90%, waived if admitted 100% after $50 copay $15,000 lifetime maximum 100% after copay, unlimited visits 100% after copay, 24 visits/year 90%*, unlimited days 100% after $40 copay, unlimited visits 90%* after initial visit

80%* 80%* 80%* $200 copay, then 80% waived if admitted 100% after $50 copay $15,000 lifetime maximum 100% after copay, unlimited visits 100% after copay, 24 visits/year 80%*, unlimited days 100% after $30 copay, unlimited visits 80%* after initial visit copay

60%* $250 per admission deductible then 60% * 60%* $200 copay, then 80% waived if admitted  100% after $50 copay  $15,000 lifetime maximum 60%*, unlimited visits 60%*, 24 visits/year $250 copay, then 60%*, unlimited days 60%*, unlimited visits 60%*

90%* 90%* 90%* 90%*

70%* 70%* 70%* 90%*

70%* 70%* 70%* $200 copay, then 70%, waived if admitted 100% after $75 copay not covered 70%*, 20 days/yr includes Chiropractic 70%*, 20 days/yr includes Therapies 70%*, unlimited days 100% after $30 copay, unlimited visits 70%*

Urgent Care Infertility Therapies (Physical, Speech, Occupational) Chiropractic Inpatient Mental Health Outpatient Mental Health Maternity care – physician charges

90%* $15,000 lifetime maximum 90%*, unlimited visits 90%* after copay, 24 visits/year 90%*, unlimited days 90%*, unlimited visits 90%*

90%*  $15,000 lifetime maximum 70%*, unlimited visits 70%*, 24 visits/year 70%*, unlimited days 70%*, unlimited visits 70%*

* after deductible ** There are several services not covered by the Value Plan. For a full list, see page 10.


Choose Well. Use Well. Live Well.

Special Features of the Premier Medical Plan
If you enroll in the Premier Plan, Serco will automatically contribute money to an HRA. The money in your account will be used to pay for eligible medical and prescription drug expenses.
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family members that you cover for health care will share one HRA If you leave Serco and do not elect -  Cobra, or you stop participating in the Premier Plan next year, any money in your HRA is forfeited you meet your deductible, the traditional medical plan features begin

to pay for eligible medical and prescription drug expenses and to help meet your annual deductible deposits $750 for individual coverage and $1,500 for family coverage into your HRA — that’s half the annual deductible paid for by Serco! you purchase a prescription at the pharmacy, if there is money in your HRA, it will automatically be used to pay for the prescription

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The money in your HRA will only cover part of your deductible. Use your Health Care FSA to cover the rest of your deductible and any additional out-of-pocket expenses. To best estimate your out-of-pocket costs for 2011, look over your medical expenses from previous years.

New for 2011, the money in your HRA will automatically be used to cover your eligible medical and prescription drug expenses. You will no longer be required to submit a claim form requesting reimbursement for prescription drug costs.

Choose Well. Use Well. Live Well.


Special Features of the Value Medical Plan
If you enroll in the Value Plan, you have access to a special Incentive Points Program. Here’s how it works. You are eligible to receive reimbursements of up to $200 each year, or $400 each year if your spouse is covered through your plan. When you receive a preventive care service, such as an annual physical or preventive screening, you will be reimbursed a set amount of money just for being proactive about getting healthy. Here’s how it works:
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provides 100 percent coverage for preventive care services for all medical plan options. However, you can only receive the reimbursements with the Value plan. In order for CIGNA to credit your account, you must submit a form signed by your physician. You can find the form on in mind, the Value plan does not cover the following services: - Bariatric surgery - Breast reduction - Wigs - Cranial therapy/ craniosacral - Panniculectomy/ abdominoplasty - Sexual dysfunction therapies - TMJ treatment - Varicose veins treatment - Acupuncture - Hearing aids - Infertility treatment

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you or your spouse receives a preventive care service, CIGNA deposits a set amount of money into an account in your name. A routine physical for you and your spouse can earn you $75 each. next time you need to pay a copay or deductible, the money in that account will be used to cover your out-of-pocket costs. - If you don’t use all of the money in your account in 2011, it will roll over into 2012.

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Choose Well. Use Well. Live Well.

Prescription Drug Benefits for CIGNA U.S. Plans
CVS Caremark is your partner in managing your prescription drug needs. You can obtain 90-day supplies of all medications at CVS retail pharmacies. You don’t need to use a CVS drugstore, however; you can use most retail pharmacies to fill a 30-day prescription. And mail order still offers the lowest price for a 90-day supply.

Understanding Your Rx Costs

Step Therapy will be introduced to the prescription drug plan in 2011. If you are newly diagnosed with high cholesterol or acid reflux disease in 2011, any new prescriptions for these disease-related medications must be first filled using a generic medication. Your doctor will monitor the effectiveness of the generic treatment and decide whether you should continue with the generic treatment or change to a brand-name drug. If you are currently being treated for one of these diseases, then here is what will happen:
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If your doctor doesn’t think a generic is right for you, please have your doctor contact CVS Caremark toll-free at 1-877-203-0003. If your doctor receives prior approval, your brand-name drug may be covered under your plan. Generic medications are a safe and less expensive alternative to brand-name drugs. They have the same chemical composition and effectiveness. Currently taking a brand-name prescription for cholesterol or acid reflux? Check your mail for $0 copay coupons and information about generic medications from CVS Caremark!

CVS Caremark’s records show that you have purchased a generic medication within the last 120 days, then a brand-name treatment will be covered, if you decide to change medications. have purchased on a brand-name medication within the last 120 days, then your brandname drug will continue to be covered as long as you purchase the drug at least every 120 days.

lI  f CVS Caremark’s records show that you

Prescription Drug Benefits At-A-Glance
Retail (30-day supply) Mail Order (90-day supply) CVS (90-day supply) $8/$25/$50 $20/$60/$125 $24/$75/$150

$8/$25/$50 $20/$60/$125 $24/$75/$150

90%** 90%** 90%**

$5/$25/$60 $12/$60/$125 $15/$75/$180

*Value Plan Only: When a generic is available and a brand-name drug is dispensed, the participant will pay the generic copayment plus the difference between the cost of the generic and the cost of the brand. **after combined medical/prescription drug deductible Copays are listed for Generic/Brand Formulary/and Brand non-Formulary. Rx benefits are only covered in-network. Be sure to check that your pharmacy is part of CVS Caremark’s network.

Choose Well. Use Well. Live Well.


TRICARE Supplement Program
If you are a military retiree or dependent, you may remain eligible for health benefits through TRICARE following retirement from active duty. Dependent eligibility for TRICARE remains unchanged. Eligible unmarried children can be covered up to age 21 (or age 23 if full-time student), unless disabled and continues to have TRICARE. If you are participating in TRICARE, you may want to consider enrolling in a voluntary TRICARE Supplement Plan sponsored by the American Military Retirees Association and administered by Association & Society Insurance Corporation. There is a $100 deductible per individual and a $200 deductible per family for the plan year of Oct. 1 - Sept. 30.


To be eligible for TRICARE, a military retiree must be entitled to retired, retainer or equivalent pay and be listed in the DEERS (Defense Enrollment Eligibility Reporting System) database. Supplemental coverage coordinates with TRICARE Standard or TRICARE Extra. This coverage automatically converts to Medicare Supplement at age 65. TRICARE/CHAMPUS Supplement is administered by Association & Society Insurance Corporation. The TRICARE Supplement coordinates covered benefits with the TRICARE Standard/Extra programs so that on a combined basis, eligible participants have virtually 100% coverage. TRICARE supplement is available to you as a voluntary, pre-tax benefit. The TRICARE supplement program is not affected by recent health care reform legislation.

TRICARE Supplement Bi-weekly Rates
Employee only Employee + One Employee + Family $30.92 $60.92 $82.15


Choose Well. Use Well. Live Well.

TRICARE Supplement Program
TRICARE Supplement Program At-A-Glance
TRICARE Standard
Eligible Unmarried Children Deductible Pre-Existing Condition Limitations Fiscal Year Outpatient Deductible (Fiscal Year: October 1 – September 30) Lifetime Benefit Maximum Annual TRICARE Enrollment Fee Precertification Requirements Inpatient Military Hospital Care (For Retirees and Dependents) Inpatient Civilian Hospital Care (For Retirees and Dependents)


To age 21; To age 23 if full-time student, unless disabled and continues to have TRICARE $100/individual and $200/family for the plan year Oct.1 - Sept. 30 None Reimburses deductible amounts For retirees: $150 per individual and $300 per family Unlimited None Only as required by TRICARE Reimbursed the daily subsistence fee • Reimburses your cost share For retirees, this is the lesser of the •  daily per diem charge or 25% of the billed amount not to exceed the TRICARE Standard DRG Amount PLUS  100% of covered charges in excess of the TRICARE Standard allowed amount Reimburses your cost share •  For retirees, this is the lesser of the •  daily per diem charge or 20% of the TRICARE Extra contract rate

Outpatient Services •O  utpatient Hospital Services (Nonemergency, Nonsurgical) • Surgery • X-ray and Laboratory • Office Visits • Well Baby Care • Accident/Emergency Care • Home Health Care Prescription Drugs

Reimburses outpatient deductible amounts and your 25% cost share PLUS 100% of covered charges in excess of the TRICARE Standard allowed amount

Reimburses outpatient deductible amounts and your 20% cost share

•  Network Pharmacy: Reimburses the TRICARE copay if a network pharmacy; applicable deductible applies Non-network Pharmacy: 25% cost share and 100% of applicable excess charges •  Reimburses up to $500 for cost share and deductible in a 12-month period after TRICARE pays Calendar year benefit maximum of 30 days for participants age 19 or older, or 45 •  days for participants under age 19 •  If TRICARE approves benefits beyond these daily limits, the supplemental coverage is limited to the lesser of the number of days TRICARE pays or 90 days per calendar year

Outpatient Mental Health Inpatient Mental Health (Includes Alcoholism, Drug Addiction, and Mental and Nervous)

Choose Well. Use Well. Live Well.


Dental Benefits
The Serco Dental Plan is administered by United Concordia and is available to all benefits-eligible employees and their dependents located in the United States. It offers you two options—the Enhanced Plan and the Standard Plan. Both plans cover an extensive array of dental services and orthodontia for all ages. In either plan, you may choose a dental provider that is in or out of the United Concordia network, with varying coverage levels. With both dental plans, your preventive services are covered at 100% and they do not apply to the annual maximum coverage limit. The plans also cover basic services (simple extractions, fillings, and anesthesia), major treatment (root canals, oral surgery, gum disease treatment, crowns, and dentures) and orthodontia. You will only receive a new ID Card if you change plans. If you have a question about dental benefits, contact the Open Enrollment Solutions Center at (888) 892-0487.

Dental Plans At-A-Glance

The chart below shows how the Enhanced and Standard Plans compare.

The costs for each plan can be found on or obtained from your HR point of contact.
Enhanced Plan
In-Network Individual Family Annual Maximum per Member Orthodontia Lifetime Maximum per Member Preventive* Basic Major Orthodontia $25 $50 $2,000 $2,000 Out-of-Network $50 $100 $1,500 $2,000 Deductible (preventive and orthodontia exempt) $50 $100 $1,250 $1,000 Plan Pays 100% 100% 100% 100% $75 $150 $1,000 $500

Standard Plan
In-Network Out-of-Network

90% after deductible 90% after deductible 80% after deductible 70% after deductible 60% after deductible 60% after deductible 50% after deductible 50% after deductible 50% 50% 50% 50%

*Does not apply to annual maximum


Choose Well. Use Well. Live Well.

Vision Benefits
Serco’s vision benefits are administered by VSP and are available to all benefits-eligible employees and their dependents located in the United States. There are no ID cards for vision coverage. The last four digits of the employee’s Social Security number will be the ID number. It offers you two options — the Enhanced Plan and the Standard Plan. Both plans cover an array of vision services, including eye exams, frames and lenses, and contact lenses. If you elect coverage under the Serco vision plans, you can log on to the VSP website,, or call (800) 877-7195, to find a VSP provider in your area. When you make your appointment at the provider of your choice, you should identify yourself as having VSP coverage. Your provider will confirm coverage before your appointment. International Serco Employees do not have VSP. Vision coverage is included in your medical plan.
Standard Plan $ 3.74 $ 7.48 $ 6.74 $10.48

VSP Vision Bi-weekly Rates
Employee only Employee + Spouse Employee + Child(ren) Employee + Family Enhanced Plan $ 5.05 $10.11 $ 9.09 $14.15

Vision Benefits At-A-Glance

The following chart highlights coverage you receive under the Plans.

Enhanced Plan
Eye Exam (one per calendar year) Retinal screening Lenses (one per calendar year) • Single Vision • Bifocal • Progressives • Trifocal • Lenticular Frames Covered in full Covered in full Covered in full Covered in full Covered in full Up to $25 Up to $40 Up to $40 Up to $55 Up to $80 Covered in full after $10 copay Covered in full after $10 copay

Standard Plan
Covered in full after $10 copay Not covered

Up to $35 Not covered

Up to $35 Not covered

Covered in full after $20 copay Covered in full after $20 copay Discounts Covered in full after $20 copay Covered in full after $20 copay

Up to $25 Up to $40 Discounts Up to $55 Up to $80

Covered up to Up to $45 $150, after $10 copay (once every calendar year)

Covered up to $150, Up to $45 after $20 copay (one every two calendar years) Up to $210 for visually necessary Up to $105 for all others Not covered

Contact Lenses (in lieu of Covered in full up glasses frames and lenses to $150 — one per calendar year) Laser Vision Correction Varying discounts

Up to $210 for Covered in full up to $150 visually necessary Up to $105 for all others Not covered Varying discounts

Choose Well. Use Well. Live Well.


Flexible Spending Accounts
Flexible spending accounts allow you to set aside a portion of your pay, before payroll taxes are deducted, to use for qualified health care or dependent care expenses.
You must enroll for the flexible spending accounts if you wish to participate in 2011—even if you participated in 2010. It’s important to plan carefully when determining your contributions. In exchange for the tax advantages of flexible spending accounts, the IRS requires you to forfeit any unused money in your account at the end of the plan year. And, you can’t transfer money between accounts. Important note: Beginning January 1, 2011:
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only acceptable form of documentation for reimbursement for over the counter drugs and medicines is a doctor’s prescription or a receipt indicating the Rx number in addition to date purchased, purchaser, and amount. medical devices (crutches, blood sugar monitors, etc.) and items such as bandages, contact lens solution, denture bond, etc. will not require a prescription to be covered. health care debit cards, including WageWorks’ Card, cannot be used to purchase OTC drugs and medicines.

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Dependent Care FSA (Child Care Expenses)

Health Care FSA

You’ll get the greatest benefit from your Health Care FSA, if you consider this account as a supplement to your medical, dental, and vision plans. You can use the money in this account to cover out-of-pocket medical expenses for you and your family members. For example, the money in your FSA can be used to offset deductibles, coinsurance and copays for medical, dental and vision care. Because the money in your FSA is deposited before taxes are taken out, your income taxes are lower.

The Dependent Care Flexible Spending Account allows you to use tax-free dollars to reimburse yourself for dependent care expenses so that you can work. If you’re married, you can use the Dependent Care Flexible Spending Account if your spouse works, is disabled, or attends school full-time for at least five months during the year. The Dependent Care FSA covers child care expenses, such as daycare. It does not cover medical expenses for your dependents.


Choose Well. Use Well. Live Well.

Life and AD&D Insurance
As a full-time Serco employee, you automatically receive basic life and AD&D coverage equal to your annual base salary, up to $325,000. In addition, you can elect supplemental life and AD&D coverage for yourself, and supplemental life coverage for your spouse or domestic partner and/or dependent children. If you elect supplemental coverage for your spouse or dependent(s), you must also elect supplemental coverage for yourself equal to or greater than the spousal or dependent coverage. Children may only be covered by one parent, and a spouse/domestic partner is not eligible if they are also eligible for employee coverage through Serco. Your basic life and AD&D coverage also provides you access to beneficiary financial consulting through PricewaterhouseCoopers, travel assistance through Europ Assistance USA, and legal services through Ceridian LifeWorks. For more information on these benefits, visit

If you are already enrolled in employee supplemental life insurance coverage, at Open Enrollment you may increase your coverage by $10,000 up to the guarantee issue limit without Evidence of Insurability (EOI). The guarantee issue limit is the lesser of 10 times your base annual salary, or $230,000. The guarantee issue limit for Directors and above is the lesser of three times salary or $500,000. Any other increases or new enrollments will be required to provide EOI.

Choose Well. Use Well. Live Well.


Life and AD&D Insurance
Life and AD&D Coverage At-A-Glance
Coverage Type Employee Cost per $1,000 of Coverage (bi-weekly)
None Under 25 – $.023 25-29 – $.028 30-34 – $.037 35-39 – $.042 40-44 – $.060 45-49 – $.097 50-54 – $.162 55-59 – $.249 60-64 – $.328 65-69 – $.586 70-79 – $1.172 Same as employee rates $.08

The following chart highlights the types of coverage available, the cost of coverage, and coverage stipulations.

Coverage Amount, Stipulations

Employee Basic Life and AD&D Employee Supplemental Life

• Equal to annual base salary, up to $325,000 • Coverage is reduced to 50% at age 70 • $20,000 minimum, increments of $10,000 up to $1,000,000 • Guarantee Issue is $230,000, not to exceed 10 times base annual salary • For directors and above, the Guarantee Issue is the lesser of three times salary or $500,000 • All supplemental coverage is reduced to 50% at age 70

Spouse/Domestic Partner Supplemental Life Dependent Child(ren) Life

$20,000 minimum, increments of $10,000 up to 100% of employee’s supplemental life amount • $5,000 or $10,000 for children ages 14 days to 26 years • All child coverage is guaranteed • Coverage is 10% from age 14 days to six months

Employee Supplemental AD&D


• $20,000 minimum, increments of $10,000 up to $1,000,000 • All AD&D coverage is guaranteed • Coverage is reduced to 50% at age 70

Spouse/Domestic Partner Supplemental AD&D


• $20,000 minimum, increments of $10,000 up to 100% of employee’s supplemental AD&D amount • All AD&D coverage is guaranteed • Coverage is reduced to 50% at age 70

Dependent Child(ren) Supplemental AD&D


• $5,000 or $10,000 for children ages 14 days to 26 years • All AD&D coverage is guaranteed • Coverage is 10% from age 14 days to six months


Choose Well. Use Well. Live Well.

Disability Insurance
The financial impact of a disability can create enormous stress at a time when we should be focused on our health. Serco provides you with short-term disability (STD) and long-term disability (LTD) coverage, which replaces a percentage of your income in the event you are disabled and unable to return to work. Some contracts may offer the option of enrolling in STD and/or LTD. SCA employees will notice an increase in STD costs for 2011. Cost information can be found on

Disability Benefits At-A-Glance
Coverage Type Short-Term Disability Long-Term Disability Benefit

The chart below highlights the benefits and limitations of STD and LTD coverage.
Maximum Benefit 26 weeks Lesser of age 65 or normal Social Security age LTD benefits are reduced by the amount of other disability income you are eligible to receive, such as Social Security disability benefits Maximum Duration of Benefits

60% of base salary, beginning on the $1,500 8th calendar day of illness/injury per week 60% of base salary, beginning on the $10,000 180th calendar day of illness/injury per month

Each year during Open Enrollment, you have the option of paying the taxes on the premium that Serco pays for your long-term disability insurance. Typically this premium is added to your gross income and then you pay taxes on it. This way, your benefit if you are disabled is tax-free. You are automatically enrolled in this option unless you opt out. You can only opt out during Open Enrollment.

To help illustrate your options, let’s look at an example of an employee who earns $60,000 per year.
Normal Pay
Gross Annual Salary Gross Monthly Salary Federal Taxes (20%) State Taxes (6%) FICA Taxes (7.65%) Net Monthly Pay $60,000.00 Disability Benefit Rate x 60% Disability Pay w/ Taxes Withheld $36,000 $3,000 ($600.00) ($180.00) ($229.50) $1,990.50 Disability Pay w/out Taxes Withheld $36,000 $3,000 0 0 0 $3,000
$60,000.00 $132.00 $5.08 ($1.02) ($0.30) ($0.39) ($1.71)

Determining Future Tax Implications

$5,000.00 ($1,000.00) ($300.00) ($382.50) $3,317.50

To receive any future LTD benefit tax free, you must pay taxes now on the annual premium that Serco pays for your LTD insurance. So if this employee did not pay taxes on his/her benefit now but waited until later, his/her disability pay would be reduced by nearly one half ($1,990/month versus $3,000/month).

By electing to pay taxes on the LTD premium now, this employee would owe taxes (federal, state, and FICA) on an additional $5.08 of income each pay period. The $1.71 in additional taxes each pay period is a small price to pay for the risk of potentially losing 40% of your pay in the event that you would experience a long-term disability.

Gross Annual Salary LTD Annual Premium

LTD Per Payroll Premium Federal Taxes (20%) State Taxes (6%) FICA Taxes (7.65%) Additional Taxes Owed

Choose Well. Use Well. Live Well.


401(k) Plans
Serco 401(k) Plan
It’s never too early – or too late – to start saving for retirement. With your Serco Inc. 401(k) plan, you can put aside a percentage of your salary, before taxes, into a retirement savings account. And that’s not all – Serco will match part of your contributions to help you save! For 2011, Serco will match your contributions to the plan at 50% of the first 6 percent of your salary. The money you and Serco contribute to your 401(k) grows tax-free until it is withdrawn. In exchange for the tax incentives, the IRS puts limitations on the amount you can contribute annually to your 401(k). Additionally, there are penalties if you choose to withdraw money from your account before you reach age 59 ½. If you are age 50 or older, the IRS allows additional “catch-up” contributions. You don’t have to wait until Open Enrollment to enroll in or make changes to your 401(k). You can sign up and make changes at any time by contacting Diversified Investment Advisors, the Plan provider. Go to from any computer or Smartphone or call Diversified at 800-755-5801.


Choose Well. Use Well. Live Well.

Employee Assistance Program
Being healthy goes beyond physical exercise and eating right. Emotional wellness, strong personal relationships and positive attitudes are critical building blocks of health. At times, you may feel unable to resolve all the decisions, personal problems, family issues or career challenges you face. The Employee Assistance Program, offered through CIGNA Behavioral Health, can help you and other members of your household. Just call (877) 622-4327, or go to CIGNA’s website, The Employer ID is “serco.” Their skilled Member Personal Advocates are available 24/7 toll-free to offer:
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clinically-driven comprehensive needs assessment and caring assistance

Benefits are available for three, face-to-face counseling sessions for each condition.

Services Offered
Family Care • Adoption Prenatal Care • • Child Care • Summer Care • Temporary Back-up Care • Special Needs • Senior Care • Pet Care • At-Risk Adolescents Parenting • Personal Services • Legal • Financial Information Education • • Financial Services • Convenience Services Online Resources Access and Referral •  • Provider Directory • Self-Assessment •  Article Library • Awareness Series • Online Coaching • CIGNA Healthy Rewards® Program •R  eminder Messages •W  ork/Life

Choose Well. Use Well. Live Well.


Voluntary Benefits
Find Discounts Online Serco’s Group Long-Term Care Insurance

Serco employees can purchase laptop computers, digital cameras, theme park tickets, and more through the Serco Voluntary Benefit Links website! The one-stop shop features moneysaving opportunities to buy products and services you use every day — all at discounted prices. Participating providers include Dell, Bank of America, Quicken, Panasonic, Philips, Sharp, Kaplan, Barnes and Noble, Sony, 1-800-FLOWERS.COM, TicketsAtWork and many more. To visit the Serco Voluntary Benefits website, simply point your browser to No password, no ID, no hassle. Liberty Mutual and MetLife also provide employees with an opportunity to purchase auto, home, and other types of personal insurance online, often at significant savings. Convenient payment options include direct bill, bank draft, and payroll deduction. Throughout the year, you will be receiving information mailed directly to your home regarding these programs.

Serco’s group Long-Term Care insurance plan provides conventional nursing home coverage and coverage for services received in your home or other type of care facility. All Serco employees living in the United States are eligible to purchase Long-Term Care coverage. You can also purchase coverage for your spouse/domestic partner, parents/parentsin-law, grandparents/grandparents-in-law, adult children, and siblings/siblings-in-law of your spouse/domestic partner. If you do not enroll within 30 days of hire, you will need EOI to enroll. For more information, go to; username: serco; password:mybenefit.

Critical Illness Insurance Plan

Commuter Benefits

If you use public transit to commute to and from work, you may benefit from the Commuter Benefits program. There are separate post-tax limits for transit and parking benefits; however, you may elect to withhold more than the limits and pay taxes on the amount over the maximum. You can change or cancel your elections on a monthly basis by visiting as your commuting needs change.

If you are an active, full-time Serco employee who works over 30 hours per week, you can enroll yourself and your dependents in Critical Illness Insurance provided by MetLife. This plan provides lump-sum payments if you or your covered dependents require treatment for eligible conditions, such as cancer, heart attack, or kidney failure. You must enroll during Open Enrollment, or within 30 days of hire. For more information, visit To request an enrollment kit, contact MetLife at 1-800-GET-MET 8. Here are sample rates for Serco Inc. employees who selected $15,000 of coverage: Employee Age 32 37 42 47 52 57 Monthly Cost $ 1.46 $ 2.49 $ 4.50 $ 7.97 $12.81 $19.94


Choose Well. Use Well. Live Well.

Voluntary Benefits
Pet Assure Program

Unfortunately, our pets are as likely to become ill or to have an accident as any of our other loved ones and, in some cases, more so. That’s why Serco offers you the chance to manage the risk associated with your pet’s medical issues and receive discounts on pet products, supplies and services through Pet Assure. Choose from two levels of coverage — Pet Assure or Pet Assure Lite:

Pet Assure
Pet Assure ID Tag and 24/7 Lost Pet Recovery Service  et Service Coupons P (e.g. grooming and boarding) Pet Assure Discount Card for discounts at participating merchants and service providers  5% discount on medical 2 services at a Pet Assure Network Veterinarian Cost Per Pay Period l l

Pet Assure Lite
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l $3.58 $.92

Pet Assure accepts pets at any age, regardless of health condition.

Prepaid Legal Insurance Plan

You never know when legal issues can create serious problems in your life. Through ARAG’s UltimateAdvisor Prepaid Legal Insurance Plan, you’ll have access to the professional legal help you need to protect yourself and your loved ones from legal difficulties. UltimateAdvisor is easy to use and offers toll-free access to attorneys and financial advisors without prior approval at (800) 247-4184. Services include:
l Telephone l In-Office l Identity

Caring for an elderly adult is rapidly becoming a top issue for many Americans. SeniorAdvocate™ is a program through ARAG designed to provide you with access to the legal, financial and adult care assistance you need to help you care for your parents and grandparents, including:
l Telephone l Identity l Reduced l Financial

SeniorAdvocate™/Elder Care Program

Legal Services

Theft Services Fees for Network Attorneys and Tax Planning Services Living Services

Legal Services

Legal Services Assistance

Theft Services Planning and Tax Advice

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Additional details can be found at The cost for SeniorAdvocate™ is $3.92 per pay period.

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Legal Services

Additional details can be found at The cost for prepaid legal insurance is $8.54 per pay period.

Choose Well. Use Well. Live Well.


Resources At-A-Glance
For Questions/ Information About
Open Enrollment Serco Open Enrollment Solutions Center 8 a.m. to 8 p.m. ET, Monday through Friday CIGNA Kaiser HMSA CIGNA CVS Caremark CVS Caremark Specialty Pharmacy United Concordia

(888) 892-0487 within North America (703) 939-6010 outside North America (800) 244-6224 (800) 464-4000 (800) 776-4672 (800) 441-2668 (866) 407-5146 (800) 237-2767 (866) 851-7568 (click “find a dentist” and choose the “Concordia Advantage Plus” network) (800) 877-7195 (877) 622-4327 Employer ID: serco (800) 247-4184 (800) 247-4184 (888) 789-7387 (800) 638-2610 (800) 755-5801 (866) 293-6047 (877) 924-3967 (800) 647-8500 (800) 438-6388 (800) 859-0086

CIGNA U.S. Plans Kaiser Medical Plan HMSA Medical Plan CIGNA International Medical Plan Prescription Drug Benefits Specialty Prescriptions Dental Plan Provider Network for Employees in the United States and Puerto Rico Vision Plan Employee Assistance Program

VSP CIGNA Behavioral Health ARAG Group (800) 247-4184 ARAG Group Pet Assure ASI Diversified Minnesota Life WageWorks John Hancock MetLife Starbridge

Prepaid Legal Insurance Plan Elder Care Program Pet Insurance TRICARE Supplement 401(k) Plan Life and AD&D Insurance FSAs and Commuter Program Long Term Care Insurance Critical Care Insurance Part-time Benefits


Choose Well. Use Well. Live Well.

How to Enroll
Log on to enroll at Your password from last year’s open enrollment has been reset. For all users:
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If you don’t have Internet access, you can enroll by phone by calling (888) 892-0487 if you live in the U.S. or (703) 939-6010 if you live outside of the U.S. You’ll need to set aside at least 30 minutes if enrolling by phone.

login will be your employee ID; and

password will be the last six digits of your Social Security number. will be required to change your password once you log on. website legal disclaimer will appear. need to read the disclaimer and then click on Accept. - From this point, you can learn more about the benefits available to you or continue to make your elections. you’re finished, print your confirmation statement for your records.

Important Legal Notices

Certain legal notices are required annually to inform you of your rights under federal law. These notices are included as a separate insert to this newsletter.

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Choose Well. Use Well. Live Well.


This newsletter contains highlights of the benefit plans offered by Serco, Inc. Serco has made every effort to ensure this newsletter accurately reflects the plan documents and contracts. If there is a discrepancy between this newsletter and those documents or contracts, the documents, contracts or summary plan descriptions will take precedence.