Annual Guide for Participants under Age 65 in the 2018 Liberty Mutual Retiree Benefits Program

2018 Annual Enrollment Oct. 25 – Nov. 10

Please read this Guide for important information regarding your benefit coverages for 2018.

Visit Your Total Rewards website at: www.yourtotalrewards.com/libertymutual for more information and to enroll.

Important ChangeThis year, you will not receive a Personalized Enrollment Worksheet. All of the information that was on the worksheet provided last year is available between Oct. 25 – Nov. 10 on the Your Total Rewards website (www.yourtotalrewards.com/libertymutual) or by calling Benefits Express™. See contact information on the last page.

Annual Benefits Enrollment Is Oct. 25 - Nov. 10, 2017

As a participant in the Liberty Mutual post-retirement benefits plan, you have an annual

opportunity to review your medical, dental and/or life insurance coverage and make any

allowed changes. We encourage you to take a look at your coverage to make sure it’s still the

right fit for you and any family members who are not yet age 65 and eligible for coverage in

2018. Here’s what we ask that you review:

• Information about your plans as explained in this Guide.

• Eligibility of any dependent you have enrolled for coverage, (see Liberty Mutual’s

dependent eligibility requirements on page 5).

• The cost of your coverage for 2018 which is available beginning October 25 on the Your Total Rewards website (www.yourtotalrewards.com/libertymutual)

Eligible coverage changes may be made during this Annual Enrollment period.

If you do not have any changes to make for 2018, then no action is required.

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For Medicare-eligible Retirees Age 65 and Older:Liberty Mutual Insurance is changing how it provides health care coverage for Medicare-eligible retirees and their eligible dependents age 65 and older, beginning Jan. 1, 2018.

For retirees age 65 or older, current retiree health care coverage through Liberty Mutual’s group health plan is ending on December 31, 2017. To continue health care coverage (medical, prescription drug and dental, as applicable) with financial support (if eligible) from Liberty Mutual, Medicare-eligible retirees age 65 and older must purchase medical coverage through OneExchange on the Medicare marketplace. OneExchange is a nationally recognized organization that supports more than one million retirees receiving health care coverage through the Medicare marketplace.

Through the Medicare marketplace, retirees will have choices in the plans available to them and in what they pay for that coverage, giving retirees more control over their health care benefits and budget.

As you near age 65 and Medicare eligibility, OneExchange will reach out to you with information and support in transitioning to health coverage (medical, prescription drug and dental, as applicable) through the Medicare marketplace. (Benefits Express™ will not contact you.) You can contact OneExchange directly at 1-866-202-9582.

Any retiree life insurance benefit you may have is not affected by this change.

Example You and your eligilble dependent are currently younger than age 65. In August 2018, you turn age 65. At that point your Liberty Mutual group coverage will end and you will enroll for coverage through OneExchange on the Medicare marketplace in the weeks prior to reaching age 65. Your eligible dependent who is still yonger than age 65, however, will remain in the current Liberty Mutual group health plan until he or she turns age 65.

IMPORTANT! You must be enrolled in Medicare Part BYou must have Medicare Part B coverage to enroll in health coverage through the Medicare marketplace. Ninety days prior to reaching age 65, contact the Social Security Administration for information on enrolling in Medicare Part B coverage:

• Visit www.medicare.gov,

• Call Social Security at 1-800-772-1213, or

• Visit your local Social Security office.

For Current Medicare-eligible Retirees Under Age 65Retirees who are younger than age 65 and currently enrolled in a post-65 health plan option (medical with prescription drug or medical only) due to Medicare eligibility, will not transition to the Medicare marketplace. Rather, coverage for 2018 for you and any covered dependent will be the PPO Plan A option with prescription drug benefits through CVS/caremark. Medicare will remain the primary payer of health benefits for the Medicare eligible retiree. Impacted retirees received a letter in August notifiying them of this change to health plan coverage effective Jan. 1, 2018. (See page 6 for PPO Plan A coverage details.)

It is your responsibility to notify Benefits Express if any covered dependent becomes eligible for Medicare at any time before reaching age 65. Failure to report Medicare eligibility may significantly reduce the benefits paid by the health plan.

Note: For all health coverage options, benefits are not payable for services received outside the United States, other than emergency coverage while traveling.

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Your Health Plan Administrators’ SitesThe Your Total Rewards website has links to UnitedHealthcare and CVS/caremark websites where you can access your online Explanation of Benefits, provider network and benefit coverage information. If you visit these sites through the Your Total Rewards website, you won’t need to remember separate log-in information.

Log on to the Your Total Rewards website beginning October 25 to view all of your 2018 coverage options and cost. More information is available within the Health Plan Comparison Charts that you can find in the Your Total Rewards website, your online resource for Liberty Mutual plan information.

For enrollment assistance, please call Benefits Express at 1-800-758-4460. Representatives are available Monday – Friday, 9:00 a.m. – 5:00 p.m. ET.

Beginning October 25, if you want to view or make changes to your benefits for 2018, visit the Your Total Rewards website (www.yourtotalrewards.com/libertymutual).

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Dependent Eligibility Reminder

Only dependents who meet the eligibility requirements may be enrolled in Liberty Mutual benefit plans.

Eligible dependents include:

• Your legally married spouse of the same or opposite sex (the plan does not allow dependent coverage for a former spouse, even if a court mandates that you provide coverage)

• Your domestic partner

• Your dependent children

Your child is eligible for coverage if he or she meets the plan’s criteria for a dependent child, as detailed in each plan’s Summary Plan Description available within the Your Total Rewards website. In summary:

• Your biological child (this does not include a child for whom your parental rights have been legally terminated)

• Your legally adopted child (or child who has been placed for adoption)

• Your stepchild, including the child of your same-sex spouse

• Your eligible foster child

• A child for whom a court order of custody or legal guardianship has been obtained

If a child does not meet the above criteria, he or she is not eligible for coverage under the Liberty Mutual benefit plans.

Review Your BenefitsTake the opportunity during this year’s Annual Enrollment period to review the information shown in the Your Total Rewards website to ensure that only eligible dependents are enrolled for coverage. Keep in mind that when you elect coverage for a dependent, you are certifying the eligibility of that individual based on the definition of a dependent as outlined in the applicable Summary Plan Description.

If you knowingly enroll an ineligible dependent or continue coverage for an individual who does not meet the dependent eligibility requirements (for example, a child age 26 or older or a former spouse after a divorce), this may result in termination of coverage for you and any enrolled dependents. When you cover a dependent through the Liberty Mutual benefit plans, you are also agreeing to provide the required dependent eligibility documentation, if requested.

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Health Plan Option Overview for Retirees Under Age 65

Your Health Plan Option At-a-GlanceYour medical coverage is provided through a national network Preferred Provider Organization (PPO) that has a network of providers who have contracted with the claims administrators on the cost of services. If you choose to use a provider outside of the network, your share of the costs is higher.

The annual in-network deductibles and out-of-pocket maximums remain:

PPO Plan Option In-Network Deductible In-Network Out-of-Pocket Maximum

In-Network$400 individual$800 retiree and dependent$1,200 family

In-Network$1,500 individual$3,000 retiree and dependent$4,500 family

Plan A

In-Network$600 individual$1,200 retiree and dependent$1,800 family

In-Network$2,000 individual$4,000 retiree and dependent$6,000 family

Plan B

In-Network$1,000 individual$2,000 retiree and dependent$3,000 family

In-Network$2,750 individual$5,500 retiree and dependent$8,250 family

Plan C

In-Network$600 individual$1,200 retiree and dependent$1,800 family

In-Network$3,000 individual$6,000 retiree and dependent$9,000 family

PPO (retired on or after 1/1/2016)

For Plans A, B and C the out-of-network deductibles remain at $1,500 individual/$3,000 retiree and dependent/$4,500 family. The out-of-network maximums remain at $4,000 individual/$8,000 retiree and dependent/$12,000 family. For the PPO, the out-of-network deductible remains at $1,500 individual/$3,000 retiree and dependent/$4,500 family. The out-of-network maximum remains at $5,000 individual/$10,000 retiree and dependent/$15,000 family.

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Looking for a provider in the UnitedHealthcare network? Visit myuhc.com or call UnitedHealthcare at 1-844-LIB-MUT4 (1-844-542-6884) to find a doctor. You may also visit the Your Total Rewards website (www.yourtotalrewards.com/libertymutual) and link to UnitedHealthcare through the Quick Links section on the home page.

Prescription Drug Coverage for the PPO Options

If you’re enrolled in one of the health plan options, your coverage for prescriptions is provided through CVS/caremark. Some of the features of the CVS/caremark program include:

• Pay the lower mail-order price when you fill your 90-day maintenance prescriptions at a CVS retail pharmacy.

• Receive a 20% discount on CVS health-related brand items at CVS pharmacies.

• New for 2018 — When you visit a CVS MinuteClinic® for urgent care (e.g., treatment for a sore throat or getting a routine vaccination), if available in your area, or wellness services (e.g., diabetes education or counseling), you will pay lower out-of-pocket costs.

• There will be some changes to the prescription drug formulary (the list of covered medications), beginning Jan. 1, 2018. If you are currently taking a medication that is affected by the formulary changes, CVS/caremark will send you personalized communications about the change later this year.

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Reaching age 65 in the coming year?If you (or an eligible dependent who is enrolled in the Health Plan) are celebrating your 65th birthday soon, you’ll be contacted by OneExchange to elect health care coverage (medical, prescription drug and dental, as applicable) on the Medicare marketplace. OneExchange will send you several notifications – 12 months, 9 months and 6 months before your 65th birthday – and mail an Enrollment Guide to your home 90 days before your 65th birthday.

If you or an eligible dependent enrolled in the health plan become eligible for Medicare for any reason other than turning age 65, please call Benefits Express at 1-800-758-4460 and let the representative know. You can reach a Benefits Express representative Monday – Friday, 9:00 a.m. – 5:00 p.m. ET. It is important to call as soon as Medicare eligibility is determined, so that your coverage can be updated. Not reporting Medicare eligibility for a covered dependent can significantly impact claim payments.

Liberty Mutual Annual Enrollment: Oct. 25 – Nov. 10, 2017

2018 PricingYou and Liberty Mutual continue to share in the cost of your health coverage, based on factors such as your years of eligible credited service with the company, the cost-sharing “cap” in place for retiree coverage, as well as your retirement date. Your Health Plan Summary Plan Description, available within the plan information section of the Your Total Rewards website, has additional details.

Wellness CoachingLiberty Mutual will no longer be offering the StayWell Online® portal to Health Plan participants after Dec. 31, 2017. In 2018, Liberty Mutual pre-65 retiree Health Plan participants will have access to Wellness Coaching via UnitedHealthcare/Optum, over the telephone and online. For more information, after Jan. 1, 2018, contact UnitedHealthcare at 1-844-542-6884 or online at www.myuhc.com.

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Other Post-Retirement Benefits

Dental — Retirees Younger than Age 65There are no plan changes to the Liberty Mutual Retiree Dental Plan for 2018.

If you are enrolled in coverage, your 2018 monthly price tags are shown in the Your Total Rewards website.

Life InsurancePrice tags for Liberty Mutual Retiree Life Insurance in 2018 will not change.

Keep in mind that rates increase at certain age levels: the older you are, the more expensive your coverage will be. Also remember that your retiree life insurance coverage reduces according to your reduction schedule.

Note: If you have life insurance coverage, the “value” of any group term life insurance amounts greater than $50,000 is considered to be taxable income under the Internal Revenue Code (IRC). The value of any company-paid benefit over the $50,000 IRC limit will be included in your taxable income.

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Eligible Status Changes

In certain circumstances, such as divorce, legal separation or your dependent child reaching age 26, you are required to drop those dependents from your Liberty Mutual coverage. In other cases, such as marriage or the birth or adoption of a child, you may be eligible to add your family member to your coverage.

If you have elected retiree Health and/or Dental Plan coverage, eligible status changes include:

• You may change your coverage category and enroll your spouse or domestic partner if he or she has involuntarily lost coverage under his or her employer’s plan and has no other group coverage available. Your spouse or domestic partner’s retirement is not considered to be an involuntary loss of coverage.

• You may change your coverage category if you marry or enter into a domestic partnership. You may enroll your spouse or domestic partner and any eligible dependent children.

• You may change your coverage category if one of your covered family members dies.

• You must change your coverage category if you divorce or end your domestic partnership and your spouse or domestic partner was enrolled in the Liberty Mutual benefit plans. You must notify Benefits Express within 60 days of the date of the divorce or end of the domestic partnership, as former spouses and domestic partners are not eligible dependents under the Health and/or Dental Plans. Your former spouse or domestic partner may be able to continue coverage for a certain period of time through COBRA, but you must call Benefits Express within 60 days of the divorce or end of the partnership in order for COBRA to be available.

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Understanding Your Coverage

Understanding how your plan works, what services are covered and what your share of the costs will be is an important part of becoming an educated health care consumer. The following resources are available to you for more information:

• The Your Total Rewards website is where you can find your Summary Plan Descriptions, which contain the details about your coverage, as well as your Health Plan comparison charts which highlight key information about your plan. You can also link from the Your Total Rewards website to the UnitedHealthcare website to search for in-network providers.

• Your claims administrator can also help you with questions that you may have about your coverage. You can find the telephone number on your ID card or on the last page.

• Has your doctor recommended non-emergency services and you’re looking for information on the cost of those services? Did you know that prices can vary signifigantly for the same services in any geographic area? You can access the Health Care Bluebook website at https://www.healthcarebluebook.com for information on the cost of services in your geographic area.

• Considering changing your coverage? Make sure you understand the following:

- If you are enrolled in the Health Plan and choose No Coverage for 2018, you may not re-enroll in the Liberty Mutual Health Plan at any time in the future.

• NEW! Are you or a covered dependent turning age 65 soon? If so, several months before you and/or your eligible dependent reaches age 65, you will be contacted by OneExchange. You will be able to choose new coverage (medical, prescription drug and dental coverage, if applicable) through the Medicare marketplace with financial support (if eligible) from Liberty Mutual, provided you elect your coverage through OneExchange. Your current group health care coverage (medical, prescription drug and dental coverage, if applicable) for you or your eligible dependent will end upon reaching age 65. Your life insurance benefit, if applicable, will continue unchanged. A OneExchange benefit advisor will help you enroll for coverage and be available to provide support during the year. You can contact OneExchange directly at 1-866-202-9582.

Note: If you or a covered dependent becomes eligible for Medicare before reaching age 65, please call Benefits Express at 1-800-758-4460 as soon as this happens so your coverage can be updated.

This guide provides an overview of the Liberty Mutual Insurance Retiree Benefits Program. Complete information about our Retiree Benefits Program is included in the legal documents for each plan. As always, if there are discrepancies between this guide and the legal documents, the legal documents will govern. The Company reserves the right to change or terminate any plan, the terms of any plans, or cost-sharing arrangement at any time.

Liberty Mutual – Fall 2017 Printed in U.S.A. AE Retiree Guide

Contact:

For enrollment assistance, please contact:

Benefits Express™ at 1-800-758-4460, Monday – Friday, 9:00 a.m. – 5:00 p.m. ET, except on holidays. Have your Benefits Express user ID and password handy when you call.

The Your Total Rewards website at: www.yourtotalrewards.com/libertymutual is also available 24 hours a day, 7 days a week except between 2:00 a.m. – 1:00 p.m. ET on Sundays.

Call Benefits Express™ at 1-800-758-4460, Monday – Friday, 9:00 a.m. – 5:00 p.m. ET, except on holidays.Have your Benefits Express user ID and password handy when you call.

Call the toll-free telephone number on the back of your identification (ID) card:

UnitedHealthcare at 1-844-LIB-MUT4 (I-844-542-6884)

Call the toll-free telephone number on the back of your identification (ID) card:

CVS/caremark Customer Care at 1-888-562-3784

Call Delta Dental at 1-888-43DELTA (1-888-433-3582)

Liberty Mutual Insurance Auto and Homeowner’s Insurance:Contact your local Personal Sales Representative or call 1-800-981-2372

Call Safeco Insurance Group Plan: 1-888-824-4223

Call John Hancock: 1-800-440-4740

Call OneExchange: 1-866-202-9582

For help with:

Changing coverage, enrollment questions, updating dependents or beneficiaries, etc.:

• Retiree Health Plan• Retiree Dental Plan• Retiree Life Insurance Plan

Pension check or 401(k)-related questions, etc.:• Retirement Benefit (pension) Plan• Liberty Mutual 401(k) Plan

Health Plan Coverage or Claims Questions

Prescription Drug or Related Questions

Dental Plan Coverage or Claims Questions

Voluntary Benefits Questions (auto and homeowner’s insurance)

Grandfathered Long-Term Care Plan Questions

Health and Dental Coverage and Related Questions at Age 65

Who to Contact for Assistance