The Employee Handbook

The Employee Handbook is a compilation of Company policies, office procedures, self-development

guidelines, miscellaneous services, and benefits. It is designed as a resource for employees of Liberty
Mutual Group Inc. and/or its subsidiaries and affiliates (Liberty Mutual or Liberty or the
Company) who work in the United States.
This handbook is not and should not be considered an employment contract. It outlines for
employees the general duties and responsibilities; it is not intended to alter the at-will employment
relationship between Liberty and any employee. At-will employment means that an employee may
end his or her employment at any time for any reason, and that the Company similarly may dismiss
an employee at any time with or without cause or notice.
Occasionally, business units may have the need for procedures to meet their own operating
requirements that take precedence over these general ones. If a question comes up about any
handbook information, ask your manager. The Company is the final judge of the meaning of its
policies and procedures.
Although the Company normally will endeavor to adhere to the policies expressed in this handbook,
it does not promise to do so, and those policies should not be construed to create any contract of any
kind. The Company departs from its handbook policies from time to time in the normal course of
business, and it reserves the right to do so in any circumstances, for any reason, or for no reason at
all. Further, to meet its ever-changing needs, the Company makes no promises about how long or if
any policies or procedures will be maintained. Modifications may be made without notice at the
Company's discretion.
Our policy is to treat all employees honestly, equitably and objectively. We will strive to provide
challenging opportunities and help each employee reach his or her potential. Liberty Mutuals
enviable history of growth and achievement has resulted largely from the efforts of our people who
are free to work and develop their professions without union or third-party pressure. We believe it is
in the best interests of the Company and the employee to deal directly with each other. While
operating within the framework of existing labor laws, we will firmly resist efforts by outside forces
to intervene.

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Conduct Policies and Expectations

The Companys Conduct Policies and Expectations include, but are not limited to the following:
Equal Employment Opportunity and Anti-Discrimination Policy
One of Liberty Mutuals fundamental principles is to treat all people including customers, coworkers and the public at large with dignity and respect. This means that Liberty Mutual supports
and embraces an environment that is free from all discrimination in the workplace, in its business, or
by its vendors.
Liberty Mutual is an equal opportunity employer. The Company will not tolerate discrimination on
the basis of race, color, national origin, sex, sexual orientation, gender identity, religion, age, disability,
veterans status, pregnancy, genetic information or on any basis prohibited by federal, state, or local
law. This policy applies to all aspects of employment with Liberty Mutual, including recruiting,
hiring, placement, training, promotion, transfer, discipline, termination, compensation, and benefits.
No employee or applicant will suffer reprisals for raising good faith complaints of unlawful
employment discrimination
Liberty Mutuals anti-discrimination policy is based on our commitment to provide an inclusive
workplace that reflects the communities in which we work and live. Our policy of employing people
without regard to their differences, giving them all the opportunity to succeed and rewarding them
based on their performance is a guiding principle that is central to the Companys ability to service its
policyholders and achieve its goals. It is a reflection of Liberty Mutuals commitment to strive to do
the right thing, always.
Harassment
At Liberty Mutual, we are committed to maintaining a working environment free of unlawful
harassment so that each of our employees can focus on achieving his or her business objectives. In
addition to sexual harassment, which is prohibited by law, Liberty Mutual prohibits harassing
comments, conduct or other behavior based on any characteristic protected by federal, state or local
employment discrimination law. Racial slurs, derogatory comments of a sexual nature, or similar
offensive conduct violate the Companys Harassment and Equal Opportunity policies. This policy
extends to vendors, independent contractors, customers and others doing business with the
Company.
Sexual Harassment Defined
The following conduct constitutes sexual harassment:
unwelcome sexual advances;

requests for sexual favors;

other verbal or physical conduct of a sexual nature, such as graphic remarks about an
individual's body, sexually degrading words referring to an individual, offensive comments,
offensive jokes, sexual innuendo, or displays of sexually suggestive objects or pictures
(including but not limited to sexually explicit e-mail, websites, graphics or similar
downloaded material), when:
o the employee's submission to the conduct is an express or implied condition of
employment;

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o
o

the employee's submission to or rejection of the conduct is used as the basis for
employment decisions affecting the employee; or
the conduct is intended to or does interfere substantially with the employee's work
performance or create an intimidating, hostile or offensive working environment.

What To Do If You Believe That You Are The Victim of Harassment

If you believe that you have been the victim of sexual or other harassment in violation of Company
policy, you should notify your manager or one of the following individuals who will arrange for a
discreet prompt, thorough and impartial investigation of your complaint:

The highest ranking department manager in the division, region, or area

Human Resources Manager or Human Resources Representative (SBU/Department)

Director of Corporate Employee Relations

When an investigation indicates that harassment has occurred, the Company will take appropriate
corrective action, including, but not limited to, giving the harassing employee a warning or an unpaid
disciplinary suspension or terminating his or her employment. It is both unlawful and a violation of
Company policy to retaliate against an employee for filing a complaint of unlawful harassment or for
cooperating in such an investigation. Please note that the Company's Harassment policy does not
limit our authority to take disciplinary or remedial action in response to workplace conduct which we
deem unacceptable, regardless of whether that conduct satisfies the definition of sexual or other
harassment.
External Complaint Process: The U.S. Equal Employment Opportunity Commission (EEOC)
enforces the federal laws prohibiting sexual and other types of harassment, and various state agencies
enforce state laws prohibiting sexual harassment. For more information about the federal, state or
local laws pertaining to sexual or other harassment or the complaint-filing procedures, refer to the
equal employment opportunity notices posted on your office bulletin board.
Behavior Expectations
As a Liberty Mutual employee, you are expected to always exhibit appropriate behavior and a high
degree of integrity. Although it is impossible to provide an exhaustive list, you are also expected to:

observe Company policies, procedures, and safety rules;

recognize and respect the rights of co-workers;

treat all customers with respect, handle inquiries promptly and courteously; and

be honest in your dealings at work and abide by national, state, and local laws.

The Employee Handbook deals with various aspects of professional conduct, but it is not a
comprehensive list. Should your performance, work habits, conduct and demeanor become
unsatisfactory in the Companys sole judgment and discretion based on violation of this or any other
Company policy, you will be subject to disciplinary or other job action, up to and including
termination of employment.

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Ethical Standards and Reporting Misconduct

As a Liberty Mutual employee, you are expected to adhere to acceptable business practices and high
ethical standards whenever and wherever you act on behalf of Liberty.
The Code of Business Ethics and Conduct (link) (the Code) further defines appropriate standards
of business conduct. The Code reflects the basic expectation that we always act with honesty and
integrity in our work for Liberty. All employees are required to follow the Code as well as
department protocols and procedures. Failure to comply with Company policies, including but not
limited to the Employee Handbook, the Code and department protocols may lead to disciplinary
action, up to and including termination of employment.
Misconduct may include: conflicts of interest, violations of statutes or regulations, antitrust
violations, and theft, sabotage, misuse or vandalism of Company property. If you become aware of
misconduct by other employees or entities working with the Company, you should report this to the
Compliance Helpline (for Compliance or Code issues), Corporate Internal Auditing (for financial
issues) or Corporate Employee Relations or your human resources representative (for
employment-related issues). All employees have a responsibility to not only speak up, but also to
maintain and reflect the values and ethical guidelines presented in the Code.
Liberty Mutual is serious about non-retaliation. The Company will not allow any retaliation against
you for reporting an honest concern or asking for compliance help in good faith.
Conflicts of Interest
All employees are required to conduct their personal and business affairs in such a way as to avoid
conflicts -- or even the appearance of conflicts -- with the interests of the Liberty and its customers.
Although the principles below apply primarily to employees, you must also exercise care to avoid
actual or potential conflicts of interest that might arise because of the activities of your family
members or other members of your household.
A conflict of interest arises when an activity or personal relationship interferes with our responsibility
to the Company.
Internal Conflicts
Employees may not directly supervise the activities of or approve salary recommendations
for their relatives, non-relatives residing in their household, or other employees with whom
they are romantically involved without approval from a manager two levels up. For purposes
of this business/personal relationships policy the term "relatives" includes: spouse/domestic partner,
parent, grandparent, brother, sister, daughter, son, mother-in-law, father-in-law, daughter-in-law, sonin-law, brother-in-law, sister-in-law, aunt, uncle, niece, nephew, grandson, granddaughter, stepson,
stepdaughter, stepparent, foster parent, legal ward and guardian.
When any other personal relationships become incompatible with professional practices, the
Company may adjust the work environment to protect overall working relationships and its own
business interests.
If you have questions about the policy, or believe it may apply to you, please contact your manager or
your Human Resources Manager (SBU/Department).

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External Conflicts
Employees may not conduct business on behalf of Liberty with their relatives or close
personal relations. Conducting business on behalf of Liberty with outside parties who are relatives
or close personal relations can create a conflict of interest and is not permitted without prior
approval from the Office of Corporate Compliance.
Employees may not use their affiliation with Liberty Mutual for personal benefit. Examples of
such prohibited activities include employees receiving payment, gifts, entertainment or other
compensation from any entity performing work or services for the Company or from any entity
which is seeking to do business with the Company. Gifts, favors or honorariums of nominal value
that are generally considered as common business or social courtesies are acceptable only as long as
they are reasonable in type, frequency and value.
Employees may not hold outside positions which interfere with job performance. While most
Liberty Mutual departments do not prohibit their employees from "moonlighting," you should not
hold an outside position in any business, trade, civic, governmental or social association which
because of time obligations or subject matter impairs you from fulfilling your job responsibilities. In
addition, you may not be employed by or affiliated with a competitor.
Employees have an ongoing responsibility to disclose actual and potential conflicts. Libertys
Code of Business Ethics and Conduct contains additional detail regarding Conflicts of Interest. For any
questions about whether a business relationship, gift, outside employment or other matter poses a
conflict of interest or to request a Disclosure and Certification statement, employees and managers
should contact the Office of Corporate Compliance or the Compliance Hotline.
Drug-Free Workplace
It is Liberty Mutuals intent and obligation to provide a drug-free healthful, safe and secure work
environment for all employees.
The unlawful manufacture, distribution, dispensation, possession, solicitation, or use of a controlled
substance on Company premises or while conducting Company business off Company premises is
prohibited. Any employee violating the prohibition will be subject to disciplinary action which may
include suspension without pay or termination and may have legal consequences.
Liberty Mutual recognizes drug dependency as an illness and a major health problem. It also
recognizes drug abuse as a potential health, safety, and security problem. Employees needing help in
resolving drug-related problems are encouraged to contact our Employee Assistance Program at 1866-808-2815 and use Liberty Mutuals health insurance plans as appropriate.
As a condition of employment, employees must abide by the terms of this policy, and must report to
their managers within 5 days of any conviction for a state or federal drug offense occurring on
Company premises or off Company premises while conducting Company business. Where state law
imposes more stringent reporting requirements (in Florida, for example), employees receive notice of
and must abide by the state reporting requirements.

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Corporate Credit Card

If you travel on Company business, you may be issued a corporate credit card. This card should only
be used for reasonable, business-related expenses consistent with the Corporate Travel Policy.
Reimbursement for charged business expenses should be paid directly to the credit card company.
Personal use of the corporate charge card or non-payment of a charged business expense is
prohibited and may result in disciplinary action, up to and including termination of employment. For
more information, refer to the Corporate Travel Policy.
Employee Photographs
Employee photographs may be used for various purposes at Liberty Mutual. The Liberty photo
identification card (badge photo) provides a consistent, recognizable standard across all U.S. offices.
Photo ID cards are issued to all domestic employees. Employee photographs may also be used in
certain system applications (e.g., e-mail and other collaboration tools) and in internal communication
vehicles such as newsletters. For applications that allow you to upload your own photo, the photo
must be professional in nature and appropriate for business use. Some applications have specific
guidelines regarding photographs or images that should be followed. Employee photographs are
considered confidential information and should be treated as such. Any misuse of employee
photographs, including unauthorized copying or sharing of photos, is prohibited and may result in
disciplinary action, up to an including termination of employment.
Privacy and Treatment of Confidential Information
Policyholders, customers, claimants and employees trust Liberty Mutual with their personal
information. During your employment, you may have access to confidential information, such as
non-public personal information of policyholders and employees, commercial customers financial
and operational data, and proprietary business processes. You have a responsibility to safeguard the
information collected and used to support the Companys business from unauthorized disclosure.
Confidential information can only be shared with authorized employees and non-employees on a
need-to-know basis. Liberty Mutual will not share personally identifiable information with nonaffiliates unless authorized to do so by the customer or claimant, or where specifically required or
permitted by law. You are prohibited from using or sharing personal information obtained through
your Liberty Mutual employment for personal gain or for the benefit of others.
Under the Minnesota Wage Disclosure Protection law, you have the right to tell any person the
amount of your own wages. Your employer cannot retaliate against you for disclosing your own
wages. However, this law does not require you to tell anyone about your wages, and it does not
permit you to share the Companys proprietary information, trade secret information, or information
that is otherwise subject to legal privilege or protected by law. Your remedies under the Wage
Disclosure Protection law are to bring a civil action against your employer and/or file a complaint
with the Minnesota Department of Labor and Industry.
For additional information, please refer to the Privacy section of the Office of Corporate
Compliance website.

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Personnel Information
The Company maintains personnel records (for example, employment applications, performance
appraisals, and other job-related information) for all employees. The Company has established
guidelines in compliance with state law as to what information should be in a personnel file, and who
may have access to that information. These guidelines provide that the Company will:

only collect and maintain information about you for employee relations or legal reasons;

limit access to those with a legitimate reason to know; and

provide you, upon written request to your manager, with the opportunity to review your
personnel file. This review is made in the presence of your manager. If you disagree with any
information in your personnel record and the Company does not change or remove it, you
may submit your comments in a written statement to be inserted in your file.

Liberty Mutual recognizes its obligation to treat employee information in a confidential manner.
Managers may not write letters of recommendation or give negative employment references about
present and former employees. In states authorizing the provision of service letters to employees,
managers will furnish such additional information as state law requires.
Mortgage, credit and employment verification requests are handled by The Work Number.
Management and Ownership of Business Records
At Liberty, employees routinely create business records. You are responsible for identifying,
maintaining, safeguarding and destroying paper and electronic business records within your control.
Business records, both paper and electronic, must be retained in accordance with the Companys
Records Retention Schedule. Records may not be kept longer than, or disposed of prior to, the
retention periods listed in the Records Retention Schedule. All information stored in a workspace,
on computers, mobile devices or portable/removable drives must be managed accordingly.
Business records created by employees, consultants, and independent contractors in the course of
performing business activities for the Company are business assets and the exclusive property of the
Company, not the individual. Upon separation from the Company, you must transfer care, custody
and control of all business records to your immediate manager.
Occasionally, the Legal Department may issue a Legal Hold, which suspends the destruction of
records related to an actual or anticipated legal action involving the Company. If you receive a Legal
Hold Notice, you must preserve all records relevant to the hold.
For more information on managing the Companys business records, legal holds and available
records compliance tools, visit the Records and Information Compliance website.

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Trade Secrets
A trade secret is information that gives its owner a competitive edge and is not generally known
within the industry. Our innovative business practices and ideas are valuable and contribute directly
to our profitability. As such we protect the Companys trade secrets. We also protect the trade
secrets that our customers and business partners entrust to us in the course of doing business with
them. If you reveal a trade secret to others, you and the Company could be held liable for resulting
financial losses.
The Company expects you to only use or disclose Company Trade Secret Information or other
confidential information with appropriate permission and as required in the ordinary course of
performing your job and to maintain the confidentiality of Company Trade Secret and other
confidential information.
Invention Ownership and Assignment
During your employment you may conceive of inventions, improvements, developments, ideas or
discoveries (Inventions). All Inventions, including anything that may be patentable, copyrightable,
trademarked, and/or a trade secret shall be the sole and exclusive property of the Company, except
as expressly prohibited by law. You irrevocably assign to the Company, any rights you may have or
acquire in such Inventions. You are expected to cooperate with the Company and to take any and all
reasonable steps necessary to perfect the Companys ownership in such Inventions or other
intellectual property rights, including but not limited to executing applicable assignments to the
Company.
Copyrighted Material
Unauthorized copying, distribution and use of copyrighted material is illegal and can expose you and
Liberty Mutual to civil and criminal liability. Materials subject to copyright include journals and
articles, film, music, photographs, computer programs, and other modes of expression. Only use
copyrighted materials in your work for Liberty with appropriate permission.
For additional information, refer to the Company Policy on Copyrighted Material.

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Corporate Technology and Other Resources

Corporate Technology Resources
Technology resources are critical to the Company and allow us to manage our business in a more
efficient and effective way. Inappropriate use of these resources can negatively affect overall
business results. Adhering to the following policies will help protect the Companys technology
investment.
Electronic mail systems are to be used for Company business. Appropriate usage of our electronic
mail system is governed by the following:

Employees are expected to use business etiquette when sending e-mail to others. Use of
inappropriate language or graphics is prohibited.

Employees must be careful when addressing e-mail, especially when delivering confidential
information. Be aware that Liberty's Global Address List contains names of clients and
vendors as well as internal employees.

Broadcast messages must be reviewed and approved in advance by the local Office
Operations Manager (OOM) or Home Office Tenant Services.

Employees may not use software and hardware other than that specifically approved by the
Company for use on its computer systems. This includes: attached devices, additional screensaver
programs or graphics; personal photos that have been scanned; third-party internet providers; and/or
software applications that have not been approved for Company use.
All employees are prohibited from downloading multimedia files (e.g., MP3, WAV), applications, or
similar files. Employees entrusted with Developer-support Access may not download, install, or add
unauthorized software/hardware. Employees may not store any business data to personal devices
including but not limited to any device approved under the Bring Your Own Mobile Device
(BYOMD) program. The Bring Your Own Mobile Device User Agreement provides expectations
regarding Company data on personal devices.
Viruses are malicious software programs that can damage your computer and jeopardize critical
Company resources. All Liberty computers come with anti-virus software. Anti-virus software must
never be deleted or "turned off."
Use of the Internet via the Liberty Mutual network is intended for business use. Company provided
Internet access is not to be used to access social media sites (such as Twitter, Facebook, LinkedIn,
Pinterest, and YouTube) for solely personal purposes. If social media sites are used for Liberty
Mutual business, such use must comply with applicable Company policies and guidelines. Internet
sites visited by employees while using Company equipment and systems are logged and may be
accessed by the Company.
Company information systems may not be used for knowingly transmitting, retrieving or storing any
communications or information unrelated to the Companys business, including anything which
would be considered derogatory by any individual or group or otherwise inappropriate in a business
setting or contrary to the Companys interest.
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Access to and Protection of Corporate Systems and Data

Because information systems are provided for business use, communications sent over Company
systems are not private. Business data created or accessed by any authorized user or system remains
the property of the Company. The Company reserves the right to access all of its records, systems
and property. This includes the Companys right to any electronic information stored on Company
systems and equipment, including mobile devices, personal devices enrolled in the Bring Your Own
Mobile Device program, computers assigned to individual employees and electronic mail
communications retained on the Companys system. The Company may also grant access to those
outside the Company where appropriate.
Every employee should also be aware of the provisions and expectations highlighted in Liberty
Mutuals Information Security Policy.

Workstation Access and Other Corporate Resources

You may store personal items in or at your desks, workstations, or cabinets with the understanding
that this practice does not in any way restrict the Company's right to access or examine the contents
of these pieces of Company property.
The Company expects that you will not misuse corporate resources entrusted to you or abuse the
benefits available during your employment. You should:

use Company equipment and materials (e.g., telephones, photocopiers, and facsimile
machines) only for Company business.

maintain accurate records and abide by corporate policies concerning reimbursable expenses
and eligibility for all Company benefits, including time off, education, and disability
payments.

Telephone Monitoring
Because Company telephones and other equipment that facilitate voice-based communications (such
as Microsoft Lync) are provided exclusively for business use, communications made using such
devices are not private. The Company may, at its discretion, monitor and/or record business
conversations.

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Social Media Policy

Generally, employees are free to do what they want on their own time. However, some activities in
an employees personal life may impact job performance, the performance of other employees
and/or the business interests of the Company. Many employees participate in blogs, chat rooms,
Internet forums, Wikis, Facebook, Twitter and other social networking communications whether for
personal or business-related reasons. This policy applies to all employees of Liberty Mutual Group
Inc. (and certain subsidiaries) who work in the United States and relates to their activity using both
internal and external (i.e., public facing) social networking communications, whether at work or on
their own time. The term social networking communication includes any form of electronic
communication that utilizes any form of networking forums/platforms including, for example:

Multi-media and social networking forums or platforms such as Facebook, LinkedIn,

YouTube, Pinterest, and Twitter;
Message boards, Wikis, weblogs (blogs), and any other website or forum where text
can be posted; and
Collaboration tools and software such as file/data-sharing forums or platforms,
including Liberty Connect, Yammer, docstoc.com, and scribd.com.

There are many ways that employees can utilize social media, from purely personal on one end of the
spectrum to purely business-related on the other. This policy applies to all of the ways in which
employees may be using social media, including, for example:

Use of personal Facebook pages or blogs while at home;

Use of Yahoo! and Google message boards or Twitter while at work;
Authorized use of the Liberty Mutual-sponsored Facebook page; and
Use of Sharepoint, Liberty Connect, and Microsoft Lync while at work using a Company
device, where there are discussions and information sharing related to work.

Please note that the Company utilizes resources to review sites to ensure appropriate use of social
media by its employees and compliance with this Policy. Whether you use social media for personal
or business purposes, please familiarize yourself with the following:
1. Review and follow the Companys policies in the Employee Handbook, the Code of
Business Ethics and Conduct, and the Connect Usage Guidelines on the Connect page.
2. Never disclose on an external site any non-public personal information (NPPI) or internal,
confidential or proprietary information regarding the Company, its customers, claimants,
policyholders, partners, or employees. Do not share this type of information while engaged
in work-related communications using internal social media. For example, you should not
post information on a co-workers Facebook wall regarding a claimant, customer or claim.
Social media is not a substitute for direct communications with customers or policyholders.
Simply acknowledging a client relationship on social media networks can violate privacy
laws.
3. In your personal communications, if you have identified yourself as working for or affiliated
with the Company, you must make clear that you are speaking for yourself and not on behalf
of the Company, its customers, partners or vendors unless you are licensed or otherwise
authorized to do so.
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4. If you publish information regarding the Companys products/services, whether in a blog or

any other type of social media, you must clearly disclose that you are an employee of the
Company and only publish the information in accordance with your departments marketing
policies.
5. Do not use Company-related social media sites, such as Liberty Mutual-sponsored Facebook
or Twitter pages, for personal activities.
6. Be respectful of the Company, its employees, and its competitors. Do not post any
defamatory language or material and never threaten, harass or coerce another person or
entity.
7. Respect copyrights, trademarks and other intellectual property rights of the Company and
any other entity you reference. Do not use the Companys logos, trademarks or materials
unless such use is sponsored or otherwise permitted by the Company or by law. Additional
information regarding copyright can be found on the Office of Corporate Compliance
website under Copyright Guidelines.
8. Make sure you have read and are familiar with the Terms of Use and Privacy Policy specific
to any social media site to which you are posting. Social media sites are owned by third
parties and you may not be able to control who has access to the information you post or if
and when that information is removed. Therefore, you should review the sites Terms of Use
and Privacy Policy before posting information.
9. If you find any social media use which may violate the Employee Handbook, Code of
Business Ethics and Conduct or these Guidelines, please contact Corporate Employee
Relations at Employee_Relations@LibertyMutual.com or the Compliance Helpline at
ComplianceHelpline@LibertyMutual.com.
10. Employees who fail to comply with this Policy or other Company policies may be subject to
discipline, up to and including termination of employment.
Social media can be an effective means of exchanging information, but you must remember the
restrictions regarding the sharing of proprietary or confidential information, including NPPI,
regarding the Company or its employees and use care whenever providing information about
policyholders, customers, claimants or partners. Information that you post on the Internet may
remain public and visible online for a long time. Even if you delete your blog or entry, archived
versions may exist online for public viewing. Therefore, please exercise good judgment before
posting or sharing information through social media channels.
If you have any questions regarding this Policy, contact Corporate Employee Relations at
Employee_Relations@LibertyMutual.com or the Compliance Helpline at
ComplianceHelpline@LibertyMutual.com or 800-989-2434
(www.LibertyAnonymousHelpline.com for anonymous reporting).

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Employee Development
At Liberty Mutual, our commitment to a talented and diverse workforce is at the very core of our
business strategy. Fully engaging our people will always be a strategic priority for us and we are
committed to providing employees with an opportunity to have fulfilling careers at Liberty Mutual.
Our overall people strategy is to select, develop, engage and retain the people we need to enhance
competitive advantage.
We develop people by:

Welcoming them into our organization in a way which assures speedy assimilation
Providing clear and explicit performance expectations
Providing honest performance evaluations and on-going coaching
Providing role-specific training and education
Embedding a training infrastructure for skill, technical, functional and management
development
Offering career-building options
Identifying high-potential employees and providing them with opportunities for growth

Development Planning
Development planning is an ongoing process to build employee capabilities and close experience
gaps. It is a process that begins with an effective plan that has three essential elements:

Clearly relates to the employees performance and/or career plans

Provides a blend of development activities that allow the employee to learn and apply new
capabilities
Includes ways to ensure that progress is being made (e.g. dates, milestones, deliverables)

Development planning is shared between manager and employee. For more detailed information
and resources refer to the Career & Development site (link).

Job Opportunities Program

To facilitate, Libertys commitment to employee development and talent management, the Company
has established one internal website where all employees can view and apply for open jobs across all
business units and companies within the US, Puerto Rico and Canada. Open positions from entry
level through grade equivalent 15 will be posted to this site. Business units may post higher graded
jobs at their discretion.
Who is Eligible to Apply?
All full-time and part-time employees are eligible to apply for posted positions after they have
fulfilled the required waiting period. You may apply for any job posted on the Job Posting website.
Contract and temporary employees must apply through the external job posting site at
www.LibertyMutual.com.
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Employees in grade equivalent 9 and below may post after completing 6 months
employment in their current position.

Employees in grade equivalent 10 and above may post after completing 12 months
employment in their current position.

Employees who do not meet the waiting period requirements may apply if:

The employee obtains a waiver to the waiting period from his or her manager. Managers
should provide the waiver to the employee in email form. The employee will forward the
email waiver to the hiring manager upon request.

The employee's current position is being restructured, eliminated, or moved to another

office.

A Business Unit Human Resources Manager, based on business need, has temporarily
waived the waiting period for a job, department or office location.

What Happens When You Change Companies?

When you transfer between Liberty Mutual subsidiaries in the US, Puerto Rico and Canada, you
retain your Anniversary Recognition date and past service credit. Flexible Time Off accrual differs
between the US, Puerto Rico and Canada. See your HR Representative for details.
How Do You Apply?
To apply, go to the Job Posting Website from myLiberty, search for and select an open job, click on
the Submit Now button to submit your resume and complete the application process. Submitted
applications are routed to the recruitment team and you will receive a confirmation.
Your exploratory inquiry about a new position is confidential until you proceed to the interview
stage. Once you have scheduled an interview, you are expected to notify your manager. Once the
interview is complete, your manager may be contacted to discuss your qualifications.
For additional information about the Job Opportunities Program, consult your manager or your HR
Representative.

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Performance Expectations
Clear and explicit performance expectations, honest performance evaluations and on-going coaching
are key components of our investment in our people. We help you perform your job by defining
expectations early in the year, encouraging ongoing communication with your manager about
performance, and evaluating your performance based on achievement of the defined expectations.
We also seek to help employees who are having difficulty meeting expectations to improve their
performance to a satisfactory level.

Objective Setting and Performance Review

Objective Setting and Performance Review is an ongoing process for setting performance objectives,
reviewing and evaluating an employee's performance. While procedures and techniques vary by
department and position, the Company process involves the following:
Objective Setting
At the beginning of the performance period, your manager meets with you to discuss the goals and
expectations for the year. You receive objectives that describe what you are expected to accomplish
and how success will be measured.
Interim Review, On-going Feedback & Counseling
Managers have at least one mid-year discussion with employees to review performance to date and
on an ongoing basis, you and your manager share responsibility for periodically having candid
discussions about how effectively you are performing your job and about progress on your
development plan.
Performance Review
After the close of the year, you and your manager discuss to what degree you achieved your
objectives and demonstrated the behaviors expected in your role. You will have online access to the
completed appraisal.

Addressing Ineffective Performance

Although employment is at will, the Company has an investment in trained and experienced
employees, and in most cases it will seek to help employees who are having difficulty meeting the
Company's performance expectations. You ordinarily will be warned that your performance is
unsatisfactory and counseled about the specific changes that are required to bring your performance
to satisfactory levels.
If your job performance continues to be unsatisfactory, you may be placed on probation. Probation
periods have specific time limits, usually from 30 to 90 days. The time limit depends upon the
number of problems to be corrected and the type of work performed. If you are a new employee, the
time limit may be as short as a week or two. Probation is a process that:

Employee Handbook

Page 15

reminds you about what areas of your performance need improvement;

provides you with the opportunity to bring your performance to a satisfactory level; and

informs you of the consequences of failing to meet these performance expectations.

If your performance during the probationary period does not improve, job action will follow, up to
and including, without limitation, reassignment or termination. If your performance improves to a
satisfactory level, the probationary period will end. Any subsequent reversion to unacceptable work
performance, however, may result in an immediate discharge without further warning.
Notwithstanding these general guidelines, there are some performance failures that are so severe that,
in the Companys sole discretion, they warrant an employees discharge without opportunities for
correction. In such cases, job action up to and including, without limitation, termination may
occur at any time, with or without advance notice.

Employee Handbook

Page 16

Compensation
Liberty Mutuals success is largely determined by the strength and quality of the people who work for
us. While people choose to work for one company over another for a range of reasons,
compensation is typically one of the factors. Talented people expect to be well paid and are attracted
to those companies that provide competitive pay, reward exceptional performance, and offer career
advancement opportunities. This is the basis of our compensation philosophy and strategy.
Liberty approaches compensation with three objectives in mind:

Be competitive to market;
Pay for performance; and,
Provide pay growth through promotional opportunities.

Our compensation program is designed to deliver above market pay if you perform well, and
significantly above that if you demonstrate exceptional performance over time.
More detailed information about the Companys compensation philosophy and program is found on
the Compensation & Benefits site in the Employee Center.

Employee Classification Exempt and Non-Exempt Status

All employees are classified as either exempt or non-exempt in accord with applicable legal
requirements. The distinction between exempt and non-exempt status is based on the nature of the
work and the wages paid and determines if an employee is eligible for overtime compensation.
Exempt Employees
Employees whose duties, responsibilities and salaries meet the requirements set forth in the Fair
Labor Standards Act (FLSA) regulations may be classified as exempt. Such employees are exempt
from the overtime pay provisions of the FLSA. In other words, they are paid on a salary basis for
the work they perform and are not eligible for overtime pay. Most executive, administrative,
professional and sales employees may be classified as exempt under the FLSA.
Deductions from Pay of Exempt Employees
It is Company policy to pay exempt employees their full weekly salary for any week in which they
perform any work for the Company, without regard to the number of days or hours actually worked,
unless one of the exceptions described below applies. In other words, the Company will not make
any deductions from an exempt employee's pay based on the amount of work the employee
performs during a given workweek (provided that the employee performs some work during the
week), except that deductions are permitted in the following circumstances:

Deductions for absences occasioned by the employee of one or more full-days when the
absence is due to sickness, disability or other personal reasons;
Deductions for disciplinary suspensions of one or more full-days made pursuant to the
Policy Violations and Misconduct section of this Handbook, as a result of violations of
any of the Company's written policies governing employee conduct, such as the Conduct
Policies and Expectations section of this Handbook, among others;

Employee Handbook

Page 17

Deductions for disciplinary suspensions due to violations of major safety rules; and

Deductions for the first 12 weeks taken pursuant to the Family and Medical Leave Act.

Exempt employees who do not perform any work for the Company during a given workweek will
not receive any pay for the week, unless they have FTO, Personal Holidays, or some other form of
paid time off available.
Improper pay deductions are a violation of Company policy and should be reported immediately.
Reports may be directed to your manager or to one or more of the following individuals:

The Highest Ranking Department Manager in the Division, Region, or Area;

Your Human Resources Manager or Human Resources Representative (SBU/Department);

or

The Director of Corporate Employee Relations

Additional H ours Time Tracking for Full-Time Exempt Employees, Grades 14 and Below*
Full-time exempt employees in grades 14 and below (except for sales and management positions) are
required to track any additional hours worked in excess of the standard 37.5 hour workweek in Time
Management on a bi-weekly basis. If no additional hours are worked and no absences (such as FTO)
occur in any week, the employee does not need to make any entry for that week. Because exempt
employees are already compensated for all hours worked, no additional salary payment will be
generated as a result of any additional hours entered. Additional information can be found in the
Time Management Frequently Asked Questions.
Non-Exempt Employees
Non-exempt employees at Liberty are paid a biweekly salary and are also eligible to earn overtime
compensation based on the number of hours that they work. Employees who do not fall into the
exempt category are considered non-exempt. Non-exempt employees are required to report all hours
worked in the Time Management system. See instructions for entering time as a full-time employee
and part-time employee.
Overtime
Overtime must be approved by your manager according to department procedures. In most
cases, you are required to obtain approval in advance, prior to working overtime. In the event the
Company asks you to work overtime, your manager will try to provide you with reasonable notice as
soon as the need for overtime arises. You are expected to make reasonable efforts to comply with
such requests. If you are classified as a non-exempt employee, you will be paid for approved
overtime work as follows:

your normal rate of pay for work performed between 37.5 and 40 hours in any given
workweek.

one-and-one half times your normal rate of pay for work performed beyond 40 hours in any
given workweek or as otherwise required by state law.

Employee Handbook

Page 18

If you work on a Company-observed holiday, you will be paid one-and-one half times your normal
rate of pay for hours worked plus your regular holiday pay (exempt employees will receive a
substitute holiday).
If you are a non-exempt office-based employee (this does not apply to telecommuters) who works
during a full-day office closing, you will receive one-an-one half times your normal rate of pay for
work performed that day plus your regular pay for normally scheduled hours. This premium payment
only applies to work performed on a full-day office closing. For more information, refer to Time
Management Help Instructions (Employee - Entering Hours Worked during an Office
Closure).
Note: California regulations require 10 minute paid breaks to non-exempt employees for every 3.5
hours of work performed. In addition, a 30 minute unpaid meal break must also be provided after
five hours of work. Employees must certify meal and break times on the on-line timesheet in
the Time Management System.

Employee Status Liberty Gateway

Some benefits and personnel policies differ depending upon an employee's status defined below:

Full-time Regular: an employee regularly scheduled to work the standard workweek;

Part-time Regular: an employee regularly scheduled to work less than the standard
workweek; benefits eligibility varies based on the number of hours worked and eligibility
criteria can be found in the summary plan description for each plan as set forth in the
Benefits section of the Employee Center;

Full-time Temporary: an employee regularly scheduled to work the standard workweek and
whose employment is generally intended to last less than 6 months;

Part-time Temporary: an employee regularly scheduled to work less than the standard
workweek and whose employment is generally intended to last less than 6 months.

Intern/Co-op: an undergraduate who ordinarily works a minimum of ten weeks on a full- or

part-time basis. Returning intern/co-op students may also work during a scheduled school
break between September and May.

Paychecks, Deductions and Tax Reporting

Full-time and part-time employees are paid on a bi-weekly basis every other Friday. If a regularly
scheduled payday falls on a bank holiday, payday is accelerated to Thursday. Your paycheck may be
direct deposited into your personal bank account(s) and you may direct money into up to four
accounts; or you may choose to receive a paper check, which will be mailed the Wednesday before
payday to your home address on record in Liberty Gateway. Changes to your pay method can be
made via Liberty Gateway Employee Self Service and will take one or two pay periods to be in
effect. Your current and past payslips are available to view online through the Liberty Mutual
intranet. Pay slips are in a PDF format and can be exported either by e-mailing a copy or printing.
Liberty Mutual withholds payroll taxes as required by federal, state and local tax laws. You may
authorize Liberty Mutual to withhold voluntary deductions, such as Give with Liberty , Group
Savings Plus, and Thrift Incentive Plan.
Employee Handbook

Page 19

Unless you are claiming Exempt Status, you must update your W-4 federal election electronically.
Employees claiming Exempt Status must submit a paper form. State Income Tax forms can only
be updated in paper form; forms can be found through Employee Self Service>Tax form. For
submission of paper forms, you must print and complete the form and fax it to the attention of
Payroll Tax Department at (603) 559-9447, mail it to Payroll Tax Dept., PO Box 1525, Dover, NH
03821-1525 or send via interoffice mail to Payroll Tax Dept., Office 0096, Mail Stop 02A, Dover,
NH.
Per IRS regulations, your W-2 Form Wage & Tax Statement for the preceding calendar year is mailed
to your home address on record in Liberty Gateway by January 31st. You may also view, print and
email your W-2 form.
If you have questions about your W-2 form, wage reporting or salary deductions; contact your
manager or the HR Support Center or by phone at 1-877-LMG-HRSC (1-877-564-4772) or by
email HRSupportCenter@LibertyMutual.com.

Employee Handbook

Page 20

Time Off
We believe it is important to provide you with time off for relaxation, recreation, or to attend to
other personal needs. We provide time off through holidays, flexible time off, and special time
allowances such as bereavement and jury duty. Liberty Mutual also offers a number of other paid and
unpaid leaves of absence, such as disability leave, military leave, family/medical leave, and personal
leave. Employees are not expected to perform work or monitor work during approved time off.

Holidays
The Company offers eligible full-time employees 11 paid holidays per year. The 11 paid holidays fall
into three categories: Core Holidays, Local Holidays and Personal Holidays. Part-time employees are
also eligible for 11 paid holidays provided the holiday falls on a regularly scheduled work day for the
employee.
For full-time and part-time exempt employees, your base salary is used to calculate holiday pay. For
non-exempt part-time employees, holiday pay will be calculated based on your scheduled hours.
Temporary employees are eligible for holiday pay provided their assignment is scheduled to last more
than 30 days.
Core Holidays
A skeleton staff may be required in certain sales/service/claims call centers and branch offices in
order to meet our customer needs on designated Company holidays.
Holiday

Date

New Year's Day

January 1 *

Memorial Day

The Last Monday in May

Independence Day

July 4 *

Labor Day

The First Monday in September

Thanksgiving Day

The Fourth Thursday in November

The Day after Thanksgiving

The Friday After Thanksgiving

Christmas Day

December 25 *

*If the holiday falls on Saturday, Friday will generally be the day observed. Holidays falling on
Sunday will generally be observed on Monday.

Employee Handbook

Page 21

Local Holidays
Each office may observe up to three additional Local Holidays where the office will be closed. The
selection of Local Holidays is typically based on regional legislation and whether the majority of
surrounding businesses are closed. Corporate Employee Relations coordinates the selection of Local
Holidays to ensure compliance with regional requirements and consistency across SBUs.
Personal Holidays
To bring the total paid holidays to 11, eligible employees receive Personal Holidays after
completing three months of continuous employment (past service credit does not apply). In each
subsequent year, the employee will be eligible for Personal Holidays on the first day he/she reports
to work.
Employees may take Personal Holidays on any regularly scheduled workday during the calendar year,
subject to the advance notification and approval of their managers. Personal Holidays may be taken
in full or half day increments only. Reasonable efforts will be made to accommodate employees'
requests to use Personal Holidays for religious needs.
Personal Holidays must be taken during the calendar year in which they are received, or they will be
forfeited. If your employment ends, you will receive pay in lieu of Personal Holidays accrued but not
taken during the calendar year (January through December).
Employees in California may carryover Personal Holidays. At the end of each calendar year, any
accrued but unused Personal Holiday time will remain in the Personal Holiday bank, however, fulltime employees may only accrue up to a combined maximum of 375 hours of FTO and Personal
Holidays. Part-time employees may accrue up to a combined maximum of 155 hours of FTO and
Personal Holidays.

Flexible Time Off (FTO)

The Flexible Time Off policy gives employees an annual bank of time from which they may draw
paid time off to cover personal needs such as vacation, sick days, or the waiting period before Shortterm Disability or Workers' Compensation benefits begin.
Note that you do not need FTO for the following absences: Personal Holidays, Bereavement, Jury
Duty, Short-term Disability or Workers' Compensation (excluding the waiting period), Long-term
Disability, or leaves of absence.
You are expected to plan your time off needs effectively. Whenever possible, you should schedule
FTO absences in advance with the approval of your manager. If you are unable to provide notice,
you must notify your manager of your FTO absence and expected duration at the earliest possible
opportunity. Failure to notify your manager of unscheduled time off from day to day may be cause
for termination.

Employee Handbook

Page 22

Exempt Employees
Exempt employees may take FTO in full and half day increments only.

Non-Exempt Employees
Non-exempt employees may take FTO in hourly (60 minute) increments, or in increments of a full
or half day (generally 7.5 or 3.75 hours).

Regular Full-Time Employees

FTO begins to accrue on your first day of work. Your monthly accrual will then be available on the
first day you report for work each calendar month. We recommend that you reserve at least five FTO
days to use for emergencies and other unplanned absences.
Full-time employees ordinarily will accrue FTO days according to the following schedule:
The Anniversary Month in
Which You Complete This
Many Years of Service
(Including Past Service
Credit)

If You are in This

Grade

You Will Earn This

FTO Days Each
Month

Up to This Maximum
Days Each Year

Less Than 3 Years

3 to 14
Or one of the following:
40 and 52

1.5 days
(11.25 hours)

15 days
(112.5 hours)

15 to 19
Or one of the following:
41, 43-44, 53, 56, 89-94

2.0 days
(15 hours)

20 days
(150 hours)

20 to 27
Or one of the following:
57, 95-99

2.5 days
(18.75 hours)

25 days
(187.5 hours)

3 to 19
Or one of the following:
41, 43-44, 52, 89-94

2.0 days
(15 hours)

20 days
(150 hours)

20 to 27
Or one of the following:
57, 95-99

2.5 days
(18.75 hours)

25 days
(187.5 hours)

10 Through 19 Years

All Grades

2.5 days
(18.75 hours)

25 days
(187.5 hours)

20 or More Years

All Grades

3.0 days
(22.50 hours)

30 days
(225 hours)

3 Through 9 Years

Employee Handbook

Page 23

Temporary employees, including interns/coops, may accrue 1.5 FTO days (11.25 hours) per month,
to a maximum of 15 days per year, provided their assignment is scheduled to last more than 30 days.
If your most recent date of hire is prior to January 1, 1992, you will earn 3.5 FTO days (26.25 hours)
a month, to a maximum of 35 days (262.50 hours) a year, when you have 30 or more years of service.
Part-Time Exempt Employees
The FTO provisions for part-time exempt employees are the same as those for full-time employees
except that the accrual rate will be based on the employees work schedule as follows:
The
Anniversary
Month in
Monthly Annual Max
Which You
Accrual
Accrual
Complete
If You are
This Many
in This PT Exempt PT Exempt
Years of
Grade
Work
Work
Service
Schedule
Schedule:
(Including
40%
40%
Past
Service
Credit)
3 to 14
Or one of
the
4.5 hours
45 hours
following:
40 and 52
15 to 19
Or one of
Less Than
the
6 hours
60 hours
following:
3 Years
41, 43-44,
53, 56 89-94
20 to 27
Or one of
7.5 hours
75 hours
the
following:
57, 95-99
3 to 19
Or one of
the
6 hours
60 hours
following:
41, 43-44,
3 Through 52, 89-94
9 Years
20 to 27
Or one of
7.5 hours
75 hours
the
following:
57, 95-99
10 Through
All Grades 7.5 hours
75 hours
19 Years
20 or More
All Grades
Years
Employee Handbook

9 hours

90 hours

Monthly
Accrual

Annual Max
Accrual

Monthly
Accrual

PT Exempt PT Exempt PT Exempt

Work
Work
Work
Schedule:
Schedule:
Schedule:
60%
60%
80%

Annual Max
Accrual
PT Exempt
Work
Schedule:
80%

6.75 hours

67.5 hours

9 hours

90 hours

9 hours

90 hours

12 hours

120 hours

11.25 hours

112.5 hours

15 hours

150 hours

9 hours

90 hours

12 hours

120 hours

11.25 hours

112.5 hours

15 hours

150 hours

11.25 hours

112.5 hours

15 hours

150 hours

13.5 hours

135 hours

18 hours

180 hours
Page 24

NOTE: If your most recent date of hire is prior to January 1, 1992, when you have 30 or more years
of service, you will earn 10.5, 15.75 or 20 hours of FTO a month, to a maximum of 105 hours, 157.5
hours or 210 hours a year, if your work schedule is 40%, 60% or 80%, respectively.

Part-Time Non-Exempt Employees

Part-time non-exempt employees will earn FTO based on the number of hours worked. Your accrual
will be available on a bi-weekly basis. The number of FTO hours you accrue is determined by
multiplying hours worked by the applicable FTO factor. The FTO factor takes into account an
employee's length of service:

The Month in Which You Complete

This Many Years of Service (Inc.
Past Service Credit)

FTO Factor

Less than 3

.0385

3 through 9

.0577

10 or more

.0673

For example, during the first two years of employment a part-time non-exempt employee would earn
38.5 hours for every 1,000 hours worked (1,000 hours X .0385 FTO Factor = 38.5FTO hours).
Note that accrued time off is rounded to the nearest 5 minute increment.
FTO accrual begins on your first day of employment and generally may be taken as it is earned.
Temporary employees may accrue FTO using the .0385 factor provided their assignment is
scheduled to last more than 30 days. You can request FTO pay for more hours than you are normally
scheduled to work in one day; however, it can not exceed the number of hours in the standard
workday (generally 7.5 hours, but may vary if you are on a compressed workweek schedule).
Part-time non-exempt employees are not paid for days they do not work unless they are covered by
FTO, Personal Holidays, Company Holidays, Short-term Disability, Long-term Disability,
Bereavement, or Jury Duty. Part-time non-exempt employees who leave work early will only be paid
for the hours worked unless they opt to use accrued time off.

Extended Absences
Employees will not accrue FTO for any month during which they are absent from work for the
entire month, whether the absence is due to a Workers' Compensation injury, Short-term Disability,
Long-term Disability, Family/Medical Leave of Absence, Personal Leave of Absence or Military
Leave, unless they are taking approved FTO.

Employee Handbook

Page 25

Carryover
Except where state law provides otherwise, full-time employees may carry over up to 150 FTO hours
into the next calendar year; exempt part-time employees may carry over up to 60, 90 or 120 FTO
hours into the next calendar year based on their 40%, 60% or 80% schedule, respectively; and nonexempt part-time employees may carry over up to 50 FTO hours into the next calendar year.
Note: Full-time California employees may accrue up to a combined maximum of 50 days (375 hours)
of FTO and Personal Holidays. Part-time California employees may accrue up to a combined
maximum of 155 hours of FTO and Personal Holidays. Regardless of whether the employee's FTO
bank exceeds the cap, the employee will still accrue 4 days of Personal Holiday time on January 1st.
However, FTO accrual will cease for full-time employees until the combined maximum of Personal
Holidays and FTO days drop below 50 days (375 hours) and will cease for part-time employees until
the combined maximum drops below 155 hours.

Change of Status
If you are promoted, demoted or otherwise undergo a change in status that affects your FTO accrual
rate, the new accrual rate will be effective as of the month your status changes. Employees are
encouraged to take all or most of their FTO before changing status from full-time to part-time
(remember: based on status and schedule, part-time employees may only carry over between 50 and
120 FTO hours into the next calendar year; different rules apply for California, see above).

Borrowing
You may not borrow from the FTO that you are scheduled to accrue during the remainder of the
calendar year.

Excused/Unexcused Absences
When your office is open, you are expected to come to work except for the following reasons:

Flexible Time Off

Long-term Disability (LTD)

Unpaid Time Off *

Jury Duty

Personal Holiday

Short-term Disability (you must use

your accrued time off during the waiting
period)

Workers' Compensation lost time

Leave of Absence

Bereavement Leave

If you are absent for any reason other than those listed above, and do not have enough FTO time
available to cover the absence, the Company will consider the absence "unexcused," and, to the
extent allowed by law, withhold salary for the duration of the absence. Three occurrences of
unexcused absence in a consecutive 24-month period may be grounds for termination.
Employee Handbook

Page 26

*Note: Reasonable accommodations are made for employees who have certain disabilities. A
reasonable accommodation may include providing additional Unpaid Time Off. This additional
Unpaid Time Off, which must be approved in advance by your manager, is not considered an
"unexcused" absence. You may be asked to provide written medical documentation to support your
request for Unpaid Time Off.
Planned/Unplanned Absences
If you request time off before the day of the absence and your manager approves, it will be
considered a planned absence. If, however, you wait until the day of absence to request time off, it
will be considered an unplanned absence. An excessive number of unplanned absences often places a
burden on others and affects your ability to meet performance expectations. (If you use FTO for an
unforeseeable absence covered under the Family/Medical Leave of Absence policy, you will not be
charged with an unplanned absence, regardless of the notice provided.)
FTO During Family Medical Leave (FML)
If you elect to use FTO to receive pay during an approved FML absence, the FTO may only be taken
in the increment of time allowed under the FTO policy. For example, if a non-exempt employee
needs to take three and a half hours of FML and elects to use FTO, three hours can be paid with the
use of FTO and 30 minutes will be unpaid.
FTO/PH Payout During LTD Absence
If you are out of the office on an approved LTD absence, you may request in writing to the HR
Support Center to receive the payout of any accrued but unused FTO and PH time. For non-sales
employees, your base rate of annual salary at the time of payout will be used to calculate the payment
due to you. For sales employees, calculation of the payment due will be based on your base rate of
annual salary at the time of payout, plus the sales bonuses and/or commissions paid to you in the
most recent 12-month period of employment prior to the date of payout. Any existing salary
overpayments will be deducted from the amount of FTO/PH payout, unless otherwise mandated by
statute.

Termination of Employment
If your full or part-time employment ends, you will be given pay in lieu of FTO (and Personal
Holidays) accrued but not taken, reduced by any amounts that may have been overpaid to you during
your employment to the extent permitted by applicable law. For non-sales employees, your base rate
of annual salary at the time of termination will be used to calculate the payment due to you. For sales
employees, calculation of the payment due will be based on your base rate of annual salary at the time
of termination, plus the sales bonuses and/or commissions paid to you in the most recent 12-month
period of employment prior to the date of termination. Pay in lieu of FTO will not extend your
employment or benefits coverage. If your employment ends on the last working day of any calendar
year you will be paid the next calendar year's New Year's Holiday pay.

Employee Handbook

Page 27

Bereavement Leave
In the event of a death in your immediate family, your manager may approve up to 3 days of paid
time off. This will not be considered FTO time and will not be deducted from your FTO bank. Parttime employees are also eligible for up to three days provided that the time off was scheduled as
workdays. For part-time employees, pay is calculated in the same manner as for Holidays. If you need
additional time off, or your situation is not covered by this policy, you may use FTO or Personal
Holidays or request a Personal Leave of Absence.
For the purposes of this policy, "immediate family" will ordinarily be considered to include: spouse,
domestic partner, parent, child or sibling; spouse's or domestic partners parent, child or sibling;
child's spouse or domestic partner; grandparents, or grandchildren.
There may be situations not contemplated by the above guideline in which the allowance of
bereavement leave may be appropriate. The local manager, who will have a better understanding of
the employees relationship with the deceased, is in the best position to assess and approve
bereavement leave requests.

Jury Duty
You will be given paid time off, as required, if you are summoned to Jury Duty. This will not be
considered FTO time and will not be deducted from your FTO bank. This paid time off is not
available to employees who are appearing in court either as a plaintiff, defendant or witness
(employees in these circumstances must use FTO time, personal holidays or request an unpaid
personal leave of absence). For part-time employees, pay for Jury Duty is calculated in the same
manner as for Holidays.
In some states, time off to appear in court for reasons other than Jury Duty is mandated by statute
and may not result in any disciplinary action under any Company attendance policy.

State Time Off Laws

In addition to the time off granted under Company policy, certain states provide for additional time
off under state law. For example some states provide time off for:

voting;
spouses or parents of a person on military leave;
victims of domestic violence, sexual assault or stalking;
victims of crimes and relatives of victims of crimes;
volunteer firefighters and emergency personnel; or
parents/guardians to attend a school event or meeting.

Unless otherwise mandated by statute, this time off is unpaid. For further information on your state,
contact the HR Support Center.

Employee Handbook

Page 28

Disability
If you are absent for eight or more consecutive calendar days, you may be eligible for disability
benefits or an unpaid disability leave. The Disability policy applies to all regular part-time and fulltime employees, provided their employment is scheduled to last longer than six months.
Your manager or other representatives of the Company may ask you to provide certain medical
documentation during your disability leave. Failure to provide this documentation on a timely basis,
or failure to return to work as soon as you are medically able to do so may result in the termination
of your employment.

Short-term/Long-term Disability
Regular employees scheduled to work 20 hours or more per week may be eligible for disability
benefits which replace all or part of their pay under Liberty's Short-term and Long-term Disability
Plans. To receive benefits, you must meet the eligibility criteria and provide medical information to
allow Liberty Life Assurance Company, the Plan Administrator, to determine that you are disabled.
Refer to the Short-term and Long-term Disability Plans in the Benefits section in the Employee
Center.

Unpaid Disability Leave/Statutory Benefits

Part-time employees who are scheduled and regularly working less than 20 hours per week and
temporary employees are not eligible for disability benefits under Liberty's Short-term and Long-term
Disability Plans.
Employees in the following states may be eligible for statutory disability benefits through Liberty:
California, Hawaii, New Jersey, New York, and Puerto Rico. In Rhode Island, employees who want
statutory disability benefits must apply to the state. Disability leave will continue until the earlier of:
(i) the date you return to work; or (ii) the date statutory disability benefits cease.
For information about group health benefits and loan payments while on an unpaid leave, refer to
the Group Benefits While on Leave heading in this section.

Reinstatement
The following reinstatement policy ordinarily applies when you are absent from work due to
disability. If you are a regular full-time or regular part-time employee and, during any 24-month
period, you return to work from one or more disability leaves having a combined total duration of:

26 weeks or less, you will be reinstated to your most recent position at the same salary you
were earning immediately before your disability leave began.

after 26 weeks you may be considered for any position that may be available in your office or
one nearby for which you are qualified at the time of your return. If no such positions are
available, your employment will ordinarily be terminated.

To the extent that federal or state laws (including the federal Family Medical Leave Act), provide
further reinstatement rights, these laws govern.

Employee Handbook

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Effect on Salary
If you have a salary increase that is scheduled to occur anytime during a leave of absence, including
the waiting period for a short-term disability, it will not become effective until after you return to
work. If you are absent for more than 13 weeks during the calendar year, any merit increase you may
receive will be pro-rated accordingly.

Leaves of Absence
Described below are other types of leaves that you can take without losing service credit or the ability
to continue participating in Liberty's group health plans.

Family/Medical Leave (FML)

Employees who have at least one year of service (and have worked at least 1,250 hours during the
12-month period immediately preceding the leave) may take up to 13 weeks of unpaid time off
during a rolling twelve-month period for the following reasons:

for the birth, adoption or placement of their child (and subsequent care of the child);
to care for their child, spouse, parent or domestic partner* with a serious health condition;
for their own serious health condition;
for certain qualifying exigencies arising out of the fact that a spouse, son, daughter, parent,
or domestic partner* is on covered active duty or call to covered active duty status, or has
been notified of an impending call or order to covered active duty in the Armed Forces for
deployment to a foreign country in support of a contingency operation or Regular Armed
Forces for deployment to a foreign country.

A serious health condition is an illness, injury, impairment, or physical or mental condition that
involves either an overnight stay in a medical care facility, or continuing treatment by a health
care provider for a condition that either prevents the employee from performing the functions of
the employees job, or prevents the qualified family member from participating in school or
other daily activities. Subject to certain conditions, the continuing treatment requirement may be
met by a period of incapacity of more than 3 consecutive calendar days combined with at least
two visits to a health care provider or one visit and a regimen of continuing treatment, or
incapacity due to pregnancy, or incapacity due to a chronic condition. Other conditions may
meet the definition of continuing treatment.
Qualifying exigencies may include attending certain military events, arranging for alternative
childcare, addressing certain financial and legal arrangements, attending certain counseling
sessions, caring for the parents of the military member on covered active duty and attending
post-deployment reintegration briefings.

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Additional Military Family Leave Entitlement (Injured Servicemember Leave)

In addition to the basic FML leave entitlement discussed above, an eligible employee who is the
spouse, son, daughter, parent, next of kin, or domestic partner* of a covered servicemember is
entitled to take up 26 weeks of leave during a single 12-month period to care for the servicemember
with a serious injury or illness. Leave to care for a servicemember shall only be available during a
single-12 month period and, when combined with other leave qualifying under the federal Family and
Medical Leave Act (the FMLA), may not exceed 26 weeks during the single 12-month period. The
single 12-month period begins on the first day an eligible employee takes leave to care for the injured
servicemember.
A covered servicemember is a current member of the Armed Forces, including a member of the
National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is
otherwise in outpatient status, or is on the temporary retired list, for a serious injury or illness. These
individuals are referred to in this policy as current members of the Armed Forces. Covered
servicemembers also includes a veteran who is discharged or released from military service under
condition other than dishonorable at any time during the five (5) year period prior to the first date
the eligible employee takes FMLA-qualifying leave to care for the covered veteran, and who is
undergoing medical treatment, recuperation or therapy for a serious injury or illness. These
individuals are referred to in this policy as covered veterans.
Employees eligible for military caregiver leave are entitled to a total 26 weeks of leave during a single
12-month period that includes all other types of FMLA-qualifying leave that may be taken.
The FMLA definitions of a serious injury or illness for current Armed Forces members and
covered veterans are distinct from the FMLA definition of serious health condition applicable to
leave to care for a covered family member.
Short-Term Disability, Long-Term Disability and unpaid leave (including FML) are not counted
toward the 1,250 hour requirement.
FML leave is unpaid. Employees who wish to receive pay during an approved FML leave may elect
to apply available FTO to the absence in increments of time as allowed under the FTO policy. In
such circumstances, FML leave and FTO shall run concurrently.
Two special rules apply to exempt employees taking FML leave under certain circumstances:

For exempt employees, any portion of unpaid FML leave that is not also FMLA-qualifying
leave may only be taken in whole-day increments. This situation may occur, for example,
when an employee takes leave to care for a domestic partner who is not otherwise an
FMLA-qualifying spouse or other family member and/or takes FML leave beyond the 12
weeks of leave provided by the FMLA. Exempt employees may, however, take FML leave
in increments of time as allowed under the FTO policy (e.g., half-day increments) only if
they apply available FTO to such half-day periods of FML leave, such that they are paid for
the entire day.

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For exempt employees, any portion of unpaid FML leave that is not also FMLA-qualifying
leave and that is taken for the employees own serious health condition (1) is subject to the
same increment restrictions described above and (2) may only be taken after the employee
(a) has exhausted any benefits available under Liberty Mutuals short-term disability (STD)
policy (or is in the STD waiting period) and (b) has exhausted any available FTO. This
situation may occur, for example, when an employee takes FML leave beyond the 12 weeks
of leave provided by the FMLA that is for the employees own serious health condition.

*Note: To qualify as a domestic partner for the purposes of taking leave under FML, you must
complete an affidavit attesting to the fact that you and your domestic partner:
(a) have entered into a state-registered domestic partnership and provide proof that you (1) are
registered as domestic partners in a state that formally recognizes domestic partners, (2) have
entered into a civil union in a state that formally recognizes civil unions, or (3) are registered as
reciprocal beneficiaries in a state that formally recognizes reciprocal beneficiaries to the extent
that you are in a spouse-like relationship with and are not related to your reciprocal beneficiary;
or
(b) if you do not meet the requirements of section (a), you and your domestic partner must:
(1) share an exclusive, committed relationship together and intend to do so indefinitely;
(2) have shared a common residence together for the past twelve (12) months;
(3) be at least 18 years of age or older and mentally competent to execute the required
Affidavit of Domestic Partnership;
(4) be jointly responsible for each others common welfare and financially interdependent;
(5) not be related to a degree of closeness that would prohibit legal marriage in the state
where you legally reside;
(6) not be legally married to, or the domestic partner of, anyone else; and
(7) satisfy such other criteria as the Company may require from time to time, including
providing proof, at the Companys request, that your domestic partnership meets the
eligibility criteria set forth above.
If you have previously completed an affidavit confirming your domestic partnership, you will not be
required to complete another affidavit.
FML Runs Concurrently With Other Types of Leave
If an employee is on leave due to a Short-Term or Long-Term Disability or Workers Compensation
claim, the leave will count towards his or her 13-week FML entitlement.

State Leave Laws

While leave entitlements under the Company's policy and any applicable state laws generally run
concurrently, Company policy does not supersede any state laws which provide greater rights.

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For example, employees in California who are disabled by pregnancy or a pregnancy-related

condition may be eligible for California pregnancy disability leave, and may also be eligible to take an
additional twelve weeks of unpaid California family care/medical leave for the birth of their child
after their eligibility for California pregnancy disability leave has ended. For further information in
your state, see your posting board or contact a human resources representative.

Intermittent/Reduced-Schedule Leave
Eligible employees may use their family/medical leave intermittently or on a reduced-schedule basis,
but only when the need can best be accommodated by the alternative schedule.

Intermittent Leave
Intermittent leave may be taken for an employees own serious health condition, to care for an
employees child, spouse, parent or domestic partner with a serious health condition, to care for a
covered servicemember with a serious illness or injury, or leave due to a qualifying exigency.
Intermittent leave is not available for the birth, adoption or placement of an employees child or the
subsequent care of the newly placed healthy child.
Intermittent leave may be taken in increments ranging from 15 minutes to several weeks based on
medical necessity. For example, an employee could take leave on an intermittent basis in 15 minutes
or daily increments for medical appointments for an employees spouse or parent with a serious
health condition or for treatment and recovery due to an employees own serious health condition.

Reduced-schedule Leave
Reduced-schedule leave is available for the same reasons as intermittent leave as well as for the
birth and subsequent care of the employee's child, or placement of a child with the employee for
adoption or foster care, and subsequent care of the newly placed healthy child; however, leave must
conclude within 12 months of the child's birth or placement, and is subject to the prior approval of
the employees manager or supervisor.
Reduced-schedule leave is a temporary change in the employees schedule. For example, the
employee may work half-days or three days a week instead of five to care for a parent with a serious
health condition or to care for a newly adopted child.

Employee Notification Requirements

When the need for leave is foreseeable, eligible employees generally are required to give supervisors
at least 30 days notice of their intention to take leave. When an employee becomes aware of a need
for FML leave less than 30 days in advance, it should be practicable for the employee to provide
notice of the need for leave either the same day or the next business day.
Notice of Eligibility for, and Designation of, FML Leave
Employees requesting FML leave are entitled to receive written notice from the Company telling
them whether they are eligible for FML leave and, if not eligible, the reasons why they are not
eligible. When eligible for FML leave, employees are entitled to receive written notice of: 1) their
rights and responsibilities in connection with such leave; 2) the Companys designation of leave as
FMLA-qualifying or non-qualifying, if not FMLA-qualifying, the reasons why; and 3) the amount of
leave, if known, that will be counted against the employees leave entitlement.
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Medical Certification
Employees who request or express a need for FML not covered by short-term disability or workers
compensation are expected to submit a Medical Certification of Serious Health Condition (ER 470),
generally within 15 calendar days after the Companys request. If leave continues beyond the original
estimated return date, re-certification will be requested. Further, depending on the circumstances
and duration of FMLA leave, the Company may require employees to provide recertification of
medical conditions giving rise to the need for leave.

Cooperation in the Scheduling of Planned Medical Treatment (Including Accepting

Transfers To Alternative Positions) and Intermittent Leave or Reduced Leave
Schedules
When planning medical treatment, you must consult with the Company and make a reasonable effort
to schedule treatment so as not to unduly disrupt the Companys operations, subject to your health
care providers approval. You must consult with the Company prior to the scheduling of treatment
to work out a treatment schedule which best suits the needs of both you and the Company, subject
to your health care providers approval. If you neglect to fulfill this obligation in providing notice of
the need to take FML leave on an intermittent basis for planned medical treatment, the Company
may require you to attempt to make such arrangements, subject to your health care providers
approval.
When you take intermittent or reduced work schedule leave for foreseeable planned medical
treatment for you or a family member, including during a period of recovery from a serious health
condition or to care for a covered servicemember, the Company may temporarily transfer you,
during the period that the intermittent or reduced leave schedules are required, to alternative
positions with equivalent pay and benefits for which you are qualified and which better
accommodate recurring periods of leave.
When you seek intermittent leave or a reduced leave schedule for reasons unrelated to the planning
of medical treatment, upon request, you must advise the Company of the reason why such leave is
medically necessary. In such instances, you and the Company shall attempt to work out a leave
schedule that meets your needs without unduly disrupting the Companys operations, subject to your
health care providers approval.

Reinstatement
An employee returning from leave ordinarily will be reinstated to the position held when the leave
started or to an equivalent position with equivalent pay and benefits.
Questions and/or Complaints about FMLA-Qualifying Leave
If you have questions regarding this policy, please contact Human Resources. The Company is
committed to complying with the FMLA and, whenever necessary, shall interpret and apply this
policy in a manner consistent with the FMLA.

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The FMLA makes it unlawful for employers to: 1) interfere with, restrain, or deny the exercise of any
right provided under FMLA; or 2) discharge or discriminate against any person for opposing any
practice made unlawful by FMLA or involvement in any proceeding under or relating to FMLA. If
employees believe their FMLA rights have been violated, they should contact the Human Resources
Department immediately. The Company will investigate any FMLA complaints and take prompt and
appropriate remedial action to address and/or remedy any FMLA violation. Employees also may file
FMLA complaints with the United States Department of Labor or may bring private lawsuits alleging
FMLA violations.

Personal Leave of Absence

The Personal Leave of Absence policy enables eligible full-time and part-time employees to take an
unpaid leave from work during a rolling twelve-month period.

If you have this much service....

...you are eligible for...

Less than 1 year

1 week

1 to 4 years

1 - 4 weeks

5 or more years

1 - 8 weeks

Requests should be made in writing to your supervisor. In the case of a foreseeable leave, employees
are required to make the request 30 days in advance or at the earliest opportunity. A manager may
approve, deny or limit requests for personal leaves based on business necessity. An employee
returning from a personal leave generally is reinstated to the position held when the leave started, but
the employee may be given an equivalent position with equivalent pay and benefits.

Group Benefits While On Leave

Your group benefits will continue automatically during any authorized leave of absence. If you take a
leave of absence not exceeding 30 days, the cost will be deducted from your first paycheck following
the leave. If your leave of absence exceeds 30 days, you will be billed monthly at home or you can
choose to have the charges for the entire period deducted on a before-tax basis (where applicable)
from your last paycheck before the leave begins (you must notify the HR Support Center in writing
at least two weeks in advance of your leave to do this). If you do not come back to work on your
scheduled return date, or you fail to pay the premiums, your coverage will be canceled.
The Companys obligation to maintain health care coverage for an employee on FMLA-qualifying
leave ceases if an employees premium payment is more than 30 days late. If an employees payment
is more than 15 days late, the Company will send a letter notifying the employee that coverage will be
dropped on a specified date unless the co-payment is received before that date. If employees do not
return to work within 30 calendar days at the end of the leave period (unless employees cannot return
to work because of a serious health condition or other circumstances beyond their control) they will
be required to reimburse the Company for the cost of the premiums the Company paid for
maintaining coverage during their unpaid FMLA-qualifying leave.
If you do not want to continue any benefit while on a leave of absence you must notify the HR
Support Center in writing at least two weeks before your first day of leave to suspend the coverage.
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Any suspended coverage will automatically be reinstated on the date you are scheduled to return to
work.

Loan Payments While On Leave

You are still responsible for repayment of any outstanding TIP or Company loans if you take a leave
of absence. If your leave is scheduled for a period of less than 30 calendar days, loan payments will
be deducted from your first payroll check following the leave. If your leave is for 30 days or more,
you may request that your total repayment amount for the leave period be deducted from your last
salary check prior to the leave; otherwise, a monthly bill for the loan payments will automatically be
sent to your home address. Payment on these bills must be received by the statement's due date or
the loans may be considered in default.

Other Payroll Deduction Items

Please consult your supervisor, manager, or human resources representative to answer any questions
you may have about the status of other programs that you normally participate in through payroll
deduction.

Return to Work, Periodic Reporting, and Fitness for Duty Medical Certifications
You must contact the Company periodically regarding your status and your intent to return to work
at the end of a leave of absence. If your anticipated return to work date changes and it becomes
necessary for you to take more or less leave than originally anticipated, you must provide the
Company with reasonable notice (i.e., within 2 business days) of your changed circumstances and
new return to work date. If you give the Company unequivocal notice of your intent not to return to
work following an FML leave, the Companys obligation to maintain health benefits (subject to
COBRA requirements) and to restore your position cease.
You must return to work from a leave of absence on your scheduled return date or your employment
may be terminated (unless the Company has authorized an extension of your leave or your use of
additional paid or unpaid time off). If your return to work date falls on a Saturday, Sunday, or
Company-observed holiday, you are expected to return on the next regularly scheduled workday.
When a Company-observed holiday falls during an authorized unpaid leave, the Company will pay
for the holiday only if it falls on the first or last day of the leave.
If you are returning to work from an FML leave taken because of your own serious health conditions
that made you unable to perform your job, the Company may request (in its sole discretion) a
medical certification confirming you are able to return to work and you are able to perform the
essential functions of the your position, with or without reasonable accommodation. The Company
may delay and/or deny job restoration until you provide return to work/fitness for duty
certifications.

Effect on Salary
If you have a salary increase that is scheduled to occur anytime during a leave of absence, including
the waiting period for a short-term disability, it will not become effective until after you return to
work. If you are absent for more than 13 weeks during the calendar year, any merit increase you may
receive will be pro-rated accordingly.

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Military Leave
Eligibility for Active Military Leave: The Company provides military leave for all employees,
except temporary employees, who leave employment to serve voluntarily or involuntarily in the
uniformed services, in time of peace or war, as required by the Uniformed Services Employment and
Reemployment Rights Act (USERRA). Employees returning from duty in the uniformed services
ordinarily will be reinstated to the positions that they would have held had they remained
continuously employed, provided they return to work or apply for reinstatement in accordance with
the provisions of USERRA.
Notice: Employees must provide their managers with advance notice of military service. Notice may
be given in writing or orally by the employee or by a military officer.
Pay Differential and Benefits Continuation for Employees on Active Military Leave:
Employees serving in the uniformed services, including employees on Active Duty, Full-time
National Guard Duty and other service covered by USERRA, shall be eligible to receive up to two
years of pay differential and benefits continuation as more specifically set forth below. In order to
receive military pay differential and benefits continuation, the employee must provide the manager
with a copy of Military Orders including a summary of all military pay and any other allowances to be
received.
Paid Time Off for Military Training and Fitness Examination: Time off is available for the
following types of military duty, which can be voluntary or involuntary.

Military training (e.g., annual training duty)

Absence from work for an examination to determine a person's fitness for active duty,
training or National Guard duty

Annual training duty will usually last two or three weeks. The Company gives up to ten days paid
time off to these employees per calendar year. These days may or may not be continuous. Part-time
employees are also eligible for this pay provided these are regularly scheduled work days. Time off
for annual training should be recorded in Time Management. Receipt of paid time off under this
section does not count toward the leave allowances for active military leave.
Amount of Leave Available: A regular employee is entitled during his or her tenure with the
Company to take an aggregate of up to five years of military leave, excluding the time off for military
training and fitness examination. In exceptional circumstances, the five-year limit will be suspended.
Contact the Director of Corporate Employee Relations for additional information.
Status of Pay & Benefits During Active Military Leave
Introduction: All employees, except those employed on a temporary basis, are entitled to take a
military leave of absence. Employees away on military leaves are eligible to continue benefits as
described in this section.

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Status of Pay for Leaves Two Years or Less

Definition of Pay - The Company will continue regular base pay* in effect on the employees last day
worked before beginning Military Leave after deducting all Military pay and allowances, including incentives.
This Liberty Mutual salary continuation offset by all Military pay, is hereafter referred to as "Liberty
Mutual Pay" and will remain effective during military leaves lasting two years or less. An employee is
eligible for an aggregate of two years' Liberty Mutual Pay during his or her tenure with the
Company. The regular base pay on which the Liberty Mutual Pay is calculated will remain the same
for the duration of the military leave and will be adjusted for changes in the Military pay and
allowances. In the event that an employee is called back up for military service and has not reached
the two year maximum, Liberty Mutual Pay will be recalculated based on the regular base pay in
effect on the last day prior to this subsequent leave.
Regular base pay is determined as follows:

For non-sales employees who are:

o

Full-time (exempt and non-exempt) or part-time exempt, weekly pay is defined as

1/52nd of your base rate of annual salary on your last day worked prior to military
leave.
Part-time non-exempt, weekly pay is defined as your regularly scheduled hours per
week as of your last day worked prior to military leave times your hourly rate of pay.

For sales employees who are:

o

Full-time (exempt and non-exempt) or part-time exempt, weekly pay is defined as

1/52nd of your base rate of annual salary as of your last day worked prior to military
leave plus 1/52nd of sales bonuses and/or commissions paid to you in the most
recent 12-month period prior to military leave.
Part-time non-exempt, weekly pay is defined as your regularly scheduled hours per
week as of your last day worked prior to military leave times your hourly rate of pay
plus 1/52nd of sales bonuses and/or commissions paid to you in the most recent 12
month period prior to military leave.
Personal Insurance field sales representatives who have held the sales position for
less than 12 months and are:
o
o

Exempt, weekly pay is defined as 1/52nd of your salary on your date of

hire.
Part-time non-exempt, weekly pay is defined as your regularly
scheduled hours per week as of your last day worked prior to military
leave times your hourly rate of pay on your date of hire.

Eligible employees are required to submit a copy of their Military orders to their manager as
confirmation of military service, military pay and allowances, as well as any subsequent changes
thereafter. The manager needs to then promptly fax related documents to HR Support Center at 603559-9446.
Liberty Mutual Pay will be paid by direct deposit only. Any impacted employee who is not currently
set up for direct deposit, must do so prior to starting Military Leave. Payments will be issued on the
same schedule as the Companys regular full-time and part-time payrolls.
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Liberty Mutual Pay will cease upon the earliest of the following: (i) the date the employee returns to
work; (ii) the date of receipt of notification that the employee has been released from military duty
and is not returning to work; or (iii) the date the employee reaches the two year aggregate limit for
receipt of Liberty Mutual Pay.

Status of Flex Benefits

Leaves Two Years or Less
For military leaves expected to last an aggregate of two years or less, coverage for the employees
flexible benefits (medical, dental, vision, life insurance, disability coverage, and long-term care) will
remain in force, with the employee share of the benefits cost being deducted from Liberty Mutual
Pay. All Benefit Plan provisions will apply, including any exclusions for "acts of war".
If an employees Liberty Mutual Pay is less than the required employee contributions needed to
continue coverage, the employee must contact the Payroll Department to make alternative
arrangements for payment.
If the employee wishes to suspend coverage during leave, he or she must submit a written request to
the HR Support Center before the leave begins.
Leaves More Than Two Years
Continuing Health Care Coverage
If the military leave is expected to last more than an aggregate of two years, the employee may opt to
continue medical, dental, vision and reimbursement account coverage for up to 24 months (after the
expiration of two years or for the period of military service, whichever is shorter). The employee will
be required to pay 102 percent of the premium charges. For enrollment and billing information,
contact Benefits Express at 1-866-515-2426.
Thrift-Incentive Plan/ Retirement Benefit Plan: Thrift-Incentive Plan (TIP) contributions will
continue for the first two years of Military Leave and will be based on Liberty Mutual Pay received. If
the employee wishes to suspend TIP contributions during leave, he or she must contact Benefits
Express at 1-800-758-4460. TIP contributions will cease after two years of Military Leave. However,
contributions will resume automatically upon the employees return to work.
Returning military personnel have the right to make up contributions to the Plan for the length of
the period they were on military duty. There is a grace period for which employees can make
retroactive contributions - the period is calculated by multiplying by 3 times the length of leave, or 5
years, whichever is shorter. The maximum amount of the elective deferrals or employee
contributions is the amount the veteran could have contributed under the terms of the plan during
the period of military service. Libertys matching contributions will track to the employees
contributions. Employees will continue to accrue vested service in the Retirement Benefit Plan while
on leave.
TIP loans will be suspended while the employee is on Military Leave, and the loan will be reamortized upon return from leave. The interest rate applied to the loan while on leave will not
exceed the amount permitted by law.

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Continuing Life Insurance

Employee Life Insurance: At the end of two years, an employee's coverage will end. An employee
is eligible to convert from group coverage to an individual whole life policy written by the Liberty
Life Assurance Company of Boston. An employee must convert coverage within thirty-one days
following the end of group coverage by writing directly to: Liberty Life Assurance Company of
Boston, Attn.: Group Insurance Department, P.O. Box 1525, Dover, NH 03820-1525. In addition,
an employee must pay the first premium payment within the thirty-one day period. If an employee
converts within the thirty-one day period, the employee may purchase the insurance without a
physical examination.
Dependent Life Insurance: At the end of two years, coverage for an employee's spouse will end. A
spouse is eligible to convert from group coverage to an individual whole life policy written by the
Liberty Life Assurance Company of Boston. A spouse must convert coverage within thirty-one days
following the end of group coverage by writing directly to: Liberty Life Assurance Company of
Boston, Attn.: Group Insurance Department, P.O. Box 1525, Dover, NH 03820-1525. In addition, a
spouse must pay the first premium payment within the thirty-one day period. If a spouse converts
within the thirty-one day period, the spouse may purchase the insurance without a physical
examination. Coverage for dependent children cannot be converted and ceases at the end of the two
years.
Use of Flexible Time Off: In addition to time off for military duty, the employee is also entitled to
take FTO for which he or she otherwise qualifies. No employee will be required to use FTO to cover
a military obligation; however an employee may opt to use FTO to cover all or part of the leave that
exceeds two years.
The annual FTO carryover limitations will be waived when an employee's absence due to military
leave makes it impractical for the employee to use sufficient FTO to avoid forfeiture.
Flexible Time Off Accrual: Full-time employees on military leave will not accrue FTO during any
month in which they do not work at least one day.

Workers Compensation
Workers' Compensation (WC) benefits are designed to continue a portion of your pay when you
sustain a work-related illness or injury which requires you to lose time from work. WC benefits also
pay your medical expenses resulting from a work-related injury or illness, even if you lose no time
from work. Please refer to the Corporate Safety section in the Employee Center.

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Office Procedures
Libertys general office procedures include the following:

Dress Code
The way in which we dress is a factor in how our customers and co-workers evaluate our quality and
professionalism. Although we will not discourage the individual taste that makes each of us unique,
we do expect our employees to evaluate their dress to project a professional business image. Our
expectations are based on working conditions, location, hours, and the effect your appearance will
have on colleagues, customers and others who see you as a representative of the Company. There
may be certain occasions where more casual business attire is appropriate, such as meetings,
recognition celebrations, and certain office gatherings and events.
Managers are responsible for providing guidance on what might or might not be considered
appropriate on a case-by-case basis.
In all circumstances, however, our expectations will continue to be based upon the desire to project
an image as a quality provider of services to meet customer needs.

Office Hours and Workplace Flexibility

All employees are expected to work their regular workweek, unless otherwise authorized by their
manager. The standard workweek for full-time employees is 37.5 hours. We must be able to depend
on you to report to work regularly and on time. Refer to the Time Off section in this handbook for
information about scheduling time off.
In order to service the needs of our customers effectively, and in the interest of providing
consistency across the country, the Company has standard business hours of 8:00 a.m. to 5:00 p.m.
Branch Sales offices and Call/Contact Centers may have different hours of operation.
In general, employees must be present during their office's designated core hours, usually between
9:00 a.m. and 3:15 p.m., however, some offices or departments may offer alternative work schedules
which allow employees to vary the time they arrive at and depart from work and/or the days on
which they work. Each department establishes its own requirements based on considerations such
as, the need to ensure adequate staffing and telephone coverage during normal business hours and
the degree of independence inherent in particular positions. Alternative work schedules are generally
established and agreed upon by the employee and manager.
If the office does not open, opens late or closes early, employees will be paid for the time they would
have worked provided:

It is a scheduled work day; and

The closing/delayed opening occurs during the employees normal working hours.

During an office closure, exempt employees are not expected to come to the office, but are expected
to perform their work to the extent practicable, if they have the appropriate tools/resources available
to them, and if they can do so safely.

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For more information, refer to Time Management On-Line Help Instructions (Employee
Entering Hours Worked during an Office Closure).

Media Inquiries
To ensure that anyone talking to a reporter accurately represents the Liberty brand, only employees
who receive approval from Corporate Communications and their manager are permitted to speak to
the media on behalf of the Company. Liberty has developed guidelines on How to Handle the
Media for both U.S. and International employees.
Liberty's policy is to respond within the reporter's deadline (preferably within 24 hours). Please refer
any calls received in the office to Corporate Communications as soon as possible.

Solicitations
Unrestricted solicitation and distribution of literature can be disruptive to the business environment
and pose security risks. Employees are prohibited from soliciting during their working time or
during the working time of other employees, or from distributing materials in work areas at anytime.
Employees are also prohibited from using Company resources, including e-mail, computer and
internet to solicit for a personal business or charity; or making personal solicitations to Liberty
customers, vendors or business partners, without express approval from the Office of Corporate
Compliance.
Solicitation related to gambling of any kind, including raffle tickets, is prohibited at all times on
Company premises. Solicitation by vendors or their representatives on Company property is
prohibited unless it is related to an activity sanctioned or sponsored by the Company, such as the
annual Give with Liberty campaign. Persons not employed by Liberty Mutual may not distribute
literature or other materials on Company premises. For more information about Liberty's policy
regarding vendor and employee solicitation on Company premises, contact the Director of Corporate
Employee Relations.

Security
For security purposes, you might be asked to show your Company-issued identification card when
entering or leaving the building. Visitors may be asked to wear temporary identification badges for
the same reason.
Any visitor or employee removing packages, products or equipment from Company premises may be
required to obtain and show a property pass or receipt. All packages are subject to inspection.
To reduce the possibility of theft of personal property, your best protections are to lock your
valuables in your workstation when you leave (even for a short time) and to secure your belongings
when you leave your office. The Company cannot be responsible for personal property.
Any theft or the presence of suspicious persons in the building should be immediately reported to
your manager. Do not try to handle it yourself.

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In order to ensure the security and safety of all our employees and visitors, no weapons of any kind
will be allowed in our offices, on any Company premises, at Company sponsored events or while
conducting Company business, with the exception of duly authorized law enforcement personnel
performing their duties, and to the extent permitted by applicable law.

Visitors
Visits by former employees, relatives, or friends during normal office hours can be distracting to
other employees. Employees are expected to keep these types of visits to a minimum.

Smoking
Liberty Mutual is committed to providing a safe, healthful and smoke-free workplace for its
employees. Smoking may be permitted in designated areas outside the office or building, but smokers
are asked to be considerate of others. Electronic cigarettes are subject to the same limitations as
regular cigarettes. If you violate this policy, you will be subject to disciplinary action including
suspension without pay or discharge.

Employee Safety
As a leader in the field of safety, Liberty Mutual is committed to providing a safe and healthful work
environment for its own employees. With your assistance, we can use our resources to identify and
control work-related hazards. All employees are encouraged to participate by bringing hazards and
suggestions to the attention of their manager, their Risk Control Committee, or their human
resources representative. Ergonomic risk factor management, driver education, emergency
preparedness, chemical hazard communication program, and prevention of general office related
exposures are some of the components of our comprehensive safety program. Please refer to the
Employee Safety site for more detailed information.

Work Related Injuries & Illnesses

If you are injured or become ill on the job, you should immediately report it to your manager or
other responsible person designated by your department, no matter how minor it may seem at the
time. This ensures that the Company can assist you in obtaining medical treatment and aids the
Company in its investigation of the cause of your on the job injury or illness. If you choose to delay
reporting your injury, it may jeopardize your claim for workers' compensation benefits or result in
delayed payment of benefits. Please refer to the Employee Safety site for more detailed
information.

Cell Phone and Other Mobile Device Use While Driving

The use of cell phones or other remote devices while operating a motor vehicle on Company
business, regardless of whether the vehicle is Company-owned or employee-owned is subject to
Federal, State or Local regulations and is further restricted by Company policy. You should pull over
to a place where your vehicle can be stopped without risk to you or others in order to place a cellular
phone call or use a remote device. If it is not possible to pull over, a hands-free device must be used
to place a cellular phone call. For further information see the Mobile Device Use Policy for
Drivers.

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Workplace Disturbances
Liberty Mutual will not tolerate the threat of physical harm, infliction of physical harm or any act of
violence to or by employees in the course of performing work-related duties on behalf of the
Company, whether the intimidation is in person, in writing, via telephone or in another form.
If, in the course of work, you are threatened with physical harm or are physically harmed, or become
concerned about your safety or the safety of others as a consequence of intimidation, coercion, actual
violence or any other similar behavior, you should notify one of the following individuals
immediately so that the Company may investigate your concerns promptly and take any further
action necessary:

your Department Manager

your Office Operations Manager

your Human Resources Representative

the Highest Ranking Department Manager in the Division, Region, or Area; or your business
unit's Risk Manager

Director, Security Operations (Boston)

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Employee Services and Programs

In addition to the health and welfare and retirement benefits as described in the Compensation &
Benefits section in the Employee Center, Liberty offers the following employee services and
programs:

Employment References, Mortgage and Credit Verification

Requests from prospective employers, banks or other lending institutions seeking verification of your
employment and salary are handled confidentially. Liberty Mutual has contracted with The Work
Number, a national employment verification service, to streamline and expedite the process.
What are the benefits of The Work Number service?

Faster, more efficient, and more complete responses to employment verification requests
Increased security of sensitive salary information
Standardized verification procedures
Service available 7 days a week/24 hours per day
An audit trail to insure proper verification procedures

What Information will be provided to a Lender / Verifier?

VERIFICATION TYPE
Basic

INCLUDES

Basic Plus

First name, middle initial and last name spelled

out
Employment status - active, inactive, etc.
Most recent start or termination date
Total time with the Company
Most recent job title
All Basic information PLUS:
Total rate of pay this includes YTD salary and
2 years of historical pay

What do I need to do to get my employment and / or income verified?

The first step is to speak with your lender /verifier and let them know that Liberty Mutual uses The
Work Number. You can provide them with The Work Number website:
www.theworknumber.com or the toll-free number (800) 367-5690.

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What does the lender need from me to access verification information?

For this type of information

Basic

Basic Plus
If requested by the lender

Provide the lender/verifier with:

1. The Work Number toll free number (800) 367-5690 or
website www.theworknumber.com
2. Liberty Mutual Employer Code*: 10667
3. Your Social Security Number
1. The Work Number toll free number (800) 367-5690 or
website www.theworknumber.com
2. Liberty Mutual Employer Code*: 10667
3. Your Social Security Number
4. A Salary Key SEE INSTRUCTIONS BELOW

*Please note: The Liberty Mutual Employer Code (10667) encompasses all Liberty Mutual Insurance
Group employers with employees in the U.S.
How do I create a Salary Key?
You can do this using the internet site (recommended) or on the phone. Following are
instructions for both:
Internet Instructions
Note: Upon your first login to the website, youll need to complete the Security
Enrollment. When prompted, click on Enroll Now and follow the instructions.
Go to www.theworknumber.com.
Click on I am an Employee and then click Enter Site.
In the Employee Name or Code field, enter 10667 and then click Log In.
On the next screen, select I want to provide proof of employment AND income.
You will be prompted with another login screen specific to Liberty Mutual. In the User ID
field, type your Social Security Number (no dashes), click Continue.
6. When prompted, enter your PIN and click Log In. Your PIN will initially be the last 4
digits of your social security number. You will be prompted to change your PIN once you
are in the system. Do not give your PIN to a verifier.

1.
2.
3.
4.
5.

If the PIN does not work, click on the link Forgot your PIN? This will ask you a series
of questions in order to identify you and log you into the site.
7. Once on the main page click on Salary Key tab, then New Salary Key.

Record the six-digit Salary Key for future reference. This key is to be given to the
lender/verifier in order for them to access the Basic Plus Income Verification.

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Phone Instructions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Dial The Work Number Customer Service Line: (800)367-2884.

Select a language.
Listen to The Work Number instructional message.
When prompted to enter your Employer Code enter 10667. The system will confirm that this
is for Liberty Mutual and ask you to confirm by saying Yes or pressing 1.
When prompted, say Yes or press 1 to continue on to the verification
Say or enter your SSN
Say or enter your PIN. This will initially be the last 4 digits of social security number - you will be
prompted to change your PIN once you are in the system. Do not give your PIN to a verifier.
If you forgot your pin, press 0 for assistance.
When prompted, say Income or press 1 for the Salary Key information.
When prompted with the question Would you like to create a salary key? Say
Create or press 1.
The Salary Key will be voiced to you over the phone.

Record the six-digit Salary Key for future reference. This key is to be given to the
lender/verifier in order for them to access the Basic Plus Income Verification.
How many Salary Keys can be active, and how long are they valid?
You can have a maximum of three keys active at one time. Each key can be used only once, by one
lender / verifier. The keys are active for six months before being deleted from the system.
How much does the service cost?
There is no cost to employees or former employees. Some verifiers may be charged a small amount
for The Work Number services. As an alternative, you may access the service and print an
Employment Data Report which may be accepted by some verifiers.
How do I request a free Employment Data Report?
An Employment Data Report can be obtained by logging in to the Employee section of The Work
Number or by calling 866-604-6570.
What about other types of requests? Where can I go with questions?
If you have any concerns about the salary information provided, you may contact The Work Number
or HR Support Center. Other requests not covered above, should be directed to the HR Support
Center and will require your written authorization for information release.

The Work Number at www.theworknumber.com or by phone at 1-800-367-2884

HR Support Center or by phone at 1-877-LMG-HRSC (1-877-564-4772) or by email
HRSupportCenter@LibertyMutual.com.

Employee Referral Program

The Employee Referral Program provides an opportunity for employees to refer qualified candidates
from their personal and professional networks to positions at Liberty. Candidates should be both
qualified for the position and a good fit for our companys culture and philosophies.
Candidates can be referred to any position posted to the Job Posting Portal.
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Why refer?
At Liberty, we behave with integrity; we treat people with dignity and respect; and, we aspire to
differentiate ourselves through exceptional service to our customers. Its this shared commitment to
our mission and these three guiding principles that create a culture of performance and growth. By
participating in the Employee Referral Program, you help identify individuals who will succeed in our
culture and add to the success of our company.
Who can refer?
All active regular full-time and part-time employees may refer except the following:

Employees in grade equivalency 19 and above.

Employees who will have a direct responsibility for supervision of the person hired into the
open position.
Employees involved in the hiring process for the open position.

Which Candidates are Not Eligible to be referred?

Current employees of Liberty Mutual or a subsidiary. Moving between companies is a

transfer, not a new hire.
Former employees of Liberty Mutual or a subsidiary.
Temporary agency or contract workers who have worked at Liberty Mutual at any time.
Any candidate who has been referred by another Liberty Mutual employee within the past 6
months.

How do I refer a candidate?

To participate in the Employee Referral Program, you must formally submit your referral candidate
through the Refer a Friend link on the job posting in the Job Posting Portal.
You will be prompted to enter basic contact information about the candidate. You will also be asked
to support your referral with an explanation of why you think this individual will be a good fit for a
position with Liberty. The candidate will receive an email indicating that you have referred him/her
for a specific position with Liberty, and the candidate will be prompted to complete a job application
for that position.
If a candidate has already completed a job application for the position, you are still able to submit
him/her as a referral. Simply find the job number on the Job Posting Portal and complete the referral
information. You must use the same email address for the candidate that the candidate used when
completing his/her application in order for referral to go through.
A job must appear in the Job Posting Portal in order to accept referrals. If a job is no longer visible
on the Portal, referrals will not be accepted for that position.
Once a referral is considered active in the Hiring At Liberty (H@L) system, the referrers name is
tied to the candidates profile as the referral source for 6 months. If the candidate applies to any
other job and is hired within the 6 month timeframe, the referrer will still be eligible for a referral
award if the position the candidate is hired into offers an award.

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Employee Referral Program Awards

Not all positions offer referral award bonuses.

The Employee Referral Awards Table is a guideline for the bonus amount.
If a position is eligible for a referral award bonus, that bonus amount will be listed in the Job
Posting Portal. Offering an award is at the discretion of the group into which the candidate
is hired.
Business units and departments may offer special awards.
Awards are considered taxable income.
Awards are not given until the new hire has been employed for at least 90 days.
Awards are only made to current employees: both the hired candidate and the referring
employee must be employed at the time the award is paid.
Awards will only be paid to employees whose referral candidates profile in H@L is tied to
the employee. Employees who submit referrals outside of the Employee Referral Program
will not be eligible for the referral bonus award.

If the referred candidate is hired and you made the referral, you will be notified by the hiring contact.
For additional information regarding the Employee Referral Program, consult your manager or your
HR Representative.

Liberty Mutual Club

The Liberty Mutual Club is an employee organization which is active in some large offices. In offices
with a club, there is a Club representative who, along with the Office Operations Manager,
coordinates social and recreational events for all employees. For more information, please contact
your local Club representative or the Club Business Manager in Corporate Employee Relations.

Liberty Mutual Scholarship Program

The Liberty Mutual Scholarship Program provides children of eligible employees with opportunities
to be selected for scholarships for college study. All phases of the program (including the selection of
recipients) are administered by the National Merit Scholarship Corporation (NMSC), an independent,
nonprofit organization.
Only high school students who are sons and daughters of regular full-time and regular part-time
employees of Liberty and its subsidiaries can compete for these scholarships.
Students also must meet all requirements for participation in the Merit Program that are published in
the PSAT/NMSQT Student Bulletin, updated annually and distributed to students through their high
schools.
Students also must be a U.S. citizen; or, if not now a citizen, a permanent U.S. resident (or have
applied for permanent residency) and be in the process of becoming a U.S. citizen.
High school students competing for scholarships must take the PSAT / NMSQT test in their junior
year, and meet the requirements for entering the competition. These requirements are explained in
the PSAT / NMSQT Student Bulletin distributed at school. Winners are chosen by NMSC. Winners
receive scholarships for up to four years of college.
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Further information on the program can be obtained from Corporate Employee Relations or the
National Merit Scholarship Corporation, 1560 Sherman Avenue, Suite 200 Evanston, IL 60201-4897.
The National Merit Scholarship's phone number is (847) 866- 5100 and their web site is
http://www.nationalmerit.org.
Detailed information and applications are available each year at the start of the application period.
Liberty Mutual Scholarship Program Timeline:

High School Juniors take the PSAT/NMSQT in October of their Junior year.

Parents of High School Juniors submit applications between August and February.

NMSC tracks students during their Senior year and selects finalists on or before December
31st of their Senior year.

NMSC contacts finalists selected to receive a scholarship in March or April of their Senior
year.

NMSC contacts finalists who will not receive a scholarship in May of their Senior year.

Students start College in September following graduation from their Senior year of High
School.

NMSC pays scholarship directly to Colleges each September.

All selections are made by NMSC and all communication is between NMSC and the
students.

Past Service Credit Program

Past service credit is the time credited to a full-time or part-time employee who has prior service with
Liberty. Employees currently classified as a temporary or as a cooperative education student are not
eligible to receive past service credit; however, their tenure may count towards past service credit if
they later become regular employees.
Application of Credit: Any approved past service credit will apply immediately upon reemployment with respect to the following programs.

Flexible Time Off

Personal Leave of Absence
Severance Pay
Anniversary Recognition
Tuition Reimbursement

Past service credit is credited in true months, i.e. employee hired on 1/9/2014 will have one month
of service credit on 2/9/2014.
Your manager will apply the past service credit when you are re-employed. See your manager or
human resources representative if you have questions about eligibility or the calculation of your past
service credit.

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Employees are responsible to monitor their personal FTO accrual information. If, as a re-hire, you
believe that your accrual information is inaccurate based on your past service, please discuss with
your manager immediately. Employees are responsible for providing evidence of prior service
including all months of employment, where records are not available to the Company. Past service
credit will be provided on a prospective basis once verified.
Information on how the Short-Term Disability Plan, Retirement Benefit Plan, Thrift-Incentive Plan,
and post-retirement Medical, Dental, and Life benefits treat Credited Service is found in the
respective Summary Plan Description for each plan as set forth in the Benefits section of the
Employee Center.

Liberty Listens Program

If you have a question or complaint, you generally should consult your manager or human resources
representative. There may be times, however, when you do not wish to discuss your issue directly
with your manager or human resources representative and would prefer to consult with Corporate
Employee Relations. In those situations, the Liberty Listens Program provides a formal procedure
through which you may communicate directly with management.
To direct a question, concern, or comment to Corporate Employee Relations, submit your inquiry
via e-mail. Confidentiality will be maintained at your request, consistent with the need to conduct an
adequate review of the issues presented. Liberty Listens will provide you with a response generally
within 15 working days. Liberty Listens helps keep management informed about employee issues,
and facilitates the resolution of concerns that otherwise might go unnoticed.

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Termination of Employment
As you were informed when you completed your application for employment, Company employees
are employed at will. This means that an employee may end employment at any time for any reason,
with or without notice, and that the Company similarly may dismiss an employee at any time with or
without cause or notice.

Resignation
If you decide to resign, you should submit to your manager a letter of resignation that states when
your last day of work will be. If desired, you may also include your reasons for leaving. After you
have submitted your resignation, we may contact you to conduct an exit interview and review such
matters as final pay and the continuation of benefits.

Involuntary Termination
Policy Violations and Misconduct
Company policy calls for the discipline or termination of employees who fail to comply with the
policies expressed in this Handbook or elsewhere by the Company in writing or who engage in other
serious misconduct (whether in the workplace or not) that is inconsistent with the standards of
behavior that we expect of all employees. Disciplinary action for policy violations or other
misconduct may include, without limitation, verbal warning or coaching, written warning (including,
"one time final warnings), unpaid suspension or termination. Terminations for misconduct or policy
violation are generally considered for cause" for purposes of the Liberty Mutual Severance Pay Plan,
and employees terminated for cause will not be eligible for Severance Benefits as set forth in the
Summary Plan Description.
Performance
As noted in the Addressing Ineffective Performance section of the Performance Expectations,
your employment may be terminated for ineffective performance in the Companys sole discretion,
with or without corrective action steps, and with or without advance notice.
Immediate Termination
Although the Company usually will try first to counsel employees who are not meeting performance
expectations, there are some performance failures which are so severe and some instances of
employee misconduct which are so serious that, in the Companys sole discretion, they warrant an
employee's discharge upon the first occurrence. In such cases, or where termination results from job
elimination or job relocation, termination may occur immediately or at any time thereafter, with or
without advance notice.
Termination Review
Discharged employees may have the circumstances of their termination reviewed upon written
request to the Executive Vice President, Chief Human Resources and Administration Officer,
Liberty Mutual Insurance Company, 175 Berkeley Street, Boston, Massachusetts 02116.

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Severance Pay Plan

The Liberty Mutual Severance Pay Plan is designed to provide a severance pay benefit to certain
employees who face involuntary termination from their jobs, provided the employee executes a
release of all employment-related claims in favor of the Company, its parent companies, subsidiaries
and affiliates, and their officers and employees. The actual amount of the severance benefit will vary
based on the employee's length of service, grade level, salary and performance. The Severance Pay
Plan summary plan description and the Plan document contain more detailed information. If there
are any discrepancies between the summary plan description and the Plan document, the Plan
document will govern.
Corporate Employee Relations is responsible for the administration of this plan. All questions not
covered by the material found on the Intranet site should be directed to Corporate Employee
Relations.

Effect of Termination on Benefits

Most group health benefits will end on your termination date. Please note that payment at the time of
termination for Flexible Time Off accrued but not taken will not extend your employment or your
eligibility for benefits.
For more information about what happens upon termination of your employment, refer to the
Employee Reference: Termination.

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Employee Handbook

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