Enrollment

Enrollment

How you enroll in the Company voluntary STD Plan depends in part on whether your state has a mandate that requires you to have STD coverage.

Employees in states that do not require STD coverage: To participate in the Company's voluntary STD Plan when first eligible, you must enroll within 30 days of your hire date or the date you increase your hours to 20 or more per week.

If you do not enroll during the initial enrollment period, you can apply for coverage during any future Open Enrollment period.

Employees in states that require STD coverage (other than California): Because your state requires you to have coverage under the state disability program, you are automatically enrolled in the state program. If you choose to enroll in the voluntary STD Plan in addition to the state program, then the voluntary STD Plan coordinates with the state program to ensure that the combined benefit is at a minimum equal to the voluntary STD plan benefit (the state program would pay its benefit, and the voluntary plan would pay any additional amount required to meet the benefit offered by the voluntary plan).

To participate in the voluntary STD Plan when first eligible, you must enroll within 30 days of your hire date or the date you increase your hours to 20 or more per week.

If you do not enroll during the initial enrollment period, you can apply for coverage during any future Open Enrollment period.

California employees: California requires you to have coverage under your employer's plan or the California disability program. If you waive voluntary STD Plan coverage, you will be automatically enrolled in the state-mandated disability program. Keep in mind, however, that the Company's voluntary STD Plan generally provides greater benefits than the California disability program while having a payroll contribution rate that is less than or equal to the state program's contribution rate. If you prefer coverage under the state program, you must notify the Benefits Department in writing that you wish to be covered under the state disability program.

Cost of Coverage

The plan is entirely funded by employee contributions. Contributions are placed into a trust fund, which has been established for the purpose of paying the plan expenses, maintaining the required reserves and also paying any and all fees and expenses that are not paid directly by Canon Medical Systems USA, Inc. The Company will loan funds to the Trust Fund, if necessary, to pay excess expenses of the plan.

Making Changes

During the Open Enrollment period, you can enroll or drop coverage. Your election will be effective on January 1 following the Open Enrollment period.

You may also enroll or drop coverage during the year if you have a qualified status change. The following events qualify as a change in your status:

• Marriage, divorce, or legal separation.
• Birth or legal adoption of a child.
• Death of a spouse or child.
• A change in your or your spouse's employment, resulting in a loss of coverage.
• A reduction or increase in the hours of employment.

Coverage will be effective on the first day of the second calendar quarter following the date you enroll.

California employees: If the plan is amended, you may discontinue voluntary STD coverage by notifying the Company in writing within 10 days following the effective date of the plan change. If you drop coverage under this plan, you will be automatically enrolled in the California state-mandated disability program.

When Coverage Begins and Ends

Your participation will begin:

• If you apply for coverage during the initial enrollment period, your coverage will begin after you complete one day of active employment following your hire date or the date you become eligible for this plan.
• If you enroll during the Open Enrollment period, coverage will begin on the following January 1, provided you are actively at work.
• If you are not actively at work when coverage is scheduled to start, coverage will begin after you return to active status and complete one full day of employment.

Your participation will end on the earliest of the following dates:

• The date this plan terminates.
• The date you are no longer in an eligible class or your class is no longer included for benefits.
• The date last day for which any required employee contribution has been made.
• The date your employment terminates. 
• The date you are no longer an eligible employee.

For California employees, your coverage will also end if for any of the following:

• The beginning of the next calendar quarter following the date you have given written notice of your intention to withdraw from the plan (or in accordance with applicable state mandated rules following your written notice). 
• The date a majority of California employees withdraw from the plan.

Continued Coverage During a Family and Medical Leave

If you are on an approved family or medical leave of absence, you may continue your coverage for up to 12 weeks from the date your absence begins, subject to the following:

• The authorized leave is in writing
• You continue to make your short term disability contribution
• If you become approved for a short term disability while on leave, your benefit will be based on the earnings in effect on the date before your leave begins
• Your participation will end immediately if any of the following events occur:
  • Your return to work
  • This plan terminates
  • You are no longer in an eligible class
  • You fail to make the required contribution when due to the Company
  • Your employment with the Company ends