The eligibility and enrollment rules for the U

Retiree Health Care SPD Effective January 1, 2012
If you accumulate credits and then continue to work for U.S. Bank but do not earn a Year of
Service in a particular year, you will retain your previously accumulated credits but will not
accumulate credits for that year. Future employment in which you have a Year of Service will
result in additional credits, up to the 15-year maximum.
U.S. Bank has reserved the right to increase or decrease the amount of the retiree health care
credit.
Nature of Retiree Health Care Credits and Reservation of Rights to Change
Credits
The credits you accumulate toward retiree health care coverage are not like accounts in a 401(k)
or pension plan. No trust holds these credits, and there is no bank account in which the credits
are deposited. This means that as long as U.S. Bank keeps the credits structure in place in its
Retiree Health Care Program, it will, for bookkeeping purposes, keep a record of any credits you
accumulate. Then, if you are eligible for and enroll in the Program when you terminate, you can
apply the accumulated credits toward retiree health care coverage for yourself and any covered
dependents.
If, however, you do not elect U.S. Bank retiree health care coverage at the time of your
termination or you are not eligible for retiree health coverage when you terminate (for example if
you are not a participant in the active employee Health Care Program at the time of your
termination), your credits are forfeited under all circumstances. Once forfeited, retiree health
care credits are never recovered or restored even if, for example, you return to work for U.S.
Bank. Also credits cannot be paid out to you or used for any other purpose than payment toward
U.S. Bank retiree health care coverage under the Program.
Additionally, U.S. Bank is not obligated to continue either the Program or the retiree health care
credits toward the cost of the coverage. U.S. Bank could, before or after your termination of
employment, terminate the coverage altogether or could amend the Program to eliminate or
change (including reducing) the credits – including any credits you have already accumulated.
This is because retiree health care coverage is not a ‘vested’ benefit and U.S. Bank has retained
its full authority and discretion to amend or terminate the Program.
Interest on Retiree Health Care Credits
Credits are deemed to receive interest payments of 5.5% annually. For example, if you are 45
with 15 years of service as of December 31, 2011, and have a Year of Service in 2011, you have
a $1,200 credit as of December 31, 2011. At the end of 2012, your $1,200 credit from 2011 is
deemed to increase an additional 5.5% ($66) to $1,266. (If you had a Year of Service in 2012
and were employed on the last business day of the year, you would also be deemed to receive an
additional $1,200 contribution on December 31, 2012.) U.S. Bank has reserved the right to
increase or decrease the interest rate.
If you terminate your employment with U.S. Bank and enroll in the Program, your remaining
credit balance (after deductions from the account toward the cost of coverage) as of each
December 31 will be deemed to gain interest at the established interest rate. If you do not enroll
in the Program at termination or if you leave U.S. Bank before you are eligible for retiree health
care coverage, your credits and any deemed interest are lost.
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