2010 Benefits Brochure

Benefits Overview 2010

Table of Contents

Your Comprehensive BenefitsFreddie Mac’s Benefits ........................................1

Eligibility ..................................................................1

Domestic Partner Coverage ....................................1

Benefits Effective Dates ..........................................2

NetBenefits® ..........................................................3

Freddie Mac’s Total Rewards ..............................4

Your HealthFreddie Mac’s Flexible Benefits ..........................7

Healthy Lifestyles ...................................................7

Your FlexDollars .....................................................7

Online Health Assessment .....................................8

Default Coverage When You First Enroll ..................9

Health Care ........................................................11

Medical Coverage .................................................11

Prescription Drug Coverage .................................15

2009 Summary of Medical Benefits .....................23

Aetna’s HealthConnections ...................................23

Dental Coverage ...................................................24

Vision Coverage ..................................................25

Your Money Savings, Investment, and Retirement ...............27

Thrift/401(k) Savings Plan .....................................27

Pension Plan .......................................................28

Flexible Spending Accounts .................................28

Income Protection Benefits ...............................32

Disability Coverage ..............................................32

Short-Term Disability (STD) Coverage ...................32

Long-Term Disability (LTD) Coverage ....................32

Group Term Life (GTL) Insurance .........................33

Accidental Death & Personal Loss

(AD&PL) Insurance ...........................................34

Aetna’s Group Universal Life

(GUL) Insurance Program .................................34

Business Travel Accident (BTA) Insurance ............35

Beneficiary Information .........................................35

Your TimeTime Away From Work ......................................37

Vacation Time ......................................................37

Holidays ..............................................................38

Sick Leave ...........................................................38

Family and Medical Leave ....................................39

Short-Term Disability Leave ..................................39

Adoption Leave ...................................................39

Jury Duty Leave ...................................................39

Bereavement Leave ..............................................39

Military Leave .......................................................39

Your LifeWork/Life ............................................................41

Home Benefit Program ........................................41

Freddie Mac Wellness Center ..............................41

Employee Assistance Program (EAP) ...................41

LifeWorks® ............................................................42

Back-Up Child/Elder Care ...................................42

Lactation Program ...............................................43

Adoption Expense Reimbursement Program ........43

Long-Term Care (LTC) Coverage ..........................44

Educational Assistance Program ..........................44

Transportation Benefit ..........................................45

Concierge Services ..............................................45

Fitness Center & Regional Health Club

Reimbursement ................................................45

In ClosingMaking Changes to Your Coverage ..................47

Annual Enrollment ................................................47

Status Change ....................................................48

Appeals ..............................................................49

In Addition ..........................................................50

Freddie Mac provides a comprehensive benefits package designed to help meet your needs — both now and in the future.

When you first become eligible for benefits, you may select the plans that best meet the needs of you and your family. Thereafter, you may make changes during each Annual Enrollment period. Or, if you experience a status change such as a marriage or divorce, or the birth or adoption of a child, you can make changes to some of your benefits during the year.

Your Comprehensive Benefits

EligibilityGenerally, you are an eligible participant in Freddie

Mac’s benefit plans if Freddie Mac classifies you as

an active, regular, full-time or part-time employee

who is regularly scheduled to work at least 20 hours

per week, as defined in Corporate Policy No 3-221.

In addition to yourself, you may also enroll eligible

family members or a same-sex domestic partner

and his or her eligible children (subject to certain

requirements) in the Freddie Mac Medical, Dental,

Vision, and/or Long-Term Care Plans. Eligible family

members include your spouse and dependents

who meet the eligibility requirements as described

in the relevant Summary Plan Descriptions (SPDs)

and program summaries. Certain programs may

have distinct eligibility requirements, which are

outlined in the relevant SPDs, program summaries,

plan documents, corporate policies, or corporate

procedures. You may access program information

on the NetBenefits®, HomeFront, and Total

Rewards Web sites.

Domestic Partner CoverageWith the Freddie Mac medical, dental, and/or vision

Plans, you may choose to cover your domestic

partner — an individual of the same sex, with whom

you share a committed and exclusive relationship.

If you elect medical, dental, or vision coverage for

a domestic partner and his or her eligible children,

you will pay the contribution cost for the domestic

partner’s coverage on an after-tax basis, and part of

its value and the value of coverage for the domestic

partner’s children will be taxable to you as imputed

income. For complete details about domestic

partner eligibility requirements, coverage options,

tax consequences, and participant obligations,

refer to the Domestic Partner Summary, posted

with other materials on the NetBenefits (on the

Reference Library Tab), HomeFront, and Total

Rewards Web sites. We strongly encourage you to

read this information carefully before electing benefits

Freddie Mac’s Benefits

1

Y O U R C O M P R E H E N S I V E B E N E F I T S Y O U R C O M P R E H E N S I V E B E N E F I T S

for your domestic partner. To certify a domestic

partner relationship and enroll a domestic partner

for coverage, log on to NetBenefits® at https://

netbenefits.fidelity.com.

You may also enroll your domestic partner for Long-

Term Care coverage directly through John Hancock.

Please visit the Long-Term Care page on HomeFront

at www.fhlmc.com/hr/long_term_care.htm for

information on how to enroll. You will be required to

certify the domestic partner relationship.

To be eligible for Medical, Dental, Vision, and/

or Long-Term Care coverage, domestic partners

must certify that they are in a committed, exclusive

relationship; they cannot be married; and must

consider themselves life partners. They also must:

n Share a primary residence

n Be financially interdependent

n Have joint responsibility for one another’s

common welfare

If this relationship ends or changes so that it no

longer meets Freddie Mac’s definition, you are

required to notify the Freddie Mac Benefits Center.

Benefits Effective DatesYour benefits will become effective on the

following dates:

First Day of Hire

n Group Term Life (GTL) Insurance (Core 1x pay)

n Short-Term Disability (STD)

n Long-Term Disability (Core LTD)

n Business Travel Accident (BTA) Insurance

n Employee Assistance Program (EAP)

n Educational Assistance Program

n Holidays

First of Month Following Date of Hire

n Medical, Dental, Vision coverage

n Group Term Life (GTL) Insurance (Optional buy

up of 2x/3x pay)

n Accidental Death & Personal Loss (AD&PL)

Insurance

n Group Universal Life (GUL) Insurance

n Long-Term Disability (LTD) (Optional buy up

of 10%)

n FlexDollars

One Month of Service

n Employee pre-tax contributions to the Thrift/401(k)

Savings Plan

n Catch-up contributions to the Thrift/401(k) Savings

Plan (for employees 50 years of age or older)

One Year of Service

n Thrift/401(k) matching contributions*

n Thrift/401(k) after-tax contributions

n Thrift/401(k) Basic contribution (discretionary

company contribution)

n Pension Plan (must be 21 or older)

n Home Benefit Program

n Adoption Expense Reimbursement Program

*First day of the month following anniversary date

Other

n Health Care and Dependent Care Flexible

Spending Accounts (FSAs) (effective the first day

of the pay period in which your deduction begins)

n Health Assessment Credits (effective 2 – 4 pay

periods after assessment is completed)

n Vacation**

n Sick leave**

**Will begin accruing during the month of hire if hired between the 1st and 15th of the month. Will begin accruing the following month if hired between the 16th and the end of the month.

2


n Long-Term Care (LTC) Insurance (effective the date

the policy is issued)

n For more information on the effective dates of

your benefits, please refer to the SPDs and

plan summaries located on the NetBenefits®,

HomeFront, and Total Rewards Web sites.

Note: Any benefit deductions and/or credits (if any) will be made as soon as administratively possible; no retroactive adjustments will be made.

NetBenefits®

Day or night, holiday or weekend, you can view and

enroll in your Freddie Mac flexible benefits and your

Thrift/401(k) Savings Plan through the NetBenefits

Web site. Through NetBenefits, you can access

information about your medical, dental, and vision

elections; review your vacation, FSAs, and life and

disability insurance elections; and enroll/change your

Thrift/401(k) Savings Plan investments or view your

statement online.

Through NetBenefits, you can also make new-hire

benefit elections and changes to your benefits if you

experience a status change.

To get to the NetBenefits site, simply click on the

NetBenefits link on the Benefits page on HomeFront

or the Total Rewards Web site. You will be taken

automatically to the login page of NetBenefits, where

you will see prompts to follow. If you would like to

access NetBenefits from home, the URL address is:

https://netbenefits.fidelity.com.

Benefits Overview Guide

This booklet provides a high-level overview of some of Freddie Mac’s programs, policies, and benefits. This document is not a Summary Plan Description and is not a plan document. For more detailed information, visit the NetBenefits, HomeFront, and Total Rewards Web sites.

Manisha’s storyManisha, a new college graduate, recently joined Freddie Mac. Manisha has enrolled in the Aetna Health Fund Medical plan, the Dental plan, and the Vision plan at costs of $50.15, $11.74, and $2.10 per pay period, respectively, for a total of $63.99 per period. However, with Freddie Mac giving her $34.58 in FlexDollars and a $5 Health Assessment credit, the company has reduced Manisha’s per-pay-period cost by 62 percent; she will pay just $29.41 per pay period for full health, dental, and vision insurance.

only $29.413

per payperiod


Our Total Rewards Web site provides a

comprehensive overview of your personalized

compensation and benefits information. To access

your total rewards, go to the Total Rewards Web

site at www.freddierewards.com, where you’ll find

information on your pay, health coverage, vacation,

life insurance, retirement, and many other benefit

programs. These programs, plus your

actual pay, constitute your Total Rewards.

On the Total Rewards site, you will be able to see

both Freddie Mac’s and your contributions to

the following:

n FlexDollars

n Medical coverage

n Dental coverage

n Vision coverage

n Group Term Life (GTL) Insurance

n Accidental Death & Personal Loss (AD&PL)

Insurance

n Group Universal Life (GUL) Insurance

n Short-Term Disability (STD)

n Long-Term Disability (LTD)

n Thrift/401(k) contributions and match

n Basic Contribution (under the Thrift/401(k)

Savings Plan)

n Pension Plan information

n Educational Assistance

n Adoption Assistance

n Relocation Program

n Corporate Bonus Program

n Federal Unemployment Insurance

n FICA

Freddie Mac’s Total Rewards

Valuable Online ToolFreddie Mac’s Total Rewards gives you comprehensive information about your personalized compensation and benefits and links to additional sites to process benefit changes.

4


Group Universal Life InsuranceAetna’s Group Universal Life (GUL) Program offers you and/or your spouse the option to purchase additional term life insurance protection — at after-tax group rates — with a Cash Accumulation Fund that earns tax-deferred interest. You and/or your spouse have access to the CAF through loans and withdrawals.

From the Total Rewards site, you can link to

additional sites to process benefit changes. For

example, if you would like to change your 401(k)

investments, or if you would like to add a newly

eligible dependent to your benefits, simply click on

the NetBenefits link to make the necessary changes.

In addition, you have access to health care providers

and all the benefit plan summaries and forms.

You can access the Total Rewards site 24 hours

a day, seven days a week. All you need is your

username and password. Your username

(your employee ID number) and password

will be mailed to you at your home address

approximately 10 weeks after your date of hire. If

you have any questions regarding the Total Rewards

site, please contact the Freddie Mac

5

Benefits & Payroll Information Line at (703) 918-

5555, Monday through Friday, between 8:45 a.m.

and 5:15 p.m. ET, or send an e-mail to benefits@

freddiemac.com.

Freddie Mac gives eligible employees $34.58 in FlexDollars per pay period to offset health care costs. That’s more than $800 per year. You can get an additional $5 per pay period if you complete an online Health Assessment, raising to $949.92 the total amount given to defray health care-related costs! The company may provide additional FlexDollars to employees with salaries less than $50,000.

Your Health

6

Healthy LifestylesMany of the benefits outlined in this booklet are

offered through Freddie Mac’s flexible benefits plan.

With flexible benefits, you choose the benefits that

best meet the needs of you and your family. Here’s

how it works:

n You choose from a menu of benefit options

to design your personalized benefits program.

n You pay for coverage, with help from

FlexDollars that Freddie Mac provides. You

pay for the cost of your coverage on a pre-tax

and/or after-tax basis, using convenient payroll

deductions.

n You may then periodically update your benefits

as your needs change, during Annual Enrollment

or if you experience a status change.

FlexDollars are payable to you as taxable income in

equal installments each pay period as long as you

are an eligible Freddie Mac employee, to offset the

cost of your insurance premiums.

Freddie Mac’s Flexible BenefitsYour FlexDollars Generally, all eligible full-time employees will receive

$34.58 per pay period to offset the costs of medical,

dental, and vision coverage.

Coverage costs per pay period break down

as follows:

Coverage Cost Per Pay Period

Medical $27.08

Dental $6.25

Vision $1.25

7

Y O U R H E A LT H Y O U R H E A LT H

You will also receive FlexDollars to purchase Group

Term Life (GTL) Insurance coverage for three times

your salary and to purchase Accidental Death &

Personal Loss (AD&PL) Insurance for four times your

salary. FlexDollars for vacation are determined based

on your years of service or by your mid-career hire

status, and your annualized salary as of Aug. 31

each year.

The total amount of FlexDollars you receive is based

on your age, years of service, salary, and number of

hours you are scheduled to work each week. If your

annual salary is $50,000 or less, Freddie Mac will

provide additional FlexDollars per pay period to

make your benefits more affordable.

n $25.00 per pay period (a total of $600 per year)

if your annual salary is less than $35,000.

n $20.00 per pay period (a total of $480 per year)

if your annual salary is $35,000 to $50,000.

Each year during Annual Enrollment, your enrollment

summary on NetBenefits reflects the FlexDollars you

are eligible to receive for the following year.

FlexDollars will appear as a lump sum on your paycheck and are used to offset the cost of your pre-tax benefits. Any unused FlexDollars will be applied to your income.

For example: John receives $48.60 per pay period in FlexDollars. His benefit elections total $82.33 per pay period. John’s FlexDollars offset $48.60 of the cost and John is responsible for the remaining $33.73.

John’s savings = $33.73

Note: If a compensation increase brings your salary to more than $50,000 during the course of the year, the additional FlexDollars will be discontinued.

If you elect more pre-tax options than your

FlexDollars will buy, you authorize Freddie Mac to

deduct money from your pay on a pre-tax and/

or after-tax basis to pay for them. Any unused

FlexDollars become taxable income and will be paid

to you throughout the year, each pay period, as long

as you are an eligible Freddie Mac employee. There

are 24 pay periods in a full calendar year.

If you are a part-time employee (scheduled to work

20 to 31 hours per week), your FlexDollars will

be prorated based on the hours you are regularly

scheduled to work.

Online Health Assessment

Freddie Mac is pleased to offer an online Health

Assessment, available through your Medical plan

provider. Both Aetna and Kaiser Medical plan

participants can use the Health Assessment.

8

Medical FlexDollars $27.08 Medical $62.19

Dental FlexDollars $ 6.25 Dental $ 11.74

Vision FlexDollars $ 1.25 Vision $ 2.10

Group Term Life $ 9.60 Group Term Life $ 6.30

AD&PL $ 4.00 Total Benefit Cost $82.33

Total FlexDollars $48.60 Less FlexDollars ($48.60)

Pre-Tax Benefits Cost $33.73


9

If you complete the online Health Assessment each

year, you will receive a $5 per-pay-period credit

toward the cost of your Medical plan coverage.

If your covered spouse or domestic partner also

completes the Health Assessment, Freddie Mac will

provide an additional $5 per-pay-period credit. The

credits will be applied approximately 2-4 pay periods

following the completion of the Health Assessment.

How It Works

The Health Assessment is designed to assist in your

efforts to better manage your health. This online tool

prompts you to provide information to assess your

current health status, identify any risk factors you

may have for specific conditions, and improve your

health by starting to make informed decisions about

lifestyle adjustments.

The assessment covers:

n Current health conditions and family history

n Lifestyle factors such as tobacco use, alcohol

consumption, exercise, and stress levels

n Lab values such as cholesterol and blood

glucose levels

n Use of health care resources, including doctor

visits, prescriptions, and hospitalization

After you complete the Health Assessment, you will

receive a personalized report of your health risks and

guidelines. Based on your results, you may also be

contacted by your Medical plan provider about tools

and resources that can help you manage the health

risks identified in your assessment.

How You Can Complete Your Health Assessment

You may access the Health Assessment through your

Medical plan vendor’s secure member Web site at:

n www.aetna.com if you elect to participate in

an Aetna Medical plan. Once you log in, click

the “Simple Steps” link.

n www.kp.org if you elect to participate in the Kaiser

HMO. Once you log in, click the “Member” link,

visit the “Healthy Living” section, then click

on “Healthy Lifestyle” programs.

Note: The Health Assessment will be available approximately two weeks after you enroll in your Freddie Mac Medical Plan.

Your Privacy is Protected

Rest assured that when you take the Health Assessment, your Medical plan provider will disclose no personal health information that can be used to identify you or your dependents to Freddie Mac. Your Medical plan provider may send aggregated personal health information to third-party vendors, who will use it to provide reports and services to Freddie Mac for its use in evaluating the effectiveness of its health care programs.


Benefit Default Coverage

Medical coverage* Aetna Choice POS II Family coverage**

Dental coverage No coverage

Vision coverage No coverage

Group Term Life Insurance One times base salary coverage

Accidental Death & Personal Loss Insurance No coverage

Long-Term Disability 60% coverage

Health Care and Dependent Care Flexible Spending Accounts No participation

Group Universal Life Insurance No coverage

*If you were assigned default Medical coverage, you may change to Participant Plus One or Participant Only coverage (only if you do not have dependents). You may make this change at any time by calling the Freddie Mac Benefits Center at (800) 431-2363. No retroactive changes to your contributions will be made. Changes may not be made to any other default elections.

** You will be defaulted to the Aetna Out-of-Area plan if you live outside the Choice POS II network area.

10

Default Coverage When You First Enroll

If you do not elect Freddie Mac’s flexible benefits

by the end of your enrollment window when you

first become eligible, you will automatically be

deemed to have elected default coverage (see

chart on page 10). As with any other benefit

election, default coverage remains in effect for the

full plan year (Jan. 1 through Dec. 31) unless you

experience a status change. With default coverage,

you authorize Freddie Mac to deduct money from

your pay, to pay for these benefits as necessary.

If you have any questions about default coverage,

log on to NetBenefits. If you prefer to speak with a

representative, call the Freddie Mac Benefits Center

at (800) 431-2363.


11

If you live in this area You may choose from these options

Any area of the United States Aetna Choice POS II Aetna Choice POS II Plus Aetna HealthFund CDHP Open Access Aetna Select Aetna Out-of-Area Plan1

Mid-Atlantic area Aetna Choice POS II Aetna Choice POS II Plus Aetna HealthFund CDHP Open Access Aetna Select Kaiser HMO Aetna Out-of-Area Plan1

1This plan is available only to employees who live outside the Aetna Choice POS II network area.

Health CareFor most people, access to comprehensive,

affordable health care is a top benefits priority.

That’s why Freddie Mac offers a choice of Medical

options, as well as Dental and Vision coverage.

With each option, you may choose from three levels

of coverage:

n Participant Only

n Participant Plus One

n Participant Plus Family

You may elect a different coverage level for medical,

dental, and vision coverage, based on your personal

needs. For example, you may elect the Participant

Only coverage level for medical and elect the

Participant Plus One coverage level for dental.

Medical CoverageWith Freddie Mac’s flexible benefits program,

you have several medical options to choose from:

n Aetna HealthFund Consumer-Driven Health Plan

(CDHP)

n Aetna Choice POS II and Aetna Choice POS II Plus

n Aetna Out-of-Area Plan

n Aetna Select

n Kaiser HMO

Preventive care services received within the Aetna

and Kaiser networks will be covered at 100 percent,

with no copayment required.

Medical Plan Options

For a comparison of important features of Freddie Mac’s Medical plan options, refer to the Summary of Medical Benefits Chart included in this brochure.


Summary Plan Descriptions

For more information on medical, dental, or vision coverage, refer to the Summary Plan Descriptions located on the NetBenefits, HomeFront, or Total Rewards Web sites.

Examples of preventive care services include:

n Routine physical exams

n Well-woman exams, including pap smears and

screening mammograms

n Routine, age-based immunizations

n Prostate cancer screenings and PSA

(Prostate Specific Antigen) tests

For a full list of preventive care guidelines, visit

www.ahrq.gov/clinic/prevenix.htm.

All Freddie Mac Medical plan options cover doctor

visits, hospitalization, surgery, and emergency care,

subject to limitations as outlined in the Medical

Plan SPD. The options differ in terms of how care

is delivered; how much you contribute to the cost

of coverage; how much you pay when you receive

care; types of care covered; and how claims are

filed. You make the choice about the option that’s

right for you.

The following information describes how each

Medical plan option works:

Aetna HealthFund CDHP

The Aetna HealthFund is a Consumer-Driven Health

Plan (CDHP) that gives you more flexibility in how

you spend — or save — your health care dollars. Here

is a snapshot of how the plan works:

n Nationally recommended preventive care services

are covered at 100 percent in-network and are not

subject to the plan’s deductible.

n For non-preventive care expenses, the plan

features a Health Reimbursement Account (HRA).

This is a recordkeeping account Freddie Mac

establishes on your behalf. Each year, Freddie Mac

credits a specific amount to your account to cover

the cost of eligible medical expenses. Unused

funds roll over from year to year, as long as you

remain in the Aetna HealthFund.

n For non-preventive care services, you pay

the actual cost of care at Aetna’s negotiated

rates — no copays — until you satisfy the annual

deductible. The actual cost will vary depending

on whether you receive care in-network or out-of-

network. You use your HRA funds to help cover

these out-of-pocket expenses.

n If you exhaust your fund benefit and satisfy the

plan’s deductible for the year, your eligible medical

HRA Annual Deductible Health Coverage Preventive Care

Company funds to help you pay for eligible medical and prescription drug expenses

Amount that needs to be sat-isfied before traditional health

coverage begins

Protects you from high costs Eligible preventive care from in-network providers covered

at 100%

Unused funds roll over from year to year

Preventive care not subject to the deductible

Coinsurance similar to traditional medical plans

Out-of-pocket maximums for added peace of mind

12


13

What Freddie Mac Pays

Health

Reimbursement Account (HRA)

What You Pay

Your Portion of the Annual Deductible

You Meet the Annual Deductible

HRA + Your

Responsibility

What Freddie Mac and You Pay

Health Coverage

What Freddie Mac and You Pay

Out-of-Pocket

Maximums

All initial medical and prescription drug

expenses are paid first by the HRA.

(In-network preven-tive care is covered at 100% and does not

impact the annual HRA balance.)

Once you have exhausted your HRA

funds for the year, you must pay the portion of

the annual deduct-ible for which you are

responsible before benefits are paid under

the plan.

Once you satisfy the deductible, your under-lying health coverage pays a percentage of your eligible medical and prescription drug expenses for the year (shown below), until you meet the out-of-pocket maximum.

If you meet your out-of-pocket

maximum for the year (your coinsurance maximum, shown below, plus your

portion of the annual deductible), the plan will pay 100% of your eligible expenses for the rest of that year.

HRA contributions:

$1,000 Participant Only

$1,750 Participant + 1

$2,500 Participant + Family

+ Any remaining balance from your 2007 HRA

(if applicable)

Your portion of the Annual Deductible:

$750 Participant Only

$1,375 Participant

+ 1


$1,750 Participant Only



In-network: Plan pays 80%; you pay 20%

Out-of-network: Plan pays 60% of R&C costs; you pay 40% of R&C costs

Coinsurance maximums

In-network:$2,000

Participant Only



Out-of-network:$4,000

Participant Only



expenses are covered under the plan’s traditional

health coverage. Generally, the plan pays 80

percent of in-network costs and 60 percent of

reasonable and customary (R&C) charges for

out-of-network care.

n If you reach the plan’s out-of-pocket maximum,

the CDHP pays 100 percent of covered costs for

the remainder of the year. Out-of-network costs

are reimbursed according to Aetna’s R&C charges.

The chart below provides a high-level overview of

how the Aetna HealthFund CDHP works. See the

following sample questions and answers for more

information.

Is the Aetna HealthFund CDHP Right for You?

Does the HealthFund CDHP offer the same coverage

at a better value? Ask yourself the following:

n What type of health care user am I? If you use

health care primarily for preventive, wellness, and

routine health check-ups, you will generally pay

less out-of-pocket under the CDHP. If your health

care needs go beyond routine types of care and

services, you may pay more out-of-pocket under

the CDHP than you would under a POS or HMO

option.

n Do I prefer to pay the larger portion of my

health care expenses through contributions

or when I receive care? There is no “right”


answer. You will need to consider that you will pay

significantly lower contributions with the CDHP, but

may also be responsible for paying more out-of-

pocket when you receive care. On the other hand,

your contributions for the POS and HMO options

will be higher than contributions for the CDHP, but

you may pay less when you receive care.

n Do I want to use a Health Reimbursement

Account (HRA) to manage my health care

dollars? If you enroll in the CDHP, Freddie Mac will

add to your HRA balance each year, which helps

you meet the annual deductible. Unused HRA

funds roll over from year to year, as long as you

remain enrolled in the CDHP.

For additional information about the Aetna

HealthFund CDHP, please refer to the Medical

Plan SPD.

Aetna Choice POS II Plans

Freddie Mac offers two Point-of-Service II (POS

II) Plan options through Aetna. Both options

give you the freedom to choose your own health

care providers. While you are not required to use

providers within Aetna’s network, you will receive

the highest level of benefit coverage when you

obtain care from an in-network provider. See the

Summary of Medical Benefits beginning on page 17

for more information about deductibles, copays and

coinsurance amounts.

For additional information about these options,

please refer to the Medical Plan SPD.

Aetna Out-of-Area Plan

The Aetna Out-of-Area (OOA) Plan is available

only to Freddie Mac employees who live in an area

not covered under the Aetna network. The plan

generally works like the Aetna Choice POS II plans,

except there is no network of preferred providers

— you choose your own health care providers and

share your medical costs with the plan through

coinsurance after you meet the annual deductible.

For additional information about the Out-of-

Area Plan, see the Summary of Medical Benefits

beginning on page 17, or refer to the Medical

plan SPD.

Open Access Aetna Select Plan

The Open Access Aetna Select Plan option requires

that you receive services from physicians and

facilities in the Open Access Select network. With

the Open Access Select Plan, you won’t need to

designate a primary care physician (PCP) and obtain

written referrals.


please refer to the Summary of Medical Benefits


plan SPD.

Kaiser Mid-Atlantic HMO

The Kaiser plan pays benefits only for care

coordinated by your PCP and provided through your

plan’s network (except in an emergency). Generally,

you pay a flat copay when you receive care for most

covered services. If you elect to enroll in an HMO,

make sure to elect your PCP.


please refer to the Summary of Medical Benefits


plan SPD.

Freddie Mac’s Healthy Lifestyles: Get the Most from Your Health Care

n Get healthy. Do everything you can to live a

healthy, productive life: manage your weight,

make smart nutrition choices, get plenty of

14


Online Pharmacy Tools and ResourcesWhen you enroll in an Aetna Medical plan, you will have access to www.aetnapharmacy.com. Through this Web site, you have access to tools and resources to help you make the most of your prescription drug coverage.

Learn about:n Possible prescription drug side effectsn Potential generic substitutes for brand-name drugsn Money-saving tips and frequently asked questionsn Drug safety, including harmful drug interactions

exercise and rest, manage stress, and visit your

doctor for physicals and screenings. It’s easier

said than done, but making small adjustments can

make a real difference in your overall health status.

n Become an informed health care consumer. Learn

about the various Medical plan options and how

they work to help you make smart health care

decisions for yourself and your family.

n Get help when you need it. Whether you’re

managing a chronic health condition, expecting

a new baby, or just want more information about

getting and staying healthy, take advantage of the

resources available to you through your health

care plans.

Prescription Drug Coverage The information below pertains to all the Aetna

Medical plans except the Aetna HealthFund CDHP.

Brand-Name Prescription Drugs Subject to Coinsurance

If your doctor prescribes a brand-name drug, you

will pay a percentage (coinsurance) of the actual

drug cost (at Aetna’s negotiated rates), subject to a

minimum and a maximum cost. For generic drugs,

you will pay a flat copay.

The chart above outlines the copays for generic

drugs and the coinsurance amounts and minimum/

maximum payments for brand-name drugs.

Generic Brand-Name Formulary Brand-Name Non-Formulary

Retail $10 copay 30% coinsurance ($30 minimum/$60 maximum)

50% coinsurance ($50 minimum/$100 maximum)

Mail-Order $20 copay 30% coinsurance ($60 minimum/$120 maximum)

50% coinsurance ($100 minimum/$200 maximum)

15


Kaiser Copays

Mail-Order* (Up to 90-day supply)

Retail Pharmacy (Up to 60-day supply)

Kaiser Pharmacy

Generic drugs $13 $20 $15

Brand-Name Formulary $23 $45 $25

Brand-Name Non-Formulary

$38 $60 $40

*Maintenance medications only

Determining Your Share of the Cost for Brand-Name Drugs

n Go to www.aetna.com

n Enter: Username and password

If you forgot your username and password, follow

the prompts

n Click on “Pharmacy Benefits” under “Related

Shortcuts”

n Click on “Prescription Drug Cost”

n Enter the name of the drug you wish to price

n Enter the dosage

n Your estimated out-of-pocket cost is calculated

based on the applicable coinsurance, and it will

appear on your screen

Mail-Order Program

Whether you enroll in one of the Aetna Medical plans or the Kaiser HMO plan, you can offset some of the costs of your prescription drugs using the mail-order program. Using mail-order is easy and convenient, and it saves you money. In addition, your prescription order comes right to your home.

Aetna’s Save a CopaySM Program

You will save money if you choose to take an

approved generic drug over a brand-name

alternative to treat specific conditions such

as heartburn, depression, allergies, and high

cholesterol. Aetna will notify you if you take a

brand-name drug with an approved generic

alternative. You should talk to your health care

provider about switching to the generic drug.

If you choose the approved generic drug, you won’t

pay any copays for the first six months you use the

generic drug.

After the initial six-month period, you can continue

to save by paying the applicable generic copay

instead of the coinsurance rate for the brand-name

alternative.

For the Kaiser HMO Plan your prescription drug

copays reference the chart below.

16


Important Note! All percentages shown on the following charts are amounts paid by the Freddie Mac

Medical Plan unless otherwise noted.

17

2010 Summary of Medical Benefits – All Regions

Aetna HealthFund Aetna Choice POS IIAetna Choice POS II

Plus

Aetna OOA

Aetna Select

Kaiser HMO

In- Network

Out-of-Network

In- Network

Out-of-Network

In- Network

Out-of-Network

Member Services (888) 238-6293 (888) 238-6293 (888) 238-6293 (888) 238-6293

(888) 851-2386

(301) 468-6000

(800) 777-7902

HRA (Health Reimbursement Account)3

Individual $1,000 na na na na na

2-person $1,750 na na na na na

Family $2,500 na na na na na

Deductible

Individual $1,7504 $8001 $1,6001 $4001 $8001 $400 na

2-person $3,1254 $1,6001 $3,2001 $8001 $1,6001 $800 na

Family $4,5004 $1,6001 $3,2001 $8001 $1,6001 $800 na

Annual Out-of-Pocket Maximum

Individual $2,0005 $4,0005 $3,000 $6,000 $2,000 $4,000 $2,000 $1,500 $1,500

2-person $3,0005 $6,0005 $6,000 $12,000 $4,000 $8,000 $4,000 $3,000 $3,000

Family $4,0005 $8,0005 $6,000 $12,000 $4,000 $8,000 $4,000 $3,000 $3,000

Coinsurance % Plan Pays

80% 60%2 70% 50%2 80% 60%2 70%2 90% after copay

Office Visits Primary/Specialist

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

$30/$40 copay

50% $25/$35 copay

60% 70% $25/$35 copay

$25/$35 copay

Routine Preventive Medical Services

100%6 100% 50% 100% 60% 70% 100% 100%

1. The deductible applies to all services with the exception of in-network office visits and 100 percent benefits.

2. Reasonable and customary limits apply to out-of-network services and the Out-of-Area option.

3. HRA is provided by Freddie Mac and is used to pay the cost of any covered medical expenses. There are no participant contributions to the HRA. The participant pays after the HRA is used. The HRA fund offsets the deductible. Once the deductible is met, the medical plan provides coverage and the HRA pays the participant’s responsibility until the out-of-pocket maximum has been reached or the HRA has been exhausted, whichever comes first.

4. The HRA will be applied towards meeting your deductible for the Aetna HealthFund.

5. Maximum out-of-pocket amount at coinsurance level. Does not include the deductible. Note: after reaching the coinsurance maximum, the plan pays 100 percent of reasonable and customary charges for covered services for the remainder of the plan year.

6. Does not apply toward deductible or out-of-pocket maximum. The cost of preventive care services is covered at 100 percent subject to national standards.


18



Plus

Aetna OOA

Aetna Select

Kaiser HMO

In- Network

Out-of-Network

In- Network

Out-of-Network

In- Network

Out-of-Network

Routine Allergy and all related services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

100% after $30/$40 copay

Copay depends on type of provider

50% 100% after $25/$35 copay


60% 70% 100% after $25/$35 copay

For injections,

allergy testing,

and serum preparation


100% after $25/$35 copay

For injections

and allergy testing


Inpatient Hospital and all related services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50%

Additional hospital

deductible of $150 per admission

80% 60%

Additional hospital

deductible of $150 per admission

70% 90% after $100 copay

per admission

90% after $100 copay

per admission

Outpatient Hospital and all related services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% 90% 90% after $25 copay

Lab & X-rays 100% in HRA

0% in deductible

100% coin-surance

70% 50% 100% 60% 70% $35 100%

Short-term Rehabilitation

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% $35 copay

if approved; limited to

60 visits per calendar

year

90% after

$25 copay

For inpatient

treatment; limited to 2

months

For out-patient

rehabilita-tion; limited to 90 days

The deductible applies to all services with the exception of in-network office visits and 100 percent benefits.


19



Plus

Aetna OOA

Aetna Select

Kaiser HMO

In- Network

Out-of-Network

In- Network

Out-of-Network

In- Network

Out-of-Network

Emergency Room and all related services

100% in HRA,

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 80% 70% $50 copay per visit

waived if admitted

$50 copay

per visit

waived if admitted

Benefit paid at 60% for emergency room care

for non-emergencies and coinsurance not applied to out-of-pocket maximum

Benefit paid at 60% for emergency room care for non-emergencies and coinsurance not applied to out-of-

pocket maximum

Not covered for non-

emergency use of

emergency room

Urgent Care Services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 80% 70% $50 copay per visit

$25 copay at Kaiser

Permanente Medical Center

Benefit paid at 60% for urgent care facility use

for non-urgent care and coinsurance not applied to out-of-pocket maximum

Benefit paid at 60% for urgent care facility use for non-urgent care and coinsurance not applied to out-of-

pocket maximum

Not covered for non-urgent

use of urgent care

facility

Infertility 100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% See plan specific enrollment materials

Maximum lifetime benefit $10,000; $2,500

annual maximum for fertility drugs

Maximum lifetime benefit $10,000; $2,500 annual maximum for fertility drugs

Durable Medical Equipment

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% 100% of charges if approved by plan

100%

No Annual Maximum



20



Plus

Aetna OOA

Aetna Select

Kaiser HMO

In- Network

Out-of-Network

In- Network

Out-of-Network

In- Network

Out-of-Network

Inpatient Hospice Care

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% 90% after $100 copay per admission if approved

by plan

90% if ap-proved by

plan

Unlimited Lifetime maximum of 180 days 30-day lifetime

maximum

Home Health Care 100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% $35 copay if approved

by plan

90%

Limited to 120 visits per calendar year

Skilled Nursing Facility

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% 90% after $100 copay per admission if approved

by plan

90% after $100 copay per admis-

sion

Limited to 100 days per calen-dar year

Limited to 120 days per calendar year

Inpatient Mental Health Treatment Facility and related services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% 90% after $100 copay per admis-

sion


sion

For medically necessary admissions

No Limit



21



Plus

Aetna OOA

Aetna Select

Kaiser HMO

In- Network

Out-of-Network

In- Network

Out-of-Network

In- Network

Out-of-Network

Inpatient Substance Abuse Treatment Facility and related services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

70% 50% 80% 60% 70% 90% after $100 copay per admis-

sion


sion

No Limit

Outpatient Mental Health and Substance Abuse Treatment Facility and related services

100% in HRA

0% in deductible

80% coin-surance

100% in HRA

0% in deductible

60% coin-surance

$40 copay 50% $35 copay 60% 70% $35 copay

No Limit

$25 copay per visit

If medically necessary

No Limit

Prescription Drugs 100% in HRA

0% in deductible

80% coinsurance (in-network)

Important Note: No cov-erage at non-participating

pharmacies.

Participating pharmacies: (30-day supply)

Generic: $10 copay

Brand Formulary: You pay 30%, $30 minimum/$60 maximum

Brand Non-Formulary: You pay 50%, $50 minimum/$100 maximum

Important Note: No coverage available at non-participating pharmacies

At Kaiser:

$15 Generic

$25 Brand Name

Formulary

$40 Brand Name Non-Formulary

At Par-ticipating

Pharmacy:

$20 generic

$45 Brand Name

Formulary




22

Medical Plan Summary Plan Description

See the Medical Plan Summary Plan Description (SPD) for definitions and limitations. Every attempt has been made to ensure that this chart accurately reflects the provisions of the Federal Home Loan Mortgage Corporation Health Care Plan (of which the Medical Plan is a part). However, if the information in this chart differs from the provisions of the Health Care Plan, the Health Care Plan provisions will control. Contact your plan’s member services with any specific questions.



Plus

Aetna OOA

Aetna Select

Kaiser HMO

In- Network

Out-of-Network

In- Network

Out-of-Network

In- Network

Out-of-Network

Mail-Order Drugs 100% in HRA

0% in deductible


Important Note: No coverage at non-par-

ticipating pharmacies

Aetna Rx Home Delivery (866) 612-3862 (90-day supply)

Generic: $20 copay

Brand Formulary: You pay 30%, $60 minimum/$120 maximum

Brand Non-Formulary: You pay 50%, $100 minimum/$200 maximum

Important Note: No coverage available at non-participating pharmacies

$13 Generic

$23 Brand Name

Formulary


60-day supply, 90-day supply

for mainten-ance medi-

cations

Diabetic Supplies 100% in HRA

0% in deductible


Important Note: No coverage at non-par-

ticipating pharmacies

Participating Pharmacies

Covered

Includes needles, syringes, test strips, lancets and alcohol swabs.

Important Note: No coverage at non-participating pharmacies.

80% For needles

and syring-es at Kaiser pharmacy

80% Through

mail order for chem-

strips, insulin, and

diabetic supplies



23

Aetna’s HealthConnections ProgramsFreddie Mac encourages you to live well and wants

to help you save money. That’s why we’re offering

valuable incentives for participation in Aetna’s Online

Wellness and Disease Management programs.

Disease Management

The disease management program proactively

identifies members who live with, or who are at risk

for, established conditions such as:

n Vascular — Congestive heart failure, diabetes,

coronary artery disease, hypertension, peripheral

artery disease, cerebrovascular disease/stroke

n Pulmonary — Asthma, chronic obstructive

pulmonary disease

n Orthopedic — Osteoporosis, rheumatoid arthritis

n Oncology — Breast cancer, lung cancer,

lymphoma/leukemia, prostate cancer, colorectal

cancer

n Gastrointestinal — Gastro esophageal reflux

disease, peptic ulcer disease, Crohn’s disease,

ulcerative colitis, chronic hepatitis

n Neurological — Geriatrics, migraines, seizure

disorders, Parkinson’s

n Others — Hypercoagulable state, chronic kidney disease, sickle cell disease, cystic fibrosis,

end-stage renal disease, HIV, low back pain

Through the program, Aetna contacts each

participant potentially at risk for any of these

conditions — and his/her provider — on a confidential

and voluntary basis, to help proactively manage

health. Participants will receive informative,

confidential mailings at their home, outlining the

parameters of the program. The program allows

members to work together with physicians in order to

prevent, reduce, or slow the development of disease

complications. This program is not mandatory and

is completely confidential, so individuals not wishing

to participate can simply advise Aetna, and Aetna

will cease sending information. If you participate in

the Aetna HealthFund, Aetna Choice POS II, Aetna

Choice POS II Plus, Aetna Select, or Aetna Out-of-

Area options, the program is available to you and

your dependents 18 and older.

If you or your eligible dependents participate

in the program, an incentive credit of $100 will

be applied towards out-of-pocket expenses

(deductible, coinsurance or HRA fund) for the plan

year. Participation includes having a telephone

assessment with a nurse or clinical professional and

enrolling in the program at the Nurse Engagement

level. A program participant will be limited to one

incentive credit per plan year (including those

participants who receive counseling for more than

one condition).

Aetna Online Wellness ProgramsThe Aetna Online Wellness programs are designed to

help you work toward your health goals at your own

pace, with your personal needs and lifestyle in mind.

There are six interactive programs available:

n Balance™ (weight management and physical

activity)

n Nourish™ (nutrition and diet)

n Relax™ (stress management)

n Breathe™ (smoking cessation)

n Overcoming™ Insomnia

n Overcoming™ Depression

The Online Wellness programs are available to you

and your covered spouse/domestic partner. Covered

persons must first complete the Health Assessment

to participate. After you complete your Health

Assessment, you will receive an e-mail inviting you to

participate in a program that aligns with your health


needs and objectives. Or, you can start a Wellness

program by visiting www.aetna.com, clicking on

“Simple Steps to a Healthier Life“ then clicking on

the “View My HealthMedia Programs” button. Each

Online Wellness program offers valuable tips and

support, including online libraries, newsletters and

tools to help you set goals and track progress. When

you begin a Wellness program, you will have up to

240 days to complete it, working at your own pace.

You will be invited to complete program evaluations

at the 30-day, 90-day and 180-day milestones.

The Aetna Online Wellness programs are available to

eligible Aetna plan members at no cost. Once you

(or your eligible family member) complete the 30-day

program evaluation, an incentive credit of $25 may

be applied towards out-of-pocket medical expenses

(deductible, coinsurance, or HRA fund). The credit

will not be applied to out-of-pocket prescription drug

expenses. Incentive credits for you and your family

members combined will be limited to two per year

for a total of $50.

Aetna Navigator

If you decide to enroll in one of the Aetna Medical plans, you will have access to the tools and resources through the Aetna Navigator Web site at www.aetna.com. For example, you’ll be able to use the DocFind® tool to look up the rates for many participating physicians:

n Select “Provider Detail” and click on “View Rates for Aetna Members.”

n You will find the actual rates doctors have agreed to receive from Aetna as reimbursement for many widely used services (e.g., office visits, medical tests and procedures).

n You can determine your out-of-pocket cost for the service by applying your deductible, copay and/or coinsurance.

Once you’re enrolled, be sure to register with Aetna Navigator and use the tools available to you to make the most of your medical coverage.

24

Service Participating Provider Non-Participating Provider

Annual eye exam Free $40 benefit

Lenses and frames $20 copays on standard stock $50 wholesale allowance (private-practice providers) $130 retail allowance (retail chain providers)

$65 benefit

Contacts (in lieu of glasses and frames)

$20 copays on standard $105 allowance on non-standard $105 benefit (includes exam, fitting, and follow-up)

Vision Coverage The Vision Plan, administered by UnitedHealthcare

Vision, provides coverage for annual eye exams and

includes specific dollar allowances for frames, lenses,

and contact lenses. Some materials are covered in

full; for others, you will pay the difference between the

allowance and the total cost. You have the option of

using in-network or out-of-network providers, but you

pay more if you use providers outside the network.

For detailed information about the Vision Plan, please

see the Vision Plan Summary Plan Description (SPD),

posted on the NetBenefits, HomeFront, and Total

Rewards Web sites.


Covered Service Aetna Dental PPO

Annual Deductible* $100

Preventive care** (exams, cleanings) 100% (no deductible)

Basic Care** (fillings, extractions) 80%

Major Care** (crowns, bridges) 50%

Orthodontia (for covered dependent children) 50% (no deductible)

Calendar Year Maximum (not including orthodontia) $1,500

Lifetime Orthodontia Maximum $1,500

*Does not apply to preventive care or orthodontia **Reasonable and Customary (R&C) charges apply

25

Dental CoverageRegular dental care is an important part of your

overall health. That’s why Freddie Mac offers dental

coverage for you and your eligible dependents. Our

Plan provides coverage for a wide variety of dental

services, including:

n Preventive care — including routine exams, X-rays

and cleanings

n Basic care — including fillings

n Major care — including crowns, bridgework,

and dentures

n Orthodontia — for children only

The Dental Plan is a Preferred Provider Organization

(PPO) plan administered by Aetna. You may

see any licensed provider you choose, but your

benefits are greater when you use a dentist within

the Aetna network.

For detailed information on the Dental Plan, including

limitations and exclusions, please see the Dental

Plan SPD, posted on the NetBenefits, HomeFront,

and Total Rewards Web sites.

Are you considering enrolling in the Health Care Spending Account to help pay for orthodontia costs?

If so, please reference Aetna’s “Orthodontia Claim Reimbursement Guidelines” on HomeFront for helpful information.

Your benefits are a significant complement to your base compensation. Freddie Mac is proud to offer a variety of ways to help you save and invest your money; plan for your retirement; and provide insurance protection.

Today, fewer employers offer a 100-percent company-funded pension plan in addition to a 401(k) plan. We do. Did you know that in the prime of your life you’re more likely to become disabled and need income protection insurance than you are to die and need life insurance? We fund disability coverage for you and give you the opportunity to purchase extra.

You work hard to earn your living. We want you to know we’re working hard to help you preserve and grow your financial resources.

Your Money

26

Savings, Investment, and Retirement

27

Freddie Mac is committed to offering plans that

provide valuable benefits for our employees. These

include high-quality plans such as the Thrift/401(k)

Savings Plan and the Employees’ Pension Plan. For

further information on these plans, please refer to the

applicable SPDs and Plan Summaries, which can

be located on the NetBenefits, HomeFront, or Total

Rewards Web sites.

Thrift/401(k) Savings PlanYou become eligible to make pre-tax contributions

shortly after your date of employment, at which

time you will be automatically enrolled in the Plan

at a three percent pre-tax contribution that will

be invested in the age-appropriate Vanguard

Target Retirement Fund. Contributions will begin

approximately 45 days after your hire date.

Enrollment is automatic unless you call the Freddie

Mac Benefits Center to elect no contribution or

select zero via NetBenefits. You may change the

contribution percentage rate (and contribute up to

25 percent), change your investment options, view

your online statement, or order prospectuses virtually

at any time by going online to the NetBenefits

site, which can be accessed via HomeFront, the

Total Rewards site, or by going directly to the URL

address: http://netbenefits.fidelity.com. You may

also contact the Freddie Mac Benefits Center at

(800) 431-2363.

You may also be able to roll over a distribution

from an eligible retirement plan of a previous

employer, subject to certain rules. After the first

day of the month following your anniversary date,

you are eligible to make after-tax contributions

to the Thrift/401(k) Plan, to receive a Company

Match to your contributions, and to receive a Basic

Contribution (discretionary) allocation.

Y O U R M O N E Y Y O U R M O N E Y

Generous 401(k) Match for Eligible EmployeesStarting in your second year of service, Freddie Mac offers a 50-percent match up to 3 percent of income contributed to your 401(k) Plan. Once you begin your sixth year of service, the company gives you a dollar-for-dollar match up to 6 percent of your income contributed. All vest immediately and fully upon the company’s contribution.

The Company Match is as follows:

Current Year of

Employment

Percentage of Freddie Mac Match

Percent of Pay Contributed by Freddie

Mac if Employee Contributes 6% of Pay

2-3 50% 3%

4-5 75% 4.5%

6 or more 100% 6%

You may contribute from one percent to 25

percent of your pay (either pre-tax, after-tax, or a

combination of the two), and you can choose to

invest in any or all of the plan’s investment options.

(Note: After-tax contributions are available only after

completion of one year of service).

You may do so by simply going online to the

NetBenefits site, which can be accessed via

HomeFront, the Total Rewards site, or by going

directly to the URL address http://netbenefits.

fidelity.com. You may also contact the Freddie Mac

Benefits Center at (800) 431-2363.

You are fully and immediately vested in both your

contributions and the Company Match. Your vesting

for the Basic Contribution is based on your years of

service, as follows:

Years of Vesting Service Vesting Percentage

1 20%

2 40%

3 60%

4 80%

5 100%

You become fully vested in the Basic Contribution

after five years of service during which you worked

at least 1,000 hours in each calendar year. The

Thrift/401(k) Savings Plan also has loan and hardship

withdrawal features. Plan and IRS restrictions apply.

28


29

The Thrift/401(k) Savings Plan currently offers a

variety of funds in which you may invest. Information

on each fund and its performance is available when

you first enroll in the Thrift/401(k) Savings Plan.

Up-to-date fund information, including the most

recent prospectuses, information regarding fees,

performance reports, etc., is available from the

Freddie Mac Benefits Center.

Pension PlanYou become eligible to participate in the Pension

Plan after a year of service (provided you are age 21

or older). The pension benefit varies according to

your age, salary, and length of service. You become

fully vested after five years of service during which

you worked at least 1,000 hours each calendar year.

Early retirement is available at age 55 and five years

of service; normal retirement age is 65. To estimate

the current or future value of your accrued pension

benefits, log on to the Pension Calculator located on

HomeFront.

For questions related to the Pension Plan, please

contact the Benefits & Payroll Information Line at

(703) 918-5555.

Flexible Spending AccountsYou can take advantage of pre-tax Flexible

Spending Accounts (FSAs) to save money on eligible

expenses. There are two types of FSAs:

n Health Care Spending Account (HCSA), which

you can use for eligible expenses that your

Medical, Dental, and Vision plans do not cover

or cover only in part, including deductibles and

copayments. You may enroll in the HCSA even

if you do not have medical, dental, and/or vision

coverage through Freddie Mac.

n Dependent Care Spending Account (DCSA),

which you can use for eligible expenses related to

child or other dependent care (such as care for an

elderly parent or disabled dependent) that enables

you (and your spouse, if married) to work or attend

school full time. It does not include educational

expenses.

Because you pay for eligible expenses on a

pre-tax basis, you reduce your taxable income,

which saves you money. You can choose to

contribute to one or both accounts through

convenient payroll deductions. Under the HCSA,

Freddie Mac provides automatic reimbursement

if you participate in an Aetna Medical or Dental

option. This means that when you file a medical

or dental claim to be reimbursed for services from

Aetna, you will not need to file a separate claim for

reimbursement from your HCSA; a reimbursement

request will be automatically forwarded to Aetna.

FSA Calculator

Need help in estimating your Flexible Spending Account contributions? The FSA Calculator is an online tool that can be used to calculate annual contributions to a Health Care and/or Dependent Care Flexible Spending Account, as well as estimate your tax savings. Participants will estimate anticipated health care and/or dependent care expenses that are eligible for reimbursement. The FSA Calculator is available on NetBenefits.

However, if you intend to use your HCSA

contributions for something specific (e.g.,

eyeglasses, Lasik surgery) or if you have coverage

under another plan that requires coordination of

benefits, you must call the Freddie Mac Benefits

Center at (800) 431-2363 to opt out.


Minimum Contribution Maximum Contribution

Health Care Spending Account $240 per year $5,000 per year

Dependent Care Spending Account $600 per year $5,000 per year

The IRS specifies the maximum DCSA reimbursement that can be excluded from income based on your federal filing status. The plan limits are the same as the IRS limits. Please read the Dependent Care Plan Summary located on HomeFront or on the NetBenefits or Total Rewards sites for additional information about contribution limits.

Both the HCSA and DCSA accounts have certain

minimum and maximum contribution amounts, as

shown in the chart on page 30. You decide how

much to contribute to your account(s) by estimating

how much you expect your health care and/or

dependent care expenses to be during the

calendar year.

While spending accounts can save you money

on taxes, you should be aware of the following

restrictions before enrolling in one or both accounts:

All expenses for which you request reimbursement

must be incurred on or after your participation

begins. Your participation begins on the first day

of the first pay period in which payroll deductions

commence.

You must obtain your daycare provider’s tax ID

or Social Security Number to access the money

in your DCSA.

You will have until March 31 of each year to

submit claims for reimbursement of all eligible

expenses incurred Jan. 1– Dec. 31 of the previous

plan year, and any additional expenses incurred

Flexible Spending AccountsDid you know that you can arrange to have your reimbursements directly deposited into any bank account you wish? Simply complete the Flexible Spending Accounts Authorization for Direct Deposit form found on HomeFront, and reimbursement will be credited to the designated account versus receiving a check via mail.

For more important information about restrictions, coverage limitations, and tax implications of Flexible Spending Accounts, refer to the Health Care and Dependent Care descriptions located on the NetBenefits, HomeFront, and Total Rewards Web sites.

30


Rachel’s StoryA recent college grad, Rachel started working full time at Freddie Mac on May 6, 2007. On May 6, 2008 — the first day of her second year of employment — Rachel became eligible to receive a 50 percent matching contribution. She earns $50,000 per year and contributes six percent of her income, or $3,000, to her 401(k). Therefore, Rachel’s Freddie Mac match is $1,500.

match = 50% of 6%company

31

through March 15 of the current calendar year if you

did not use up all of your contributions before the

end of the plan year. This allows you a longer period

of time within which to incur and pay for eligible

expenses before any amounts are forfeited under

the “use-it-or-lose-it” rule.

It is your responsibility to make sure that Aetna

receives your claims, in good order, by March 31.

Claims received by Aetna after March 31 will not be

accepted — with no exceptions.

Health Care Spending Account

If you enroll in the Aetna HealthFund Medical option and also sign up for the HCSA, your HRA will reimburse eligible expenses first. If you use all of your HRA credits, then the HCSA will reimburse any additional eligible expenses, up to the amount of your HCSA annual contribution. For specific information, please see the HCSA SPD located on NetBenefits, the Total Rewards Web site or the Flexible Benefits page on HomeFront.

If you do not incur enough expenses to use all the

contributions you make to your account(s) by Mar.

15 following the end of the plan year for which the

contributions are made, the IRS requires you to

forfeit any remaining balance in your account. You

cannot receive a refund, carry balances over to pay

for next year’s expenses, or transfer money from one

account to another.


Income Protection Benefits

Length of Service Short-Term Disability Benefits (as a percentage of base pay)

Days 1 through 90 Days 91 through 180

Six months or less* 80% 60%

More than six months 100% 80%

*Days 1 – 5 charged to available leave

Providing protection from the unexpected for you

and your family is an important part of Freddie

Mac’s benefits. Freddie Mac provides short-term

disability (STD) and long-term disability (LTD) income

protection; life insurance; accidental death &

personal loss (AD&PL) insurance and business

travel accident (BTA) coverage.

Disability Coverage

For more information on disability coverage, refer to the LTD Summary Plan Description available on the Reference Library Tab on NetBenefits, the Flexible Benefits page on HomeFront, or the Total Rewards Web site. For information about disability coverage, refer to Corporate Policy 3-235, which is available on HomeFront.

Disability CoverageA disabling illness or injury can be financially

devastating. That’s why Freddie Mac provides you

with disability coverage to provide replacement

income if you are unable to work due to an eligible

non-work-related injury or illness.

Short-Term Disability (STD) CoverageSTD coverage protects your income for the first 180

days of disability, after you have been disabled for six

consecutive work days. There is no cost to you for

this coverage. If you are approved for STD coverage

and have completed the six-day waiting period, your

STD benefits are based on your length of service at

Freddie Mac and the length of time you are unable to

work because of your disability, as shown in

chart below.

Long-Term Disability (LTD) CoverageLTD coverage pays benefits if you are unable to

work due to an approved disability for more than

180 days. Freddie Mac provides you with core LTD

coverage at no cost to you. Core LTD coverage

provides benefits equal to 60 percent of your basic

monthly earnings, up to a maximum monthly benefit

of $20,000 less any offsetting income as described

in the LTD Summary Plan Description (SPD).

You may also elect to purchase an additional 10

percent of LTD coverage, bringing your total LTD

coverage to 70 percent of your basic monthly

earnings, up to a maximum monthly benefit of

$20,000, less any offsetting income as described

32


Damon’s storyDamon has been with Freddie Mac for 12 years and is married with two children. He has chosen to enroll his entire family in the Aetna Choice POS II plan, as well as the dental and vision plans. His cost per pay period for all of the above coverage is $165.37. Freddie Mac gives him $34.58 in FlexDollars per pay period, as well as $5 each for him and for his wife, who both completed their online Health Assessment, bringing his total per-pay-period premiums for health, vision, and dental coverage down to $125.79.

savings = $34.58 33

FlexDollars

Evidence of insurability (EOI, or proof of good

health) is not required for newly hired employees

if you elect Additional GTL when you first become

eligible. You must provide EOI if you wish to increase

your coverage amount during subsequent Annual

Enrollment periods. Increases due to a status

change are not subject to EOI. Any coverage above

$50,000 is taxable to you as imputed income.

Accidental Death & Personal Loss (AD & PL) Insurance

AD&PL insurance provides benefits in the event

that you die or become dismembered due to an

accident. You may use your FlexDollars to purchase

AD&PL coverage for one, two, three, or four times

your annual base pay, up to $1,000,000. Other

income, such as overtime, bonuses, commissions,

shift differentials, relocation reimbursements, or

special compensation is excluded when determining

your annual base pay. EOI is not required for

AD&PL coverage.

in the LTD SPD. You pay for the cost of your

additional LTD coverage on an after-tax basis.

The LTD Plan has limitations relating to a pre-existing

condition. This limitation applies to both the core and

additional LTD coverage. For additional information,

please refer to the LTD SPD.

Group Term Life (GTL) Insurance You are covered for core GTL insurance at one

times your annual base pay at no cost to you. Other

income, such as overtime, bonuses, commissions,

shift differentials, relocation reimbursement, or

special compensation is excluded when determining

your annual base pay.

With your FlexDollar allotment, you may purchase

additional coverage for one or two times your annual

base pay. When combined with your core coverage,

your total coverage equals two or three times your

annual base pay if you elect to purchase additional

coverage. The maximum coverage amount for your

core and additional GTL combined is $1,000,000.


Life and AD&PL Coverage

For information on Life and AD&PL insurance coverage, refer to the Reference Library Tab on NetBenefits, or to the Summary Plan Description available on the Flexible Benefits page on HomeFront or the Total Rewards site.

Aetna’s Group Universal Life (GUL) Insurance ProgramDepending on your personal situation, you may

decide that you need additional life insurance

protection, or you may wish to elect coverage for

your eligible family members through the Aetna

Group Universal Life (GUL) Insurance Program.

Aetna offers the GUL program to Freddie Mac

employees; this program is not sponsored by

Freddie Mac. For more information, see the

program description on the Reference Library

Tab on the NetBenefits, HomeFront, or Total

Rewards Web sites. With GUL coverage, you

may choose between:

n Term life insurance, which enables you to

purchase additional life insurance protection on an

after-tax basis at affordable group rates for yourself

and/or your eligible family members.

n Universal life insurance, which enables you

to combine the after-tax purchase of affordable

term life insurance protection with a special tax-

advantaged Cash Accumulation Fund (CAF) for

you and/or your spouse. With the CAF, you can

make contributions in addition to the monthly

premium for the term life insurance coverage.

You may take loans or make withdrawals from your

CAF or use these funds to make future premium

payments. The Internal Revenue Service (IRS) limits

the amount you can contribute.

You may elect GUL coverage for:

n Yourself, for one to five times your annual base

salary, up to a maximum of $750,000.

n For your spouse under age 65, in increments

of $10,000, up to a maximum of $50,000.

For amounts above $30,000, or if coverage is

increased during Annual Enrollment, your spouse

must complete an EOI form, which you can find on

NetBenefits, or on the Flexible Benefits page on

HomeFront.

n For your children, $10,000 of coverage for each

child. Your cost remains the same, regardless

of how many children you cover. (You and/or

your spouse must participate in GUL in order to

purchase coverage for your children). You pay for

the cost of any GUL coverage you elect through

convenient after-tax payroll deductions.

EOI is required as follows:

New Hires

n If you elect coverage greater than $200,000

for yourself.

n If you elect coverage greater than $30,000 for

your spouse.

Annual Enrollment or Status Changes

n If you elect coverage for the first time or increase

current coverage for yourself.

n If you elect coverage for the first time or increase

current coverage for your spouse.

The EOI form is available on the NetBenefits site. You

may also be required to complete a physical exam.

Cross coverage is NOT PERMITTED under the plan.

If you and your spouse both work at Freddie Mac

(or if your spouse formerly worked at Freddie Mac

34


35

and continued his/her coverage directly with Aetna

and is paying Aetna directly for that coverage), you

may not enroll your spouse in spouse-life coverage

under your plan if your spouse has coverage or is

electing the employee life coverage for him/herself

under his/her plan. If you decide you want to enroll

your spouse in the spouse-life coverage under your

plan, your spouse may not have the employee life

coverage for him/herself. For child-life coverage, only

one of you may elect the child-life benefit.

For Texas residents only: Your spouse and child

coverage may not exceed more than 100 percent of

the amount of your GUL coverage. Spouse coverage

is limited to the plan maximum of $50,000. Child

coverage is limited to a maximum of $10,000; also, if

you do not elect coverage for yourself, you may not

elect spouse or child coverage.

Business Travel Accident (BTA) Insurance Freddie Mac’s BTA insurance provides

employee-only coverage for accidental death

or dismemberment while traveling on company

business. Benefits you may receive under this Plan

are in addition to any benefits received from Freddie

Mac’s GTL, AD&PL, or Aetna’s GUL Insurance Plan.

Freddie Mac pays the full cost of this coverage.

Beneficiary Information

When you become eligible for Life, AD&PL, and

BTA Insurance, and for the Thrift/401(k) Savings

and Pension benefits, you will need to designate

a beneficiary(ies), the person or persons who will

receive benefits in the event of your death. You may

name, add, or change your beneficiary(ies) at any

time. To do so, complete and return a beneficiary

form to the address on the form. Forms are available

on the NetBenefits, HomeFront, and Total Rewards

Web sites.

Customer Service Link

The Customer Service Link is an online NetBenefits tool with several features to address your health and insurance questions. “Commonly Asked Questions” includes approximately 90 of the most frequently asked questions and their answers.

The “Service Request” feature allows you to submit an online request for certain services. You will find a service representative’s response to your request in the Meeting Center. “Technical Help” provides answers to questions related to using the Web. To access customer service, click the link at the top of the “Health & Insurance” Tab.


Freddie Mac believes that time off is important to employees’ work-life balance. On average, companies provide full-time employees who have one year of service with 10 days of leave (non-sick-related personal time off) per year. At Freddie Mac, our generous leave program provides such employees with 10 core vacation days and four discretionary holidays (in addition to seven scheduled federal holidays). To further enhance work-life balance, employees with at least one year of service have the option to purchase up to 15 additional vacation days — for a total of 25 days of vacation leave.

Your Time

36


Time Away From Work

37

Freddie Mac has a wide range of paid time-off

programs. The following is a brief explanation

of these programs. For more information about

vacation, holidays, and sick leave, please see

the policies on HomeFront.

Vacation TimeIn your first calendar year of employment, you accrue

10 days of vacation (15 days if you are a mid-career

hire). Both rates are prorated based on your date

of hire. In subsequent years, you receive enough

FlexDollars to buy the vacation days for which you

are eligible, based on your years of service and

mid-career hire status. If you wish to have more

than the 10 core days of vacation time, you must

elect the additional days during Annual Enrollment.

There are minimum usage, maximum payout, and

carryover rules for most employees, so you should

plan carefully. Also, please refer to Corporate Policy

No 3-233, located on HomeFront.

Mid-Career Hires Vacation

Mid-career hires or employees with three or more years of continuous service receive enough FlexDollars to purchase five days above the core vacation they want to take.

Core Vacation Time

Eligible full-time employees receive 10 core vacation

days each calendar year. Part-time employees who

are regularly scheduled to work at least 20 hours per

week receive prorated vacation time based on their

service and work schedule.

Additional Vacation Time

Beginning in the second calendar year, all eligible

full-time employees may use FlexDollars to purchase

additional vacation time in increments of one day.

The number of FlexDollars allocated to you for

purchasing additional days of vacation depends

on your years of service and your scheduled hours.

Y O U R T I M E Y O U R T I M E

Paid VacationIn your first calendar year as a Freddie Mac employee, you accrue 10 days (or 15 days if you’re a mid-career hire) of vacation —prorated based on your hire date — and up to four discretionary holidays. Eligible employees may elect to purchase additional days of vacation per year beginning with their second calendar year of employment.

HolidaysFreddie Mac observes seven scheduled federal

holidays and four discretionary holidays each year.

If you are hired in the first quarter, you will receive

all four discretionary holidays. If you are hired in the

second quarter, you will receive three discretionary

holidays. If you are hired in the third quarter, you will

receive two discretionary holidays. If you are hired in

the fourth quarter, you will receive one discretionary

holiday. If you wish to observe a holiday that is

not on the company’s schedule, you may use a

discretionary holiday or your vacation time, with your

supervisor’s approval. Discretionary holidays do not

carryover to the new year.

Sick LeaveFull-time employees receive eight days of sick leave

per calendar year. Carried-over sick leave is capped

at 12 days for a maximum of 20 sick days. Part-

time employees receive five days of sick leave per

calendar year and may carryover a prorated amount

of days based on hours regularly scheduled to work.

You may use up to four days of sick leave per year

in the event of an illness in your immediate family.

Mid-career hires

If you are a mid-career hire, you will accrue vacation at the prorated rate of 15 days in your first calendar year of employment. In your second calendar year of employment, you will accrue 10 days of vacation and receive the appropriate amount of FlexDollars to purchase five additional days of vacation. If you wish to have those additional five days, you MUST elect to purchase them during Annual Enrollment.

38

Y O U R T I M E Y O U R T I M E

Family Medical LeaveThe Family Medical Leave Act (FMLA) permits eligible

employees to use up to 12 weeks of unpaid leave

upon the occurrence of an employee’s serious health

condition or to care for an eligible family member.

Short-Term Disability LeaveSTD coverage provides benefits when you need

to be absent from work for a period of six or more

consecutive work days and up to 180 calendar days

if the absence is related to an employee’s illness

or injury and is approved by the Wellness Center.

STD benefits are paid to you the same as your

regular pay, with applicable taxes and regular payroll

deductions withheld.

Adoption LeaveEligible employees can take up to 30 business days

of paid leave to care for a newly adopted child.

Paid adoption leave can be taken in whole-day

increments either consecutively or intermittently,

but all such paid leave must be taken within 12

weeks from the date the adoption is finalized or

the placement for adoption, whichever occurs first.

To be eligible for adoption leave, an employee must

be the adopted child’s primary caregiver during the

leave period.

Jury Duty LeaveProvides employees leave for jury duty or to comply

with a subpoena or court order. Should you be

asked to serve on jury duty, you should notify your

supervisor so arrangements may be made for

your absence.

Bereavement LeaveFreddie Mac will provide up to three days of paid

leave when someone in your immediate family or

someone who lives in your household dies.

Military LeaveFreddie Mac employees are entitled to take leave

from their Freddie Mac employment to serve in the

Uniformed Services consistent with the requirements

of the Uniformed Services Employment and

Reemployment Rights Act. The continuation of

benefits during leave and the right to be re-employed

upon completion of such leave depend on a number

of circumstances, including the duration of the

leave. Employees should consult with their Human

Resources business partners regarding these and

other issues involved with such leave.

39

Data show that most of us spend more

than 20 minutes waiting in a doctor’s

office for a scheduled visit. But this isn’t

your only option. Feel sick during the

workday? Need an allergy shot? Visit

Freddie Mac’s on-site Wellness Center,

and reclaim your precious time.

Your Life

40

Work/Life

41

Whether it’s a desire to own your first home, further

your formal education, the need to take care of

an elderly parent, or a personal problem for which

you require assistance, we all face the challenge

of balancing our professional and personal lives.

To help you manage life’s demands, Freddie Mac

offers a variety of work/life programs and benefits.

In addition to the brief summary that follows, visit

HomeFront for more information.

Home Benefit ProgramThrough the Home Benefit Program, Freddie Mac

employees who are first-time homebuyers and meet

certain eligibility criteria can receive up to $12,000 to

cover down payment and eligible closing costs, such

as loan origination fees and discount points.

The Home Benefit Program also provides employees

with important educational information about home-

buying and homeownership.

For more information about this program, including

eligibility requirements, please read the Program

Summary and Frequently Asked Questions located

on the Home Benefit Program site on HomeFront.

Freddie Mac Wellness CenterThe Freddie Mac Wellness Center is an on-site

health clinic staffed by dedicated health professionals

who provide urgent and preventive care services at

no cost to Freddie Mac regular full-time and part-

time* employees at Freddie Mac’s home office.

Services include:

n Preventive physical exams

n Immunizations (including flu shots and allergy

injections)

n Nutritional counseling

n Vision and hearing screenings

Y O U R L I F E Y O U R L I F E

42

n Laboratory testing (including thyroid function,

complete blood count, etc.)

n Skin checks and much more!

The Wellness Center is located at 8200 Jones

Branch Drive, McLean, VA 22102. You may contact

the Wellness Center at (703) 903-2844. For more

information about the Wellness Center, please go to

the Wellness Center site on HomeFront.

The Wellness Center should not be used in place of

your Primary Care Physician.

*Pursuant to Freddie Mac Corporate Policy No 3-221.

Employee Assistance ProgramWhile it’s easy to solve some personal problems on

your own, there may be times when professional

assistance can make a big difference. Our Employee

Assistance Program (EAP) is designed to provide

free, confidential assistance to you and your eligible

dependents during those times.

The EAP can help with a wide range of issues,

including marital or relationship problems, emotional

difficulties and stress, drug and alcohol dependency,

and family problems. You are encouraged to take

advantage of this program whenever you have a

problem that affects your home or work life. For

more information, you may call the EAP at (703)

903-2584 (in the mid-Atlantic area) or (800) 247-

3054; you may also read the program description

on HomeFront.

LifeWorks®

Staying on top of things during times of transition

can be difficult. Whether you’re dealing with getting

the kids back to school or a major life challenge,

LifeWorks® can help you and your family handle life’s

ups and downs. The LifeWorks program is a free,

confidential service that offers practical solutions,

online resources, one-on-one consultations, and

material on a variety of personal, family, and work

issues. LifeWorks can offer you a real person to talk

to when you need help; an answer to a question; or

a referral to a resource, service group, or support

group. Just call (888) 267-2183 to speak to a

consultant at any time, day or night. Online articles,

newsletters, LifeWorkshops, booklets, audio

recordings, and more are also available by visiting

the LifeWorks Web site at www.lifeworks.com. Just

enter your LifeWorks user ID (freddiemac) and your

password (2420).

Back-Up Child/Elder Care Back-Up Child/Elder Care may be available

whenever your regular childcare arrangements are

unavailable or you need back-up help in caring for

an elderly loved one.

You can use the back-up center:

n If your regular provider is ill or on holiday

n To support flexible work arrangements

n When schools are closed

The following are also available:

n In-home back-up child care

n In-home back-up care for mildly ill children

n In-home back-up care for adult/elder care

You can use this benefit up to 20 days per year;

however, you cannot use it for more than five

consecutive days without special authorization.

Users of these services pay $15 per visit; Freddie

Mac subsidizes the majority of the cost.


Homebuyer Benefit ProgramEligible employees may receive a benefit amount of up to $12,000. Eligible employees are those who have at least one year of service; work 20 or more hours a week; are in good standing; whose annual salary is $85,000 or less; and who have participated in a Freddie Mac-sponsored homeownership education class. Education topics include choosing a mortgage lender, establishing and maintaining good credit, and much more.

43


eligibility requirements and enrollment procedures,

please visit the Back-up Child/Elder Care site on

HomeFront.

Lactation ProgramThe Freddie Mac Work Site Lactation Program

provides support to female employees who want

to work and maintain a successful breastfeeding

relationship with their children. The program includes

these main components:

n Prenatal breastfeeding (including discounts on

breast pumps

n Telephone support following the birth of a child

n Return-to-Work consultation

n Lactation rooms located throughout Freddie Mac

offices


eligibility requirements, please read the Program

Summary located on HomeFront.

Adoption Expense Reimbursement ProgramFreddie Mac provides financial assistance to eligible

employees who adopt a child. The child you adopt

must be a formerly unrelated child under age 18 and

cannot be a stepchild or other family member.

Upon completion of the legal adoption process,

you may apply for reimbursement for certain eligible

expenses, including:

n Adoption agency fees

n Court and legal fees

n Medical exam expenses not covered by your

health insurance plan, if required as part of the

adoption process

n Travel required to transport the child and an escort

to your home, or the cost for you and your spouse

to pick up the child, if necessary

The maximum amount for which you may be

reimbursed is based on the cost for a normal


childbirth during the year in which the adoption

becomes final. If the adoption is finalized before you

complete one year of employment, you must satisfy

the one-year service requirement before requesting

reimbursement. Adoptions that were finalized prior to

your date of hire are excluded.

For more information about this program, contact

the Freddie Mac Benefits Center at (800) 431-

2363 and/or see the program description on the

NetBenefits, HomeFront, or Total Rewards Web sites.

For information on adoption leave, see page 39.

Long-Term CareFreddie Mac offers a group, employee-paid Long

Term Care (LTC) insurance plan underwritten by

John Hancock Life Insurance to help fill the gap

where Medical plans and government programs do

not provide coverage for extended care. Participants

will be able to take advantage of Freddie Mac’s

discounted group plan rather than securing a plan

individually.

All eligible employees may apply for LTC insurance,

as well as their spouses, same-sex domestic

partners, parents, parents-in-law, grandparents,

and grandparents-in-law.

Additionally, Freddie Mac retirees and their spouses

can apply, and all eligible family members can apply

whether or not the employee or retiree applies.

For more information about the LTC insurance Plan,

see the Long-Term Care site on HomeFront or call

the John Hancock Customer Service Center at (800)

222-8868.

Educational Assistance ProgramTo support you in continuing your formal education,

Freddie Mac offers reimbursement for accredited

college, university, or certification courses that

will enhance your skills in your present position or

prepare you for a realistic future assignment with

Freddie Mac.

Educational Assistance Program — Monica’s storyMonica joined Freddie Mac as a full-time employee in January 2010. In April, she decided she’d like to go to school at night for an accounting degree but thought she couldn’t afford it. Then, Monica learned she was eligible for the company’s Educational Assistance Program, which would reimburse her up to $5,250 annually for eligible expenses. Monica applied and was accepted to Georgetown University and was able to sucessfully utilize the education reimbursement program with her manager’s approval.

44


You may be reimbursed up to $5,250 per year

(prorated if you are a part-time employee working

fewer than 38.75 hours per week) for eligible

expenses, including:

n Registration fees

n Required textbooks

n Tuition

n Lab fees

n Courses leading to a certification

n Certification exam fees

All reimbursements are based on the grade you

receive (no reimbursement is available for grades

below a C or for certificate programs):

n Undergraduate programs: 100 percent for a

C or better

n Graduate programs: 100 percent for a B or better;

50 percent for a C.

For more information about the program, including

tax implications, review the summary that is located

on the NetBenefits, HomeFront, or Total Rewards

Web sites, or contact the Freddie Mac Benefits

Center at (800) 431-2363 to speak to

a representative.

Transportation BenefitThrough the WageWorks® Commuter Benefits

Program, employees who take public transportation

to work, ride in a vanpool, or park near public

transportation can use pre-tax dollars to purchase

transit passes each month and receive free home

delivery of monthly passes and vouchers. For more

information about this program, please visit the

WageWorks Commuter Benefits Program site

on HomeFront.

Concierge ServicesThe Freddie Mac Concierge Services are provided

as a benefit to employees and members of their

households, and there is no cost for accessing

and using the service’s basic research and

recommendations. If you need to have your house

cleaned, your car detailed, or need to find premium

tickets for hit shows, concerts or sporting events,

contact the Concierge Service via HomeFront. The

password is “Freddie.”

Fitness Center and Regional Health Club ReimbursementThe home office fitness center facilities are

convenient for most Northern Virginia employees

to use. For employees who work outside of our

Northern Virginia offices and work more than 20

hours a week, Freddie Mac offers reimbursement for

health club membership dues of up to $250 per year.

This program is not restricted; it allows you to join

the health club of your choice. For more information,

go to the benefits page on HomeFront.

Healthy Lifestyles Tools

In addition to offering a range of Medical plan options, Freddie Mac provides you with health and wellness programs and resources, such as the Wellness Center and the regional health club reimbursement, to help you lead a healthier life.

45

I N C L O S I N G I N C L O S I N G

48

Throughout this brochure, we’ve overviewed a range of benefits available to employees. At Freddie Mac, we respect your goals to protect and enhance your personal and professional life, your health, your money, and your time. We’re striving to be an employer that helps you meet these goals.

Flexibility is vital as you juggle multiple demands and responsibilities, and your benefits needs shift over time. The following contains important additional information about making changes to benefits for which you enroll, and amenities that improve the quality of your life.

In Closing

46


49

Making Changes to Your CoverageOnce you have enrolled in your flexible benefits, your

elections remain in effect through Dec. 31 of the

applicable plan year (Jan. 1–Dec. 31). You may

re-enroll or make changes to your benefits only:

n During Annual Enrollment

n If you experience a status change

n If you qualify for a special enrollment period as

described in the applicable Freddie Mac Summary

Plan Descriptions

Annual EnrollmentFrom time to time, your benefit needs may change.

That’s why, in addition to enrolling when you first

become eligible, you have the opportunity to make

certain changes to your benefits near the end of

each year during Annual Enrollment.

During Annual Enrollment, you may choose to make

no changes to your current benefit elections or to

make new benefit elections for the upcoming plan

year. If you decide to make new elections, you may

also change your coverage level for those programs

that allow you to cover eligible family members.

The benefits you choose during Annual Enrollment

are effective for the next full plan year (Jan. 1 through

Dec. 31), unless you experience a status change.

If, after reviewing your current elections, you wish

to make no changes for the next year, no action is

necessary. Your current elections (including Vacation

Purchase and Flexible Spending Accounts) will

automatically continue into the next plan year at the

next year’s contribution rates, as applicable. It is your

responsibility to review and update, as necessary,

your elections each year during Annual Enrollment.

47


Status ChangesOutside of Annual Enrollment, you may only change

your benefit elections or covered family members if

you experience a status change. These events vary

from plan to plan and are detailed in the SPDs. They

may include:

n A change in your legal marital status (marriage,

divorce, death of a spouse, legal separation,

annulment)

n If your spouse’s Annual Enrollment period differs

from Freddie Mac’s Annual Enrollment

n The commencement of or return from a long-term

unpaid leave of absence

n A change in your dependent’s eligibility (change

in age or change in student status)

n A change in domestic partner status (gain or loss)

n A change in the number of your eligible

dependents (birth, death, adoption, placement

for adoption)

n A change in employment status (termination

or commencement of your employment, your

spouse’s employment, or your dependent’s

employment)

n A change in dependent care

If you need to make a change to your benefit

elections as a result of a status change, log on to

http://netbenefits fidelity com, or call the Freddie

Mac Benefits Center at (800) 431-2363. You must

make any changes to your elections within 30

days of the event, and any election change you

make must be consistent with the nature of the

status change. For example, if you currently have

Participant Plus One coverage and you would like

Family coverage because of the birth of a child,

you must add the new dependent by going online

to http://netbenefits fidelity.com or by calling the

Freddie Mac Benefits Center at 1-800-431-2363

within 30 days of the event. Calling your carrier does

not satisfy this requirement.

After the 30-day deadline, requests for election

changes will not be considered “on account of” the

event and will be denied. If you miss the 30-day

deadline, you will not be allowed to make the change

until the next Annual Enrollment. Any corresponding

change in the amount you contribute toward the

cost of coverage (for example, from Participant Only

to Family coverage) becomes effective as soon

as administratively possible, and your contribution

will be adjusted in the next available pay cycle.

Such contribution changes are typically reflected

in your pay advice in approximately one or two

payroll cycles. No retroactive contributions or pay

adjustments or retroactive changes to FlexDollars

will be made under any circumstances. If, as a result

of the status change, you are required to provide

evidence of insurability (EOI) — or proof of good

health — the change becomes effective on the date

your coverage is approved.

48


AppealsOnce you enroll or are assigned default benefits for

a particular year, your benefits elections stay in effect

for the duration of the plan year. Compliance with

this IRS requirement helps ensure that the pre-tax

dollars you use to buy cafeteria plan benefits remain

nontaxable. If you believe you have been adversely

affected by a decision of Freddie Mac concerning

your flexible benefits enrollment, you can request a

review of the decision by the Freddie Mac Flexible

Benefits Plan Appeals Committee. The Committee’s

sole purpose is to review appeals concerning

enrollment, and to evaluate such appeals in the

context of the status changes discussed earlier in

this brochure. This request must be made within

30 days of Freddie Mac’s decision concerning your

enrollment, or you will lose your right to appeal.

You must make the request in writing. The request

49

This booklet provides very general information about numerous Freddie Mac plans, programs, policies, and procedures. For more detailed information, including (but not limited to) information about limitations, enrollment, waiting period and eligibility, you should refer directly to those plans, programs, policies, and procedures (the “documents”). In the event of a conflict between this booklet and those documents, those documents will control. This booklet is not, nor is it intended to be, a Summary Plan Description (SPD). SPDs for certain benefit plans can be found on HomeFront or under the Reference Library tab on NetBenefits. The language used in this booklet is not intended to create, should not be construed to create, and shall not be deemed to constitute, a contract between Freddie Mac, and/or any one of Freddie Mac’s employees, former employees, or any person who may be rendering services to Freddie Mac at any time (including, but not limited to, individuals classified or treated as independent contractors and/or employment service temporaries).Freddie Mac reserves the right to amend, suspend, terminate, or modify any of the underlying plans, programs, policies, and procedures described in this booklet, the documents relating thereto, or this booklet itself, at any time.

must also contain all information, issues, and other

documentation needed to support your position.

You may mail your appeal to the Benefits electronic

mailbox ([email protected]) or send it via

U.S. mail to the following address:

Freddie Mac Appeals Committee, MS A33 8250 Jones Branch Drive McLean, VA 22102

The Appeals Committee will review and decide on

your appeal normally within 30 days of the date you

submit your appeal. If additional time is required,

you will be notified of the delay.

I N C L O S I N G

50

In Addition ...

Your Healthn Wellness seminars

Your Moneyn ATM machines

n Company-matched charitable contributions

n Employee Mortgage Service

n Employee Referral Awards

Your Timen Home Closing Time-Off benefit

n Volunteer Program

Your Lifen Business casual dress

n Dry cleaning services

n Food-to-go

n Free or paid parking

n Library

n Mail services

n Service awards

n Employee Network Groups

n Training and career development

We’re delighted to provide

you with the excellent benefits

package outlined in this

booklet. It’s also our pleasure

to provide you with additional

offerings that enhance your

health, your money, your time,

and your life. You don’t have

to enroll ... For the company’s

employees, they’re part of the

territory. Take a look at the

information [at right], and see

the possibilities.

On a busy day, you can grab dinner to go and

don’t have to stop on the way home to pick up

your dry cleaning or mail a package. You can make

contacts and give and receive support as part of

an Employee Network Group. You can explore

company-sponsored training and professional

development that prepare you to contribute fully and

take advantage of growth opportunities. You can

give back to the community by taking advantage

of our volunteer program and matching charitable

contributions.

Freddie Mac is glad to have you as part of the team. We’re proud of our mission to make home possible for millions of America’s families; our inclusive culture and our commitment to diversity; and our employees’ talent and dedication. Welcome!

2010 Benefits Brochure

Documents

Transcript of 2010 Benefits Brochure