MEMORANDUM


DATE: September 12, 2008

TO: All Benefits Eligible Employees

FROM: Yasuko Shirakawa,
Benefit Coordinator, HREO

SUBJECT: Annual Benefits Open Enrollment – September/October 2008

The annual open enrollment period for CalPERS Health, CSU Dental, Dependent Care Reimbursement Account (DCRA), Health Care
Reimbursement Account (HCRA), and FlexCash plans is being held September 15 through October 24, 2008. The effective date for all
changes made during open enrollment will be January 1, 2009.

No action is required of employees who do not wish to make any changes to their Health, Dental or FlexCash plans. However,
re-enrollment is required for continued participation in the HCRA/ DCRA plans.

CALPERS HEALTH PLANS

There are no benefit changes to any of the CalPERS HMO and PPO Health Plans in 2009.

Health Plan Options in 2009

The following health plans will be offered in 2009:

• Blue Shield HMO
• Blue Shield NetValue HMO – High Performance Physician Network
• Kaiser Permanente
• PERS Care
• PERS Choice
• PERS Select High Performance Physician Network
• Peace Officers Research Association of California (PORAC), an Association plan. To enroll in PORAC, eligible employees
   must belong to and pay dues to the Association. Currently, only Unit 8, Statewide University Police Association (SUPA) employees
   are eligible to enroll in the PORAC health plan.

Name Change

Blue Cross of California which administers the CalPERS PPO plans is now Anthem Blue Cross.

Eligible employees who wish to enroll in health coverage, change health plan carriers, and/or add dependents must submit a
completed Human Resources and Equal Opportunity (HREO) Health Benefits Worksheet to the Benefits Office by Friday, October 24,
2008.

To find a personal physician under the Blue Shield HMO or Blue Shield NetValue HMO plan, go to www.blueshieldca.com/calpers.

To view a listing of Blue Cross of California PPO network physicians for PERS Care, PERS Choice or PERS Select, visit
http://www.bluecrossca.com/calpers/.

A comparison chart of premium rates for these plans is available on the HREO website:

2009 StaffFacultyMPP Rate Sheet

2009 Unit 6 Rate Sheet

To assist employees with open enrollment choices, a Health Plan Chooser tool has been implemented by CalPERS. This tool will allow
employees to view health plans in side-by-side comparisons, and rank them based on personal references. You can access the Health
Plan Chooser at http://calpers.chooser2.pbgh.org/. For additional information regarding CalPERS health plans, you may visit the
CalPERS website at http://www.calpers.ca.gov.

DENTAL PROGRAMS

For 2009, CSU continues to offer eligible employees two dental plan coverage types: Delta Dental PPO, an indemnity plan, and
DeltaCare USA, a pre-paid dental health maintenance association. The university will continue to pay the entire dental premium.

Implants Are Now Available in the Delta Dental PPO Plan

Beginning January 1, 2009, implants will be covered under the prosthodontic benefit level (50 percent) and will be subject to the
plans’ prosthodontic limitation (once every five years), as well as the plans’ annual maximum and deductible. As an alternative to
partial and full dentures and bridges, dental implants and related procedures offer enrollees and additional choice to replace
lost teeth. Implant procedures include:

• Surgical placement of the implant (and removal, if necessary)
• Implant-supported prosthetics (crowns)
• Any repair and/or recementation

Employees are encouraged to obtain a pre-determination of benefits from Delta Dental to determine Delta Dental’s and the
employee’s share of the cost(s) relating to this service.

Please note, this additional benefit is not available on the DeltaCare USA plan.

Frequency of Certain Dental Services Now Based on Calendar Year Cycle

Effective January 1, 2009, benefits for cleanings, examinations and bitewing x-rays will apply to a calendar year frequency rather
than a rolling 12-month period. This means that any time during the calendar year, Delta Dental PPO and DeltaCare USA will pay for
the following diagnostic and preventative:

• Two examinations
• Two cleanings
• Two sets of bitewing x-rays for children under age 18 or one set of bitewing x-rays for adults age 18 or over.

When the new benefit period begins on January 1, 2009, any cleanings, examinations and/or bitewing x-rays that were paid for on
behalf of the employee and/or eligible dependents in 2008, will not affect the enrollee’s eligibility to receive those same
services in 2009. For example, if an enrollee has a cleaning provided in November 2008, that cleaning will not count as one of the
two cleanings provided under the plan in 2009, even if the enrollee’s first cleaning in 2009 is less than six months from the
November 2008 cleaning.

With the new calendar method of determining the eligibility for these benefits, it will become easier for the employee to manage
their dental care.

New URL address for CSU Delta Dental PPO/DeltaCare USA website

Please note that the URL address for the CSU Delta Dental PPO and DeltaCare USA plans has been changed to:
http://www.deltadentalins.com/csu.

Participating dentists in the Delta Dental Premier and PPO networks, applicable only to Delta Dental PPO, can be identified by
accessing the Delta Dental PPO website at http://www.deltadentalins.com/csu; or employees can request a list by contacting Delta
Dental.

Employees enrolled in DeltaCare USA will continue to select dentists from DeltaCare USA’s exclusive list of providers, which is
also provided at: http://www.deltadentalins.com/csu.

Eligible employees who elect to enroll in dental coverage, change dental carriers or add dependents to their current dental
coverage must submit a completed HREO Benefits Worksheet and a Dental Plan Enrollment Authorization form (SSN, sign and date only)
to the Benefits Office by October 24, 2008.

Please see the CSU Dental Plan Comparison Chart for a summary of the Delta Dental PPO and DeltaCare USA dental plans at 2009
Dental Plan Summary and Comparison Chart.

Unit 8 employees are covered under the Basic Dental Plan; all other employee categories are covered under the Enhanced Level II
Dental Plan.

HEALTH CARE REIMBURSEMENT ACCOUNT (HCRA) and
DEPENDENT CARE REIMBURSEMENT ACCOUNT (DCRA)

The deadline to enroll in the Health Care and/or Dependent Care Reimbursement Account (HCRA/DCRA) plans for this annual open
enrollment period is October 24, 2008 for an effective date of January 1, 2009.

Current enrollees who wish to continue participation in the HCRA and/or DCRA plan in 2009 must re-enroll during open enrollment,
as continued enrollment is not automatic. Please review your enrollment choice and dollar amount to be certain that enrollment is
processed accurately.

To enroll in HCRA and/or DCRA for the 2009 plan year, please complete and return the HCRA/DCRA Enrollment Form to HREO.

The minimum monthly contribution for each plan is $20 per month ($240 annually), up to a maximum monthly contribution amount of
$416.66 ($5,000 annually). The administrative fee continues to be $1.00 per month for each plan. Please see the HCRA Brochure and
DCRA Brochure and the HCRA/DCRA Worksheet for plan information.

FLEXCASH PLAN

There is no change to the FlexCash plan. The benefit levels for FlexCash remain $128 per month for cash in lieu of medical
coverage and $12 per month for cash in lieu of dental coverage; $140 per month for both. FlexCash is available to all CSU
employees eligible for medical and dental coverage if they have other, non-CSU coverage.

Employees planning to remain on FlexCash are not required to complete enrollment forms during open enrollment. For those employees
who plan to enroll or make changes to their existing enrollment must submit a completed HREO Benefits Worksheet and a FlexCash
Enrollment Authorization Form to the Benefits Office by October 24, 2008. Enrollment in the FlexCash plan will become effective
January 1, 2009.

As a reminder, lecturers and coaches who are appointed for at least six (6) weighted teaching units (0.4 time base) for one full
semester may enroll in the FlexCash plan.

VOLUNTARY LIFE INSURANCE

Although Standard does not offer a formal open enrollment period for Voluntary Life Insurance, eligible employees can enroll in
the benefit at any time during employment. If an employee chooses to enroll after the first sixty (60) days of hire or
eligibility, the employee must submit a completed medical questionnaire along with the enrollment form.

CALPERS ONLINE SERVICES: my│CalPERS

Last year, CalPERS launched my│CalPERS, a new personalized and secure member website. my│CalPERS allows you to access all CalPERS
self-service tools and services in one, easy-to-use place with just a click of a mouse.

my│CalPERS is an integrated extension of CalPERS On-Line, the CalPERS web site. my│CalPERS provides access to your personal
information and online services, including details about health plans that are available in your area. Members will also find all
the forms and publications necessary to make informed decisions about choosing a health plan during Open Enrollment. You can
access my│CalPERS via CalPERS On-Line, or by going directly to http://mycalpers.ca.gov.

Since my│CalPERS is a secure site, you must log in each time you visit in order to view your personal data. The Log In process
requires you to only register in one place, and if you have registered to use the CalPERS On-Line services in the past, there is
no need to re-register. Members can use their existing User ID and Password. Registering is also easy and fast.