UNITED KINGDOM Benchmark Analysis ‰ Medical (PMI) o At the lower employee levels, ABC UK is better than most Small companies in their provision of PMI. o At senior levels they are on par with the market norm as most of the Small companies offer their senior employees full PMI (i.e., family coverage). ‰ Vacation and Critical Illness / Personal Accident Insurance o There is insufficient data to run any comparisons for these benefits. Conclusions and Observations As the above analysis indicates, ABC UK Ltd’s employee benefits program has competitive strengths and weaknesses when compared with its peers. Pension ABC UK’s practice of providing a Defined Contribution Pension (DC) scheme ranks favorably against other Large and Small Companies. However, their contribution level of 7% is lower than most employers for senior employees, who more commonly contribute 10%. At lower levels they are above market norm contributing 7% compared with a range of 6% to 5%. ABC also ranks rank favorably against other Large and Small Companies in terms of providing Individual Pensions. There was insufficient data to compare contribution rates. ABC UK’s normal retirement age (65) is somewhat higher than the more typical age of 61 or 62 for senior executives. Life/Accident ABC Ltd, who offers four time’s salary, is slightly above norm compared with most UK Large Companies who offer life insurance coverage at a rate of three or four times salary. Among Small Companies this benefit is not as prevalent, but 40% of employers do offer life insurance, typically at a rate of four times salary. Disability The vast majority of Large Companies, and about half of Small Companies, offer PHI (Long Term Disability) coverage for their most senior employees. Providing this benefit for lower level employees is much less prevalent. Because ABC UK provides this benefit at any employee level, we conclude it meets benchmarks in this category. ABC UK Ltd Page C - 10