Overview

The 401(k) Savings Plan provides you with a vehicle to save for your retirement and the opportunity to receive a company match on those contributions.

You may contribute from 1 percent to 75 percent (in whole percent increments) of your eligible compensation as pre-tax 401(k) or after-tax Roth(k) contributions, up to the maximum allowed under the tax laws for the year. The maximum contribution in 2009 is $16,500 ($22,000 if you are turning age 50 or older in 2009). You may make both pre-tax 401(k) and after-tax Roth(k) contributions, but your combined contributions cannot exceed this limit.

Annually, the company matches your contributions dollar for dollar up to the first 5 percent of eligible compensation that you contribute. Your match is limited to a $5,000 overall maximum dollar limit per calendar year. In general, you must be employed by the company on the last business day of the year to receive the company match for that year. You become 100 percent vested in company matching contributions after three years of service.

Additional Details

Comprehensive information about this benefit plan is contained within the 401(k) Benefit Plan Summary. In addition, below is some important information about this plan:

• Your individual contributions and company contributions are credited to an account set up in your name. You may invest your contributions in one or more of the investment options offered by the plan, including target age-based funds. If you are an experienced investor with the expertise and time to more actively manage your account, the plan also offers a brokerage window, Fidelity BrokerageLink.
• You may under certain circumstances, request a withdrawal from your account. You may also borrow against your account, subject to limits. For information regarding tax consequences of withdrawals and for information about distribution of benefits after your employment at Travelers ends, refer to the 401(k) Benefit Plan Summary (PDF).
• You have specific rights concerning diversification of investments in company stock under the Travelers 401(k) Savings Plan. These rights are described in a notice titled Your Diversification Rights (PDF).

Eligibility

Generally, you are immediately eligible to contribute to the plan if you are a U.S. based employee of Travelers. You may begin participating with your first available paycheck after you enroll.

Cost

The amount of your contributions for a payroll period will be based on your contribution percentage and your eligible pay during the payroll period. The amount of your contributions will change automatically when your eligible pay changes. You can change your contribution amount, stop your contributions or re-enroll in the plan at any time by calling the Fidelity Service Center or by visiting NetBenefits. Please refer to the 401(k) Savings Plan Summary Plan Description (PDF) for more details.

Related Programs & Resources

The following programs and resources may be useful to you as a participant in the 401(k) Savings Plan.

• Fidelity Investments
  Travelers has contracted with Fidelity Investments to provide administrative services to the plan. Fidelity is responsible for processing all plan transactions, providing investment information, such as prospectuses, and for answering questions that you have concerning your account in the plan.
  
  You can access your account online by visiting NetBenefits at www.401k.com. You may also access your account 24 hours a day, seven days a week by calling the Fidelity Service Center at 800.480.9980. If you are hearing impaired, dial 800.610.4015 (TDD/TTY). Outside the U.S., call collect 508.787.9494. Fidelity Service Center Representatives are available on any business day from 8:30 a.m. to midnight Eastern Time.
  
  

• Financial Engines
  Travelers offers the services of Financial Engines, L.L.C. an independent advisory firm, as another resource to help you with decisions related to retirement savings and investment selection. Financial Engines provides investors with personalized advice and portfolio management - online, on paper and by phone. Click here for access instructions and more information.

• Retirement Readiness
  It is more important than ever that you are actively engaged in preparing for your own retirement - whether retirement is quickly approaching or years away. While Travelers continues to invest in your future through the Pension Plan, 401(k) Savings Plan and contributions to Social Security, you must also play an active role from the beginning of your career to the end. Learn more about how you can ensure you're ready for retirement.

• Tier Structure
  The Travelers 401(k) Savings Plan currently offers 25 investment options, plus a brokerage window and two frozen stock funds. To assist you with your selections, the investment options are organized into four tiers. The tiers group the investment options to allow you to more easily select those that are appropriate for your individual goals, time horizon and tolerance of risk. Learn more about the investment tier structure.

• 2009 401(k) Special Contribution
  To encourage long-term retirement savings, a one-time contribution was paid to all eligible employee accounts in 2009. Learn more about the contribution.
  

How to Enroll

You can enroll in the 401(k) Savings Plan at any time by contacting the Fidelity Service Center at www.401k.com or 800.480.9980 24 hours a day, seven days a week. If you are hearing impaired, dial 800.610.4015 (TDD/TTY). Outside the U.S., call collect 508.787.9494. If you are a new employee, you will be automatically enrolled 40 days after your hire date with a 5 percent pre-tax contribution rate if you have not taken any action on your own prior to that date. However, you can change that election at any time by calling the Fidelity Service Center.

For additional information concerning the Plan including eligibility, contribution limits and available investment options, please refer to the 401(k) Savings Benefit Plan Summary (PDF).