Overview

To encourage continued, long-term savings in the company’s 401(k) Savings Plan, the company’s Board of Directors has approved a one-time special contribution to the Travelers
401(k) Savings Plan, to be paid to individual employee plan accounts on January 29, 2009 (viewable on January 30). This special contribution is being made in addition to the
401(k) company match.

It is the Board’s intention that this 401(k) special contribution demonstrates the company’s commitment to Travelers’ retirement savings programs and emphasizes the importance of long-term savings plans.

Amount of Your Contribution

• The special contribution will be 1% of base salary, with a maximum of $500.
  
• Base salary is defined as your regular base salary (expressed as an annual rate) in effect as of December 31, 2008. 
  
• For part-time employees, your salary is your part-time regular base salary (expressed as an annual rate), not your full-time equivalent salary.
  
• Base salary does not include such things as bonuses, overtime pay, shift differentials or catastrophe pay.
  

Eligibility

To receive the special contribution, you must meet the following criteria:

• You must be a regular status U.S. based employee of Travelers, actively employed or on a leave of absence on December 31, 2008 and on January 26, 2009.
  
• Full-time employees must have a base salary (as defined above) of $60,000 or less as of December 31, 2008.  
  
• Part-time employees must have a full-time equivalent base salary (as defined above) of $60,000 or less as of December 31, 2008. 
  
• You must not be a “highly compensated employee” for 2009 under the tax laws.
  
• You do not need to be contributing to the 401(k) plan.
  
• Temporary employees, contingent workers and contractors are not eligible. 
  

Vesting

You will be vested in the special contribution once you have earned three years of vesting service with Travelers.  If you already have three years of vesting service, you are immediately vested in the special contribution.

View Your Contribution or Make Investment Changes

On or after January 30, 2009, login at Fidelity NetBenefits at www.401k.com.  Select the Travelers 401(k) Savings Plan and click on Transaction History on the left navigation bar.  View your recent history and look for the contribution made on January 29, 2009.  The special contribution will be contributed to your matching contribution account.  If you have never visited NetBenefits, click on “New User Registration” to establish a Customer ID and PIN. 

The contribution was invested according to your current investment elections for payroll contributions.  If you do not have a 401(k) account or if you never made investment elections, your contribution was invested in the Vanguard Target Retirement Fund closest to your projected age 65 retirement date.  You can move your money between investments by clicking Change Investments on the left navigation bar. 

If you need any assistance, call the Fidelity 401(k) Service Center at 800.480.9980. 

Related Programs & Resources

Travelers encourages you to become actively engaged if preparing for your own retirement – whether retirement is quickly approaching or years away.  The following programs and resources may be useful to you.

• 401(k) Savings Plan Overview
  Read an overview on the 401(k) Savings Plan and view the 401(k) Benefit Plan Summary (PDF). 
• 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
  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.
  
• 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.  Visit Fidelity’s NetBenefits at www.401k.com to learn more about retirement planning, enroll in the Automatic Increase Program, Rebalance your account, manage your account and much, much more.
  
  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.