Frequently Asked Questions (Faqs) Ibm Strategic Relationship April 2009

Frequently Asked Questions (FAQs)
IBM Strategic Relationship

April 2009
NOTE: This document is intended to answer general questions regarding the IT Strategic
Relationship and IT Staff Reductions. It is intended to provide useful information for common or
frequently asked questions; however it is not a legal document or a replacement for any IT or KP
policy. IT Human Resources reserves the right to change this document at any time. The content
reflects questions and answers published for the period March 16 through April 13.
The IBM Strategic Relationship

Scope
Size
Financial aspects
Background
Privacy and security of KP data
The Transition
IBM staffing process
Re-employment with KP
Termination from KP
Impact to IT support, services, workflow, and processes
Other
Severance
Eligibility
Payment, benefits, and services
Retirement
KP Benefits
About IBM
FAQ IBM Strategic Relationship, April 2009 page 1

The IBM Strategic Relationship
Scope
Q. What is the specific scope of the agreement with IBM?
A. By leveraging IBMs expertise in data center operations, Kaiser Permanentes in-house
IT division can focus on developing the services and technologies that power real-time health
care.
The functions to be transitioned to IBM are:

Enterprise Engineering and Enterprise Operations
Command center (monitoring, batch processing, system recoveries, situation
management)
Implementation services for all platforms
Physical database management, including Teradata, Oracle, and SQL
Mainframe operations, technical support, and engineering
Messaging and collaboration applications, including Lotus Notes
Mid-range servers operations, technical support, and engineering (Unix, Tandem,
Dec, etc.)
Storage operations, technical support, and engineering
Wintel servers operations, technical support, and engineering
Data center raised-floor management, including racking, stacking, cabling, and
preparing systems for production
Service Management Processes
Capacity and performance management
Change management
Command center monitoring (excluding National Operations Center)
Incident management (excluding end users)
Lifecycle management
Problem management
Quality assurance
Release management
Systems management
Kaiser Permanente will retain:

Engineering and Operations Platforms
Applications (e.g., Kaiser Permanente HealthConnect and kp.org)
Data center facilities
Desktop/notebook/PDA
High-speed print
Network and telephony
Video tape archive
Service Management Processes

Asset management
Contract administration and supplier management
Availability management
Project management
Security management
Service desk/solutions center
Vendor/supplier management

IT Infrastructure Strategy Program
Disaster recovery engineering
Network strategy
Continuous availability
Data center strategy
Q. Are assets included in this strategic relationship?

A. No facilities, buildings, laptops, or computers are in scope.
Q. Are employees moving out of Kaiser Permanente facilities?

A. That will be determined during the transition period.
Q. Will IBM be managing the physical Citrix server infrastructure required to run the Epic
HealthConnect test and production systems?
A. Yes, IBM will be managing the Citrix servers as part of their management of data center
operations.
Q. Who owns the Configuration Management Database (CMDB)?

A. IBM will be responsible for configuration management. As part of this responsibility, IBM will be
working closely with the TIP project managers and HP in the Configuration Management
Database (CMDB) implementation.
Q. I assume, from the announcements made to the media, that KP Health Connect is
apparently a big part of this arrangement with IBM. How will this affect our relationship
with Epic and the process we currently have set up to modify and enhance KP
HealthConnect on a regular basis?
A. We do not expect any changes in our relationship with Epic as a result of this announcement.
Some media reported inaccurately that IBM will manage health records for Kaiser Permanente's
8.6 million U.S. members, but that is not the case. This relationship includes only data center
operations management.
Q. The Enterprise Capacity Planning (ECP) group is part of the IBM deal. One of the
significant services that ECP provides is load/performance testing of the applications. Is
this service going to be provided by IBM? If not, is there any possibility to retain this
capability and its associated staff within KP-IT. A number of us are in somewhat panic
mode trying to figure out how to build this capability within our own teams.
A. There are several clauses in the agreement to address this service and IBM will provide the
same performance/load testing for applications. Per the agreement, IBM is responsible for
capacity management --- the process for planning for adequate IT resources required to fulfill
current and future resource requirements and includes planning for the efficient and effective use
of existing IT resources and identifying any change in the type and quantity of IT resources
necessary to perform the Services. It includes performance monitoring, analysis and tuning as
well as understanding current and future demands on equipment, software and other computing
resources, influences on demand and developing a capacity plan for equipment, software and
other computing resources to help achieve the service levels. As such, there is no need to
duplicate this support within IT.

Size
Q. The announcement I received refers to 700 positions that will transition from KP to IBM,
and an additional 160 positions which will be eliminated. Are these numbers for one
particular region or service area or all of KP?
A: As a result of the IBM relationship, employees are impacted across data center operations.
While the largest impacts are in Corona, Napa, Irvine, Pasadena, Walnut Creek, and Pleasanton
Calif., and in Silver Springs, Md., there are other locations where employees support data center
operations and where positions are being eliminated.
Q. Will the 300 employees hired by IBM absorb the workload of 700 staff?
A. We expect IBM to run a leaner staff, based on the companys expertise and proven processes
for running high-performing and operationally efficient data centers. We also expect that IBM will
supplement the transitioning KP staff with in-house staff that has the expertise and skill set
needed to support the continuous improvement of our data center operations
Q. How many staff members are affected?

A. The strategic relationship with IBM affects about 700 people.
Q. Aside from the Infrastructure Management Group (formerly CTO), are other IT groups
impacted by the IBM relationship?
A. Some associated positions in COO are affected.

Financial aspects
Q. Will the engagement with IBM result in cost savings? Will the IBM experience be
different from the Clinical Information System (CIS) experience (which was abominable)?
What can we do to help resources or subject matter experts who may be impacted?
A. We expect a net savings over the life of the contract, but this relationship is not about cost
savings. It is designed to help us enhance the technology systems that power the services we
provide to our members, patients, and physicians. The relationship will leverage IBMs expertise
in managing data center operations. We expect the relationship to help us accelerate our
capabilities.
As you may be aware, the CIS project involved application enhancements to some of our clinical
information systems. Ultimately we leveraged the CIS experience in the implementation of KP
HealthConnect, which involved a much more extensive enhancement to inpatient, outpatient, and
ancillary clinical information systems.
Impacted resources will be provided with transition services that include resume writing, career
change consultation, and interviewing technique workshops; interviews with IBM; and personal
counseling available through Employee Assistance Program. If impacted employees do not
receive a job offer from IBM and they meet the severance eligibility criteria, they will be eligible for
KP severance.
Impacted employees may also apply for internal opportunities within KP. As announced on Jan.
16, IT suspended external hiring and exception approval is required to seek external resources
for internal opportunities.
Q. Is transitioning this work to IBM a cost-cutting measure?

A. No. While the broader business landscape has driven a number of cost-saving measures at
Kaiser Permanente, this decision was driven not by cost-cutting but by our imperative to reach
systems availability goals more quickly. The goal is to deliver real-time, personalized health care.
Q. How much is Kaiser Permanente paying IBM?

A. The value of the contract is about $550 million over seven years, and we expect a net savings
over that period. Those savings will help us to deliver on our promise of high-quality, affordable
health care.

Background
Q. How much of a plan exists that could justify selling the farm to IBM? What guarantees
of success are there to make this kind of move in these hard times? I hope Kaiser isn't
risking the future of 860 employees for the sake of a big experiment that could go flop. I
don't think Kaiser Management has a good enough track record to pull off this kind of
change in STRATEGY without showing all your cards on the table.
A: Its important to note that this is not a change in strategy. This is consistent with our strategy of
providing quality, affordable health care and doing that by leveraging technology. What this adds
is a service agreement with one of the top technology companies in the world, which has a track
record of world-class data center operations. IBM will be working with us as our data center
operations management partner to enhance the technology that powers services for our
members, patients, and caregivers. What this relationship with IBM brings to our current strategy
is expertise and experience that will help us go farther, faster in ensuring an always-on
environment for the technologies and services that the IT organization builds for the benefit of our
patients, members, and caregivers.
Q. What does IBM do better than Kaiser Permanente's Service Center can do on its own?
Will IBM own the Service Center? What is KP prepared to do if IBM cannot deliver
according to our expectations? Now that we've sold the farm to them, what guarantees are
there?
A. IBM has a core competency in managing data centers. We can leverage their existing
capabilities, resources, and expertise to become more efficient and effective operationally. It is
faster and more effective to leverage IBMs competencies than to continue building our own. By
leveraging IBMs expertise in data center operations, Kaiser Permanentes in-house IT division
can focus on developing the services and technologies that power real-time health care. The
strategic relationship with IBM positions Kaiser Permanente to accelerate technology innovation.
No assets or facilities are part of this agreement. This agreement covers IT services specific to
data center operations. As in any relationship of this nature, IBM has contractual commitments to
achieving a number of service level targets.
Q. Why was IBM chosen to run KPs data centers?

A. IBM is one of the top technology companies in the world. We chose IBM for this strategic
relationship for two key reasons:
IBM has demonstrated success with large technology transformations (1,000 to
30,000 transitioned employees) across multiple industries.
IBM will provide insights and technology solutions that complement KPs operations.
Because IBM has been in a long-standing relationship with KP, its leaders and managers have an
understanding of Kaiser Permanentes technology environment. We expect this background will
speed the transition.
Q. What kind of bidding or assessment process was used in selecting the vendor?
A. We looked at various leading technology firms in the industry for IT operations, and IBM rose
to the top early in the process. IBM is the company best suited to work with us in providing the
best possible technology to power services for our members, patients, and caregivers.

Q. How was this decision to enter into a strategic relationship with IBM made?
A. The IT Leadership Group worked collaboratively to agree on a plan that would accelerate
reaching our high availability goals and improve the member experience. The staff transitions and
reductions are only one component of the overall plan. The plan, including the strategy to enter
into a strategic relationship with IBM, was vetted and approved by the National Leadership Team
and the Kaiser Foundation Health Plan/Hospitals Board of Directors.
Q. Does this decision mean that Kaiser Permanentes current in-house capabilities are
inadequate or too expensive?
A. No. Kaiser Permanente is a leader in health IT, from wired hospitals with electronic medical
records to interactive tools for patients to manage their own health. Kaiser Permanentes systems
manage more data than is housed in the Library of Congress. Kaiser Permanente members use
the tools we provide at kp.org at a rate of 45 million times last year. To meet the expectations of
our patients, members, and caregivers, we must deliver real-time access to medical data and
tools whenever and wherever they need it. This relationship will allow us to continue to enhance
our technology capabilities and meet these rising expectations.
Q. Would Kaiser Permanente be able to continue developing new services without this
strategic relationship?
A. Yes. We have continued to enhance our data center operations and the foundation on which
our technology development is built. This relationship with IBM will allow us to leapfrog ahead in
our capabilitiesstrengthening our infrastructure more quickly to accelerate our health IT
agenda.
Q. What were the drivers behind this strategic relationship?

A. Among the ways we provide quality, affordable health care to our members and patients are
building strategic relationships with world-class companies and operating as efficiently as
possible.
Because of the extremely high utilization of our systemswe manage more data than is housed
in the Library of Congress, and our members used kp.orgs online tools at 45 million times in
2008we need to provide a technology environment that is always on. Working with IBM will
enhance the technology that powers these services that much more quickly.
Q. Did a specific event prompt this decision?

A. No. A combination of factors drove this decision:
Kaiser Permanente is a technology leader in health care and wants to accelerate its
competitive position by means of a strategic relationship with a world-class
technology leader for data center operations.
Kaiser Permanente demands the highest standard of data and application availability
for our members, patients, and caregivers.
In our drive for operational excellence, we believe we can gain efficiencies and
effectiveness by using IBMs expertise in managing data centers.
Q. What specifically is Kaiser Permanente doing to cut costs?

A. Looking at ways to operate more efficiently and cost-effectively while enhancing the quality of
our care and service is one of our most important priorities. Given the extraordinary economic
challenges facing all organizations right now, we are working harder than ever in these efforts.
In addition to deferring projects, we are reducing travel, decreasing merit increases for staff, and
eliminating merit increases for executives.
Q. Are you making this decision because of Kaiser Permanentes financial losses in 2008?
A. No. Relationships this strategic require months of discussion and planning. The strategic
relationship between Kaiser Permanente and IBM is designed to help us continue to enhance the
technology that powers the services we provide to our members, patients, and physicians. While
we expect to see a modest cost benefit over time as a result, cost is not the driving factor.

Q. Why is Kaiser Permanente doing this now?
A. We are continuing to enhance our technology foundation through internal initiatives. We can
leverage IBMs expertise and experience in data center operations to more rapidly strengthen the
systems that power the leading services we provide to patients, members, and physicians. This
strategic relationship with IBM positions Kaiser Permanente to accelerate technology innovation.
Examples include:
Kaiser Permanente HealthConnect, the comprehensive health information system
that includes one of the most advanced electronic medical records available
CarePoint, our population care tools that help clinicians leverage information to drive
preventative screenings for conditions like breast cancer and heart disease
Interoperability of our electronic medical records to benefit the care of shared-patient
populations
Q. What the benefits to members will result from our relationship with IBM? What is the
long-term payoff?
A. Kaiser Permanente is a leader in health IT, from wired hospitals with electronic medical
records to interactive tools to help patients manage their own health. This relationship is part of a
long-term strategy to enhance the technology that powers the services we provide to our
members, patients, and physicians. Kaiser Permanente is committed to delivering real-time,
personalized health care through innovations, such as population care tools that help clinicians
screen patients for life-threatening conditions like breast cancer and heart disease.
Meeting the expectations of our patients, members, and physicians requires real-time access to
medical data and tools whenever and wherever needed. This strategic relationship will help us
continue to enhance our technology capabilities and reach these high standards more quickly.
Q. Cant Kaiser Permanente build these capabilities in-house?

A. We can, and weve been building them. But, because IBM has a core competency in managing
data centers, we can leverage their existing capabilities, resources, and expertise to become
more efficient and effective operationally. It is faster and more effective to leverage IBMs
competencies than to continue building our own.

Privacy and security of KP data
Q. What about applications that Kaiser Permanente employees outside the IT organization
manage? Will they still have access to their files?
A. IBM will begin optimizing this work immediately, including advanced training and development
of the transferred employees, process optimization, and technology assessment and
enhancement. Part of the process optimization will include training Kaiser Permanente
employees outside IT who access certain applications.
Q. Where will Kaiser Permanente member information be stored?

A. Kaiser Permanente member information is stored in our data centers. However, it is the
functional security and administration roles that determine data security, not physical location.
Because were committed to the safety, privacy, and security of our patients and members, IBM
and our own internal teams are obligated contractually to adhere to established standards of
operational security.
Q. Will IBM have access to patient information?

A. Because of its long-standing strategic relationship with Kaiser Permanente, IBM is working on
different projects across the program; some may require access to patient information. IBM will
not have greater access from managing Kaiser Permanente data centers than it currently has . All
IBM resources must adhere to Kaiser Permanente security and data integrity policies.
Q. How will HIPAA information be treated under this plan?

A. All protected health information will be protected under the provisions of HIPAA.
Q. IBM has done a great deal of off shoring lately. Will patient data go offshore?
A. No. As in most technology ventures, Kaiser Permanente and IBM both employ offshore
resources for a variety of functions. While it is likely that offshore resources will be used as part of
IBMs workforce management plan, we have jointly created rigid parameters around what
functions can be offshored. Patient data is specifically restricted to IBMs domestic workforce.
Q. Who is leading the transition effort for Kaiser Permanente?

A. The IT Leadership Group decision made the decision. The IT Leadership Group worked
collaboratively to agree on a plan that would help us to accelerate our infrastructure strategy and
improve member experience. The staff transitions and reductions are only one component of the
overall plan. The plan, including the strategy to transition IT employees to IBM, was vetted and
approved by the National Leadership Team and the Kaiser Foundation Health Plan/Hospitals
Board of Directors.
The transition team is led by Dick Daniels, Senior Vice President, business information officer;
project manager Jim Crawford, VP, Southern California business information officer; Douglas
Vanemburg, executive director, IT Human Resources; Laz Garcia, VP, Enterprise Operations;
and Mike Brady, SVP, Infrastructure Management Group.
Q. How will IBMs performance during transition be measured?

A. IBM has committed to achieving a variety of service level targets. Specifics will be shared in
upcoming contract training sessions for appropriate parties.
Q. Will the transition affect employees in other areas of the IT organization?

A. A transition this big will certainly have some impact on other areas of the organization.
However, a robust transition plan is being co-managed by Kaiser Permanente and IBM to ensure
business continuity.
Q. How long will it take to transition data center management to IBM?

A. IBM will begin optimizing this work immediately, including advanced training and development
of the transferred employees, process optimization, and technology assessment and
enhancement. We expect the transition plan to take several weeks in some cases, months in
other cases, extending out to a year or more in some limited functions.
A. Will the e-mail addresses of transferring employees change to IBM.com immediately?

A. That is yet to be determined. Before any change is made, we will communicate to the
organization. Our goal is to make this transition as seamless as possible for the Kaiser
Permanente organization.

The Transition
IBM staffing process

Q. For employees affected by the IBM contract, when will their 60-day period start?
A. The 60-day period started March 16.
Q. Is there a minimum transition period that I am entitled to receive?

A. Under the plan, you will receive a notice of eligibility 60 days before your date of termination.
Q. How many employees do you expect IBM to hire?

A. IBM anticipates offering positions to about 40 percent of the affected employees, or nearly 300
people.
Q. Why arent all affected employees automatically transitioning to IBM?

A. IBM already has many of these positions in-house. IBM will leverage in-house capabilities to
run a leaner staff, based on the companys expertise and proven processes for running high-
performing and operationally efficient data centers.
Q. What process will Kaiser Permanente employees follow to discuss their careers with
IBM?
A. From March 23 to April 10, IBM will conduct interviews with Kaiser Permanente employees.
During the week of April 13, IBM will distribute electronic offer letters to those employees the
company wants to join the IBM team that manages Kaiser Permanentes data centers.
Q. Will there be flexibility in completing the IBM profile for employees who are on PTO or
on leave of absence?
A. Employees who are on PTO or on a leave of absence are asked to notify a member of the IBM
HR Transition team of their availability as soon as possible, and IBM has agreed to review the
profiles when they are submitted to them. Please keep in mind that interviews will be conducted
from March 23 until April 10 and employment offers will begin on April 14. Employees should
make every effort to complete their profiles during that timeframe.
Q. Is Kaiser Permanente providing IBM access to our performance appraisals during the
selection process, or will the selection be based entirely upon our IBM profile and the two
interviews?
A. IT HR policy is that we provide internal references only. Therefore, we expect that your KP
performance appraisal and KP managers references will not be shared with IBM. The IBM profile
document that you received will be one of the tools that IBM will use to understand your role and
responsibilities. In addition, IBM will conduct interviews which will be used in their hiring
decisions.
Q. What are IBMs selection criteria for jobs?

A. IBM will evaluate each employee's overall technical and professional job skills and experience
levels. IBM will be looking for specific skills on a position-by-position basis. As IBM managers
meet with you and talk about the skills needed for the new organization, they'll be better able to
evaluate best fit.
Specific areas IBM will be looking at are (1) technical knowledge competency; (2) ability to
explain concepts and terminology; (3) ability to logically solve problems and complete tasks
required on the job; (4) ability to deal with situations involving changing demands, uncertainty,
and stress; (5) current understanding of customers business, needs, and goals; (5) ability to
overcome challenging or difficult obstacles to improve results; (6) ability to proactively identify and

take responsibility for tasks and decisions in a timely manner; and (7) ability to collaborate and
work effectively with individuals and teams inside and outside the organization.
Job offers will be extended to the employees IBM believes are the most qualified to meet these
short- and long-term business needs.
Q. How long will the career discussion process take?

A. Career discussions will begin before the end of March and be completed by the end of
April.
Q. Will there be any open positions that I can post for during the transition?
A. Yes, some open positions will be available.
Q. Will the IBM manager who interviews me be my future manager?

A. The IBM manager you interview with from may or may not be your direct line manager if you
accept an offer from IBM.
Q. When will affected employees know if they have an offer from IBM?
A. IBM will be conducting career discussions with affected employees over a 30-day period.
Offers will be made by April 15, 2009.
Q. If I dont receive an offer from IBM by April 15, when does my employment with KP end?
A. Employees who are in scope for the IBM transition received 60 days notification on March 16
of the elimination of their positions. All employees are expected to continue working in their
current roles and to assist with the transition to IBM.
By April 14, employees will be notified of an offer from IBM. If you do not receive an offer, you will
receive a work plan, developed collaboratively between you and your manager, that will clearly
identify your role during the IBM transition period and when your employment will end with KP, at
which time you will be eligible for severance.
Transition plans will be handled on a case-by-case basis. We expect most employees will be
asked to stay beyond the 60 day notification period, and will be eligible for severance at the end
of their specified transition period. If you choose to leave before the end of your specified
transition period, it is considered a voluntary resignation and no severance will be paid.
Q. There is a statement in the Transition and Severance Benefits that defines Transition
Status as, "During the Transition Period, until and unless the employee obtains a new
regular position within the Company, an eligible employee will not have an active job
assignment, except for a reasonable period of time for transition from the employees
current position or as otherwise specified by the Company in particular cases."
This seems to contradict the statement in the letter that says, "you are required to
continue with your current job at KP-IT." At this point, it would seem that my day-to-day
duties revolve around the job interview process with IBM, and assisting with the transition
to IBM. All other pre-transition tasks are on hold, since I don't have an active job
assignment. Is this correct?
A. Employees who are in scope for the IBM notification will be transitioned in accordance with the
language or as otherwise specified by the Company in particular cases. Employees affected by
the IBM strategic relationship will have an active job assignment, and pre-transition tasks will not
be on hold unless employees are so advised by their managers. ITs goal is to maintain our daily
operations through the transition date in order to minimize disruption to clients and patient
services.

Q. How long after 4/14 will we find out our transition plan and job end date? In case I am
not picked for a job with IBM, what can I tell a prospective employer about my availability
without impacting my severance?
A. Transition plans will be handled on a case-by-case basis and will be communicated in the
weeks following the IBM job offers. To ensure a smooth transition with minimal disruptions, it will
take some time before we can define each individuals transition plan and end date. We expect
most employees will be asked to stay beyond the 60-day notification period, and will be eligible
for severance at the end of their specified transition period. If you choose to leave before the end
of your specified transition period, it is considered a voluntary resignation and no severance will
be paid.
Q. Is it true that some people will be asked to stay beyond 5/15? If so, does the 60 day
period reset? Will there be a specific end date? Is there a minimum extension period?
A. Yes, it is true that some people will be asked to stay beyond 5/15. The 60-day period does not
reset. Employees will be advised on a case-by-case basis of their specific job end date. There is
no minimum extension period.
Q: When would people be informed that they will need to stay beyond 5/15? How does this
affect the 60 day notice period that ends on 5/15?
A. Employees will be informed as soon as possible after the IBM hiring decisions are completed.
If the transition period is extended beyond 60 days, employees will be eligible for severance and
outplacement benefits provided they are otherwise eligible and they do not resign before the job
end date/transition period which is communicated to them.
Q. If someone has already obtained a position either within KP or outside, but is asked to
stay on, how does this affect their rights as outlined in the transition documents?
A. If an individual resigns from KP before the end of their specified transition period, they will not
be eligible for severance.
Q. Several staff have inquired into accessing employment sites and responding to external
job postings using Kaiser resources (Internet & PC). Can you please identify what level of
activity is allowed for staff designated to be transitioned? I don't want to jeopardize any
staff's or my own status if this isn't allowed.
A. Managers may authorize the use of company equipment as long as it does not interfere with
KP business nor adversely affect the employees ability to fulfill their job responsibilities and meet
deadlines.

Re-employment with KP
Q. Am I eligible to apply for other positions within Kaiser Permanente?
A. Yes. Affected employees may apply for any open positions at Kaiser Permanente for which
they are eligible.
Q. Will I be allowed to remain a Kaiser Permanente employee if I dont accept an offer from IBM?
A. IT employees who decline IBM offers will remain with IT through their transition period. Please
note that declining an IBM offer will result in reduction of severance pay. Resigning from IT before
the end of the transition period eliminates eligibility for severance pay.
Q. After joining IBM, will there be a minimum time for which one will have to work with
IBM? Also, will there be a minimum period of time during which one would not be able to
join KP again?
A. Employment with IBM, like employment at KP, is at-will, and you are under no contractual
agreement to remain employed by IBM for any specific time. We would hope that by choosing to
join IBM, and focus on the KP business that you already know, you would be interested in
continuing in this capacity to provide services to our members and patients. If you accept an offer
of employment with IBM, and subsequently leave that employment, there is no waiting period to
return to KP employment, should you be offered a regular employee position.
Q. How do employees apply for jobs already posted in KP? Will they need to complete the
EEFIT form and obtain approval from their current manager?
A. Yes, you will need to follow the existing IT process for applying to internally posted positions.
Q. If I accept a new position in KP (either IT or regional), can I start the new job on or
before May 15? If an approval is necessary for me to start a new KP job prior to May 15,
what steps do I need to complete and who will be the "approver"?
A. You may transfer to another position within KP provided your manager has approved an EEFIT
form. In CTO, your vice president must sign your EEFIT form. All internal transfer policy
provisions apply. See the IT Internal Transfer Policy for more information.
Q. Will I be considered for open positions in KP-IT, Program Offices, or the regions?
You are eligible to apply for open positions, but will not receive any hiring preferences because of
your transitional status.
Q. Will I be able to automatically assume a comparable position, or do I have to apply and

interview? Do managers have the right to reject my application?
A. All transitional IT employees will be required to apply and interview for positions they are
interested in. An interviewing manager does have the right to reject transitional employees
applications if another applicant is determined to be a better fit for the position.
Q. How can I determine the current vacancies in IT or KP?

A. Please refer to the Careers website. Information can be found in your severance packet.
Q. Are there limits on returning to work for IT as a contractor after terminating employment
as a regular employee?
A. The current operating guidelines of Contractor Resource Management (CRM) state that a
terminated employee of Kaiser must wait until six months have elapsed from his or her
termination date before he or she can re-enter as a contractor.

Q. Can my date of termination be extended or shortened by management?
A. Your manager, in consultation with your Human Resources Consultant, may extend the period
of time in your transition period based on operational needs.
Q. What is a comparable position?

A. For purposes of the Plan, a comparable position includes the following characteristics, except
as otherwise specified by the Plan Administrator:
The salary for the position is comparable to your current base pay and in no event
more than a 7 percent) reduction.
Your new work location is within a reasonable commuting distance not greater than
50 miles one way from your current work location.
A comparable position may be within KP or with another organization as specified by KP. The
Plan Administrator retains sole and final discretion to determine whether a position offered to you
is a comparable position.
Q. I telecommute and am not based anywhere within 50 miles of a KP facility. What is a

comparable position for me?
A. The same policy, specified in the answer above, applies.
Q. Am I eligible for relocation benefits if I accept a comparable position with KP in another

region?
A. By definition, a comparable position will not require relocation. Relocation packages are
negotiated on a case-by-case basis.
Q. If you decide to leave KPIT and come back after 2 years for another KPIT position, will
your prior KPIT years of service be applied to your new position?
A. Certain rehired employees may be eligible for reinstatement of benefits at the time of rehire as
defined below:
Paid Time Off (PTO) accrual

An employee being rehired within two (2) years from his or her termination date AND having two
(2) years of prior regular service will be eligible to resume accruing PTO as determined by his or
her adjusted hire date and the PTO accrual rates in effect at the time of rehire. This accrual rate
will be based on the length of service from the original date of hire to the date of last termination
excluding any period not employed by a Kaiser Permanente entity. Note: Since all accrued PTO
will have been paid out at time of termination, PTO balances will always begin at zero at the time
of rehire.
Extended Sick Leave (ESL) accrual

(2) years of prior regular service will have his or her ESL balance, as of the date of termination,
reinstated upon rehire. An employee rehired after beginning receipt of retirement benefits from
Kaiser Permanente will begin accruing ESL at the rate in effect at the date of retirement, as long
as he or she returns within two (2) years and has two (2) years of prior regular service. In no
case, however, are ESL hours restored at time of rehire, for returning employees.
Q. Will service be bridged if an employee rejoins Kaiser during or after our severance
period?
A. Service is never forfeited. An employee who terminates and is subsequently rehired at Kaiser
has all prior service restored and will continue to accrue service based on the applicable rules of
each plan.

Termination from KP
Q. Can my manager give me a letter of reference for future external employers?
A. No. IT's Employment References policy prohibits managers from providing employment
references for current or former employees to parties outside Kaiser Permanente. All reference
checks on current and former employees by external parties are handled by HR Connection. Our
policy allows Human Resources to provide only dates of employment and positions held to
outside parties. Confirmation of earnings is also allowable, if an employee provides IT with signed
authorization to release this material.
Managers and employees should refer to ITs Internal Transfers and Promotions policy to
determine the appropriate procedure for providing references to managers who are considering
transitional employees for opportunities within Kaiser Permanente.
Q. How do I coordinate reimbursement for my final expense reports?

A. Please contact your manager to determine the most effective way to ensure that your final
expense reports will be approved and processed in a timely fashion.
Q. Whom should I contact if I don't receive reimbursement for expense reports prior to my
date of termination?
A. Expense reports are sent from your manager to Accounts Payable.
Q. Will I be eligible for unemployment compensation?

A. Unemployment compensation is awarded to employees who lose their jobs due to job
elimination. To apply, contact the California Employment Development Department (EDD)
Q. Will outplacement services be available?

A. Yes. Kaiser Permanente makes outplacement services available to affected employees
through the Employee Assistance Program (EAP).
Q. What is included in the outplacement services?

DBM (www.dbm.com) is the worlds leading provider of strategic human resource solutions that
help organizations align their workforces to meet changing business needs. Known for over 35
years for its innovative and effective career transition services, DBM offers in-depth capabilities in
employee transition, retention, development, and selection. Founded in 1967, the company has
more than 225 locations in over 45 countries.
Services provided include:

Access to a dedicated consultant
Unlimited access to DBMs WebCenter and proprietary databases
Access to research on more than 4 million companies
Access to more than 7 million live job leads
Much more can be found in your DBM brochure in your Severance Packet.
Q. What are you doing for employees who are being laid off?
A. Employees affected by the IBM strategic relationship will transition over several weeks and
months as work transition plans are established. Kaiser Permanente supports laid off employees
with a comprehensive severance program:
Employees whose positions are eliminated as a result of these actions receive 60-
day notice. They will receive current full pay and benefits during this notification
period.
At the end of 60 days, employees will receive applicable severance benefits,
including continued Kaiser Permanente group health benefits. The severance
depends on length of service.

In addition, Kaiser Permanente provides comprehensive re-employment, career, and
personal counseling services.
Kaiser Permanente will make every effort to help these affected employees secure
employment elsewhere within Kaiser Permanente.

Other issues
Q. Why didn't KP offer the option of taking the severance package to all 700 employees
affected before the transition and interview process began? Wouldn't this have pared
down the number of applicants and made the interviews go a little faster?
A. The continued success of IT is dependent upon many of our talented staff continuing to
provide services. It is more important to everyone to allow IBM time to interview and select those
employees who IBM feels can add significantly to the success of the strategic relationship than it
is to sacrifice the talent of our long-tenured staff and move more swiftly.
Q. Why are those impacted still here?

A. While employees who will be impacted in some way by the IBM strategic relationship have
received official notification, it is not yet clear who will actually be laid off. Those decisions depend
on pending career discussions with IBM and the transition planning to be done in the coming
weeks. We need employees to participate in the transition, and we are committed to
communicating more information as it is available. In many cases, it will take several months for
these employees to end their work assignments or make the transition to IBM.
Q. Why would affected employees continue to work for Kaiser Permanente?

A. Were committed to helping employees, whether through comprehensive severance benefits
should they be laid off, or through outplacement services should they decide to look for another
position during their notification period. Some employees may choose to leave Kaiser
Permanente before their notification period ends. Our hope is that employees will take advantage
of extended assignments to seek other employment at Kaiser Permanente and continue working
for the Program.
Q. For those of us who are no longer involved in server-related systems and had
transferred to another group (for example, workstations), but are nonetheless among the
impacted employees, what is the process for requesting a re-evaluation?
A. Significant research has already been completed to prevent errors of this type. If you believe
that an error has been made, then the issue should be taken to your manager or director, who
has the opportunity to bring it to the HR consultant's attention for additional research and review.
Q. What if I experience a qualifying event for a protected leave of absence during my

transition period?
A. If a qualifying event for a legally protected leave of absence occurs during the transition period,
the protection afforded by the law will be available to the employee. All federal and state laws
governing the location where the employee works will be followed in administering leaves of
absence for transitional employees.
Q. What if I want to take PTO on my date of termination?

A. PTO may not be taken following the termination date. All accrued but unused PTO time will be
paid to the employee in his/her final paycheck.
Q. If I have to take a medical leave before my date of termination, will I remain eligible for
severance pay?
A. Provided you are on an approved medical leave in accordance with KP-IT policies, and you
comply with all other requirements of the Plan, you will remain eligible for severance benefits
when you return to work from your leave.
Q. Is there any opportunity for HR to consider vesting pension on a pro-rated basis based
on time of service for those with less than the 5 year vesting period? This would be a more
humane approach than an all or nothing.

A: The severance plan does not provide for bridging to vesting. Plan participants never forfeit
service, regardless of how long they are gone from the employer. A former employee who returns
to work for Kaiser will pick up where they left off from a service standpoint; he or she can possibly
complete the required 5 years vesting service at a subsequent Kaiser job

Impact to IT support, services, workflow, and processes
Q. What are we doing to ensure business continuity during transition?
A. There is a robust transition plan being co-managed by Kaiser Permanente and IBM to ensure
business continuity.
Q. Will transition impact the availability of kp.org, Kaiser Permanente HealthConnect, or

other critical applications on which members and clinicians rely?
A. We are working with IBM to ensure business continuity during the transition. We expect this
strategic relationship to improve both the performance and the reliability of these applications.
Q. How are you going to ensure that there will be no negative impact to members during
this transition?
A. Kaiser Permanente and IBM are working closely on a work transition plan that ensures
business continuity. A combination of additional staff resources, processes, and technologies is
being applied to mitigate risk during transition. Our highest priority is to ensure the safety, privacy,
and security of our patients and members.
Q. Does the IBM strategic relationship affect employees outside IT?

A. To meet IBMs rigid project management processes, which help drive the companys
operational excellence, we expect changes to a variety of processes related to service requests
and definition of services. As a result, the way Kaiser Permanente employees interact with IT is
likely to change in some instances. To ensure business continuity and a successful
implementation of this strategic relationship, we will be communicating broadly and often to help
Kaiser Permanente employees make the transition with us.
Q. How do I find information on the status of tickets, moves, acquisitions, and outages?
A. In the short term, you will continue to receive the same information through the same channels
as before, and you will have access to the same help lines and online applications for tracking
tickets and projects. Over time, the IT organization will begin communicating changes to these
processes as they are rolled out.
Q. How will Kaiser Permanente employees obtain services? Who do they contact for help?
A. You will continue to receive the same information through the same channels as before, and
you will have access to the same help lines and online applications for tracking tickets and
projects. Over time, the IT organization will communicate changes to the process as they are
rolled out.
Q. With the new relationship with IBM, will laptops and/or desktop PCs be changed out
again? If so, what is the expected time frame?
A. If youre asking if you will be able to retain your KP laptop or desktop, we will check and get
back to you in the next FAQ. If youre asking if we will replace PCs and laptops, KP does plan to
refresh systems according to our usual timeline.
Q. Just wondering if there will be in-house support in the form of a real person, as there is
now. The current IT people have been so very helpful, and the personal touch was greatly
appreciated. I truly hope we will not be lost in an ocean of organizations supported by
IBM. The immediate attention to frustrating situations has kept me able to do my job with
minimal disruption. I worry that in an organization where you are not the priority, the
downtime will be much greater. I am hoping that the phone consultations will be as
responsive and knowledgeable as the current KP staff. Having someone at the facility
actually come to my workstation the same day when the telephone call could not solve the
problem has been invaluable. Will this service still be available?

A. Current support from the Help Desk and local PC technicians are not in scope for the
relationship with IBM. KP will continue to staff the Help Desk function internally. As is the case
with all KP business decisions, our goal is to provide high-quality, timely service in the most
economical manner, and therefore the service type and level are subject to change.
Q. How will this change affect the physician end-users? Will there be a change in local
support (a.k.a. long-term support)? will there be improvement in services or in the stability
of programs such as Lotus Notes, KP HealthConnect, or the network in general? Or will
the change be too remote to be felt at the front lines?
A: Kaiser Permanente is a leader in health IT, from wired hospitals with electronic medical
records to interactive tools to help patients manage their own health. This relationship is part of a
long-term strategy to enhance the technology that powers the services we provide to our
members, patients, and physicians. Kaiser Permanente is committed to delivering real-time,
personalized health care through innovations, such as population care tools that help clinicians
screen patients for life-threatening conditions like breast cancer and heart disease. Meeting the
expectations of our patients, members, and physicians requires real-time access to medical data
and tools whenever and wherever needed. This strategic relationship will help us continue to
enhance our technology capabilities and reach these high standards more quickly.
Q. How will workflow process changes during transition be communicated to IT

employees?
A. As details are finalized, we will inform managers, supervisors, and employees.
Q. We are most concerned about the effect this relationship with IBM will have on the
database administrators we work closely withthe folks who deal with the database
interfaces, build our tables, and so forth. From Phil's call, it is not clear which areas are
really affected. Can you provide any additional information?
A. Please raise specific concerns to managers or leaders within your organization, especially if
you are aware of potential negative impact to database interfaces or services.
Q. Resources on our projects may be gone, but we just don't know. How will we explain
delays due to the resource disruption to our business partners?
A. Please consult with the manager or leader in your area if there is disruption to your business
partners. Our goal is to manage the transition in a seamless fashion with minimal disruption.

Severance
Eligibility
Q. What will happen to the employees who arent hired by IBM?
A. All affected employees will receive a work transition plan with a specific end date from the
transition team and HR. They will be eligible for severance benefits upon their last day of work.
Q. Who is eligible for severance?

A. If you have received notification that your position is being eliminated, you are eligible for
severance. At the end of 60 days, employees who are not offered positions at IBM will receive
applicable Kaiser Permanente severance benefits.
Q. Is severance eligibility related to performance or other criteria?

A. An IT terminated employee may receive severance unless he or she:
Refuses to sign the Severance Agreement and General Release.
Resigns voluntarily.
Is involuntarily terminated for any cause as defined in The Plan.
Refuses an opportunity to transfer to a comparable job, as defined in The Plan.
Had negotiated an individual Severance Agreement at time of hire.
Q. Am I eligible for severance pay if I decline a comparable position?

A. In circumstances where you decline an offer of a comparable position, at the discretion of the
Plan Administrator you may nonetheless receive severance benefits for a lesser period,
depending on the nature of the comparable position offered to you and described as follows:
1. If you are offered but decline a comparable position with an entity outside KP or any KP
entity, your severance period will be equal to 25 percent of the amount your severance
period otherwise would have been had no comparable position job offer been involved, or
a minimum of four weeks, whichever is greater.
2. If you are offered a comparable position with KP or a KP entity and decline, your
severance period will be for four weeks.
Q. What is the definition of a comparable position?

A. A comparable position will include the following characteristics, except as otherwise specified
by the Plan Administrator:
The salary for the position is comparable to your current base pay and in no event
more than a seven percent (7%) reduction; and
Your new work location is within a reasonable commuting distance not greater than
fifty (50) miles (one way) from your current work location.
A Comparable Position may be within KP or with another organization as specified by KP. The
Plan Administrator retains sole and final discretion to determine whether a position offered to you
is a Comparable Position.
Q. If I decide to leave KP during the notification period before IBM makes job offers, am I
eligible for severance?
A. You need to continue to work until the end of the 60-day notification period to receive
severance benefits. If you choose to leave before that, it is considered a voluntary resignation
and no severance will be paid.
Q. If I receive an offer from IBM and do not accept it, do I get severance?
A. An IBM offer is designed to be a comparable role. If you decide not to accept IBM's offer
however, partial severance benefits will be made available. You will be eligible for 25 percent of
your severance award or a minimum of four weeks, whichever is greater.

Q. If I don't want to apply for a job with IBM, can I still get the severance package?
A. Refusing to return your personal profile to IBM or to participate in the interviewing process is
considered the same as declining a comparable job offer. In this circumstance, the employee is
eligible for reduced severance benefits of four weeks, or 25 percent of the full severance benefit,
whichever is greater.
Q. I am a recently converted contractor. I worked here as a contractor for three months,

and then as a regular employee for three months. Am I eligible for severance or re-
deployment?
A. As noted in the Eligibility section of The Plan, if you are a non-union hourly or salaried regular
employee, you are not eligible for severance benefits unless you have completed a minimum of
six months of employment with KP. Contractors are not eligible for severance benefits. Please
refer to The Plan for more information.
Q. What are the deadlines for signing my severance agreement?

A. Severance agreements are to be signed on the date of termination, unless an exception is
approved by IT management and an HR consultant (due to unavoidable circumstances, etc.). A
required seven-day revocation period follows the date of your signature, and the document will
not be fully effective until this seven-day revocation period has elapsed.
Q. What happens if I sign and return my severance agreement before my date of

termination and then accept a comparable position within KP before my date of
termination?
A. Severance agreements are to be signed on your date of termination so this situation should
not arise. However if it was signed earlier and you then accepted a comparable position within
KP, your employment with KP will not have been terminated. Your severance agreement will be
null and void, and you will continue working for KP in a comparable position.
Q. How can I find out exactly how many weeks severance pay I will be entitled to? My
situation does not match the chart provided in the severance plan. Will I lose credit for all
of my years of service in another region? (I did have a break in service.) Will I lose any
credit for any periods I was off work for a medical leave of absence/short term
disability/FMLA? During this period I did receive KP supplemental pay and return to work
in less than six months. Exactly how many weeks severance pay am I entitled to?
A. Employees who are not extended job offers by IBM will receive an exact calculation of eligible
severance benefits in their severance agreement, which they will receive closer to their end
dates. In the meantime, please schedule time with your HR consultant to review your specific
situation in detail.
Q. How are severance payments taxed?

A. Severance payments are taxed at the Supplemental income tax rates. The current Federal
Supplemental income tax rate is 25 percent. State Supplemental income tax rates vary by state:
California 6 percent; Colorado 4.63 percent; Ohio 3.5 percent; Oregon 9 percent; and New York
7.35 percent. Mid Atlantic states and Georgia do not have State Supplemental tax rates.

Payment, benefits, and services
Q. When will I receive my severance payment?
A. Severance pay available under The Plan will be paid in the form of a lump sum. In general,
payment will be made within 10 days following the date on which your release becomes effective
if you have not revoked your severance document within the allowable seven 7 days of signature.
Q. For tax purposes, are there any options for delayed disbursement of lump sum
severance or vacation pay? Or can severance be paid on the normal pay cycle until the
severance period ends?
A. Severance will be paid in the form of a lump sum. PTO is paid in a lump sum on the final KP
paycheck.
Q. Can I change my state and federal tax withholding for my severance payment if I
anticipate that my total earnings for the year may be significantly reduced due to
unemployment?
A. No. Severance payments are all taxed at the supplemental wage rate.
Q. What deductions will be made from severance payments?

A. You will have to pay applicable payroll taxes. Under The Plan, following your date of
termination and during your Severance Period, you will continue to be eligible for coverage under
KPs group health benefits, at the contribution rates then in effect for active KP employees.
Q. Are medical/dental premiums for my coverage during the severance period deducted
from my final check or severance check?
A. If you have signed the required Severance Agreement and General Release on your date of
termination and have not revoked it within seven days thereafter, you will receive medical and
dental benefits, for the period outlined in that agreement, at no cost to you.
Q. Will TSA contributions be deducted from severance checks?

A. No deductions for TSA will be taken from your severance payment.
Q. Will employer contributions be made to Plan B for severance distributions?

A. No.
Q. Do benefits, including health coverage, continue during the severance period?

A. Yes. During the severance period, employees continue to be eligible for Kaiser Permanente
group health benefits. In addition, Kaiser Permanente provides comprehensive re-employment,
career, and personal counseling services.
Q. Do we accrue PTO while on severance?

A. No. PTO accrual stops on the date that your employment with KP ends. If you are eligible to
receive severance, it will be paid after your employment ends.
Q. What happens to my severance benefits if I am re-deployed in a comparable KP or IT

position that is subsequently eliminated?
A. If an employee is placed in a comparable position within a Kaiser Permanente entity during the
time between the Notice of Eligibility and the date of termination, and the position he or she
enters is subsequently eliminated, the employee's severance benefits will be determined by the
policies governing that KP entity at the time the employee is notified that his or her position has
been eliminated.
Q. If I am not hired by IBM and receive a severance, can I apply for unemployment?

A. Yes, employees who are not hired by IBM and receive severance can apply for unemployment
benefits. Actual benefits and payments are determined by the local state agencies
Q. If I sign my severance agreement on my Notice of Eligibility Date, when will I be able to

take advantage of my outplacement services?
A. The Severance Agreement and General Release should be signed on your date of termination.
However, select outplacement services offered by DBM may begin as early as your Notice of
Eligibility Date.
Q. If an employee leaves IT due to severance or an offer to work with IBM, and the
employee has withdrawn more money from the Health Care Spending Account than has
been paid in, is there a requirement to repay the money?
A. According to Ceridian, no payback is required.
Q. If an employee leaves IT due to severance or an offer to work with IBM, and he/she has
not yet used all of the money paid into his/her Health Care Spending Account, how long
after the separation can the employee submit expenses?
A. Employees who leave IT have until March 31 of the following year to submit Health Care
Spending Account claims for eligible expenses incurred up to the employee's termination date.
Any money left in the account after March 31 will be forfeited.
Q. I was reading the questions. The answer to this one on the Health Care Spending
account was misleading. It talked about the submission date, but not the health care event
date which is critical. According to my research on this topic the health 'event' that is to be
reimbursed has to take place BEFORE the last date of employment. Is the last day of
employment the day before the start of severance or the last day of severance?
A. The last (termination) date of employment is the day before the start of severance or the
effective date of your resignation if you do choose to leave before the end of your specified
transition period.
Q. If an employee leaves IT due to severance or an offer to work with IBM, and he/she has
not yet used all of the money paid into his/her Health Care Spending Account, how long
after the separation can the employee submit expenses?
A. Employees who leave IT have until March 31 of the following year to submit Health Care
Spending Account claims for eligible expenses incurred up until the employee's termination date.
Any money left in the account after March 31 will be forfeited
Q. What will be the disposition of my Health Care Spending Account since I have already
collected almost the entire year's contributions? This question should be answered from
two perspectives: 1) If I become employed with IBM; 2) If I become eligible for Kaiser
severance. And how would the Health Care Spending Account transfer in the IBM
transition scenarios?
A: The Health Care Spending Account does not transfer. However, you may continue to submit
claims for services received up until your KP termination date to your Health Care Spending
Account until March 31 of the following year.
Q. Can a person continue participation in the Health Care Spending Account during the
severance period?
A. Contributions to the Health Care Spending Account end when employment ends and do not
continue into the severance period. However, you may continue to submit claims for services
received up until your KP termination date to your Health Care Spending Account until March 31
of the following year.
Q: Many of us have loans against our TSA or Plan B. As I recall, these loans become due
and payable in full upon termination of employment with Kaiser. It will be difficult to repay
these at such a short notice. Are there other options available to continue payment of

these loans with IBM if we are hired? What do we do if further employment is not obtained
with IBM or Kaiser?
A: You must repay the entire loan before you can borrow from your account again or if your
employment ends. Your loan is not subject to taxes or penalties unless the loan defaults. If you
do not repay your loan within 30 days of the date that your employment ends, your loan will
default and will be considered taxable income. If you default your loan, you must wait five years
before applying for another one. You should contact Vanguard at 1-800-523-1188 to discuss your
loan repayment.
Q: What if I am re-employed by KP as a contractor or contract-to-hire position? How does

this affect severance, tenure, etc.?
A: If you leave KP and are rehired as a contractor, that cannot occur until six months after your
termination date. If you meet all other eligibility requirements for severance, your severance will
be paid. Contractor service does not count towards your service tenure with KP.
Q. If someone receives an offer from IBM and turns it down, then is subsequently able to
find a job within Kaiser, what is our status in regards to Kaiser PTO and seniority? Do we
still need to follow through with the termination process before starting again with Kaiser
as a "new job?"
A. It depends on whether or not there is a break-in-service between the date that the IBM job
offer is declined. Certain rehired employees may be eligible for reinstatement of benefits at the
time of rehire as defined below:
Paid Time Off (PTO) accrual

(2) years of prior regular service will be eligible to resume accruing PTO as determined by his or
her adjusted hire date and the PTO accrual rates in effect at the time of rehire. This accrual rate
will be based on the length of service from the original date of hire to the date of last termination
excluding any period not employed by a Kaiser Permanente entity. Note: Since all accrued PTO
will have been paid out at time of termination, PTO balances will always begin at zero at the time
of rehire.
Extended Sick Leave (ESL) accrual

(2) years of prior regular service will have his or her ESL balance, as of the date of termination,
reinstated upon rehire. An employee rehired after beginning receipt of retirement benefits from
Kaiser Permanente will begin accruing ESL at the rate in effect at the date of retirement, as long
as he or she returns within two (2) years and has two (2) years of prior regular service. In no
case, however, are ESL hours restored at time of rehire, for returning employees.
Q. What happens to our ESL hours if we leave Kaiser?

A. If you leave Kaiser Permanente for any reason, you will not be paid for any unused hours
remaining in your ESL account. If you have over 250 hours in your ESL account and you retire
under the provisions of Plan A, your ESL account will count toward credited service.

Retirement
Q. I'll be 55 years old on May 15, 2009, and I intend to retire instead of going through the
IBM interview process. I've already informed my management about my intention to retire.
What are my next steps if I plan to take early retirement (at age 55)? What can I expect as
far as pensions and benefits after retirement? Are there limits on my returning to KP
employment after I retire?
A. If you havent done so already, please contact the Kaiser Permanente Retirement Center
(KPRC) at 866-627-2826 Monday through Friday, 6 a.m. to 6 p.m. Pacific Time. KPRC can
provide pension estimates based on your years of service and age at the time of retirement. To
view information on retirement eligibility and post-retirement benefits, please refer to the
Summary Plan Description on the Hub at http://kpnet.kp.org:81/kpit/hr/ben_pay/docs/spd.pdf. To
ensure that you receive accurate information, you should talk with a retirement benefits specialist
about your specific plan.
Q. Where can I find more information about IT's retirement programs?

A. IT's retirement program information can be found in the KP-IT Summary Plan Description
book. Information regarding Plan A can be obtained from KPRC. Information can also be
obtained on the KPRC Web site (myretirement.kp.org).
Q. What rate is used for my retirement calculations?

A. Please contact KPRC.
Q. If I meet eligibility for retirement but was hired on Jan. 1, 1985, or later and I am 55+ and
have 15 years of service, will I be eligible for post-retirement benefits (medical, life
insurance)?
A. If you were hired on Jan. 1, 1985, or later, meet eligibility for retirement, and are at least age
55 with 15 or more years of service on your last day worked, you will be eligible to receive post
retirement benefits (medical) at age 65. You and your spouse or domestic partner must enroll in
Medicare Parts A and B. Any benefits received under your medical plan coverage will be
integrated with Medicare. In addition, if you have elected KP health plan, you will be required to
enroll in the Senior Advantage program and assign your benefits to KP. You will be eligible to
receive life insurance immediately upon retirement. Please refer to your Summary Plan
Description for more information regarding these benefits.
Q. Please explain medical benefit for pre-1985 employees. I have 28 years of service, was
hired in 1981, and will be 53 in April. Am I eligible to receive the post-retirement medical
benefit once I elect retirement at any age, or is there a minimum age requirement to be
eligible for the medical benefit? Please confirm that the medical benefit extends to my
spouse and children.
A. Please contact KPRC to verify the retirement benefits for which you are eligible, since they
may be affected by transfers between KP entities, hours of work, or leaves of absence.
Q. What are the guidelines for employees who are near retirement? What is the "rule of
65"?
A. To receive an estimate or calculation of your Kaiser Permanente retirement benefits, please
contact KPRC at 866-627-2826. Since the IBM relationship was just announced, we are
reviewing IBMs retirement program. As we learn more, we will provide additional information.
Q. I am not eligible for retirement at the time I leave the company, but do have five years of
service. Will I be eligible for post retirement benefits when I would have become eligible
had I continued working?
A. You would be considered a deferred vested pension and eligible for a pension payment from
Plan A, but not for post-retirement benefits.

Q. For those of us who have reached (or are very close) to the 55+15, what are the
pros/cons of taking early retirement from KP before either joining IBM or taking the
severance?
A. The Kaiser Permanente Summary Plan Description can be found on the Hub. It outlines some
of the considerations for Kaiser Permanente retirement planning. You should consult with your
personal financial advisor or accountant for advice on this important decision.
Q. I will be eligible for early retirement in June 2009 however the layoff date and/or start
date with IBM is 5/16/09, or 2 weeks before I would be eligible. Will I be bridged so that I
will be eligible for early retirement?
A. If you receive an offer to start work with IBM on 5/16/09, please talk with your manager and HR
Consultant and your IBM contact to request a change in your KP termination date. Approval to
change your termination date is contingent upon business needs. We anticipate that many of the
employees who are impacted by the IBM transition may be required to extend their transition
period beyond 60 days to ensure smooth and efficient management and operations of our data
centers and ultimately patient care services. IT management and HR will partner to ensure that
you are notified in advance of your actual job end date.
Q. Is any particular attention being paid to people who are close to retirement age but
came to Kaiser late in their career, and therefore are not quite vested in Plan A?
A. If employees have enough severance pay to bridge to retirement, they may request that their
severance be applied to bridge to retirement eligibility.
Q. Are we 100% vested in "Plan B" amounts?

A. You automatically become a Plan B participant on your second anniversary of employment.
Once you become eligible, your employer contributes an amount equal to 5% of your salary each
pay period to your account. You are immediately fully vested in your Plan B account, including
employer contributions.
Q. I understand that having completed 10 years of service with KPIT, I am still eligible for
Plan A benefits once I reach age 65. If this is correct, where can I find details on my Plan A
benefits? How do I keep updated on them and collect them if I am let go or transferred to
IBM?
A. That is correct. You can find details on Plan A benefits under the SPD (Summary Plan
Description) on the Hub at http://kpnet.kp.org:81/kpit/hr/ben_pay/docs/spd.pdf. You may receive
updated information on Plan A benefits from the KPRC (KP Retirement Center) at 1-866-627-
2826, available Monday through Friday, 6 a.m. to 6 p.m.
Q. I am qualified for retirement. Even if I am hired by IBM, can I still file for retirement from
Kaiser?
A. If eligible, you can file for your retirement from Kaiser.
Q. Can I start my retirement (such as medical benefits) now, and then start my plan A
distribution at a later date?
A. Yes. If you are eligible for post-retirement medical, you may begin that first and commence
th
pension benefits at a later time of your choosing. (Note: Pension benefits must begin by your 65
birthday if you are not working for Kaiser at that time).

KP Benefits
Q. Will I be paid for my PTO? I have not taken much vacation time. Or will it carry over to
IBM if they make me an offer?
A. If you receive an offer from IBM and accept the IBM position, your accrued PTO balance as of
May 15, 2009, will be paid out in your final paycheck.
Q. If I am offered and accept a job with IBM, will my PTO accrual change?
A. The KP years of service credit will transfer over to IBM, but your PTO accrual rate will be
based on IBMs vacation accrual schedule.
Q. If I have float holidays left, am I eligible for payout? If I happen to get a position with
IBM, will the float holidays be transferable to IBM?
A. You will be paid out for any unused float holidays on your final KP paycheck. Float holidays are
not transferable to IBM. IBM has 12 holidays with six designated and six optional. The optional
holidays may be used for personal reasons with IBM manager approval. The IBM holidays cannot
be carried over year to year.
Q. Does my AIP eligibility end if my date of termination occurs during the latter part of the
year?
A. As long as you meet the AIP eligibility criteria at the time of your date of termination, and your
current ratings up to that point have been 3.0 or higher, you will be eligible to be considered for
an award at the time of the AIP payout process in early part of the following year. It is based on
the number of months that you participated. Please refer to the AIP Plan summary.
Q. How can I obtain more information about conversion of my life insurance?

A. MetLife is the provider for life insurance for IT employees. You can request a life insurance
conversion notice from HR Connection. MetLife can be contacted at 877-275-6387 or via e-mail
at solutions@metlife.com.
Q, How will my benefits be administered during the time I receive severance (severance
eligibility period), if I sign my severance agreement and do not find another position within
KP prior to my date of termination?
A. Following your date of termination and during your Severance Period, you will continue to be
eligible for coverage under KPs group health benefits, at the contribution rates then in effect for
active KP employees. Your eligibility for continuing group health benefits will end if you
subsequently begin working for another organization and become eligible for group health
benefits under that organizations group benefits plan. Following the end of your continuing
coverage, you and your eligible dependents will generally be eligible to elect to further continue
your group health benefits under COBRA at your own expense. Additional information regarding
your COBRA rights and related election procedures will be provided to you separately.
Q. How can I receive information about health plans other than COBRA?
A. You can call Member Services to inquire about different KP coverage options.
The Member Services number is printed on your medical card.
Q. How can I determine what my COBRA costs will be?

A. Please contact HR Connection at 866-474-5748.
Q. Can an employee change medical and/or dental elections during open enrollment
period?
A. Yes. Information will be sent separately for open enrollment.
Q. Can an employee change a health plan election after the date of termination?

A. No, unless you are moving outside of an area where KP provides medical services. In the
event of a move that takes you outside of a KP-covered area, please notify HR Connection at
866-474-5748 within 31 days of the move date.
Q. When will my medical and dental benefits end?

A. On the last day of the calendar month in which your severance period ends.
Q. Am I eligible for tuition reimbursement after my date of termination?

A. Tuition reimbursement is a benefit offered to employees. As your employment with IT will
terminate on your date of termination, you will be ineligible to participate in this benefit after that
date. However, if you are already enrolled in a course approved by your manager that will end
prior to your date of termination, you are eligible to apply for reimbursement for that course
provided you do so prior to your date of termination.
Q. Am I eligible for reimbursement from my Health Care Spending Account and/or

Commuter Spending Account after my date of termination?
A. You are eligible for reimbursement of health care expenses incurred prior to your date of
termination. Claims must be submitted for reimbursement by March 31 of the following year.
However, you may elect to continue participation in the Health Care Spending Account through
COBRA. If you elect to continue coverage, you will make contributions on an after-tax basis and
may continue to claim expenses from this account.
Dependent Care Spending account cannot be continued through COBRA. Any claims incurred
prior to your date of termination must be submitted by March 31 of the following year. Commuter
Spending Account expenses incurred up until the date of termination must be submitted within 30
days of your termination.
Q. For the people with 10, 20, or 30-plus years with KP who will transition to IBM, will their
seniority carry over or will they be treated as new IBM employees?
A. IBM has stated that they will credit all KP hires with equivalent service time. This service time
will be used for benefits purposes where it affects eligibility for benefits such as vacation,
disability plan, 401(k) vesting, etc.
Q. Will our COBRA rates reflect the recent COBRA legislation changes?
A. Employees need to contact Ceridian directly at 1-800-877-7994 to confirm if they qualify for the
adjusted COBRA rates due to ARRA (American Recovery and Reinvestment Act).

About IBM
Q. Will there be more layoffs once employees get to IBM?
A. IBM is always optimizing its workforce. As all organizations must do in these challenging
economic times, IBM continues to assess its overall workforce and manage for efficiency and
effectiveness. Additional reductions in force could result at a later time.
Q. Will the IBM layoffs position KP employees better or worse for long-term positions with
the company?
A. The relationship between IBM and Kaiser Permanente with regard to data center operations is
meant to combine world-class capabilities in data center management with world-class
capabilities in health IT. Kaiser Permanente employees who will eventually transition to IBM as
part of this relationship are critical to the overall success of this transition and the ongoing work to
enhance the technology that powers the services Kaiser Permanente provides to its members,
patients, and caregivers. As such, IBM is incented to retain those employees as part of a long-
term strategy to drive successful data center operations in its largest health care contract to date.
It's the combination of expertiseboth from IBM and KPthat makes this a compelling
relationship.
As with all companies, IBM will also manage its workforce, including the new employees
transferred from KP, to performance standards and in accordance with changing business factors
over time.
However, KP employees should note that there would be a significant cost to IBM to lay off
employees after hiring them as part of this transition. That cost significantly reduces the value of
this contract for IBM, reducing or even eliminating the profitability of this relationship. IBM does
not view eliminating employees as a good business decision, and also values its reputation and is
focused on ensuring that they not build a reputation as a "hire to fire" company.
At the same time, IBMlike all companies in this economymust continually manage its
workforce to optimize resources around the world and drive greater operational efficiencies.
Q. IBM is clearly off shoring more and more. How does that bode for KP employees who
will transition to IBM?
A. In addition to the above, there are specific functions that have been called out contractually,
which the two companies have agreed will not be transitioned to offshore resources.
Q. Are there any immediate ramifications for the KP affected employees related to today's
layoff announcement from IBM?
A. No. The transition activities will continue as previously described. We do not expect today's
news about layoffs at IBM to impact the relationship and transition plans with Kaiser Permanente.
IBM is incented to retain those employees as part of a long-term strategy to drive successful data
center operations in its largest health care contract to date. It's the combination of expertise --
both from IBM and KPthat makes this a compelling relationship.
Q. The CNBC story notes that these layoffs are in the services divisions. Isn't that the
division we're working with? How close to our current project are these jobs?
A. While the layoffs written about in the press are in the services division, the positions affected
by these layoffs are not associated with the Kaiser Permanente/IBM relationship.

Frequently Asked Questions (Faqs) Ibm Strategic Relationship April 2009

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Frequently Asked Questions (Faqs) Ibm Strategic Relationship April 2009

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Frequently Asked Questions (FAQs)

IBM Strategic Relationship

The IBM Strategic Relationship

FAQ IBM Strategic Relationship, April 2009 page 1

The functions to be transitioned to IBM are:

Kaiser Permanente will retain:

Service Management Processes

FAQ IBM Strategic Relationship, April 2009 page 2

Q. Are assets included in this strategic relationship?

Q. Are employees moving out of Kaiser Permanente facilities?

Q. Who owns the Configuration Management Database (CMDB)?

FAQ IBM Strategic Relationship, April 2009 page 3

Q. How many staff members are affected?

FAQ IBM Strategic Relationship, April 2009 page 4

Q. Is transitioning this work to IBM a cost-cutting measure?

Q. How much is Kaiser Permanente paying IBM?

FAQ IBM Strategic Relationship, April 2009 page 5

Q. Why was IBM chosen to run KPs data centers?

FAQ IBM Strategic Relationship, April 2009 page 6

Q. What were the drivers behind this strategic relationship?

Q. Did a specific event prompt this decision?

Q. What specifically is Kaiser Permanente doing to cut costs?

FAQ IBM Strategic Relationship, April 2009 page 7

Q. Cant Kaiser Permanente build these capabilities in-house?

FAQ IBM Strategic Relationship, April 2009 page 8

Q. Where will Kaiser Permanente member information be stored?

Q. Will IBM have access to patient information?

Q. How will HIPAA information be treated under this plan?

Q. Who is leading the transition effort for Kaiser Permanente?

Q. How will IBMs performance during transition be measured?

Q. Will the transition affect employees in other areas of the IT organization?

Q. How long will it take to transition data center management to IBM?

FAQ IBM Strategic Relationship, April 2009 page 9

A. Will the e-mail addresses of transferring employees change to IBM.com immediately?

FAQ IBM Strategic Relationship, April 2009 page 10

IBM staffing process

Q. Is there a minimum transition period that I am entitled to receive?

Q. How many employees do you expect IBM to hire?

Q. Why arent all affected employees automatically transitioning to IBM?

Q. What are IBMs selection criteria for jobs?

FAQ IBM Strategic Relationship, April 2009 page 11

Q. How long will the career discussion process take?

Q. Will the IBM manager who interviews me be my future manager?

FAQ IBM Strategic Relationship, April 2009 page 12

FAQ IBM Strategic Relationship, April 2009 page 13

Q. Will I be able to automatically assume a comparable position, or do I have to apply and

Q. How can I determine the current vacancies in IT or KP?

FAQ IBM Strategic Relationship, April 2009 page 14

Q. What is a comparable position?

Q. I telecommute and am not based anywhere within 50 miles of a KP facility. What is a

Q. Am I eligible for relocation benefits if I accept a comparable position with KP in another

Paid Time Off (PTO) accrual

Extended Sick Leave (ESL) accrual

FAQ IBM Strategic Relationship, April 2009 page 15

Q. How do I coordinate reimbursement for my final expense reports?

Q. Will I be eligible for unemployment compensation?

Q. Will outplacement services be available?

Q. What is included in the outplacement services?

Services provided include:

FAQ IBM Strategic Relationship, April 2009 page 16

FAQ IBM Strategic Relationship, April 2009 page 17

Q. Why are those impacted still here?

Q. Why would affected employees continue to work for Kaiser Permanente?