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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14D-1
(AMENDMENT NO. 6)
TENDER OFFER STATEMENT
PURSUANT TO SECTION 14(D)(1) OF THE SECURITIES EXCHANGE ACT OF 1934
ALLIED LIFE FINANCIAL CORPORATION
(NAME OF SUBJECT COMPANY)
NATIONWIDE LIFE ACQUISITION CORPORATION
NATIONWIDE MUTUAL INSURANCE COMPANY
(Bidders)
COMMON STOCK, NO PAR VALUE
(Title of Class of Securities)
019246107
(CUSIP Number of Class of Securities)
W. SIDNEY DRUEN
SENIOR VICE PRESIDENT AND GENERAL COUNSEL
NATIONWIDE MUTUAL INSURANCE COMPANY
ONE NATIONWIDE PLAZA
COLUMBUS, OHIO 43215
TELEPHONE: (614) 249-7111
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications on Behalf of Bidders)
WITH A COPY TO:
ERIC M. FOGEL, ESQ.
HAROLD W. NATIONS, ESQ.
HOLLEB & COFF
55 E. MONROE STREET, SUITE 4100
CHICAGO, ILLINOIS 60603
TELEPHONE: (312) 807-4600
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This Amendment No. 6 amends and supplements the Tender Offer Statement
on Schedule 14D-1 initially filed on June 10, 1998 (as amended, the "Schedule
14D-1") with the Securities and Exchange Commission by Nationwide Life
Acquisition Corporation ("Purchaser"), an Ohio corporation and a wholly owned
subsidiary of Nationwide Mutual Insurance Company ("Parent"), an Ohio mutual
insurance company, to purchase all outstanding shares of common stock, no par
value (the "Common Shares"), of Allied Life Financial Corporation, an Iowa
corporation, at a price of $30.00 per Common Share, net to the seller in cash,
without interest thereon, upon the terms and subject to the conditions set forth
in the Offer to Purchase dated June 10, 1998 (the "Offer to Purchase") and the
Letter of Transmittal (which, together with any amendments or supplements
thereto, constitutes the "Offer"). Capitalized terms used and not defined herein
shall have the meanings assigned such terms in the Offer to Purchase or the
Schedule 14D-1.
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ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
(a) (18) Seventh set of "Nationwide answers your questions."
(a) (19) Eighth set of "Nationwide answers your questions."
(a) (20) Special Edition for Part-time Employees Nationwide
Benefit Questions.
(a) (21) Ninth set of "Nationwide answers your questions."
(a) (22) Tenth set of "Nationwide answers your questions."
(a) (23) Eleventh set of "Nationwide answers your questions."
(a) (24) Twelfth set of "Nationwide answers your questions."
(a) (25) Text of Mailgram sent by Nationwide Mutual Insurance
Company on or about September 25, 1998.
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SIGNATURE
After due inquiry and to the best of its knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: September 28, 1998
NATIONWIDE MUTUAL INSURANCE COMPANY
By: /s/ David A. Diamond
-------------------------------
Name: David A. Diamond
Title: Vice President - Enterprise Controller
NATIONWIDE LIFE ACQUISITION CORPORATION
By: /s/ Mark B. Koogler
-------------------------------
Name: Mark B. Koogler
Title: Vice President - Associate General Counsel
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EXHIBIT INDEX
(a)(18) Seventh set of "Nationwide answers your questions."
(a)(19) Eighth set of "Nationwide answers your questions."
(a)(20) Special Edition for Part-time Employees Nationwide Benefit
Questions.
(a)(21) Ninth set of "Nationwide answers your questions."
(a)(22) Tenth set of "Nationwide answers your questions."
(a)(23) Eleventh set of "Nationwide answers your questions."
(a)(24) Twelfth set of "Nationwide answers your questions."
(a)(25) Text of Mailgram sent by Nationwide Mutual Insurance Company
on or about September 25, 1998.
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EXHIBIT (a)(18)
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NATIONWIDE ANSWERS YOUR QUESTIONS
NATIONWIDE HOTLINE: 1-877-655-6417
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AUGUST 12, 1998
Q#1: I'M PREGNANT, DUE FEBRUARY 1999. WILL ALLIED SICK TIME AND VACATION
TIME ROLL OVER? HOW WILL I BE PAID?
If a decision is made to enroll ALLIED employees in the
Nationwide Insurance Enterprise benefits plans, those plans do not
include any carryover of sick leave from one benefit period to the
next. Under the Nationwide plans, employees can carry over 10 days of
unused vacation from year to year.
The maternity leave policy typically followed by the companies
for uncomplicated pregnancy/maternity situations is that maternity
leave may begin two weeks prior to the estimated date of delivery and
continue for up to six weeks after a normal delivery or up to eight
weeks after a caesarian delivery. Typically, we treat employees as
disabled during this period of time. Benefits can begin earlier than
this time if pregnancy prevents an employee from working and can
continue beyond these typical periods of absence should there be a
continuing post-partum need. The amount of benefit during this leave is
determined by the sick leave schedule presented in the July 22 Update.
Q#2: IF I ROLL OVER STOCK TO NATIONWIDE'S 401(k) AND WANTED TO BORROW FROM
THAT, WHAT PERCENTAGE CAN I BORROW? IF I TERMINATED OR QUIT WHAT WOULD
HAPPEN IN THE CASE OF PAYING BACK THE LOAN AMOUNT?
You cannot roll over stock to the Nationwide Insurance Enterprise
Savings Plan (NIESP) since the NIESP does not have common stock as an
investment option. If you roll assets to the NIESP, such as a cash
distribution from the ALLIED Employees Stock Ownership Plan (ESOP), the
funds would generally become available for loan purposes. All rollover
funds are 100% vested.
The maximum NIESP loan amount is the lesser of:
* $50,000 Less the highest outstanding loan balance during the
previous 12 months, or
* 50% of the vested account balance.
Multiple loans are available. The combination of loan repayments
cannot exceed 33% of pay. The loan must be completely paid when
employment ends unless you terminate employment after reaching age 55
with 5 years of vesting service, if so, you can continue loan payments
on a quarterly basis by personal check.
Q#3: IF WE TRANSFER MONEY INTO THE NATIONWIDE 401(k) HOW SOON CAN WE BORROW
FROM THAT?
If you elect a rollover of ESOP funds into the NIESP, those funds
are generally available to meet the loan requirements. See Q&A #2.
You should be able to immediately generate a general loan using
the Savings Line (a voice response unit) during the same phone call in
which you confirm that the rollover/transfer has been competed. In
other words, once you confirm the money is there, you can elect a loan.
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Q#4: I AM A PART-TIME EMPLOYEE WORKING 1,000 HOURS OR MORE ANNUALLY. AM I
ELIGIBLE FOR THE 401(k) AND MEDICAL BENEFITS?
Yes. Salaried employees who are regularly scheduled to work at
least 38.75 hours per bi-weekly pay period (approximately, 1,007 hours
per year) are eligible to participate in all benefits plans. If you
continue as a part-time employee you will be eligible for the
Nationwide 401(k) program. Sick leave, vacation, personal days and
family illness day benefits reflect the regularly scheduled hours of
work of a part-time employee--they are pro-rated based upon the number
of hours the employee is regularly scheduled to work as of the award
date. Under these plans, for part-time employees, one day equals 1/10
of their regularly scheduled bi-weekly hours.
Q#5: IF YOU PUT YOUR ROLLOVER MONEY INTO A 401(k) PROGRAM CAN YOU THEN TAKE
THE MONEY OUT AND PUT IT INTO AN IRA? CAN YOU MOVE YOUR MONEY?
The Nationwide Insurance Enterprise Savings Plan (NIESP) is
designed to help you save for your future. If you roll or transfer
funds to the NIESP during your employment, you will generally have
access one of two ways:
* You can elect a loan from the plan, or
* You can elect a withdrawal of rollover funds and earnings on
those funds.
If you do make a withdrawal, you can still continue your employee
contributions to the plan and receive additional matching
contributions. Withdrawals may be subject to taxation and your tax
advisor should be consulted. A withdrawal can be rolled into an IRA.
We expect the NIESP to be amended to permit the withdrawal at any
time of rollover contributions. Currently an employee must have
completed five years of service to make such a withdrawal. We
anticipate that ALLIED service will count toward that requirement.
Q#6: WHAT HAPPENS IF YOU ROLL 100% TO THE NATIONWIDE 401(k) PLAN--THEN IN
THE SAME YEAR TAKE SOME CASH? CAN THIS COME OUT OF THE 401(k) OR WOULD
YOU NEED TO FIRST MOVE PART OF IT TO AN IRA--THEN MAKE A TAXABLE
WITHDRAWAL?
You can withdraw all or part of your account under certain
circumstances. Please refer to the answer to Q#5 for details.
Q#7: IF I UNDERSTAND CORRECTLY, YOU CAN WITHDRAW NATIONWIDE'S MATCHING
CONTRIBUTIONS AT ANY TIME. LET'S SAY YOU'RE CONTRIBUTING 6%, DOES
NATIONWIDE'S MATCH GO IN EACH PAY PERIOD OR AT THE END OF THE YEAR?
Here's an example of how the company match will work, payday by
payday:
Our example employee earns $26,000 per year ($1,000 per biweekly
payday) and wants to defer 6% of pay ($60 per payday). The company
match would be $30 per payday, 50% of $60.
The NIESP actually calculates the company match using
year-to-date contributions and earnings. The result is that you have
the option to vary your contribution percentage each payday, and still
receive the maximum company matching contribution within a calendar
year.
The company matching contributions can only be withdrawn after an
employee completes five years of service. Any withdrawal of company
matching contributions will be subject to income taxation and in may
cases, a 10% penalty tax if taken prior to the time the employee
reaches age 59 1/2.
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Q#8: COULD I ROLL 1/4 OF MY ESOP DISTRIBUTION INTO THE NATIONWIDE 401(k) AND
THE REST INTO AN IRA? IS THERE A MINIMUM DOLLAR FIGURE OR PERCENTAGE OF
MONEY WHICH MUST BE TAKEN FOR A CASH DISTRIBUTION? THIS IS A LARGE SUM
OF MONEY. WILL I BE ABLE TO DESIGNATE MULTIPLE PLACES TO ROLL THE
MONEY? WHAT ARE THE PARTIAL DISTRIBUTION OPTIONS OR PENALTIES?
We expect that you will have control of how your ESOP
distribution will be made. Our understanding is that you will have the
option of rolling funds to an IRA and then, sequentially, rolling funds
to the NIESP. Another option would be to roll funds to the NIESP, and
then, sequentially, roll funds to an IRA. Regardless, we expect you
will have the option to elect to roll over any portion of your ESOP
distribution to the NIESP.
You should direct all questions concerning the distribution of
the ESOP monies by SYSM to ESOP which is answered by ALLIED Employee
Stock Ownership Plan representatives--including questions on
distribution methods and any tax penalties.
Q#9: IT LOOKS LIKE ALL THE FUNDS OFFERED BY NATIONWIDE ARE SOLD THROUGH
VARIABLE ANNUITIES. IF SO, WHAT IS THE SURRENDER CHARGE ON EACH?
While the funds offered in the NIESP are wrapped in a variable
annuity contract, there is no surrender charge on any fund. All of the
funds offered in that plan, other than the Guaranteed Fund, provide a
return based on the investment performance of a particular mutual fund
or variable annuity funds. The Guaranteed Fund provides a fixed rate of
return. The Guaranteed Fund is not a variable annuity.
Q#10: THE NATIONWIDE 401(k) INVESTMENT CHOICES ARE "GROUP SEPARATE ACCOUNT
ANNUITIES" AS OPPOSED TO THE T. ROWE PRICE MUTUAL FUNDS WE HAVE AS
INVESTMENT CHOICES NOW. I NEED TO KNOW MORE ABOUT THE GROUP SEPARATE
ACCOUNT ANNUITIES AND HOW THEY COMPARE TO A MUTUAL FUND. WOULD OUR
MONEY GO INTO THE ACTUAL MUTUAL FUNDS NAMED OR INTO SEPARATE FUNDS THAT
ATTEMPT TO TRACK THE BEHAVIOR OF THE MUTUAL FUNDS CHOSEN?
Nationwide's philosophy is that 401(k) plans should include a
variety of investment options from multiple fund houses, rather than
being limited to the funds available from a single fund house. That's
because different fund houses have different strengths. NIESP includes
a total of 15 different investment options managed by a variety of fund
houses, including American Century, Dreyfus, Fidelity, Neuberger &
Berman, Warburg Pincus as well as Nationwide and others. You can learn
about each of these options, including historical returns and charges,
by reading the investment profiles that were included in the packet
handed out at the employee meetings.
The "group separate account annuity" (which is synonymous with
variable annuity) makes this possible. It provides a convenient
"wrapper" around the various funds, allowing money to move freely among
them. Your NIESP money will be invested in the funds themselves, and
returns passed on to your account.
Q#11: WILL THE SHARE PRICE OF THE NEUBERGER & BERMAN PARTNERS TRUST AS
REPORTED IN THE WALL STREET JOURNAL BE THE SAME AS THE NATIONWIDE FUND
OF THE SAME NAME?
The Neuberger & Berman Partners Trust fund is the same as the one
listed in the Wall Street Journal. The tickler symbol is NBPTX.
The share price, for purposes of the NIESP, of this and other
funds cannot be found in financial publications. Unit values are
developed internally and vary from the public prices due to a
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difference between the expense under the contract and the expense paid
by the public. Typically, the expenses paid by the NIESP are less than
those assessed to public participants. You can identify the expenses
paid by NIESP participants by reviewing the information in the fund
profiles.
Performance of the public funds reported in financial
publications will be consistent with the performance of the funds
invested in the NIESP. Published fund performance information will be
very close to the performance of the fund option in the plan. If you
need specific information, you can track the daily performance of your
investments by reviewing your quarterly savings plan statement or by
calling the Savings Plan Hotline.
Q#12: ARE THERE ANY EXPENSES, CHARGE, LOADS, ETC., TAKEN OUT OF THE
NATIONWIDE 401(k) INVESTMENT CHOICES IN ADDITION TO THOSE IN THE
EXPENSE BREAKDOWN BOX ON THE BACK OF EACH INDIVIDUAL FUND PROFILE? IF
SO WHAT ARE THEY AND WHAT ARE THEY PROVIDING?
There are no expenses taken out of the Nationwide 401(k)
investment choices that are in addition to those in the expense
breakdown box on the back of the individual funds profiles.
Q#13: IF AN ALLIED EMPLOYEE TRANSFERS ESOP PROCEEDS TO THE NATIONWIDE 401(k)
AND LATER TERMINATES EMPLOYMENT AND LEAVES THEIR ACCOUNT AT NATIONWIDE,
ARE CHARGES THE SAME AS FOR SOMEONE WHO REMAINS AN EMPLOYEE?
All participants are treated the same whether active or
terminated.
Q#14: WHY IS THERE A DIFFERENCE BETWEEN THE SUMMARY PAGE OF ANNUALIZED RATE
OF RETURN AND ACTUAL FUND PAGES NATIONWIDE GAVE US? FOR EXAMPLE, IVESCO
INDUSTRIAL INCOME FUND ON 6/30/98 FOR 10 YEARS IS 16.6% AND THE ACTUAL
FUND PAGE SAYS 17.2%. WHY THE DIFFERENCE?
The summary page is calculated by taking the rate of return for
the first six months of 1998. The ten year average is from July 1, 1988
to June 30, 1998. The Investment Profile fund pages had not been
updated for performance after the first calendar quarter 1998 and
reflects 10 year performance for the period April 1, 1988 to March 31,
1998.
Q#15: THE NIESP LOAN INFORMATION STATES THAT THERE IS A TYPE OF LOAN CALLED
"PRINCIPAL RESIDENCE." THIS LOAN CAN BE USED TO HELP YOU ACQUIRE A
HOME. IT ALSO STATES THAT THERE MUST BE A FIRST MORTGAGE ALREADY IN
PLACE. THIS SEEMS CONTRADICTORY. ARE THERE ANY OTHER ACTIVITIES THAT
WOULD QUALIFY FOR PRINCIPAL RESIDENCE LOAN? FOR EXAMPLE, COLLEGE,
REMODELING, REFINANCING?
No. A principal residence loan can only be obtained for the
purpose of acquiring a principal residence.
Principal residence loan monies can be used to replace funds that
might otherwise have been used to buy the home. Those other funds can
then be used for any purpose, including the ones you identified in your
question--car, college, refinancing the down payment, refinancing the
first mortgage, remodeling, financing the purchase of a vacation home,
vacation, pocket money, etc.
For example, an individual purchasing a $100,000 home who has
$20,000 for a down payment, could execute a first mortgage of $80,000,
then, coincident with closing, obtain execute a principal residence
loan for $20,000. The maximum residence loan is equal to the purchase
price of the home plus the cost of improvements less any other
outstanding debt. The individual could then use the money that would
have been used to make the down payment as he or she sees fit.
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EXHIBIT (a)(19)
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NATIONWIDE ANSWERS YOUR QUESTIONS
NATIONWIDE HOTLINE: 1-877-655-6417
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AUGUST 19, 1998
Q#1: CAN YOU TAKE SICK LEAVE FOR THE ILLNESS OF A CHILD?
All Enterprise employees receive an award of 3 family illness
days each January 1. Family illness days may be used to care for an
immediate family member who is injured or ill. Additionally, The Family
and Medical Leave Act of 1993 (FMLA) enables most employees to use up
to 12 weeks of paid or unpaid job protected leave in a continuous 12
month period to care for an immediate family member who is injured or
ill.
Q#2: WHAT IS NATIONWIDE'S CURRENT EMPLOYEE CONTRIBUTION ON ITS MEDICAL PLAN
PER MONTH? DOES NATIONWIDE HAVE A PROGRAM FOR PURCHASING BACK UNUSED
VACATION FROM EMPLOYEES?
Employee contributions for medical coverage depend on the option
elected and who is to be covered under the plan. The companies offer
more than 100 medical options across the country. For example, full
family (employee, spouse and dependent children) coverage under the
Principal HMO in Des Moines, Iowa has a biweekly employee contribution
of $48.00 in 1998. Contributions typically change each year.
Nationwide does not currently have a program for employees to
purchase or sell vacation. At Nationwide the maximum vacation carryover
is 10 days. Employees are paid for any unused vacation, other than
amounts carried over from the prior year, if they leave the companies.
Vacation carryover cannot be exchanged for pay under any circumstances.
A different policy applies in California.
Q#3: WHAT IS NATIONWIDE'S LONG-TERM DISABILITY PROGRAM? WHAT IS GOING TO
HAPPEN TO OUR LONG-TERM DISABILITY?
Nationwide's long-term disability benefit replaces 60% of covered
compensation. Covered compensation includes most items of compensation,
including overtime, bonus payments, etc. The benefit is paid on a
biweekly basis.
We expect to continue the current ALLIED paid time off and
disability benefits through 12/31/98. No decisions have been made with
respect to Long-term Disability benefits after that date. You will be
advised well in advance of the point when you will have to make
elections concerning your benefits so that you can make informed
benefits decisions.
Q#4: THE PREVIOUS ALLIED UPDATES HAVE SAID THAT ALLIED BENEFITS WILL RUN
THROUGH 12/31/98. NATIONWIDE'S JULY 22, 1998, HOTLINE Q#1 SAID THAT
NATIONWIDE AWARDS SICK LEAVE BENEFITS ON JULY 1 OF EACH YEAR. DOES THIS
MEAN THERE ARE NO BENEFITS BETWEEN JANUARY AND JULY OF 1998? IF THERE
ARE AWARDS HOW WILL SUCH AWARDS BE MADE GIVEN THAT NATIONWIDE USUALLY
MAKES ITS AWARDS IN JULY, WILL IT BE FOR 1/2 THE YEAR IF MADE IN
JANUARY?
As you indicate, we expect to continue your ALLIED benefits
through December 31, 1998. No decisions have been made with respect to
benefits beyond December 31, 1998, however, we do not expect to take
any action that would result in a gap in coverage.
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Q#5: REGARDING CPCU TESTS, I READ THAT NATIONWIDE PAYS ITS EMPLOYEES $100
FOR PASSING EACH EXAM. WILL THIS NOW BEGIN TO OCCUR WITH ALLIED
EMPLOYEES? WHEN WILL THIS BEGIN?
If the Nationwide Insurance Enterprise Educational Assistance
Plan is adopted on behalf of ALLIED employees, the plan will typically
provide benefits for courses that commence after the plan is adopted.
Q#6: I HAVE BEEN AN ALLIED EMPLOYEE SINCE 1975. WHEN THE CHANGE IN CONTROL
OCCURS, HOW WILL MY ELIGIBILITY FOR BENEFITS, RETIREMENT, ETC. BE
AFFECTED? WILL I RETAIN THE ORIGINAL SERVICE DATE OR BE CONSIDERED A
NEW EMPLOYEE OF NATIONWIDE?
While no formal decisions nor recommendations have been made, it
is our present intention to adopt Nationwide Insurance Enterprise
benefit plans on behalf of ALLIED employees who remain with the
companies through the effective date of adoption. We expect ALLIED
service will generally qualify individuals to participate in those
plans.
Q#7: QUESTION NUMBER 9 IN THE JULY 22 ESOP UPDATE ADVISED THAT NATIONWIDE'S
LIFE BENEFIT OFFERING IS NOT AS GOOD AS ALLIED'S CURRENT PLAN WHERE YOU
CAN PURCHASE UP TO FIVE TIMES OF SALARY WITH THE FIRST TWO TIMES BEING
SUBSIDIZED. THIS IS AN EXCELLENT BENEFIT THAT I WILL NOT WANT TO LOSE.
HAS THERE BEEN ANY DISCUSSION ON CONTINUING WITH THIS BENEFIT RATHER
THAN REDUCING THIS BENEFIT THAT WE NOW HAVE?
Under both benefits programs, life insurance coverage is a
multiple of pay. However, the definition of "pay" differs under the two
programs, and so do the employee contribution rates. The Nationwide
benefits program also provides a death benefit under the Nationwide
Insurance Enterprise Retirement Plan.
No decisions have been made concerning benefits and transitional
issues. The evaluation of benefits will look at each benefit plan,
each coverage option, and all benefits/coverage taken as a whole.
Q#8: I WAS WITH ALLIED FROM 1988 THROUGH 1996 AND WAS RETIRED ON 9/30/97 SO
I HAVE OVER FIVE YEARS OF SERVICE AT ALLIED. WILL MY TIME WITH ALLIED
COUNT TOWARD NATIONWIDE'S FIVE-YEAR VESTING PERIOD?
Please refer to Q#6.
Q#9: AT THIS POINT, HAS ANY DECISION BEEN MADE AS TO THE DISCOUNT THAT WE
RECEIVE AT LAPETITE DAYCARE? I WILL BE SWITCHING TO LAPETITE IN JANUARY
AND WOULD LIKE TO MAKE SURE MY RATES WILL NOT INCREASE.
Specific decisions have not been made with respect to LaPetite
Daycare.
Q#10: IF A PERSON DECIDES TO RETIRE AFTER THE CHANGE IN CONTROL AND
DISBURSEMENT OF ALL FUNDS, WOULD THEY BE CONSIDERED ALLIED OR
NATIONWIDE EMPLOYEES AND IF A NATIONWIDE EMPLOYEE WOULD THEY THEN BE
ELIGIBLE FOR THE NATIONWIDE RETIREMENT BENEFITS?
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ARE ANY OF THE NATIONWIDE RETIREMENT BENEFITS PREDICATED ON TIME OF
SERVICE AND IF SO WILL THE ALLIED TIME BE COUNTED TOWARD THOSE
BENEFITS? PLEASE HIGHLIGHT SOME OF THE NATIONWIDE RETIREMENT BENEFITS
FOCUSING ON MEDICAL AND DENTAL.
If the Nationwide Insurance Enterprise benefits plans are adopted
on behalf of ALLIED employees, ALLIED employees will be notified
concerning what coverages and benefit payments will be provided with
respect to those plans. Most Enterprise benefits plans that apply to
retirement accrue benefits based on service. Those plans include the
pension plan, savings plan and retiree medical benefits.
The Nationwide medical benefit options include access to the same
HMO options offered active employees as well as a choice of two
indemnity options. Retiree contributions are a function of past
service. The medical benefit options offered to Medicare eligible
retirees include Medicare HMO options. The current Enterprise benefits
program does not provide dental coverage to retirees.
For example, a Nationwide employee retires in 1998 who is age 55
with a spouse of the same age and has completed 25 years of service.
The employee elects the Principal HMO coverage in Des Moines, Iowa.
The monthly contribution rate will be $86.00 in 1998.
Q#11: I AM AWARE THAT IN SOME MERGERS THE PARENT COMPANY WILL PUT TOGETHER A
BUY OUT PLAN FOR THOSE PEOPLE OF RETIREMENT AGE. ARE THERE ANY SUCH
PLANS AT PRESENT?
We are not aware of any effort to develop an early retirement
incentive program. Our understanding is that the companies anticipate
employment levels will continue to increase.
Q#12: THE MAY ISSUE OF THE NATIONWIDE ENTERPRISER IS AVAILABLE ON THE
INTERNET BY ACCESSING "EMPLOYEE INFO" OFF OF THE GEORGESON.COM INTERNET
SITE. AT WHAT POINT WILL JUNE AND FUTURE COPIES OF THIS BE MADE
AVAILABLE TO ALLIED EMPLOYEES?
The current issue of the Enterpriser will be available to ALLIED
employees on the Internet in the very near future.
Q#13: HOW MANY HOURS IS YOUR STANDARD WORK WEEK? DO YOU OFFER VARIED WORK
SCHEDULES LIKE FOUR DAY WORK WEEKS? WHAT POSITIONS CAN TELECOMMUTE FROM
HOME?
Nationwide's workweek varies by location. Typically, most
Enterprise employees work either a 38.75 hour or a 40 hour workweek.
The company provides alternate work environment (AWE) schedules
(part-time, job sharing, compressed work week, and telecommuting
opportunities.) The AWE work schedules are determined by business need
and subject to supervisory approval.
Q#14: WHAT WILL HAPPEN WITH ACCUMULATED SICK LEAVE? ANY COMPENSATION GIVEN?
Nationwide's current benefit program does not provide a payment
for unused sick leave. Should the Nationwide benefits programs be
adopted for the ALLIED employees, we anticipate no payment or
compensation will be made for any accumulated, unused sick days under
the ALLIED program.
Should the Nationwide benefit programs be adopted for the ALLIED
employees, sick leave benefits will be awarded based on combined ALLIED
and Nationwide service.
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EXHIBIT (a)(20)
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SPECIAL EDITION FOR PART-TIME EMPLOYEES
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NATIONWIDE BENEFIT QUESTIONS
AUGUST 19, 1998
Q#1: WHAT IS THE MINIMUM REQUIRED NUMBER OF PART-TIME HOURS WORKED NECESSARY
TO PARTICIPATE IN THE BENEFIT PROGRAM? WILL PART-TIME SERVICE TRANSFER
OVER TO NATIONWIDE?
Nationwide pays employees on a biweekly basis. The minimum number
of hours an individual must be regularly scheduled to work during a two
week period (biweekly) is 38.75. All individuals scheduled to work at
least 38.75 hours per biweekly pay period are eligible for Nationwide
benefits.
To the extent ALLIED employees participate in the various
Nationwide benefits plans, all part-time, salaried employee service
will be recognized.
Q#2: WILL PART-TIME EMPLOYEES RECEIVE HOLIDAY PAY?
Holidays for part-time employees and employees working an
alternative work schedule, are prorated and applied to match the hours
worked.
Q#3: AS A PART-TIME EMPLOYEE WORKING 1,000 OR MORE HOURS A YEAR, I AM
ELIGIBLE FOR 401(k) AND ESOP CONTRIBUTIONS AT ALLIED. WHAT DOES
NATIONWIDE OFFER FOR PART-TIME EMPLOYEES? 401(k)? SICK LEAVE?
Salaried employees who are regularly scheduled to work at least
38.75 hours bi-weekly (two-week period) are eligible to participate in
all benefit plans. If you continue as a part-time employee you will be
eligible for the Nationwide 401(k) program. Sick leave, vacation,
personal days and family illness day benefits are pro-rated based upon
the number of hours the employee is regularly scheduled to work as of
the award date. Under these plans, for part-time and alternative work
environment employees, one day equals 1/10 of their regularly scheduled
bi-weekly hours.
Q#4: I WORK 30 HOURS PER WEEK. AS A PART-TIME EMPLOYEE WILL I RECEIVE
BENEFITS?
As described in Answer # 2 of the July 29 Update, sick leave,
vacation, personal days and family illness day benefits are pro-rated
based upon the number of hours the employee is regularly scheduled to
work. For part-time employees, one day equals 1/10 of their regularly
scheduled bi-weekly hours. As a part-time employee you will be eligible
for the Nationwide 401(k) program.
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Q#5: FULL-TIME EMPLOYEES CAN CARRY OVER 10 DAYS OF VACATION. HOW MANY DAYS
OR HOURS CAN A PART-TIME EMPLOYEE CARRY OVER?
Ten days. Sick leave, vacation, personal days and family illness
day benefits are pro-rated based upon the number of hours the employee
is regularly scheduled to work. Under these plans, for part-time
employees, one day equals 1/10 of their regularly scheduled bi-weekly
hours. The 10 day carry-over provision also applies to employee on a
part-time schedule.
Q#6: IS JOB SHARING AN OPTION? HOW DOES JOB SHARING WORK?
The Nationwide Insurance Enterprise has a formal Alternative Work
Environment (AWE) policy. The AWE policy covers flextime, compressed
work weeks, shift work, telecommuting, part-time employment, job
sharing and other forms of non-traditional work schedules.
The AWE policy is enabling. That is, when business conditions
dictate or permit an AWE schedule without a reduction in customer
service/results, individual supervisors and managers have the authority
to fashion a work solution that is in the best interest of both the
companies and the employee.
Q#7: DO PART-TIME EMPLOYEES GET MEDICAL BENEFITS?
Part-time employees regularly scheduled to work at least half
time (half of the standard workweek) are generally eligible to
participate in most of the same benefits plans as full time
employees--including medical coverage.
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<PAGE> 1
Exhibit (a)(21)
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NATIONWIDE ANSWERS YOUR QUESTIONS
NATIONWIDE HOTLINE: 1-877-655-6417
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August 26, 1998
Q#1: WHAT ARE THE OPPORTUNITIES FOR WORKING FROM HOME? DO YOU HAVE JOB
SHARING PROGRAMS?
The company provides alternate work environment (AWE) schedules
(part-time, job sharing, compressed workweek and telecommuting). The
AWE work schedules are determined by business need and subject to
supervisory approval.
Q#2: HOW MANY WEEKLY HOURS MUST AN EMPLOYEE WORK TO BE ELIGIBLE FOR HEALTH
AND DENTAL BENEFITS?
Enterprise employees regularly scheduled to work at least 19.375
hours per week (approximately 1,007 hours per year) are generally
eligible to participate in medical and dental coverage.
Q#3: HOW MANY VACATION HOURS CAN A PART-TIME EMPLOYEE CARRY OVER?
Enterprise employees can generally carry over 10 days. A day is
defined as one tenth of the regularly scheduled hours within a
biweekly pay period.
Q#4: WHAT ARE NATIONWIDE'S PAID HOLIDAYS?
Enterprise employees generally qualify for eight holidays -- New
Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving
Day and the following Friday, and Christmas (2 days). When the Fourth
of July occurs on a Tuesday or Thursday, another holiday is generally
observed on the preceding Monday of subsequent Friday, as appropriate.
Q#5: IF I DIRECTLY ROLL MY ESOP MONEY INTO THE NATIONWIDE INSURANCE
ENTERPRISE SAVINGS PLAN (NIESP) WILL I PAY ANY TAX PENALTIES AT THIS
TIME?
No.
Q#6: THE NATIONWIDE BULLETIN DATED 8/5/98 INDICATES THAT FUNDS IN THE NIESP
HAVE SOME AVAILABILITY PRIOR TO AGE 59 1/2. CAN YOU EXPLAIN THOSE
PROVISIONS?
The NIESP is a tax-qualified savings plan, and provides a limited
number of distribution options prior to termination of employment. The
NIESP provides that company contributions and earnings on those
contributions are available for withdrawal after completing 60 months
of vesting service. Participants receive a month of vesting service
for each calendar month in which they have an hour of service. All
funds are available for distribution after termination of employment
-- whether that occurs prior to or after reaching age 59 1/2. However,
a 10% tax penalty generally applies to the taxable portion of any
distribution made prior to age 59 1/2 unless funds are rolled over to
an Individual Retirement Account or another tax-qualified plan. As
with most tax provisions, there are exceptions to these rules. One
such exception may apply to NIESP distributions after age 55 and
termination of employment.
<PAGE> 2
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Q#7: IF I CHOOSE EARLY RETIREMENT, WHAT ARE THE OPTIONS AND PENALTIES FOR
FUNDS IN AN IRA COMPARED TO THE NATIONWIDE INSURANCE ENTERPRISE
SAVINGS PLAN (NIESP?
Please refer to Question #17 of the 8/5/98 Update for the
comparison between IRAs and the NIESP.
The NIESP has multiple distribution options, deferral of
distributions until a future date, monthly installments, ad hoc
payments, and lump sum payments. There are no penalties from the
NIESP. However, there are only a limited number of exceptions to
premature (before age 59 1/2) withdrawal penalty tax.
For comparison, there are a countless number of IRA products available
for a rollover -- including some products offered on a favorable basis
by Nationwide to Enterprise employees.
You should always ask for your tax consultant's assistance prior to
electing any distribution from the NIESP or an IRA.
Q#8: DOES MONEY IN AN IRA OR IN A 401(K) HAVE TO BE WITHDRAWN AT A CERTAIN
AGE? WHEN DO WITHDRAWALS HAVE TO START? WHAT ARE THE WITHDRAWAL
DIFFERENCES BETWEEN AN IRA AND A 401(K) PLAN?
After termination of employment, NIESP participants can choose to
take a withdrawal of any or all of their vested account balance at
any time. Generally, NIESP distributions must begin when the
participant reaches age 70 1/2 if he/she is no longer employed. You
should check with each individual IRA trustee for the distribution
options available after you reach age 70 1/2. Unlike NIESP, IRA
distribution must start even if you are still actively employed.
Generally, the same required distribution rules apply to both 401(k)
plans and IRAs at age 70 1/2.
Q#9. SINCE THE FUNDS IN THE NIESP ARE VARIABLE ANNUITIES, WHAT IS THE
DEATH BENEFIT? WHAT IS MY VALUE WHEN I DIE BEFORE RETIREMENT
ESPECIALLY IN A DOWN MARKET?
The funding vehicle for NIESP is a group annuity product. Unlike
individual annuity products, which often guarantee that at death the
account value will not be less than the amount contributed, group
products do not typically include such a guarantee--nor do they
charge for it. Thus, your death benefit under NIESP will be equal to
your account value, and could be more or less than the amount you
contributed.
The NIESP death benefit is equal to the value of your account at
retirement. The value of your account may fluctuate based on your
investment fund selections. There is no change in value nor is there
any specific charge to your account upon death.
Q#10: WHAT IS THE DIFFERENCE BETWEEN A VARIABLE RATE ANNUITY AND MUTUAL
FUNDS?
Please refer to Question #10 from the August 12, 1998 Update
<PAGE> 3
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Q#11: SINCE ALLIED AND NATIONWIDE ARE DRAWING THIS OUT (DELAYING THE
MERGER), ALLIED EMPLOYEES ARE LOSING MONEY BECAUSE THEY CAN'T ROLL
THEIR FUNDS INTO THEIR IRAS AND BEGIN EARNING MONEY ON THEM. WHAT CAN
BE DONE?
As you point out, the price to be paid for shares of ALLIED stock was
set some time ago. What has yet to be definitively set is what date
the purchase will be executed at that price.
Because of the legal complexities and the various state approvals all
parties anticipated an extended period of time would be needed to
complete the merger process.
Today, the assets continue to be invested in ALLIED stock, as is
required under the ESOP plan document. That plan does not provide for
distribution in anticipation of the merger.
Q#12: WHEN WILL THE PLAN AMENDMENT BE FINALIZED TO ALLOW FIVE YEAR ALLIED
PEOPLE TO ROLL TO THE NIESP?
You need not have completed five years of service to roll
distributions from other tax-qualified plans to the NIESP. All
rollover amounts are fully vested. All otherwise eligible employees
can elect to roll funds from their former employer tax-qualified
pension and savings plans to NIESP. For example, if you previously
worked for Principal, you could elect to roll over those funds to
NIESP once you are otherwise eligible to participate. You will be
notified well in advance of the date when rollovers can be
accomplished, and, we anticipate at least one more set of employee
meetings to review the NIESP provisions.
Q#13: THE NIESP FUNDS ARE WRITTEN THROUGH A VARIABLE ANNUITY PRODUCT. IS
THERE A MINIMUM GUARANTEE?
No. Please refer to Question #9 from the August 12, 1998 Update.
Q#14: WHAT IS THE CALIFORNIA VACATION SCHEDULE?
California employees earn a comparable number of vacation/personal
days as are offered to other Enterprise employees. Unlike employees
in other states, where there is a carryover provision of 10 days,
California employees are subject to maximum accumulation provisions.
This maximum accumulation provision stops accruals once the employee
reaches this level of vacation--until the employee uses vacation.
California vacation is actually accrued on a daily basis, however, a
quarterly equivalent is shown:
Days accrued per
Years of Service Calendar Quarter Maximum Accumulation
Year of Hire 2.0
2 Years 3.0 20 days
STARTING JANUARY 1 OF THE YEAR YOUR ANNIVERSARY YEAR OCCURS:
2-4 years 3.0 22 days
5-14 years 4.5 28 days
15-24 years 5.5 32 days
25 years or more 7.0 38 days
In applying this schedule, one day equals one-tenth of the regularly
scheduled bi-weekly hours of work. Accruals in the current year are
granted in the current year.
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<PAGE> 4
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Q#15: IF YOU TAKE A LOAN OUT ON YOUR 401(K) PROGRAM, WHEN YOU PAY THE LOAN
BACK ARE YOU ALSO ALLOWED TO HAVE ONGOING EMPLOYEE CONTRIBUTIONS INTO
THE 401(K) PROGRAM?
Yes. A NIESP loan generally does not affect your ability to make
contributions to NIESP.
Q#16: PLEASE GIVE AN EXAMPLE HOW PART-TIME EMPLOYEE BENEFITS ARE
FIGURED. CAN'T FIGURE HOW YOU ARE FIGURING THIS. PLEASE EXPLAIN.
Since part-time employees participate in all the same benefits as
full-time employees, we currently require them to pay the same
contributions to secure medical and dental coverage. Part-time
employees can elect to cover the employee only, employee and spouse,
employee and children, or employee and spouse and children.
Benefits under many of the other Nationwide plans are a function of
direct pay. Since part-time employees receive less pay because they
work fewer hours, their coverage/benefits under many plans is
proportional to their pay (life insurance, long term disability,
company matching contribution in the NIESP, accrued benefits under
the Nationwide Insurance Enterprise Retirement Plan).
Finally, since part-time employees work fewer hours than full-time
employees in a biweekly pay period, the number of hours of vacation
and sick leave benefits is proportional to the number of hours they
work. For example, if the regular hours worked in a biweekly pay
period is 80 hours, and you are regularly scheduled to work half time,
40 hours every two weeks, each day of vacation you are awarded is
equal to 1/10th of 40 hours or 4 hours of pay.
Q#17: PLEASE EXPLAIN HOW DENTAL COVERAGE IS HANDLED IF A PERSON LEAVES THE
COMPANY/OR IS LAID OFF DUE TO THIS MERGER/OR IF NATIONWIDE DOES NOT
OPT TO HAVE DENTAL COVERAGE? MY CONCERN IS MY HUSBAND AND I ARE
LOOKING AT GETTING BRACES ON OUR SON STARTING IN SEPTEMBER. THE WHOLE
PACKAGE RUNS BETWEEN $3,000 AND $4,000. WE NEED TO KNOW IF THIS
COVERAGE IS AUTOMATICALLY COVERED ONCE STARTED. WOULD PRINCIPAL STILL
PAY UP TO THE 50% BENEFIT OR WOULD A PERSON HAVE TO GO UNDER COBRA?
Your current Principal coverage is expected to continue up through
December 31, 1998. No decisions have been made with respect to dental
coverage. Should a change be made, we would anticipate adopting
transition rules that avoid significant reductions in benefits for
treatment in progress. COBRA would only be available if you had a
"qualifying event", such as the actions you identified - leave the
company, layoff, etc. In such a situation, the COBRA coverage would
be the same as the coverage offered to active employees.
Q#18: WE HAVE SEEN THE VACATION AND SICK DAY DISTRIBUTION SCHEDULES BASED
ON YEARS OF SERVICE AND UNDERSTAND THAT ALLIED EMPLOYEES WILL RECEIVE
CREDIT FOR THEIR YEARS OF ALLIED SERVICE. HOWEVER, THERE HAS BEEN
NOTHING STATED WHEN THESE DAYS WILL BE DISTRIBUTED FOR 1999. IT
APPEARS NATIONWIDE USES AN ANNIVERSARY OF HIRE DATE FOR THEIR
DISTRIBUTION, BUT ALLIED USED THE FIRST OF EACH NEW YEAR. IF WE HAVE
VACATIONS PLANNED FOR THE EARLY PART OF 1999, SHOULD WE BE CONCERNED
ABOUT CARRYING OVER DAYS?
Under the Nationwide vacation and sick leave plans, vacation and sick
leave benefits are based on completed years of service as of the
award date. Vacation is typically awarded each January 1, while, sick
leave is awarded on a fiscal year basis each July 1. A separate
vacation schedule/accrual applies to employees living in California.
If you have vacation plans for the early part of 1999, we previously
indicated that you have the option of carrying over up to 10 days of
vacation from 1998. However, we also expect to make an award of
vacation benefits to those employed as of January 1, 1999
<PAGE> 1
Exhibit (a)(22)
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NATIONWIDE ANSWERS YOUR QUESTIONS
NATIONWIDE HOTLINE: 1-877-655-6417
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SEPTEMBER 2, 1998
Q#1: HOW DOES NATIONWIDE BENEFIT IF I MOVE MY IRA INTO THEIR 401(K) PLAN?
The only benefit to the Nationwide Insurance Enterprise Savings Plan
(NIESP) is that an Asset Management Fee is applied to your investment as
disclosed in the Fund Profile sheets that were already provided to you.
Generally, that Asset Management Fee is at a level equal to or less than
amounts charged by comparable retail funds. Other than that, Nationwide
incurs some of the expense of administering your account--loans,
subsequent distributions, quarterly statements, etc.--as part of your
benefit package with the Nationwide Insurance Enterprise.
Q#2 HOW WILL ALLIED YEARS BE COUNTED TOWARDS THE NATIONWIDE INSURANCE
ENTERPRISE RETIREMENT PLAN? IF I AM AGE 55 BUT DO NOT HAVE 15 YEARS OF
ALLIED SERVICE CAN I ELECT EARLY RETIREMENT BENEFITS IN THE NIERP?
Our present intention is to adopt the NIERP on behalf of ALLIED employees
and to count ALLIED service for eligibility and for vesting purposes for
those individuals who continue employment after the Change in Control. If
that occurs, ALLIED employees will be immediately eligible to participate
in the NIERP if they have completed at least 12 months of service. If they
have completed at least 60 months service, they will be vested in the
future accruals of benefits.
With respect to retirement, eligibility to commence benefits from the
NIERP is expected to be based on attaining at least 15 years of combined
ALLIED/Nationwide service and age 55 or attaining at least 5 years of
combined ALLIED/Nationwide service and age 62. So, if you have at least
five years of combined ALLIED/Nationwide service, you can terminate
employment with a vested benefit from the NIERP. Once you reach age 55
with 15 years of combined service, or age 62 with at least 5 years of
combined service, you can commence payment of that benefit.
EXAMPLE: Assume an ALLIED employee with 8 or more years service, who is
currently earning $40,000/year and is age 55 today. Assume she works 7
years after the NIERP is adopted. Assuming the current plan provisions and
wages continue, she could elect to retire at age 62 and obtain a NIERP
benefit of approximately $3,400 per year for life, as well as retiree
medical coverage.
Q#3: I'VE BEEN WITH ALLIED 21 YEARS. IF I ROLL ALL OF MY ESOP MONEY INTO THE
NATIONWIDE 401(K) PLAN AND TAKE EARLY RETIREMENT AT AGE 55, CAN I TAKE A
SET MONTHLY WITHDRAWAL FROM THE PLAN OR DO I HAVE TO ROLL MY MONEY INTO
SOMETHING ELSE? WILL I BE PENALIZED FOR DOING THIS?
Monthly withdrawals are available from the NIESP, minimum of $200 per
month. Currently, there is no plan penalty for taking monthly withdrawals,
nor any administrative fee.
Q#4: I NEED A SHEET OF DATA TO BE PROVIDED ON THE ENTERPRISE 401(K) SAVINGS
PLAN. WE RECEIVED A PACKET WITH A MUTUAL FUND PROFILE SHEET OR SUMMARY
THAT SHOWS ALL FUNDS AS OF JUNE 30, 1998. HOWEVER, THERE WAS SOME KIND OF
YIELD AS OF MARCH 31, 1998. WHAT I'VE BEEN OBSERVING IS THAT THERE ARE
SOME GREAT DIFFERENCES. WE NEED INDIVIDUAL FUND PROFILE SHEETS TO BE
PROVIDED TO COMPARE AND TRY TO FIGURE OUT WHAT'S GOING ON.
Prior to the time when you will be eligible to enroll in the NIESP, you
will be provided updated fund profile sheets from which you can make your
investment decisions.
<PAGE> 2
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Q#5: I AM UNDERGOING SOME INFERTILITY TREATMENT. WHAT DOES THE NATIONWIDE
BENEFIT PLAN COVER? AND, WHEN WILL NEW BENEFITS TAKE EFFECT?
Nationwide offers 100 different medical options across the United States.
Most of those options either exclude treatment for infertility, or limit
the benefit. Assuming that the Nationwide medical options are offered to
ALLIED employees to be effective January 1, 1999, you should review the
enrollment materials carefully, and if you have questions call the
administrator of that particular medical program prior to making a
decision on health coverage.
Q#6: WHAT IS THE PROCEDURE FOR MATERNITY LEAVE? DO NATIONWIDE EMPLOYEES USE
SICK LEAVE TIME TO COVER DISABILITY? PLEASE GIVE ME AN EXAMPLE OF HOW THE
SICK LEAVE PLAN WORKS.
Under current Enterprise programs, an employee who is pregnant typically
works up to two weeks prior to her due date. She could elect to continue
employment up to her due date if desired. At that point, we treat the
employee as having satisfied the definition of disability and sick leave
benefits would commence. We would typically not challenge an assertion of
disability until at least six weeks post-partum for an uncomplicated
birth. The period of absence would be paid as sick leave, or if sick leave
had been exhausted, as Long Term Disability (LTD) if the employee had
enrolled for LTD coverage.
While the sick leave schedule is established as a fiscal year award, our
present intention is to make an award of sick leave effective January 1,
1999.
Q#7: I AM CURRENTLY WORKING FOR ALLIED. I HAVE WORKED WITH NATIONWIDE IN THE
PAST. WILL MY YEARS WITH NATIONWIDE COUNT TOWARD THE NATIONWIDE BENEFITS
PLANS?
It depends. The Nationwide Insurance Enterprise benefit plans include
specific provisions concerning the re-credit of past Enterprise service.
Two rules control:
-- If your service has been continuous, that is, you left an
Enterprise company to commence employment with ALLIED, and you've
been continuously employed with ALLIED since that date, your past
Enterprise service will be counted within the Enterprise plans.
-- If your service was not continuous, but you left your Enterprise
position less than five years prior to the Change in Control
date, you will generally receive past service credit under the
Enterprise plans based on the provisions of each specific plan.
Please remember to notify us of any past Enterprise service when you
complete the various employment documents/forms.
Q#8: WHEN WILL YOU HAVE MORE INFORMATION AS TO WHEN THE CHANGE IN CONTROL WILL
OCCUR?
We do not have an answer for you at this time. Because of the legal
complexities and the various state approvals all parties anticipated an
extended period of time would be needed to complete the merger process
between the two mutual insurance companies.
Q#9: IF ALLIED ADOPTS NATIONWIDE BENEFITS WILL WE HAVE HEALTH CARE SPENDING
ACCOUNTS FOR EYEGLASSES, DOCTOR APPOINTMENTS AND CHILD CARE?
Yes.
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<PAGE> 3
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Q#10: WHEN THE MERGER TAKES PLACE WILL THERE BE A RETIREE DISCOUNT AVAILABLE FOR
NATIONWIDE EMPLOYEES?
We are not sure we understand your question but retirees (and many of
their family members) of the Nationwide Insurance Enterprise have access
to a number of different programs such as the Nationwide Federal Credit
Union, Nationwide Advisory Services mutual funds on a Net Asset Value
Basis, the Nationwide Insurance Enterprise Best of America Annuity (NEBA),
etc.
Q#11: WHEN THE MERGER TAKES PLACE WILL MEDICAL BENEFITS REMAIN THE SAME AFTER
12/31/98?
Our present intention is to offer the same benefits to ALLIED employees as
are offered to all other, similarly situated, Enterprise employees. So, if
you live in Santa Rosa, CA, or Denver, CO or Des Moines, IA, we expect to
offer you the same medical options as are offered to all other Enterprise
employees in that same location. At this time, we also expect to offer
many of the existing ALLIED medical options.
Q#12: HOW WILL THE FAMILY LEAVE BE COVERED? WHERE WILL WE SUBMIT THE FORMS?
Nationwide complies with the Family Medical Leave Act of 1993 and provides
up to 12 weeks of unpaid time off. It is too early in the transition
process for a response to your request concerning submission of forms. As
soon as plans are finalized, you will be kept informed.
Q#13: I HAVE A CHILD WHO WILL BE A SENIOR THIS YEAR. WHAT ARE THE SCHOLARSHIP
PROGRAM PROCEDURES?
ALLIED employees who are parents of high school seniors that have been
notified of their National Merit Semi-finalist status, should contact
National Merit and request that their son or daughter be included in the
potential Nationwide Insurance Enterprise scholarship listing effective
January 1, 1999.
Department of Educational Services & Selection
National Merit Security Corp.
1560 Sherman Ave., Ste 200
Evanston, IL 60201-4897
(847) 866-5100
Q#14: I STILL DON'T UNDERSTAND IF I MUST WORK FIVE YEARS WITH NATIONWIDE IN
ORDER TO RECEIVE VESTING CREDIT OR WILL MY YEARS AT ALLIED BE COUNTED
TOWARD VESTING CREDITS.
Once your combined ALLIED and Nationwide service reaches 60 months, or 5
years, you will be fully vested in the Nationwide Insurance Enterprise
Retirement Plan (NIERP) and the Nationwide Insurance Enterprise Savings
Plan (NIESP).
Q#15: IN THE AUGUST 5 UPDATE I DO NOT UNDERSTAND THE ANSWER TO QUESTION #7. THE
QUESTION IS:
I STARTED WITH ALLIED ON APRIL 15, 1993 AND LEFT ON JANUARY 7, 1996. I WAS
REHIRED ON DECEMBER 27, 1996. ALLIED DID NOT TREAT THIS AS A BREAK IN
SERVICE, THEREFORE I AM FULLY VESTED IN THE ESOP PLAN. WHAT WILL MY
VESTING BE WITH NATIONWIDE IN THE RETIREMENT AND SAVINGS PLANS?
Once your combined ALLIED and Nationwide service reaches 60 months, you
will be fully vested in the Nationwide Insurance Enterprise Retirement
Plan (NIERP) and the Nationwide Insurance Enterprise Savings Plan (NIESP).
It appears that you have a total of 55 months service: 9 months of service
in 1993, 12 months of
-3-
<PAGE> 4
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service for the calendar years 1994 and 1995 equaling 24 months, service
in January 1996 and December 1996 (2 months), 12 months of service in 1997
and 8 months of service year-to-date in 1998. If the Nationwide plans are
adopted January 1, 1999, you will probably have 60 months of service by
then. So, once you start to participate in the NIERP and the NIESP, you
will be vested in company contributions/accrued benefits in both plans.
You will always be vested in any rollover contributions, such as your ESOP
money, if you place it in the NIESP. You are also always vested in your
contributions to NIESP.
Q#16: AUGUST 5 UPDATE, QUESTION #3. IS THIS INFORMATION CORRECT?
Yes. The schedules shown for new hire vacation benefits are accurate. A
separate accrual schedule applies in California.
Q#17: HOW MANY WEEKLY HOURS MUST AN EMPLOYEE WORK TO BE ELIGIBLE FOR HEALTH,
DENTAL AND LIFE BENEFITS?
Enterprise employees regularly scheduled to work at least 19.375 hours per
week (approximately 1,007 hours per year) are generally eligible to
participate in medical, dental and life coverage.
Q#18: CAN I SELL MY ESOP STOCK AND TRANSFER THE PROCEEDS TO A ROLLOVER IRA OR
THE NATIONWIDE INSURANCE ENTERPRISE SAVINGS PLAN (NIESP) AND DEFER ALL
TAXES?
Generally, yes. If you want to transfer the proceeds to a Rollover IRA or
the NIESP, you will have to complete two sets of forms--one set for State
Street Bank, the ESOP Trustee, that controls the distribution from the
ESOP and one set for the financial institution that controls the
investment in either the Rollover IRA or Nationwide for the NIESP. You
will receive all the necessary forms prior to the time you are called upon
to make an election.
Q#19: I HAVE MUTUAL FUNDS IN THE 401(K) PLAN AND I KNOW THE FIDELITY
CONTRAFUND IS A CLOSED FUND. AS A NEW PARTICIPANT IN THE NATIONWIDE
INSURANCE SAVINGS PLAN (NIESP), CAN I INVEST IN THE FIDELITY CONTRAFUND?
Yes.
Q#20: THE PREVIOUS UPDATE STATED THAT EMPLOYEES CAN CARRY OVER 10 DAYS OF
VACATION INTO THE NEXT YEAR. IF AN EMPLOYEE USES SOME VACATION IN THAT
YEAR WHAT VACATION IS USED FIRST, CARRYOVER OR EARNED?
Q#21: Carryover vacation would be deducted before the new year vacation award
would be counted.
-4-
<PAGE> 1
Exhibit (a)(23)
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NATIONWIDE ANSWERS YOUR QUESTIONS
NATIONWIDE HOTLINE: 1-877-655-6417
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SEPTEMBER 9, 1998
Q#1: REGARDING POLICIES FOR PEOPLE WHO WORK IN CALIFORNIA, MANY OF YOUR
PUBLICATIONS ANSWER OUR QUESTIONS THAT A DIFFERENT POLICY APPLIES IN
CALIFORNIA. WHY A DIFFERENT POLICY AND WHAT IS THE POLICY FOR
CALIFORNIA?
The only policy that differs is the vacation policy. In California,
vacation accruals in the current year are given in the current year.
For example, an employee hired on January 15, 1999, will accrue 7.715
(352 x .021918) personal/vacation days in 1999. In 2000, the employee
will accrue twelve (365 x .0328767) personal/vacation days. Assuming
the employee uses no vacation in 1999 or 2000, he/she will have 19.715
days at year end 1999. The maximum accrual for individuals with less
than 5 years of service is 20 days, so, this employee will have to
start using vacation/personal days early in 2000 to avoid the maximum.
This daily accrual/maximum accrual methodology is designed to comply
with California labor laws.
Employees who live in other states receive an annual award of vacation
on January 1 based on service with the companies.
Q#2: HOW ARE RAISES DETERMINED AT NATIONWIDE? DO YOU COMBINE A COST OF
LIVING WITH A MERIT?
Nationwide's policy is that each employee should receive a performance
evaluation on an annual basis. Salary adjustments depend upon the
individual's performance (contribution to results) and the job market
value (the competitive value of the job and competencies in the
market).
Nationwide does not utilize a cost of living adjustment process.
Q#3: DOES NATIONWIDE OFFER FLEXIBLE SPENDING FOR DOCTOR BILLS,
PRESCRIPTIONS THROUGH THE YEAR, AND DEPENDENT CARE SPENDING?
Yes.
Q#4: HOW LONG DO YOU HAVE TO BE EMPLOYED BY NATIONWIDE TO BE ELIGIBLE FOR
SEVERANCE PAY?
There is no minimum employment period to be eligible for severance pay.
Under the Nationwide Insurance Enterprise Severance Pay Plan, employees
whose employment is involuntarily terminated due to job elimination
receive severance pay. Severance pay is calculated as one week of pay
per year of service, minimum two weeks, maximum twenty-five weeks.
ALLIED/Nationwide service will be applied for severance determination.
<PAGE> 2
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Q#5: I AM CONFUSED ABOUT THE 4TH OF JULY HOLIDAY/PERSONAL DAY SCHEDULE.
PLEASE EXPLAIN.
If the 4th of July falls on Sunday, Monday is observed. If it falls on
Saturday, Friday is observed as a holiday. If the 4th of July falls on
a Monday, Wednesday or Friday, that day is observed as a holiday.
Should the 4th fall on Tuesday or Thursday, the companies schedule a
company-wide personal day as an additional holiday on the Monday before
or the Friday after July 4th to create a four-day weekend.
Q#6: IS THE AMOUNT OF TIME OFF FOR PREGNANCY/MATERNITY/PATERNITY
DETERMINED BY THE SICK LEAVE SCHEDULE? ARE
PREGNANCY/MATERNITY/PATERNITY TREATED THE SAME AS OTHER ILLNESSES FOR
SICK LEAVE PURPOSES? PLEASE GIVE AN EXAMPLE.
No, the amount of time off for pregnancy/maternity/paternity is
determined by what time off the new mom or new dad selects. New moms
and dads can be absent from work due to pregnancy/maternity/paternity
regardless of whether the period is recorded as a period of sick leave,
Long Term Disability (LTD), vacation, personal days, unpaid time off,
or a combination of those forms of time off.
Under company policy, both new moms and dads can elect up to twelve
weeks of time off. All time off, whether paid or unpaid (sick leave,
vacation, LTD, personal days, unpaid leave, etc.) count towards the
twelve week maximum. The twelve-week maximum is twelve weeks during any
continuous 365 day period. This twelve-week period complies with the
Family Medical Leave Act of 1993.
For uncomplicated pregnancy/maternity, a new mom can use eight weeks of
time off perinatal--two weeks before the estimated due date and six
weeks after birth. With respect to sick leave/LTD benefits,
pregnancy/maternity is treated the same as all other illnesses. So,
during the eight-week period, a new mom is entitled to sick leave
benefits in accordance with the sick leave schedule. Should she exhaust
her sick leave, LTD benefits would start if she enrolled for that
coverage. A new mom can elect to work up to her due date or the date of
birth, if she wants to.
The sick leave program provides a number of weeks at 100% pay and
additional weeks at 80% pay. The number of weeks any individual
receives depends on how much service they have at the time sick leave
is awarded. Should an employee exhaust both the 100% and 80% sick
leave, LTD benefits start at 60% of pay if she enrolled for the
coverage. Typically, a new mom would use up all of her 100% sick leave
and some of her 80% sick leave during the eight-week period. Then, if
the new mom elects additional time off, for example, for bonding
purposes, she could take another four weeks of time off. Depending on
her work situation, she might elect to use vacation and personal days
during the four-week period. All vacation and personal day
scheduling/use is subject to supervisor approval.
-2-
<PAGE> 3
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Q#7: IOWA EMPLOYEES RECEIVED AN ACCIDENTAL DEATH POLICY IN DECEMBER OF
1997. WILL THIS POLICY BE CONTINUED FOR EMPLOYEES FOLLOWING THE MERGER?
It is too early in the transition planning process to answer your
question. As plans are finalized, you will be kept informed.
Q#8: IF I TRANSFER MY ESOP DISTRIBUTION INTO THE NATIONWIDE INSURANCE
ENTERPRISE SAVINGS PLAN (NIESP) AND THEN TAKE A NIESP LOAN, WHAT ARE
THE PROVISIONS FOR REPAYMENT? WHAT WILL THE INTEREST RATE BE? HOW LONG
WOULD I HAVE TO REPAY THE LOAN? IF I QUIT AFTER TAKING THE LOAN, DO I
HAVE TO REPAY IT ALL AT THE TIME I LEAVE? IF NOT, HOW LONG WILL I HAVE
TO REPAY IT AFTER LEAVING?
Repayment is made biweekly from your paycheck. If you terminate after
reaching age 55 and completing five years vesting service, you can
continue payments on a quarterly basis by personal check.
Interest rates change periodically. Today, only fixed interest rates
are used (fixed for the term of the loan). You will receive information
concerning the interest rates at the time you elect a loan. The current
NIESP loan interest rates as of September 1, 1998 are: General Loan
10.5%, Principal Residence Loan 5.0% and Second Residence Loan 8.5%.
Department of Labor regulations require the NIESP charge a market rate
of interest on any loan. Of course, your repayment of interest and
principal goes back to your individual account.
Depending on which loan you elect, you can elect repayment periods of
up to either five years (for general loans, or second residence loans)
or fifteen years (for a principal residence loan).
When your employment ends (unless you terminate after reaching age 55
and completing 5 years service), you must repay your loan in full. You
would be contacted after termination of employment to make
arrangements. Your other option would typically be to default on the
loan and have it recharacterized as a distribution.
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EXHIBIT (a)(24)
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NATIONWIDE ANSWERS YOUR QUESTIONS
NATIONWIDE HOTLINE: 1-877-655-6417
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SEPTEMBER 16, 1998
In the concurrent ALLIED Update, ALLIED confirms that your active participation
in the ALLIED 401(k) plan will end with deferrals from your 9/28/98 paycheck
for payroll through 9/25/98. Details concerning the impact of this action are
included in the ALLIED Update.
Tax qualified benefits plans, such as 401(k) plans, are subject to a number of
tax code rules and regulations. The ALLIED 401(k) plans were terminated at this
time so a request can be filed with the IRS to obtain approval of the wind up
of these plans to distribute your account as soon as practical.
To ensure that you have access to a 401(k) plan and company match for the
remainder of 1998, ALLIED, after the Change in Control, will adopt the
Nationwide Insurance Enterprise Savings Plan (NIESP). The NIESP permits
deferrals of 1% to 22% of pay, has 15 investment options, and, includes a
company match of 50% on your first 6% of pay contribution. Participation can
begin with your November 11, 1998 paycheck. You will receive details about
enrolling in NIESP in upcoming meetings in late September and early October.
Your elections under the current ALLIED 401(k) plans will not be transferred to
the NIESP -- you must make new elections of how much to defer and where to
invest the funds. At the meetings, information will be provided that confirms
the enrollment process, that confirms how you can increase your contributions
(if desired) and, that confirms how you can obtain a full 3% of pay company
matching contribution on compensation paid to you in the 4th Quarter.
A Special Update is being drafted at this time with additional details.
Q#1: I AM RETIRING NEXT YEAR AT AGE 59 1/2 WITH 12 YEARS OF ALLIED
SERVICE. I AM CONCERNED ABOUT THE HEALTH BENEFITS. WHAT WILL HAPPEN?
Under the Nationwide Insurance Companies & Affiliates Health Care Plan
(Health Plan), medical coverage can continue for ALLIED covered
employees, spouse and dependent children if the individual:
o Terminates employment after reaching age 55,
o Has completed at least 15 years of vesting service in the
Nationwide Enterprise Retirement Plan (NIERP),
o Commences NIERP and retiree medical benefits in the calendar month
following the calendar month in which they terminate employment.
Our present intention is to adopt a transitional rule for ALLIED
employees that will adjust the second requirement above to 5 years of
vesting service in the Pension Plan for those individuals who
terminate employment and elect to retire on or before January 1, 2004.
Our present intention is to offer ALLIED employees coverage under the
various Nationwide retiree medical benefit options effective January
1, 1999, and, to continue existing ALLIED retiree medical cost sharing
for 1999.
The Nationwide retiree medical benefit options differ based on
Medicare eligibility. For those who are not yet eligible for Medicare
(generally, individuals under age 65), Nationwide offers access to the
same
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HMO options offered active employees as well as a choice of two
indemnity options. For those who are eligible for Medicare, Nationwide
offers retirees access to Medicare HMO options (group and individual)
as well as a choice of two indemnity options (similar to traditional
Medicare Supplement coverages). No dental coverage is provided to
retirees.
At retirement, you will be provided information concerning what
options are available in your location and what contributions are
necessary to continue coverage.
Q#2: I AM AN ALLIED RETIREE AND I AM CONCERNED ABOUT MEDICAL BENEFITS AFTER
NATIONWIDE TAKES OVER. WHAT WILL HAPPEN?
ALLIED retirees will be notified in October 1998 concerning what
coverage options and retiree contributions will apply for 1999. For
1999, our present intention is to offer ALLIED retirees access to the
same coverage options provided to Nationwide retirees, and, to
continue existing ALLIED retiree cost sharing.
See question #1 for a description of Nationwide retiree medical
coverage options and for the eligibility requirements for retiree
medical coverage.
Q#3: I AM AN ALLIED EMPLOYEE WHO IS AGE 62 WITH 5 YEARS OF SERVICE. WILL I
RECEIVE THE SAME MEDICAL BENEFITS AS A NATIONWIDE EMPLOYEE WHEN I
RETIRE?
No. You will receive better benefits than a similarly-situated
Nationwide employee. A Nationwide employee hired five years ago, in
1993, would not have sufficient service to qualify for retiree medical
upon termination of employment. However, our present intention is to
adopt a special transition rule for ALLIED employees who continue
employment with the Enterprise and retire on or before January 1,
2004, to reduce the service requirement to five years service. See the
responses to questions #1 and #2 for more information about retiree
medical benefits.
Q#4: I AM 55, BUT I WILL NOT HAVE 15 YEARS OF SERVICE UNTIL SEPTEMBER
1999. HOW DOES THE COMBINED ALLIED/NATIONWIDE SERVICE AFFECT MY
RETIREMENT?
Nationwide offers a number of retirement-related benefits --
specifically retiree medical and pension benefits. To be eligible for
these benefits, you must meet certain age and service qualifications.
Other requirements apply to commencement of those benefits.
Eligibility for retiree medical benefits was discussed in the
responses to questions #1, #2 and #3.
To be eligible for benefits from the NIERP, you must complete at least
60 months of vesting service (5 years). Our present intention is to
recognize your combined ALLIED/Enterprise service for NIERP vesting
service purposes for ALLIED employees who continue employment
following the merger. So, once the NIERP is adopted for ALLIED
employees, because you indicate you already have more than five years
of ALLIED service, you will be vested and will be eligible for a
benefit.
To commence NIERP benefits, you must first terminate employment. After
termination, you can start monthly benefits once you reach age 55 and
complete 180 months of vesting service (15 years). If you have 5, but
less than 15 years of vesting service, you can commence Pension Plan
benefits once you reach age 62.
Pension Plan benefits are determined based on a formula that considers
your months of participation service, your compensation and your age
at benefit commencement. Your participation service will start with
the calendar month in which the Pension Plan is adopted for ALLIED
employees. Our
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present intention is to adopt the Pension Plan effective January 1,
1999 for ALLIED employees and to recognize ALLIED earnings for
calendar year 1998.
So, based on your example and assuming you are over age 55 but not yet
age 62, if you want to elect immediately payable benefits from the
Pension Plan following your termination of employment, you would have
to continue working until you completed 15 years (180 months) combined
ALLIED/Enterprise service. Based on your example, that would mean
working until September 1999. Your Pension Plan benefit would be quite
small given the minimal amount of participation service you would have
earned after the Pension Plan is adopted. The alternative is to
terminate employment anytime after the Pension Plan is adopted and
defer benefit commencement until age 62.
One last note: Under current plan provisions, small benefits (benefits
with a present value of less than $5,000) are paid in a lump sum. If
this applies to you, you will be contacted about payment no later than
the end of the calendar year following the calendar year in which you
terminate employment.
Q#5: WHAT IS AN ENTERPRISE EMPLOYEE?
The Nationwide Insurance Enterprise is the business combination of
Nationwide and affiliated companies that were established to provide
insurance and financial services. It includes Nationwide Mutual
Insurance Company, Nationwide Life Insurance Company, Nationwide
Financial Services, Inc., Employers Insurance of Wausau, Farmland
Mutual Insurance Company, Scottsdale Insurance Company, Colonial
Insurance Company, Gates McDonald & Company, Public Employees Benefits
Services Corporation, Neckura, Morley Financial Services and other
companies. The combined workforce of these companies are referred to
as Enterprise employees.
Q#6: WILL WE STILL HAVE OUR DOUBLE DIGIT GROWTH GOALS WITH NATIONWIDE? HOW
WILL BE DO THAT? ANY IMPEDIMENTS TO THAT? HOW ABOUT THE PREMIER
SERVICE SLOGAN? WILL NATIONWIDE ADOPT THAT OR WILL IT STILL BE OUR
MOTTO?
We are not far enough into the transition process to answer your
questions. As soon as business plans are developed, employees will be
informed.
Q#7: WILL WE HAVE A CHANCE TO MOVE TO JOBS WITHIN NATIONWIDE?
Nationwide job opportunity information is provided to Enterprise
employees through the Nationwide Intranet. We anticipate that ALLIED
employees will have the same opportunity to apply for Enterprise
positions as all other Enterprise employees.
Q#8: I HAVE BEEN PURCHASING MORE LIFE INSURANCE OUT OF MY CHECK SO THAT I
HAVE MORE THAN THE COMPANY BENEFIT ALLOWS. WHAT WILL HAPPEN TO THAT
EXTRA AMOUNT I PURCHASE EACH TIME?
If your contribution reflects contributory coverage elected under the
current ALLIED benefit programs, you will be able to continue that
coverage until such time as the existing ALLIED program is
changed/discontinued. Our present intention is to offer ALLIED
employees coverage under the Nationwide Insurance Enterprise Death
Benefit Plan effective January 1, 1999. You would have the option to
enroll in that plan for coverage of up to three times pay.
If your contribution reflects a payroll-deducted purchase of an
individual policy, we expect to work with the vendor(s) of those
individual policies to continue to provide payroll-deduction support
for individual policies.
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Q#9: I READ IN ONE OF THE UPDATES THAT YOU WILL BE ABLE TO CARRY TEN DAYS
OF VACATION OVER INTO 1999. IF I AM ELIGIBLE FOR FOUR WEEKS OF
VACATION AND I CARRY 10 DAYS OVER, I WILL HAVE SIX WEEKS VACATION. IF
I QUIT IN 1999 WITHOUT USING ANY VACATION DAYS, WILL I BE PAID FOR SIX
WEEKS OF VACATION?
Assuming that the vacation award for 1999 is based on the Nationwide
vacation program, individuals who terminate employment are paid for
unused vacation, subject to a maximum equal to the number of vacation
days awarded on January 1st of the calendar year of termination of
employment. In your example, your maximum would be four weeks. No
payment is made at termination of employment for any vacation
carryover or for any unused personal days.
Q#10: WE HAVE BEEN ENCOURAGED NOT TO USE OUR SICK LEAVE UNLESS ABSOLUTELY
NECESSARY. SO, WHAT TYPE OF COMPENSATION WILL THERE BE FOR THOSE WHO
HAVE COMPLIED WITH THIS, AND HAVE SEVERAL HOURS OF UNUSED SICK LEAVE?
Under both the ALLIED and Nationwide programs, sick leave should not
be used unless you are unable to work due to illness or injury. Under
both the ALLIED and Nationwide programs, there is no payment made to
employees for unused sick leave.
The two programs differ in terms of how sick leave is provided. Under
the ALLIED program, sick leave is accrued as service continues. As
sick leave is used, your balance is reduced and as service continues,
your sick leave balance is replenished. Under the Nationwide program,
sick leave is awarded on a specific date, regardless of prior usage.
Many ALLIED employees will receive a greater award of 100% sick leave
than available under the current program.
As indicated in the 8/19/98 Update, response to question #14, no
payment of compensation is anticipated for any unused sick leave days
coincident with the transition to the Nationwide sick leave program.
Q#11: WHAT BENEFITS ARE PROVIDED BY NATIONWIDE FOR PART TIME EMPLOYEES?
See the Special Edition for Part Time employees that was included in
the 8/19/98 Update. This Update may be picked up from ALLIED's Human
Resources or your Administrative Manager.
Q#12: I PREVIOUSLY WORKED FOR NATIONWIDE. I LEFT NATIONWIDE IN JUNE 1997 AND
STARTED WITH ALLIED IN MAY 1998. I HAVE REMAINED CONTINUOUSLY EMPLOYED
WITH ALLIED SINCE THEN. WILL MY NATIONWIDE SERVICE BE COUNTED FOR
BENEFITS PURPOSES?
Yes. As indicated in our response to Question #7 of the 9/2/98 Update,
since your service was not continuous, and since you left Nationwide
less than five years ago, your prior Enterprise service will be
counted based on the provisions of each specific benefit plan. How
past service is recognized differs under the various plans -- in some
situations, the service will be immediately recredited, in others, the
service recredit may not occur until you have completed a period of
Enterprise service.
Please remember to notify us of any Enterprise past service when you
complete the various employment forms.
Q#13: ARE THERE TWO FEES CHARGED BY MANAGEMENT FOR THE 401(k) PLAN?
The only fees charged against Nationwide Insurance Enterprise Savings
Plan (NIESP) accounts are asset management fees as disclosed on the
fund profile sheets that were previously provided to all ALLIED
employees.
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Q#14: WHAT ARE THE NATIONWIDE POLICIES WITH RESPECT TO SICK LEAVE, SHORT
TERM AND LONG TERM DISABILITIES?
The Nationwide programs that provide compensation during periods of
illness or injury are described in the July 22 Update. Nationwide
provides a period of sick leave, and, where employees enroll for
coverage, followed by long term disability benefits.
Q#15: MY WIFE WORKS FOR ALLIED GROUP. NATIONWIDE ADVISORY SERVICES, INC.
OFFERS MUTUAL FUNDS TO THE PUBLIC THAT HAVE A FRONT-END LOAD. IT
APPEARS THAT THE FRONT-END LOAD IS WAIVED FOR ANY NATIONWIDE EMPLOYEE.
WILL ALLIED EMPLOYEES HAVE ACCESS TO THIS SAME DISCOUNT ON THESE
MUTUAL FUNDS?
Nationwide Advisory Services, Inc. makes available a family of mutual
funds. Those funds are available to Nationwide employees, retirees,
spouses, dependent children, siblings and other relatives on a Net
Asset Value basis -- that is, they can be purchased without any sales
charge or "front-end load".
ALLIED employees, as well as their various relatives, will have access
to these same funds on this same basis, once they become Enterprise
employees.
Q#16: IN THE SEPTEMBER 2ND UPDATE AND THE AUGUST 5TH UPDATE, I ASKED THE
FOLLOWING QUESTIONS:
I STARTED WITH ALLIED ON APRIL 15, 1993 AND LEFT ON JANUARY 7, 1996. I
WAS REHIRED ON DECEMBER 27, 1996. ALLIED DID NOT TREAT THIS AS A BREAK
IN SERVICE, THEREFORE, I AM FULLY VESTED IN THE ESOP PLAN. WHAT WILL
MY VESTING BE WITH NATIONWIDE IN THE RETIREMENT AND SAVINGS PLANS?
I THINK I HAVE THE ANSWER CONCERNING SERVICE CREDIT FOR THE PENSION
AND SAVINGS PLANS. NOW, CAN YOU TELL ME WHAT SERVICE WILL COUNT WITH
RESPECT TO THE FUTURE AWARDS OF VACATION AND SICK LEAVE BENEFITS?
ALLIED Human Resources will provide Nationwide information concerning
completed ALLIED service. So, whatever is currently recognized by
ALLIED will be recognized by Nationwide, as we will use that amount of
service in determining how much vacation and sick leave to award on
January 1, 1999.
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