1.
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What will happen to our benefits; will the benefits provided by LabCorp be comparable to those provided by Covance?
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LabCorp is committed, for a period of one year following the closing as we integrate our businesses, to providing continuing Covance employees with benefits that are comparable in the aggregate to the defined contribution retirement plan benefits and health and welfare benefits currently provided by Covance. Examples of defined contribution retirement plans include the Covance 401(k) Savings Plan offered to US employees and the Covance UK Pension Plan offered to UK employees. Health and welfare benefits include health, life and disability benefits.
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2.
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Will we have access to the same benefit options and providers?
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While the specific benefit options and providers offered to employees may change, LabCorp is committed to providing employees benefits that are comparable in the aggregate to the defined contribution retirement plan benefits and health and welfare benefits currently provided by Covance for at least one year.
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1.
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Will changes be made to the amount of the Covance 401(k) Savings Plan Covance matching contributions?
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Until the transaction closes, Covance will continue to make a Covance 401(k) Savings Plan matching contribution of up to 4.5% on the first 6% of eligible compensation employees contribute.
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2.
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What will happen to the Covance Stock Fund in the Covance 401(k) Savings Plan?
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Ownership in the Covance Stock Fund is measured in units of the fund instead of shares of stock. The fund pools the money of all employees invested in the fund to buy shares of stock and also includes an amount of short-term investments designed to allow employees to buy or sell without the usual trade settlement period for individual stock transactions. The value of the Covance Stock Fund at the time of closing will be based on the conversion of each share of Covance stock to $75.76 in cash and 0.2686 LabCorp shares, plus any short-term investments in the fund.
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3.
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Will there be any change to the Covance 401(k) Savings Plan vesting schedule?
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Employees are always 100% vested in their own contributions. Until the transaction closes, the Covance 401(k) Savings Plan will continue to provide a four year vesting schedule for company matching contributions. Additional time is needed to determine if there will be any changes in the vesting schedule on or after the closing date. Information concerning the plan will be provided to employees as it is available.
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4.
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Will the Covance 401(k) Savings Plan roll-over to the LabCorp 401(k) Plan?
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Additional time is needed to determine the length of time the Covance 401(k) Savings Plan will be maintained. This information will be provided when available.
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5.
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Will there be changes to the Covance 401(k) Plan investment options?
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Additional time is needed to determine the length of time the Covance 401(k) Savings Plan will be maintained. In the interim, Covance will continue to regularly review the Plan’s investment options and performance. As a result of the review, Covance may change the fund options.
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6.
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Will Covance 401(k) Savings Plan loans be due in full 60 days after the closing date?
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Additional time is needed to determine the length of time the Covance 401(k) Savings Plan will be maintained. In the interim, all Covance 401(k) Savings Plan loans will continue to be subject to the established repayment schedule and loans will continue to be repaid via payroll deduction.
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1.
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What will happen to the defined benefit pension plans for non-US based Covance employees such as the Covance Laboratories Pension Scheme and the Covance Clinical Research Unit Limited Pension in the UK?
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No immediate changes are being made to defined benefit pension plans as a result of the announcement. Due to the complexity involved, additional time is needed to fully evaluate the benefits provided under these plans. These efforts are underway and additional information will be shared with employees when available.
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1.
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Will the company continue to observe the current Covance holiday schedule?
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Covance will continue to observe the current holiday schedule until the closing date. Additional time is needed to determine if there will be a change to the holiday schedule and when that change may come into effect. Information will be shared with employees as it is available.
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2.
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Will I still be able to carry over my 2014 U.S. PTO to 2015?
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In accordance with the current provisions of the U.S. PTO Policy, U.S. employees will be able to carry over their entire unused 2014 PTO balance through April 30, 2015. At that time the value of any unused PTO balances will be forfeited (except where applicable law prohibits such forfeiture). Employees are encouraged to use PTO balances on a timely basis to avoid forfeiture of unused days.
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3.
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Will I still continue to earn the same amount of vacation / PTO / annual leave?
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Covance will continue to observe current vacation / paid time off policies until the closing date. Additional time is needed to determine the length of time these benefits will be maintained. Information will be shared with employees as soon as it is available. Prior service with Covance will generally be recognized for purposes of determining eligibility to participate and level of benefits under any LabCorp vacation / paid time off policy.
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1.
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Will my past service with Covance be recognized for benefit purposes?
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Generally, with certain exceptions, prior service with Covance will be recognized for purposes of determining eligibility to participate, level of benefits and vesting under the terms of LabCorp benefit plans.
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1.
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Will there be any changes to the retiree health and welfare benefits for eligible grandfathered US employees?
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Additional time is needed to determine the length of time that these grandfathered benefits will be maintained. Information will be shared with employees as soon as it is available.
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1.
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What will happen to disability benefits for U.S. employees that are on disability at the time of closing?
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U.S. employees on short-term or long-term disability on the closing date will continue to have their disability claim managed by Aetna until the claim is closed. If you have questions about the disability claim process or need to initiate a disability claim prior to the closing date, you should contact Aetna at 1-866-226-8143.
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1.
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Will the current tuition reimbursement be maintained?
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Additional time is needed to determine the length of time the Covance tuition reimbursement program will be maintained. However, if you have coursework that is approved for tuition reimbursement and begins prior to the closing date, you will be eligible for reimbursement upon satisfactory completion of the coursework and submission of the required documentation. Additional information will be shared with employees as soon as it is available.
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2.
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Will the current adoption assistance program be maintained?
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Additional time is needed to determine the length of time the Covance adoption assistance program will be maintained. Information will be shared with employees as soon as it is available.
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3.
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Will the various benefit allowances and other benefit related payroll practices be maintained? For example, the housing allowance and payment of employee social insurance in China.
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Additional time is needed to determine the length of time that allowances and other payroll practices will be maintained. Information will be shared with employees as soon as it is available.
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4.
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Will my Long Term Care policy with John Hancock be terminated?
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Employees who purchased a Long Term Care policy with John Hancock will not have their policy terminated as a result of this transaction. (This policy was offered to US employees prior to January 2012).
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