All Associates are eligible to participate in the 2008 Annual Benefits Enrollment. During this period you will be able to enroll in the available Medical, Dental, Vision, Optional Life Insurance, Dependent Life Insurance, Long-term Disability, Health Care Flexible Spending Account and Dependent Care Flexible Spending Account programs. (Note: Flexible Spending Accounts are not available in Puerto Rico)

• For medical plans, you only need to log on to MyInfo if you want to enroll in a Flexible Spending Account, make changes to your current benefits, enroll in new benefits, or add or change beneficiaries. If you are satisfied with your current benefits, no further action is required on your part (except for Flexible Spending Accounts which require re-enrollment).

If your zip code no longer meets the provider and facility availability criteria established by Payless, your medical plan election will be defaulted to a comparable plan during Annual Enrollment. If you wish to enroll in another medical plan available in your area or waive coverage, you must make an election during the Annual Enrollment period. Associates whose zip codes have changed their plan network eligibility will be notified at their home mailing address prior to Annual Enrollment. See chart below for specific information:

*Enrollment required during the Annual Enrollment period.

To participate in a 2008 Flexible Spending Account, you must make an election during this Annual Benefits Enrollment period.

Your new elections will be effective January 1, 2008:

Eastern and Western DC

Store and Non-Store Associates

Note: The Flexible Spending Accounts are not available in Puerto Rico.