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2018 Employee Benefits My Health. My Choice.

Christopher Campbell, Product Marketing, Atlanta

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Make your elections October 23 - November 3, 2017

This guide contains basic information about your 2018 VMware Benefits. For more details about your VMware Benefits, check the Summary Plan Descriptions (SPDs) available online. If there is any difference between the information in this document and the plan documents, the plan documents will govern. VMware reserves the right to amend or terminate VMware Benefits and any of its component plans at any time, including specific benefits and the amount of any employee costs. This guide, together with your other enrollment communications, serves as a summary of material modifications (SMM) to the VMware Benefits SPDs for 2018. Please keep this information with your SPDs for future reference.

2018 Open Enrollment Guide: VMware, Inc.TABLE OF CONTENTSMy Health. My Choice. .........................................................................................3

Benefit Enhancements for 2018 ......................................................................4

Health Plan Highlights and Changes for 2018 ..........................................5

Employee Contributions for 2018 ..................................................................7

More about the Health Savings Account (HSA) .....................................9

Medical Plan Comparisons ...............................................................................11

Medical Out-of-Pocket Comparison ...........................................................13

Decision Support Tools .....................................................................................15

Flexible Spending Accounts (FSAs) ...........................................................16

Health Savings and Spending Account Comparison .........................17

Dental .........................................................................................................................18

Vision ..........................................................................................................................19

Basic Life and Accidental Death and

Dismemberment (AD&D) Insurance ..........................................................20

Supplemental Life Insurance ..........................................................................21

Short and Long Term Disability ...................................................................22

Work/Life Benefits .............................................................................................23

My Enrollment Checklist ..................................................................................25

Tools & Resources ...............................................................................................27

Qualified Life Events ..........................................................................................28

Key Benefits Terms .............................................................................................30

Benefits Contacts ................................................................................................32

DID YOU KNOW?

Benefits.VMware.com is your one stop for benefit details, costs, and documents. Open Enrollment and HSA recordings will also be posted if you were not able to attend.

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We realize that the most helpful thing we could do when it comes to your health is give you choices. When you can control how much you spend on healthcare, you get the chance to make the choices that are right for you and your family. To help provide tax incentives and cost savings, we are continuing to focus efforts on the HSA PPO for 2018 and into the future. The HSA PPO is a combination of a traditional PPO plan with a Health Savings Account (HSA). This tax-advantaged plan lets you save ahead of time for medical as well as other eligible healthcare expenses. It gives you the coverage you need while letting you choose how much you spend on healthcare. By enrolling in this plan, you can qualify for a generous VMware contribution into your personal HSA! Be sure to learn more about this plan and all the tax savings you can achieve.

Please review this guide for complete details on all of the benefits available for 2018. There are some exciting benefit enhancements! We are proud to deliver quality competitive benefits that give our employees the great choices they deserve.

DON’T FORGET!This is your once-a-year opportunity to make changes to your medical, dental, vision, life, supplemental life, disability, FSA, and voluntary legal plan elections. Information about all of your 2018 benefit options can be found on benefits.VMware.com.

DO I NEED TO ENROLL? We recommend that you take the time to review your elections for accuracy, make sure your eligible dependents are enrolled and your beneficiary designations are current. If you do not submit any elections during the enrollment period, your current 2017 elections will automatically roll over to 2018 but you will not be enrolled in FSA or HSA. If you waived enrollment in 2017 these will also default to “no coverage” in 2018.

My Health. My Choice.

DID YOU KNOW?

Many employees forget to update their beneficiaries each year. Click here to learn how to make updates.

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Kasey Linden,Professional Services,

Nebraska

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Benefit Enhancements for 2018

Health PlanEnhancements Telemedicine through Aetna

Employees who enroll in an Aetna medical plan will now be able to access U.S board certified doctors through the convenience of phone, video or mobile using the Teladoc app. For those enrolled in the HSA PPO, the cost of a consult will be less than an office visit. HSA PPO members will pay $40 per consult until you reach your deductible after which coinsurance applies.You can use your HSA debit card to pay for the consult.

Traditional PPO members will pay the same $20 office visit copay.

Teladoc doctors can treat many medical conditions that are non urgent such as allergies, respiratory infections, pink eye, sore throats, ear infections, sinus and skin problems and more!

Visit benefits.VMware.com for details on the program. After January 1, 2018 a Welcome Packet will be mailed to Aetna members with instructions on how to enroll.

Dental Plan Enhancements

Annual Dental Maximum (Non Orthodontic)

The annual dental maximum will increase from $1,500 to $2,000 per member.

Child Life Enhancement

Supplemental Child Life — Dependent Coverage

Dependent children will be covered up to age 26, regardless of student status or marital status.

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Laura Douglas,Facilities, Colorado Springs

Did you know the Bright Horizons Back-Up Care uses have increased from 10 to 12 uses per employee per plan year?

Bright Horizons provides back-up child care and elder care for VMware employees when their regular care-giving arrangements fall through. There is no cost to register, and you will pay a small co-payment as you use the services. Also, starting January 1, 2018, employee usage will be based on a calendar year so you can easily manage your 12 back-up care uses along with all our other great VMware programs. For more information, visit Back-Up DayCare Program page on our US Benefits website.

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Health Plan Highlights and Changes for 2018Please be sure to review the following changes to the health plans for 2018 before making your benefit elections.

HSA PPO Plan

HSA PPO Plan Prescription Drugs

No change to HSA PPO plan design for 2018. Review plan compare on Page 11 for details.

No change to premium contributions.

Employee Only coverage is still free ($0).

Remember that certain preventive drugs are not subject to the deductible and are covered under the Rx coinsurance tiers.

For a full list of covered preventive drugs visit http://aetna.com/formulary.

VMware’s annual contribution to your HSA

If you enroll in the HSA PPO for the 2018 calendar year, VMware will contribute a lump sum to your HSA1:• $750 (individual)• $1,500 (family)• Funding will occur during the first pay period in January 2018.

HSA Contribution Limits

HSA Increase to Contribution Limits

For 2018, you can contribute up to $3,450 for an individual and $6,900 for family, less any contributions made by VMware.

$750 (VMware contribution) + $2,700 (individual employee contribution) = $3,450 (annual maximum contribution)2

$1,500 (VMware contribution) + $5,400 (family contribution) = $6,900 (annual maximum contribution)2

Credit for employes who wish to enroll in the HSA PPO but are not eligible for an HSA

Employees who are not eligible to contribute to an HSA in 2018 and who submit proof of ineligibility within 60 days of enrollment, will receive a one-time taxable bonus. Refer to HSA Proof of Other Medical Coverage Form on the Benefits website.

• $750 (individual)• $1,500 (family)• Taxable bonus will be occur during the first pay period in January 2018, provided documentation is submitted timely.

1 Interns are eligible for the HSA PPO plan but will not receive the VMware HSA contributions. Interns may contribute their own funds to the HSA if they choose.2Catch up contributions remain the same at $1,000 for employees turning age 55 and over in 2018.3The employee contribution is not required order to receive the contribution from VMware.

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Health Plan Highlights and Changes for 2018 (continued)

Traditional PPO Plan

Traditional PPO Plan Prescription Drugs

No plan design changes for 2018.

Premium contribution rates will increase for 2018. See the comparison chart on Page 7 for details.

Kaiser

Kaiser Hawaii To comply with new state regulations, the Kaiser HI plan will have the following mandated changes, effective January 1, 2018:

Annual Out-of-Pocket Maximum (OOPM):

The out-of-pocket maximum is increasing to $2,500 for individual coverage and to $7,500 for family coverage.

Hospitalization:

Inpatient hospital care will be covered at 10% coinsurance.

Prescription Drugs:

Beginning in 2018, there will be an additional pharmacy tier for specialty drugs. Specialty drugs will be covered at $200 copay per prescription.

See the comparison chart on Page 12 for details.

Premium contribution rates will increase for 2018. See the comparison chart on Page 7 for details.

Kaiser N. CA No change to plan design and Rx for 2018.

Premium contribution rates will increase for 2018. See the comparison chart on Page 7 for details.

DID YOU KNOW?

Rethink provides assistance for employees and their families needing support for neurodiver-sity disabilities, including Autism Spectrum Disabilities, ADHD, and Down Syndrome. Rethink also provides parents with 14 hours of free consultations with a behav-ioral therapist each year.

DID YOU KNOW?

The pharmacy benefit and services subject to coinsurance must satisfy the medical plan deductible under the Traditional PPO plan. If you cover one of more family members in this plan, you must meet the full family deductible (known as an aggregate deductible) before traditional coinsurance applies.

There are certain preventive drugs that are not subject to the deductible and are covered under the coinsurance tiers. For a full list of covered preventive drugs visit http://aetna.com/formulary

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Employee Contributions for 2018

*Per paycheck contributions are 24 times per year. Contributions are pre-tax (except for domestic partner coverage).

Great news! Employee only coverage will continue to be free for the HSA PPO, Dental and the Core Vision plans.

There will be no employee contribution changes for the HSA PPO, dental, and vision plans in 2018.

There will be an increase in contributions for the Traditional PPO, Kaiser N. CA, and HI plans.

For those covering a domestic partner in 2018, all domestic partner elections will be considered post-tax. Review the Domestic Partner Imputed Income Rates on the benefits site and consult with your financial planner/tax attorney when filing your 2018 tax return.

Per Paycheck Contributions *

Plan Employee Only Employee + Spouse/ Domestic Partner Employee + Child(ren) Employee + Family

HSA PPO $0 $54.02 $38.90 $97.24

Traditional PPO $89.35 $201.04 $170.82 $290.39

Kaiser N. CA HMO $72.38 $159.23 $137.52 $231.61

Kaiser HI HMO $65.43 $130.86 $117.77 $196.29

Delta Dental PPO $0 $7.20 $12.68 $20.21

VSP Vision — Core $0 $0.37 $0.39 $1.07

VSP Vision — Buy-Up $3.13 $5.00 $5.10 $8.55

DID YOU KNOW?

VMware contributes money to your Health Savings Account if you enroll in the HSA PPO plan. Click here to learn about the HSA funding.

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WE ALL SHARE THE COST OF COVERAGEManaging healthcare costs is a shared responsibility and we appreciate your continued efforts to take care of your health and wellness, and to use healthcare resources wisely and cost-effectively. In 2018, VMware will continue to pay for a significant portion of your benefits.

You Pay WMware Pays

HSA PPO

Individual 0% 100%

Dependent(s) 19% 81%

Traditional PPO, Kaiser N. CA, & Kaiser HI

Individual 30% 70%

Dependent(s) 30% 70%

Vision (Core)

Individual 0% 100%

Dependent(s) 22% 78%

Dental

Individual 0% 100%

Dependent(s) 33% 67%

Before you make your health plan election, consider the benefits of the HSA PPO, and review the medical plan comparison chart and scenarios on the next few pages. Also check out Alex and the Aetna Cost Comparison tool! Learn more about these tools on Page 15.

Mimi Finkel Schulz, Global On-Site Events,

Palo Alto

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The HSA is administered by HealthEquity and may be used to offset your deductible as well as pay for eligible out-of-pocket healthcare expenses. Here are several reasons why you might choose to take advantage of the HSA:

• Triple-tax advantaged. The money you contribute goes in tax-free*, grows with interest tax-free, and comes out tax-free (as long as you use it to pay for eligible health care expenses).

• Watch it grow. Your unused funds roll over from year-to-year and grow with interest — tax-free. Think of your HSA as your long-term healthcare savings plan to pay for expenses as they come up or in the future.

• You own it. VMware’s contribution and your own HSA contributions are yours. You can take your account with you when you retire or leave VMware for any reason.

MAKING CONTRIBUTIONS TO THE HSAIn addition to the contributions from VMware, you can make your own pre-tax contributions to your HSA. Making contributions is easy:

• Make pre-tax contributions through payroll deductions (simply elect the amount you want to contribute during Open Enrollment).• Change your payroll contributions at any time.• Make post-tax contributions directly to HealthEquity online or by sending a check.• Make contributions any time after your HSA is open and until April 15 of the following calendar year.• HealthEquity makes it easy to manage your account. You will receive a debit card and can access and manage your balance

online at www.healthequity.com/ed/VMware.• Remember, VMware’s HSA contribution counts towards the 2018 maximum IRS HSA limit of $3,450 (individual) or $6,900 (family).

If you are 55 years old or turning 55 in 2018 this limit is increased by $1,000.

YOU ARE ELIGIBLE TO ENROLL IN THE HSA IF YOU ARE:• Not covered under any other traditional health plan or Health Care FSA.• Not enrolled in Medicare or Tricare.• If you have a disability rating under a VA plan or are not currently receiving any health benefits from the Veterans Administration

(or have received any in the last three months).

* Employer and employee contributions to the HSA are tax-free for federal and most state taxes. However, HSA contributions are not tax deductible for AL, CA and NJ.

More about the Health Savings Account (HSA)

DID YOU KNOW?

The employee cost for Employee Only coverage on the HSA PPO plan is $0. Consider contributing this premium savings into your HSA.

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YOURS TO KEEPYour HSA is a personal savings account — you own your contributions and the contributions from VMware. If you leave VMware for any reason, you take the account with you. You can use this money to pay for eligible medical expenses for your lifetime.

More about the Health Savings Account (HSA) (continued)

DID YOU KNOW?

Alex and the Aetna Cost Comparison tool can assist in making the best plan selection for you and your family.

DID YOU KNOW?

The funds in your HSA roll over year to year and is not a “use it or lose it” account.

Cali Chin,Human Resources, Austin

NOT ELIGIBLE FOR THE HSA? WE’VE GOT YOU COVERED!If you are not eligible for an HSA, you can still enroll in the HSA PPO. When enrolling in your 2018 benefits, select “HSA PPO non-HSA Eligible”. For employees who enroll in the HSA PPO and are not HSA eligible, VMware will provide a taxable bonus equal to the HSA contribution ($750 individual / $1,500 family) for the same tier of coverage. In order to qualify for the taxable bonus, you will need to submit timely proof of coverage within 60 days. Examples of proof of coverage include:

• Medicare enrollment card• Your spouse’s medical plan enrollment information (health plan and/

or FSA)• Tricare coverage/enrollment card

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Medical Plan ComparisonsHSA PPO1 Traditional PPO1 Kaiser HMO

(N. CA only)Kaiser HMO

(HI only)In-Network Out-of-Network In-Network Out-of-Network

VMware HSA Contribution2

Individual: $750 / Family: $1,500 N/A N/A N/A

Annual Deductible Individual: $1,500 / Family: $3,000 Individual: $500 / Family: $1,500 None None

Out-of-Pocket (OOP) Maximum3

Individual: $2,500 Family: $5,000

Individual: $6,000 Family: $12,000

Individual: $2,350 Family: $7,050

Individual: $6,250 Family: $18,750

Individual: $1,500 Family: $3,000

Individual: $2,500 Family: $7,500

Employee Coinsurance

10% after deductible 30% of UCR4, after deductible

10% after deductible 30% of UCR4, after deductible

Applies to certain medical procedures only

Applies to certain medical procedures only

Preventive Care (Annual Physicals, Well Care Exams)

100% covered, not subject to deductible

30% of UCR4,after deductible

100% covered, not subject to deductible

30% of UCR4, after deductible

100% covered, not subject to co-pay

100% covered, not subject to co-pay

Physician Visit 10% after deductible 30% of UCR4, after deductible

Primary Care: $20/visit Specialist: $30/visit

30% of UCR4, after deductible

$15/visit $15/visit

Lab and X-Ray 10% after deductible 30% of UCR4, after deductible

10% after deductible 30% of UCR4, after deductible

None if part of office visit

$10/day; 10% coin-surance for complex imaging

Emergency Room5 10% after deductible 10% of UCR4, after deductible

$100 co-pay, then 10%

$100 co-pay, then 10% of UCR4

$50/visit $50/visit

Ambulance 10% after deductible 30% of UCR4, after deductible

10% after deductible 30% of UCR4, after deductible

$50/trip 20% coinsurance

Hospitalization 10% after deductible 30% of UCR4, after deductible

10% after deductible 30% of UCR4, after deductible; $500/confinement deductible

$250 co-pay/admit 10%

Chiropractic Care 10% after deductible 30% after deductible $30 co-pay/visit 30% after deductible $15 co-pay/visit; up to 30 visits/year

$20 co-pay/visit; up to a combined 30 visits/year

Up to 20 visits/year Up to 20 visits/year

Acupuncture 10% after deductible 30% after deductible $30 co-pay 30% after deductible $15 co-pay/visit; referral is required

Up to 12 visits/year Up to 12 visits/year

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HSA PPO1 Traditional PPO1 Kaiser HMO(N. CA only)

Kaiser HMO(HI only)

In-Network Out-of-Network In-Network Out-of-Network

Speech Therapy5 10% after deductible 30% after deductible $30 co-pay/visit 30% after deductible $15 co-pay/visit; for covered cases

$15 co-pay/visit; for covered cases

Infertility/Fertility Preservation

50% after deduct-ible up to $10,000 lifetime max ($7,000/$3,000 for med/Rx)

Not covered 50% after deduct-ible up to $10,000 lifetime max ($7,000/$3,000 for med/Rx)

Not covered 50% coinsurance/ visit (does not in-clude GIFT, ZIFT, or IVF)7

$15/visit; 20% IVF (1 cycle/lifetime)

Prescription Drugs (Rx)

Retail (30-day supply)6 Generic/Brand/ Non Formulary

10%/15%/20% after deductible

50% after deductible 10%/25%/40% after deductible

50% after deductible $10/$20/$20 co-pay $10/$35/$35/$200 co-pay

Mail Order (90-day supply)6 Generic/Brand/ Non Formulary

10%/15%/20% after deductible

Not covered 10%/25%/40% after deductible

Not covered 100-day supply $20/$40/$40 co-pay

$20/$70/$70 co-pay/Not covered

1 Individual deductible and OOP maximum only apply to employees enrolled in employee only tier. Members in dependent tiers must satisfy the family deductibles and OOP maximums.2 All existing employees who switch from another health plan and enroll in the HSA PPO as of January 1, 2018 will receive employer contributions of $750/1,500 (Individual/Family). All new hires will receive employer contributions funded on a quarterly basis (divided by 4) based on coverage at end of each quarter and must be actively employed at end of each quarter. Interns are not eligible for VMware HSA contributions.3 Out-of-pocket maximum includes Prescription Rx for all plans.4 Usual, customary and reasonable charges.5 Available to those with conditions of medical necessity.6 Deductible waived for preventive medications.7 GIFT is a gamete intrafallopian transfer; ZIFT is a zygote intrafallopian transfer; IVF is in-vitro fertilization.

Medical Plan Comparisons (continued)

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An employee who uses network providers and has low utilization of services:

• 3 Primary Care Physician visits (non-preventive)• 4 Generic prescriptions• 2 Specialty prescriptions

Aetna HSA PPO1

Aetna Traditional

PPO2

Kaiser HMO (CA)

Annual Paycheck Contribution $0 $2,144 $1,377

Primary Care Visits (3) Generic Rx (4) Specialty Rx (2) Total Cost of Services

$450 $100 $200 $750

$60 $100 $200 $360

$45 $40 $40 $125

VMware Contribution to HSA $750 $0 $0

Total Annual Net Cost to You $0 $2,504 $1,502

1 HSA low utilization cost assumption based on: $150 per PCP visit, $25 per Generic Rx, $100 per Specialty Rx2 PPO low utilization prescription cost based on: $25 per Generic Rx, $100 per Specialty Rx

* Examples based on In-Network pricing and actual costs may vary

Medical Out-of-Pocket Comparison

1 EMPLOYEE ONLY, LOW UTILIZER

An employee who uses network providers and has high utilization of services:

• Reaches out-of-pocket max

Once Out of Pocket is met all expenses including Rx are covered at 100% in network.

Aetna HSA PPO

Aetna Traditional

PPO

Kaiser HMO (CA)

Annual Paycheck Contribution $0 $2,144 $1,377

Total Cost of Services $2,500 $2,350 $1,500

VMware Contribution to HSA $750 $0 $0

Total Annual Net Cost to You $1,750 $4,494 $2,877

2 EMPLOYEE ONLY, HIGH UTILIZER

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A fami ly that uses in network care and has low utilization of services

• 10 Primary Care Physician visits (non-preventive)• 12 Generic prescriptions• 8 Specialty prescriptions

Aetna HSA PPO1

Aetna Traditional

PPO2

Kaiser HMO (CA)

Annual Paycheck Contribution $2,334 $6,969 $5,559

Primary Care Visits (10) Generic Rx (12) Specialty Rx (8) Total Cost of Services

$1,500 $300 $800

$2,600

$200 $300 $800 $1,300

$150 $120 $160 $430

VMware Contribution to HSA $1,500 $0 $0

Total Annual Net Cost to You $3,434 $8,269 $5,989

1 HSA low utilization cost assumption based on: $150 per PCP visit, $25 per Generic Rx, $100 per Specialty Rx2 PPO low utilization prescription cost based on: $25 per Generic Rx, $100 per Specialty Rx

* Examples based on In-Network pricing and actual costs may vary

3 FAMILY, LOW UTILIZER

A fami ly that uses in network care and has high utilization of services

• Reaches out-of-pocket max

Once Out of Pocket is met all expenses including Rx are covered at 100% in network.

Aetna HSA PPO

Aetna Traditional

PPO

Kaiser HMO (CA)

Annual Paycheck Contribution $2,334 $6,969 $5,559

Total Cost of Services $5,000 $7,050 $3,000

VMware Contribution to HSA $1,500 $0 $0

Total Annual Net Cost to You $5,834 $14,019 $8,559

DID YOU KNOW?

Coinsurance coverage for prescription drugs on the HSA PPO are lower than the Traditional PPO for brand and specialty drugs? See Page 12

4 FAMILY, HIGH UTILIZER

Medical Out-of-Pocket Comparison (continued)

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Decision Support ToolsONLINE DECISION SUPPORT

If you want to see your own real-life scenario, Aetna offers an interactive tool that allows you to estimate your cost of coverage and out-of pocket costs. Using your total claims for 2017 as a starting point simply insert your expected healthcare needs and services for 2018. The tool will compare your costs between the HSA PPO and the Traditional PPO. You can use the tool regardless of your current health plan — even Kaiser participants can use it.

Go to: Aetna Decision Support

NEED MORE HELP?Meet Alex, your virtual benefits advisor. Alex will ask you questions about your personal situation, compare options and help you make decisions. You can meet Alex at www.myalex.com/VMware/2018

DID YOU KNOW?

VMware Perks grants you access to discounts on auto, home, pet insurance and much, much more.

DID YOU KNOW?

With the Limited Purpose FSA you can still benefit from tax savings on dental and vision expenses, even if enrolled in the HSA plan!

Rebecca McCathern’s dog Brody, Human Resources, Palo Alto

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Flexible Spending Accounts (FSAs)VMware provides General Purpose, Limited Purpose and Dependent Care FSAs, which allow you to save money by setting aside pre-tax dollars to pay for qualified medical expenses. All FSAs are administered by TRI-AD. If you have a FSA balance at the end of the calendar year in your General Purpose or Limited Purpose FSA, your balance, up to $500, will be rolled over into an FSA for next year. For a complete list of eligible and ineligible expenses set by the IRS see www.irs.gov/publications/p502.

GENERAL PURPOSE HEALTHCARE FSA (GPFSA)You can use the money in your GPFSA to pay for most healthcare expenses for you and your eligible dependents, including eligible services and supplies not covered by your medical, dental, or vision plans. When you receive care or fill a prescription, you can use your debit card. Or you can just pay out of pocket and file a claim online. You can contribute between $25 and $2,600 per plan year.

LIMITED PURPOSE HEALTHCARE FSA (LPFSA — FOR HSA ENROLLEES)This plan allows you to pay for qualified out-of-pocket dental and/or vision expenses. Due to IRS regulations, out-of-pocket medical and prescription drug healthcare expenses are not qualified expenses under the Limited Purpose FSA and can be reimbursed through your HSA only. You can contribute between $25 and $2,600 per plan year to the LPFSA.

DEPENDENT COVERAGE FSA (DCFSA)The Dependent Care FSA allows you to use tax free dollars to reimburse yourself for eligible expenses so that you and your spouse can work or go to school full-time. Eligible expenses include care for your child up to age 13 and adult daycare for elderly parent or disabled dependent incapable of self-care. You can contribute between $25 and $5,000 per plan year to the Dependent Care FSA. There is no rollover for the DCFSA; any funds left at the end of the year are forfeited.

FSA DEADLINESFor your claims to be reimbursed for the 2018 VMware plan year, here are the required dates for the Healthcare and the Dependent Care FSAs:

Expenses Must Be Incurred Through:

Expenses Must Be Submitted For Reimbursement By:

GPFSA, LPFSA and Dependent Care FSA December 31, 2018 March 31, 2019

If you were previously enrolled in the Aetna PPO and/or Kaiser plans and enroll in the HSA PPO plan in 2018, your FSA funds (up to $500) will rollover into a Limited Purpose FSA which covers dental and vision expenses.

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Health Savings and Spending Account ComparisonHSA Health FSA

Eligibility You must enroll in the HSA PPO to be eligible for the HSA.

General Purpose FSA (GPFSA) eligibility: If you enroll in the Traditional PPO, the Kaiser N. CA or HI HMO, or the HSA PPO non-HSA Eligible plan.

Limited Purpose FSA (LPFSA): If you enroll in the HSA PPO.

VMware Contributions1

Individual: $750 / Family: $1,500. No employer contributions.

Your Contributions

You may contribute any amount up to the maximum allowed by the IRS ($3,450 employee only, $6,900 for family)2. If you are age 55 or older, you can contribute up to an additional $1,000 per year.

GPFSA and LPFSA: You can contribute any amount between $25 and $2,600 annually.

Paying for Care

The HSA can be used to pay for eligible medical, prescription drug, dental and vision expenses. Or you can save the money in your account for future healthcare expenses.

GPFSA: Reimburses you for eligible medical, prescription drug, dental, and vision expenses.

LPFSA: Reimburses you for eligible dental and vision expenses.

Tax Savings No taxes on contributions.3

No taxes on withdrawals for eligible expenses.

No taxes on earnings from interest or investments.

No taxes on contributions.

No taxes on withdrawals for eligible expenses.

Do funds roll over?

Yes. Any funds left over in your HSA will roll over year-to-year. VMware’s contribution and your own HSA contributions are yours. You can take your account with you when you retire or leave VMware for any reason.

GPFSA and LPFSA: Unused funds will roll over but only up to $500.

Account Administration

HealthEquity is the account administrator. TRI-AD is the account administrator.

COMPARE SAVINGS AND SPENDING ACCOUNT OPTIONSVMware offers two types of health saving/spending account options: Health Savings Account (HSA) and Flexible Spending Account (FSA). Both help you pay for eligible medical, dental, vision and prescription drug expenses using pre-tax dollars. The type of health account you are eligible for depends on the medical plan that you elect. If you enroll in the HSA PPO, you can participate in the HSA and the Limited Purpose FSA (LPFSA). If you enroll in one of the other medical plans, you can participate in the General Purpose FSA (GPFSA).

1 All current employees who enroll in the HSA PPO as of January 1, 2018 will receive employer contributions of $750/$1,500 (Individual/Family). All 2018 new hires will receive quarterly contributions based on the first day of employment. Please visit the HSA page of the benefits site for more information on the funding schedule.2 IRS maximums include employer and employee contributions combined for the entire calendar year.3 Employer and employee contributions to the HSA are tax-free for federal and most state taxes. However, HSA contributions are not tax deductible for AL, CA and NJ.

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DentalVMware offers dental coverage through Delta Dental. Effective January 1, 2018 the annual dental maximum will increase from $1,500 to $2,000. There are two networks available: Delta Preferred Provider Organization (PPO) and Delta Premier. You may use any dental provider you choose, but you save when you use dentists within Delta Dental’s PPO network. Visit www.deltadentalins.com to see if your dentist is in-network.

Delta PPO Delta Premier Out-of-Network

Annual Deductible Individual: $50 / Family: $150

Annual Maximum Benefit

Non-Orthodontic Services per Individual: $2,000 Orthodontia Lifetime Maximum per Individual: $2,000

Preventive/ Diagnostic (exams, cleanings, fluoride, X-rays and sealants)

100% (no deductible)100% (no deductible), up to MPA1

100% (no deductible), up to MPA1

Basic Restorative (fillings, root canal, periodontics and oral surgery)

90% after deductible80% after deductible, up to MPA1

80% after deductible, up to MPA1

Major Restorative (crowns, bridges, dentures, partials, implants, etc.)

60% after deductible50% after deductible, up to MPA1

50% after deductible, up to MPA1

Orthodontia (for adults and children) 60% 50% of MPA1 50% of MPA1

1 Maximum Plan Allowance

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Scott Tilney’s dog Coco,Engineering, Palo Alto

DID YOU KNOW?

Dental premiums for Employee Only coverage are free.

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VMware offers vision coverage through Vision Service Plan (VSP). There are two plans to choose from: Core and Buy-Up. The Buy-Up Plan offers a higher level of benefits for lenses, contacts, and frames. To see if your vision provider is in-network, visit VSP.com.

VSP Core1 VSP Buy-Up Out-of-Network

Vision Exam (once every calendar year) $10 co-pay, then 100% $10 co-pay, then 100%

$10 co-pay, then plan reimburses up to $50

Lenses (once every calendar year)$25 co-pay, then plan pays:

100% for all types (no co-pay)

$25 co-pay for Core Plan2, then plan reimburses up to:

Single Vision 100% $50

Lined Bifocal 100% $75

Lined Trifocal 100% $100

Contact Lenses (once every calendar year, in lieu of lenses and frame)

Covered up to $120 allowance Covered up to $200 allowance Reimburses up to $105

Frames Covered up to $120 (once every 2 calendar years)

Covered up to $65 for Costco frames

Covered up to $200 (once every cal-endar year)

Covered up to $110 for Costco frames

Reimburses up to $70

Diabetic Eyecare Plus Program $20 for services related to diabetic eye disease

$20 for services related to diabetic eye disease

Not covered

1 Interns are only eligible for Core Vision.2 No co-pay for Buy-Up Plan.

GREAT NEWS!Employee Only paycheck contributions are free for Core Vision plans. There are no increases in premium contributions for other tiers of coverage. See Page 7 for all paycheck contributions.

DID YOU KNOW?

US Benefits has its very own SocialCast page. Follow us to learn about benefit updates, notices, webinars, and discounts.

Vision

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Basic Life and Accidental Death and Dismemberment (AD&D) InsuranceVMware provides you with Basic Life and AD&D insurance at no cost. You are automatically enrolled if you are a regular part time or regular full time employee and work a minimum of 30 hours per week.

This insurance, underwritten by Cigna, pays your designated beneficiary two times your annual base salary (to a maximum benefit of $1,000,000) upon your death. If you are a sales employee, the benefit pays two times your On Target Earnings (OTE) (to a maximum of $1,000,000)1. AD&D pays an additional benefit (two times your annual base salary to a maximum benefit of $1,000,000) to your beneficiary if you die, or pays a benefit to you if you suffer an injury due to a covered accident. Benefits for Life and AD&D are reduced to 65% at age 70 and to 50% at age 75.

1Company paid insurance over $50,000 is subject to imputed income

DON’T FORGET TO DESIGNATE YOUR BENEFICIARIES!Your beneficiary is the person who receives the Life Insurance and AD&D benefits if you die. Naming your beneficiary ensures the money will go to the right person. You can split up your benefit among more than one beneficiary, and you can change your beneficiaries at any time. You can also name a trust, charity or estate to receive your benefit. Designate your beneficiary at login.VMware.com/adp.

Tasha Easton,Global People Development, Palo Alto

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You can purchase additional life insurance coverage for yourself, your spouse/domestic partner and your dependent children up to age 26. Supplemental Life Insurance premiums are taken from your paycheck on an after-tax basis.

If you and your dependents apply during the initial enrollment period, or within 30 days after youare eligible to elect coverage, you can elect coverage up to the guaranteed issue amount without providing evidence of good health. Elected amounts over the guaranteed issue will require evidence of good health.

If you apply for coverage for yourself or your spouse more than 30 days from the date you become a VMware employee, the guaranteed issue amounts will not apply and you will berequired to provide evidence of good health.

Supplemental Life Insurance for yourself: Purchase up to a maximum of $1,500,000 or five times your basic annual earnings (whichever is less) in $10,000 increments. If enrolling during your initial enrollment period, Evidence of Insurability (EOI) is required for amounts over $500,000 (guaranteed issue amount). If enrolling for coverage after your initial enrollment period then EOI is required on all Supplemental Life amounts.

Supplemental Life Insurance for your spouse or domestic partner: Purchase in $5,000 increments up to $250,000 or 50% of your Supplemental Life (whichever is less). If enrolling during the initial enrollment period, Evidence of Insurability (EOI) is required for amounts over $100,000 (guaranteed issue amount). If enrolling for coverage after your initial enrollment period then EOI is required on all supplemental life amounts. You will automatically be the beneficiary on your spouse or domestic partner’s supplemental life insurance.

Supplemental Life Insurance for your dependent children: Purchase in increments of $1,000, $2,000, $5,000 or $10,000.

Supplemental Life InsuranceEmployee and Spouse/

Domestic Partner Supplemental Life

Insurance

Cost per $1,000 of coverage

Age as of birthday

Per Paycheck Premium

Under 30 $0.038

30 – 34 $0.054

35 – 39 $0.074

40 – 44 $0.091

45 – 49 $0.140

50 – 54 $0.252

55 – 59 $0.483

60 – 64 $0.630

65 – 69 $1.165

70+ $1.890

Child(ren) Supplemental Life Insurance

Option Per Paycheck Premium

$ 1,000 $0.099

$ 2,000 $0.198

$ 5,000 $0.495

$10,000 $0.990

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Short and Long Term DisabilityVMware provides Short Term and Long Term Disability insurance coverage to you at no cost to you. Short Term and Long Term Disability benefits replace a portion of your base pay or On Target Earnings (OTE) for sales employees, if you become ill, injured or disabled and are unable to work. These plans provide you valuable income protection and can help you and your dependents when you truly need it.

SHORT TERM DISABILITY (STD)Short Term Disability (STD) provides wage replacement benefits of 70% of pay per week, offset by any state mandated disability plans or Workers’ Compensation, for your certified medical disability. Benefits begin after seven days following your injury or illness. During the waiting period, five business days of accrued Sick Time must be used. STD covers a maximum payment period of 25 weeks. The disability benefits you receive under the plan are taxable.

LONG TERM DISABILITY (LTD)The Long Term Disability (LTD) benefit is provided through Cigna and coverage begins on the date your STD payments end, or 180 days following your injury or illness. LTD provides a benefit equal to 60% of your monthly income. The minimum monthly benefit is $100 or 10% of your gross disability payment, whichever is more. The maximum monthly benefit is $15,000. The disability benefits you receive under the LTD plan are taxable. If you choose, you can pay taxes on the company paid premiums, so that disability benefits you receive are tax-free.

DID YOU KNOW?

You can pay the taxes on the company paid premiums, so that the STD and/or LTD benefits you receive will be tax free. For this option, select the appropriate box during the enrollment process.

CA VMware employees automatically receive a tax free benefit under the VMware Voluntary Disability plan. CA Nicira employees automatically receive a tax free benefit under the CA State Disability plan.

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Work/Life BenefitsARAG GROUP LEGALARAG Group Legal is a voluntary plan which provides legal representation through a network of attorneys for a variety of services including: will preparation, neighbor disputes, buying a home, traffic tickets, and much more. You have access to online legal tools and resources as well.

When using an attorney in the ARAG network, benefits are paid at 100%. Please review eligible services as some may be limited or excluded. For more information, go to www.ARAGLegalCenter.com.

You can purchase the ARAG Group Legal Plan for $6.53 per paycheck on an after-tax basis.

EMPLOYEE ASSISTANCE PROGRAM (EAP)EAP services are provided at no cost to you. CONCERN provides up to five free confidential counseling visits per incident for you and your immediate family members. Counseling services include a broad range of issues, including:

CONCERN also provides up to ten free counseling sessions for substance and alcohol abuse.

You can contact CONCERN 24 hours a day, seven days a week at 1-800-344-4222. CONCERN 24 also has a website where you have access to work-life resources and referral information. Visit the EAP CONCERN website.

RETHINKVMware offers employees access to Rethink’s award-winning, research-based program which provides support to parents raising children with learning or behavior challenges, or developmental disabilities. Parents receive free, live tele-consultations with behavioral health experts to answer questions, and provide guidance and resources. Common tele-consultation topics include:

• Marital and family problems• Emotional distress• Parenting and childcare referrals

• Financial consultations• Legal consultations• Eldercare resources

• Teaching new skills• Addressing problem behaviors at home• Troubleshooting lack of progress

• Collaborating with school and other providers Visit: VMware.rethinkbenefits.com

DID YOU KNOW?

You must update your elections for the FSA and HSA every year.

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“When most people would be going back to work, I was actually just getting home and learning how to be a mom! Once she was home I was able to spend the remainder of my Paid Parental Leave with her and take her to all of her follow-up doctor appointments. I am so fortunate for this leave and the bond it allowed me to build with my daughter. ”

Betsy Marshall,Accounting, Florida

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Step 1: Prepare — This is your once a year opportunity to make changes to your benefit elections. All changes take effect January 1, 2018 and are binding for the 2018 plan year unless you experience a qualified life event.

• Read this guide and understand the changes for 2018.

• Consider how your health and coverage needs may be different for 2018.

Step 2: Decide — There are plenty of tools and resources to help you (see the next page for links).

• Talk to Alex (your virtual benefit advisor) for decision-making support.

• Use Aetna’s interactive Cost Comparison Tool to see the cost of coverage across medical plans.

• Learn how the HSA PPO works.

• Plan to attend an Open Enrollment webinar and a webinar on Health Savings Accounts (HSA). Watch for email invites. A recorded version will be available on the Benefits website.

• Visit HealthEquity’s website for information and resources for managing your HSA account.

Step 3: Enroll• To enroll in benefits, visit login.VMware.com/adp and

click on the Benefits Enrollment icon on the right side of the page. Enrollment begins October 23, 2017.

• Remember: Even though premiums for employee only

coverage in the HSA PPO, dental, and vision plans are free ($0 cost to you), you still need to enroll in the plan to be covered.

• Print out a summary PDF and review your changes to make sure they reflect your elections for 2018.

• No changes will be allowed after November 3, 2017 5:00 p.m. PST or 8:00 p.m. EST

Step 4: Manage your health and benefit dollars year-round• You will receive a new ID card in January if you select a

new medical plan and enroll new dependents. Use the Aetna mobile app to download a copy of your card to your smartphone.

• You will not receive ID cards for dental or vision coverage. Visit the Delta Dental & VSP sites to search in-network providers

• Bookmark the US Benefits website at benefits.VMware.com on your web browser so it’s handy—and make the most of your VMware benefits.

• Bookmark Benefits: US Socialcast to keep up-to-date on benefit updates throughout the year.

DID YOU KNOW?

If you have a Life event in 2017 during or after Open Enrollment has ended, you must complete your Life Event change first, and and then complete your Open Enrollment. Your initial Open Enrollment elections will not carry over.

My Enrollment Checklist

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NEED HELP ALONG THE WAY?

Visit the US Benefits website at benefits.VMware.com for detailed information, contacts, and resources to ensure you make the most out of your VMware benefits.

Contact hrbenefitadmin@VMware.com or 1-888-VMware8, option “US Benefits”, Monday through Friday, from 5 a.m. to 5 p.m. PST or 8 a.m to 8 p.m. EST.

DON’T FORGET!Open Enrollment will go from October 23 – November 3, 2017. After November 3, you will NOT be able to enroll or change your elections unless you have a qualified life event (such as a birth or marriage). Elections made during this Open Enrollment will be effective on January 1, 2018.

If you do not enroll by 5 p.m. PST or 8 p.m. EST, November 3, 2017, your current benefit elections will carry over to the next plan year except for your FSA and HSA contribution elections.

My Enrollment Checklist (Continued)

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Tools & ResourcesChoosing a medical plan is an important decision—and sometimes it’s hard to know which plan is the best for your personal situation. The following tools can help:

VMware Benefits WebsiteProvides detailed information, contacts and resources to ensure you make the most out of your VMware benefits.

benefits.VMware.com

Benefits Advisor ToolAn interactive educational and decision-support tool that provides easy-to-understand guidance on selecting a medical plan option.

www.myAlex.com/VMware/2018

HSA PPOOne-stop resource for information about the HSA PPO. Learn how the plan works.

www.aetnaVMware.com

Aetna Plan Selection and Cost Comparison Tool

An interactive decision-support tool that helps you esti-mate the cost of coverage and your out-of-pocket costs.

https://mobile.aetna.com/planSelect/kdw?id=871#_frmStart

HealthEquity Health Savings Account (HSA) Information and resources for managing your HSA. www.healthequity.com/ed/VMware/

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Qualified Life EventsYou may enroll in or make changes to your VMware benefit plans only during Open Enrollment. If you experience a qualified life event (e.g. marriage, divorce, birth, or adoption) you may be allowed to change your elections outside of the Open Enrollment period. If you experience a qualified life event, you must report the change to the VMware Benefits team within 30 days of the event in order to make changes to your current elections.

WHAT HAPPENS IF I DON’T ENROLL?If you do not enroll by November 3, 2017, your current benefit plan elections and coverage will carry over to next year. However, your FSA and HSA annual elections will NOT carry over unless you actively make new FSA and HSA elections.

DID YOU KNOW?

The Adoption Assistance Program also includes surrogacy coverage which reimburses 100% of eligible expenses associated with carrying and giving birth using a surrogate, up to a to-tal maximum of $5,000 per child. Visit the Benefits Site for additional information on eligible expenses and lifetime maximums.

Alaree Malone, Quality Engineer, Atlanta

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“I have very much enjoyed my parental leave and found it convenient to be able to split it up for different times of the year. This made it easier to schedule care for the little one between my wife, my in-laws, and myself Also, our provider, Sedgwick, made it super easy to set up my second leave period via just a quick email to their customer rep.”

Richard Capatosto, Information Technology, Palo Alto

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Key Benefits TermsAnnual Deductible — The amount you must pay each year before the Plan begins to pay for covered healthcare expenses you use. With an aggregate family deductible, the health plan doesn’t begin paying for the healthcare expenses of anyone in the family until the entire family deductible has been met.

Aggregate Deductible — The health plan doesn't begin paying benefits until the entire family deductible has been met. Once the entirety of the family deductible has been met, by one family member or a combination of family members, then the cost sharing begins.

Appeal — Notifying an insurer of your disagreement with how they have/will cover your claim. An appeal most typically involves denials and payments after a procedure is complete, but an appeal can also be made during a pre-certification for a procedure or prescription. Insurers have an internal procedure to conduct an appeals process. You have the right to be informed of that process.

Coinsurance — The percentage of eligible health care expenses the Plan pays after you meet any required annual deductible. You are responsible for paying the remaining difference.

Copayments (Co-pay) — The fixed dollar amount you pay for certain services.

Evidence of Insurability (EOI) — An application process where you provide information on the condition of your health or your dependent’s health in order to be considered for life insurance coverage.

Family Coverage — Family coverage is defined as employee + one or more dependents (e.g., employee + spouse/domestic partner, employee + child (ren), employee + family).

Formulary — A list of prescription medications, usually brand-name, that an insurer will allow you to access. These medications are usually not as inexpensive as generic but will cost less than non-formulary medications.

Guaranteed Issue (GI) — Life insurance coverage that is guaranteed to be issued to applicants regardless of health status. Evidence of insurability (EOI) is not required.

Health Maintenance Organization (HMO) — A health insurance plan that limits coverage to care from doctors who work for or contract with the HMO. It generally won’t cover out-of-network care except in an emergency. An HMO usually requires you to live or work in its service area to be eligible for coverage. With an HMO plan, you must choose a Primary Care Physician (PCP) from a network of local healthcare providers who will refer you to in-network specialists or hospitals when necessary. All your care is coordinated through the PCP.

Health Savings Account (HSA) — A savings account used in conjunction with a high deductible health insurance policy that allows users to save money tax-free against medical expenses. HSAs can be used for out-of-pocket medical, dental, and vision expenses. HSA funds roll over and accumulate year to year if they are not spent.

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High Deductible Health Plan (HDHP) — A type of health plan with a deductible larger than what’s found in a traditional health plan. HDHP’s typically access the same PPO network as a traditional plan. In order to make contributions into an HSA, the IRS requires election into a plan with a deductible large enough to meet their requirements.

In-Network Provider — A provider who contracts with a health care plan to offer certain services at a discounted rate.

Out-of-Network Provider — A provider who does not have a contract with the health plan and can charge you over and above what is considered reasonable and customary.

Out-of-Pocket Maximum (OOPM) — The most you will pay out of your pocket in a year before the Plan begins paying 100% of eligible expenses including prescription drugs.

Premium Contributions — The amount deducted from your pay for the cost of benefits coverage. The amount deducted is based on which benefit plan and coverage level (employee only, employee + family, etc.) you elect. The amount is deducted on a semi-monthly basis (24 times a year).

PCP — Primary Care Physician

Preferred Provider Organization (PPO) — A managed care organization of medical doctors, hospitals, and other health care

providers who have agreed with an insurer to provide health care at reduced rates to the insurer’s clients. You generally do not need a referral from a primary care physician to see a specialist and some coverage is available for out-of-network care.

Preventive Care — Measures taken for disease prevention, as compared to a diagnosis or disease treatment. In most cases, in-network preventive care (e.g., screenings, immunizations, preventive medications) are covered at 100%.

Qualified Life Event — Open Enrollment is your once-a-year opportunity to update dependents unless you have a qualified life event, such as marriage, divorce, birth, adoption, death, court order (Qualified Medical Child Support Order), change to dependent coverage, or the loss or gain of benefits eligibility.

If you experience a qualified family status change you must report it to the VMware Benefits team within 30 days following the qualifying event.

Step Therapy — A process where an insurer requires a member try certain medications before agreeing to cover a medication that the member’s physician is trying to prescribe.

Usual, Customary and Reasonable (UCR) — The amount paid for a medical service in a geographic area based on what providers in the area usually charge for the same or similar medical service. The UCR amount is used to determine the allowed amount.

Key Benefits Terms (continued)

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Benefits ContactsTo access VMware Benefits, please go to benefits.VMware.com.

Benefit Plan Insurance Carrier Policy # Contact

HSA PPO (Aetna Choice POS II) (All States)

Aetna 307138 1-855-521-6853 www.aetna.com

24-Hour Nurseline: 1-800-556-1555

Health Equity HSA (All States)

HealthEquity 29020 1-866-296-2857 www.healthequity.com/ed/VMware/

Traditional PPO (Aetna Choice POS ll) (All States)

Aetna 307138 1-855-521-6853 www.aetna.com

24-Hour Nurseline: 1-800-556-1555

Telemedicine Teladoc 307138 1-855-Teladoc (835-2362) www.teladoc.com/Aetna

Kaiser N. CA HMO Kaiser Permanente

39501-0000 1-800-464-4000 www.kp.org

Kaiser HI HMO Kaiser Foundation Health Plan Inc. 09549-001-10 1-808-432-5955 www.kp.org

PRESCRIPTIONS

Retail (Aetna plans only) Mail (Aetna plans only)

Specialty Pharmacy

Aetna Pharmacy Management Aetna Rx Home Delivery Aetna Specialty Pharmacy

307138

307138

307138

1-888-792-3862

1-888-792-3862TDD: 1-800-823-6373 1-866-782-2779

Support for Neurodiversity Disabilities

Rethink N/A 1-877-988-8871 http://VMware.rethinkbenefits.com

Dental Delta Dental PPO 0422 1-800-765-6003 www.deltadentalins.com

Benefit Plan Insurance Carrier Policy # Contact

Vision Vision Service Plan (VSP) 12122074 1-800-877-7195 www.vsp.com

Short Term Disability Sedgwick CMS N/A 1-866-251-1749

Long Term Disability Cigna Group Insurance LK 961804 1-800-362-4462 www.cigna.com

Basic Life Cigna Group Insurance FLX 962455 1-800-423-1282 www.cigna.com

AD&D Cigna Group Insurance OK 964094 1-800-362-4462 www.cigna.com

Supplemental Life Cigna Group Insurance FLX 962456 1-800-423-1282 www.cigna.com

EAP CONCERN 988 1-800-344-4222 www.concern-eap.com

FSA TRI-AD VMware 1-888-844-1372 https://benefitscentral.tri-ad.com

Legal Plan ARAG 16121 1-800-247-4184 http://members.ARAGgroup.com/advisor

401(k) Retirement Fidelity Investments 75472 1-800-835-5095 www.401k.com

Back-up Care Program Bright Horizons Username: VMware Password: backup12

1-877-242-2737 www.backup.brighthorizons.com

VMware Perks Beneplace N/A 1-800-683-2886 www.beneplace.com/VMwareus

QUESTIONS?Contact your VMware Benefits team at 1-888-VMware8, option “US Benefits”, Monday through Friday, from 5 a.m. to 5 p.m. PST or 8 a.m. to 8 p.m EST.

Benefits Contacts (continued)

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