Transcript THE EMERITI PROGRAM - Gettysburg College

2013 Benefits
THE EMERITI PROGRAM during your working years
Saving for Health Care Expenses in Retirement
This presentation is copyrighted © exclusively by Emeriti
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Your Institution’s Commitment
Your Institution is:
Giving you a tax-free way to pay your health care expenses in retirement
Providing access to group health insurance when you retire
Keeping you informed about retiree health care issues along the way
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Emeriti’s Core Benefit Components
Emeriti Health
Accounts
• Tax-advantaged savings and
investment vehicle, via VEBA
Trusts, for payment of future
medical expenses in retirement
Emeriti Health
Insurance
• Portable group retiree health
insurance options building on the
foundation of Medicare
Emeriti
Reimbursement
Benefits
• Tax-free reimbursement of other
qualified medical expenses not
covered by Medicare or Emeriti
insurance options
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Emeriti’s Service Providers
Emeriti
TIAACREF
Accumulation
Recordkeeping
Trust Services
Investment
Management
Proprietary
Mutual Funds
Non
Proprietary
Mutual Funds
Savitz
Aetna
HealthPartners
Disbursement
Recordkeeping
Retiree Health
Plans
Retiree Health
Plans
Qualifying
Medical
Expenses
Insurance
Premiums
Debit Card
Manual Claims
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Tax Advantages of Emeriti Health Accounts
Contributions and earnings disbursed tax free during retirement
CONTRIBUTIONS DURING
WORKING YEARS
INVESTMENTS
You Make After-tax Voluntary Contributions
Your Institution Makes Tax-free Employer
Contributions*
Your Assets Accumulate Tax-Free
DISBURSEMENTS DURING
RETIREMENT
You Receive Tax-Free
Emeriti Reimbursement Benefits
You Pay for Emeriti Health
Insurance Premiums Tax-Free
*Begins at a pre-designated age. See your Summary Plan Description or talk to your benefits administrator.
Your institution may make additional pre-tax contributions in lieu of salary or other benefits.
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Investment Options in 2013
TIAA-CREF
Lifecycle Funds
(Retirement Class)
• Lifecycle funds
• Asset diversification among asset classes
• Automatic rebalancing
CORE
FUNDS
TIAA-CREF
Money Market Fund
(Retirement Class)
CORE
PLUS
FUNDS
Additional Mutual
Funds – based on
institution’s election
• A money market mutual fund
• Seeks to assure the value of your investment at $1
per share
• Some TIAA-CREF proprietary funds
• Some non-proprietary funds from other mutual
fund families
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Why You Need to Save
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Medicare is Not Enough
Other
14%*
Out-ofPocket
13%
Medicare
59%
Private
Insurance
14%
Source: EBRI estimates from the 2009 Medical Expenditure Panel Survey.
*VA, Tricare, other private, Medicaid, other.
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How Medicare Works
Part A (Hospital) and Part
B (Medical)
Original Medicare
• Medicare provides these coverages
• You have your choice of doctors & providers
Part C
Medicare Advantage, PPO Plan
• Private insurers approved by Medicare provide
Parts A & B coverage
• You may get extra benefits
Part D
Prescription Drug
• Private insurers approved by Medicare provide coverage
• Different plans cover different drugs at different levels
• You can choose from a range of plan designs
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What Are You Saving For?
Medicare
•
•
•
•
•
Part A deductible
Part B deductible
Part B premium
Part D deductible
Part D Coverage Gap
cost share
• Part D Catastrophic
Threshold cost share
Supplemental
Insurance
• Premiums
• Deductibles
• Co-pays and coinsurance
Out-of-Pocket
Expenses
•
•
•
•
•
Vision
Hearing
Medical equipment
Long-term care
In-home health care
Note: Higher-income retirees may pay a higher Part B premium
and may also be subject to a Part D premium
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Keep This In Mind
As Medicare cost shares are
increasingly indexed to income and
taxes remain uncertain, tax diversity
in retirement is key.
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Save Early and Consistently
The power of compounding
Potential account earnings
Contributions
Just by saving $100 monthly
$300,000
Total:
$264,012
$216,012
$250,000
$200,000
Total:
$122,709
$150,000
$86,709
SAVINGS
$100,000
$50,000
Total:
$17,409
Total:
$52,397
$28,397
$5,409
$0
YEARS OF SAVING
$12,000
$24,000
$36,000
$48,000
10
20
30
40
These examples are intended for illustrative purposes and are not a prediction of investment results. Your own Plan account may earn more or less than this example. Actual account balances will be
determined by the contributions made and any investment gains or losses. Investing in this manner does not ensure a profit or guarantee against loss in declining markets. These examples do not take fees
into account and actual balances will generally be reduced by fees. Contributions and earnings accrue tax-free and are paid out tax-free for reimbursement of qualified health expenses. These examples are
based on $100 contributions made at the beginning of each month and a 7% annual rate of return compounded monthly. Chart balances shown are end-of-year balances.
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Tax Diversity in Retirement in Action
$1,000
medical
bill!
Pay with Emeriti
Health Account
Tax-free withdrawal of
Pay with 403(b)
Retirement Plan
Taxable withdrawal of
approximately
$1,400
72 cents on the dollar
in 28% federal income tax bracket
$1,000
100 cents on the dollar
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Your Next Steps
Contact your benefits administrator to begin payroll
deferred voluntary contributions
Keep an eye out for Emeriti’s life stage
communications
Visit EmeritiHealth.org
Register on the Emeriti Benefits Dashboard at
MyEmeritiBenefits.org
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Emeriti Program Fees
Your employer may cover all or some portion of the service fees. Check with
your institution’s benefit administrator if you are uncertain.
Monthly Participant Fees
Fees
Actives
Retirees*
Emeriti
$5.00
$5.00
TIAA-CREF
$ .67
$ .67
Savitz
$1.00
$6.00
Investment management fees are variable by selected mutual funds (see prospectuses)
*Also applies to vested terminated employees
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Call toll-free:
1-866-EMERITI
(1-866-363-7484)
Monday – Friday
9:00AM to 5:30PM (ET)
Scheduled annually on
campus, these
workshops provide you
with details about your
Emeriti Health Account,
Insurance Plan Options,
and the Emeriti
Reimbursement Benefit.
Two different print and
electronic statements
that detail your Health
Account investments, as
well as your Health
Insurance and
Reimbursement Benefit
transactions.
WAYS TO GET
MORE INFORMATION
An at-a-glance benefits
website with access to
information about your
Emeriti Health Account
balances, Health Insurance
Plan Options, and
Reimbursement Benefit
transactions.
Using TIAA-CREFs secure
website, you can check your
Emeriti Health Account
balance any time.
Visit tiaa-cref.org to log in.
MyEmeritiBenefits.org.
The Emeriti website
contains information
about each component
of the Program, as well
as Medicare update, the
QME form, a premium
rate guide, and other
important information.
An easy-to-use online
resource for benefits and
health information.
Check your insurance
claims, find a doctor,
order prescriptions
online, and access
information about
eligible health expenses.
Visit EmeritiHealth.org.
Visit EmeritiHealth.org
and click on the Online
Participant Services
button.
As you near age 65, Emeriti
mails insurance age-in
retirement kit to your
home. You may also request
a kit at any time.
Once you are enrolled,
retiree annual insurance
enrollment kits are also
mailed to your residence.
Various materials to
inform and educate you
about the Emeriti
Program throughout your
working years and into
retirement.
A Plan-level microsite for
you to access investment
information, including
prospectuses, fund fact
sheets, and performance
reports.
This Program feature is
currently in development.
Details forthcoming.
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Emeriti Service Center
1-866-Emeriti
Thank you for calling Emeriti
Please listen carefully, as our menu has changed.
YOU WILL HAVE 3 CHOICES
For questions about
the Emeriti
Reimbursement
Benefit, press 2
For information about
Annual Enrollment and
questions about Emeriti
Health Insurance, press 1
For
assistance
with Annual
Enrollment,
press 1
To speak with an Aetna or
HealthPartners representative
about your benefits or an existing
insurance claim, press 2
Savitz Rep
For questions about
Emeriti Health Account
balances and investments,
press 3
TIAA-CREF Rep
Press 1 for an Aetna
representative, press 2 for a
HealthPartners representative
Savitz
Rep
Aetna Rep
HP Rep
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TIAA-CREF Quarterly Statement
Savitz Quarterly Statement – when you terminate
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TIAA-CREF.org
Online Account Details
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View Health Account, Health Insurance,
and Reimbursement
Benefit Information
Register
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Emeriti Retirement Health Solutions provided this information and is responsible for its content.
Emeriti, TIAA-CREF, Savitz, Aetna Life Insurance Company, and HealthPartners are independent corporations
and are not legally affiliated.
The retirement healthcare program is offered by the employer. Teachers Insurance and Annuity Association (TIAA) will provide services
to the plan and make available investment options. TIAA-CREF Trust Company, FSB provides investment management and trust services.
Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.
Summary Plan Description (SPD)
This presentation is intended to provide you with a brief summary of some of the details of your Employer’s Emeriti Plan and the Emeriti
Program. For a full summary of the terms of your Employer’s Emeriti Plan you must consult the SPD, which will be provided to you upon
enrollment or upon request.
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Investment Adviser Status
Emeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options for the Emeriti Program, selecting the
investment manager for employer and voluntary employee contributions, and providing these and other impersonal educational materials to plan participants. Emeriti
does not provide advice to participants about their individual investment selections.
The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities under
various state securities laws. The offering of these Interests is subject to compliance with any applicable state law. For residents of Georgia, the Interests are being
offered in reliance on paragraph 13 of Code Section 10-5-9 of the Georgia Securities Act of 1973, as amended (the “Georgia Act”). The Interests may not be sold or
transferred except in a transaction which is exempt under the Georgia Act or pursuant to an effective registration under the Georgia Act.
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