Transcript THE EMERITI PROGRAM the sustainable solution to retiree

Kenyon College
THE EMERITI PROGRAM the sustainable solution to retiree health benefits
 Delivered through record keeping arrangements with TIAA-CREF and Savitz
 Supported by Aetna’s fully insured group health plans
This presentation is copyrighted © exclusively by Emeriti
An Integrated Partnership
Emeriti 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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Comprehensive Retirement Security
403 (b)
Retirement Plan
501 (c) (9) – VEBA
Retiree Health Plan
Accessible for general
retirement expenses
Dedicated to health-related
retirement expenses
Retiree income distribution is
taxable
Retiree health benefit
distributions are tax-free
Beneficiaries
Dependents
Assets passed to the estate
Assets passed on for mutual
benefit of the plan
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Emeriti’s Core Benefits
Tax-advantaged
Retiree Health Account
Tax-free
Reimbursement Benefit
Flexible
Group Health Insurance Options
Ongoing
Education and Information
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Delivery Model
Emeriti Core Benefits
Emeriti Insurance Options
Emeriti Trust Structure
Emeriti Health Accounts
VEBA Trusts
Employer Trust
Employee Trust
TIAA-CREF
proprietary mutual
funds
Grantor
Trust*
Selected nonproprietary mutual
funds
Medical Plans
Rx Plans
Dental Plan
Emeriti Reimbursement Benefit
• Employer contributions to the Grantor Trust can be used for
workforce management and transition strategies.
Eligible out-ofpocket medical
expenses
• Grantor Trust funds are restricted to fully insured products.
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Emeriti Investment Options in 2014
CORE - Required
TIAA-CREF Actively Managed Lifecycle Funds - Retirement Class
TIAA-CREF Money Market Fund
CORE PLUS – Kenyon has not elected any
Fixed Income
PTTAX
PIMCO Total Return
TIKRX
TIAA Inflation-Linked Bond
Balanced
OAKBX
Oakmark Equity & Income
Index Funds
VTSSX
Vanguard Total Stock Market Index Fund Signal
VTSGX
Vanguard Total International Stock Signal
Actively Managed Equity Funds
TRSCX
TIAA Social Choice
RFNEX
American Funds Fundamental
Investors R4
REREX
American Funds EuroPacific
Growth R4
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Emeriti Health Accounts
Tax Treatment
Source
Trust**
Emeriti Plan Contributions
Earnings
Payout
Employer
Employer
VEBA
Required
Pre-tax
Tax-free
Tax-free
Employee
Voluntary*
Employee
VEBA
Strongly
Encouraged
After-tax
Tax free
Tax free
Employer
Grantor Trust
Optional
Pre-tax
Tax-free
Tax-free
* Employee Voluntary contributions can be funded in a variety of ways.
** Services provided by TIAA-CREF Trust Company as directed trustee.
NOTE: By comparison to Emeriti’s 501(c) 9 welfare plan, distributions from 403(b) retirement
plans are taxable and do not confer guaranteed access to health care benefits.
Special Contributions to the Grantor Trust
Available exclusively to pay for fully insured benefits
PAYER
EMPLOYER ONLY
CONTRIBUTION
EARNINGS
PAYOUT
Pre-tax
Tax-free
Tax-free
Workforce Management Flexibilities
 Eligibility and contribution amounts at discretion of institution*
 Retirement Incentives
 Retention Opportunities
 Recruitment Strategies
 Special Transition Contributions
NOTE: These special employer contributions may be made in any amount, to any individual within classes eligible for VEBA.
Emeriti Reimbursement Benefit
Tax-Free Reimbursement of Out-of-Pocket Medical Expenses
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Pre-65 and COBRA premiums
Supplemental insurance cost shares
Medicare premiums and cost shares
Vision, dental, hearing care
Over-the-counter drugs (prescription required)
Long-term care insurance or related nursing or in-home health care services
Other post-65 insurance premiums (if Emeriti group coverage is not elected by the participant)
Two reimbursement methods:
Residual balance stays in the participant’s account at year end and has the opportunity to grow
tax free for future use.
NOTE: A wide range of health care expenses apply for tax-free reimbursement as long as
they satisfy the requirements of Section 213(d) of the IRS Code.
• Rx Debit Card
• Manual Claims Processing
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Who Can Use the Reimbursement Benefit
Available for You & Your Dependents
Participant’s dependents include:
Spouse (pre- or post-65)
Same sex and opposite sex domestic partner (pre- or post-65)
Dependent children (before majority)
Permanently disabled children
Dependent relatives
Consult your summary plan description for details
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Reimbursement Benefits at Work
For expenses incurred after termination
Manually submit claims to Savitz:
• Mail
• Fax
• Upload through Participant Benefits Dashboard
(MyEmeritiBenefits.org)
Rx Debit Card Available to Institution; currently not
elected.
Reimbursement Benefits will be paid from participant’s balance in the Money Market Fund.
Participants may transfer lump-sum amounts or set-up monthly systematic transfers in
amounts of $100 or more.
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Emeriti Post-65 Group Health Insurance
Post-65 Plans Build on the Foundation of Medicare
Portable, nationwide access
Annual choice among plans
Catastrophic protection
Guaranteed issue group health insurance coverage
Prescription (Part D approved) drug coverage
Foreign urgent or emergency care*
Preventive care*
Pre-65 coverage
options available
*Depending on plan chosen.
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Emeriti Insurance Choices for 2014
Five Group Medical Plans*
One Medicare coordination plan
Two Medicare supplemental plans (availability based on state approval)
Two Medicare Advantage PPO (Extended Service Area (ESA) available for
geographical areas outside Aetna’s network)
Three Rx Plans**
Rx High Plan – continuing coverage in coverage gap
Rx Mid Plan – generic coverage only in coverage gap
Rx Low Plan – no coverage in coverage gap
One Dental Plan*
One dental plan
* Availability based on state approval.
** The Rx Mid-High Plan is a grandfathered plan and is closed to new entrants.
PLEASE NOTE: Emeriti will offer Aetna Group Medicare Supplement Insurance (GMS)
Plans to retirees living in Florida.
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How Do You Access Medicare and Emeriti Health Insurance
After age 65
When you retire
After enrollment
in Medicare Parts A & B
NOTE: Consult your Summary Plan Description for details.
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Who Can Use Emeriti Health Insurance
Available for Participant & Dependents
Participant’s dependents include:
Spouse (pre- or post-65)
Same sex and opposite sex domestic partner (pre- or post-65)
plan*
Dependent children (before majority)
Permanently disabled children**
As of 1/1/2014 Post-65 retiree and their dependents may enroll in
different plans
NOTE: The employer’s plan establishes specific rules for vesting in the Emeriti account
balance and retirement eligibility for the Emeriti insurance.
*Independent domestic partners pay for insurance outside of the Health Account.
**Determination of permanent disability also confers access to post-65 insurance for these
individuals. Disability must occur before majority.
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How are Insurance Premiums Paid?
Paid through Emeriti Health Account if
participant has sufficient funds, as follows:
1. Grantor Trust
2. Employer VEBA
3. Employee VEBA
4. ACH
If no Health Account funds, payment is made
from ACH withdrawals after institutional
premium subsidy, if applicable
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Emeriti Plan Design: Kenyon College Provisions
 Definition of eligible participant and dependents
• All benefit eligible employees age 21 and older eligible to make
voluntary contributions
 Vesting (access to employer contributions)
• 10 years of service at time of termination
 Definition of retirement eligibility (access to Emeriti group insurance)
• Age 59 1/2 with 10 years of service at time of termination
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Emeriti Plan Design
 Employer funding levels
• Annual contribution in the amount of $955 into VEBA Trust
• Leaves of Absence (no contributions for those on unpaid leaves of
absence)
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Emeriti Plan Design
 Employee contribution options
• Permitted by institution
 Starting age for employer funding
• Age 35
 Employer funding period
• Employer contributions continue for 25 years or upon death,
termination or retirement, whichever comes first
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Emeriti Plan Design
 Forfeitures (upon termination without vesting or upon death of last
surviving eligible dependent)
• Attributable to employer dollars, offset future employer plan costs
 Monthly Program Fees:
• Emeriti’s $5 monthly fee taken from accounts for active employees
• Savitz $1.00 monthly fee for active employees and $6.00 for retirees
and terminated taken from accounts
• TIAA-CREF $0.67 monthly fee for active employees and
retirees/terminated employees taken from accounts
The monthly Emeriti fees for active employees, retired, terminated, disabled, and deceased employees
are swept from participant accounts the last week of each month.
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Participant Communications
Emeriti Service Center
1-866-EMERITI (1-866-363-7484)
Emeriti Benefits Dashboard
At-a-glance benefits web site
MyEmeritiBenefits.org
Emeriti Enrollment Kits
Mailed to residence
Emeriti Workshops
Scheduled annually on campus
Emeriti Website
EmeritiHealth.org
Emeriti Life Stage Communications
Various Media
Quarterly Statements:
Print or electronic options
TIAA-CREF Investment Microsite
Plan level fund information
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Contacts
Emeriti
Christina Fendley
Assistant Director, Implementation and Communications
 (845) 567-6666
Email: [email protected]
New Windsor, NY
TIAA-CREF
Jim Dawson
Client Services Consultant I Institutional Client Services
 800-626-4717
Email: [email protected]
Denver, Colorado
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Emeriti Tutorial
Emeriti Program TIAA-CREF Remittance Process
for Kenyon College
For Plan Sponsor Use Only
Understanding status codes and money sources
Employee Status Codes and Descriptions:
N - Active status of eligible participant without a contribution
0 - Participant Voluntary Contributions (to Employee VEBA)
1 - Employer Contribution (to Employer VEBA or to Grantor Trust)
V– Terminated – eligible for Reimbursement Benefit only (with EE assets, and ER contributions, if vested)
4 – Retired – met eligibility for Emeriti Health Insurance
6 - Death
F – Surviving (Eligible Dependent)
5 - Disabled
L - Leave of Absence
3 - Military Leave
•Please Note: Each participant will have only one status code reported on the file; files with new status codes will
override any prior status code that were submitted
Money Source Coding and Descriptions:
VEBA TRUSTS
Source F - Employer
Source K – Employee After Tax Contribution
Source D - ER- Insurance Subsidy
GRANTOR TRUST
Source F - Employer
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www.emeritihealth.org
TIAA-CREF Plan Administrator Website
Getting Access for New Plan Administrators
You can register new plan administrators for Secure Access to the TIAA-CREF Plan Administrator website where important
tasks can be completed in an environment that is secure, fast and easy to use.
To add a new plan administrator –within TIAA-CREF Plan Focus Website.
Section One – Confirming users
Go to the “Plans” section of the website. Then, click “Add New Site User” under “Site Access.”
Section Two- Making Changes
Enter the new user’s name and email address and select their user type, either Plan Administrator or Auditor. Then, click “Next” to
continue.
Section Three – Adding new users
Add new user’s personal information
* Please refer to TIAA-CREF- Plan Focus – User Access Guide Sheet and Point lead contact for quick review process.
Through Secure Access, you will be able to:
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Run online reports for your Emeriti VEBA Trust and Grantor Trust plans
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View your employees' accumulations, allocations and contributions within your Emeriti plan(s)
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Send secure emails to TIAA-CREF about your Emeriti plan(s)
Please note: hire dates, termination dates, participant enrollment and vesting may not be updated through the Plan Administrator Site
for your Emeriti Plan.
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www.emeritihealth.org
Updating data
Defining changes:
•New hire
•Termination – may be eligible for Reimbursement Benefit, but not eligible for
Emeriti insurance
•Retired – met institution’s retirement criteria for Emeriti Health Insurance;
automatically eligible for Reimbursement Benefit
•Leave of absence
•Military leave
•Deceased
Where to apply changes:
• Remittance File.
When to apply changes:
• Apply to your next file remittance (bi-weekly)
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www.emeritihealth.org
Making contribution remittances
How to remit and fund contributions:
Submit Employer VEBA contributions for actives and identify the distinct source codes
When to remit contributions:
• Currently bi-weekly
Good Order Letter process:
•File is scrubbed w/in TIAA; individual processor informs plan sponsor that data is In
Good Order (IGO), and gives institution the go ahead to remit funds.
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www.emeritihealth.org
Applying termination retirement status codes and dates
Where to apply termination and retirement status codes:
REMITTANCE FILE
Where to apply termination and retirement dates:
REMITTANCE FILE
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www.emeritihealth.org
Processing forfeitures
Where to get forfeiture information:
• TIAA-CREF sends out a forfeiture report at the beginning of each month
• Plan Sponsor can generate a report on the TIAA-CREF plan administrator
website
How to apply forfeiture to institution’s plan:
•Send Jim Dawson or [[email protected]] and
provide forfeiture direction
When to apply forfeitures:
• Coordinate with future remittance
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www.emeritihealth.org
Obtaining reports for Emeriti Plan on TIAA-CREF website
Types of reports available for Emeriti Plan:
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Source Plan balance (individual balance report also available)
Distributions
Contributions
Non-premium transaction report (fees)
Forfeitures
How to obtain reports:
• Under reporting section of the TIAA-CREF Plan Focus website:
www.tiaa-cref.org
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www.emeritihealth.org
Contacts
Emeriti
Christina Fendley
Assistant Director, Implementation and Communications
 (845) 567-6666, NY
Email: [email protected]
TIAA-CREF
Jim Dawson
Client Services Consultant I Institutional Client Services
 800-626-4717, CO
Email: [email protected]
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Disclosures
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.
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