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 2 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 3 Emeriti’s Core Benefits Tax-advantaged Retiree Health Account Tax-free Reimbursement Benefit Flexible Group Health Insurance Options Ongoing Education and Information 4 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. 5 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 6 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 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 9 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 10 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. 11 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. 12 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. 13 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. 14 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. 15 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 16 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 17 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) 18 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 19 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. 20 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 21 Contacts Emeriti Christina Fendley Assistant Director, Implementation and Communications (845) 567-6666 Email: cfendley@emeritihealth.org New Windsor, NY TIAA-CREF Jim Dawson Client Services Consultant I Institutional Client Services 800-626-4717 Email: jdawson@tiaa-cref.org Denver, Colorado Emeriti Tutorial 22 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 Emeriti Tutorial 24 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: • Run online reports for your Emeriti VEBA Trust and Grantor Trust plans • View your employees' accumulations, allocations and contributions within your Emeriti plan(s) • 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. 25 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) Emeriti Tutorial 26 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. Emeriti Tutorial 27 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 Emeriti Tutorial 28 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 [emeritiadminstrator@tiaa-cref.org] and provide forfeiture direction When to apply forfeitures: • Coordinate with future remittance Emeriti Tutorial 29 www.emeritihealth.org Obtaining reports for Emeriti Plan on TIAA-CREF website Types of reports available for Emeriti Plan: • • • • • 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 Emeriti Tutorial 30 www.emeritihealth.org Contacts Emeriti Christina Fendley Assistant Director, Implementation and Communications (845) 567-6666, NY Email: cfendley@emeritihealth.org TIAA-CREF Jim Dawson Client Services Consultant I Institutional Client Services 800-626-4717, CO Email: jdawson@tiaa-cref.org Emeriti Tutorial 31 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. Emeriti Tutorial 32