During Your Working Years
Your Institution’s
Retirement Health Plan
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Start Asking Questions
Is my pension
enough?
Will I need
additional
insurance?
How much
should I save?
What does
Medicare
cover?
2
Medicare Coverage & Costs
Medicare is
Not Enough
Is Medicare
Enough?
Medicare covers only about 62%
of total healthcare expenses in
retirement.*
62%
Medicare is the
primary payer, but
retirees also need
supplemental health
insurance
*Source: National Institute on Aging, Newsroom, Dramatic changes in U.S. highlighted in new census, NIH report, June 26, 2013.
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Medicare Expenses in
Retirement Add Up
Part A - Hospital
Part B - Doctor
Annual deductible, copays &
Annual premiums, copays &
coinsurance
coinsurance
Part C – Medicare
Advantage
Part D – Rx
Annual premium, copays &
deductible, copays, coinsurance,
coinsurance
Coverage Gap cost shares
Annual premium (higher income),
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Healthcare Expenses in
Retirement Add Up
Long-term care
Supplemental or
Medicare
Advantage
premiums and
deductibles
Vision &
hearing
Medical
equipment
not covered
by insurance
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Your Institution Has You
Covered
Retirement Plan
• Exclusively for
• General retirement
expenses
• Taxble distribution
• Beneficiaries
• Assets passed to
health expenses
• Tax-free distribution
• Dependents
• Assets passed
back to plan
estate
Retirement
Health Plan
Income Security + Healthcare Security = Retirement Readiness
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The Power of Compounding
Just by saving $100 a month
Potential account earnings
Contributions
Total:
$264,012
$300,000
$216,012
$250,000
$200,000
SAVINGS
Total:
$122,709
$150,000
$86,709
$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 years
20 years
30 years
40 years
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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Current Health Account
Investment Options
Ticker
Fund Name (Retirement Class)
TIEXX
TIAA-CREF Money Market R
TLIRX
TIAA-CREF Lifecycle Retire Income
TCLEX
TIAA-CREF Lifecycle 2010 Retire
TCLIX
TIAA-CREF Lifecycle 2015 Retire
TCLTX
TIAA-CREF Lifecycle 2020 Retire
TCLFX
TIAA-CREF Lifecycle 2025 Retire
TCLNX
TIAA-CREF Lifecycle 2030 Retire
TCLRX
TIAA-CREF Lifecycle 2035 Retire
TCLOX
TIAA-CREF Lifecycle 2040 Retire
TTFRX
TIAA-CREF Lifecycle 2045 Retire
TLFRX
TIAA-CREF Lifecycle 2050 Retire
Investments accumulate
tax-free and are
disbursed tax-free
Make voluntary after-tax
contributions via payroll
deduction or online at
tiaa-cref.org
Emeriti Retirement Health Benefit
Triple Tax Advantage
Institution makes tax-free
contributions to your health account
Pay premiums tax-free
out of your health
account
You may make aftertax contributions
Upon turning 65,
enroll in the plan’s
group health insurance
Upon separation of service,
use assets, tax-free, for
reimbursement of qualified
medical expenses
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Emeriti Retirement Health Benefit
Tax Advantaged Health Account in Action
$1,000
MEDICAL BILL
Pay with Emeriti
Health Account
Tax-free withdrawal of
$1,000
100 cents on the dollar
Pay with 403(b)
Retirement Plan
Taxable withdrawal of
approximately
$1,400
72 cents on the dollar
in 28% federal income tax
bracket
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Next Steps
1
Make voluntary
contributions
Via payroll deduction or
ACH transfers from your
bank account
2
3
Visit Emeriti
website for
more information
Enjoy your
working years!
Knwowing your
institution has you
covered with a
retirement health plan
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For More Information
Visit the Emeriti
website
Emeriti
Service
Center
www.EmeritiHealth.org
1-866-EMERITI (1866-363-7484)
Call or visit us online.
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The Emeriti Program
EMERITI
AETNA
Oversight, legal,
insurance renewal.
Disbursement
Oversight
TIAA-CREF
National insurance
underwriter.
Insurance
Accumulation record
keeper, investment trust
management.
SAVITZ
Disbursement record
keeper, insurance
enrollment and billing,
QME adjudication.
Accumulation
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ThankYou
FOR JOINING US
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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.
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.
Investment Adviser Status
Emeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options
available under the Emeriti Program. Emeriti may provide non-personalized educational materials to plan participants relating to
their and their employer’s contribution to their Emeriti Plan and the allocation of their Emeriti Health Account balances among
available investment options. Emeriti does not provide personalized investment advice to participants.
The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”)
may be treated as securities under federal or various state securities laws. The offering of these Interests is subject to compliance
with any applicable federal or 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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Interests in any retiree healthcare plan discussed herein are offered solely by the employer.
Teachers Insurance and Annuity Association of America (TIAA) will provide services to the plan and may issue plan
communications on behalf of the plan sponsor, in its capacity as a plan recordkeeper.
TIAA-CREF Individual & Institutional Services, LLC serves as a broker-dealer with respect to underlying mutual funds
only, and does not offer, market or sell interests in such plans or otherwise provide broker-dealer services with
respect to the interests in such plans.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit
tiaa-cref.org for details. Investment, insurance and annuity products are not FDIC insured, are not bank
guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any
banking service or activity, and may lose value.
The tax information contained herein is not intended to be used, and cannot be used by any taxpayer, for the
purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of
the products and services addressed herein. Taxpayers should seek advice based on their own particular
circumstances from an independent tax advisor.
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addendum
17
Emeriti’s 2014 investment options
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