Post on 23-Dec-2015
This presentation is copyrighted © exclusively by Emeriti
Delivered through record keeping arrangements with TIAA-CREF and Savitz
Supported by Aetna’s fully insured group health plans
THE EMERITI PROGRAM the sustainable solution to retiree health benefits
Kenyon College
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An Integrated PartnershipEmeriti Service Providers
Comprehensive Retirement Security
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Emeriti’s Core Benefits
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Emeriti Trust Structure Emeriti Health Accounts
Emeriti Insurance Options
Delivery ModelEmeriti Core Benefits
Emeriti Reimbursement Benefit
• Employer contributions to the Grantor Trust can be used for workforce management and transition strategies.
• Grantor Trust funds are restricted to fully insured products.
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Emeriti Investment Options in 2014
TIAA-CREF Actively Managed Lifecycle Funds - Retirement Class
TIAA-CREF Money Market Fund
CORE - Required
CORE PLUS – Kenyon has not elected any Fixed Income
Balanced
Actively Managed Equity Funds
PTTAXPIMCO Total Return
OAKBXOakmark Equity & Income
TIKRXTIAA Inflation-Linked Bond
TRSCXTIAA Social Choice
Index FundsVTSSX
Vanguard Total Stock Market Index Fund SignalVTSGX Vanguard Total International Stock Signal
RFNEX American Funds Fundamental
Investors R4
REREX American Funds EuroPacific
Growth R4
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Source Trust** Emeriti Plan Contributions Earnings Payout
EmployerEmployer
VEBARequired 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
Emeriti Health Accounts
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.
* Employee Voluntary contributions can be funded in a variety of ways.** Services provided by TIAA-CREF Trust Company as directed trustee.
Tax Treatment
Workforce Management Flexibilities
Eligibility and contribution amounts at discretion of institution*
Retirement Incentives
Retention Opportunities
Recruitment Strategies
Special Transition Contributions
PAYER CONTRIBUTION EARNINGS PAYOUT
EMPLOYER ONLY Pre-tax Tax-free Tax-free
NOTE: These special employer contributions may be made in any amount, to any individual within classes eligible for VEBA.
Special Contributions to the Grantor Trust
Available exclusively to pay for fully insured benefits
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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)
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.
Residual balance stays in the participant’s account at year end and has the opportunity to grow tax free for future use.
Emeriti Reimbursement Benefit
Two reimbursement methods:
• Rx Debit Card
• Manual Claims Processing
Tax-Free Reimbursement of Out-of-Pocket Medical Expenses
Dependent relatives
Permanently disabled children
Dependent children (before majority)
Same sex and opposite sex domestic partner (pre- or post-65)
Available for You & Your DependentsParticipant’s dependents include:
Who Can Use the Reimbursement Benefit
Spouse (pre- or post-65)
Consult your summary plan description for details
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Reimbursement Benefits at Work
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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.
For expenses incurred after termination
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*
Emeriti Post-65 Group Health Insurance
Pre-65 coverage options available
*Depending on plan chosen.
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Emeriti Insurance Choices for 2014
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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)
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
Five Group Medical Plans*
Three Rx Plans**
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.
How Do You Access Medicare and Emeriti Health Insurance
NOTE: Consult your Summary Plan Description for details.
After age 65 When you retire After enrollmentin Medicare Parts A & B
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Permanently disabled children**
Dependent children (before majority)
Same sex and opposite sex domestic partner (pre- or post-65) plan*
Available for Participant & DependentsParticipant’s dependents include:
Who Can Use Emeriti Health Insurance
Spouse (pre- or post-65)
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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.
As of 1/1/2014 Post-65 retiree and their dependents may enroll in different plans
How are Insurance Premiums Paid?
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Paid through Emeriti Health Account if participant has sufficient funds, as follows:
1. Grantor Trust2. Employer VEBA3. Employee VEBA4. ACH
If no Health Account funds, payment is made from ACH withdrawals after institutional premium subsidy, if applicable
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
Emeriti Plan Design: Kenyon College Provisions
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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)
Emeriti Plan Design
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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
Emeriti Plan Design
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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
Emeriti Plan Design
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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 WebsiteEmeritiHealth.org
Emeriti WorkshopsScheduled annually on campus
Emeriti Enrollment KitsMailed to residence
Emeriti Life Stage CommunicationsVarious Media
Emeriti Service Center1-866-EMERITI (1-866-363-7484)
Emeriti Benefits Dashboard At-a-glance benefits web siteMyEmeritiBenefits.org
Quarterly Statements:Print or electronic options
TIAA-CREF Investment MicrositePlan level fund information
Contacts
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Emeriti
Jim DawsonClient Services Consultant I Institutional Client Services
800-626-4717
Email: jdawson@tiaa-cref.org
Denver, Colorado
Christina Fendley
(845) 567-6666
Email: cfendley@emeritihealth.org
New Windsor, NY
Assistant Director, Implementation and Communications
TIAA-CREF
Emeriti Tutorial
Emeriti Program TIAA-CREF Remittance Process for Kenyon College
For Plan Sponsor Use Only
Understanding status codes and money sources
www.emeritihealth.org
Emeriti Tutorial
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Employee Status Codes and Descriptions:
N - Active status of eligible participant without a contribution0 - 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 Insurance6 - DeathF – Surviving (Eligible Dependent)5 - DisabledL - Leave of Absence3 - 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 TRUSTSSource F - EmployerSource K – Employee After Tax ContributionSource D - ER- Insurance Subsidy
GRANTOR TRUSTSource F - Employer
TIAA-CREF Plan Administrator Website
www.emeritihealth.org25
Getting Access for New Plan AdministratorsYou 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 usersGo to the “Plans” section of the website. Then, click “Add New Site User” under “Site Access.”
Section Two- Making ChangesEnter the new user’s name and email address and select their user type, either Plan Administrator or Auditor. Then, click “Next” tocontinue.
Section Three – Adding new usersAdd 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.
Updating data
www.emeritihealth.org
Emeriti Tutorial
Where to apply changes:• Remittance File.
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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
When to apply changes:• Apply to your next file remittance (bi-weekly)
Making contribution remittances
www.emeritihealth.org
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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.
Applying termination retirement status codes and dates
www.emeritihealth.org
Emeriti Tutorial
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Where to apply termination and retirement status codes:
REMITTANCE FILE
Where to apply termination and retirement dates:
REMITTANCE FILE
Processing forfeitures
www.emeritihealth.org
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How to apply forfeiture to institution’s plan:•Send Jim Dawson or [emeritiadminstrator@tiaa-cref.org] and provide forfeiture direction
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
When to apply forfeitures:•Coordinate with future remittance
Obtaining reports for Emeriti Plan on TIAA-CREF website
www.emeritihealth.org
Emeriti Tutorial
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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
Contacts
Emeriti Tutorial
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Emeriti
Jim DawsonClient Services Consultant I Institutional Client Services
800-626-4717, CO
Email: jdawson@tiaa-cref.org
Christina Fendley
(845) 567-6666, NY
Email: cfendley@emeritihealth.org
Assistant Director, Implementation and Communications
TIAA-CREF
Disclosures
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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.