2016 Retiree Meeting

 Retiree Continuation of Benefits  When do my active benefits end?  What can be continued and for how long?  How do I make my election?  VEBA  What is it?  How do I use it? Investments Reimbursement

 Active benefits will end:  Teachers: 8/31/2016  All Others: End of month in which retirement occurs (Last day worked)

 Retiree benefit continuation will be offered at the level of coverage you have on your last day worked:  Medical Insurance – until age of Medicare Refer to your contract for possible district contribution Plan A Teachers - option available this year in MOU to receive VEBA contributions in place of medical plan continuation  Dental Insurance – until age of Medicare  Life Insurance (Basic & Supplemental) – 18 months  Integrated VEBA (if applicable) – more info to come in a later slide  Flexible Spending Acct – through end of current plan year  If you are age 65 at retirement or will turn 65 within 18 months, you will be offered 18-months of COBRA for the same benefits

 During Open Enrollment for coverage effective 7/1/16: Employees retiring in June 2016 may elect a different plan design Employees retiring in June 2016 may not add coverage for the first time or add family members to coverage

 Step One: Retire!  Step Two: Receive letter from the District outlining the timeline of your upcoming benefit offerings  Step Three: Receive Election Notice from Corporate Health Systems (CHS)  Retiree packet if under 65 (ACH eligible)  COBRA notice if 65 or turning 65 within 18 months of Retirement date (Not ACH eligible)  Step Four: Complete Election Notice and mail back to CHS  60 days to elect  Enrollment effective retroactively to offer date  Step Five: Payment coupons will be mailed to you for any monthly premiums you owe based on your election

 Medicare benefits become effective 1 st of Month in which individual turns 65  However, if birth date is 1 st of the month, benefits become effective 1 st of the previous month  Medicare Supplement Communication  Approximately 90 days prior to retiree turning 65  Letter from CHS  UCare Medicare Supplement information  Dependent Continuation after Retiree turns 65  Dependents will receive an election packet days prior to Retiree’s Medicare eligibility date to enroll in coverage Spouse continuation until Medicare eligibility Dependent Child continuation until age 26

 Coverage available to supplement Medicare  Two options: Core $149 High $316  Provides: Supplemental medical coverage Prescription coverage Preventative Dental coverage (Comprehensive coverage at additional premium) Eyewear allowance

 Life Insurance Conversion  Madison National Life  Long Term Care Policy Conversion  UNUM

 VEBA: Voluntary Employee’s Beneficiary Association  Tax Free Health Reimbursement Arrangement (HRA)  Funded with Employer dollars only  Funds held in 501 (c)(9) external trust  No “Use it or lose it” Transference rule

 Defined Plan - HRA  Directs contributions to trust  Defines reimbursement  Describes trust operation  Funding Vehicle – VEBA  External Trust

 Integrated VEBA  Requires enrollment in Three for Free Medical Plan  Contribution amount defined by contract  Access to dollars while in active employment  Post-Employment VEBA  No medical plan enrollment needed  May be currently receiving contributions  Contribution amount defined by contract Potential severance/MOU contributions will be deposited to this type of account  Access to dollars only after employment has ended

 Post-Employment Account becomes “Claim Active”  Consolidated Accounts where applicable  If you have a Three for Free medical plan at retirement, you will be offered Retiree Benefit continuation of your Integrated VEBA along with your medical insurance. This election is NOT RECOMMENDED as it will limit access to the account to 18 months.  As long as your Integrated VEBA is not continued through COBRA, it will be rolled over to a Post-Employment Account with no limitations to access.  Debit Card not available  List of eligible expenses expands to include insurance premiums  Paid with Post-tax dollars  Any premiums reimbursed can not also be submitted for federal premium tax credit

 Medical Expenses  Section 213(d) – Medical Expense list Log-on to your CHS account to access Note: These expenses will first pay from Flexible Spending Account if applicable  Insurance Premiums  Medical/Dental Insurance Includes Medicare Supplemental Plan Premiums Excludes any plan purchased via the exchange (MN Sure) due to tax credit provided for these plans  Long Term Care Insurance - Subject to IRS maximums Age 51-60: $1,460 Age 61-70: $3,800 Age 71 and older: $4,870

 Expenses must be incurred after your effective date under the VEBA plan  Effective date = Retirement Date  Expenses must be submitted within 365 days from the date of service

 Online:  Initial Login: Default Username: SSN Default Password: changeme  Paper Forms:  Fax:  Mail: Technology Drive, Eden Prairie, MN 55344

 Claim submitted by the end of day Friday are reimbursed the following Friday  Maintaining current address is important  Providing a personal address is valued  Default reimbursement method is check; option to enroll in direct deposit

 Participants can submit to have premium reimbursements automatically paid each month  Submit a Recurring Premium Reimbursement Form  Submit 1 form for each premium  If premiums change or cease: Notify CHS to avoid disbursement for ineligible amount Submit a new recurring claim form in the new premium amount

 Funds are automatically invested in Money Market Account - First American Prime Obligations  Can opt to invest dollars above $2,500  14 Fund Choices ranging from Low to High Risk  Investment site provides access to Morningstar reports for each fund  Can make changes to investments daily  Review Investment Portal Guide and FAQ  Discuss investments with personal investment advisor

 Administration fee - $6.00/month  Billed to account directly  Billed on a quarterly basis by end of 1 st month following end of quarter  No Investment Fee

 Upon Death of Participant  Transference to eligible party Spouse Eligible Dependent o Child under 27 through end of taxable year  Forfeiture Allotted per capita to Participants within same Bargaining Group

 UCare Medicare Supplement Information  Claims Portal Guide  Claim Forms  Investment Guide  Investment FAQ  Sample COBRA and Retiree Communications

 Eden Prairie Schools external website:  Visit : www:edenpr.org Located under: Departments > Human Resources Maintained to provide access to documents (Medical, Dental, Life, VEBA)  CHS Individual Coverage Quote Tool:  Visit : www:corphealthsys.com Individual Insurance under Employees  CHS contact for Questions on Medicare or Individual Marketplace Coverage:  George Vander Weit:

 Corporate Health Systems  Kymm Thomas Phone:  Eden Prairie Schools  Human Resources Phone: