THE EMERITI PROGRAM during your working years 2013 Benefits THE EMERITI PROGRAM during your working years Saving for Health Care Expenses in Retirement This presentation is copyrighted © exclusively by Emeriti

Your Institution’s Commitment Your Institution is: Giving you a tax-free way to pay your health care expenses in retirement Providing access to group health insurance when you retire Offering tax-free reimbursement for other health care expenses Keeping you informed about retiree health care issues along the way

Comprehensive Retirement Security 403 (b) Retirement Plan Accessible for general retirement expenses Retiree income distribution is taxable Beneficiaries Assets passed to the estate 501 (c) (9) – VEBA Retiree Health Plan Dedicated to health-related retirement expenses Retiree health benefit distributions are tax-free Dependents Assets passed on for mutual benefit of the plan

Emeriti’s Core Benefit Components Tax-advantaged savings and investment vehicle, via VEBA Trusts, for payment of future medical expenses in retirement Emeriti Health Accounts Portable group retiree health insurance options building on the foundation of Medicare Emeriti Health Insurance Tax-free reimbursement of other qualified medical expenses not covered by Medicare or Emeriti insurance options Emeriti Reimbursement Benefits

Emeriti’s Service Providers TIAA-CREF Accumulation Recordkeeping Trust Services Investment Management Proprietary Mutual Funds Non Proprietary Mutual Funds Savitz Disbursement Recordkeeping Insurance Premiums Qualifying Medical Expenses Debit Card Manual Claims Aetna Retiree Health Plans HealthPartners 5

Tax Advantages of Emeriti Health Accounts Contributions and earnings disbursed tax free during retirement CONTRIBUTIONS DURING WORKING YEARS DISBURSEMENTS DURING RETIREMENT NOTE: Your employer’s plan establishes specific rules for vesting in account balance and retirement eligibility for insurance. Please consult your plan highlights and summary plan description INVESTMENTS You Receive Tax-Free Emeriti Reimbursement Benefits You Make After-tax Voluntary Contributions Your Institution Makes Tax-free Employer Contributions* Your Assets Accumulate Tax-Free You Pay for Emeriti Health Insurance Premiums Tax-Free *Begins at a pre-designated age. See your Summary Plan Description or talk to your benefits administrator. Your institution may make additional pre-tax contributions in lieu of salary or other benefits. 6 8

Investment Options in 2013 TIAA-CREF Lifecycle Funds Asset diversification among asset classes Automatic rebalancing TIAA-CREF Lifecycle Funds (Retirement Class) A money market mutual fund Seeks to assure the value of your investment at $1 per share TIAA-CREF Money Market Fund Some TIAA-CREF proprietary funds Some non-proprietary funds from other mutual fund families Additional Mutual Funds – based on institution’s election CORE FUNDS CORE PLUS FUNDS

Why You Need to Save

Medicare is Not Enough Out-of-Pocket 13% Other 14%* Private Insurance 14% Medicare 59% Other 14%* Source: EBRI estimates from the 2009 Medical Expenditure Panel Survey. *VA, Tricare, other private, Medicaid, other. 11

What Are You Saving For? Medicare Supplemental Insurance Part B premium Part A deductible Part B deductible Part D deductible Part D Coverage Gap cost share Part D True Out-of-Pocket) TrOOP Supplemental Insurance Premiums Plan deductibles Co-pays and co-insurance Out-of-Pocket Expenses Vision Hearing Medical equipment Long-term care Nursing home Potential Impact for Medicare Solvency. Immediate increase in FICA payroll tax for current workers toward Medicare: 2.9% to 3.56%. SOURCE: EBRI Issue Brief, December 2010.

Save Early and Consistently The power of compounding Potential account earnings Just by saving $100 monthly Contributions Total: $264,012 $300,000 $216,012 $250,000 $200,000 Total: $122,709 $150,000 $86,709 Total: $52,397 $100,000 Total: $17,409 $28,397 $50,000 SAVINGS $5,409 $0 $12,000 $24,000 $36,000 $48,000 YEARS OF SAVING 10 20 30 40 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.

Tax diversity in retirement is key Keep This In Mind Tax diversity in retirement is key WHY? Medicare cost shares are increasingly indexed to income: Medicare Part B premiums Medicare Part D premiums

Tax Diversity in Retirement in Action $1,000 medical bill! Pay with 403(b) Retirement Plan Taxable withdrawal of approximately $1,250 80 cents on the dollar in 20% federal income tax bracket Pay with Emeriti Health Account Tax-free withdrawal of $1,000 100 cents on the dollar

Your Next Steps Contact your benefits administrator to begin payroll deferred voluntary contributions Keep an eye out for Emeriti’s life stage communications Visit EmeritiHealth.org Register on the Emeriti Benefits Dashboard at MyEmeritiBenefits.org

ESSENTIAL SERVICES In print | In person | On phone Call toll-free: 1-866-EMERITI (1-866-363-7484) Monday – Friday 9:00AM to 5:30PM (ET) Annual workshops on campus National teleconferences Investment statement Benefits statement When you are saving When you are nearing retirement When you are using retiree health benefits Initial age-in kit at Medicare eligibility Annual insurance enrollment kit, thereafter

DIGITAL SERVICES Online: access via EmeritiHealth.org

DIGITAL SERVICES Online: access via EmeritiHealth.org Comprehensive Program website Visit EmeritiHealth.org At-a-glance benefits website Register at MyEmeritiBenefits.org Check your Emeriti Health Account balance Log-in at tiaa-cref.org Online resource for insurance benefits and health information Check your insurance claims Order prescriptions online Access via EmeritiHealth.org Online resource for insurance benefits and health information Access via EmeritiHealth.org Detailed investment information Prospectuses, fund fact sheets, performance reports Website in development

Log-in at TIAA-CREF.org Investment choices Account balances Contribution history Recent transactions

TIAA-CREF Quarterly Statement - Investments Savitz Quarterly Statement – Benefits

Health Account balances Health Insurance enrollments Reimbursement Benefit transactions Register today at MyEmeritiBenefits.org

How to Use the Emeriti Service Center Thank you for calling Emeriti Please listen carefully, as our menu has changed. YOU WILL HAVE 3 CHOICES For information about Insurance Enrollment, press 1 For information about the Reimbursement Benefit, press 2 For information about the Health Accounts, press 3 Reminder: Participants enrolled in the Medicare Advantage PPO Plan should only present their Aetna Medicare Advantage card to health service providers. The Plan replaces Medicare, so participants should only use their Aetna medical ID card.

Status of 2012 Services Commitments Improved Emeriti Service Center: 9am – 5:30pm ET 1-866-EMERITI Dedicated Emeriti representatives Improved warm transfers Enhanced reimbursement benefit options: Manual claims can be submitted via direct mail, fax, or uploaded to participant benefits dashboard, starting in January New debit card option in development for 2013 Online participant dashboard: At-a-glance summary of Health Account activity, insurance plan information, and reimbursement benefit transactions. Quarterly statements: Investment statement from TIAA-CREF Health insurance and reimbursement benefit statement from Savitz Enhanced menu of investment funds and institutional Microsites: Proprietary and non-proprietary fund choices Microsites in development for 2013 Improved suite of life-stage communications for participants: Retired participants Participants nearing retirement Younger active participants – in development for 2013 Improved ACH savings opportunity from personal bank accounts: Recurring and periodic lump sum savings option – in development for 2013

Emeriti Program Fees Your employer may cover all or some portion of the service fees. Check with your institution’s benefit administrator if you are uncertain. Monthly Participant Fees Fees Actives Retirees* Emeriti $5.00 TIAA-CREF $ .67 Savitz $1.00 $6.00 No extra processing fees for QMEs. Active fee is unchanged. Investment management fees are variable by selected mutual funds (see prospectuses) *Also applies to vested terminated employees

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 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 for the Emeriti Program, selecting the investment manager for employer and voluntary employee contributions, and providing these and other impersonal educational materials to plan participants. Emeriti does not provide advice to participants about their individual investment selections. The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities under various state securities laws. The offering of these Interests is subject to compliance with any applicable 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.

Addendum

Four Components of Part D Benefit Coverage Gap Catastrophic Coverage Deductible Initial Coverage Period You pay 97.5% of brand drugs You pay 79% of generic drugs You pay first $325 as deductible You pay 25% of drug costs You pay 5% You reach the Coverage Gap at $2,970 in total Part D covered drug expenditures (includes plan deductible, your costs and plan costs in the Initial Coverage Period). You reach Catastrophic Coverage at $4,750 in true out-of-pocket costs.