Preparing for Retirement Your Institution’s Retirement Health Plan Powered by

Putting the Pieces Together 2 Is my pension enough? Will I need additional insurance? What will Medicare cover? What about out-of-pocket expenses?

Medicare Coverage & Costs 3 *Source: National Institute on Aging, Newsroom, Dramatic changes in U.S. highlighted in new census, NIH report, June 26, Is Medicare Enough? Medicare is the primary payer, but retirees also need supplemental health insurance 62%62% Medicare is Not Enough Medicare covers only about 62% of total healthcare expenses in retirement.*

Medicare Expenses in Retirement Add Up 4 Annual deductible, copays & coinsurance Part A - Hospital Annual premiums, copays & coinsurance Part B - Doctor Annual premium, copays & coinsurance Part C – Medicare Advantage Annual premium, deductible, copays, coinsurance, Coverage Gap cost shares Part D – Rx

Healthcare Expenses in Retirement Add Up 5 Supplemental or Medicare Advantage premiums and deductibles Medical equipment not covered by insurance Vision & hearing Long-term care

Your Institution Has You Covered 6 General retirement expenses Taxble distribution Beneficiaries Assets passed to estate Retirement Plan Retirement Health Plan Exclusively for health expenses Tax-free distribution Dependents Assets passed back to plan Income Security + Healthcare Security = Retirement Readiness

Emeriti Retirement Health Benefit 7 Powered by Institution makes tax-free contributions to your health account You may make after- tax contributions Upon separation of service, use assets, tax-free, for reimbursement of qualified medical expenses Upon turning 65, enroll in the plan’s group health insurance Pay premiums tax-free out of your health account Triple Tax Advantage

Reimbursement Benefit 8 For You & Your Dependents Pre-65 & COBRA premiums Supplemental Insurance, long term care and related nursing or in-home health services Medicare premiums & cost shares Vision, dental, hearing, and other post-65 insurance premiums Dependent relatives Permanently disabled children Dependent children (to age 26) Same sex and opposite sex domestic partner (pre- or post-65) Spouse (pre- or post-65)

2016 Post-65 Group Health Plans 9 5 Medical Plans Three Medicare Advantage PPO/ PPO ESA Plans Two Medicare supplemental plans ( L & K) 3 Part D Rx Plans Rx Premium Plan Rx Plus Plan Rx Standard Plan Optional Dental Plan Available with medical/Rx combination or with the Rx Standard stand-alone plan In and out- of-network coverage Medicare- approved One time enrollment

How Medicare Advantage Plans Work 10 Aetna provides Medicare Parts A & B benefits (Aetna is primary) One plan. One card. (you still need to get your Medicare card. You still pay Part B premium) Ongoing support for health and wellness: Aetna Nurse Case Manager Wellness Coach Extra benefits at no additional cost: Annual eye & hearing exams Silver & Fit Exercise & Aging Program Medicare Advantage

How Standard Medicare Part D Works 11 You pay first $360 as deductible You pay 25% of drug costs You pay 45% of brand drugs (50% manufacturers discount and Plan pays 5%) You pay 58% of generic drugs You pay 5% Greater of $2.95 or 5% for covered generic. Greater of $7.40 or 5% for all other drugs. Deductible Initial Coverage Period Coverage Gap Catastrophic Coverage You reach the Coverage Gap at $3,310 in total Part D covered drug expenditures. You reach Catastrophic Coverage at $4,850 in True Out- of-Pocket costs. Baseline for how Aetna plans work

2016 Post-65 Group Health Plans 12 Permanently disabled children** Dependent children (to age 26) Same sex and opposite sex domestic partner (pre- or post-65) plan* Spouse (pre- or post-65) Available for You and Your Dependents Attain retirement status Be age 65 + Be enrolled in Medicare Parts A & B When can you enroll in insurance?

Your Emeriti Retirement Health Plan 13 Automatic Billing Dependent Coverage Portability Guaranteed Issue Annual Choice Enroll spouse/dependents in plans of their choice. Take plans wherever you live in retirement.* Switch between plans annually, with no medical underwriting ever. Premiums deducted from your health account. *Based on state insurance requirements. Emeriti’s Group Insurance Advantage

Next Steps 14 Let your Human Resources Director know and get Emeriti’s nearing retirment kit. Have a retirement date in mind? Contact Social Security 3 months prior to your retirement date to enroll in Medicare Parts A and B. Ready to retire? Contact the Emeriti Service Center to request an insurance enrollment kit. Already enrolled in Medicare? 1  2 3

For More Information 15 Emeriti Service Center EMERITI ( ) Call or visit us online. Visit the Emeriti website

16 Accumulation Insurance Disbursement Oversight Founded the Program, oversight, legal, insurance renewal. EMERITI TIAA-CREF AETNA SAVITZ Emeriti’s Service Delivery Accumulation record keeper, investment trust management. Disbursement record keeper, insurance enrollment and billing, QME adjudication. National insurance underwriter.

17 ThankYou FOR JOINING US Powered by

2016 Post-65 Group Medical Plans 18 *In- and out-of-network NOTES: The ESA-PPO Plan has the same benefits as the In-Network PPO Plan. Aetna’s GMS Plans A and L will be offered in Florida in place of SRM Plans K and L. For 2016, the SRM Plans are not available in VT, MD, MN, and U.S. Territories.

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 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. 19

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. 20

addendum 21

Current Health Account Investment Options TickerFund Name (Retirement Class) TIEXXTIAA-CREF Money Market R TLIRXTIAA-CREF Lifecycle Retire Income TCLEXTIAA-CREF Lifecycle 2010 Retire TCLIXTIAA-CREF Lifecycle 2015 Retire TCLTXTIAA-CREF Lifecycle 2020 Retire TCLFXTIAA-CREF Lifecycle 2025 Retire TCLNXTIAA-CREF Lifecycle 2030 Retire TCLRXTIAA-CREF Lifecycle 2035 Retire TCLOXTIAA-CREF Lifecycle 2040 Retire TTFRXTIAA-CREF Lifecycle 2045 Retire TLFRXTIAA-CREF Lifecycle 2050 Retire Make voluntary after-tax contributions via payroll deduction or online at tiaa-cref.org Investments accumulate tax-free and are disbursed tax-free