1. EMPLOYEE BENEFITS REFRESHER Presented by: Krissa Hilger Employee Benefits Coordinator Diocese of Winona Ministry Days June 12, 2007

2. Diocese of Winona2 Benefit Eligibility Benefits should to be offered to any lay employee scheduled to work 20 or more hours per week; or who carries a minimum of one-half load during the academic year. Benefits begin on the date of hire, with the exception of health/dental insurance. Health/dental insurance is effective the 1 st of the month following commencement of employment. Employees must be a minimum of 21 years of age to participate in the 403(b) pension plan and the flexible benefits plan. No age limits exist for other benefits.

3. Diocese of Winona3 Timing of Benefit Enrollment Upon hire, eligible employees need to either enroll in or waive coverage, for all diocesan benefits they are eligible for, within 30 days of beginning employment. Flex Plan – The plan year is July 1 to June 30. Re-enrollment occurs every July 1st. Employees cannot make changes to their flex plan election during the plan year, unless there is a change in family status. Lay Pension 403(b) – The amount of employee contribution can be changed at the beginning of any given month. Health Insurance – Employees may drop or add coverage at the beginning of any month during the year, however, they cannot change the associated flex plan deduction unless there is a change in family status. Health Insurance – Employees wishing to change deductible plans may only due so on September 1 st annually.

4. Diocese of Winona4 BENEFIT BILLINGS Flex and 403(b) pension are billed one month in arrears. Insurance - health/dental, life, AD&D, and disability are billed one month in advance. EXAMPLE Billings you receive on or about July 1:  June 403(b) pension contribution  June flex deductions  July insurance

5. Diocese of Winona5 BENEFIT BILLINGS Changes that you want to occur on the next billing must be received by the 20 th of the month. Billings are mailed prior to the 1 st of the month. Payments must arrive at the Pastoral Center by the 10 th of the month. 403(b) pension payments received after the deadline force your employees to lose one month on their investment. Please send copies of the billings along with your payment.

6. Diocese of Winona6 403(b) PENSION Contributions Employer Employee Employer Match 3% 0% 0% 3% 1% 1% 3% 2% 2% 3% 3% or more 3%

7. Diocese of Winona7 403(b) PENSION Employees may contribute a maximum of $15,500 in 2007. If the employee’s annual salary is less than $15,500 then the maximum contribution for that employee in 2007 is their annual salary. If the employee’s age is 50 yrs or greater and their annual salary is more than $15,500, the employee may contribute up to an additional $5,000 in 2007 under the “catch-up” provision, for a total maximum contribution of $20,500.

8. Diocese of Winona8 403(b) PENSION/Termination Refund/Distribution of account Rollover to another carrier/account Paid-up status Employee is always 100% vested in their own contributions. Employee’s entitlement to Employer contribution and Employer Match is based on years of service: 1 yr – 20% 2 yrs – 40% 3 yrs – 60% 4 yrs – 80% 5 or more yrs – 100% Any unvested balance is returned to the employer.

9. Diocese of Winona9 Flexible Benefits Plan July 1, 2007 - Third Party Administrator will handle claims processing Corporate Health Systems – Twin Cities based Plan benefits and limits to remain the same Checks issued weekly on Wednesday’s – claims deadline is the previous Wednesday Direct Deposit is available Fax claims confidentially On-line account access for participants Flex billing will remain the same – monthly Administrative fee to employer = 1%

10. Diocese of Winona10 Health Insurance Renewal 9/1/07 Rates will increase approximately 6% Second year of only single digit increase – 8% last year Medical trend in SE MN is 11-12% this year Finalized rates will be announced in July Employees can change deductible plans at renewal – 9/1/07

11. Diocese of Winona11 Health Insurance Changes 9/1/07  Fitness Center Discount Participants must have 12 visits per month to receive the monthly $20 discount Previously was 8 visits  Dependent Definition Unmarried child to the age of 25 Full-time student status is no longer required

12. Diocese of Winona12 Health Insurance Changes 9/1/07 Preventative care benefit will be enhanced Currently at $350 per calendar year Changing from an annual dollar limit to a frequency model of preventative care Eligible preventative care services are paid at 100%, no deductible applies Includes preventative medical exams, cancer screenings, immunizations, and certain lab tests

13. Diocese of Winona13 Retirees Early retiree = Retiring employee, with at least five years of service, who is age 62-65 Early retiree can stay on regular insurance plan through age 65, paying full monthly premium Retiree Supplemental Health Insurance – for retired or retiring employees age 65 and older

14. Diocese of Winona14 Retiree Supplemental Health Ins. Two parts to the supplemental policy:  BCBS “Senior Gold” – is a supplement to Medicare Parts A and B – no deductible and usually pays 100% of the bill after Medicare pays its portion  BCBS “Medicare BlueRX” – is a Medicare Part D plan – prescription drug 3-tiered co-pay plan - $5, $15, or $35 for a 31 day supply Retiree must be enrolled in Medicare Parts A & B to be on this supplemental health plan

15. Diocese of Winona15 Retiree Supplemental Health Ins. Retiree supplemental plan also includes the current Delta Dental coverage Calendar year 2007 = $310 monthly premium includes:  BCBS “Senior Gold”  BCBS “Medicare BlueRX”  Delta Dental Premiums billed to local parish/school – parish/school collects from retiree

16. Diocese of Winona16 Handouts Employee Benefits Guide Health Insurance Books Retiree Health Information FLSA – Exempt Status Requirements

17. Diocese of Winona17 Questions....