1. Death Before Retirement -The Facts-

2. Meet Bill Age 52 BYU Faculty for 20 years $54,000 Salary $4,500/month

3. Meet Bill’s Family Spouse is 49 years old Three children, ages 22, 18, and 15

4. During a church basketball game the unthinkable happens...

6. What income is available for Bill’s family?

7. Life Insurance Payout Paid to beneficiary (spouse) – no taxes Group Term Life$50,000 Supplemental GTL6 x salary = $360,000

8. Savings Estimated Accumulations –3% salary increases –5% savings + 4% match –20 years Total = $169,339 Transferred to primary beneficiary (surviving spouse)

9. Master Retirement (MRP) Qualified Joint Survivor Annuity (QJSA) if taken at employee’s age: Age 55 (first available)Age 65 63% for additional years100% no additional years 95% for two-life 50% for spouse $381.19$605.06

10. Social Security Death Benefit$255 Spouse caring for child until dependent turns 16 $1,218/month Child benefit from age 16 to 18 or until high school graduation $1,218/month Family maximum $2,848/month

11. Social Security Option 1 Age 60 Option 2 Age 66 Retirement Benefit$1,161/mo.$1,624/mo.

12. What benefits are available for Bill’s family?

13. Family Medical/Dental Insurance Medical/Dental Insurance provided at no cost for a one-year period Changed to name of surviving spouse Dependent coverage during year limited to age 26, marriage, or employment with insurance

14. Family Medical/Dental Insurance After one year of coverage: –Because Bill has twenty or more years of MRP benefit credit: Coverage continues and BYU pays its full part

15. Family Medical/Dental Insurance If after one year of coverage: – Bill had more than ten years, but less than twenty years of MRP benefit credit: Coverage may continue and premiums are prorated

16. Family Medical/Dental Insurance If after one year of coverage: – Bill has less than ten years of MRP benefit credit: Spouse and dependents are not eligible for continuing coverage COBRA is an option for up to 36 months

17. Family Life Insurance Coverage BeforeAfter Surviving Spouse $2,000 GTL $200,000 SGTL $5,000 SGTL Dependents $2,000 GTL $10,000 SGTL $5,000 SGTL

18. Family 24-Hour AD&D BeforeAfter Employee 0 to $400,000-0- Spouse0 to $160,000-0- Dependents0 to $20,000-0-

19. Tuition for Spouse Full-time benefit continues Benefit not extended to new spouse and step children if new marriage

20. Tuition for Dependents Changes from ½ tuition to full tuition Benefit continues if accepted to BYU-Provo or BYU-Idaho until the child: –Obtains a Bachelor’s Degree from any university or college or –Completes 152 semester hours at BYU or –Reaches Age 30

21. Strategy for Use of Benefits Group Term Life $50,000 Pay burial expenses Pay other family debts

22. Spouse’s Monthly Income Money invested at 6% or single premium life annuity paying at 6% SGTL $360,000$1,800 Thrift $169,339$847 Total $529,339$2,647 Social Security Social Security for Spouse until child is age 16 $1,218

23. Additional Monthly Income Option 1Option 2 MRPAt age 52$381At age 62$605 Social Security Retirement At age 60$1,161At age 66$1,624

24. What if Bill had been age 55? Not RetiredRetired Life Insurance$410,000$12,000 Master Retirement $470/mo.$871/mo.

25. Take time to review your benefits package –Make sure your beneficiaries are updated Increase your life insurance if necessary Obtain a projection from Social Security Increase your savings if possible Challenge

26. Your family will thank you.

27. Representations made in this presentation are for educational purposes and should not replace an individual, personal consultation with your BYU benefits counselor or DMBA representative.

28. Questions?