1. 1 Moving Retirees to Arizona State Retirement System Healthcare Plan February 23, 2012 Michael E. Finn, CFO

2. ASRS $20 PCP office visit $50 Specialist office visit $200 co-pay 70%/30% inpatient hospital $10/$50/$100 pharmacy $150 emergency room $50 Urgent care PUSD $20 PCP office visit $40 Specialist office visit $750 deductible 80%/20% inpatient hospital $10/$25/$50 ($100 deductible) pharmacy $750 deductible 80%/20% emergency room $20 Urgent care 2 Plan Comparisons

3. Estimated monthly cost of retiree coverage over the past 12 months has been between $620 (claims and Rx only) and $767 (network and administration fees included) – Non-retiree monthly cost was $409 (claims and Rx only) and $507 (network and administration fees included) for that same time period Cost of coverage through ASRS is $641 per month Recommended implementation date of July 1, 2012 3 Cost Comparisons

4. Change in deductible Out of pocket annual maximum 4 Other Considerations

5. QUESTIONS AND DISCUSSION 5