Saving for Health Care Expenses in Retirement

2013 Benefits

This presentation is copyrighted © exclusively by Emeriti

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THE EMERITI PROGRAM during your working years

Your Institution’s Commitment

Giving you a tax-free way to pay your health care expenses in retirement

Providing access to group health insurance when you retire

Keeping you informed about retiree health care issues along the way

Your Institution is:

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Emeriti’s Core Benefit Components

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• 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

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

Retiree Health Plans

Emeriti’s Service Providers

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Your Institution Makes Tax-free Employer Contributions*

You Make After-tax Voluntary Contributions

Contributions and earnings disbursed tax free during retirement

You Receive Tax-Free Emeriti Reimbursement Benefits

You Pay for Emeriti Health Insurance Premiums Tax-Free

CONTRIBUTIONS DURING WORKING YEARS

Tax Advantages of Emeriti Health Accounts

DISBURSEMENTS DURING RETIREMENT INVESTMENTS

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*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.

Your Assets Accumulate Tax-Free

• 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-CREFMoney Market Fund

(Retirement Class)

• Some TIAA-CREF proprietary funds• Some non-proprietary funds from other mutual

fund families

Additional Mutual Funds – based on

institution’s election

Investment Options in 2013

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CORE FUNDS

CORE PLUS FUNDS

Why You Need to Save

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Source: EBRI estimates from the 2009 Medical Expenditure Panel Survey.

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Out-of-Pocket

13%

Private Insurance

14%

Medicare 59%

Other 14%*

*VA, Tricare, other private, Medicaid, other.

Medicare is Not Enough

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• Medicare provides these coverages • You have your choice of doctors & providers

Part A (Hospital) and Part B (Medical)Original Medicare

• Private insurers approved by Medicare provide Parts A & B coverage

• You may get extra benefits

Part C Medicare Advantage, PPO Plan

• Private insurers approved by Medicare provide coverage • Different plans cover different drugs at different levels• You can choose from a range of plan designs

Part D Prescription Drug

How Medicare Works

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What Are You Saving For?

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Medicare

• Part A deductible• Part B deductible• Part B premium• Part D deductible• Part D Coverage Gap

cost share• Part D Catastrophic

Threshold cost share

Supplemental Insurance

• Premiums• Deductibles• Co-pays and co-

insurance

Out-of-Pocket Expenses

• Vision• Hearing• Medical equipment• Long-term care• In-home health care

Note: Higher-income retirees may pay a higher Part B premium and may also be subject to a Part D premium

Keep This In Mind

As Medicare cost shares are increasingly indexed to income and taxes remain uncertain, tax diversity

in retirement is key.

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YEARS OF SAVING

Total: $122,709

Total: $52,397

$5,409

$12,000 $24,000

$28,397

$36,000

$86,709

$48,000

$216,012

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

10 20 30 40

SAVI

NG

S

The power of compoundingJust by saving $100 monthly

Potential account earnings

Contributions

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.

Total: $264,012

Total: $17,409

Save Early and Consistently

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Tax-free withdrawal of

$1,000100 cents on the dollar

Pay with Emeriti Health Account

Taxable withdrawal of approximately

$1,40072 cents on the dollar in 28% federal income tax bracket

Pay with 403(b) Retirement Plan

Tax Diversity in Retirement in Action

$1,000 medical

bill!

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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

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Emeriti Program Fees

Fees Actives Retirees*

Emeriti $5.00 $5.00

TIAA-CREF $ .67 $ .67

Savitz $1.00 $6.00

Investment management fees are variable by selected mutual funds (see prospectuses)

Monthly Participant Fees

*Also applies to vested terminated employees

Your employer may cover all or some portion of the service fees. Check with your institution’s benefit administrator if you are uncertain.

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WAYS TO GETMORE INFORMATION

Call toll-free:1-866-EMERITI(1-866-363-7484)

Monday – Friday9:00AM to 5:30PM (ET)

Scheduled annually on campus, these workshops provide you with details about your Emeriti Health Account, Insurance Plan Options, and the Emeriti Reimbursement Benefit.

Two different print and electronic statements that detail your Health Account investments, as well as your Health Insurance and Reimbursement Benefit transactions.

An at-a-glance benefits website with access to information about your Emeriti Health Account balances, Health Insurance Plan Options, and Reimbursement Benefit transactions.

MyEmeritiBenefits.org.

Using TIAA-CREFs secure website, you can check your Emeriti Health Account balance any time.

Visit tiaa-cref.org to log in.

The Emeriti website contains information about each component of the Program, as well as Medicare update, the QME form, a premium rate guide, and other important information.

Visit EmeritiHealth.org.

An easy-to-use online resource for benefits and health information. Check your insurance claims, find a doctor, order prescriptions online, and access information about eligible health expenses.

Visit EmeritiHealth.org and click on the Online Participant Services button.

As you near age 65, Emeriti mails insurance age-in retirement kit to your home. You may also request a kit at any time.

Once you are enrolled, retiree annual insurance enrollment kits are also mailed to your residence.

Various materials to inform and educate you about the Emeriti Program throughout your working years and into retirement.

A Plan-level microsite for you to access investment information, including prospectuses, fund fact sheets, and performance reports.

This Program feature is currently in development. Details forthcoming.

Emeriti Service Center

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1-866-Emeriti

Thank you for calling Emeriti

Please listen carefully, as our menu has changed.YOU WILL HAVE 3 CHOICES

For information about Annual Enrollment and questions about Emeriti

Health Insurance, press 1

For assistance with Annual Enrollment,

press 1

Aetna Rep

Savitz Rep

To speak with an Aetna or HealthPartners representative

about your benefits or an existing insurance claim, press 2

TIAA-CREF Rep

For questions about Emeriti Health Account

balances and investments, press 3

HP Rep

Press 1 for an Aetna representative, press 2 for a

HealthPartners representative

For questions about the Emeriti

Reimbursement Benefit, press 2

Savitz Rep

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TIAA-CREF Quarterly Statement Savitz Quarterly Statement – when you terminate

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TIAA-CREF.org Online Account Details

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Register

View Health Account, Health Insurance, and Reimbursement

Benefit Information

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.

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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.

Investment Adviser StatusEmeriti 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.

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