Your Institutions Retirement Health Plan Powered by Start Asking Questions 2 Is my pension enough Will I need additional insurance How much should I save What does Medicare cover Medicare Coverage amp Costs ID: 419892
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During Your Working Years
Your Institution’s Retirement Health Plan
Powered bySlide2
Start Asking Questions
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Is my pension enough?
Will I need additional insurance?
How much should I save?
What does Medicare cover?Slide3
Medicare Coverage & Costs
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*Source: National Institute on Aging, Newsroom, Dramatic changes in U.S. highlighted in new census, NIH report, June 26, 2013.
Is Medicare Enough?
Medicare is the primary payer, but retirees also need supplemental health insurance
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2
%
Medicare is
Not Enough
Medicare covers only about 62% of total healthcare expenses in retirement.*Slide4
Medicare Expenses in Retirement Add Up
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Annual deductible, copays & coinsurance
Part A - Hospital
Annual premiums, copays & coinsurance
Part B - Doctor
Annual premium, copays & coinsurance
Part C – Medicare Advantage
Annual premium (higher income), deductible, copays, coinsurance, Coverage Gap cost shares
Part D – RxSlide5
Healthcare Expenses in Retirement Add Up
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Supplemental or Medicare Advantage premiums and deductibles
Medical equipment
Vision & hearing
Skilled nursing & long-term careSlide6
Your Institution Has You Covered
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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 ReadinessSlide7
The Power of Compounding
7
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 years
20 years
30 years
40 years
SAVINGS
Just by saving $100 a
month
Potential account earnings
Contributions
Total:
$264,012Total: $17,409These 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.Slide8
Current Health Account
Investment Options
Ticker
Fund Name (Retirement Class)
TIEXXTIAA-CREF Money Market R
TLIRX
TIAA-CREF Lifecycle Retire IncomeTCLEXTIAA-CREF Lifecycle 2010 Retire
TCLIXTIAA-CREF Lifecycle 2015 RetireTCLTX
TIAA-CREF Lifecycle 2020 RetireTCLFXTIAA-CREF Lifecycle 2025 RetireTCLNX
TIAA-CREF Lifecycle 2030 Retire
TCLRX
TIAA-CREF Lifecycle 2035 Retire
TCLOX
TIAA-CREF Lifecycle 2040 Retire
TTFRX
TIAA-CREF Lifecycle 2045 Retire
TLFRXTIAA-CREF Lifecycle 2050 RetireMake voluntary after-tax contributions via payroll deduction or online at tiaa-cref.orgInvestments accumulate tax-free and are disbursed tax-freeSlide9
Emeriti Retirement Health Benefit
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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 AdvantageSlide10
Emeriti Retirement Health Benefit
10
Tax Advantaged Health Account in Action
Tax-free withdrawal of
$1,000
100
cents on the dollar
Pay with Emeriti Health Account
Taxable withdrawal of approximately
$
1,400
72 cents on the dollar
in
28%
federal
income tax bracketPay with 403(b) Retirement Plan
$1,000 MEDICAL BILLSlide11
Next Steps
11
Via payroll deduction or ACH transfers from your bank account
Make voluntary contributions
Visit Emeriti
w
ebsite for
m
ore information
Knwowing your institution has you covered with a retirement health plan
Enjoy your
w
orking years!
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For More Information
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Emeriti Service Center
1-866-EMERITI (1-866-363-7484)
Call or visit us online.
Visit the Emeriti website
www.EmeritiHealth.orgSlide13
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Accumulation
Insurance
Disbursement
Oversight
Oversight, legal, insurance renewal.
EMERITI
TIAA-CREF
AETNA
SAVITZ
The Emeriti Program
Accumulation record keeper, investment trust management.
Disbursement record keeper, insurance enrollment and billing, QME adjudication.
National insurance underwriter. Slide14
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Thank
You
FOR JOINING US
Powered bySlide15
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 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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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.
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addendum
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Emeriti’s
2014 investment options