GUIDE TO RETIRING FROM NORTHERN ARIZONA UNIVERSITY

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1 GUIDE TO RETIRING FROM NORTHERN ARIZONA UNIVERSITY Inside You Will Find Information on. Retirement planning resources What happens to your benefits when you retire Retiree Accumulated Sick Leave Program (RASL) Your retiree healthcare coverage options Retiree life insurance Forms you need to submit to retire

2 Table of Contents Retirement Planning Resources 1 What is Retirement? 3 Social Security Arizona State Retirement System (ASRS) Optional Retirement Plan Public Safety Personnel Retirement System What Happens to Your NAU Benefits When You Retire 11 Retiree Accumulated Sick Leave Program (RASL) 13 Retiree Health Care Medicare Healthcare Premium Benefit Health Care Options Available to NAU Retirees 14 ADOA ASRS Other Coverage Options Retiree Life Insurance 22 Working After Retirement 23 Retirement Check List 18 Forms to Complete Benefit Options Retiree \LTD Enrollment Form Arizona State Retirement System (ASRS) Enrollment Form Aetna Retiree Life Insurance Enrollment Form Retiree Recognition Retirees Association (NAURA) Membership Enrollment Form NAU Retiree Services Application Form Retiree Accumulated Sick Leave Program RALS Application Retirement Income 26 This guide is not intended to be used as a certificate of coverage or a plan document, but a summary of the benefits offered to NAU retirees. All benefits offered are subject to change at any time.

3 Congratulations on your upcoming retirement! This guide is designed to help you with the important decisions you need to make in order to retire from NAU. Financial Wellness NAU s Financial Wellness program provides employees access to financial education information from a variety of sources: Individual Financial Counseling - Counseling/ Online Tools and Workshops ( Onsite Workshops - Workshops/ The Journey to Retirement Program - Retirement/ Individual Financial Counseling Financial consultants from Fidelity, TIAA and Nationwide, the university s retirement plan vendors, regularly come to campus to meet with employees and retirees to provide one-on-one, financial guidance that can help you make informed choices about your finances. They help you answer questions like: Am I saving enough? Am I investing appropriately? Am I on track to retire at the age I want? For information on how to schedule an appointment with one of NAU s investment providers go to Individual Financial Counseling webpage at nau.edu/human-resources/benefits/retirement/retirement-counseling/

4 2 Online Tools and Workshops Our retirement vendors also offer a variety online financial tools and financial wellness workshops. Learn more about the tools Fidelity s live and on demand workshops - Resources/ TIAA s Live Webinar Lounge - Education/ ASRS Road to Retirement member education series Nationwide s Learning Center - For more information on Financial Wellness education go to Resources/Benefits/Retirement/Financial-Wellness/ Journey to Retirement Journey to Retirement is part of NAU s Financial Wellness Education program targeted toward employees looking to retire in the next year. Workshops You are encouraged to attend the following Journey to Retirement workshops: HR216 - Transitioning to Retirement Can you afford to retire when you want to? This session will show you how to create a retirement plan. It will help you identify your financial risks and review how your benefits from NAU can assist you in retirement. HR226 - Overview of Social Security Choosing when to begin receiving Social Security is an important part of deciding when to retire. In this session you will learn how your security benefit is calculated and how to determine when is the best time to start receiving your benefits. HR227 - Medicare and Your Health Care Options Health care is an important part of your retirement plan. In this session, we will review the health care options available to NAU retirees. Retiring from NAU If you are thinking of retiring in the next year you should plan to attend a Retiring from NAU workshop. In this workshop retirement advisors will walk you through the step to retiring from NAU. They will cover the benefits offered to retirees and the forms that need to be completed. Q. When is the next Journey to Retirement workshop? For information upcoming sessions go to Journey to Retirement webpage at nau.edu/humanresources/benefits/retirement/journey-to-retirement/

5 Pre-retirement counseling NAU provides a pre-retirement counseling session to employee s retiring in the next six months once they have selected their retirement date. Your spouse, partner, friend or other family member is welcome to attend your session with you. During your counseling session you will learn about: 3 The steps you need to take to retire from NAU The paperwork that will need to completed Benefits available to retirees The Retiree Accumulated Sick Leave Program and receive a packet (if eligible) You should set up a pre-retirement counseling session with a retirement advisor no later than 6 weeks prior to your planned retirement date. To schedule your pre-retirement counseling session contact your retirement advisor: Faculty - Amy Ulibarri or amy.ulibarri@nau.edu Staff - Branda Brothers or branda.brothers@nau.edu Because a personalized retirement packet must be assembled please schedule your meeting at least 48 hours in advance. Q. What if I do not know when I what to retire? Once you have selected a retirement date you should notify your supervisor in writing of your retirement date. NAU requests that you provide your department as much notice as possible once you have selected your retirement date, but at least a two week notice is requested. Your department will process a retirement e-par (electronic Personnel Action Request) and submit it to the Human Resources Department. Please ensure that your department follows through with the e-par process. Important: No special parking is available for pre-retirement counseling session. Year-round, a vehicle must display a valid permit to park on campus. Temporary permits can be purchased at the kiosk located near the entrances to campus or by contacting Parking and Shuttle Services at

6 Retirement Date When choosing your retirement date you will need to consider many things such as: 4 Your age and service with your retirement plan Your service with NAU Medicare Eligibility When you intend to start taking your Social Security Your contract end date Your retirement date with NAU will be the day following your last day worked. All employees including employees who are retiring are required to work on their last day of work. To be eligible to retire from NAU and/or for most retiree benefits you will need to start receiving a benefit from a state sponsored retirement plan such as the ASRS or the Optional Retirement no later than 31 days after your last day worked. You will not be eligible for the following benefits if you fail to start receiving a benefit from a state sponsored retirement plan within 31 days of your last day worked Retiree health care benefits through either the Arizona Department of Administration (ADOA) or ASRS Retiree Accumulated Sick Leave Program sponsored by the State of Arizona Arizona Board of Regent (ABOR) benefits such as Tuition Assistance. NAU benefits such as: Aetna Retiree Life insurance NAU Retiree Association President recognition Academic Year Faculty For faculty on an academic year contract their last day worked will be their last day on contract which is normally the last day of the academic year. If you don t notify Human Resource prior to your last day worked you may not be eligible for all the benefits available to retirees. Q. When should I notify my department of my retirement date? Once you have selected a retirement date you should notify your supervisor in writing of your retirement date. NAU requests that you provide your department as much notice as possible once you have selected your retirement date, but at least a two week notice is requested. Your department will process a retirement e-par (electronic Personnel Action Request) and submit it to the Human Resources Department. Please ensure that your department follows through with the e-par process.

7 What qualifies as Retirement? What qualifies as Retirement and the benefits available to a retiree is different based on the plan or program: Social Security Medicare Northern Arizona University (NAU) and the Arizona Board of Regents (ABOR) Arizona State Retirement System (ASRS) Optional Retirement Program (ORP) Public Safety Personnel Retirement System (PSPRS) Arizona Department of Administration (ADOA) 5 Social Security You may eligible to for your full social security benefit at what is called your Full Retirement Age. Medicare You may eligible for Medicare at age 65. Medicare and Social Security are managed centrally, so you can apply for Medicare through Social Security. You can find more information about your Medicare options at Social Security Full Retirement Age is based on your date of birth. You can take a reduced benefit as early as age 62 and you can receive your maximum benefit at age 70. Year You Were Born Your Full Retirement Age 1937 or earlier and 2 months and 4 months and 6 months and 8 months and 10 months and 2 months and 4 months and 6 months and 8 months and 10 months 1960 or later 67 Contact Social Security Administration at or for more information. Medicare You may eligible for Medicare at age 65. Medicare and Social Security are managed centrally, so you can apply for Medicare through Social Security. You can find more information about your Medicare options at Contact Social Security Administration at or for more information.

8 Northern Arizona University (NAU) 6 To be considered an NAU retiree you must: have completed at least 5 years of benefit eligible employment in the Arizona university system immediately preceding retirement, begin receiving a retirement income from an Arizona university sponsored retirement program within 31 days of your last day worked, and be at least 50 years of age. If you leave the university before age 50 with at least 5 years of Arizona University System service, then you will not be eligible for benefits offered to retirees by NAU or ABOR, but may be eligible for benefits offered by the State of Arizona including the Retiree Accumulated Sick Leave (RASL) program. Retiree benefits NAU retirees are eligible for the following benefits. IT Services Retirees can continue use of their NAU as an affiliate. ITS Solution Center supports the service. Questions about your password or any other related questions should be directed to the ITS Solution Center by phone at , or toll free at NAU Bookstore Retirees receive a discount on most purchases at the NAU bookstore. Recreation/Aquatic Center Retirees may continue to receive discounted prices at these NAU facilities. Cline Library Retirees retain employee privileges at NAU s Cline Library. Educational Aid This program allows retirees and eligible dependents to take advantage of educational opportunities at any of the three State universities at reduced tuition rates. Retirees will receive the same tuition benefit they received as employees. Q. How do I continue my NAU ? To continue your NAU you need to complete the Retiree Services Application form and return it you retirement advisor.

9 Northern Arizona University Retiree Association (NAURA) As a retiree from NAU you are eligible to join NAURA. Membership dues are $15 annually or $225 for a lifetime membership. Members of NAURA are eligible for free annual parking permit. Once your NAURA membership is active, permits may be acquired through Parking Services. 7 Q. How do I join NAURA? To become a member of NAURA you will need to complete the form and send it to NAURA with a check or money order for either the annual or lifetime membership amount. Arizona State Retire System (ASRS) Normal retirement under the ASRS is based on when you began participating in ASRS: If you began ASRS participation prior to July 1, 2011 then normal retirement is defined as: Age 65 with any years of service Age 62 with at least 10 years of ASRS service 80 points (your age + years of ASRS service) If you began ASRS participation on or after July 1, 2011 then normal retirement is defined as: Age 65 with any years of ASRS service Age 62 with 10 years of ASRS service Age 60 with at least 25 years of ASRS service Age 55 with at least 30 years of ASRS service Early Retirement: A reduced benefit is available at age 50 with 5 year of ASRS service Retiree Income ASRS retirees receive monthly retirement income based on a formula that uses age, years of service, and salary to determine a pension benefit. Health Insurance Retirees may enroll in health insurance through either ADOA or ASRS. ASRS retirees enrolled in health insurance through ASRS or ADOA receive assistance with their monthly health insurance premiums based on their ASRS service. For more information on ASRS go to

10 8 Optional Retirement Plan (ORP) If you participate in the ORP then normal retirement is defined as reaching age 65. If you retire early and before age 59 ½, then you may incur tax penalties on any withdraws. Retirement Income The ORP provides a retirement income based on the total accumulation of contributions, earnings of the plan, and your investment strategies. Health Insurance ORP retirees may enroll in health insurance through either ADOA or ASRS. ORP retirees are not eligible for the Health Insurance Premium Benefit offered by ASRS Phased Retirement The Arizona Board of Regents Phased Retirement Program enables eligible ORP participants to reduce their workload and hours, remain employed for up to three years, and concurrently take distributions from their ORP retirement account(s). To participate in the phased retirement period, you must: be at least 62 years old be fully vested in the ORP enter into a written Phased Retirement Agreement with the University If you are eligible, your participation is: voluntary subject to negotiation with an approval by the applicable dean or vice president established by a binding, written legal agreement The dean or vice president retains the authority to balance college and division business continuity needs with requests for phased retirement. Consequently, the final decision is made jointly between the participant and the applicable dean or vice president. The agreement must be finalized, approved, and accepted by the University and submitted to Human Resources before the beginning of the employee s next contract period. For more information on phased retirement go to nau.edu/human-resources/benefits/retirement/phasedretirement/

11 Public Safety Personnel Retirement System Normal retirement under PSPRS is based on when you began participating in PSPRS: 9 If you began PSPRS participation prior to January 1, 2012 then normal retirement is defined as: the 1st day of the calendar month immediately following the employee s completions of 20 years of service, or if the employee is still working the employee s 62nd birthday, if the employee has 15 years of service If you began PSPRS participation on or after January 1, 2012 then normal retirement is defined as: 1st day of the calendar month immediately following the employee s completions of 25 years of service if the employee is at least 52 ½ years old. PSPRS Deferred Retirement Option Program (DROP) PSPRS members are eligible to participate in the DROP program based on when they began participating in PSPRS: Retiree benefits If you began participating in PSPRS prior to January 1, 2012 then you are eligible to participate in the DROP program once you have reach 20 years of credited service. If you began participating in PSPRS on or after January 1, 2012 then you are not eligible to participate in the DROP. PSPRS retirees are eligible for the following benefits: Income: Provides a monthly benefit based on a formula that uses years of service and salary to determine a pension benefit. This formula will vary depending on when you started with PSPRS. Health Insurance: Retirees may enroll in health insurance through either ADOA or ASRS. Health insurance premium benefits: Retirees enrolled in health insurance through ASRS or ADOA receive assistance with their monthly health insurance premiums based on their PSPRS service.

12 10 What Happens to Your NAU Benefits When You Retire If you retire or leave the university, then your voluntary benefits will end, this includes: Medical Dental Vision Life Insurance Flexible Savings Accounts Short and Long Term Disability Your coverage as an active employee will end at the end of the pay period containing your last day of employment in a benefit eligible job. Healthcare You can expect to receive a COBRA (Continuation of Benefits Reconciliation Act) packet from NAU Human Resources shortly after your last day of work. NAU is required by law to mail employees separating from the University COBRA information and enrollment forms. Life Insurance During the 31 days immediately following the termination of your life insurance coverage, you may elect to continue your current term supplemental life insurance coverage (known as porting) or you may convert it to whole life insurance. Term life insurance provides a death benefit only, while whole life provides cash value. The Hartford, Aetna Life Insurance and Unum all offer portability and conversion options. Contact your provider for more information on costs. Aetna Policy# Group or Control# Phone: The Hartford - Policy # Phone: Unum - Policy# Phone Health Care Spending Account If you currently participate in a Flexible Spending Account (FSA), be aware that when you retire, FSA benefits will end unless you have made special arrangements. Generally, only eligible medical expenses incurred between January 1 and your last day of coverage are reimbursable. You have the opportunity to continue your coverage after retirement thru COBRA. Contact ASI at or asi@asiflex.com for information on your FSA account or to enroll in COBRA for your FSA account. Disability You cannot continue short term or long term disability coverage into retirement. Your active coverage will end on your last day worked.

13 11 Vacation Up to one year of accrued vacation time will be paid out on the last paycheck. Unused vacation above the maximum will NOT be paid. Donating to Compassionate Transfer of Leave (CTL) Any hours above the maximum can be donated to NAU s Compassionate Transfer of Leave (CTL) Program prior to your last check being processed. For information on this program and how to donate, please go to Sick Leave Employees retiring with a minimum of 500 hours accrued sick leave may qualify for the Retiree Accumulated Sick Leave (RASL) program, whereby you can receive partial payment for your unused sick leave hours. Other Payroll Deductions Additional payroll deductions such as A+ Auto, One AZ Credit Union, United Way, NAU Recreation Center/Wall Aquatic Center, or any other payroll deduction will end on the last paycheck. It is your responsibility to contact any vendors to arrange for continuation of payment. W-2 for Final Year of Employment NAU offers electronic delivery of your W-2. These W-2s are generally available earlier than the forms that are mailed. If you signed up for and received your W-2 electronically last year, you do not need to sign up again this year. Your information will be carried forward as it was last year until you make a change. For more information on how to sign up for electronic delivery visit Resources/Employee-Resources/Payroll-information/ If you do not sign up to receive your W-2 electronically, your paper W-2 will be mailed to your current mailing address as listed in LOUIE. If there is no mailing address listed, it will be mailed to the current home address listed in LOUIE. To check and/or update your address, log in to LOUIE ( and on your self-service page choose Campus Personal Information --> Addresses. Please make any necessary corrections to your address as soon as possible.

14 Retiree Accumulated Sick Leave Program (RASL) You are eligible to receive payment for accumulated (unused) sick leave if you meet the all following eligibility requirements: 12 Have at least 500 hours of unused sick leave available for use at the time of separation. Establish an effective retirement date from a state sponsored retirement system (ASRS, PSPRS or University ORP) that is effective within 31 calendar days after the date of separation from employment (last day worked). Must complete and submit the required RASL Program forms to HR Benefits within 150 calendar days of the effective date of retirement. Apply for your RASL benefit within 180 days of your effective retirement date. Your application must include RASL Program application You RALS application must include the following University RASL Checklist Federal and State tax forms 457 Deferral Form optional (send to Nationwide) Voided check or letter from bank if you choose direct deposit HR Benefits will complete the employer sections and forward the application packet to the Arizona Department of Administration, General Accounting Office (GAO), within 180 calendar days of the effective date of retirement. How your RASL benefit is calculated The benefit value is calculated by taking the hourly rate of pay on the date of termination, multiplied by the number of unused sick leave hours at termination (up to 1,500 hours), multiplied by one of the following percentages: 25 percent (at least the minimum 500 but less than 750 sick leave hours); or 33 percent (at least 750 but less than 1,000 sick leave hours); or 50 percent (at least 1,000 up to the maximum of 1,500 sick leave hours). Hours over 1,500 will be forfeited and the maximum benefit is $30,000. Example Calculation If a retiree had a balance of 1,500 sick leave hours and separated with an hourly rate of pay of $20.00 an hour, his or her total benefit would be calculated (1,500 x 20 x 50%) = $15,000. RASL Payments The first RASL payment is normally issued days after the application packet has been received by the GAO. Subsequent RASL payments are issued on the second and third anniversaries of the first payment. The first payment only can be deferred to the retired faculty or staff member s State of Arizona Deferred Compensation 457(b) Plan account with Nationwide Retirement Solutions. First payments rolled into a deferred compensation account are subject only to Social Security and Medicare taxes. All other payments are subject to Social Security, Medicare, federal and Arizona taxes. RASL payments are mailed directly to retired faculty or staff member s home or if authorized, electronically deposited to their designated bank account(s). For more information on the RASL program go to gao.az.gov/payroll/ras l

15 Retiree Health Coverage Choosing the right health care plan is one of the most important decisions you need to make at retirement. A few things to consider might be Are you eligible for Medicare? What monthly premium can you afford? Do you need coverage for a dependent? Are you eligible for coverage under your spouse s plan? Do you plan to spend all of your time in Arizona? Do you need prescription drugs? Are the doctors you see part of the plan? Medicare Gaining a basic understanding of Medicare can help you choose the retiree medical coverage that is right for you and your dependents. What is Medicare? Medicare is health insurance for people who are age 65 or older, under 65 with certain disabilities, or any age with End-stage Renal Disease (permanent kidney failure). There are several main types of Medicare. Medicare Part A helps cover inpatient care in hospitals, skilled nursing facilities, hospice and home health care. Generally there is no monthly premium if you qualify and paid Medicare taxes while working. Medicare Part B helps cover medical services like doctors services, outpatient care and other medically necessary services that Part A doesn t cover. You need to enroll in Medicare Part B and pay a monthly premium, determined by your income, along with a deductible. Many people also purchase a supplemental insurance policy, such as a Medigap plan, to handle any Part A and B coverage gaps. Medicare Part D is prescription drug coverage and is available to everyone with Medicare. It is a separate plan provided by private Medicare-approved companies, and you must pay a monthly premium. 13 Q. What is a Medicare Advantage Plan? Medicare Advantage Plans, also known as Medicare Part C, are combination plans managed by private insurance companies approved by Medicare. They typically are a combination of Part A, Part B and sometimes Part D coverage, but must cover medically necessary services. These plans have discretion to assign their own copays, deductibles and coinsurance. Getting Started with Medicare Medicare sends you a questionnaire about three months before you re entitled to Medicare coverage. Your answers to these questions, including whether you have group health insurance through an employer or family member, help Medicare set up your file and make sure your claims are paid correctly. If you do not receive a questionnaire from Medicare you should contact Medicare no later than 60 days before your turn 65. There might be penalties if you do not sign up for Medicare when you are initially eligible.

16 Healthcare Premium Benefit The Healthcare premium benefit through the ASRS helps reduce your monthly health insurance (medical and dental) premiums. 14 Eligibility If you retire from ASRS or PSPRS with more than 5 years of service you may be eligible for the healthcare premium benefit from ASRS. ORP retirees are not eligible for the healthcare premium benefit. The healthcare premium benefit is available for retirees enrolled in medical and dental plans through both ASRS and ADOA. The amount of the benefit to which you are entitled is dependent upon: years of credited service coverage level (single or family coverage) Medicare eligibility Without Medicare With Medicare A & B Combinations Years of Service Retiree Only Retiree & Dependents Retiree Only Retiree & Dependents Retiree & Dependents One with Medicare the other(s) without Retiree & Dependents with Medicare other dependent without Arizona State Retirement (ASRS) Members $75.00 $ $50.00 $85.00 $ $ $90.00 $ $60.00 $ $ $ $ $ $70.00 $ $ $ $ $ $80.00 $ $ $ $ $ $90.00 $ $ $ $ $ $ $ $ $ Public Safety Personnel Retirement System (PSPRS) Members Not applicable $ $ $ $ $ $ To find out the exact amount of your premium benefit program and more details on the premium benefit program contact ASRS at or (800)

17 15 Health Care Options Available to NAU Retirees Retirees of ASRS, ORP or PSPRS may enroll in Medical, Dental and Vision coverage through following: Arizona Department of Administration (ADOA) Arizona State Retirement System(ASRS) Continuation of Benefits Reconciliation Act (COBRA) To be eligible to enroll in retiree health care you must begin receiving a retirement income through a state sponsored plan within 31 days of their retirement date. What is the difference between ADOA and ASRS? ADOA and ASRS are both state agencies, but they operate separately. They each have their own: Plans Coverage levels Administrative rules and processes Enrollment forms Open enrollment periods You can enroll in plans from either ADOA or ASRS or both. For example you could elect dental coverage through ADOA and medical coverage through ASRS.

18 16 Healthcare Options through Arizona Department of Administration (ADOA) NAU retirees and their covered dependents may enroll in health care coverage under the following plans administered by ADOA. Medical Dental Vision NAU PPO BCBSAZ State PPO - Aetna, BCBSAZ and United Health Care State EPO - Aetna, BCBSAZ, CIGNA and United Health Care Delta Dental Total Dental Avesis NAU PPO - BCBSAZ Retirees may elect the NAU PPO through BCBSAZ administered through ADOA. NAU manages the plan design and determines the premiums, but ADOA manages enrollment, eligibility and premiums collection. This is the same plan offered to active employees, but retirees have a different group number. There are Medicare and Non-Medicare rates, but this plan is not designed to be a Medicare supplement plan and is not priced as a Medicare supplement plan. Retirees on the NAU BCBS plan are eligible for the wellness classes and short-term counseling and referral services offered by the Employee Assistance and Wellness office (EAW). Retirees enrolled in state health insurance plans are eligible to attend any of the Wellness classes sponsored by EAW. For more information on the EAW programs go to ADOA administrative rules If you decline both ADOA medical and dental insurance plans, you will not be able to obtain coverage through ADOA at a later date. You must remain enrolled in either medical or dental coverage in order to elect coverage in the future from ADOA. Qualified Life Event (QLE) If you have a Qualified Life Event (QLE) you can change your coverage. You must notify ADOA within 31 days of the event. Some examples of QLE s include: Medicare eligibility (Retiree or Spouse turns age 65) Death (Retiree or Spouse) Dependent becomes ineligible Dependent becomes eligible (marriage, new child, etc.) Open enrollment Open Enrollment is held each year in the fall and is your opportunity to change your health care elections with ADOA without a QLE. Watch for open enrollment materials mailed in September or October of each year from ADOA. Depending on the year, you may be required to participate in open enrollment to continue your benefits. It is your responsibility to read announcements from ADOA, and participate in a mandatory or positive open enrollment. Be sure to keep your address up to date with ADOA because NAU Human Resources does not transfer updated address information to ADOA\Benefit Options. Medicare and ADOA Plans All the plans offered by ADOA have Medicare and Non-Medicare rates. ADOA requires that you enroll in Medicare Part A & B, if eligible. You and your covered dependents should provide ADOA a copy your Medicare card at retirement or as soon as you are enrolled in Medicare. Once you are enrolled in Medicare Part B in retirement it becomes your primary plan.

19 Enrolling in healthcare coverage with ADOA Your NAU Benefit Advisor will provide you an enrollment form via prior to your retirement counseling session. You should return the completed enrollment form to your Benefit Advisor, who will submit it to ADOA. 17 Effective date of coverage Active coverage will continue through the end of the period of your last day worked. Retiree coverage will begin the first day of the pay period following your last day work. Paying your monthly premium for ADOA coverage If possible your premium will be deducted from your monthly payment from ASRS. It can take several months for the premium to be deducted from your monthly payment. Once your deductions begin, you will have retro deductions for any payments missed. You will be sent an invoice if you are an ORP retiree or if your monthly benefit payment from ASRS is less than your healthcare premium 2017 Healthcare Guide ADOA provides a detailed guide describing the plans they offer to retirees. To review the guide go to

20 2017 Monthly Retiree Premiums for ADOA Plans 18 Medical Without Medicare Coverage Level NAU BCBSAZ State PPO State EPO Retiree $ $ $ Retiree + One $1, $2, $1, Family $2, $2, $1, With Medicare Coverage Level NAU BCBSAZ State PPO State EPO Retiree $ $ $ Retiree + One (both with Medicare) $1, $1, $ Retiree + One (one with Medicare) $1, $ $1, Family Two (at least two with Medicare) $1, $1, $1, Dental Coverage Level Delta Dental Total Dental Retiree $35.94 $8.99 Retiree + Adult $ Retiree + Child $ Family $ $26.97 Vision Coverage Level Avesis Retiree $3.99 Retiree + Adult $12.94 Retiree + Child $12.76 Family $16.10

21 Healthcare options through Arizona State Retirement System (ASRS) 19 NAU retirees and their covered dependents may enroll in the following medical and dental plans. All Medical plans are through UnitedHealthCare.. Medical Medicare Eligible Plans Group Medicare Advantage (HMO) Plan Senior Supplement Plan Non-Medicare Eligible Plans Choice Plan (In-State Only) Choice Plus PPO (Out-of-State) Dental Nationwide Freedom Basic Freedom Advance in Arizona Only DHMO Dental Plan 220 Heritage Secure You may also enroll in prepaid dental, but it is only available in the following states: CA,CO,FL,GA,KS,MO, NE,NM,OH,OK,OR,TX & UT For more information on the health care options available through ASRS go to ASRS administrative rules If you have a Qualified Life Event (QLE) you can change your coverage. You must notify ASRS within 31 days of the event. Some examples of QLE s include: Medicare eligibility (Retiree or Spouse turns age 65) Death (Retiree or Spouse) Dependent becomes ineligible Dependent becomes eligible (marriage, new child, etc.) Open Enrollment Watch for open enrollment materials mailed in September or October of each year from ASRS. Depending on the year, you may be required to participate in open enrollment to continue your benefits. It is your responsibility to read announcements from ASRS, and participate in a mandatory or positive open enrollment. Note: This is a different communication and enrollment, then what is sent by ADOA if enrolled in their plans. Medicare There are separate medical plans (not just premium rates) based on Medicare eligibility. Becoming Medicare eligible is considered a Qualified Life Event. When you or your covered dependents become Medicare eligible you must enroll in one of the ASRS Medicare Eligible Medical Plan it is not automatic. Coverage under the Non- Medicare Eligible plan will end the month before you become Medicare eligible, and you will not have medical coverage unless you enroll in a Medical Medicare Eligible Medical Plan In order not to lose medical coverage, be sure to contact ASRS 90 days before you are eligible for Medicare so you can enroll in one of the ASRS Medicare eligible plans.

22 COBRA Coverage You can expect to receive a COBRA (Continuation of Benefits Reconciliation Act) packet shortly after your last day of work. NAU is required by law to mail employees separating from the University with COBRA information and enrollment forms. 20 You will receive COBRA information even if you enrolled in retirement coverage with ADOA or ASRS. If you have made an election to continue medical coverage as a retiree, please disregard this packet. If you want to enroll in COBRA coverage instead of electing coverage through ADOA or ASRS you must return the enrollment form to Human Resources by the deadline specified in the letter COBRA Monthly Medical Premiums Medical Coverage Level NAU BCBSAZ State PPO State EPO Retiree $ $ $ Retiree + One (both with Medicare) $1, $ $ Retiree + One (one with Medicare) $1, $1, $1, Family Two (at least two with Medicare) $2, $1, $1, Dental Coverage Level Delta Dental Total Dental Retiree $36.66 $9.17 Retiree + Adult $61.69 $17.86 Retiree + Child $77.14 $18.34 Family $ $27.51 Vision Coverage Level Avesis Retiree $4.07 Retiree + Adult $13.02 Retiree + Child $13.20 Family $16.43

23 21 Other Coverage Options There are other healthcare options in addition to those offered to NAU retirees that you may want to investigate before enrolling in Retiree Health Care. Coverage under your spouse s plan Medicare Part B & C Medicare Subsidy\ Medi Gap Plan Health Care Market Place Retiree Life Insurance Employees enrolled in Aetna Life Insurance upon retirement may continue $15,000 of coverage with Aetna through NAU. The annual premium for 2017 is $190. Premiums are subject to change. Coverage is renewed each year with billing notice mailed from NAU. To elect coverage, complete the Retiree Life Insurance Enrollment Form and return it to your Benefit Advisor.

24 Working After Retirement 22 Under the IRS regulations that govern all tax-deferred retirement plans, there can be no oral, written or implied agreement to work after retirement made before your retirement date. Before you retire, please ensure that you understand the post-retirement employment requirements for your specific retirement plan. ASRS Returning to work for another ASRS employer including NAU can affect your monthly benefit payments. You should contact ASRS at Go to to learn about the ASRS return to work rules PSPRS Returning to work for another PSPRS employer including NAU can affect your monthly benefit payments. Review information on the PSPRS return to work rules ORP Under the ORP Plan you will not be considered as retired if you have an expressed or implied contract (written or verbal) for re-employment at a future date. For more information review the ORP guide at

25 NAU Retirement Checklist There is a lot to do when you are retiring and this checklist can help your keep track of what you have done and what you still need to do. 23 Retirement Date Contact NAU Benefits Advisor for counseling appointment, six months before your retirement date. Faculty - Amy Ulibarri or amy.ulibarri@nau.edu Staff - Branda Brothers or branda.brothers@nau.edu Notify your department in writing of your retirement date. Retirement Income You must establish retirement payment(s) from a State of Arizona Retirement Plan within 31 days of your last day worked to be eligible for ADOA, ABIR and the Retiree Accumulated Sick Leave Program (RASL). Social Security Administration: or Arizona State Retirement System (ASRS): Phoenix Area: or Outside Phoenix or Public Safety Personnel Retirement System: or Fidelity: Chad McLain or chad.mclain@fmr.com TIAA: Donn Fitch , ext or or dfitch@tiaa-cref.org Health Care Elect your Health Care Coverage (medical dental & vision) for retirement. Medicare: Contact Social Security Administration at or ADOA\ Benefit Options: Submit enrollment form to your benefit advisor to elect coverage. ASRS. Submit enrollment form to ASRS to elect coverage. Other Coverage: Enroll in other health care coverage through a broker or health care exchange. Life Insurance Elect retiree life insurance if eligible or port or convert your active coverage. Aetna Retiree Life: Submit completed Retiree Life Insurance Enrollment form to your benefits advisor along with annual premium payment. (optional) Continue Active Coverage: Submit application to Hartford, Aetna, or Unum to port or convert Basic or Supplement Life Insurance within 31 days of retirement (optional) Other RASL: If eligible, submit completed RASL application and other required forms to your benefit advisor. Go to for more information on the RASL Program Service: Submit the NAU Retiree Services Application to retain access (optional). NAU Retirees Association: Submit completed application with payment for fees to NAURA (optional) Retirement Recognition: Return the Retirement Recognition form to your benefit advisor if you do not want your retirement recognized. For more information about the retirement process with NAU go to nau.edu/human- Resources/Benefits/Retirement/Prepare-for-Retirement/ 24

26 Forms to Complete The retirement process includes the completion and submission of several forms. Benefit Options Retiree\LTD Enrollment Form Link to form Who should complete this form You should complete this form if you want to enroll in medical (including the NAU BCBSAZ plan), dental or vision coverage through the Arizona Department of Administration Benefit Option program. Where to submit this form Return the completed form to your retirement advisor. You may also mail the form to: Human Resources, PO Box 4113 Flagstaff, AZ or fax the form to Deadline This form should be submitted within 31 days of your last day worked Arizona State Retirement System (ASRS) Enrollment Form Link to form Who should completed this form You should complete this form if you want to enroll in medical and\or dental coverage through ASRS. Where to submit this form Return this form directly to: Arizona State Retirement System, PO Box Phoenix, AZ Deadline This form should be submitted within 31 days of your last day worked Aetna Retiree Life Insurance Enrollment Form Link to form You must be enrolled in Aetna Life Insurance at the time of retirement to be eligible for this benefit. Who should complete this form You should complete this form if you want to enroll in retiree life insurance through Aetna. Where to submit this form Return the completed form to your retirement advisor. You may also mail the form to: Human Resources, PO Box 4113 Flagstaff, AZ or fax the form to Deadline This form should be submitted within 31 days of your last day worked

27 25 Retiree Recognition Link to form Who should complete this form You should complete this form if you DO NOT want NAU to recognize your retirement. If we do not receive this form then you will be invited to the retiree luncheon. Where to submit this form Return the completed form to your retirement advisor. You may also mail the form to: Human Resources, PO Box 4113 Flagstaff, AZ or fax the form to Deadline You should submit this form as soon as possible if you do not want your retirement recognized. Retirees Association (NAURA) Membership Enrollment Form Link to form Who should complete this form You should complete this form if you want to enroll in the Retiree s Association. Where to submit this form Return the completed form along with payment for your membership directly to NAURA: Treasurer, NAU Retiree s Association, NAU Box 5601 Flagstaff, AZ Deadline There is not deadline to submit this form. You may enroll in NAURA at any time. NAU Retiree Services Application Form Link to form Who should complete this form Complete this form if you want to continue your NAU . Where to submit this form Return the completed form to your retirement advisor. You may also mail the form to: Human Resources, PO Box 4113 Flagstaff, AZ or fax the form to Deadline There is not deadline to submit this form. You may enroll in NAURA at any time.

28 Retiree Accumulated Sick Leave (RASL) Application Link to form Who should complete this form If you are eligible to receive a benefit from the State of Arizona s RASL program you must submit an application that includes the following original forms RASL Program application University RASL Checklist Federal and State tax forms 457 Deferral Form optional (send to Nationwide) Voided check or letter from bank if you choose direct deposit Where should these forms be submitted Return you application to your retirement advisor. You may also mail the form to: Human Resources, PO Box 4113 Flagstaff, AZ The State of Arizona requires that you submit the originals of all forms. Faxed or scanned copies will not be accepted. Deadline We encourage you to submit your application within 31 days of your last day worked because it can take up to 90 days from the time your application is submitted to the state for you to receive your first payment. The State will accept your application if it is submitted within 180 days of your last day worked. Important: To qualify for a RASL benefit you must begin receiving a re-occurring payment within 31 days of your last day worked. 26 Retirement Income Human Resources does not coordinate this form. You must contact your retirement vendor directly. Provider Phone\Fax \ Website Arizona State Retirement System (ASRS) Phoenix Area Outside Phoenix Public Safety Personnel Retirement System (PSPRS) Fidelity NAU Representative -Chad McLain TIAA NAU Representative -Donn Fitch , ext nb.fidelity.com/public/nb/aus/home chad.mclain@fmr.com Nationwide (457) NAU Representative - Caleb Lennon lennonc@nationwide.com Who should complete this form All retirees need to complete this form with their retirement vendor To qualify for retiree benefits such as health care or the RASL benefit you must begin receiving a re-occurring payment within 31 days of your last day worked. Where should these forms be submitted This for submit should be submitted based on the instruction provided by your retirement vendor. Deadline This form should be submitted within 31 days of your last day worked and the start date should be no later than 31 days of your last day worked To be eligible to retire from NAU and/or for most retiree benefits you will need to start receiving a benefit from a state sponsored retirement plan such as the ASRS or the Optional Retirement no later than 31 days after your last day worked.

29 Benefit Contact Information 27 Plan\Provider Phone\Fax \Website Northern Arizona University Human Resources PO Box 4113 Flagstaff, AZ nau.edu/human-resources State of Arizona(ADOA) Benefit Services Division - Benefit Options 100 N 15th Ave #103 Phoenix, AZ Retirement Plans or Fax Arizona State Retirement System(ASRS) Phoenix Outside Phoenix Public Safety Personnel Retirement System (PSPRS) Fidelity Chad McLain Planning and Guidance Consultant TIAA Donn Fitch, Planning and Guidance Consultant Nationwide Retirement Solutions Caleb Lennon, Retirement Specialist Health Care BenefitsIssues@azdoa.gov chad.mclain@fmr.com Cell Office dfitch@tiaa-cref.org lennonc@nationwide.com NAU PPO Blue Cross Blue Shield Policy# 0003 Customer Service Flagstaff Claims Office Delta Dental Policy # STATE9 Total Dental Administrators Policy # Avesis, Inc. Advantage Policy # Plan # 938 Discount Policy # Plan # 9000 Life Insurance The Hartford Policy # Aetna Life Insurance Policy # UNUM Provident Policy # Social Security and Medicare 2715 S Woodlands Vlg B Flagstaff, AZ Other Contacts ASI (Flexible spending accounts) NAU Retirees Association (NAURA) P.O. Box 5601Flagstaff, AZ A+ Auto & Home Insurance (formerly California Casualty) Fax Arizona State Savings & Credit Union or Benefit Logic 2321 N. 4th Street Flagstaff, AZ nau.edu/naura/ info@benefitlogic.net