Section 3: Benefits Overview

Transcription

1 Section 3: Benefits Overview You are officially an employee of the State of Tennessee. By working in the higher education field, TTU is offering you benefits provided by both our state benefits programs as well as the Tennessee Board of Regents (TBR) optional benefit programs. Outlined below you will see what the State and TBR have available for you and your family. STATE BENEFITS State Benefits Administration offers the following comprehensive insurance coverage: Health Insurance Dental Insurance Vision Insurance Basic Life Insurance Accidental Death and Dismemberment Insurance Optional Group Term Life Optional Accidental Death Long-Term Care Insurance Employee Assistance Program TBR BENEFITS The Tennessee Board of Regents offers a range of optional and voluntary benefits to employees and their families including: Flexible Spending Accounts Long-Term Disability It is important that you understand and make informed decisions now since some of these benefits are only available during your initial eligibility period. (31-days from your date of hire) Changes in benefits may be made during the annual enrollment transfer period, which takes place every fall. Announcements are made via Tech Times. Always check your account for special communications made through your Tech Times subscription. Notice to TennCare Enrollees You must contact your caseworker at TennCare within 10 days of your date of employment. Report to TennCare your new job, salary and that you have access to medical insurance with your new employer. Employees cannot be enrolled in both TennCare and a State Group Health Insurance Plan.

2 TTU SUMMARY OF BENEFITS FOR EMPLOYEES This information is to help you get a brief overview of the benefits offered by Tennessee Tech University. We are proud of the extensive benefits offered by our University. If you have additional questions, please do not hesitate to contact us at TTUBenefits@tntech.edu. Additional contact information is on the last page. We will respond as quickly as possible. Benefit Eligibility Criteria Conditions Payday Annual Leave Clerical & Staff Administrative & 12 month Faculty Sick Leave If employment begins and all mandatory paperwork completed by the 15 th of the month. If employment begins after the 15 th or mandatory paperwork completed after the 15 th of the month. Part time employees leave is prorated based on hours worked. 9/10 month Faculty are not eligible for Annual Leave Direct Deposit is Required. Payday is the last working day of the month. Paid the 1 st month of employment at the end of the month. 1 st and 2 nd month wages are paid the 2 nd month of employment at the end of the month. 0 5yrs service, 7.5 hours/month 5 10yrs service, 11.3 hours/month 10 20yrs service, 13.2 hours/month 20+yrs of service, 15 hours/month 15 hours/month 7.5 hours/month Holidays Immediate 13 paid holidays/year Group Health Insurance Effective date is the 1 st day of the month following one full month of employment. Part time employees who are working a minimum of 30 hours per week are eligible. The amount you pay in premiums depends on the plan you choose and the number of dependents that will be covered. Plan Comparison: benefit_grid_2017_st_he.pdf 2017 Premiums: premium_st_active_2017.pdf Retirement Immediate Employer/Employee paid contributions: Reference the Hybrid Pension Plan at the following: Clerical & Support Staff must enroll in TCRS. Faculty & Administrative Staff may choose Tennessee Consolidated Retirement System (TCRS) or Optional Retirement Plan (ORP). TCRS ORP Comparison Basic Group Term Life and Accidental Death and Dismemberment Insurance Effective date is the 1 st day of the month following one full month of employment. ORP has three vendors TIAA CREF, VOYA and VALIC Minnesota Life. TTU provides $20,000 of Term Life and $40,000 of Accidental Death and Dismemberment Insurance. Optional Accidental Death and Dismemberment Insurance Effective date is the 1 st day of the month following one full month of employment. Minnesota Life. Employee Pays 100% of premium Feb 2017

3 TTU SUMMARY OF BENEFITS FOR EMPLOYEES Benefit Eligibility Criteria Conditions Dental Insurance Effective date is the 1 st day of the month following one full month of employment. Employee Pays 100% of premium Two Plans to choose from: documents/benefit_grid_2017_dental.pdf Vision Insurance Effective date is the 1 st day of the month following one full month of employment Premiums: premium_dental_2017.pdf Employee Pays 100% of premium Two Plans to choose from: EyeMed Vision Care: benefit_grid_2017_vision.pdf EyeMed Vision Premiums: documents/premium_vision_2017.pdf Long Term Disability Effective date is the start date or the 1 st day of the following month. Employee Pays 100% of premium Prudential Insurance Co. Long Term Care Insurance Immediate Employee Pays 100% of premium Med America, provider, days to enroll, as new hire. Eligible employees may apply at any time during the year by medical underwriting. Optional Term Life 1 st day of month after completed 3 full calendar months of Employee Assistance Program employment. Immediate Employee Pays 100% of premium Minnesota Life Employer paid Flexible Spending Accounts Longevity Pay 401k Plan Traditional & Roth 1 st of month after 30 days employment Completion of 36 months of service for regular full time employees, 9 month faculty 82.1% or more part time employees. 1 st of the month after 30 days of application receipt Eligible employees shall receive longevity pay at $100 per year of creditable service up to a maximum of 30 years. TTU matches up to $50 per month for either Traditional or Roth Empower (Formerly Great West) Plan 1 st of the month after 30 days of application receipt No Employer Match Empower Compare the 401K & 457 Plans 403(b) Plans 1 st of the month after receipt of application No Employer Match Three Vendors: TIAA CREF, ING, VALIC Feb 2017

4 TTU SUMMARY OF BENEFITS FOR EMPLOYEES Benefit Eligibility Criteria Conditions Educational Assistance Immediate Full time regular employees can receive paid tuition for one class per term. TTU Policy: page 9 yee_benefits.pdf Immediate Approximately ½ tuition reduction available for spouse and dependents of full time employee. After 6 months Staff scholarship for up to 6 credit hours for Clerical & Support. After 1 year Prorated tuition reduction is available for spouse and dependents of part time employee. Parking Immediate Available with annual purchase of a parking pass. May be a pre tax payroll deduction. Two parking zones GOLD or PURPLE Athletic Facilities Immediate Fitness Center memberships and athletic tickets available by payroll deduction. You also receive a 2 week free trial upon being hired. The above summarized table is subject to change at any time. For exact provisions refer to the TTU Administrative Policies and Procedures manual. These benefits are effective as of January 1, If you have additional questions or need to make an appointment, please do not hesitate to contact us. We will respond as quickly as possible. TTUBenefits@tntech.edu TTU Benefits Department Contacts: Sindi Dotson Benefits Specialist sdotson@tntech.edu Annie Butler Assistant Manager, Payroll & Benefits eabutler@tntech.edu Gaile Palmer Manager, Payroll & Benefits gpalmer@tntech.edu Feb 2017

5 You are now ready to view the State Group Insurance Program Benefits Orientation. This is what you will need to do: 1. Review: 2. I recommend you also reference the Enrollment Guide as you listen. 3. You can also watch the Member video for a fast overview about our excellent Employee Assistance Program (EAP) Play/2f5374c2f74e4ad2a8467fe2dd13e1fa1d 4. Partnership Promise Information Go to and click on ALEX for State and Higher Education. This tool will walk you through your health plan options and estimated costs based on information you enter into the decision tool. The remaining portion of this section includes informative material pertaining to additional benefit options TBR has available. Payflex Flexible Spending Accounts Prudential Long-Term Disability Long Term Care

6 Employees can enroll in State insurance benefit options online through Employee Self Service (ESS). Enrollment must be completed within 31 days of your hire date. Remember - If you choose to cover your spouse or children, you will need to upload documentation within the 31 days to verify their relationship to you. Let s enroll! Online enrollment is easy and convenient. Simply log on to: The username and temporary password will be forwarded to you by TTU Benefits, you should be getting an within a few days from receiving our Benefits Guide. Please login and enroll prior to your benefits enrollment session. You will use the temporary password until Edison prompts you to change your password. Be sure to retain new password information, as you will need it again for open enrollment. Under My Page navigate down to My Benefits, select Benefits Enrollment. Click the Select button. This will open the main Event page. Begin with the Medical Edit button. Follow the prompts to make your selections and the system will take you through the rest of the process. Select your confirmation to be sent to your , be sure to enter your address. It is important you forward your of the confirmation of enrollment immediately upon receipt to ttubenefits@tntech.edu. Special Notation: It is okay to click the back arrow to go back to the previous screen. After loading dependent information be sure to check their box when electing them for a specific benefit. Be sure to enter all dependents social security numbers. Each benefit can establish its own selection level. Whichever level you choose for health, you will have to choose for Basic Life. Be sure to click the Submit button when you complete enrollment.

7 New Employees and Newly Covered Members New employees and newly covered members (and covered spouses if applicable) who enroll in the Partnership PPO or Wellness HealthSavings CDHP must complete the following requirements within 120 days of their insurance coverage effective date to fulfill the Partnership Promise: Complete the online Well-Being Assessment at You will also need to get a Biometric Health Screening completed, please go to for more information. Both requirements must be completed within 120 days of your insurance coverage effective date. New Hire/Newly Covered Member Coverage Effective Date New Hire/Newly Covered Member 120-Day Deadline for WBA and Biometric Screening January 1 April 29 February 1 May 30 March 1 June 28 April 1 July 29 May 1 August 28 June 1 September 28 July 1 October 28 August 1 November 28 If your insurance coverage effective date is between September 2, and December 31, you will not have to complete the Partnership Promise requirement for new members. Go to to print a handout to help you keep track of your requirements and when you must complete them.

8 PARTNERSHIP PROMISE FOR 2017 NEW MEMBERS IMPROVE YOUR STATE OF HEALTH A Healthier Lifestyle Starts With a Program Designed to Fit You Congratulations on choosing either the Partnership Promise PPO or the Promise HealthSavings CDHP and taking a more active role in your health! The Partnership Promise aims to help you stay healthy and to slow or stop the progression of disease if you are currently living with chronic illnesses. New Employees and Newly Covered Employees or Spouses (after 1/1/17) enrolled in the Partnership Promise PPO or the Promise HealthSavings CDHP must complete the requirements of the Partnership Promise each year they are enrolled. The Partnership Promise PPO and the Promise HealthSavings CDHP options allows you to pay less for your coverage 1 by taking an active role in your health and fulfilling the Partnership Promise. The Partnership Promise is an annual commitment. The Partnership Promise requirements may change from one year to the next. 1 State/higher education employees enrolled in the Promise HealthSavings CDHP: If your coverage effective date is September 2 through the end of the year, you will not receive the state contribution towards your HSA. New Member 2017 Partnership Promise Checklist 2 New members and their covered spouses must only do TWO things: Complete the online Healthways Well-Being Assessment (WBA) Get a biometric health screening Both requirements must be completed within 120 days of your insurance coverage effective date. 2 If your insurance coverage effective date is between September 1, 2017 and December 31, 2017, you will not have to complete the 2017 Partnership Promise. Online Well-Being Assessment The online Well-Being Assessment (WBA) summarizes your overall health and offers steps you can take to improve. You ll learn more about your physical, emotional and social health and how your lifestyle habits affect your overall well-being. Visit and click on My Wellness Login at the top of the page to access the WBA. The WBA must be completed within 120 days of your coverage effective date. More information can be found on the ParTNers for Health website under the 2017 Partnership Promise link. A chart showing the coverage effective date and the 120 days deadline is included on the website. Biometric Health Screening New employees and their covered spouses must get a biometric health screening. There are two ways. 1. You may participate in an onsite screening. To see a complete list of locations and dates and to schedule your onsite screening, go to In the Quick Links box, click on Complete your Biometric Screening. 2. You may go to your doctor with your Physician Screening Form. Take your form to your next appointment for your doctor to fill out. Then you or your doctor s office must return the form to Onsite Health Diagnostics (OHD). Go to go to the Quick Links box and select Complete your Biometric Screening. You may use biometrics up to one year prior to your coverage effective date. Be sure to send your completed form within 120 days of your insurance coverage effective date Call Center Hours: Monday-Friday: 8:00 a.m. to 8:00 p.m. (Central)

9 State and Higher Education Employees It s easy to save on health care and dependent care PayFlex Flexible Spending Account (FSA) Want to reduce your taxable income and increase your take home pay? Enroll in an FSA and start saving money on eligible health care and/or dependent care expenses. Great reasons to enroll in a health care FSA Contribute pretax dollars from your paycheck, up to the Internal Revenue Service (IRS) limit of $2,550.* Your full contribution is available at the start of the plan year. If you and your spouse both have a health care FSA, you can each contribute up to the IRS limit. Pay for eligible health care expenses for you, your spouse and/or your tax dependents. Such expenses may include: --Copays, coinsurance and deductibles --Dental expenses like orthodontia, crowns and bridges --Vision expenses like LASIK laser eye surgery, glasses and contacts --Prescription drugs and over-the-counter (OTC) items** What are some benefits to enrolling in a dependent care FSA? Contribute pretax dollars from your paycheck, up to the IRS limit of $5,000.* Funds are for your dependent(s) age 13 or younger. Or a spouse or dependent incapable of self-care. Pay for eligible child and adult care expenses, such as: --Day care --Before and after school care --Preschool and nursery school --Summer day camp Meet Pete, our interactive PayFlex adviser! Are you considering a PayFlex account? Not sure how much to contribute? Or how much you ll save? Pete, our interactive adviser, is here to help. He s friendly and ready to help you understand the benefits of enrolling in a pretax account and how much to contribute. Visit payflex.jellyvisionconversation.com to meet Pete and get started today. * These limits are subject to change, and some employers may set a lower limit. Please check your plan details for how much you can contribute. **You ll need a written prescription for OTC drugs and medicine (7/16)

10 Pay the PayFlex way PayFlex makes it easy to pay for your eligible expenses. Use the PayFlex Card, your account debit card: When you use the PayFlex debit card, your expense is automatically paid from your FSA. Pay yourself back: Pay for eligible expenses with cash, check or your personal credit card. Then submit a claim to pay yourself back. You can even have your claim payment deposited directly into your checking or savings account. Pay your provider: Use PayFlex s online feature to pay your provider directly from your account. Quick tip: Save your itemized statements and detailed receipts for your expenses, as well as your Explanation of Benefits from your insurance carrier. Things to keep in mind View the IRS contribution limits and a list of common eligible expense items on the PayFlex member website. You can carry over up to $500 in unused health care FSA dollars to the next plan year. Check your plan details to confirm. You can change your contribution if you have a change in status.** Such as marital and employment status, number of tax dependents, etc. Specific to a dependent care FSA: To use your dependent care funds, you must be working. If you re married, your spouse must either be working, looking for work, a full-time student or incapable of self-care. You can change your contribution if: --There is a change in your provider --There is a change in the cost for a provider Questions? Visit stateoftn.payflexdirect.com, or call us directly at We re here to help Monday Friday, 7 a.m. 7 p.m. CT, and Saturday, 9 a.m. 2 p.m. CT. It s a simple tap with the PayFlex Mobile app Manage your account and view alerts Snap a photo of your receipts to submit claims View PayFlex debit card transactions View common eligible expense items, and more Note: Standard text messaging and other rates from your wireless carrier may apply when using the PayFlex Mobile app. *If your plan allows you to carry over unused health care FSA funds, the grace period doesn t apply. ** You must apply for a change in your election through your employer. See your employer s Summary Plan Description for specific details about your plan. PayFlex Systems USA, Inc. This material is for informational purposes only. It doesn t contain legal or tax advice. The information describes the Flexible Spending Account ( FSA ) in general terms. FSA plans are governed by the rules of Section 125 of the Internal Revenue Code and will be administered in accordance with those rules. Estimate fund amounts carefully. Unused funds will be forfeited either after the last day of the plan year or at the end of the grace period if your plan offers one. If your plans allows you to carry over unused health care FSA funds, any unused funds exceeding the carryover amount will be forfeited after the last day of the plan year. Eligible expenses may vary from employer to employer. In case of a conflict between your plan documents and the information in this material, the plan documents will govern. Please refer to your employer s Summary Plan Description ( SPD ) for more information about your covered benefits. Information is believed to be accurate as of the production date; however, it is subject to change. For more information about PayFlex, go to payflex.com. PayFlex Mobile is a registered trademark of PayFlex Systems USA, Inc PayFlex Systems USA, Inc (7/16)

11 Welcome to PayFlex State and Higher Education Employees Welcome to PayFlex, your Flexible Spending Account (FSA) administrator. Founded in 1987, PayFlex is one of the largest account-based third party administrators. As an FSA member, you can expect exceptional service and support from all areas of our organization. We also have great tools and resources to help you manage your account(s). Easily manage your account online View your account balance(s), payments and deposits Submit claims to pay yourself back for eligible out of pocket expenses Enroll in direct deposit Sign up for account alerts View educational materials, forms, eligible expense items and frequently asked questions Get started today Go to stateoftn.payflexdirect.com Click Register Now and complete the required fields. Manage your account on the go with PayFlex Mobile Download the PayFlex Mobile app from your mobile app store. To log in, use the same username and password you created on the PayFlex member website. Now you can view your account activity and manage your FSA dollars all from the palm of your hand. Stay connected! Sign up to get important account notifications through , web alert or text message. Log in to your account online and select My Settings. Questions? Visit stateoftn.payflexdirect.com or call us at We re here to help Monday Friday, 7 a.m. 7 p.m. CT, and Saturday, 9 a.m. 2 p.m. CT. PayFlex Systems USA, Inc. This material is for informational purposes only and is not an offer of coverage. It contains only a partial, general description of plan benefits or programs and does not constitute a contract. It does not contain legal or tax advice. You should contact your legal counsel if you have any questions or if you need additional information. In case of a conflict between your plan documents and the information in this material, the plan documents will govern. Eligible expenses may vary from employer to employer. Please refer to your employer s Summary Plan Description ( SPD ) for more information about your covered benefits. Information is believed to be accurate as of the production date; however, it is subject to change. For more information about PayFlex, go to payflex.com. Financial Sanctions Exclusions. If benefits provided by any agreement violate or will violate any economic or trade sanctions, benefits are immediately considered invalid. PayFlex cannot make payments for claims or services if it violates a financial sanction regulation. This includes sanctions related to a blocked person or a country under sanction by the United States, unless permitted under a written Office of Foreign Asset Control (OFAC) license. For more information, visit PayFlex Mobile is a registered trademark of PayFlex Systems USA, Inc. payflex.com 2016 PayFlex Systems USA, Inc A (7/16) State of TN

12

13

14 An important new benefit Long-Term Care Insurance: The Caring Part of Your Financial Plan Offered through the State of Tennessee Group Insurance Program. GRP-364-MA-TN-811 For use with policy form TGR MA-TN-601

15 Long-Term Care: Risk & Need What is long-term care? Long-term care is the assistance you need if you are unable to carry out the basic activities of everyday living bathing, continence, dressing, toileting, eating, or transferring, such as from a chair or bed. The need could arise from an accident, injury, debilitating illness, or it could be simply the natural result of aging. This type of care is different from the skilled, short term care you would receive in a hospital. It is extended care you would receive at your home, in an assisted living or nursing facility, adult day care center or hospice program. You could need long-term care at any time, at any age. In fact, one in three people who need long-term care are under age And, studies show that if you reach age 65 without having a long-term care event, your odds become greater than one in two (61%) to need extended care at some point in your life. 2 Preparing for long-term care is essential for families today. Without planning, your loved ones may be faced with the burden of making decisions for you, not to mention having to provide care or pay the bills for your care themselves. What is LTC-TN? LTC-TN is the State of Tennessee Employee and Retiree Group Long-Term Care Insurance Plan available to state and local government and education employees, retirees, and extended family members of those employees. Who pays for long-term care? Only a small portion of the long-term care services you are likely to need are covered by health insurance, Medicare or Medicaid (TennCare). Individuals pay for most of this expense themselves with their own savings. How much does long-term care cost? Long-term care is expensive and can range from $3,000 to $6,000 per month depending on what type of care you choose to receive. A recent study shows that the average cost of care is: 3 $18 an hour for a home health aide $100 per day for assisted living $60 per day for adult day care $175 per day for a semi-private room in a nursing home, $200 per day for private room Think about what would happen if you or your spouse was diagnosed with Alzheimer s disease. The average time span for care needed by an Alzheimer s patient is eight years, but can stretch from three to 20 years, according to the Alzheimer s Association website. Sometimes both spouses wind up needing some form of long-term care, which can greatly increase these expenses. Clearly, the financial impact of needing longterm care could be devastating. How would you pay for this care should you need it? 1 Kaye, H. Stephen, Charlene Harrington, and Mitchell P. LaPlante. Long-Term Care: Who Gets It, Who Provides It, Who Pays, and How Much? Health Affairs, January :1, p Odds for needing LTC: Kemper et al, Long-Term Care Over an Uncertain Future: What Can Current Retirees Expect? Inquiry Vol. 42, Winter 2005/2006, p Agency for Research and Quality and LTC insurance carriers cost surveys,

16 Why consider long-term care insurance? Protect Your Assets Protecting your financial future is important, and long-term care insurance is a vital component of your financial plan. It is a cost-effective way to help pay for your care while helping to protect the savings and assets you ve spent a lifetime accumulating. Protect Your Independence If you re like most people, you don t want to rely on others or burden your family with the unexpected responsibility of caring for you at home, or paying for your care in a facility. With long-term care insurance, you will have choices in how and where you will receive care. Long-term care insurance provides coverage for home care, nursing facility or assisted living facility and community-based expenses, offering you a full range of long-term care options that help you stay in control. Benefits CareDirections Premier, offered through the LTC-TN plan, is a tax-qualified policy that offers flexible design and quality comprehensive benefits. With CareDirections Premier, you can design the plan that s right for you. Coverage includes: Home Care Assisted Living Facility Care Adult Day Care Nursing Facility Care Hospice Program Services Protect your loved ones! Spouses, dependent children ages 18 to 26, parents, parents-in-law, and dependent survivors are eligible to apply for coverage under the LTC-TN Program at the same discounted rates, regardless of whether or not the employee or retiree applies. LTC-TN State of Tennessee Employee & Retiree Long-Term Care Insurance Program 3

17 Design a Plan to Fit Your Needs Here s How You Design a Plan: 1. Choose Your Daily Benefit Amount. The daily benefit amount is the maximum benefit the policy will pay per day for covered services. You should select your daily benefit based on the estimated cost of care where you live or where you plan to retire, and a premium you are comfortable with. With the LTC-TN plan, actual charges for nursing facility, assisted living facility, bed reservation and respite care are paid at 100% of your daily benefit amount. Home care, adult day care, and hospice program benefits are paid at 60% of your daily benefit amount. Benefit options include: $100/$60 $150/$90 $200/$ Choose Your Benefit Period. This is the number of days for which daily benefits are payable. The LTC-TN plan offers two choices: 1,095 Days (3 years) 1,825 Days (5 years). 3. Choose Your Lifetime Benefit Amount Pool of Money. All benefit payments are deducted from a lifetime benefit amount, commonly referred to as a pool of money. Coverage continues until the lifetime benefit amount is exhausted. The lifetime benefit amount is determined by selecting a daily benefit amount and multiplying it by your benefit period. Lifetime Benefit Amount Calculation Example: Benefit Period 1,095 Days (3 years) 1,825 Days (5 years) x Daily Benefit $100/Day $100/Day = Lifetime Benefit Amount $109,500 $182, What About Inflation Protection? The value of the coverage you buy today should be protected from increases in long-term care costs that may occur over the years. Choosing inflation protection builds both the daily benefit amount and pool of money over time. You must select the 5% compound inflation option available with this plan in order for your policy to qualify for the TN Partnership (described on the next page) if you are under age 76. Applicants age 76 and older do not need to purchase inflation protection in order for their policy to be partnership-qualified. The LTC-TN Plan offers the following inflation protection options: Compound Inflation 5% Annually No Inflation 4

18 LTC-TN qualifies for the Tennessee Long-Term Care Partnership plan.* Not to be confused with the State Group Health Insurance PPO Partnership Program, the Tennessee Long-Term Care Partnership Program rewards the purchase of long-term care insurance by protecting assets equal to the longterm care insurance benefits paid when Medicaid (TennCare in Tennessee) is accessed. Without a partnership-certified policy, Medicaid will pay benefits only after you have spent down most of your assets to financially qualify. Keep in mind, every dollar not paid by TennCare is a dollar that can stay in the state budget for education, public works and to fund jobs for public employees. * Applicants under age 76 must select the 5% compound inflation rider in order for their policy to be partnershipcertified. Those age 76 and older do not need to purchase the inflation rider for partnership protection. Buying Now Builds Value Issue Age Act now! Initial Lifetime Benefit Amount Lifetime Pay Annual Premium Rates Total Premiums Paid to Age 80 Value of Lifetime Benefits at Age $164,250 $ 872 $34,880 $1,277, $164,250 $1,318 $39,540 $ 764, $164,250 $2,101 $42,020 $ 457,710 Illustrative purposes only. Premium rates based on $150 Daily Benefit Amount, 3-year Benefit, 90 Day Elimination Period. Calculations assume 5% compound inflation. Assume need care at age 80. Remember, the younger you are when purchasing long-term care insurance, the lower your annual premium, and your premium dollars will yield a greater return. So act now and take advantage of the LTC-TN Plan s special group rates and guaranteed issue during the open enrollment period. Guaranteed issue means that you do not have to answer health questions to be issued a policy. LTC-TN State of Tennessee Employee & Retiree Long-Term Care Insurance Program 5

19 Enroll Now! If you re looking forward to the day when you can spend more time with your children, travel the globe or pursue the hobby of your youth, you should consider protecting your priorities with long-term care insurance. Keep in mind these significant reasons for enrolling in the LTC-TN Plan now: The risk of needing long-term care is significant, regardless of age. Long-term care is expensive, often causing depletion of assets. The ideal time to purchase long-term care insurance is now, because rates are based on your age when you apply. The younger you are, the lower your premium. Plus, the premium is designed to remain level throughout the term of payment. This means that your long-term care insurance premium will not change in the future based on your age or health. Premiums can only increase if there is a rate increase on the entire group of policyholders. If you buy now, you can take advantage of the lowest rate available to you under this plan. Also, keep in mind that once you are accepted for coverage, your coverage cannot be cancelled due to a change in health. Two Ways To Enroll 1. Visit to enroll online! Employees and their family members can visit the website to access the LTC-TN rate calculator and apply online with electronic signature. 2. Complete a paper application. A paper enrollment booklet is included behind the Enrollment Materials tab in your self-enrollment kit. If you do not have a paper enrollment booklet, call LTCi (5824) or info@ltcconsultants.com to request one. 6

20 About MedAmerica: The State of Tennessee s Long-Term Care Insurance Carrier MedAmerica Insurance Company has been dedicated exclusively to providing quality long-term care insurance to employer groups and individuals across the nation since its inception in MedAmerica is recognized as an industry leader for its quality products, excellent service, strong financial position and above all, total commitment to helping policyholders and their families when long-term care services are needed. We proudly point to more than 125,000 policyholders across the country as evidence of our quality, caring approach to providing long-term care insurance. A Heritage of Caring Our Commitment: To actively improve the quality of life for those we serve. MedAmerica works to actively improve the quality of life for those we serve through our unique approach to benefit planning services. When policyholders choose to use our benefit planning services, they will receive assistance from a Personal Care Advisor who will help them and their family members identify providers and services to meet their needs. Our Personal Care Advisors are a source of comfort as well as information for policyholders and their families throughout the long-term care experience. As our customers have told us repeatedly, it s not only what we do, but also how we do it that makes MedAmerica different a caring company. LTC-TN State of Tennessee Employee & Retiree Long-Term Care Insurance Program 7

21 Call toll free LTCi (5824) Visit our website at Court Street Rochester, New York

22 Get the answers you need From time to time, you ll have questions about using your EyeMed benefit. So we ll always make it simple to get answers! These frequently asked questions are the perfect place to start. How easy is that? How can I find a network provider? Using the benefit at a network provider is easy. Simply visit eyemedvisioncare.com/stoftnoe and search providers near you by entering your zip code or call How often can I get an eye exam? You re eligible for an eye exam once every calendar year. You can get standard plastic/glass lenses or contacts once every calendar year and frames once every two calendar years. How does the frame allowance work? If you choose the Basic plan and use a network provider, you will not have to pay anything for your frames if they cost $50 or less. If the frames are over $50, you will get a 20% discount on the balance of the monies you owe. How will my provider know if I have used all of my benefits? An in-network provider will locate your record within the EyeMed system and verify that benefits are available prior to your appointment. How will my provider verify that I am a member? An ID card is not required to receive benefits at the provider s office. The provider will search for your eligibility and benefits by your name and then verify your address, date of birth and your subscriber s employer. Do I need to file a claim? No, you will not file claims if you use an in-network provider. However, if you do not use a network provider you will need to file an out-ofnetwork claim form. This form, is available at com/stoftn under common questions. Who do I contact with questions about my claim and how it was paid? You can contact the EyeMed Customer Care Center at with any questions pertaining to your claim. They are available Monday-Saturday from 6:30am to 10:00pm CT and Sunday 10:00am to 7:00pm CT

23 What s in it for me? Options. It s simple really. We re dedicated to helping you see clearly and that s why we ve built a network that gives you lots of choices and flexibility. You can choose from independent doctors and retail providers to find the one that best fits your needs and schedule. No matter which one you choose, our plan is designed to be easy-to-use and save you money. Welcome to EyeMed. Benefits Snapshot With Us (In Network) Out-of-Network Reimbursement Exam with dilation as necessary (every calendar year) $10 copay Up to $45 Frames (every 2 calendar years) 80% of balance over $115 Up to $70 Single Vision, Bifocal & Trifocal lenses (every calendar year) $15 copay Up to $30 or Contacts (every calendar year) Balance over $130 Up to $50 And now it s time for the breakdown... Here s an example of what you might pay for a pair of glasses with us vs. what you d pay without vision coverage. So, let s say you get an eye exam and choose a frame that costs $163 with single vision lenses that have UV and scratch protection. Now let s see the difference... With Us (In Network) Without Insurance* Exam $10 copay Exam $106 75% Frame $163 - $115 allowance $48 Frame $163 SAVINGS with us Lens -$9.60 (20% discount off balance) $38.40 $15 copay $10 UV treatment add-on Lens $78 $23 UV treatment add-on + $15 scratch coating add-on + $25 scratch coating add-on $50 $126 Total $98.40 Total $

24 Section 3b: Retirement & Deferred Compensation Plans STATE RETIREMENT PROGRAMS Faculty and Administrative employees have two State of TN retirement programs to choose from (TCRS and ORP). Refer to the following sheets for complete details regarding contributions and vesting. Clerical and Support staff are automatically enrolled into TCRS. There are also four Deferred Compensation Plans to choose from. These are employee-contributed and are designed to supplement the above mentioned State retirement. 1. TN Consolidated Retirement System (TCRS) Visit: 2. Optional Retirement Plan (ORP) Administrative/Faculty only 50% of your investment is put toward an annuity, with either: TIAA-CREF Financial Services Voya Financial Partners (Formerly ING) Valic Financial Advisors Visit: New employees who have never been in the TCRS or ORP plan will be considered Hybrid employees, if you have worked for the State of Tennessee and were previously in TCRS or ORP you may be eligible to be in the Legacy plan. Please be sure to add state employment dates on your Employment Verification Form. DEFERRED COMPENSATION PROGRAMS - You may enroll is these programs at any time. 403(b) - No Employer match TIAA-CREF, Voya, Valic Empower Retirement (formerly Great West) (k) Traditional or Roth TTU will match up to $50.00/month No Employer match Please read the Empower Retirement comparison charts thoroughly! You can go online to for more information.

25 Your Choice Checklist: STATE RETIREMENT OPTIONS (Admin/Faculty only): Member Notice of Election: TN Consolidated System (TCRS) Optional Retirement Program (ORP) If you choose ORP, you must: Complete Contribution Specification Form, and Enroll online with any or all three financial service providers: TIAA-CREF: o PLAN # VOYA: o PLAN #VFZ294 VALIC: o PLAN 1 DEFERRED COMPENSATION PROGRAMS You may enroll in these programs at any time of the year. Please complete the Empower Retirement enrollment form located in the Forms section. 401(k) Traditional 401(k) Roth (b) enrollment packages are available in HR. Please contact TTUBenefits@tntech.edu for more information. TIAA-CREF - Andrew Hall (615) VOYA - Julie Chambers (615) VALIC - Brian Ward (865)

26 Deferred Compensation Under current tax law all Tennessee Board of Regents employees are permitted to put aside a portion of gross income and defer paying taxes on that income and the interest it earns until such time as you actually receive the funds (generally upon retirement). The university offers a variety of deferred income plans, which make it possible for employees to take advantage of this provision in the law. Enrollment in these programs is voluntary and the decision to participate resides solely with each employee. Deferred Compensation plans are geared for retirement, so contributions cannot be withdrawn before separation from service unless indicated by the plan document. If you have any questions regarding eligibility or enrollment, please contact the Human Resources office at Maximum Contribution Limits 401(k) and 403(b) combined maximum age 50 or older: $24, (k) and 403(b) combined maximum under age 50: $18, maximum age 50 or older: $24, maximum under age 50 $18,000 The minimum contribution should be at a rate of two hundred dollars ($200.00) per year. 403(b) Plan A 403(b) plan is a supplemental retirement plan which allow employees to save for retirement on a tax-deferred basis. Contributions are made through regular payroll deductions and can be invested with any of the TBR approved vendors. TBR vendors are listed below along with each plan representative contact information. Once enrolled in a 403(b) plan, employees must submit a 403(b) Payroll Deduction Form to the TTU Human Resources office. Contributions into a 403(b) plan cannot be withdrawn until separation from service. VALIC 412 N Cedar Bluff Rd, Suite 400 VOYA 214 Second Avenue North, Suite 2 Nashville, TN Ed Stewart, CFS, ChFC, CLU (615) ed.stewart@voyafa.com TIAA-CREF 730 Third Avenue New York, NY

27 Tennessee Board of Regents Retirement Plan Nonexempt Employees One of the most valuable benefits of employment with Tennessee Board of Regents is coverage under the State s retirement system. All regular, full time employees are required to participate in the retirement plan. Participation entails a mandatory 5% contribution by the employee. Employees will also be automatically enrolled to contribute an additional 2% into a defined contribution plan. While the mandatory 5% is a condition of employment, employees do have an opportunity to opt out of the additional 2% contribution. In addition to the employee contribution, Tennessee Board of Regents will contribute 8.87% of salary annually. Auto enroll: The automatic enrollment (auto enroll) component is a requirement of the retirement plan. Auto enroll allows an employer to automatically deduct elective deferrals from an employee's wages unless the employee makes an election not to contribute or to contribute a different amount. Employees will receive a letter from the Defined Contribution Record Keeper, which is currently Empower Retirement. Employees will have thirty (30) days from the date of the letter to opt out or change the contribution amount. Eligible employees determined to be Nonexempt from the Fair Labor Standards Act (FLSA) will be enrolled into the Tennessee Consolidated Retirement System (TCRS) Hybrid Plan. Below is a summary of the TCRS Hybrid Plan: Tennessee Consolidated Retirement System (TCRS) Hybrid Plan The TCRS plan has two components, a defined benefit plan and a defined contribution plan, and accordingly is referred to as the Hybrid Plan. Please see below for IRS definitions: Defined Benefit Plan Also known as a traditional pension plan, this plan promises the participant a specified monthly benefit at retirement. Often, the benefit is based on factors such as the participant s salary, age and the number of years he or she worked for the employer. The benefit is commonly calculated through a plan formula that considers such factors as salary and service. Defined Contribution Plan Contributions are made to the employee s individual account under the plan (e.g. 401k). The amount in the account at distribution includes the contributions and investment gains or losses, minus any investment and administrative fees. The contributions and earnings are not taxed until distribution. The value of the account will change based on contributions and the value and performance of the investments.

28 Contributions and Match: Defined Benefit Defined Contribution Total Employer Contributions 3.87% 5% 8.87% Employee Contributions: Required 5% 0% 5% Employee Contributions: Auto enroll (1) NA 2% 2% Employee Contributions: Voluntary (2) NA IRS Limit IRS Limit Employer Contributions: 401k (3) NA $50 match $50 match Total (excluding $50 match) 8.87% 7% 15.87% (1) Employees may opt out of the auto enroll contributions. (2) Employees may make additional voluntary contributions to the 401k, 457, and 403b plan up to Federal IRS limit. (3) Employer match up to $50 per month for employees contributing to 401k. Vesting: Defined Benefit Plan Contribution Rate Vesting Rights Employer Contributions 3.87% 5 years of service Employee Contributions: Required 5% Immediate including credited interest by TCRS Defined Contribution Plan Contribution Rate Vesting Rights Employer Contributions 5% Immediate including earnings (excluded from loans) Employee Contributions: Auto enroll 2% Immediate including earnings Employee Contributions: Voluntary IRS Limit Immediate including earnings Employer Match Up to $50 Immediate including earnings (excluded from loans) Welcome Packet: Employees electing to participate in the TCRS Hybrid Plan will receive an Active Member Welcome Packet. This packet is mailed to the home address and will contain instructions on accessing Member Self Service (MSS) and electing a beneficiary.

29 Hybrid Pension Plan Eligibility: Employees hired on or after July 1, 2014 will be enrolled into the new plan Current employees or retirees are not affected by the changes Current plan will be referenced as the Legacy Plan going forward Breaks in service: Options returning TCRS and ORP members will have available to them: Vested in old plan with break in service may return to old plan upon re employment with state agency Not vested in old plan and return to service in less than 7 years may return to old plan Not vested in old plan and return to service after 7 years must enroll in new hybrid plan

30 Tennessee Board of Regents Retirement Plan Legacy Plan Employees One of the most valuable benefits of employment with Tennessee Board of Regents is coverage under the State s retirement system. Employees who became members of TCRS after July 1, 1981 and before July 1, 2014 are non contributory. The State s non contributory plan is referred to as the Legacy Plan. Rehired employees are eligible for enrollment in the Legacy Plan as follows: Vested in Legacy Plan with a break in service may return to Legacy Plan upon reemployment with State agency. Not vested in Legacy Plan and return to service in less than 7 years may return to Legacy Plan. Not vested in Legacy Plan and return to service after 7 years must enroll in new Hybrid Plan. If eligible for the Legacy Plan, the rehired employee must be enrolled in the same retirement plan he/she was previously a member (i.e. TCRS to TCRS Legacy and ORP to ORP Legacy). All regular, full time employees are required to participate in the retirement plan as a condition of employment. For regular part time employees, membership in a retirement plan is optional. In addition to the State s retirement system, rehired employees will also be automatically enrolled to contribute 2% into a defined contribution plan (401k). While the auto enroll is an automated process, employees do have an opportunity to opt out of the 2% contribution. Auto enroll: Auto enroll allows an employer to automatically deduct elective deferrals from an employee's wages unless the employee makes an election not to contribute or to contribute a different amount. Employees will receive a letter from the Defined Contribution Record Keeper, which is currently Empower Retirement. Employees will have thirty (30) days from the date of the letter to opt out or change the contribution amount. Eligible rehired employees determined to be Exempt from the Fair Labor Standards Act (FLSA) have two retirement plans available, the TCRS or ORP. Eligible rehired employees determined to be Nonexempt from the Fair Labor Standards Act (FLSA) have one retirement plans available, which is the TCRS. Rehired employees will be electronically enrolled in the same retirement plan he/she was previously a member (i.e. TCRS to TCRS Legacy and ORP to ORP Legacy). Employees will be required to enter beneficiary information online once the account is set up with the chosen vendor.

31 Tennessee 401(k) and 457 Deferred Compensation Program Quick Reference Guide The State of Tennessee 401(k) and 457 Deferred Compensation Program makes it easy to view and make changes to your account information! Once you are enrolled in the Program, you can access your account 24/7 via KeyTalk, the automated phone system, or via the the website. How Do I... Website KeyTalk Form Enroll in the Program Defer Longevity or Bonus Pay Change contribution amount Call KeyTalk at (800) To order a new Personal Identification Number (PIN) or personalize your PIN 2 To obtain your account balance, investment option allocations and past transactions To transfer among funds 1 To obtain daily unit/share values of your investment options To speak to a Retirement Plan Specialist between 8:00 a.m. and 7:00 p.m. Central Time 3 To Access KeyTalk, the Speech-Enabled System: For Spanish, press 2. A message prompt will ask you to say or enter your Social Security number and PIN. 2 If you re calling from a rotary phone, wait on the line and the call will be answered by a Retirement Plan Specialist. Go ahead and say it! Our system is voice-activated! Transfers Rebalance Transfer Current Investments Current Values Paycheck Contributions Hear Current Paycheck Contributions Change Paycheck Contributions Loans* Existing Loans New Loan Payoff Distributions Speak with a Representative Future Investments Change Future Investments Hear Current Investments More Options Fund Performance Account Balance Recent Activity Statements Change PIN Representative Customer Service Local Office * Loans are only available in the 401(k) plan. Read on for Website Navigation >>

32 Visit the Website at and select Great-West Access 1 To order a new PIN or personalize your PIN 2 To change future investments To view your account balance, investment allocations and To obtain investment option information past transactions To use financial calculators and tools To transfer your investments 1 And for many other options Navigate the Website Icons My Account View your account balance and investment allocations. Look at your contribution, transfer and withdrawal history. Investments Investment Overview: a one-page summary of each investment option Investment Performance: historical investment option performance Prospectus: detailed information about each investment option Transactions Transfer your investments. Change your paycheck contributions. Use the Rebalancer and Dollar Cost Averaging tools. 4 Account History Review your individual rate of return. Advisory Services Determine the type of investor you are. Utilize the various investment advice services that are provided for each investor type. Loans and Withdrawals* Use the loan calculator to determine the true cost of taking a loan from your account. Request a loan. Financial Planning Tools Use the Calculators and Planners. My Profile Update your beneficiary information. Elect to receive statements electronically. Education Learn how to plan ahead and save and invest for your future. *Loans available for 401(k) Plan only Remember to log out when you leave the website to protect the security of your personal information! For more information, visit or call (800) Access to KeyTalk and the website may be limited or unavailable during periods of peak demand, market volatility, systems upgrades/maintenance or other reasons. Transfer requests made via the website or KeyTalk received on business days prior to close of the New York Stock Exchange (4:00 p.m. Eastern Time or earlier on some holidays or other special circumstances) will be initiated at the close of business the same day the request was received. The actual effective date of your transaction may vary depending on the investment option selected. 2 The account owner is responsible for keeping the assigned PIN confidential. Please contact Great-West Retirement Services immediately if you suspect any unauthorized use. 3 Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed. 4 Dollar Cost Averaging and/or Rebalancer do not ensure a profit and do not protect against loss in declining markets. Investors should consider their financial ability to continue a dollar cost averaging plan during periods of fluctuating price levels. Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker dealers. GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company. Great-West Financial SM refers to products and services provided by Great-West Life & Annuity Insurance Company; Great-West Life & Annuity Insurance Company of New York, White Plains, New York; their subsidiaries and affiliates. Great-West Life & Annuity Insurance Company is not licensed to conduct business in New York. Insurance products and related services are sold in New York by its subsidiary, Great-West Life & Annuity Insurance Company of New York. The trademarks, logos, service marks, and design elements used are owned by Great-West Life & Annuity Insurance Company Great-West Life & Annuity Insurance Company. All rights reserved. Form#CB1030QR (10/2012) PT159921

33 Comparison of the Governmental 457(b) and 401(k) Plans My Money, My Future, My Tennessee 401(k) and 457 Deferred Compensation Program Provision 457 Plan Before-tax 401(k) Plan Designated Roth 401(k) Authorization Internal Revenue Code (IRC) Section 457(b) IRC Section 401(k) IRC Section 402A Eligibility State, Higher Education and Local Education Agency employees, upon date of hire or anytime thereafter. Local Government employees, upon employer adoption of the plan. Is My Contribution Taxable in the Year I No. No. Yes. Make It? Is My Contribution Taxed When Distributed? Yes. Yes. No. Are the Earnings on My Contributions Taxed When Distributed? Maximum Annual Deferral Deferral Amounts Coordinated With Other Retirement Plans Employer Contributions Standard Catch-Up Allowed? Yes. Under Age 50: $18,000 in Age 50+: $24,000 in The annual contribution limit may be indexed for inflation in future years. According to Internal Revenue Service (IRS) regulations, the increases can only take place in $500 increments and may not occur every year. If an employee is eligible to contribute to either a 401(k) or 403(b) plan and, in addition to that 401(k) or 403(b) contribution, is also eligible to contribute to a governmental 457(b) plan, then that employee may defer the maximum annual contribution to both plans (either 401(k) and 457(b) or 403(b) and 457(b)) for a total contribution of $36,000 in This does not include catch-up contributions. None. Yes. If not using Age 50+ Catch-Up, Standard Catch-Up is available during the last three calendar years before the year an employee attains normal retirement age. An employee may be eligible to make contributions up to a maximum annual contribution of $36,000 in The Standard Catch-Up and Age 50+ Catch-Up cannot be used in the same tax year. 401(k) Plan No, provided the distribution occurs after age Yes. 59½, death or disability and at least five tax years after your first contribution. Under Age 50: You may defer a combined maximum of $18,000 in 2015 to the 401(k) plan and the Roth 401(k) plan. Age 50+: $24,000 in The annual contribution limit may be indexed for inflation in future years. According to IRS regulations, the increases can only take place in $500 increments and may not occur every year. If an employee is able to contribute to both a 403(b) and a 401(k) plan, that employee may contribute to both. However, total aggregate contributions to both plans may not exceed the annual contribution limit, which is $18,000 for 2015 or $24,000 if an employee is 50 years of age or older. State match amount is subject to annual appropriation. Notice of amount is announced annually. No.