Welcome Retirement & Healthcare Benefit Plan Overview Effective July 1, 2016

Welcome Retirement & Healthcare Benefit Plan Overview Effective July 1, 2016 Presented by: Lisa Belt

Retirement Benefit Plans Transferring Employee vs New Employee Transferring Employee An Employee who elects to transition from their current position with Kent County over to the Gerald R. Ford International Airport Authority effective June 30, 2016. New Employee An employee who is hired by the Authority on or after July 1, 2016. This includes employees who elect to retire from Kent County and re-employ with the Authority.

Retirement Benefit Plans Traditional Defined Benefit Plan Transferring Employees only Hybrid Retirement Plan (DB &DC Components) New Employees Only 457b Plan- with Nationwide All Employees Retirement HealthCare Savings Program (HCSP)

Retirement Plan FACTS Both Traditional and Hybrid Retirement Plans will be administered by the Municipal Employees Retirement System (MERS). MERS is located in Lansing and is an independent, nonprofit retirement services company that serves municipal members across the state of Michigan. They also serve more than 100,000 employee participants throughout the state of Michigan. Employees who transfer from Kent County over to the Authority will have their current Kent County DB retirement accrued benefits transferred to the newly established Authority Defined Benefit Plan with MERS. The asset transfer will be complete within 180 days from July 1, 2016. New Employees of the Authority will participate in a Hybrid Plan which is made of two components: A DB Plan and a DC Plan.

Defined Benefit Plan (DB) for Transferring Employees Only Defined Benefit Pension Plan Comparison Benefit MERS-Authority Pension Kent County Pension Plan Benefit Multiplier 2.5% (85% FAC maximum benefit gross pay) 2.5% (75% Gross Pay maximum benefit based on Employer Contributions) Vesting 5 years 5 years FAC FAC3: Average of the FAC3: Average of the 3 highest Consecutive highest consecutive 36 years during lifetime of months during final 60 mo. of service. 35% service Accumulated Sick leave at retirement converted by formula to FAC Compensation Definition Gross pay & lump-sum vacation, Gross pay, no lump-sum sick or vacation

Defined Benefit Plan (DB) for Transferring Employees Only Defined Benefit Pension Plan Comparison Benefit MERS-Authority Pension Kent County Pension Plan Early Retirement Eligibility Requirement 25 years and out 25 years and out Normal Age Regular Retirement Age 60 and vested Age 60 and vested Deferred Retirement If Vested, Normal retirement age If Vested, Normal retirement age Early Reduced Benefit 55/15,.5% per month before age 60 reduction Cost of Living 1% Annually (Simple Interest) 55/15, actuarially determined reduction 1% Annually (Simple Interest) after 36 months of retirement

Defined Benefit Plan (DB)Cont d for Transferring Employees Only Defined Benefit Pension Plan Comparison Benefit MERS-Authority Pension Kent County Pension Plan Member contribution 1/2 total contrib up to 8.5% employee cap 1/2 total contribution up to 8.5% employee cap Interest on Employee Contributions Duty Death 1 Yr. T-Bill Rate 10 Yr. Treasury rate No vesting requirements. If vested and more than 15 years Lifetime Benefit to survivor, credited service, lifetime benefit to beginning with the month spouse using accrued service at of death using accrued commencement of disability. No service. Surviving spouse minimum. If vested and less than receives minimum 25% of 15 years credited service, lifetime FAC benefit to spouse using accrued service at normal retirement age of deceased employee.

Defined Benefit Plan (DB)Cont d for Transferring Employees Only Defined Benefit Pension Plan Comparison Benefit MERS-Authority Pension Kent County Pension Plan Non-duty Death Duty Disability Member must be vested. If vested and more than 15 years Survivor receives 85% of DB credited service, lifetime benefit to formula or 100% Survivor spouse using accrued service at Benefit, whichever is commencement of disability with higher. no minimum. If vested and less than 15 years credited service, lifetime benefit to spouse using accrued service commencing at normal retirement age of deceased employee. No vesting requirement. Service to normal retirement age added when determining retirement benefit. Maximum benefit is 100% of FAC less other disability benefits and other gainful employment. No vesting requirement. Service to normal retirement age added when determining retirement benefit. Maximum benefit is 90% of FAC less other disability benefits and other gainful employment.

Defined Benefit Plan (DB)Cont d for Transferring Employees Only Defined Benefit Pension Plan Comparison Benefit MERS-Authority Pension Kent County Pension Plan Non-duty Disability Vesting required (5 years), accrued benefit 10 years of service, accrued benefit Credited Service 80 Hours Per Month 80 hrs. per mo.,1800 Hours Per Year Payment Options 8 3 Pop-up feature Reciprocal Retirement (MERS to MERS time) Allows retirees to receive None Straight Life option upon notification of beneficiary's death. Ability to combine service from Not applicable 2 or more MERS Municipal Employers for the purposes of vesting and eligibility. Requires 12 months of employment at each entity. Member receives 2 pensions at retirement: each reflecting service, FAC,

Defined Benefit Plan (DB)Cont d for Transferring Employees Only Service Credit Purchases (purchased Military Time plus purchased General Service can not exceed 5 years total) Defined Benefit Pension Plan Comparison Benefit MERS-Authority Pension Kent County Pension Plan Generic service-up to 5 years, does count towards retirement eligibility. Military up to 5 years, does not count towards retirement eligibility. Accumulated sick leave at retirement converted by formula to additional service credit. Probation Period Employee pays contributions 1st day of month following date of hire. 6 months, no employee contribution but service is awarded afterwards.

DB Plan - Contributions Cost Sharing Employee 6.5% Authority 6.5% Employee Contribution Cap set at 8.5%

Retirement DB Benefit Comparison Example I Employee A Kent County Pension Date of Termination - 6/30/16 Date of Retirement 7/1/16 Eligibility: 25 + years Age 52 Retirement Wage $61,967 Sick Bank Hours 1615 Years of Service 30.86100 (includes 9 months sick bank hours converted to Pension Service Cr) Military Service Purchase: 3.66670 Total service: 34.52770 Benefit Formula: 2.5 % x 34.5277 service years x $61,967.17 FAC Straight Life Benefit = $4,457/month Annual Retirement Benefit=$53,489 25 years County DB Benefit-$1,337,235

Retirement DB Benefit Comparison Example I Employee A Authority DB Pension - MERS Date of Termination - 6/30/16 Date of Retirement 7/1/16 Eligibility: 25 + years Age 52 Retirement Wage $61,967 Sick Bank Hours 1615 Total Years of Service 33.8277 (includes Military Service Purchase) Benefit Formula: 2.5 % x 33.8277 service years x $66,155 FAC (includes Sick Bank hrs converted by formula & added to FAC) Straight Life Benefit = $4,662/month Annual Retirement Benefit=$55,947 25 years MERS DB Benefit-$1,389,675

Retirement DB Benefit Comparison Example II Employee B Kent County Pension Date of Termination - 6/30/16 Date of Retirement 7/1/16 Eligibility: 25 + years Age 60 Retirement Wage $55,513 Sick Bank Hours 1219 Years of Service 25.8 (includes 7 months Converted sick bank hours to Pension Service Cr) Total service: 26.337 years Military Service Purchase - Zero Benefit Formula: 2.5 % x 26.337 service years x $55,513 FAC Straight Life Benefit = $3046/month Annual Retirement Benefit=$36,550 25 years County DB Benefit-$913,770

Retirement DB Benefit Comparison Example II Employee B Authority DB Pension - MERS Date of Termination - 6/30/16 Date of Retirement 7/1/16 Eligibility: 25 + years Age 60 Retirement Wage $55,513 Sick Bank Hours 1219 Total Years of Service 25.8 Military Service Purchase - Zero Benefit Formula: 2.5 % x 25.8 service years x $59,142 FAC (sick bank hrs. converted by formula & added to FAC) Straight Life Benefit= $3179/month Annual Retirement Benefit=$38,147 25 years MERS DB Benefit- $953,667

457b Retirement Plan Nationwide Brian Wanless- Account Representative 30+ Investment Choices US Stocks Foreign Stocks Fixed Income Risk Based Solutions & Target Date Funds Investment Fiduciary Services provided by MorningStar Minimum Employee Contribution - $10/pay Employees can roll 457b funds from Kent County Account over to the Authority 457b Plan or keep both plans

What is a Retirement HealthCare Savings Plan? (HCSP) A HealthCare Savings Plan is an employer-sponsored program that allows both you & an employer to invest money in a tax-free account while you are employed. Once you leave employment you may access this money for reimbursement of eligible medical expenses. An HCSP is a tax-free account which means contributions and eligible reimbursements will not be reported on federal or state income tax returns.

HealthCare Savings Plan (HCSP) Plan Benefits Allows Employee to Manage retirement healthcare Expenses Tax-free medical savings account Account is designed for post-employment healthcare use (vesting is required to receive employer contributions) Employer and Employee (1%) pre-tax contributions to account Individual Employee Accounts are invested and grow tax free HCSP funds can be used for employee, spouse or dependent eligible healthcare expenses Eligible Healthcare expenses include, but not limited to Healthcare premiums, co-pays, prescription drugs, deductibles, dental and vision expenses. HCSP Benefit will replace Monthly healthcare credit of $350 Authority will supplement employee HCSP account @ $3000/year of service (subject to annual adjustment) Actuarial Valuation will be completed for the County VEBA and prorated assets will be transferred to employee HCSP accounts.

Hybrid Retirement Plan (DB & DC) for New Authority Employees Only Benefit Hybrid Part I-Defined Benefit Benefit Multiplier 1.50% Vesting FAC Compensation Definition 6 years FAC3: Average of the 3 highest consecutive years during lifetime of service. 35% Accumulated Sick leave at retirement converted by formula to FAC Gross pay, lump-sum vacation Early Retirement Eligibility Requirement Age 55 with 25 years Normal Age Regular Retirement Age 60 and vested

Hybrid Retirement Plan(DB & DC) for New Authority Employees Only Benefit Deferred Retirement Hybrid Part I-Defined Benefit If Vested, Normal retirement age Early Reduced Benefit 55/15,.5% per month before age 60 reduction Authority contribution 6.5% Employee Contribution 0.00% Interest on Employee Contributions 1 Yr. T-Bill Rate Duty Death Non-duty Death No vesting requirements. Lifetime Benefit to survivor, beginning with the month of death using accrued service. Surviving spouse receives minimum 25% of FAC Member must be vested. Survivor receives 85% of DB formula or 100% Survivor Benefit, whichever is higher.

Hybrid Retirement Plan(DB & DC) for New Authority Employees Only Benefit Duty Disability Non-duty Disability Credited Service Hybrid Part I-Defined Benefit No vesting requirement. Service to normal retirement age added when determining retirement benefit. Maximum benefit is 100% of FAC less other disability benefits and other gainful employment. Min of 25%of FAC Vesting required (6 years), accrued benefit 80 Hours Per Month Payment Options 8 Pop-up feature Allows retirees to receive Straight Life option upon notification of beneficiary's death.

Hybrid Retirement Plan(DB & DC) for New Authority Employees Only Reciprocal Retirement (MERS to MERS time) Service Credit Purchases Probation Period Benefit Ability to combine service from 2 or more MERS Municipal Employers for the purposes of vesting and eligibility. Requires 12 months of employment at each entity. Member receives 2 pensions at retirement: each reflecting service, FAC, and benefit structure of each municipality. None Hybrid Part I-Defined Benefit Employee pays contributions 1st day of month following date of hire.

Hybrid Retirement Plan(DB & DC) for New Authority Employees Only Hybrid Part II-Defined Contribution Portable Defined Contribution Plan funded by employee and employer 6 year graded vesting schedule Mandatory Employee Contribution 6.5%, Employer Contribution 2% (subject to annual review) Annual Maximum Contribution Limits (2016 - $53K) DC accepts rollovers from eligible plans MERS Investment Accounts & Portfolios 1. Target Date Funds "Do it For Me" 2. Portfolios - "Help Me Do It" 3. Self-Directed Brokerage Account - "Ill do it Myself" If employee dies while still working, they immediately become vested in the DC portion of the plan. The beneficiary is entitled to account balance Employee who is disabled and unable to return to work may be eligible to receive benefits without early withdrawal penalties.

Hybrid Retirement Plan(DB& DC) for New Authority Employees Only Hybrid Part II-Defined Contribution Gains & Losses are subject to Market Fluctuations. Money grows tax-deferred until withdrawals are made Withdrawal penalties apply if employee chooses to begin using the account before age 55. Multiple ways to receive distributions: Lump Sum & Partial payments, equal payments, periodic, amount certain period certain and Minimum Required Distributions. Account is portable however, participants may choose to leave their DC account with MERS for access at a later date or when ready to retire. Employee pays contributions 1st day of month following date of hire. The MERS Retirement Board and Office of Investments selects and monitors the investment choices that are available to employees

Retirement Plan Questions

Health Care Overview

Health Care Plan Comparison MEDICAL & PRESCRIPTION DRUG 2016 Kent County BCBSM Current Plan Self-Funded Airport Authority BCBSM Fully Insured 7-1-16 In Network Out of Network In Network Out of Network Deductible $300 / $600 $600 / $1,200 $250 / $500 $500 / $1,000 Medical Out-of-Pocket Maximum (Includes Deductible, Coinsurance, and Copays) $2,150 / $4,300 $4,300 / $8,600 $1,250 / $2,500 $3,500 / $7,000 Hospital Coverage 85% after deductible PCP Office Visit Copayment $25 Specialist Office Visit Copayment $25 65% after deductible 65% after deductible 65% after deductible 80% after deductible $20 $20 60% after deductible 60% after deductible 60% after deductible Durable Medical Equipment 85% after deductible 80% after deductible 65% after 60% after Urgent Care Copayment $40 $20 deductible deductible $150 $125 Emergency Room Copayment (waived if admitted or for (waived if admitted) accidental injury) Ambulance Copayment 85% after deductible 80% after deductible Rx Out-of-Pocket Maximum Included in Medical OOP $4,700 / $9,400 (Includes prescription copays only) Maximum INN copay plus Prescription Drug Copayment $15 / $25 / $45 $15 / $30 / $60 25% Mail Order Rx Copayment 2x Copay 2x Copay

Dental & Vision Plan Comparison DENTAL Kent PBS Self Funded BCBSM-PPO Fully Insured Authority VISION Kent county VSP Current Blue Vision w VSP Authority In Network PPO Non- PPO In Network In-Network Type I (Preventative Care) 100% 100% 50% Eye Exam $10 $5 Type II (Basic Services) 50% 80% 50% Type III (Major Services) 50% 50% 50% Frames Class IV (Orthodontic Services) 50% 50% Annual Deductible (Types II and III only) N/A $50 / $150 Annual Maximum (Types I, II and III Services) $2,500 Type IV included Prescription Glasses (lenses and/or frames) Contact Lenses Elective Contact Lenses - Medically Necessary $1,250* Frequency $10 $120 allowance $135 allowance Covered in full $10 - combined $130 allowance $130 allowance $10 Lifetime Maximum (Type IV only) N/A $1,250 up to age 19 Exam 12 Months 12 Months * $1250 per person per year covered Lenses 12 Months 12 Months Frames / Contacts 24 Months 24 Months

2016 Authority HealthCare Rates Authority Wellness and Prescription Drug PPO (BCBSM) Monthly Employee Cost (Full-Time)-20% of Premium Authority Cost Fully-Insured Total Cost Single $146.64 $586.57 $733.21 Two-Party $351.94 $1,407.77 $1,759.71 Family $439.93 $1,759.71 $2,199.64 Authority Dental Plan (Full-Time Only) Employee Cost (Full-Time)-of Premium Authority Cost Total Cost Single $0.00 $28.13 $28.13 Two-Party $0.00 $67.52 $67.52 Family $0.00 $84.40 $84.40 Authority Vision Plan (Blue Vision-VSP) (Full-Time Only) Employee Cost (Full-Time)-of Premium Authority Cost Total Cost Single $0.00 $6.18 $6.18 Two-Party $0.00 $14.84 $14.84 Family $0.00 $18.55 $18.55

AUTHORITY Airport Authority Medical & RX 20% Premium Comparisons Kent County vs Authority 4% Wellness Physical Cash Wellness Cash 4% Non- Smoking Cash EE Mthly Premium Per Pay Premium Per pay Credit Per pay Credit Employee Per Pay Health & Wellness Deductions Single 146.64 73.32 $14.66 $14.66 $44.00 Two Person 351.94 175.97 $35.20 $35.20 $105.57 Family 439.93 219.97 $46.07 $46.07 $127.83 VS KENT COUNTY PPO-BCBSM Wellness Cash 2016 Kent County 2.5% Non- Medical & RX 20% 2.5% Annual Physical Smoking EE Mthly Premium Per Pay Premium Cash Cash Employee Per Pay Health Care Costs Single 136.36 68.18 $8.52 $8.52 $59.66 Two Person 286.35 143.17 $17.89 $17.89 $107.38 Family 340.89 170.45 $21.31 $21.31 $127.83 KENT COUNTY HMO-GVHP Wellness Cash 2016 Kent County 2.5% Non- Medical & RX 20% 2.5% Annual Physical Smoking EE Mthly Premium Per Pay Premium Cash Cash Employee Per Pay Health Care Costs Single 129.16 64.58 $8.07 $8.07 $48.44 Two Person 271.23 135.61 $16.95 $16.95 $101.72 Family 316.13 158.07 $19.76 $19.76 $118.55

Short Term Disability (S&A) Employer Paid Benefit Non Occupational Disability Benefits Authority Class 1: All active, Full-time Airport Authority Command Officers Class 2: All active, Full-time Airport UAW General Unit Eligibility Employees Class 3: All active, Full-time Airport MPP Employees Class 4: Executives Class 1-3: First day following 6 consecutive months from date of hire Class 4: First day of the month coinciding with or next following date of hire Benefit Amount 67% Weekly Minimum $15 Weekly Maximum $3,000 Class 1 & 4: 26 Weeks Class 2 & 3: 26 weeks within a 52 week period 0 days for Accident 7 days for Sickness Eligibility Waiting Period Maximum Benefit Duration Benefit Waiting Period

Basic Life and AD&D Insurance Benefits Eligibility Eligibility Waiting Period Employee Benefit Amount Guaranteed Issue Amount Waiver of Premium Age Reduction Basic Life and AD&D Insurance Employer Paid Benefit Airport Authority Plan Class 1: All active, Full-time Airport Command Officers Class 2: All active, Full-time UAW General Unit Employees Class 3: All active, Full-time Management Pay Plan Employees Class 1 & 3: First day of the month coinciding with or next following date of hire Class 2: First day following 6 consecutive months from date of hire Class 1 & 3: 1x salary not to exceed $50,000, rounded up to the nearest $1,000 Class 2: Flat $50,000 Benefit Amount Included None Accelerated Death Benefit 75%

Voluntary Term Life Benefit Voluntary Term Life Benefit Benefits Airport Authority Plan Eligibility Eligibility Waiting Period Class 1: All active, Full-time Airport Authority Command Officers Class 2: All active, Full-time UAW General Unit Employees Class 3: All active, Full-time MPP Employees Class 4: Executives Class 1, 3, & 4: First day of the month coinciding with or next following date of hire Class 2: First day following 6 consecutive months from date of hire Employee Benefit Amount Units of $5,000 to a maximum of $150,000 Employee Guaranteed Issue Amount Spouse Benefit Amount Spouse Guaranteed Issue Amount Child Benefit Amount Age Reduction Accelerated Death Benefit Portability $100,000 Units of $5,000 to the lesser of $150,000 or 50% of Employee Amount $25,000 Birth to age 26 provided that the dependent is primarily supported by the employee - $10,000 None Lesser of 75% up to $112,500 Applies to employee and spouse Included Rate per $1,000 Employee and Spouse <30 $0.070 30-34 $0.120 35-39 $0.150 40-44 $0.190 45-49 $0.300 50-54 $0.470 55-59 $0.760 60-64 $1.165 65-69 $1.974 70-74 $4.025 75-79 $8.131 80-84 $16.153 85-89 $29.780 90-94 $48.589 95-99 $73.756 Child Rate per $1,000 $0.200

Additional Benefit Providers Flexible Spending Accounts (FSA) - HealthCare and Dependent Care Elections you made with Kent County remain thru Dec 31, 2016 New elections can be made only if a Qualifying Event occurs We will have the use of a Debit Card Employee Assistance Provider Employee Connect Plus provided by Lincoln Financial GRP Workers Compensation Carrier Claims Management COBRA Administration Family Medical Leave Act FMLA Claims Administration

Questions or Comments?.