Sent on behalf of Darrell Early, Director of Financial Services and Kate Ingersoll, Executive Director of Fiscal Services

Transcription

1 To: All TRUSD Employees From: Sent: Subject: Attachments: Importance: Zenobia.Gerald Friday, September 26, :11 PM Section 125 and Voluntary Benefit Plans/Options TRUSD-AFA Combo_Final Revision.pdf; Standard Group Life ins brochure2015.pdf High Sent on behalf of Darrell Early, Director of Financial Services and Kate Ingersoll, Executive Director of Fiscal Services SECTION 125 As you know from previous correspondence from the district, we continue to offer a Section 125 plan for However, for the 2015 calendar year, ONLY American Fidelity will administer the Section 125 plan. VOLUNTARY SUPPLEMENTAL BENEFITS We have had various company options for voluntary supplemental benefits during the past few years, but for 2015 ONLY the following companies are available for new voluntary supplemental benefits: Disability and Life Insurance o Standard Insurance Company o American Fidelity Assurance Company Cancer, Critical Care, Long Term, Accident, Hospital, etc. Insurance o American Fidelity Assurance Company If you have an existing plan(s) with an insurance company NOT listed above, and you do not make any changes to your policy, it will continue to be paid as a payroll deduction through the 2015 calendar year. We will communicate with the companies to ensure you can keep your existing plan(s). However, at this time, we do not know if the 2016 premiums will be a payroll deduction or if you will need to make direct payments to the insurance company. One known plan that will be grandfathered in as a payroll deduction is your current whole life policy through Colonial Life. We will keep you updated on how the payments of the 2016 premiums will need to be paid. Please visit the Payroll/Benefits web page for additional information previously communicated about Open Enrollment. ### Zenobia J. Gerald Director of Communications Twin Rivers Unified School District 5115 Dudley Boulevard McClellan, CA Direct: Cell:

2 PLAN YEAR 1/1/ /31/2015 BENEFITS OVERVIEW Twin Rivers Unified School District For more information, contact your American Fidelity Account Representative. Tangee Franco, CA Lic. #0B04772 Laura Whittaker, CA Lic. #0H81319 Joyce Traylor, CA Lic. #0I56106 Northern California Branch Office 9355 E. Stockton Blvd. Suite #110 Elk Grove, CA americanfidelity.com SB

3 Twin Rivers Unified School District Dear Twin Rivers Unified School District Employee: American Fidelity, providing financial protection solutions to educational communities for more than 50 years. Welcome to your 2015 benefit enrollment! This year, Twin Rivers Unified School District is partnering with American Fidelity to provide you with information and efficiency as you make your benefit elections for the coming year. Enrollment begins September 15th and closes October 6th during which you will be making benefit elections effective January 1, 2015 for your Medical, Dental, Vision Insurance, and voluntary benefits. A time has been scheduled at your site/department to meet with an American Fidelity benefit counselor for open enrollment. The open enrollment period allows you the opportunity to enroll in or change: Your Medical Plan; Your Dental Plan; Your Vision Plan; Your Supplemental Life Insurance or other voluntary benefits; Your Flexible Spending Accounts; Section 125 plan (Dependent Care Flexible Spending Account & Health Care Flexible Spending Account) American Fidelity is introducing a new online enrollment system for a more efficient process, AFenroll. You will be meeting with an American Fidelity representative one-onone to walk you through the online enrollment process of the supplemental insurance and other voluntary benefits. A representative will go over the process step-by-step and answer any questions you might have. Your enrollment should be an easy process and take no more than 30 minutes. We hope you find your 2015 enrollment convenient and informational. For more information, contact your American Fidelity Account Representative. Tangee Franco, CA Lic. #0B04772 Laura Whittaker, CA Lic. #0H81319 Joyce Traylor, CA Lic. #0I56106 Northern California Branch Office 9355 E. Stockton Blvd. Suite #110 Elk Grove, CA americanfidelity.com

4 Section 125 Plan YOUR SECTION 125 CAN SAVE YOU MONEY! SECTION 125 If there was a program available that could dramatically save you money on your taxes, would you take advantage of it? That s exactly what the Section 125 Plan does reduces your taxes and increases your spendable income. HOW THE PLAN WORKS The Section 125 Plan allows you to deduct the cost of eligible benefits from gross earnings before taxes. Plus, the plan is available to you at no cost and you re already eligible all you have to do is enroll! By implementing this plan, your employer is helping you reduce your taxes and increase your spendable income. SEE HOW MUCH YOU COULD SAVE The savings an employee may experience under the Section 125 Plan is illustrated in the example below. By utilizing the Section 125 Plan, this employee would have $70 more per month to apply toward needed insurance benefits or spendable income. Annually, this would be an increase of $840. HOW TO ENROLL To enroll in the Section 125 Plan, simply complete an election form to enroll and take advantage of paying for eligible premiums on a pre-tax basis. You will be notified in advance when it s time to enroll. In most cases, you must re-enroll each year to continue your participation in the Section 125 Plan. HOW TO MAKE CHANGES TO YOUR ELECTION While you can make changes to your election each year during annual enrollment, the only time regulations will allow you to make a change during the plan year is if you experience an allowable election change event. Some examples of an allowable election change event include: Change in legal married status Change in number of dependents Termination or commencement of employment Dependent satisfies or ceases to satisfy dependent eligibility requirements Change in residence or worksite that affects eligibility for coverage These examples may not be all-inclusive. Please contact your employer for guidance with your specific situation. Employee Name: Doe, John Social Security # XXX Employee Number: 3839 Payment Date: 1/12/10 Period Begin Date: 1/1/10 Earnings & Hours Without S125 With S125 Monthly Salary $2,000 $2,000 Medical Expenses N/A -$250 Taxable Gross $2,000 $1,750 Taxes (Federal & 20%) -$400 -$350 Less Estimated FICA (7.65%) -$153 -$133 Medical Deductions -$250 N/A Take Home Pay $1,197 $1,267 WOW! That s a difference of $70! *Where allowable by law. If you are subject to FICA taxes, there might be a reduction in your social security benefit due to the reduction of FICA contributions. Example is hypothetical for illustrative purposes only. Please consult your tax advisor for actual tax savings. SB

5 Dependent Day Care and Health FSAs File your claims online. Sign up for direct deposit today! Enjoy a money-saving way to pay for eligible medical or dependent care expenses with a Flexible Spending Account (FSA) that deducts pre-tax dollars from your paycheck. Simply choose the amount to be deducted, and the funds are set aside to be used for eligible expenses throughout the year. You can choose from two accounts, and both are offered to you at no charge. HOW THE ACCOUNTS WORK A Dependent Day Care Flexible Spending Account (FSA) allows you to set aside pre-tax dollars to reimburse yourself for incurred eligible dependent care expenses. Because your money goes into the account before income taxes are withheld, you pay less in taxes, and ultimately have more disposable income. You may allocate up to $5,000 per tax year for reimbursement of eligible dependent care services (or $2,500 if you are married and file a separate tax return). A Health Flexible Spending Account (FSA) (also known as an Unreimbursed Medical Account) can save you money by allowing you to set aside part of your pay, on a pre-tax basis, to reimburse yourself for eligible medical expenses such as copayments, medical deductibles, prescriptions, and more. Expenses incurred for you, your spouse, and other qualifying individuals are eligible for reimbursement. The maximum amount allowed to contribute into this account is $2,500 per calendar year. (Please see your employer for the maximum amount allowed under your plan.) ELIGIBLE EXPENSE EXAMPLES Acupuncture Alcohol/drug rehab Anesthetist Artificial limbs/teeth Chiropractor Dental care Eye exam/eyeglasses/ contact lenses Hearing aids/batteries Insulin Invitro fertilization Laser eye surgery Midwife Optometrist Orthodontia* Out-patient care OTC drugs and medicines for treatment of a medical condition** Pediatrician Physical therapy provided by licensed therapist INELIGIBLE EXPENSE EXAMPLES Capital expenditures Cosmetic procedures Exercise equipment Insurance premiums Mattresses/pillows Personal use items Teeth whitening Practical nurse Psychiatrist Psychologist Stop-smoking program Transportation expenses relative to medical care based on IRS standard mileage allowance Weight loss program for obesity*** * Service must have been incurred or already paid. ** Will require a medical practitioner s prescription. *** May need doctor s statement for medical necessity. If you are interested in participating in either of these accounts, we will be happy to set up your account for direct deposit. If you do not file sufficient claims for reimbursement, you may lose the unused amount remaining in your account at the end of the plan year. This is often referred to as the use-or-lose rule. SB

6 Available Benefits Accident Only Insurance 1,7 Accidents can happen any time. Limited Benefit Accident Only Insurance can help protect you and your family if a covered accident occurs. Benefit payments are paid directly to you, regardless of other coverage you may have. Cancer Insurance 1,7 A cancer diagnosis can be expensive. Benefit payments from American Fidelity s Limited Benefit Cancer Insurance Plan can be used however you d like, including house payments, utilities, and meals/lodging expenses. AF Critical Choice 1,5 : A Limited Benefit Specified Illness Policy If you were to experience an illness, such as a heart attack or permanent damage due to a stroke, Supplemental Health Insurance may be able to help provide some financial protection so you can focus on your recovery. AF Permanent Life Insurance 2,7 A whole life insurance product that provides a guaranteed level death benefit, guaranteed cash value, and guaranteed level premiums for the life of the policy, provided premiums are paid as required. Disability Income Insurance 7 Disability Income Insurance helps protect your income. When you are unable to work due to a covered Injury or Sickness, your disability benefit will be paid up to the benefit period for which premium has been paid. Your disability benefit can help pay for necessities. AF Term Life Insurance 2,7 Choose from 10, 20, or 30 year term periods. Rates are guaranteed not to increase during the initial term period you choose (b) Annuities2,4 American Fidelity s 403(b) Annuities allows participating employees to defer current taxable income to possibly use as an additional source of retirement income. 1 This product is inappropriate for people who are eligible for Medicaid coverage. 2 Not generally qualified benefits under Section Premiums are adjusted upon renewal. 4 Please contact a tax advisor for information regarding your specific tax situation. 5 This product may be referred to by a different name. 7 These products may contain limitations, exclusions and/or waiting periods. These are brief descriptions of the actual policies. All products may not be available in all states. SB Win a $100 Visa Gift Card! You must meet with your American Fidelity Representative by October 3rd for the chance to win a $100 VISA Gift Card! It is very important that you enroll for your 2015 benefits. All employees who enroll by October 3rd will be entered into a drawing. There will be 8 names drawn and the lucky winners will win a $100 VISA Gift Card!

7 Preparing for Your Enrollment Before you meet with your American Fidelity representative, take time to evaluate your current coverage and decide how well it serves the needs of you and your family. We offer several ways to educate you on all the benefits made available to you through group meetings and one-on-one benefit reviews, which allows you to create the benefit package that is right for you. IMPORTANT POINTS TO CONSIDER WHAT TO BRING TO YOUR APPOINTMENT Review your beneficiaries. Review American Fidelity s options of portable insurance plans that you can keep if your employment changes. Evaluate your need for life insurance. Consider increasing your Disability Income Insurance policy amount to match your current salary. Driver s license Bank account information (if you wish to sign up for direct deposit). Spouse and children s date of birth and social security number, if you are considering coverage for them. Beneficiary information, including (if a trust) full name and date of trust. Have you recently received a pay increase? Have you or are you planning on getting married, having children, or buying a home? What would happen if you were suddenly ill or disabled? Start thinking about which insurance plans will work best for you and your family s needs. These questions and others will be addressed during your benefit consultation to make sure you are properly covered. It takes just a few moments to review your coverage and help protect the welfare of you and your family. For more information, contact your American Fidelity Account Representative. Tangee Franco, CA Lic. #0B04772 Laura Whittaker, CA Lic. #0H81319 Joyce Traylor, CA Lic. #0I56106 Northern California Branch Office 9355 E. Stockton Blvd. Suite #110 Elk Grove, CA americanfidelity.com SB

8

9

10

11

12

13

14

15