RETIREE NEWS SPRING 2009 DIRECT BILLING FOR PAYMENT OF YOUR MEDICAL PREMIUMS NEW DISCOUNT VISION PLAN FOR RETIREES NEW BENEFIT!

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1 RETIREE NEWS SPRING 2009 NEW DISCOUNT VISION PLAN FOR RETIREES Effective 4/1/09, NYU partnered with a nationally recognized vision plan: VSP. You and your dependents covered under your medical plan are automatically enrolled in the discount vision plan, at no cost to you. You will receive a VSP Access Plan ID card in the mail shortly. You select a VSP private-practice provider to receive discounts on eye exams and eyewear. Discount Eye Care Plan Coverage WellVision Exam SM : 20% off eye exams through VSP s national network of doctors Glasses: 20% off pair of prescription glasses 20% off lens options 20% off sunglasses Contact Lenses: 15% off contact lens services, excluding materials Want to learn more? Call VSP at (identify yourself as an NYU retiree) or visit NOTE: VSP has replaced the EyeMed Discount Program. DIRECT BILLING FOR PAYMENT OF YOUR MEDICAL PREMIUMS If you are currently writing a monthly check for your Medical and/or Life Insurance premium and mailing it to EBPA (the vendor who processes direct payments for NYU benefits), you can now have these payments automatically deducted from your checking or savings account. Signing up for this new payment option is easy and you won t have to worry about the possibility of your payment being late, or lost in the mail. To enroll for Direct Billing, visit the NYU Benefits website and print out this form: Complete the form and return it with a voided check to EBPA at: P.O. Box 1150 Exeter, NH NOTE: NYU strongly recommends that you sign up for this new payment option. NEW! Track Your Payments Online! EBPA has a new website that allows you to go online and view your account. Go to: NEW BENEFIT! PET INSURANCE There will come a time when your pet needs medical attention. But these days, that can cost hundreds of dollars. Fortunately, NYU now offers Veterinary Pet Insurance (VPI) that allows you to provide medical care for your pet without having to worry about the cost. NYU retirees are eligible to receive a group discount* on premiums. Payments will be conveniently handled through direct bill. VPI policies cover a multitude of medical problems and conditions related to accidents or illnesses (even cancer) for dogs, cats, birds, ferrets, rabbits, reptiles and other exotic pets. There is also optional routine care coverage because regular veterinary care is critical to the long-term health of your pet. Call (8 am 6 pm ET) or go to: *Discount includes multiple pets. All applications are subject to underwriting approval. Read your policy for complete coverage details. Underwritten by Veterinary Pet Insurance Company (CA), Brea, CA National Casualty Company (Nat l), Madison, WI, an A+ 15 rated company Veterinary Pet Insurance Company.

2 Q&A: RELIEF FROM REQUIRED MINIMUM DISTRIBUTIONS The following Q&A addresses legislation recently passed by Congress concerning required minimum distributions intended to provide relief during this period of volatility in the financial markets. Q. Can I defer required minimum distributions in 2009? A. On December 23, 2008, the Worker, Retiree and Employer Recovery Act (WRERA) was signed into law, which allows individuals who are subject to required minimum distribution rules to suspend required minimum distributions from their retirement plan or Individual Retirement Accounts in 2009 without penalty. The law is intended to provide relief to people concerned about the potential impact of ongoing financial market volatility on their retirement accounts. If you expect to receive a required minimum distribution in 2009 that you would like to suspend, you will need to contact TIAA- CREF at or Vanguard at to request a voluntary suspension. The relief treats equally individuals who usually take the "required distribution" amount monthly and those who take a lump sum amount at the end of the year. Q. Will suspensions be available for beneficiaries (such as spouses or partners), or will they be limited to the original account holder? A. Account holders or their beneficiaries who are required to receive a required minimum distribution payment in 2009 may voluntarily request that the payment be suspended. Q. What if I receive a minimum distribution payment in 2009 that I did not want to receive? A. The payment may be eligible to be rolled over to a qualified retirement account without penalty. Contact TIAA-CREF at or Vanguard at for more information. Q. Can I take a partial distribution? A. Yes. If you are scheduled to receive a required minimum distribution in 2009 you should suspend that amount and request the partial distribution when necessary. Q. I depend on my distribution and do not want to suspend it. What should I do? A. You do not need to take any action. Participants who receive minimum distributions will continue to receive them unless you notify TIAA-CREF or Vanguard that you would like the payment to be suspended. If you choose to receive your minimum distribution payment, keep in mind that since your 2009 required distribution is based on your 2008 year-end account value, the amount you receive may be less because of recent fluctuations in the stock market particularly if your allocation includes equities. Q. What if I do not want to take a required minimum distribution in 2008 or have already received a payment? A. Individuals who are subject to required minimum distribution rules in 2008 will continue to be required to take their distribution. The new law applies to required minimum distributions in The U.S. Treasury Department has said it will not offer relief with respect to minimum distributions made in Q. If I suspend a minimum distribution in 2009, will I face any additional taxation or penalty when I take the distribution in subsequent years? A. No. The law allows you to defer minimum distributions in 2009 without penalty. Q. Can I wait until the end of 2009 to decide whether to suspend a required minimum distribution? A. No. Participants who receive minimum distributions will continue to receive them. If you expect to receive a required minimum distribution in 2009 that you would like to suspend, you will need to contact TIAA-CREF at or Vanguard at to request a voluntary suspension prior to your required minimum distribution.

3 HOW THE NYU RETIREE MEDICAL PLAN COORDINATES WITH MEDICARE BENEFITS If you and/or your dependent(s) enroll in the NYU Retiree Medical Plan, when you are eligible for Medicare, Medicare will be primary (pays first) and the NYU Retiree Medical Plan will be secondary. That means that the NYU plan will generally only pay your medical claims after Medicare has paid its benefit. The NYU Retiree Medical Plan is designed to supplement Medicare coverage. However, it will not reimburse any amount that is denied by Medicare or that is outside of the Medicare limiting charge for a particular medical procedure. Physician accepts Medicare assignment Medicare allowance: $150 Amount physician accepts: $150 NYU reimbursement amount: $120 ($150 x 80%) Less Medicare amount: $120 ($150 x 80%) Amount from NYU Plan: $ 0 ($120 - $120) from Medicare and NYU: $120 Your out-of-pocket cost: $ 30 ($150 - $120) Physician accepts Medicare assignment: You ve Reached the Out-of-Pocket Limit Medicare allowance: $150 Amount physician accepts: $ % of Medicare allowance: $150 Less Medicare amount: $120 ($150 x 80%) Amount from NYU Plan: $ 30 ($150 - $120) from Medicare and NYU: $150 Your out-of-pocket cost: $ 0 Physician does not accept Medicare assignment Medicare allowance: $150 Medicare limiting charge: $ (Allowance plus 15% of allowance) [$150 + ($150 x 15%)] NYU reimbursement amount: $138 ($ x 80%) Less Medicare amount: $120 ($150 x 80%) Amount from NYU Plan: $ 18 ($138 - $120) from Medicare and NYU: $138 Your out-of-pocket cost: $34.50 ($ $130) Expense is Covered by NYU Plan and not by Medicare (For example, acupuncture charges or services received outside the US.) NYU Allowance for R&C Charge: $200 Amount payable from NYU Plan: $160 ($200 x 80%) Amount: $160 Your out-of-pocket cost: $40 YOUR NYU PRESCRIPTION DRUG BENEFITS All NYU Retiree Medical Plans include prescription drug coverage through Caremark at no additional cost, except if you are enrolled in Secure Horizons HMO or HIP VIP HMO (for Medicare-eligible Retirees), which provide their own prescription drug benefits. Call Secure Horizons ( ) or HIP VIP ( ) for more information. Note to Medicare-eligible Retirees: The Caremark Prescription Drug coverage provided by the NYU Retiree Medical Plans is creditable coverage, which means that it meets or exceeds the coverage available from Medicare Part D. If you are Medicare-eligible and enroll in one of the NYU Retiree Medical Plans, you do not need to enroll in Medicare Part D prescription drug coverage. Continued

4 Save Money and Time with Mail Order Your plan s mail order pharmacy provides lower cost and convenient home delivery for all of your long-term maintenance medications. If you have prescription drug coverage through CVS/Caremark, you may request a refill of a 90-day prescription through mail service at day 50. You may also receive as much as a 180- day supply at mail service, if your physician will write the prescription for a 180-day supply. You will pay two times the copay you would pay for a 90-day supply at mail service. This makes it easy to be sure you won t run out of your medications. Mail Order Tip: You now have more flexibility when filling your prescriptions for maintenance prescription drugs. The new cost-saving option, called Maintenance Choice, lets you choose which is more convenient for you and your covered dependents -- getting your long-term maintenance prescriptions mailed to your home, or picking up the maintenance at your local CVS pharmacy. The copay will be the same either way. After the first time you fill a maintenance medication through mail order you will receive a notice from CVS/Caremark offering you the choice of how you want your maintenance medications filled. CVS/Caremark Prescription Drug Plan Purchase at Retail Pharmacy (30-day supply) Purchase through Mail Order Pharmacy (90 day supply) Purchase through Mail Order Pharmacy (180 day supply) Part B Drugs Annual Deductible Annual Maximum Lifetime Maximum $5 Generic prescription $20 Brand- Preferred $35 Brand Non-Preferred $10 Generic prescription $40 Brand Preferred $60 Brand Non-Preferred $20 Generic prescription $80 Brand Preferred $120 Brand Non-Preferred N/A None None None Notes for CVS/Caremark prescriptions: If you purchase a brand-name drug that is not on Caremark s Preferred Drug List because there is no other brand on the market, you will pay the Primary Preferred Drug List copay. Two 30-day fills of maintenance drugs are covered at retail pharmacy per calendar year; third and subsequent 30-day fills of maintenance drugs at retail pharmacy are subject to a $50 copayment. Contact Caremark to determine if your medication is considered maintenance. (Controlled substances are not subject to this restriction.) Did you know that mail order pharmacy can add a layer of protection? If you are taking more than one maintenance medication, the mail order pharmacy can add a layer of protection. Since all of your prescription medications are filled in the same location, the pharmacist filling your prescription has access to your complete medication list and can assess your risk for potential drug interactions and/or unwanted side effects. Questions about Your Prescriptions? Call or your prescription drug benefits provider for more information: Caremark: or customerservice@caremark.com SecureHorizons HMO: HIP VIP HMO: Controlled Substances Have Special Requirements In some instances, even though you take a specific medication on a regular, recurring basis, it may be classified by law as a "controlled substance." Examples of prescriptions that are classified as controlled substances are: Vicodin, Acetaminophen with codeine and Marinol, Valium, Ambien, Xanax, Robitussin AC, and Lomotil. Since Federal and state laws regulate the dispensing of controlled substances to no more than a 30-day supply, or prohibit dispensing through the mail, the plan will not consider controlled substances to be maintenance medications, even if you take them on a regular ongoing basis.

5 STAY IN TOUCH WITH NYU! Even though you re retired, it s still very important that you contact NYU s Benefits Office if you Move to a New Address NYU will need your new address to keep you informed of any changes to NYU benefits every year. In addition, moving may affect some of your benefit plans, particularly if you move out of your health plan s coverage area. Any time you change your home address or telephone number, you should contact the Benefits Office so that your NYU information can be updated. If you have accounts with TIAA-CREF or Vanguard, you should contact them directly to update your address. Experience a Life Event Marriage or Birth of a Child If you want to add a spouse or new dependent to your NYU medical insurance, you will need to notify the NYU Benefits Office within 31 days of your marriage or the birth. Divorce or Ending Domestic Partnership Getting a divorce or ending a domestic partnership can be a difficult and complicated process and it can impact the amount you pay in medical benefit coverage through NYU. You will need to notify the NYU Benefits Office within 31 days of your divorce or file a Domestic Partnership Termination form with the NYU Benefits Office. You need to notify NYU within 60 days of your divorce or termination of your domestic partnership so that your ex-spouse or former domestic partner will have the right to continue benefit coverage for themselves under the federal COBRA law. Death Upon the death of your spouse or registered domestic partner, you should notify the NYU Benefits Office to update your medical insurance coverage. In addition, your beneficiary, or the executor of your estate, should be instructed to notify the NYU Benefits Office of your death as soon as possible. An NYU Benefits Specialist will assist your beneficiary in filing a claim for life insurance benefits if you participated in this plan through NYU. Provider Contact Information Phone Web Site Aetna, Inc. HMO Caremark, Inc EBPA HIP VIP Premier Medicare HMO John Hancock Financial Services, Inc. (Long Term Care Insurance) CONTACT US: benefits@nyu.edu Phone: Mail: 7 E. 12 th St. New York, NY User Name: nyu / Password: jhancock Medicare Oxford Health Plans HMO Secure Horizons (UHC) Social Security Administration The Standard Life Insurance Company x 8008 TIAA-CREF (Retirement Accounts) UnitedHealthcare (Point-of-Service) UnitedHealthcare (Retiree Medical Plan-Indemnity) The Vanguard Group (Retirement Accounts) Veterinary Pet Insurance (VPI) VSP Access Plan (Vision Discount Plan)

6 TUITION REMISSION BENEFITS: WHAT HAS CHANGED? The University Benefits Assessment Task Force (UBAT) was charged with finding cost-neutral opportunities for increasing the positive impact of NYU's benefits spending. Tuition Remission (TR) benefits were discussed at length and the following recommendations are now in effect. Undergraduate TR Benefits for... Spouse/Domestic Partner: Reduced to 50% from 100%, effective 2/1/09. Graduate TR Benefits for... Dependent children: No longer available, effective 2/1/09. Spouse/Domestic Partner: Reduced to 50% from 100%, effective 2/1/09, Please Note: Effective 9/1/08, Stern School of Business began excluding its full-time graduate programs from eligibility for tuition remission, consistent with the TR policy at NYU School of Law, NYU School of Medicine and NYU College of Dentistry. For details, go to and click on your employee code. SEND US YOUR ADDRESS AND HELP NYU GO GREEN! Please send us your address to help us save money and foster a "green" culture: benefits@nyu.edu. Sending future benefits updates electronically is faster and more efficient than mailing printed newsletters AND it helps all of us do our part to improve NYU's environmental performance. Learn more about Sustainability at NYU and NYU Green Action Plan at: