PREPARE NOW FOR THE GOOD LIFE LATER Income Security + Healthcare Security = Retirement Readiness
Start Asking Questions Won t my pension be enough? Will I need additional health insurance? How much should I save? What does Medicare cover? When should I start saving? 2
Medicare Is Not Enough Medicare only covers 62% of healthcare expenses today* Healthcare expenses in retirement add up Supplemental insurance premiums and deductibles Medicare premiums and deductibles Medical equipment Long-term care Skilled nursing care 1The Employee Benefit Research Institute (EBRI) estimates, Issue Brief No. 317, May 2008, Savings Needed to Fund Health Insurance and Health Care Expenses in Retirement: Findings from a Simulation Model, by Paul Fronstin, EBRI, and Dallas Salisbury, EBRI, and Jack Van Derhci, Temple University and EBRI Fellow.
Your Pension Is Not Enough 403 (b) Retirement Plan 501 (c) (9) Retiree Health Plan Accessible for general retirement expenses Retiree income distribution is taxable Beneficiaries Assets passed to estate Dedicated to health-related retirement expenses Retiree health benefit distributions are tax-free Dependents Assets passed on for mutual benefit of the plan Income Security + Healthcare Security = Retirement Readiness
The Emeriti Program for You and Your Dependents TAX-ADVANTAGED SAVINGS REIMBURSEMENT BENEFIT RETIREMENT HEALTH INSURANCE COMMUNICATION & EDUCATION Investment options Earnings grow tax-free Assets are disbursed taxfree for medical expenses in retirement Services provided by TIAA-CREF. Tax-free withdrawals from your Emeriti Health Account for qualified medical expenses (QME). Services provided by the Savitz organization. Menu of national medical, Rx and dental plans Competitively priced Lifetime guaranteed issue Underwritten by Aetna nationally (HealthPartners in MN) Retirement healthcare planning supported through: National service center Mailed materials Online tools On-campus workshops Income Security + Healthcare Security = Retirement Readiness
SAVINGS Save Early and Consistently The power of compounding Just by saving $100 a month $300,000 $250,000 Potential account earnings Contributions Total: $264,012 $216,012 $200,000 $150,000 $100,000 $50,000 Total: $17,409 Total: $52,397 $28,397 Total: $122,709 $86,709 $0 YEARS OF SAVING $5,409 $12,000 $24,000 $36,000 $48,000 10 years 20 years 30 years 40 years These examples are intended for illustrative purposes and are not a prediction of investment results. Your own Plan account may earn more or less than this example. Actual account balances will be determined by the contributions made and any investment gains or losses. Investing in this manner does not ensure a profit or guarantee against loss in declining markets. These examples do not take fees into account and actual balances will generally be reduced by fees. Contributions and earnings accrue tax-free and are paid out tax-free for reimbursement of qualified health expenses. These examples are based on $100 contributions made at the beginning of each month and a 7% annual rate of return compounded monthly. Chart balances shown are end-of-year balances.
Your Emeriti Plan in Action All assets accumulate TAX-FREE Your employer begins making tax-free contributions at a specified age You may be able to make voluntary after-tax contributions Pay tax-free for premiums Upon turning age 65, you enroll in the Emeriti Health Insurance Upon separation of service, you begin using the Reimbursement Benefit Receive tax-free reimbursement
Your Tax Free Disbursements In Action $1,000 medical bill! Pay with Emeriti Health Account Tax-free withdrawal of $1,000 100 cents on the dollar Pay with 403(b) Retirement Plan Taxable withdrawal of approximately $1,400 72 cents on the dollar in 28% federal income tax bracket
Emeriti s Investment Options CORE FUNDS TIAA-CREF Lifecycle Funds (Retirement Class) TIAA-CREF Money Market Fund (Retirement Class) Lifecycle funds Asset diversification among asset classes Automatic rebalancing A money market mutual fund Seeks to assure the value of your investment at $1 per share CORE PLUS FUNDS Additional Mutual Funds based on institution s election Some TIAA-CREF proprietary funds Some non-proprietary funds from other mutual fund families Core Plus Funds subject to Plan Sponsor election.
Ready? Begin making payroll deferred voluntary contributions - or - Begin making ACH contributions directly from your bank account
Emeriti Retirement Health Solutions provided this information and is responsible for its content. Emeriti, TIAA-CREF, Savitz, Aetna Life Insurance Company, and HealthPartners are independent corporations and are not legally affiliated. Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider. Summary Plan Description (SPD) This presentation is intended to provide you with a brief summary of some of the details of your Employer s Emeriti Plan and the Emeriti Program. For a full summary of the terms of your Employer s Emeriti Plan you must consult the SPD, which will be provided to you upon enrollment or upon request. Investment Adviser Status Emeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options available under the Emeriti Program. Emeriti may provide non-personalized educational materials to plan participants relating to their and their employer s contribution to their Emeriti Plan and the allocation of their Emeriti Health Account balances among available investment options. Emeriti does not provide personalized investment advice to participants. The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the Interests ) may be treated as securities under federal or various state securities laws. The offering of these Interests is subject to compliance with any applicable federal or state law. For residents of Georgia, the Interests are being offered in reliance on paragraph 13 of Code Section 10-5-9 of the Georgia Securities Act of 1973, as amended (the Georgia Act ). The Interests may not be sold or transferred except in a transaction which is exempt under the Georgia Act or pursuant to an effective registration under the Georgia Act.
Interests in any retiree healthcare plan discussed herein are offered solely by the employer. Teachers Insurance and Annuity Association of America (TIAA) will provide services to the plan and may issue plan communications on behalf of the plan sponsor, in its capacity as a plan recordkeeper. TIAA-CREF Individual & Institutional Services, LLC serves as a broker-dealer with respect to underlying mutual funds only, and does not offer, market or sell interests in such plans or otherwise provide broker-dealer services with respect to the interests in such plans. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. The tax information contained herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
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