Why preparing for retiree health is important

1. Why preparing for retiree health is important Emeriti Retirement Healthcare Savings Program

2. Emeriti Retirement Healthcare Savings Program Forward thinking retirement planning includes healthcare

3. Know the facts MEDICARE IS NOT ENOUGH Medicare was never intended to cover all your healthcare expenses in retirement. Medicare does not include long-term care coverage.

4. Healthcare in retirement adds up • Healthcare expenses not covered by Medicare $273,000 • Savings needed for a 65-year-old couple retiring today1 EBRI Notes, 12/20/2017, Vol. 38, No. 10. National average. Savings needed for Medigap Plan F premiums, Medicare Part B premiums and out-of-pocket (median) drug expenses. Does not include long-term care. A couple with a goal of having a 90% chance of having enough savings to cover healthcare expenses in retirement needs $273,000. For institutional investor use only. Not for use with or distribution to the public.

5. Expenses in retirement require different thinking — especially healthcare Healthcare could be your largest expense in retirement. It’s a good idea to give special care to how you allocate income, especially for healthcare which could take a larger chunk of it. For institutional investor use only. Not for use with or distribution to the public.

6. Working together to create a financially healthy retirement IncomeSecurity HealthcareSecurity Total Financial Security

7. Income Security + Healthcare Security = Total Financial Security Retirement Plan Planning for general expenses Planning for healthcare expenses • Taxable distribution of pre-tax contributions • Beneficiaries • Assets may be passed to estate after death • Tax-free reimbursement of qualified medical expenses • Covers eligible dependents • Balance forfeited at death if no eligible dependents Emeriti RHSP TIAA INTERNAL USE ONLY

8. Emeriti’s three pillars of retiree healthcare Tax-free ReimbursementBenefit For Qualified Out-of-Pocket Medical Expenses Flexible Group HealthInsurance Underwritten By Aetna Tax-advantaged Retirement HealthAccount Use Assets Exclusively For Medical Expenses In Retirement Benefits available to retiree, spouse and eligible dependents

9. Triple tax-free healthcare savings x3 TAX-FREE HEALTHCARE SAVINGS Employer contributions Earnings Reimbursement for qualified medical expenses TIAA INTERNAL USE ONLY

10. Tax efficiencies help you preserve retirement income $1,000medical bill Pay with Emeriti Health Account Tax-free withdrawal $1,000 • Pay with retirement plan account • Taxable withdrawal $1,500 • 33% federal income tax bracket This is a hypothetical example for illustrative purposes only. It assumes the retirement plan account does not include after-tax contributions. Actual tax consequences will vary based on a variety of factors, including your tax bracket and the type of contributions made to your retirement plan account. Please consult a tax advisor for assistance with your particular situation.

11. Tax-free reimbursements Medicare & insurance co-pays Qualified long-term care premiums Vision, hearing & dental • Reimbursement for qualified IRC Section 213(d) medical expenses1 • Benefits available to retiree, spouse and eligible dependents • If you meet vesting requirements when you terminate, you can start using, based on plan rules determined by employer RHSP Health Account Medicare & insurance deductibles COBRA Hospital & surgical expenses Prescription drugs Healthinsurance premiums If a medical expense is not qualified as defined by IRS Section 213(d), the reimbursement request is denied.

12. Who makes contributions? • Employer will start making annual contributions when you are age 35 • Employee can make after-tax contributions anytime (consult your financial advisor before making any investment decision) • Your voluntary contributions will be made on an after-tax basis • All earnings will accumulate and be paid out tax-free to help pay for qualified medical expenses • Utilize payroll deduction during active service • Use ACH transfer from your bank account – even after you terminate or retire

13. When can you use the money for reimbursement of qualified medical expenses? • When you terminate employment with 5 years of service and reach age 55.

14. How you get reimbursed Emeriti Health Account Default: TIAA Lifecycle Investment Funds Submit claim online or by mail REQUIRED STEP: Move money into TIAA Money Market Fund Have your reimbursement deposited directly into bank account or sent as a check TIAA INTERNAL USE ONLY

15. Building blocks of Medicare Part A – (Hospital) and Part B (Medical)Original Medicare • Coverage provided by Medicare • Doctors and providers must accept Medicare • No monthly premium for Part A • Part B has a monthly premium – ($134 in 2018) Part C – Medicare Advantage, PPO PlanReplaces Original Medicare • Private insurers, approved by Medicare, provide Parts A & B coverage • You will get extra benefits • Most doctors and providers accept Medicare and the Medicare Advantage plans • Monthly plan premium - varies by individual carriers Part D – Prescription Drug • Private insurers, approved by Medicare, provide coverage • Different plans cover different drugs at different levels • Monthly plan premium – varies by individual carriers

16. How Aetna Medicare Advantage Plans Work Simple: Medicare Advantage is an all-in-one plan • Easy to use • One ID card for medical Rx • More benefits than Original Medicare Parts A and B • Care advocacy programs • Wellness benefits • One monthly Explanation of Benefits for each medical and pharmacy Benefits available to retiree, spouse and eligible dependents For institutional use only. Not for use with or distribution to the public.

17. How Aetna Medicare Advantage Plans Work Flexible: Customized plans support your access to providers Covering you in or out-of-network: Customized group plan – not available outside of Emeriti Access to providers nationwide Providers do not have to be in Aetna network Same benefits in or out of network No referrals needed Covers retirees nationally Benefits available to retiree, spouse and eligible dependents For institutional use only. Not for use with or distribution to the public.

18. How Aetna Medicare Advantage Plans Work Holistic: Supporting your health journey Working with you and your providers to meet the range of health needs Benefits available to retiree, spouse and eligible dependents For institutional use only. Not for use with or distribution to the public.

19. How Aetna prescription drug plans work Medicare-approved: Part D prescription drug plans Your costs vary based on plan and coverage tier You use a drug formulary designed for Emeriti • You use your Aetna card • Aetna is your Rx insurance provider Benefits available to retiree, spouse and eligible dependents NOTE: A formulary is a list of Part D prescription drugs covered by the Aetna plan.

20. How Aetna dental works 1 • Aetna is your dental insurance provider • One-time opt-in opportunity 2 • 12-month waiting period for major services; waived with evidence of continuing coverage 3 • Not available as a stand-alone plan 4 Benefits available to retiree, spouse and eligible dependents Note: in the states of CA, OR, WA, the stand-alone Dental plan may be elected if the participant is enrolled in a Kaiser Permanente MAPD Plan, and with evidence of existing coverage. Note: Dental not available in MD.

21. When are you eligible for Aetna coverage? 1 2 3 • Be enrolled in Medicare Parts A & B

22. Optional approach Enroll in a supplemental medical plan outside of the Aetna plans Enroll in the Aetna Rx Standard Plan as a stand-alone option • Preserve your ability to enroll in Aetna medical and dental plans in the future

23. Things to keep in mind • WHO CAN USE THE EMERITI BENEFIT? • You and your spouse and other eligible dependents can use the money in your health account to get reimbursed for qualified medical expenses • You and your spouse and other eligible dependents can enroll in the Aetna coverage • If you pass away, your spouse and eligible dependents may continue using the full benefit • WHAT IF I DON’T ELECT AETNA COVERAGE PROVIDED THROUGH EMERITI? • You will have a one-time opportunity to enroll unless you have a qualifying life event in the future • You can use the money in your health account to pay for any retiree health insurance and qualified out-of-pocket medical expenses Benefits available to retiree, spouse and eligible dependents

24. The lead up to retirement Call Emeriti Service Center to request enrollment kit ONGOING 1 MONTH BEFORE YOU RETIRE 3 MONTHS BEFORE YOU RETIRE Receive information in the mail from Aetna & attend campus workshops Enroll in insurance plans of your choice & plan ahead to track expenses for reimbursement

25. Not sure which Aetna plan is best for you? CALL AETNA SPECIALISTS FOR HELP WITH CHOOSING PLANS 1-855-212-5666

26. Thank You QUESTIONS?

27. ADDENDUM

28. Qualifying life events - part 1

29. Qualifying life events – part 2

30. Qualifying life events – part 3 *death of participant prior to obtaining institution retirement criteria results in no coverage for any surviving dependents. *keep in mind if a participant terminates employment and has met your retirement criteria but continues to work and is covered by their “active coverage” outside of F&M, they will still be eligible to enroll in the Emeriti insurance once they terminate that employment. If a participant terminates employment but elects another retirement health plan (AARP, BCBS, etc.) they are waiving their eligibility to enroll in the Emeriti coverage. IF the AARP, BCBS, etc. plan is terminated or the retiree moves out of the area and the plan they are enrolled in is not offered that is a Qualifying Life Event and would allow the retiree to enroll in the Emeriti insurance at that point. *scenarios may be reviewed on a case-by-case basis to determine eligibility due to loss of coverage per Aetna’s approval.

31. This material is for informational or educational purposes only and does not constitute investment advice under ERISA. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances. Interests in any retiree healthcare plan discussed herein are offered solely by the employer. HealthPartners are independent corporations and are not legally affiliated. The full name of Emeriti Retirement Health is The Emeriti Consortium for Retirement Health Solutions, an Illinois Nonprofit Corporation. Emeriti Retirement Health is not an insurance company, insurance broker or insurance provider. The Emeriti Program is delivered in collaboration with TIAA, CBIZ RPS, Aetna Life Insurance Company, and HealthPartners.  Teachers Insurance and Annuity Association of America (TIAA) is Emeriti’s accumulation record keeper, trust services provider, and investment manager. TIAA is a leading provider of financial services to nonprofits offering investing, banking, advice and guidance, and retirement services. TIAA has helped institutions and individuals pursue financial well-being for 100 years. CBIZ RPS provides services in connection with the Emeriti group insurance administration and Emeriti medical expense reimbursement processing. Headquartered in Cleveland, Ohio, CBIZ RPS has 26 offices around the country and more than forty years of experience in providing full-service benefits services supporting employees and retirees in organizations nationwide. Aetna Life Insurance Company is the primary health insurer for the Emeriti Program, providing fully insured medical insurance and health-related products. For over 150 years, Aetna has been an innovator in the delivery of insurance solutions and is a nationwide provider of Medicare-approved Part D prescription drug services. For Minnesota institutions and their Minnesota-resident retirees, HealthPartners provides participants with medical insurance and healthrelated products. HealthPartners is the largest consumer-governed nonprofit health care organization in the nation. 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 record keeper. TIAA group of companies cannot and does not provide tax or legal advice and recommends that plan sponsors consult their own legal and tax advisors for such advice. FOR INSTITUTIONAL USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE GENERAL PUBLIC.