Davis School District Benefits Orientation

1. Davis School DistrictBenefits Orientation Classified EmployeesTier 2 ~Personal Leave

2. Welcome Classified Employees – Tier 2 • If you were newly hired into a retirement eligible position (20 hours or more per week) at any Utah Retirement Systems (URS) employer on or afterJuly 1, 2011 you are on Tier 2. • If you were hired into a retirement eligible position beforeJuly 1, 2011 your are on Tier 1 and will want to view that presentation.

3. Utah House Bill 255 • Please Note: Effective July 1, 2013 Classified Employees must be working a minimum of 30 hours per week to qualify for Retirement and/or Leave Benefits – unless they qualify for “grandfathering protection” based on previous eligibility (see Utah H.B. 255 and the Davis Classified Agreement for more information). • If you were in a position authorized to work between 20 and 29 hours per week prior toJuly 1, 2013 and remain in that position you qualify for “grandfathering protection”. • If you are working in a less-than-12-month position authorized for 30+ hours per week, please see the “Classified Tier 1 PLA and Sick” PowerPoint presentation. • If you are working in a 12 month position (257 days) authorized for 30+ hours per week, please see the “Classified Tier 1 VAC and Sick” PowerPoint presentation. If you are still unsure which presentation you should view, please call Payroll at 801-402-5236.

4. Before We Begin • The members of the Payroll Department are always happy to answer your questions. Feel free to call us anytimeat (801)402-5282. • Everything covered in this orientation is current policy. Things can (and do) change all the time. Make sure you stay informed about District and State policy updates that might affect you.

5. Personal Leave (PLA) • Employees who work less than 12 months (fewer than 257 contract days) and are authorized to work 30 or more hours per week: • 2 days of PLA will be accrued each year* • Employees with 15 or more years of eligible service in the District: • 1 additional day of PLA will be accrued* • Employees who work 200or more contract days per school year who do not receive Vacation Leave and paid holidays: • 2 additional days of PLA will be accrued* • A maximum of 10 PLA days can be used per school/contract year • A maximum of 20PLA days can be carried over to the next fiscal year • Leave must be used by June 30thbefore the rollover to the new fiscal year on July 1st • PLA is accrued at the beginning of each fiscal year (July 1st) *A day is defined as hours per day authorized for the position. (Personal leave eligibility, accumulation, use and carry-over are based on a single position, not a combination of positions.) See the Davis Classified Agreement for more information

6. Extended Leave • Request a leave of absence from Human Resources in writing if you will miss more than 10consecutive contract days. • Family Medical Leave Act (FMLA) • Employees can request a leave of absence of up to 12 calendar weeks (in a 12 month period • Protects your job during your absence • The District will continue to pay its portion of your Insurance (if applicable) • Must have worked continuously for the District for at least 12months • Advanced Leave Requests • Personal Leave – Employees can request an advance of up to 5 days per school year, which can be paid back with one and a half days of accumulated Sick Leave (if applicable) per day advanced: 1 Day of Advanced Personal Leave = 1.5 Days of Sick Leave For more information, see the Davis Educators’ Agreement

7. Flexible Spending Account • Set aside pre-tax dollars to pay for qualifying medical/dental and daycare expenses not covered by Insurance. • Benefits: • It’s an automatic Payroll deduction • Reimbursement Claims can be submitted anytime • You have full access to your annual healthcare contribution anytime • The NBS “Flex Card” (optional) works just like a credit card! • Have immediate access to your Flex funds without submitting claims • There is an $18 charge for the card per tax year • If you have questions about Flexible Spending, please call Elizabeth in Payroll at (801)402-5236 National Benefit Services 1-800-274-0503 or 801-532-4000 www.nbsbenefits.com

8. What you need to know: • As a NEW HIREyou can enroll in Flexible Spending for this year within 30 days of your hire date, which is your first contract day. If you would like to enroll in Flex for next year you will need to enroll during Insurance Open Enrollment, which is usually in November. • You have to re-enrollin the Flexible Spending plan every yearduring Open Enrollment • Flex is based on the tax year (January 1st to December 31st)* • There is a “Grace Period” that allows participants to incur additional expenses until March 15thof the next tax year if necessary.* • Keep your receipts, even if you are using the “Flex Card”. • All funds need to be claimed through NBS by the last BUSINESS day in March of the next tax year.* • Don’t overestimate your expenses: • Use It or Lose It: If you don’t claim the money you have contributed by the deadline … you WILL lose it.* • Contribution amounts cannot be adjusted unless you have a qualifying change of status. *These deadlines may be different if you resign or retire in a year when you are enrolled in Flexible Spending. Please contact Elizabeth in Payroll at (801) 402-5236 if you have any questions.

9. Utah Educational Savings Plan – Utah’s 529 College Savings Plan College is hard, but saving for it doesn’t have to be. • UESP makes it a cinch to start saving for college. • Does not require a minimum deposit or balance • Stretch your educational dollars AND receive some wonderful tax incentives • Get more information or open an account online at www.uesp.org or call UESP at 1-800-418-2551. Investments in UESP are not guaranteed.

10. Utah Retirement SystemsChoose Your Path

12. Hybrid Plan Two Parts: 10% Retirement Package + Pension 401(k) 10% of salary will be split between the Pensionand the 401(k) The “Contribution Rate” goes to the pension The difference between the contribution rate and the 10% employer contribution goes to the 401(k) 4 year vesting = Manage investment options after 4 years During the 4 year vesting period funds will be invested in the Medium Horizon Fund. • Guaranteed lifetime benefit • Basic benefit is based on a formula:* • Years of Service x 1.5% x Average of 5highest years) = Basic Annual Benefit • Minimum age and service requirements* • You are fully vested after 4 years of eligible employment *See “How Much Will My Pension Pay?” and “When Can I Retire?” for more information on the Pension.

13. Hybrid Contribution Rates 2013-2014 Employer Contribution Pension Rate = 401(k) Contribution 10% 8.41% = 1.59%

14. Hybrid Contribution Rates Example 1 Example 2 Employer Contribution Pension Rate = 401(k) Contribution 10% 11% = 0% 10% 8.1% = 1.9% Employer Contribution Pension Rate = 401(k) Contribution Possible Employee Contribution: If the contribution rate ever exceeds 10%, the employee pays the difference. Employee Contribution = 1.0%

15. How Much Will My Pension Pay? Pension Benefit Calculation Number of Eligible Years of Service X 1.5% X Average Salary (average of 5 highest years salary) = Basic Annual Benefit /12 = Basic Monthly Benefit Example 35 Years X 1.5% (=52.5%) X $40,000 (average of 5 highest years salary) = $21,000/year /12 = $1,750/month

16. When Can I Retire? • Your pension eligibility depends on your age and years of service. Here are the minimum qualifications: • 65 with at least 4 years of service • 62 with at least 10 years of service* • 60 with at least 20 years of service* • Any age with at least 30 years of service* (only with service purchase) • Any age with at least 35 years of service *There is an early age reduction if you retire under age 65 with fewer than 35 years of service Early Age Reduction If you have fewer than 35 years of service credit and retire before age 65, your monthly benefit will be reduced by approximately 7% for each year between the ages of 60 and 63 and approximately 9% for each year between the ages of 64 and 65.

18. Defined Contribution Plan • 10% of salary will be contributed to the 401(k) each month • 4 year vesting period • You can choose the investment options after 4 years • During the 4 year vesting period funds will be invested in the Medium Horizon Fund. • Amount of Money Received at Retirement is Based On: • Contributions • Investment Performance • Payout Period

19. Which Plan is Right for You? Hybrid • Guaranteed monthly income for life (Pension payment) • Lower risk • Professional investment managers • Cost of living adjustment (COLA) • Possible 401(k) contribution if pension rate is below 10% • Required contribution if rate ever exceeds 10% • Guaranteed monthly payout options for spouse Defined Contribution • Not guaranteed - Your income is based on investment performance • Higher risk • You manage your investments • No COLA • Full 10% of your salary will be contributed to your 401(k) • You will never be required to contribute to the plan • Pass on 401(k) balance to spouse or other beneficiary(ies)

20. All 401(k) investments will default to the Medium Horizon Plan for the first 4 years. After the 4 year vesting period you will be able to choose where your contributions are invested. Please see the URS “Investment Options” brochure for more information on your different options.

21. Choosing Your Path • Consider the advantages and disadvantages of each plan • Choose your plan at www.urs.org • You have one yearfrom your hire date to decide which plan you want • You can change your mind anytime during the first year • After one year you cannot change plans! If you do not choose a plan within the first year, your plan will default to the: HYBRID PLAN!

22. Employee Contributions (Voluntary) 1 2 3 4 5 • 401(k) • 457 • 403(b) – Annuities • Traditional IRA • Roth IRA You can contribute to none, one or more. The choice is yours.

23. Which Investment PlanShould I Choose? • Consider your tax bracket before and after retirement: • Pre-tax Deductions • Lower your taxable income now • 401(k) • 457 • 403(b) • Traditional IRA • Post-tax Deductions • Pay your taxes now • Roth IRA (Tax free growth)

24. Authorized Annuity Companies For a complete listing of the Annuity companies and representatives that are authorized to provide 403(b)’s and other investment options to Davis School District employees, please contact the Payroll Department at 801-402-5282.

26. www.urs.org If you have questions about the URS website or online enrollment, call 801-366-7750

28. The URS website has a lot of information available on the two Tier 2 plan options to help you choose the best plan for YOU.

31. Your Account Number will be included with your URS Enrollment Packet , which URS will mail to your home.

33. Once you have made a plan selection you can come to this screen to change your selection ANYTIME prior to the deadline, which will be reflected above in the (DATE) field. During your first year you will be defaulted to the Hybrid Plan for the full year – even if you have selected the Defined Contribution Plan. Once your deadline has passed URS will get you permanently set up in the plan of your choice.

34. Questions? Call Payroll: (801) 402-5282 Personal Leave and Sick Leave • Twyla: (801) 402-5326 Extended Leave and Catastrophic Leave • Marilyn: (801) 402-5327 Flexible Spending • Elizabeth: (801) 402-5236 Retirement and 401(k) • Holly: (801) 402-5176 • Cindy: (801) 402-5324

35. Thank You! If you would like step-by-step instructions for accessingMyDSDPayroll Management(where you can enter yourDirect Deposit and W-4 information, make changes to Payroll and Personal Profile information, and view/printyour pay stubs and W-2’s),please see theMyDSD Payroll Management Orientation.