FastFacts Feature Presentation

1. We are using audio during this session, so please dial in to our conference line… • Phone number: 877-322-9648 • Participant code: 182500 FastFactsFeature Presentation November 25, 2008

2. Today’s Topic • We’ll be taking a look at… • Support Staff • Pre-Retirement

3. Today’s Presenter • Michael McCormickBenefits Consultant/Trainer

4. Session Segments • Presentation • Michael will address support staff, pre-retirement. • During Michael’s presentation, your phone will be muted. • Q&A • After the presentation, we’ll hold a Q&A session. • We’ll open up the phone lines, and you’ll be able to ask questions. • Michael will answer as many of your questions as time allows.

5. Contact Us • If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.edu • You can also send us an instant message! • GoogleTalk – HopkinsFastFacts@gmail.com • AOL Instant Messenger – HopkinsFastFacts • MSN – FastFacts@jhu.edu

6. Survey • Survey • At the end of this FastFacts session, we’ll ask you to complete a short survey. • Your honest comments will help us to enhance and improve future FastFacts sessions.

7. Support Staff Pre-Retirement

8. Agenda • Eligibility for retirement • Benefits • 403(b) • Pensions Plan • Retirement Process

9. Benefits Service Center • JHU at Eastern • 1101 E. 33rd St. Suite D-100, Baltimore, MD 21218 • East Baltimore (by appointment) • Phone - 410-516-2000 • Fax - 443-997-5820 • Email - benefits@jhu.edu • Website - www.benefits.jhu.edu

10. Your Retirement Date • Normal Retirement Date = July 1st coincident with or following your 65th birthday. • You may retire before your normal retirement date, if age 55 with ten years service.

11. To Qualify for Retiree Status • Be at least age 55 at termination with 10 or more years of continuous full-time service with JHU immediately prior to termination. or • Completed 30 or more years of continuous full-time service with JHU immediately prior to termination, regardless of age. and • Leave the university in good standing. • If you are on LOA and do not return to full-time service, the LOA time does not count toward years of service.

12. Retiree Benefits • Medical • Pharmacy • Dental • Life Insurance • Personal Accident Insurance • Long Term Care

13. JHU Medical Insurance • Coverage ceasesat the end of the month in which you terminate. Retiree coverage then goes into effect. • The university subsidizes the retiree medical premium for qualified retirees. • Once enrolled, you will be billed quarterly by Benefits Billing Service.

14. JHU Subsidy Even at maximum subsidy, you will have a share of the cost.

15. Important to Note • Retirees at age 55 with 10+ years of service may continue JHU medical and dental by paying the full group rate. • Group Rate is not the annual premium for full-time faculty and staff.

16. To Continue Health Coverage… • Talk with a Benefits Consultant to discuss continuation of medical and dental coverage. • This will insure that all necessary applications are completed for enrollment.

17. Retiree Medical Policy Provisions At time of retirement… • If you currently participate in a JHU medical plan you may change to another plan. • Must occur within 30 days of your retirement. • If you do not participate in a JHU plan because you have coverage elsewhere (excluding Medicare), you will have ONE opportunity to enroll in a JHU medical plan. • Must occur within 30 days of retirement, or within 30 days of losing alternate coverage.

18. Retiree Medical Policy Provisions • You may elect INDIVIDUAL coverage if your spouse/same-sex domestic partner and/ or dependent children are covered elsewhere. • You will have one opportunity to enroll any of those listed above in the medical plan in which you are currently enrolled. • Must occur within 30 days of losing alternate coverage.

19. Retiree Medical Policy Provisions • If you marry or enter a same-sex domestic partnership you will have the opportunity to enroll your spouse, same-sex domestic partner and dependent children in the medical plan in which you are currently participating. • Must occur within 30 days of marriage or date you entered the same-sex domestic partnership.

20. Retiree Medical Policy Provisions • If you die, your covered spouse or same-sex domestic partner is eligible to remain on the group plan for his/her lifetime, and/or covered dependent children, until they no longer meet the plan eligibility requirements. • If your surviving spouse or same-sex domestic partner enters a new marriage/partnership, they cannot add the new spouse or same-sex domestic partner to the plan.

21. Retiree Medical Policy Provisions • Full coverage may be continued until you or your spouse or same-sex domestic partner become entitled to Medicare at age 65. • You may keep your spouse or same-sex domestic partner on JHU insurance which will become secondary to Medicare. • Full coverage can be continued for each of your dependent children until he/she no longer meets the eligibility requirements of the plan.

22. MEDCO Pharmacy Benefits • The retiree medical plans include a prescription drug benefit with MEDCO. • 3-tier structure • Generic • Formulary brand • Non-formulary brand • 90 day supply by mail only • 30 day retail • Pharmacy included in medical cost

23. Dental Insurance • Coverage ceasesat the end of the month in which you terminate. • If you qualify as a JHU retiree,you and your eligible dependents may continue coverage by paying the full group rate withno university contribution. • To continue,contact the Benefits Service Center for a JHU Retiree Dental Enrollment Form.

24. Retiree Dental Policy Provisions • If you die, your covered spouse or same-sex domestic partner is eligible to remain on the group plan for his/her lifetime and/or covered dependent children can remain on the group plan until they no longer meet the plan eligibility requirements. • If your spouse or same-sex domestic partner enters a new marriage or partnership he/she cannot add the new spouse or same-sex domestic partner to the plan.

25. Life Insurance • Life insurance for yourself and dependents ends the last day of the month in which you terminate your full-time employment. • You may convert all or part of this coverage to an individual conversion life insurance policy within 31 days. • Conversion information is available at the Benefits Service Center.

26. Personal Accident Insurance • Current coverage ceases at the end of the month in which you terminate employment. • You are eligible to convert this coverage to an individual policy within 31 days. • Available until age 80. • Maximum is $150,000, minimum is $50,000 • Contact the Benefits Service Center for the appropriate form.

27. Short-Term / Long-Term Disability • Current coverage ceases the date that your full-time employment terminates.

28. Long-Term Care Insurance • When you terminate employment, salary deductions will cease. • You will be billed directly by CNA.

29. Other Benefits • Flexible Spending Accounts • Money you have in a Flexible Spending Account must be used for expenses incurred prior to the date that your participation in the plan ends. • Claims must be filed by April 30th of the following year.

30. Other Benefits • Sick Days • Staff who retire at age 55 or older with at least 10 years continuous full-time university service, immediately prior to retirement, can convert accrued, unused sick leave in excess of 45 days to cash payment. (Maximum number of days converted to cash is 45.) • Vacation • Payment will be made for accrued, unused vacation days.

31. Tuition Assistance Benefits • Tuition Grant, Tuition Remission and Tuition Reimbursement • If you qualify as a JHU retiree you are eligible for both programs. Center for Training and Education: 443-997-6800

32. Credit Union Membership • Credit Union • “Once a member, always a member.” • Payroll deductions will cease. • Funds from outside sources, e.g. Social Security, may be deposited. • If you qualify as a JHU retiree, you may join the Credit Union after termination.

33. Your 403(b) • Balance/payment available when you terminate, retire, become disabled or die. (Federal law and other restrictions apply to 403(b) retirement money.)

34. Choices For Your Money • After termination your money can be left where it is and it will continue to be invested. (IRS requires a minimum distribution, starting April 1st of the calendar year following the calendar year in which you attain age 70 ½.) • After termination, your money can be “rolled over” to another tax-deferred plan without tax consequences.

35. Retirement Plan Payment Options • Annuity – a series of regular payments that will continue throughout your lifetime. • Periodic Payments– a series of payments over a specific period, available under certain circumstances only. • Lump Sum – a single payment available under most circumstances. • You may have one or more of these payment options. • Consult your financial planner.

36. Survivor Benefits • If you die before you start receiving benefits, your beneficiary may be able to choose whichever form of payment he/she prefers. • If you die after distributions have begun, the remainder of benefits will continue to be distributed to your beneficiary, in accordance with the payment method in effect at the time of death.

37. Annuity Options You may choose one or more of the following: • Life Annuity • Life Annuity with 10 year guarantee period • Life Annuity with 20 year guarantee period • Life Annuity with 100% benefit to spouse/contingent pensioner • Life Annuity with 50% benefit to spouse/contingent pensioner • Life Annuity with 66 2/3% benefit to survivor

38. Important to Note Any form of payment under these options must provide a 50% survivor annuity (at a minimum) . . . unless your spouse waives his/her legal right!

39. Initiating Plan Payments • Contact your investment companies! Note: In case of Participant’s death, personal representative and beneficiaries should contact the investment companies.

40. Support Staff Pension • When you know the last day that you will work, contact the BSC so that we can request your paperwork from Prudential. • Please allow 60 days. • If you need to contact Prudential, call: • 877-778-2100 • Do not select any options and hold on the line for a representative

41. Factors To Consider • Type of Retirement Plan Payment Selected • Age and health (you and your spouse) • Financial picture • How much do we need now? • What are our sources of retirement income? • How much will my dependents need after my death? • What will be the sources of my dependents’ income?

42. Making Decisions • Assistance in making decisions • Input from the following can be helpful: • Spouse • Financial Adviser • Attorney • Tax Adviser

43. When You’re Ready… • Contact the Benefits Service Center • Allow 60 days for necessary forms to be prepared. • Contact Social Security/Medicare • Allow 90 days for necessary forms to be prepared.

44. Conclusion • Know your status • Know your benefits needs • Consider professional assistance with financial issues • Benefits Service Center is here to help

45. Q&A • We’re going to open the phone lines now! • There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. • We’ll be answering questions in the order that we receive them. • We’ll also be answering the questions that were emailed to us during the presentation. • If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

46. Thank You! • Thank you for participating! • We would love to hear from you. • Are there certain topics that you would like us to cover in future FastFacts sessions? • Would you like to be a FastFacts presenter? • Please email us at: fastfacts@jhu.edu

47. Survey • Before we close, please take the time to complete a short survey. • Your feedback will help us as we plan future FastFacts sessions. • Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/ • Thanks again!