Open Enrollment

1. NORTHERN ARIZONA PUBLIC EMPLOYEES BENEFIT TRUST May 2 – 31 2011 OpenEnrollment Plan Year July 1, 2011 – June 30, 2012

2. RETIREMENT Contribution Rates Effective JULY 1, 2011 Retirement System • Arizona State Retirement System • Effective July 1, 2011, employee will pay 57% of the contribution rate for both the pension plan and long term disability plan. Contribution rate still to be determined by ASRS. • Effective July 1, 2011, employer will contribute 47% of the contribution rate for both the pension plan and long term disability plan. Contribution rate still to be determined by ASRS. • Employees hired on or after July 1, 2011 who are regularly scheduled to work must wait at least 6 months before being eligible for and enrolled in the Arizona State Retirement System.

3. NAPEBT Medical Plans

4. NAPEBT – Trends National health premium trend data is from the Hay Benefits Reports (Hay Group) adjusted from a calendar year basis to correspond with NAPEBT's fiscal year. The 2010 trend data was not available from Hay, therefore, the 2009 trend increase percentage was used. For the 2006-2007 plan year the NAPEBT contribution rates are a blend of the one plan offered (7/1/06-12/31/06) and three plans offered (1/1/07-6/30/07) weighted by enrollment. For the 2008-2009 and 2009-2010 plan years the NAPEBT rates are a blend of all three plans weighted by enrollment.

5. NAPEBT – Large Medical Claims Paid

6. NAPEBT – Total Claims Paid

7. NAPEBT Medical Plans Blue Cross Blue Shield of Arizona Group # 19676 NAPEBT Rx Plans CVS Caremark Plan Year July 1, 2011 – June 30, 2012

8. NAPEBT Northern Arizona Public Employees Benefit Trust • Coconino County • City of Flagstaff • Coconino Community College • Flagstaff Unified School District • NAIPTA • Northern Arizona Intergovernmental Public Transit Authority • Housing Authority • Accommodation Schools

9. MEDICAL PLAN EFFECTIVE July 1, 2011

10. MEDICAL PLAN EFFECTIVE July 1, 2011

11. MEDICAL PLAN EFFECTIVE July 1, 2011 Employee Cost SharingApproved & Adopted by NAPEBT • Historically, NAPEBT Employers funded 100% of employee base level premium • NAPEBT Employers cannot continue to shoulder full cost • $20 cost to be passed on to employees to contribute July 2011 – June 2012 FUSD#1 is waiving cost share for this year only

12. MEDICAL PLAN EFFECTIVE July 1, 2011 Employee Premium Holiday FUSD#1 will pay for 1 month of dependent/buy-up premium. Employee will pay for 11 months of dependent/buy-up premium.

13. MEDICAL PLAN EFFECTIVE July 1, 2011

14. MEDICAL PLAN EFFECTIVE July 1, 2011 HDHP Employer Contribution • $27.68 per month ($332.16 per year) • Health Savings Account if Eligible • Who is NOT eligible for an HSA? • Individuals entitled to Medicare (eligible & enrolled) • Individuals covered under another non-HDHP • Individuals enrolled in AHCCCS or Medicaid or have used IHS • Flexible Spending Account if NOT Eligible for HSA

15. MEDICAL PLAN EFFECTIVE July 1, 2011 So what’s the bottom line?Change in Cost Per Month

16. MEDICAL PLAN EFFECTIVE July 1, 2011 CVS/Caremark New Rx Vendor • Two ID cards • Medical and Rx • Continue to use same pharmacies • Mail Order • Will need a new prescription • Fast Start program • 90 days at Retail for 2-1/2 times copay • Grandfathering of drugs – first 6 months • A small percentage of drugs will change tiers after 6 months (January 1, 2012) • Will receive a letter if your drug is changing • Register at Caremark.com • Check drug costs • Compare prices of Generic vs. Retail 16

17. MEDICAL PLAN EFFECTIVE July 1, 2011 FYI… Useful Information • Mayo Clinic in Arizona • Is an in-network Provider on all plans • Includes Mayo Clinic and Mayo Clinic Hospital Services • Identify as member of NAPEBT • Waivers of Medical Coverage • Othercoverage under a qualified group plan other than another NAPEBT employer • Must provide enrollment confirmation 17

18. MEDICAL PLAN EFFECTIVE July 1, 2011 FYI… Useful Information • Deductibles run on calendar year • January 1st – December 31st • Dual-spouse Deductible Coordination • Husband and wife employed by a NAPEBT employer. • Base and buy-up plans only. • One spouse must have family coverage. • Indicate on the Blue Cross enrollment form that your spouse works for NAPEBT and provide the spouse’s ID number. • Member ID Cards • Have available at every appointment! 18

19. MEDICAL PLAN EFFECTIVE July 1, 2011 Patient Protection and Affordable Care ActHealthcare Reform • Pre-existing Condition Restrictions • Removed for children younger than age 19 • Still applies for adults until 2014 • Preventative Services • No office visit co-pay for recommended screenings, general physicals and vaccinations • Eligible Dependents to Age 26 • Without regard to • Student Status • Marital Status • Financial Dependence • Only applies to legal child of employee • Does not extend to the spouse or child(ren) of the adult child • Applies ONLY to Medical plan and Flexible Spending Accounts 19

20. Wellness Incentive ProgramJuly 2012 – June 2013 • NAPEBT – Self-funded Plan • Rates driven by claims experience • Increase of large claims • Increased frequency of in-patient hospitalization • Improved Health of Employees • Long-term results • Return on Investment • Studies show a $4 return for every dollar spent on Wellness programs. • Lower costs for everyone

21. Wellness Incentive ProgramJuly 2012 – June 2013 • $20 Cost Share with Employee • $20 per month added to employee cost for Base and Buy-Up plans • $20 decrease to HSA / FSA contribution on HDHP. • Opportunity to Waive $20 • Employee participates in Wellness Program • Complete Biometric Testing • Fall 2011 Health Fair • Jan – May 2012 • Complete My Blueprint Health Assessment • www.azblue.com More information coming soon!

22. NAPEBT Dental Plans Delta Dental of Arizona Group # 1505-0001 Plan Year July 1, 2011 – June 30, 2012

23. DENTAL PLAN EFFECTIVE JULY 1, 2011

24. DENTAL PLAN EFFECTIVE JULY 1, 2011

25. DENTAL PLAN EFFECTIVE JULY 1, 2011 So what’s the bottom line?Change in Cost Per Month

26. NAPEBT Vision Plans VSP Group # 12239817 Core #0003 Buy Up #0004 Plan Year July 1, 2011 – June 30, 2012

27. VISION PLAN EFFECTIVE JULY 1, 2011

28. VISION PLAN EFFECTIVE JULY 1, 2011 So what’s the bottom line?There is no change to employee payroll deductions for vision coverage for 2011-2012.

29. NAPEBT Life Insurance Plans Minnesota Life Policy # 33585 Division 5 Plan Year July 1, 2011 – June 30, 2012

30. LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011 • Basic Term Life & Accidental Death & Dismemberment Insurance • Based on position and salary • Provided by FUSD at no cost to the employee • May convert to an individual policy upon separation of employment

31. LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011 • Voluntary Term Life Insurance • Employee may increase elected coverage amount by $10,000 at Open Enrollment without underwriting (up to the Guaranteed Issue limit of $100,000) • $100,000 guaranteed issue at original enrollment • Maximum coverage amount = 5x annual salary up to $500,000 • Insure spouse up to half of employee’s voluntary coverage election • Insure children @ $10,000

32. LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011 • Voluntary Term Life Insurance • Rate Change • % of Increase Varied by Age Bracket • Child Rate – No Change

33. Flexible Spending Accounts ASI Flex Plan Year July 1, 2011 – June 30, 2012

34. FSA PLAN EFFECTIVE JULY 1, 2011 Flexible Spending Accounts • Reduce Tax Liability • Health Care FSA (HCFSA) – allows you to set aside pre-tax dollars to pay for eligible health care expenses not covered by insurance or reimbursed from any other source. • Limited Purpose Health Care FSA (use with a High Deductible Health Plan (HDHP) and Health Savings Account (HSA) • (dental, vision and preventive care expenses only) • General Purpose Health Care FSA (qualified health care expenses) • Dependent Care FSA (DCFSA) – allows you to set aside pre-tax dollars to pay for eligible day care expenses for children up to the age of 13, disabled children over age 13, and elder care.

35. FSA PLAN EFFECTIVE JULY 1, 2011 • FSA – Medical • Unreimbursed Medical, Prescription, Dental, & Vision expenses • Up to $3,000 Per Year • Debit Card • Reimbursement by Check or Direct Deposit • Full Amount Elected Available Immediately • MUST RE-ENROLL EACH YEAR! • Use or Lose – Be Conservative!

36. FSA PLAN EFFECTIVE JULY 1, 2011 • Ineligible Health Care Expenses • Cosmetic Expenses • Rogaine, bleaching of teeth, cosmetic surgery (other than reconstructive surgery following a mastectomy for cancer) • Dietary Supplements such as Vitamins • Personal Use Items • Health Club Memberships • Tanning Salon • Over-the-Counter Medications Unless Prescribed by a Doctor

37. FSA PLAN EFFECTIVE JULY 1, 2011 • FSA – Dependent Care • Up to $5,000 per year • Reimbursement by Check or Direct Deposit • Funds Available as Contributed • MUST RE-ENROLL EACH YEAR! • Use or Lose – Be Conservative!

38. FSA PLAN EFFECTIVE JULY 1, 2011 • Ineligible Dependent Care Expenses • School Expenses for Children in Kindergarten or Older • Overnight Camping • Expenses for a Child Age 13 or older (unless disabled) • Expenses for Nighttime Babysitting • Daycare Expenses During an Extended Leave of Absence • When a Dependent is Providing Child Care • Expenses Paid to Your Child Under the Age of 19 • (even if child is not your dependent)

39. Health Savings Accounts Health Equity Plan Year July 1, 2011 – June 30, 2012

40. HSA PLAN EFFECTIVE JULY 1, 2010 Health Savings Accounts • Only available with election of HDHP • Reduce Tax Liability • Use like flexible spending account for Medical, Prescription, Dental and Vision • Unspent money rolls over year after year; NOT use it or lose it • Take it with you when you leave or retire • Pay for COBRA, Medicare or Long Term Care Premiums • Never pay taxes as long as used for qualified expenses

41. HSA PLAN EFFECTIVE JULY 1, 2010 FYI… Useful Information • Health Equity and Blue Cross Blue Shield of Arizona have created an integrated Health Savings Account (HSA) solution. • Your claims information will now be available with your HSA account information for easier management of claims payment and review. • When you login to the Blue Cross web site (www.blueaz.com) you can click on a link to take you to the Health Equity portal where you can view your claims, see how much you owe, and process payment (pay a provider, or yourself) – all from the same website.

42. Open Enrollment 2011 Questions? ? ? ?