1. Employee Benefits 2011: Back to Basics Achieve Financial Group, LLC (Press the Space Bar to advance each slide. This presentation does not feature a voice component.)

2. One Simple Question What are the top priorities for my limited insurance dollars? 2 For specific questions, please contact Achieve Financial.

3. What are the top priorities for my limited insurance dollars? No one has unlimited money to spend on insurance. While insurance still protects against future risk, it is possible to be over-insured. How do I know if I’m doing the best for my family? 3 For specific questions, please contact Achieve Financial.

4. What are the top priorities for my limited insurance dollars? First, there is not just one right answer for everyone. That being said, most financial analysts agree on three top priorities: – Medical Insurance – Life Insurance – Disability Insurance 4 For specific questions, please contact Achieve Financial.

5. MEDICAL INSURANCE Priority #1 of 3: 5 For specific questions, please contact Achieve Financial.

6. MEDICAL INSURANCE Your district offers TRS Active Care. Most employees spend less than 30 minutes per year deciding on their employee benefits package. If you want to lower costs, consider your options, and take a serious look at the different plans this year. If you are generally healthy, and if you have funds to pay for a higher deductible, you could save LOTS of money in premiums by going to a higher deductible medical plan, like Active Care 1 or Active Care 1HD. Investigate at: http://www.trs.state.tx.us/active.js p?submenu=trs_activecare&page_i d=/TRS_activecare/plans http://www.trs.state.tx.us/active.js p?submenu=trs_activecare&page_i d=/TRS_activecare/plans High medical costs combined with the possibility of developing a serious medical condition make medical insurance one of the best ways you can protect yourself and your family against financial devastation in the event of a medical catastrophe. 6 For specific questions, please contact Achieve Financial.

7. Employee Only These numbers show how much you will spend in 2011-12 on medical insurance/services if… Best Case Scenario Active Care 1: $1,200 Active Care 1HD: $744 Active Care 2: $2,508 Active Care 3: $4,308 Above is monthly premium x 12 months = annual premium. This is all you would pay for the year if you just have covered preventive procedures. Possible Worst Case Scenario Active Care 1: $4,400 Active Care 1HD: $6,144 Active Care 2: $5358 + copays Active Care 3: $7,883 + copays Above is the annual premium + the Out of Pocket Max. Copays vary by how often you see providers. Exceptions will occur. Do your homework! For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance. 7

8. Employee + Spouse These numbers show how much you will spend in 2011-12 on medical insurance/services if… Best Case Scenario Active Care 1: $6,192 Active Care 1HD: $5,736 Active Care 2: $9,144 Active Care 3: $13,236 Above is monthly premium x 12 months = annual premium. This is all you would pay for the year if you just have covered preventive procedures. Possible Worst Case Scenario Active Care 1: $12,592 Active Care 1HD: $13,136 Active Care 2: $14,844 + copays Active Care 3: $20,386 + copays Above is the annual premium + the Out of Pocket Max. Copays vary by how often you see providers. Exceptions will occur. Do your homework! For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance. 8

9. Employee + 2 or more children These numbers show how much you will spend in 2011-12 on medical insurance/services if… Best Case Scenario Active Care 1: $3,528 Active Care 1HD: $2,676 Active Care 2: $5,580 Active Care 3: $8,472 Above is monthly premium x 12 months = annual premium. This is all you would pay for the year if you just have covered preventive procedures. Possible Worst Case Scenario Active Care 1: $12,528 Active Care 1HD: $10,076 Active Care 2: $13,830 + $100 per person drug deductible + copays Active Care 3: $9972 per family plus $3075 per person plus copays Above is the annual premium + the Out of Pocket Max. Copays vary by how often you see providers. Exceptions will occur. Do your homework! For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance. 9

10. Employee + Family These numbers show how much you will spend in 2011-12 on medical insurance/services if… Best Case Scenario Active Care 1: $7,104 Active Care 1HD: $8,340 Active Care 2: $10,320 Active Care 3: $14,832 Above is monthly premium x 12 months = annual premium. This is all you would pay for the year if you just have covered preventive procedures. Possible Worst Case Scenario Active Care 1: $16,104 Active Care 1HD: $15,740 Active Care 2: $18,570 + $100 per person drug deductible + copays Active Care 3: $16,332 per family + $3075 per person + copays Above is the annual premium + the Out of Pocket Max. Copays vary by how often you see providers. Exceptions will occur. Do your homework! For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance. 10

11. LIFE INSURANCE Priority #2 of 3 11 For specific questions, please contact Achieve Financial.

12. LIFE INSURANCE Your district offers Group Life and Individual Life Purpose: to protect your survivors from financial loss in the event of your death How much? DIME: – Debt – Income times 5 – Mortgage – Education When considering how much life insurance you need, this easy acronym “DIME” is helpful. Debt means consider those large debts you pay. Would your spouse be able to still make those payments? Leaving enough money for him/her to pay off debt and start fresh is helpful. Income x5 means you are giving your survivors 5 years to adjust to not receiving your salary, give or take any big final expenses, like medical bills, they may have to pay. Mortgage means you leave enough money to pay off the house Education means allowing money to pay for higher education for yourself, your spouse, and your children. 12 For specific questions, please contact Achieve Financial.

13. TWO TYPES: GROUP LIFE AND INDIVIDUAL LIFE Group Life: – Low group rates – Age banded (every 5 years) – Intended for your working years – Not intended to carry you into old age! – Portable (can take with you at same group rates if you leave employment) – Convertible (can convert to individual whole life if you leave employment) – Name: American United Life - Group Term Insurance Other notable features of your Group Life Policy include: - Accelerated Life Benefit (allows you to receive 25% or 50% of your benefit if diagnosed with a terminal condition while covered under this policy.) - Accidental Death and Dismemberment Benefit at no additional cost (allows you to receive double your benefit if you die in an accident, and triple your benefit if you are wearing seat belt in accident) - Guaranteed Increase in Benefit each year (allows you, if eligible, to increase your coverage a limited amount at each annual enrollment with no health questions – just click and you’re done!) 13 For specific questions, please contact Achieve Financial.

14. TWO TYPES: GROUP LIFE AND INDIVIDUAL LIFE Individual Life: – Term Life to Age 100 – Rates locked in at your age when you buy it – Rates guaranteed to never increase – Benefit expected to never decrease and has never been decreased on any policyholder – Critical Illness – 30% lump sum payment – Available for family also, including grandchildren at very low cost –rates locked in for their life to age 100 – Name: 5Star Life - Family Protection Plan w/ Critical Illness Other notable features of your Individual Life Policy include: - WHO? coverage available for employee, spouse and children through age 23 - HOW MUCH? child rates are $4.33/month for $10,000 or $8.67/month for $20,000; adult rates vary by age – see brochure - KEEP? all policies you buy through this carrier, 5Star Life, are individual policies that automatically stay with you even if you leave employment, as long as you keep paying the premiums. - CRITICAL ILLNESS? The policy covers critical illnesses like life-threatening cancer, heart attack, stroke, cardiac bypass or heart transplant surgery, or a terminal condition – you receive a lump-sum check for 30% of your benefit, which reduces your death benefit to 70% but gives you cash to help pay expenses. 14 For specific questions, please contact Achieve Financial.

15. DISABILITY INSURANCE Priority #3 of 3: 15 For specific questions, please contact Achieve Financial.

16. DISABILITY INSURANCE Your district offers Long Term Disability (LTD) Insurance Purpose: to make sure you still have a check coming in if the doctor says you can’t work due to sickness or accident – salary protection The more you “need” your paycheck for vital expenses, the more you need LTD insurance, and vice versa. If your salary is just for “fun” money, you don’t need LTD. Find a balance between how much it costs per month and how much benefit you would need each month just to get by – this is the “best bang for the buck” zone. Why is it called “Long Term Disability”? Do we also have “Short Term Disability”? - “Long Term” means it will keep paying you a check each month for a long time if something serious happens to you. (See brochure for details) - The Long Term Disability Insurance offered by your district also serves the same purpose as Short Term Disability insurance would serve: you can choose shorter elimination periods so that benefits kick in right away (like STD), or you can choose longer elimination periods to lower your monthly cost for this insurance. - So no, we don’t need to offer STD! - Most people choose the 30-day elimination period because it costs less but offers FIRST DAY HOSPITAL benefits if you are admitted overnight to a hospital. 16 For specific questions, please contact Achieve Financial.

17. What about the other kinds of insurance? Medical, Life, and Disability insurance make up your core insurance products because what they protect against – catastrophic loss – has a bigger chance to devastate most families. Other benefits like cancer, dental, and vision insurance, are discretionary. They do benefit some people in specific situations, but not everyone needs them. Tip: If you are needing to cut expenses due to serious financial issues, discontinue the discretionary products first over the core products, but… 17 For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance.

18. Help for your Bottom Line Even though you may think about discontinuing one or more discretionary products, you need to know how the Cafeteria Plan helps you. EXAMPLE: on the next 3 slides you will see an example employee who saves over $2,700 per year just by choosing the free cafeteria plan service. Pre-taxing your eligible premiums helps you bring home more money! For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance. 18

19. How the Cafeteria Plan Helps Sample Based on salary of $40,000 with M-2 withholding. Monthly. WITH Pre-Tax Deductions Taxes Withheld TOTAL TAXES WITHHELD (includes FW, Medicare, SS) $347.19 POST TAX MONTHLY DEDUCTIONS: Voluntary LTD$61.88 Employee Life$33.00 Children Life$3.20 0.00 TOTAL POST TAX DEDUC:$98.08 Without Pre-Tax Deductions Taxes Withheld TOTAL TAXES WITHHELD (includes FW, Medicare, SS) $680.45 POST TAX MONTHLY DEDUCTIONS: TRS Active Care E/F$860.00 PPO Dental E/F$99.96 Vision E/F$25.85 Voluntary LTD$61.88 Employee Life$33.00 Children Life$3.20 TOTAL POST TAX DEDUC:$1083.89 For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance.

20. How the Cafeteria Plan Helps Sample Based on salary of $40,000 with M-2 withholding. Monthly. WITH Pre-Tax Deductions Employee Gross Pay$3,333.33 Pre-Tax Monthly Deductions: TRS Active Care 2 E/F$860.00 PPO Dental E/F$99.96 Vision E/f$25.85 Health Care FSA$100.00 Flex Card Fees$1.50 PRE TAX TOTAL DEDUC:$1087.31 Total Taxable Income$2,246.02 Without Pre-Tax Deductions Employee Gross Pay$3,333.33 Pre-Tax Monthly Deductions: 0.00 Total Taxable Income$3,333.33 For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance.

21. How the Cafeteria Plan Helps Sample Based on salary of $40,000 with M-2 withholding. Monthly. WITH Pre-Tax Deductions Referring to the details on the two previous slides, this employee receives a net pay of $1800.75. Just by pre-taxing all possible deductions… This person brings home $2,781.12 more per year!! That’s more than a month’s paycheck! Without Pre-Tax Deductions Referring to the details on the two previous slides, this employee receives a net pay of $1,568.99. By not sheltering premiums, this employee is giving away $2,781.12 per year to the U.S. Government that he/she could have brought home instead. For specific questions on Life or Disability, please contact Achieve Financial. Achieve is not authorized to advise you on your medical insurance.

22. Achieve Financial is here to help You can call, click, or come by our office; we are here to help you. Thinking of retiring? Set up an appointment with Greg to discuss it. 903-596-8211 www.achievefinancialgroup. com/harmony www.achievefinancialgroup. com/harmony lisa@achievefinancial.com greg@achievefinancial.com 22 For specific questions, please contact Achieve Financial.