1. PSEA Group Disability Plan July 21, 2014 Presenters: Joe Walsh & Bob Crook, Hillendale Associates

2. What is Disability Income Insurance? Disability Insurance is paycheck insurance 2

3. 3 1 in 47 chance you will use your Auto Insurance 1 in 88 chance you will use your Homeowner’s Insurance 3 in 10 chance you will need Disability Insurance before you retire

4. 4 Your most important asset is not your possessions… it’s your ability to make a living.

5. 5 What about… Social Security? Unemployment Compensation? Health Insurance? Worker’s Comp Insurance? Sick leave? Sick leave banks? District paid disability plans? PSERS? Sabbaticals?

6. Only 30% of Social Security Disability Insurance applicants were approved * 6 *Social Security Administration, www.socialsecurity-disability.org/blog/tips-about-social-security-disability-benefits, 2011

7. Unemployment Compensation is for those who can work 7

8. Health Insurance covers medical services and prescriptions… 8 Not income If you are no longer working, your district may stop paying your medical insurance premiums

9. 9 Worker’s Comp is for a disability resulting from your job Most disabilities are not job related * *Council for Disability Awareness, disabilitycanhappen.org; Social Security Fact Sheet, March 18, 2011

10. 10 Accumulated sick leave pay (10 paid days per year) No help for young members Young members use up all sick days on pregnancy or taking care of ill children

11. 11 Sick leave banks Limited number of days Likely not a full day’s pay Subject to committee approval Pregnancy is usually not covered

12. 12 District-paid disability plans Out of date Salary caps too low Lifetime max too low

13. 13 PSERS Hired before July 2011 – must work 5 years before covered Hired after July 2011 – must work 10 years before covered Geared toward longer-term

14. 14 Sabbatical Must work 7 years to be eligible Board approved. Not doctor approved.

15. 15 PSEA members need a disability plan to protect them Mortgage Medical bills & insurance Debt Childcare Auto payment More

16. Introducing the new PSEA Group Disability Plan 16 slc.sltd.8-12

17. Causes of disability Heart disease Cancer Arthritis Pregnancy Off-the-job accident 17 slc.sltd.8-12

18. Short-Term Claims: Actual employer with 3599 employees 18

19. Long-Term Claims: Actual employer with 3599 employees 19

20. What are your members chances of becoming disabled? 20 Social Security Administration, Fact Sheet Jan 31, 2007

21. More than one in five can expect to be disabled for more than five years * 21 * Commissioner's Disability Insurance Tables A and C, assuming equal weights by gender and occupation class

22. 22 slc.sltd.8-12 PSEA Members have GAPS in disability coverage. PSEA members are gambling with their paychecks… With odds of one in five!

23. Neighboring states pay for teacher disability coverage 23 O nly 35% covered

24. 24 The PSEA Group Disability Plan Covers pregnancy Covers mental/emotional illness Choice of 6 different plans customized to meet the needs of PSEA members No medical questions if enrolled during initial offering

25. 25 The PSEA Group Disability Plan Voluntary, member-paid, group rates Statewide plan: Rates pooled with other PA districts Flat rates – do not increase with age

26. MPEB – Medical Premium Expense Benefit Will pay up to $1,500/month for medical insurance premiums Paid in addition to the disability benefits 26

27. Compare plan options 27

28. 28 Quarterly meeting presentations Central, Central-Western, Northwestern, Southwestern, Midwestern, Western and ESP regions Bob Crook Office: 866-864-9700 Mobile: 814-943-9099 hillendaleassociates@atlanticbb.net Eastern, Mideastern, Northeastern, Southeastern, Southern regions Joe Walsh Office: 610-399-3635 Mobile: 610-416-3944 walsh49@verizon.net

29. 29 In the past hour, almost 3,000 Americans became disabled. 69% did not have disability insurance. Half of them had to foreclose on their homes.