U-M Benefits Orientation Introduction to U-M Benefits Health Plans Prescription Drug Plan Dental Plan Vision Plan Flexible Spending Accounts Life Insurance Expanded Long-Term Disability Group Legal Services Plan Miscellaneous Benefits Retirement Savings Plan Questions and Answers

U-M Benefits Introduction to U-M Benefits Eligibility Benefits Enrollment Enrollment Change in Status Open Enrollment Paying for Your Benefits Your Rights and Responsibilities

U-M Benefits Eligibility Employee Benefit-eligible graduate students Spouse Other qualified adult Dependent children Review the eligibility information on the Benefits Eligibility section on the Benefits Office website: benefits.umich.edu/eligibility

U-M Benefits Benefits Enrollment Self Service > Benefits Benefits Office website Plan Information Eligibility Information Forms Vendor Contact Information

U-M Benefits Enrollment Four times when you may be able to enroll in benefits: When you are a new hire When you are newly eligible As a result of a qualifying change in status During Open Enrollment – If your job information is not on the system by October 17 th your elections will continue through December 31, 2015, except for Flexible Spending Accounts (FSA). You must enroll in an FSA for 2014 and 2015 to participate.

U-M Benefits Change in Status Legal Marital Status Number of dependents Employment Status Residence or work site change (out of network area) Domestic relations court order

U-M Benefits Paying for Your Benefits Convenient payroll deductions When Deductions are taken: Bi-weekly Health Plan, Dental, Vision, Legal, Flexible Spending Accounts (first two paychecks of each month; 24 equal installments) Retirement Savings Plan (all pay periods) Monthly (all)

U-M Benefits Paying for Your Benefits Always Pre-Tax Health PlanRetirement Savings Plan DentalFlexible Spending Accounts Vision Always After-Tax Dependent Life Optional Life Insurance Long-Term Disability Legal Services

U-M Benefits Your Rights and Responsibilities HIPAA COBRA Check your deductions Keep your address current. Make updates online at: wolverineaccess.umich.edu Watch for communications from the university

Health Plans Introduction Six Coverage Levels Range of Coverage Options Traditional Fee-for-Service Plan Health Maintenance Organization (HMO) Managed Care Plan Preferred Provider Organization (PPO) Plan

Value = Quality + Cost Cost information Benefits comparisons Make Your Choice No pre-existing clauses 30 days to choose 30 days to report a mid-year change in status Health Plans

Six Coverage Levels You only You + your Spouse or other qualified adult You + your Spouse or other qualified adult & Child or Children You + One Child You + Children No Coverage

Health Plans Traditional Fee-for-Service Plan Blue Cross Blue Shield Comprehensive Major Medical (CMM)

Health Plans Traditional Fee-for-Service Plan Coverage for diagnostic and treatment services Annual Deductible Co-insurance Annual Out-of-Pocket Limit

Health Plans Managed Care Plans and Health Maintenance Organization (HMO) U-M Premier Care (UMPC) GradCare – Benefit Eligible Students only Health Alliance Plan HMO (HAP)

Health Plans Managed Care Plans and Health Maintenance Organization (HMO) 100% coverage for eligible expenses Lower out-of-pocket costs for certain services No annual deductible or claim forms Co-pay may be required for some services

Health Plans Preferred Provider Organization (PPO) Blue Cross Blue Shield of Michigan Community Blue PPO (BCBSM PPO) Ability to choose any provider, in or out-of- network Lower out-of-pocket costs when you choose an in- network provider

Health Plans Which Plan Is Best For You? Use the information on the Benefits Office website at benefits.umich.edu/plans/medical/ to determine the best health plan for you and your family. Health Plan Comparison Chart Health Plan Navigator Summary of Benefits and Coverage (SBC) Charts Choose a plan that best meets your and your family’s needs

Health Plans Important Materials Provider Directory On the Benefits Office website at: benefits.umich.edu/plans/medical/providers.html Plan Books and Forms On the Benefits Office website at: benefits.umich.edu/books benefits.umich.edu/forms

Prescription Drug Plan All participants who enroll in university health plans are automatically enrolled in the U-M Prescription Drug plan, which is administered by MedImpact Healthcare Systems, Inc. You will receive a separate MedImpact prescription drug ID card.

Prescription Drug Plan Three-tier co-pay plan: Tier 1/generic, $10 Tier 2/preferred, $20 Tier 3/brand-name non-preferred, $45

Prescription Drug Plan Up to 90-day supply available by mail order through NoviXus mail service at a significant savings over retail pharmacies. More information is available on the Benefits Office website at: benefits.umich.edu/plans/drugs

Dental Plan Administered by Delta Dental of Michigan Option 1 Option 2 Option 3 Orthodontic Services Compare Options and Rates University Contribution

Dental Plan Option 1 Provides coverage in full for preventative services Covers orthodontia for dependents under age 19 Available at no cost to you and your eligible dependents

Dental Plan Option 2 Provides coverage in full for preventative services Covers orthodontia for dependents under age 19 Requires an employee contribution

Dental Plan Option 3 Provides coverage in full for preventative services Covers orthodontia for dependents under age 19 Highest benefits level Requires greatest employee contribution

Dental Plan Orthodontic Services Covers services for eligible dependent children up to age 19 Adult orthodontics are not covered If newly enrolling for first time, Delta will pro-rate amount payable for children already in an orthodontic treatment plan

Delta Dental Network You can choose any dentist you want You will receive the greatest savings if you see a Delta PPO provider You will still receive a savings if you see a Delta Premier provider Delta PPO and Premier participating dentists agree not to bill the patient more than Delta’s approved amount

Dental Plan Compare Options and Rates Rates and a comparison chart are available on the Benefits Office website at: benefits.umich.edu/plans/dental

Vision Plan Features Administered by Davis Vision One eye exam and pair of eyeglasses per year Standard, soft, daily-wear, disposable contacts in lieu of eyeglasses Kellogg Eye Center is a participating provider

Vision Plan No card for Vision Plan Provider list available on the Davis Vision website at: Click Members, enter 2032 in the Control Code field, and then click Submit.

Benefits Rates You can view benefits plan rates on Wolverine Access, or the Benefits Office website at benefits.umich.edu/neo/rates.html

Flexible Spending Accounts Administered by PayFlex/HealthHub If your job is on the system after October 17 th, you can enroll for the remainder of 2014 and for 2015 by completing separate 2014 FSA and 2015 FSA forms. Two account types Contribution Limits Advantages Savings example

Health Care FSA Use to set aside pre-tax dollars for out-of- pocket health care expenses for you and your eligible dependents Possible expenses can include Rx co-pays, contacts, doctor’s office co-pays, dental out- of-pocket expense, Lasik surgery

Dependent Care FSA Use to set aside pre-tax dollars for out-of-pocket dependent day care expenses for your eligible dependents. Possible expenses can include your child’s day care costs, after school latch-key programs, adult day care expenses, and summer day camps. See the Benefits Office website for list of eligible dependents and expenses: benefits.umich.edu/plans/reimburse/dc2.html

Flexible Spending Accounts Contribution Limits Health Care Account $2,500 annual maximum $120 annual minimum Dependent Care Account $5,000 annual maximum; may be limited based on several factors $120 annual minimum

Flexible Spending Accounts Advantages Serves as budgeting tool Provides immediate tax savings Helps you get more for your money

Flexible Spending Accounts * Potential tax savings shown for demonstration only. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information. Annual Savings Example*With an FSAWithout an FSA If your annual taxable income is:$28,000 And you deposit this annual amount into an FSA:$1,500$0 Your taxable income is now:$26,500$28,000 Subtract federal and Social Security taxes:$9,447$9,982 If you spend after-tax dollars for eligible expenses$0$1,500 Your real spendable income is:$17,053$16,518 Your annual tax savings with an FSA is:$535$0

Flexible Spending Accounts Keep In Mind Estimate your annual expenses carefully No mid-year contribution changes without a change in status “Use it or lose it” feature Through December 31 of the current calendar year FSA enrollments do not carry over from year to year A separate election must be made each year you wish to participate benefits.umich.edu/plans/reimburse

Life Insurance Administered by MetLife University Life $30,000 plan for eligible faculty and staff Covers you only and is paid by the university at no cost to you Automatically enrolled Must name beneficiaries

Life Insurance Optional Life Nine Coverage Options No coverage – unless you enroll $5,000 (minimal or no cost to you) $50,000 1 time salary to 6 times salary 30 days to enroll without a health statement Term Insurance Covers simple will preparation

Optional Life Insurance Plan Important Considerations No cash value or loan provision You need to enroll in Optional Life Coverage amounts and costs may increase when your salary increases (if tied to salary) or when you move to a higher age bracket

Optional Life Insurance Plan Designate Your Beneficiary Any person you wish May add or change at any time Make or change Life Insurance beneficiary designations on MetLife’s MyBenefits website:

Optional Life Insurance Plan How to Calculate Your Life Insurance Cost Your monthly cost depends on the coverage you select, your age, your smoking status, and your salary. If you choose coverage based on your salary, the cost will increase when your salary increases. Your cost will increase when you move into the next higher age bracket. See the Benefits Office website to calculate your rate: benefits.umich.edu/plans/life/orates.html

Dependent Life Insurance For Spouse/OQA/Child Legally married spouse or other qualified adult Children Employee is always the beneficiary

Dependent Life Insurance Coverage Levels Spouse or other qualified adult $10,000 (short form health statement) $25,000 (short form health statement) $50,000 (long form health statement) Children $2,000 per child $5,000 per child One rate covers all eligible children

Dependent Life Insurance Considerations Term Life Coverage You are always the only beneficiary Cost of Coverage After-tax deductions

Expanded Long-Term Disability Administered by U-M Coverage levels Employee cost

Expanded Long-Term Disability Coverage Pays up to 65% of pre-disability base salary Pays the cost to continue your other benefits, including Health Plan, Dental Plan, Life Insurance, and Retirement Savings Plan contributions Coordinates with other programs such as Social Security disability income

Expanded Long-Term Disability Cost You pay full cost for first two years After two years, the university pays the cost for coverage up to $59,000 salary You can elect to pay for coverage on salary above $59,000

Legal Services Plan Administered by Hyatt Legal Plans Range of Legal Services Important Considerations Cost

Legal Services Plan Range of Legal Services Wills and estate planning Real estate matters Family law matters Debt defense Defense of civil lawsuits Preparation of deeds, demand letters, promissory notes, mortgages and other legal documents

Legal Services Plan Important Considerations No divorces No job-related/business law If both you and your spouse are involved in a transaction, both of you must be enrolled in the plan to be covered No litigation against University of Michigan

Legal Services Plan Cost You pay the full cost through after-tax payroll deductions Monthly rates are available on the Benefits Office website at: benefits.umich.edu/plans/legal/costs.html

Miscellaneous Benefits Travel Accident Insurance MHealthy – U-M Health & Well-being Services mhealthy.umich.edu

Travel Accident Insurance Features The university pays the full cost Coverage begins on the first day of work and ends the last day of work at the university If you die while traveling on university business, the plan provides a minimum benefit of $50,000 or 10 times your annual salary, whichever is more, with a ceiling of $500,000. The plan also pays benefits for dismemberment and disability.

Retirement Savings Plans Basic Retirement Plan Supplemental Retirement Account (SRA) 457(b) Deferred Compensation Plan There is no university pension plan; the only way to have enough money for retirement is to save. benefits.umich.edu/plans/retire

Retirement Savings Plans Contributions and earnings are tax-deferred – You don’t pay taxes until you cash out the money SRA and 457(b) also offer an after-tax Roth – Contributions are taxed now but qualified withdrawals are tax-free Invest with TIAA-CREF and/or Fidelity Enroll or make changes anytime You keep the U-M contribution when you leave – Restrictions apply to cash withdrawals & rollovers Options when you leave U-M – Lifetime annuity – Cash withdrawal or rollover (restrictions apply)

Retirement Savings Plans Investing with TIAA-CREF and/or Fidelity The default investment is: Lifecycle Index fund if you choose TIAA-CREF Freedom Index Fund Class W if you choose Fidelity Lifecycle Index and Freedom Index funds automatically select the mix of stock, bond, and money market funds appropriate for a target retirement date (ex. 2020, 2025, 2030) of approximately age 65. Each fund periodically adjusts its holdings of stocks, bonds, and money market funds to become more conservative over time as its target retirement date approaches.

Retirement Savings Plans TIAA-CREF and Fidelity Fund Choices Contributions may be made to funds in either or both investment companies Contributions may be allocated among the offered funds A wide selection of funds are available

Retirement Savings Plans TIAA-CREF Telephone Counseling Center Local consulting appointments Fidelity Investments Telephone Counseling Center Local consulting appointments

Retirement Savings Plans Basic Retirement Plan Individuals must complete 12 months of eligible service in order to become eligible to receive the U-M contribution once enrolled. Defined Contribution Plan You contribute 5% U-M contributes 10% Changes Effective 1/1/15 Contributions will be provided on base salary but not on additional forms of pay such as overtime, differential pay and lump sum payments. The employee contribution for U-M Hospitals and Health Centers will be 4.5% with a 9% U-M matching contribution. These changes do not apply to employees subject to a collective bargaining agreement.

Retirement Savings Plans Basic Plan Waiting Period You may enroll at any time. Enrollment and university contributions do not begin automatically; you must enroll to receive plan benefits. If you enroll during the first 12 months of service there is no U-M contribution. Former eligible employees rehired within 12 months of termination do not need to complete the waiting period.

Retirement Savings Plans Contribution Rate Once Enrolled During first 12 months of service You contribute 5% U-M does not contribute After 12 months of eligible service You contribute 5% U-M contributes 10%

Retirement Savings Plans Enroll or change your contribution amount at any time online using Self Service > Benefits. – Go to

Retirement Savings Plans Investing with TIAA-CREF and Fidelity U-M will send an enrollment notice to your chosen company to create your investment account after your enrollment is complete. You may change your fund choice if you do not want a Lifecycle Index or Freedom Index fund. You will receive a welcome packet from your investment company about 30 days after your first deduction. Contact TIAA-CREF and/or Fidelity Investments to designate your beneficiary (it’s not the same as your life insurance).

Retirement Savings Plans Compulsory Participation Participation becomes compulsory when: 1.You are age 35 or older, and 2.You have completed 2 years of eligible service, and 3.You have a 100% appointment effort. If you meet all 3 criteria but are not enrolled: You will be enrolled in the Reduced Benefit Option (RBO) and U-M will contribute 5%; you do not contribute. You may elect to contribute 5%; U-M will contribute 10%

Retirement Savings Plans Basic Plan Withdrawals & Rollovers Current Employees - not available Former Employees Your contributions and earnings at any age. U-M contributions and earnings at age 55 or older. IRS penalty for withdrawals prior to 59½ may apply. Loans - not available

Retirement Savings Plans Supplemental Retirement Account (SRA) You contribute a tax-deferred, fixed-dollar amount. Save more for retirement and reduce your taxable income. An after-tax Roth option is available, fixed-dollar amount. There is no U-M contribution. Enroll or change your contribution amount at any time online using Self Service > Benefits. – Go to

Retirement Savings Plans SRA Features Cash withdrawals while employed – Hardship (as defined by IRS) – Disability (as defined by IRS) – At age 59½ Former employee may cash out at any age IRS penalty for withdrawals prior to 59½ may apply SRA loans (some restrictions apply) Annual contribution limit – $17,500 if under age 50 – $23,000 if age 50 and older – Limit includes the 5% you make to the Basic Plan – Does not reduce your limit to contribute to 457(b) plan

Retirement Savings Plans 457(b) Deferred Compensation Plan Another option to invest and reduce your taxable income. You contribute a tax-deferred, fixed-dollar amount. An after-tax Roth option is available, fixed-dollar amount. There is no U-M contribution. IRS penalty for withdrawals prior to 59½ does not apply. Enroll or change your contribution amount at any time online using Self Service > Benefits. – Go to

Retirement Savings Plans 457(b) Features Cash withdrawals While employed: at age 70½ Former employee: at any age Loans available (some restrictions apply) Annual contribution limit $17,500 if under age 50 $23,000 if age 50 and older 457(b) contributions do not reduce your SRA limit

Retirement Savings Plans Next Steps Review your pay stubs – Confirm deductions are being taken Review or update your beneficiary Review your quarterly statements Meet with TIAA-CREF and/or Fidelity – Review your fund choices – Rebalance portfolio if necessary – Review your retirement savings goals Save more with an SRA and/or 457(b)

How to Enroll in Benefits You will need a uniqname and UMICH password to log in to Wolverine Access. Go to:

Wolverine Access

Employee Self-Service

Wolverine Access Log In

Self Service > Benefits Enrollment

Wolverine Access “New Hire Event”

Other University Resources Faculty and Staff Assistance Program (FASAP) Counseling services on personal, emotional, family and workplace issues U-M Health System Employee Assistance Program Counseling services for U-M Health System employees

Other University Resources Mediation Services Confidential, voluntary mediation for faculty and staff (non- union) to resolve workplace disputes collaboratively WorkConnections Provides assistance and support to faculty and staff when they experience an illness or injury Coordinates access to university services through recovery and return to work Kids Kare at Home – emergency back-up child care service

Other University Resources Emergency Hardship Program For those facing temporary and severe hardships from unexpected emergencies Resource information and possible one-time funds for assistance in certain cases (for funds eligibility must be U-M employee for six months) To learn more or to donate, go to: emergencyhardship.umich.edu

Closing/Reminders 1.Review information on the website 2.Call the Shared Service Center Contact Center if you have questions 3.Check your benefits summary on self-service 4.Complete Flexible Spending Account form and return to the address on the form 5.Read all U-M communications 6.Maintain your current address on Wolverine Access

Congratulations!