Educational Conference – April 23rd, 2014 WSCFF-Sponsored Insurance Programs Educational Conference – April 23rd, 2014 Greg DiMartino | John Wallen | Marcus Morrell | Karni Adamson | Becky Wallen 1501 Fourth Avenue | Suite 2400 | Seattle, WA 98101 Tel: (206)623-2430 or (800)488-8277| Fax: (206)682-8027 Proprietary & Confidential

WSCFF & DiMartino Associates Benefits Consulting firm formed in 1990 by Greg DiMartino In partnership with WSCFF since 1999 Provides consulting and member service for multiple WSCFF-Sponsored Insurance Programs

Overview of WSCFF Programs WSCFF Life & Disability Plans WSCFF MERP Northwest Fire Fighters Trust (NWFFT) Regence Medical Moda Dental (Delta Dental) NWFFT Medicare Pool NWFFT VEBA

WSCFF Life & Disability Plans Program launched by WSCFF in 1978 Western Life / Fortis: 1978-2002 The Standard: 2002-2013 Cigna: 2014- Numerous plan amendments have been made to enhance benefits and to make the plan unique to fire fighter needs Pre-Disability Earnings Sick Leave Buy Back Waiver of Premium LEOFF Integration Claims utilization has spiked over the last 2-3 years Q3 2012 through 2013: $4.2M in Premium / $3.3M in Paid Claims / $1.2M IBNR Standard was proposing a 45% overall increase

WSCFF Life & Disability Plans Effective 1/1/2014, all WSCFF Life & Disability plans moved from The Standard to Cigna Current contracts were taken over “as-is”, with the exception of a handful of very minor contractual changes Cigna’s proposal came with a 5% increase to the package plans for both STD and LTD rates, with a rate pass for the Life/AD&D and Voluntary Life – guaranteed until 1/1/2016 WSCFF is subsidizing more than half of the proposed increase so the direct impact to the member is only 2% for each coverage line Plan 1 premiums increased about $0.77 - $1.40 pepm Plan 2 premiums increased about $0.77 - $1.40 pepm Custom plans may have seen a different increase depending on claims experience Increases do not take into account any salary changes

WSCFF Life & Disability Plans

WSCFF Voluntary Life Voluntary Life insurance is available to any Local with a WSCFF Life & Disability plan Members can purchase up to $500,000 of Life on themselves and up to $250,000 on their spouses (up to $5,000 on dependent children) Guarantee Issue available during initial open enrollment and to new hires - $100,000 with no medical questions ($20,000 for spouse) Rates are age-banded in 5 year increments

WSCFF Life & Disability Plans All disabilities beginning 12/31/13 and prior will remain with Standard. Only disabilities occurring on and after 1/1/14 will be adjudicated by CIGNA All coverage was automatically transferred to Cigna, including Voluntary Life – no new enrollment forms were needed Your current beneficiary designations are still valid – don’t forget to update them as needed New policy certificates will be sent to the Local contact as soon as they are available Added Benefits: EAP, Will Prep & Estate Planning (online tool), Identity Theft and Health & Wellness discounts @ www.cigna.com/rewards (password: savings)

WSCFF Life & Disability Plans Claim Filing – Cigna takes claims directly over the phone! Contact DiMartino Associates for information on how to file. TIP: Always file early! Administration of Program – DiMartino Associates is still your liaison with the insurance carrier Claims: Becky Wallen or Karni Adamson Billing/Eligibility: Shannon Brauner or Laura Ziebell We are here to help in educating your membership and providing member service!

WSCFF MERP Available to 7th District IAFF Locals Reimburses you – for your lifetime – for: Premiums for medical, dental, vision, long term care coverage for you and your family (spouse/domestic partner and IRS dependent children) Other medical, dental and vision expenses (that aren’t covered by insurance) for prevention, diagnosis, and/or treatment of a medical situation for you and your dependents. (Defined by IRC 213(d).)

WSCFF MERP Began in 1999 with 1 Local Now: 122 Participating Locals, > 6,000 members 108 in Washington 11 in Idaho 2 in Alaska 1 in Montana Fund is over $50 Million, growing by approximately $650,000 each month 250+ retirees currently accessing benefits

WSCFF MERP WSCFF Benefit Trust Board of Trustees The Board of Trustees is made up of 9 fire fighters all from separate participating locals on staggered terms 6 are elected at WSCFF Annual Convention Brian Hurley- Tumwater Jeff Wainwright – Spokane Co. FD #8 Rich Knight – SeaTac Fire Fighters Craig Soucy – Renton Fire Fighters Kenny Stuart – Seattle Fire Fighters Brian Murphy – Anchorage Fire Fighters 3 are appointed by the WSCFF Kelly Fox Greg Markley Ricky Walsh

WSCFF MERP Monthly Contribution: Minimum of $75/month; Local can increase over time in increments of $25 24 Locals have increased their monthly contribution amount No maximum monthly contribution; highest is currently $300/month 1 Active Service Unit (ASU) = $25 ASU’s are accumulated throughout your career and multiplied by Unit Multiplier to determine your lifetime monthly benefit Unit Multiplier (UM) = 0.39 Actuarial Review occurs every 3 or so years

WSCFF MERP Monthly Contribution: Minimum of $75/month; Local can increase over time in increments of $25 24 Locals have increased their monthly contribution amount No maximum monthly contribution; highest is currently $300/month 1 Active Service Unit (ASU) = $25 ASU’s are accumulated throughout your career and multiplied by Unit Multiplier to determine your lifetime monthly benefit Unit Multiplier (UM) = 0.39 Actuarial Review occurs every 3 or so years

WSCFF MERP Fire Fighter #1 - $75 contribution for 10 years $75 = 3 ASU per month X 12 X 10 years = 360 ASU 360 X .39 = $140.40 monthly benefit Fire Fighter #2 - $100 contribution for 20 years $100 = 4 ASU per month X 12 X 20 years = 960 ASU 960 X .39 = $374.40 monthly benefit Fire Fighter #3 - $75 contribution for 7 years; Local votes to increase contribution to $100 and FF contributes this for 18 years; 25 total years of contributions 3 X 12 X 7 years = 252 ASU 4 X 12 X 18 years = 864 ASU 252 + 864 = 1,116 total ASU X .39 = $435.24 monthly benefit

The Concept Labor-sponsored Trusts Available to any IAFF Participating Local Recognized, Reputable, and Reliable Carriers Highly Competitive Plans – Rates & Benefits Team of Advisors Consultant: DiMartino Associates Administrator: Benefit Solutions, Inc. Legal Counsel: Mckenzie Rothwell Barlow & Coughran

Sponsored by WSCFF Governance through board of 9 fire fighter Trustees Currently offering 10 fully-insured medical plans, underwritten by Regence Blue Shield 7 fully-insured dental plans, underwritten by Moda Health (a Delta Dental plan) Retiree Medical & Dental plans available – must be attached to a participating Local

Medical Plans -Deductible and Out of Pocket Maximum are 2x for family

Dental Plans

Medicare Pool Medicare plans are available to any IAFF retired fire fighter, regardless of Active group participation Also available to Eligible Member’s Medicare-entitled spouses Direct bill from NWFFT via DRS deduction, ACH, etc. Menu of MedAdvantage, Medigap and standalone Prescription Drug plans Must be Medicare-eligible and enrolled in Part A and Part B Contact DiMartino Associates for more information!

VEBA *New product in 2014* – NWFFT is partnering with BPAS to bring you the only VEBA on the market with debit card technology! Each employee gets 2 Benny Cards What makes a VEBA different than an HRA? Investment earnings via target or self-directed funds Starting at $6.50 pepm + 35bp per year (vs. competing VEBA at $1.50 pepm and 125 bps) Nightly trades with the NSCC (allows 48 hour claims turnaround) Mobile applications for iPhone and Droid Plan consulting services included Best of all – no set up fees when you sign up through NWFFT!

Federal & State Law Compliance Consulting Services Strategic Consulting Long Term Planning with Local Executive Boards Planning, Implementation, and Monitoring of Population Health Management(PHM) Overall Benefits Package Review Federal & State Law Compliance Initial Setup and Audit of Plan Documents Assist in Filing Reports and Disclosures Bi-Monthly Bulletins and Periodic Educational Seminars Operational Plan Performance Review Interactive Plan Modeling Communications Open Enrollment Materials Educational Sessions for Members & Leadership Benefit Fairs

Administrative Services Consolidated Billing Member Service – Dedicated NWFFT Team Online Eligibility / Management – Coming Soon! HRA/HSA/FSA Administration - $5.50 pepm, no annual or set-up costs!

Current Trust Participants Effective 1/1/2013 WSCFF Staff Woodinville Fire & Rescue Grays Harbor Fire Fighters King County #45 – Duvall Fairbanks Fire Fighters Spokane County FD #9 Effective 3/1/2013 North County RFA Bothell Fire Fighters Effective 9/1/2013 Pullman Fire Fighters Effective 1/1/2014 Local 726 H&W Trust CPFR Fire Fighters & Mechanics SPFR – Fire + Admin Staff Central Pierce F&R – Admin Staff Valley Regional Fire Authority Stevens County FD #1 Effective 4/1/2014 Tumwater Fire Fighters Skamania County EMS Effective 5/1/2014 Lake Stevens Fire

Questions? 1501 Fourth Avenue | Suite 2400 | Seattle, WA 98101 Tel: (206)623-2430 | Fax: (206)682-8027 Proprietary & Confidential