Benefits Orientation Benefits Design & Management

1. Arizona State University Benefits Orientation Benefits Design & Management

2. WHO IS ELIGIBLE? Employee: • Working at least 20 hours per week • For an anticipated minimum of six months

3. WHO IS ELIGIBLE? • Your legal spouse • Domestic partner – see criteria on HR Benefits website • Children: unmarried, under age 19 • Children: age 19 thru 24, unmarried and a full-time student • Undergraduate student = 12 credit hours • Graduate student = 9 credit hours • Vocational school = full-time classification • “Older Child” – see qualifying criteria on HR Benefits website • Not full-time student • Covered under State of AZ Plan – age 18 • Unmarried resides within AZ

4. MANDATORYDOCUMENTATION NEEDED • Spouse with different last name: Copy of marriage license • Child with different last name: Copy of birth certificate or court order • Stepchild: Copy of birth certificate & marriage license • Disabled person: Copy of Social Security Letter of Determination or letter from physician

5. MANDATORY DOCUMENTATION NEEDED DOMESTIC PARTNER • Submit Qualified Domestic Partner Affidavit • Submit Declaration of Tax Status • Submit at least three documents supporting (See HR website for examples of supporting documentation) • Domestic Partner Child • Meets the same criteria as child or older child

6. MANDATORY DOCUMENTATION NEEDED • OLDER CHILD • Older child covered by a health insurance plan made available by the state during the year the individual was 18 • Resides in Arizona • Younger than 25 years of age • Is unmarried

7. NEW HIRE EFFECTIVE DATE 1st of the Month following your date of hire and receipt of completed enrollment form Transfers & rehires within 31 days have no loss of coverage

8. ENROLLMENT DEADLINE You must enroll within 31 days of your eligibility date (hire date)

9. HOW TO ENROLL • Complete Paper – Benefit Enrollment Form • http://www.asu.edu/hr/benefits/enrollmentforms.html

10. PLAN YEAR October 1 through September 30 Elections are in effect for the entire plan year unless you experiencea Qualifying Life Event (QLE)

11. QUALIFYING LIFE EVENT (QLE)COMMON EXAMPLES • Marital status changes • Dependent status changes • Spouse’s employment status changes Benefits Declaration For Change form must be submitted to HR within 31 days of the QLE (Documentation must be provided)

12. MEDICAL NETWORKS

13. 2008/2009 RATES

14. OUT-OF-AREA COVERAGE • All employees have Emergency and Urgent Care services anywhere in the world • Employees with an EPO plan have routine services available nationally, through either Beech Street or UHC national EPO (i.e. dependents attending school out of state) • Employees with a PPO plan have routine services available worldwide on an Out-of-Network basis • Refer to Benefits Guide page 25

15. WALGREENS HEALTH INITIATIVES PRESCRIPTION PLAN • If you choose brand name rather than generic, you pay the cost differential Refer to Benefits Guide pages 16 - 19

16. DENTAL NETWORKS

17. 2008/2009 RATES

18. AVESISVISION PLAN

19. SHORT TERM DISABILITY • Covers non-job related accident or illness • After-tax deduction – benefit not taxed • Select one of two available plans • Standard Insurance Company • Unum Refer to Benefits Guide pages 31 & 32

20. BASIC LIFE INSURANCE $15,000 term insurance Go online to name beneficiaries SUPPLEMENTAL LIFE For employee, spouse, dependents • Standard • Aetna • ReliaStar Refer to Benefits Guide pages 28 - 30

21. FLEXIBLE SPENDING ACCOUNTS • IRS regulated plans • Helps reduce your taxable income • Pre-tax contributions • Monies are sent to the Plan Administrator, ASI, and placed in one or both accounts: • Health Care Account • Dependent Care Account • Estimate carefully – “Use it or Lose it” Refer to Benefits Guide pages 34 - 36

22. FLEXIBLE SPENDING ACCOUNTS • January 1 – December 31 plan year • Reimbursements can be direct deposited to your account – form online • Claims for plan year must be submitted by March 31 of the following calendar year • You must re-enroll during FSA Open Enrollment every November to continue plan participation

23. VOLUNTARY BENEFITS • Savings Bonds • Auto, homeowners, liability insurance MetLife® Auto & Home • Long-Term Care Insurance Unum

24. Voluntary 403(b) Plan Deferred Compensation Plan 457 • May enroll in either or both plans, in addition to primary retirement plan • May enroll or make changes at any time • Pre-tax contributions • No matching contributions • Maximum 2008 calendar year contributions • $16,500 age 49 & younger • $22,000 age 50 & over

25. REDUCED IN-STATE TUITION Credit classes taken at ASU, NAU & UA • Active benefit-eligible employees • Retirees • Disabled employees • Spouse and dependents Refer to SPP 505

26. VACATION ACCRUAL

27. SICK ACCRUAL All employees accrue sick leave at 3.69 hours per pay period (12 days per year) Policies SPP 701-01 and ACD 702-02

28. RETIREMENT Participation in a retirement plan is MANDATORY for employees working • 20 or more hours per week • For an anticipated 20 weeks Employees with F1 or J1 Visa may not be eligible to participate Postdoctoral scholars are not eligible to participate

29. RETIREMENT PLANS

31. ARIZONA STATE RETIREMENT SYSTEM (ASRS) http://www.asu.edu/hr/benefits/retirement_programs.html

32. ASRS = Defined Benefit Plan Benefit is determined by calculation: Years of Service x Average Salary x % Multiplier Years of Service with any ASRS employer Average Salary = highest 36 consecutive months in last 10 years % multiplier = 2.10% - 2.30%, determined by number of years of service

33. ASRS RETIREMENT • Normal Retirement • Age 65 with any ASRS service • Age 62 with 10 years of ASRS service • 80 Points (your age + years of ASRS service) • Early Retirement • Age 50 with 5 years of ASRS service

34. ASRS CONTRIBUTIONS • You & ASU contribute equally per pay period • 8.95% salary toward retirement • 0.50% salary toward Long-Term Disability • Pre-tax contributions

35. ASRS VESTING • Always 100% in your own contributions • In employer contributions 25% after 5 ASRS years 40% after 6 ASRS years 55% after 7 ASRS years 70% after 8 ASRS years 85% after 9 ASRS years 100% after 10 ASRS years

36. OPTIONAL RETIREMENT PLAN (ORP) Optional Retirement Plan Guideand http://www.asu.edu/hr/benefits/retirement_programs_faculty.html

37. ORP = Defined Contribution Plan • Your retirement income depends upon the performance of your investments • You choose the investment company and allocate the funds

38. ORP CONTRIBUTIONS • You & ASU contribute equally • 7% per pay period • Pre-tax contributions • Automatic enrollment in Long-Term Disability; ASU pays 100% premium

39. ORP INVESTMENT COMPANIES • AIG Retirement (VALIC) • Fidelity • TIAA-CREF • You can change companies once per fiscal year July 1st – June 30th • You can change investment vehicles anytime

40. ORP VESTING • Always 100% in your own contributions • In employer contributions: • 100% after 5 years of participation or • Immediately with proof of an active retirement plan at another institute of higher education

41. Questions?