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Slide 2 City of Chesapeake Employees: Slide 3 Elizabeth Donohue Senior Benefits Specialist 757-382-6373 Health and Dental Allison Myers Assistant Human Resources Director 757-382-6583 Supplemental Benefits Slide 4 Health Coverage Dental Coverage Long Term Care Life Insurance Virginia Retirement System (VRS) Flexible Spending Account (FSA) Legal Resources Slide 5 Hire Date1 st 15 th of the month* Example: Hire Date 01/8/12 16 th last day of month Example: Hire Date 01/22/12 Effective Date1 st of the month immediately following the date of hire Example: Effective Date 02/1/12 1 st of the next following month Example: Effective Date 3/1/12 * If employee will not be paid on the 15 th of the month, the employee will be double deducted in their paycheck on the 30 th of the month. Effective/Eligible Date = Based on the Hire Date Slide 6 Slide 7 Anthem Blue Cross Blue Shield Optima Health Slide 8 Co-Pay Co-Insurance Deductible Out of Pocket Max Slide 9 Plan OptionsAnthem PPOOptima High HMO Anthem High HMO Optima Low HMO Anthem Low HMO Annual Deductible $200/$400$0 Preventive Care copay $0 Physician copay$25 PCP $50 Spec. $20 PCP $50 Spec. $25 PCP $70 Spec. Outpatient Surgery 10% coinsurance $150 copay Urgent Care10% coinsurance $50 copay $70 copay Emergency Room 10% coinsurance $200 copay Out of Pocket Maximum $2250/$4500$2000/$4000 Pharmacy$10/30/50/20%$10/30/50/75$10/30/50/20%$10/30/50/75$10/30/50/20% Slide 10 On what tier do my medications fall? Slide 11 How often do I see a Specialist or a Primary Care Physician? Slide 12 Are my Physicians currently accepting Optima or Anthem? Slide 13 How much will be deducted from my pay check? Slide 14 Health Insurance Plan OptionsAnthem PPOOptima High HMO Anthem High HMO Optima Low HMO Anthem Low HMO Annual Deductible $200/$400$0 Preventive Care copay $0 Physician copay$25 PCP $50 Spec. $20 PCP $50 Spec. $25 PCP $70 Spec. Outpatient Surgery 10% coinsurance $150 copay Urgent Care10% coinsurance $50 copay $70 copay Emergency Room 10% coinsurance $200 copay Out of Pocket Maximum $2250/$4500$2000/$4000 Pharmacy$10/30/50/20%$10/30/50/75$10/30/50/20%$10/30/50/75$10/30/50/20% Slide 15 Plan OptionsAnthem PPOOptima High HMO Anthem High HMO Optima Low HMO Anthem Low HMO Annual Deductible$200/400$0 Physician copay$25 x 4 = $100$20 x 4 = $80 $25 x 4 = $100 Pharmacy copay$20 x 12 = $240 Annual Premium$7752$6564$4956$3468$3720 Flexible Spending suggestion $340$320 $340 TOTAL (including FSA suggestion) $8092$6884$5276$3808$4060 Slide 16 Plan OptionsAnthem PPOOptima High HMO Anthem High HMO Optima Low HMO Anthem Low HMO Annual Deductible$200/400$0 Out of Network coverage YESNO Emergencies only MAYBE *NO Emergencies only MAYBE * Annual Premium$3912$2832$2052$1320$1416 *Some dependents may be able to guest service into another Anthem plan depending upon the geographic area in which they reside. Slide 17 Slide 18 Slide 19 Slide 20 HMO=Healthkeepers; PPO=Keycare Slide 21 Slide 22 Five Options Anthem Healthkeepers 20 HMO High Option (Group #: CCH002-04, Group Name: City of Chesapeake) Anthem Healthkeepers 25 HMO Low Option (Group #: CCH002-05, Group Name: City of Chesapeake) Anthem BC & BS PPO (Group #: 20253000, Group Name: City of Chesapeake) Optima Vantage HMO High Option (Group #: 2325, Employer Name: City of Chesapeake) Optima Vantage HMO Low Option (Group #: 2328, Employer Name: City of Chesapeake) Slide 23 Key Points 1. Covering Dependents 2. Selecting a Primary Care Physician 3. Coordination of Benefits Slide 24 Dental Insurance Dental insurance is offered through Delta Dental General Deductible: $50/person (max of 3/family/year = $150) Sealants are covered for dependents under age 16. Preventive care covered at 100% -includes semi-annual cleanings & annual x-rays Basic dental care covered at 80% -includes fillings & root canals Major dental care covered at 50% -includes dentures, bridges and crowns Maximum annual benefit is $1250/person Slide 25 Long Term Care insurance covers care typically not covered by medical insurance. Individuals who require long term care are generally not sick in the traditional sense, but instead are unable to perform the basic activities of living, such as, dressing, bathing, eating, and walking. (i.e. Individual is in a car accident and requires therapy to learn how to walk again.) Slide 26 LTC insurance generally covers home care, assisted living, adult daycare, respite care, hospice care, nursing home, and Alzheimers facilities. Premiums are payroll deducted on a pre- tax basis. Premiums are based on age and lifetime maximum; the younger a person is when they purchase LTC insurance, the less expensive the premium. Coverage is portable. Slide 27 Slide 28 Medical Allows employees to set aside pre-tax dollars for post tax medical expenses Medical, Dental, and Vision expenses not covered by insurance are generally included Funds are available on the first day of the plan year VISA debit card may be used for qualified purchases Annual election may be up to $5000 Use or lose benefit, important to only elect an amount that will be used during the plan year Dependent Care Allows employees to set aside pre-tax dollars for post tax dependent care expenses Childcare and pre-k tuition is includable Funds must be withdrawn from your paycheck prior to receiving reimbursement Annual election may be up to $5000 Use or lose benefit, important to only elect an amount that will be used during the plan year Understanding your Discovery Benefits FSA Slide 29 You and your family members add up your medical expenses and determine the following annual expenses: Prescriptions: ($30.00/month x 12 =) $360.00 Eyeglasses & contacts: $200.00 Dental expenses $100.00 TOTAL $660.00 If you are in the 28% tax bracket, you will save $184.80 in taxes based on a FSA election of $660.00/annually. The plan year runs from August 1 st through July 31 st Complete Discovery Benefits enrollment form if interested in flexible spending. Slide 30 LEGAL RESOURCES All attorney fees for legal services listed in the "Summary of Services" are either covered in full at 100% or discounted at 25%, depending on the legal matter. There is a monthly fee of $17. This fee includes unlimited use of covered services for all covered family members. You can only enroll in this plan during the open enrollment period (April) or within the first 30 days of employment. Slide 31 Key Points Retirement benefit is paid by you and the City. You are vested after 5 years. You are eligible to retire with an unreduced benefit at normal Social Security retirement age with at least 5 years of VRS service, or when your age and service credit equal at least 90. (example: age 60 with 30 years of service credit). You may retire with reduced benefits at age 60 with 5 years of service Unreduced retirement is equal to 51% of your salary based on the average of your 60 consecutive months of highest compensation. If you are not vested and leave the City, you are eligible for any contributions that you have made to your member contribution account plus accrued interest. If vested, you will receive a full refund of your member contribution account balance. Slide 32 Types of Prior Purchased Service: Active duty military service Full-time salaried federal service Full-time salaried public service other than prior VRS-covered service Non-covered service with a VRS-participating employer Approved leave for the birth or adoption of a child, provided you were on leave from a VRS-covered position Approved educational leave, provide you were on leave from a VRS covered position Non-ported service. You do not need to apply for this service. The amount of service you are eligible to purchase will be determined during the portability process. Within one year of becoming eligible, your cost will be based on an approximate normal cost rate as a percentage of your compensation or average final compensation, whichever is higher. Slide 33 Key Points Retirement is paid fully by the City You are vested after 5 years You are eligible to retire with unreduced benefits at either age 65 with 5 years of service; or age 50 with at least 30 years of service. You are able to retire with reduced benefits at age 50 with 10 years of service or age 55 with 5 years of service. Unreduced retirement is equal to 51% of your salary based on the average of your 36 consecutive months of highest compensation. If you are not vested, you will receive a refund of any contributions you have made, plus accrued interest, and any employer contributions and interest made before July 1, 2010, if applicable. You are not eligible for a refund of any employer contributions and interest made after July 1, 2010. If you are vested, then you will receive a full refund of your membership account balance. Slide 34 Types of Prior Purchased Service: Active duty military service Full-time salaried federal service Full-time salaried public service other than prior VRS-covered service Non-covered service with a VRS-participating employer Approved leave for the birth or adoption of a child, provided you were on leave from a VRS-covered position Approved educational leave, provide you were on leave from a VRS covered position Non-ported service. You do not need to apply for this service. The amount of service you are eligible to purchase will be determined during the portability process. Within three years of becoming eligible, your cost will be based on 5 percent of your compensation or average final compensation, whichever is higher. Slide 35 Slide 36 VRS Basic Group Life Insurance Included with your VRS Retirement Benefit. The life insurance benefit of 2x your annual salary, rounded up to the next thousand. Example: Joe Smith earns $22,345 annually. Rounded up, this is $23,000 annually. His VRS Life Insurance policy is worth $46,000. (2 x $23,000) Life Insurance is available immediately upon VRS membership. If you retire with the City, the policy will carry with you in retirement. Slide 37 Optional life insurance allows you to purchase additional life insurance for yourself, your spouse (unless your spouse is a VRS eligible employee) and/or your dependent children under age 21. You can purchase up to an additional four times your salary for yourself; up to an additional two times your salary for your spouse and up to $30,000 for your dependent children. Guaranteed issue is available within your first 31 days of employment. Coverage is portable; you can take it with you if you leave the City. This option is available once you have maintained coverage for 60 months. You also have the option of converting to a whole life policy upon retirement. Slide 38 Benefits available to employees if he/she develops a life-threatening condition or passes away in service: Health Insurance Benefits- paid for one month after death; coverage can be continued under COBRA for up to 36 months for eligible dependents Life Insurance Benefits-paid to beneficiary at 2 times the annual salary or 4 times the annual salary if accident causes life threatening health condition. Accelerated death benefit is available which is equal to the regular benefit when a terminal condition is determined with an expectancy of 12 months of less Retirement Benefits- Beneficiary receives refund of contributions plus interest or a monthly check, if eligible, based on a portion of the projected monthly benefit which would have been paid to the employee upon retirement Annual Leave Payout-Accumulated leave will be paid out to beneficiary of the employee Slide 39 If you have any questions related to your benefits, please contact your Payroll Clerk or write your questions down for your New Employee Orientation. We are excited to have you join us here at the City of Chesapeake.