Employee Benefits

1. Employee Benefits • Long Term Care • Leave • Holiday • Savings • Credit Union • Additional Benefits • Retirement • Health • Dental • Vision • Life/AD&D • Cafeteria • Flexible Spending • Long Term Disability

2. Retirement Louisiana State Employees Retirement System (LASERS) • Participant criteria: • Full-time classified employee • Part-time classified employee, working 21 or more hours per week • Participation is mandatory • Employees age 55 or older when hired contribute to one of the following: • LASERS • Social Security (if you are under age 60, you must have already contributed to Social Security for at least 40 quarters) • Deferred Compensation Plan

3. Retirement • Retirement criteria (as of Jan. 1, 2011) • At least 5-years of service credit and age 60 or older • Disability retirement after 10-years of service • Retirement benefit formula

4. Retirement • Survivor Benefits • Available after 5-years of service to minor children • Available after 10-years of service to a surviving spouse • Options at Separation of Employment • Keep your money in the plan and notify us when you are ready to retire • Roll your contributions into an IRA or another compatible plan • Withdraw your contributions 20% taxes and 10% penalty will be imposed!!

5. HCP Employee Options • Social Security – employee may contribute to Social Security at a rate determined by the Federal Government. The Agency will also contribute to Social Security at the Federal Govt. rate. • Deferred Compensation – in lieu of contributing to Social Security you can opt to contribute to this investment plan. Contributions by both the employee and agency are at the normal Social Security rate.

8. Write your name here Write your SSN here Sign here Write the date here

9. Write your name here Write your SSN here Sign here Write the date here

10. Benefits Department • Staff • Alisha Crowell 903-0113 Benefits Supervisor • Tonya Jackson 903-0141 Benefits Analyst • Kim Myers 903-0709 Benefits Analyst • Dolores Nehlig 903-1604 Benefits Specialist • Office Information • Butterworth Building, Rooms 204-207 • 7:30 a.m. – 4:00 p.m. • Fax: 680-0221

11. Important Information • Dates to Remember: • Date of Hire _____________________________ • Enrollment forms due in HR _________________ • Coverage effective date ____________________ *Up to 30 days from date of hire to sign up for benefits • Documents • Retirement: Social Security Card and Birth Certificate • Benefits: Original Birth Certificate(s), and Marriage License Page 1

12. Health Insurance • Enroll within first 30 days of employment or at any time during the year • Premiums deducted one month in advance • Pre-existing conditions apply • Four options for medical coverage • LSU First/CIGNA (two options) Nationwide • 1-866-929-5781 www.lsufirst.org • Blue Cross Blue Shield of LA HMO Nationwide • 1-800-392-4089 www.bcbsla.com/ogb • Group Benefits PPO Statewide • 1-800-272-8451 www.groupbenefits.org • United Healthcare CDHP Nationwide • 1-866-393-6765 www.myuhc.com

13. Network of providers to select from, utilizing CIGNA’s nationwide network, the First Choice providers, and Verity Health’s Louisiana network • LSU deposits money into a Health Reimbursement Account (HRA) • No out of pocket expenses until HRA is exhausted • First Choice Providers offering 100% coverage after HRA is exhausted • If expenses exceed your HRA, then you are responsible for a deductible. Once the deductible has been met, plan pays 90% in-network providers or 70% to out-of-network providers. • Any unused HRA balance on January 1st rolls over and can be used in future years • Generic drugs are available at no cost after HRA is exhausted. • Preventive Care Covered 100% with in-network providers; annual eye exam • Critical Illness policy built into plan: $5000 for employee • $25,000 term life insurance policy including AD&D coverage • No lifetime maximum See Benefit Snapshot in booklet

16. HMO • No deductibles, fixed co-payments for services • Example: $15 primary care physician; $25 specialist • 50/50 pharmacy benefits; employee pays 50% of cost up to $50/prescription • Name brand covered when there is no FDA approved generic substitute See Health Plan Summary in booklet for details

17. PPO • Indemnity Plan featuring a network of contracted providers and facilities • Annual deductibles of $500/person and coinsurance apply • Various levels of reimbursement based on utilization of PPO/Non-PPO provider in the region where services are received • Freedom to select from network physicians; no referrals required • 50/50 pharmacy benefit; employee pays 50% of cost up to $50/prescription; $1200 max out-of-pocket

18. CDHP • Plan year deductible: • Employee $1,250 • Employee & spouse or child $2,500 • Family $3,000 • In Network Maximum Out of Pocket: • Employee $3250, including deductible • Employee & spouse or child $6,500, including deductible • Family $9,000, including deductible • Out of Network Maximum Out of Pocket • There is no maximum

19. CDHP • After deductible is met, plan member pays: • 20% co-insurance for network providers • 30% co-insurance for non-network providers • Routine annual exams are covered at 100% with no deductible • Age limitations & timelines apply

20. Health Savings Account • Not Eligible to participate if you • choose a medical plan other than United CDHP • or your spouse are participating in a Flexible Spending Plan • and your dependents have medical coverage under another plan • have TRICARE or TRICARE for Life • used VA benefits within the previous 3 months • have Medicare Part A or B

21. Health Savings Account • State of Louisiana • makes the initial $100 deposit in your account • additionally matches your contributions dollar for dollar up to $400, if made via IRS Section 125 Cafeteria plan via payroll deduction • 2012 Federal Guidelines for Total Contributions: • $3,100 for individual coverage • $6,250 for family coverage • Can add $1,000 more per year for each year you are over age 55

22. Health Savings Account • IRS “use-or-lose” rule does not apply • Funds roll over from year to year • Money in your HSA grows tax free • If you change health plans or jobs, or retire, HSA is yours to keep • From age 65 on, you can use your HSA dollars for any healthcare or non-healthcare expenses with no penalty

23. Health Insurance Rates August 2012 - December 2012 monthly deductions

24. Living Well Louisiana Program - OGB • Health coaches (nurses, dietitians, pharmacists and respiratory therapists) available to assist with healthcare needs 24/7 • Eligible to enroll if you participate in the BCBS-HMO or OGB-PPO and diagnosed with: • asthma • diabetes • heart disease • heart failure • chronic obstructive pulmonary disease (COPD) • You pay $15 for brand drugs and $0 for generic • To enroll call 1-800-383-0115

25. Diabetic Sense Program - OGB • Eligible to enroll if you participate in the BCBS-HMO or OGB-PPO • Get test supplies for free • Free Glucometer • Sign up by calling 1-888-341-8582 • Provided by CatalystRx

26. Dental Insurance • Two Options (Basic or Enhanced) www.dearbornnational.com 1-888-758-6979

27. Dental Insurance

28. Vision Insurance *if LSU 1st member, receive UV coating, scratch protection & progressive lenses at no additional cost 1-877-923-2847 www.davisvision.com (LSU 1st Client Control 4884) (Non LSU 1st Client Control 4885)

29. Vision Insurance

30. Office of Group Benefits/PrudentialLife Insurance • Employees guaranteed coverage if enroll within 1st 30 days of employment • State pays half the premiums; employee pays dependent life premium • Plan includes AD&D coverage on employee • Reduction of 25% in coverage and appropriate reduction in premiums, July 1st following ages 65 and 70. Children’s coverage ends at age 26.

32. LSU Voluntary Life Insurance (The Hartford) • Guaranteed issue when enrolling during the first 30 days • Guarantee issue amount for employee coverage is five (5) times annual base salary up to $500,000 • Spouse coverage is guaranteed up to $100,000.  Spouse is eligible for up to 50% of employee coverage; amounts over $100,000 require approval • Accidental death and dismemberment coverage for employee/spouse available • Child(ren) are eligible for $5,000, $10,000 or $20,000 of life up to age 26 (AD&D not available) • Spouse and children are not eligible for coverage if they are an active member of the armed forces. • May apply for coverage at any time, yet coverage is subject to underwriting approval

33. LSU Voluntary Life Insurance (Monthly Rates)

34. Accidental Death and Dismemberment • Benefits are paid for loss of life, disability or dismemberment resulting from a covered accident. • Coverage is effective 1st of month following enrollment. • Employee's spouse and unmarried eligible dependents (14 days up to age 21, up to age 24 if a full-time student) are also eligible for coverage: • Spouse coverage = 50% of principal sum or 40% if you have eligible children • Children coverage = 15% of principal sum or 10% if your spouse is eligible for coverage • * Monthly Rate

35. Tax Saver Flexible Benefit Plan • Cafeteria Plan • Premiums for medical, dental, vision and Group Benefits life insurance are deducted from your check pre-tax. • Must enroll within 30 days of appointment date; otherwise, must wait until October Annual Enrollment period • No cost to participate • You can only cancel or lower coverage during Annual Enrollment unless you have a qualifying event. Change must be made within 30 days of event. • Qualifying events include: • Change in marital status • Birth/Adoption • Change in employment status of spouse • Change in eligibility of a dependent

36. Flexible Spending Account • You can set aside a portion of your earnings, tax-free, for everyday expenses you may have: • Dependent day care expenses • Out-of-pocket medical expenses including medical, dental, vision, over-the-counter medications or prescription drugs • How it works • The amounts you elect are automatically deducted from your paycheck on a pre-tax basis. • The money is held until you have a qualified expense • You will receive a credit card to pay for qualifying expenses or you can email your claims and receipts to flex@boonchapman.com • If emailed, the claim is reviewed and tax-free reimbursements are made to you by direct deposit. *IF YOU DON’T USE THE MONEY, YOU LOOSE IT!!

37. Flexible Spending Account • Dependent Care FSA • Who is eligible? • Child under 13 (over 13 if physically incapable of self care) • Spouse or parent who resides with you and incapable of self care • Eligible Expenses • Day care facility • Before/After School Care • Summer Day Camp • Nursery school or preschool, if child is too young for Kindergarten (Private school tuition K4 and above is not eligible.) • In home babysitting fees, if claimed as income by care provider and not provided by dependent

38. Flexible Spending Account • Health Care FSA • Eligible Expenses • Co-payments • Deductibles • Prescription Drugs • Dental Services • Braces • Eye examinations • Contacts/Eyeglasses • Hospitalizations • Surgery Expenses • Chiropractors • Podiatrists • Hearing Aids • Laboratory Fees • Acupuncture

39. Flexible Spending Account Example:

40. Long-Term Disability • Affordable financial protection against a disabling illness or injury • 60% of salary is insured • Payable once 90 consecutive days of work are missed & sick leave is exhausted • Employee is guaranteed coverage if enrolled within the first 30 days of employment. • Monthly salary X .00553 = monthly premium (see right) • Deductions are immediate and are taken from all 26 checks.

41. Long-Term Care • Guaranteed issue for employee and spouse if elected within first 30 days of employment • Choose a benefit amount of $1,000 to $4,000 per month, in increments of $1,000, with a benefit duration of either three or six years • May elect coverage for parents and grandparents after medical underwriting • Benefits paid for a cognitive loss or when person can no longer perform 2 of the 6 “Activities of Daily Living” • Before benefits are payable, a 60-day waiting period requirement must be met. • Benefit payments are made directly to you, to be used at your discretion

42. Classified Leave • All job appointment, probationary and permanent classified Civil Service employees earn sick and annual leave. • Part-time Civil Service employees earn a pro-rated amount based on their hours worked. • There is no maximum amount of leave an employee may accumulate. • When leaving state service, up to 300 hours of annual leave will be paid out; sick leave will not be paid out. • If you return to state service within 5 years, unpaid annual and sick time will be restored. • At retirement, leave can be converted to service credit or paid out.

43. Savings Plans • LA Deferred Compensation(457b) & 403b • Both are defined by the IRS as retirement savings accounts. • Your contributions are made pre-tax. • You pay taxes on the money when you make a distribution after retirement. • IRS limits: $17,000/year and an additional $5,500/year if 50+ • You decide how the money is invested. • You can roll money into account from other retirement plans, • To sign up for 403(b) you must contact the individual vendor.

44. Savings Plans contacts Cliff Lloyd (985) 969-2839 (cell) (225) 300-1528 clloyd1@metlife.com Daniel G. Misse (504) 620-5569 (504) 710-7766 (cell) Daniel.G.Misse@ingfp.com DEFERRED COMPENSATION-457 C. David Arriaza (985) 445-6642 (800) 937-7604 (225)-926-8082 KeyTalk 1-800-701-8255 www.LouisianaDCP.com Mitchell Tabor (225) 201-1009 (504) 810-8626 (cell) mitchell.tabor@valic.com Mark DiGiovanni 504-644-5013 mdigiovanni@tiaa-cref.org

45. Credit Unions

46. Additional Benefits • LA Start Saving Program • Saving money for college expenses for your children’s or grandchildren’s college or vocational education • Earnings enhancements between 2% and 14% • Up to $2,400 per year may be excluded from taxable income reported on the account owner’s Louisiana tax return • Earnings are tax deferred while in the account and are exempt from state and federal taxes when used to pay qualified higher education expenses • http://www.startsaving.la.gov

47. BEFORE LEAVING FOR LUNCH All Employees must : Turn in your completed Benefits forms in the back of the room. If not electing to take benefits you need to turn in the forms declining them. Pool Employees may leave for lunch if they turned in their forms after the pool benefits presentation. All employees may go to lunch when finished with your Benefits paperwork. If you have not already done so, contact your manager to find out what time to report to work after orientation. The afternoon session begins promptly at 12:00 pm. Kindly return by 11:50 am so you can be settled and ready to begin the first afternoon presentation. The lecture on Prisoner Safety is from 12:05pm – 12:10. If you are late you will miss it. Thank you and enjoy your lunch.

48. LUNCH • The afternoon session begins at 12:00 p.m. Please return by 11:55 a.m. so you will be seated and ready to start on time.