2016 Open Enrollment Benefits Overview CCC Employee Benefits

2016 Open Enrollment - Benefits Overview

CCC - Employee Benefits Program • Open Enrollment is the annual opportunity for you to make changes and/or enroll in the benefits plan suitable for you. • Your eligibility for the benefits depends upon your employment status, job family, and applicable union contract. • For more information please refer to your applicable Benefits Summary and Benefits Guide. Then complete Open Enrollment online at by logging into HR Self-Service and clicking the Benefits Enrollment link. • If at anytime you have questions or want more information about benefits you can: • Call the Benefits Call Center at 312 -553 -2895 • Email the Benefits Department at benefits@ccc. edu • Hours of operation are 8: 30 AM to 5: 30 PM, M-F 2

Open Enrollment & Mid-Year Plan Changes Open Enrollment: • Confirm your benefits options online starting on November 9, 2015 to November 25, 2015. • Changes made during Open Enrollment will be effective as of January 1, 2016. Mid-Year Plan Changes: Employee benefits options changes outside of Open Enrollment can only occur if: • A qualifying life event happened, such as: Marriage, Divorce, Birth, Adoption, Death, Change in Employment Status • Request for changes must be reported to CCC Benefits within 31 days from the date of the event. 3

HIGHLIGHTS 2016 Open Enrollment • Open Enrollment November 9 – November 25 • 2016 Open Enrollment ALL Active Employees Must Actively Confirm their 2016 Benefit Elections. We will not automatically rollover your 2015 elections. • Rate cost share remains at 85% CCC Cost and 15% Employee Cost share. • New Dental Plan Highlights for 2016 • Open Enrollment : WWW. ccc. edu/OE 2016 4

2016 Plan Costs – Employee Contributions • 2016 Costs are inline with national trend for increases by plan type and tiers: -Medical: PPO - 8% to 15%, HMO - 4. 8% -Dental: 10 -12% - Vision: 6% • See Individual Plan Summaries at www. ccc. edu/OE 2016 for specific applicable job family 2016 rates. 5

CCC Benefits Healthcare Plans: -HMO/PPO -Vision -Dental -FSA -Employer Life Ins. Supplemental Plans: -Voluntary LTD -Voluntary STD - Critical Care Plan -Supp. AD&D -Supp. Spousal/Dep. Insurance 6 Retirement Plans: - SURS -403 (b) - 457 (b)

Eligibility 7

Dependent Eligibility Who can you cover? • Your spouse/same sex domestic partner/civil union partner • Your biological, adopted, foster, and step-children up to their 26 th birthday • Your covered spouse, legal civil union or same-sex domestic partner’s children up to their 26 th birthday • Disabled children after age 26 • Children that you are a court appointed legal guardian for up to their 26 th birthday You cannot cover • Your grandchildren, nieces, or nephews if you are not their court appointed legal guardian • Your parents or in-laws 8

Part-Time Employee Benefits As a part-time employee of the City Colleges of Chicago, you are eligible to elect and receive certain employee benefits during Open Enrollment. Your eligibility for benefits depends upon your employee job family and applicable union contract. To determine your benefits eligibility, please refer to your Benefits Guide and Benefits Summary at http: //ccc. edu/benefits 9

Pre-Tax Treatment Qualified Plans • Health and Welfare Plans (Medical/Dental/Vision) • Flexible Spending Accounts • Dependent Care Accounts • Retirement Accounts – 403(b) /457(b) • Transit Benefits (CTA/METRA) 10

How Pre-Tax Benefits Impact your Final Pay • So, I Have Pre-Tax Benefits. What Exactly Are They? In a nutshell, pre-tax benefits allow you to pay for certain expenses through deductions taken from your pay before any taxes are taken out. Those pre-tax deductions work by discounting the amount of taxable wages you owe taxes on, so your take home pay ultimately ends up being more than if you were to pay for the same benefits on a post-tax basis. 11

Pre-Tax Illustration • Example: John has a daughter who needs braces that will cost $1, 200 over the next year. He also has a $250 major medical coverage deductible. Plus, he needs glasses costing $230. That totals up to $1, 680 for the year, or $70 per bimonthly pay period. • With a Healthcare Flexible Spending Account, John can increase his spendable income. • Healthcare FSA illustration: John’s status: Married, two fed/state exemptions Bimonthly salary: $1, 000 Healthcare FSA: $70 per pay period • Annual savings of $498. 00 ($41. 50 x 12) - $20. 75 bimonthly. 12

Healthcare Plans 13

Medical Plans • HMO Primary Care Physician is required. Referrals by PCP is required. No annual deductible. No co-insurance, plan covers 100% after copay. – Prescriptions coverage through BCBS Prime. – – • PPO – No Primary Care Physician required. – Receive in-network coverage with any in-network doctors, no referrals needed. – Plan starts paying co-insurance after annual deductible is met. – Prescriptions coverage through CVS/Caremark. (PPO plan for Local 1600 employees is a grandfathered plan, some services such as Children Wellness Check-ups, Child Immunization are not covered. ) 14

Dental Plan Enhancements - 2016 – Cleanings updated to twice per calendar year – Adult orthodontia – Veneers repair and replacement every 60 months. – Sealants cover for dependents up to age 19. 15

Vision Plan No changes to vision plan in 2016. Eye exam once every 12 months with $10 copay. Contact lens every 12 months with $300 allowance. Prescription lenses every 12 months with $10 copay for single vision, lined bifocal and lined trifocal. • Frame every 24 months with $120 allowance with $10 copay. • Check to make sure your provider is a VSP participating provider. • • 16

Flexible Spending Account (FSA) What is FSA? • FSA allows you to put up to $2, 550 pre-tax into an account to use toward your out-ofpocket health care expenses. • Dependent Care FSA allows you to put up to $5, 000 pre-tax into an account to use toward child care expenses. Why FSA? • The advantage of having a FSA is that you will reduce your taxable income and you are using pre-tax money that would normally require you to use after-tax money. • It’s easy to use your FSA with the debit card issued with your account. 17

What are other eligible FSA expenses 18

Employer Paid Life Insurance • All eligible employees automatically receive this coverage. • Coverage amount depends on your job family and annual salary. 19

Voluntary Supplemental Plans 20

Voluntary Supplemental Life and AD&D Insurance • For Employee – Up to a maximum of the lesser of 5 times your pay or $750, 000 at increments of $25, 000. • For Spouse – Up to a maximum of $250, 000 at $10, 000 increments, cannot exceed Employee’s supplemental life coverage amount. • For Dependent Children – At $10, 000 or $25, 000 coverage amount. • Other benefits included with Employee’s supplemental life coverage at no additional cost – Will Preparation – Estate Resolution Services – Grief Counseling 21

Voluntary Short/Long Term Disability • Short Term Disability – Pays the benefit amount of 60% of your pre-disability weekly income up to a weekly maximum of $1, 000. – Benefits payout begin after a 7 days elimination period with a maximum duration of 12 weeks. • Long Term Disability – Pays the benefit amount of 65% of your pre-disability monthly income up to a monthly maximum of $8, 000. – Benefits payout begin after a 90 days elimination period. 22

Voluntary Critical Illness • Coverage available for Employee, spouse and dependent children. • The plan pays out a lump-sum benefit to help ease your financial burden due to certain covered serious medical illnesses. • Coverage available at $15, 000 and $30, 000. • Examples of Critical Illnesses: Breast Cancer, Kidney Failure, organ Transplant, Heart Attack, Stroke, and Coronary Bypass Graft, other conditions may be eligible for partials or recurring benefits, see plan summary. 23

Retirement 24

State Universities Retirement System (SURS) • SURS provides retirement, disability, death, and survivor benefits to participants and annuitants. • SURS is a contributory system and you must contribute 8% of your gross earnings on a pre-tax basis. • CCC employees do not pay into Social Security so you are not eligible for Social Security benefits from CCC employment. • No Social Security taxes are withheld from your earnings; however, contributions for Medicare withheld from your gross earnings. • Must select benefit plan type within 6 months of employment start date or will be permanently enrolled in the Traditional Benefit Plan • Election is a one-time, irrevocable decision that cannot be changed 25

SURS Benefit Options Portable Benefit Package Traditional Benefit Package Self-Managed Plan (SMP) 8% of Earnings 8% of earnings Payment in form of lifetime monthly annuity OR lump sum payment Payment in the form of lifetime monthly annuity Portable Benefit Package Funds invested by professional investment managers hired and supervised by SURS You select and manage the investment of your funds chosen from a menu of investment vehicles offered by SMP service providers Retirement benefit based on predetermined formula of your work earnings and years of service Retirement benefit based on performance of investments you select 26

403(b) and 457(b) Retirement Savings Plans Contribute pre-tax money to the plan to help you save for retirement. Lower your taxable income. Taxes are paid at the time of distributions in retirement. Earnings from investments are not taxable until distributions. Access your funds through loans or hardship withdrawals. Catch-up contributions available for employees over 50 years old. Many investment options. • • 27

Difference between 403(b) and 457(b) Plan Feature 28 403(b) 457(b) Service-based Catch-up Contributions Employees with at least 15 years of consecutive service with City Colleges can contribute up to $3, 000 per year to a lifetime maximum of $15, 000. (Prior year contributions may limit this amount. ) Employees can make this contribution and the age 50 additional contribution in the same year. Employees within 3 years of Normal Retirement Age 65 can contribute up to 2 times the basic annual contribution limit—or up to $35, 000 for 2015. (Prior year contributions may limit this amount. ) Employees can make the greater of this contribution or the age 50 additional contribution, but cannot do both in the same year. In-Service Withdrawals Permitted at age 59 -1/2 with no 10% tax penalty. The amount you withdraw is subject to income tax. No in-service withdrawals are permitted. Unexpected Withdrawals Hardship withdrawals must meet one of 6 IRSdefined conditions and are subject to income tax plus a 10% penalty tax, followed by a 6 -month contribution suspension period. Unforeseen emergency withdrawals for severe financial hardships as defined by IRS regulations are subject to income tax with no tax penalty for early withdrawal.

Difference between 403(b) and 457(b) (cont’d) Plan Feature Distributions 29 403(b) Distribution events are separation from employment, retirement, disability or death. All distributions are subject to income tax. Distributions before age 59 -1/2 are also subject to a 10% tax penalty unless due to death, disability or separation from service after attainment of age 55. 457(b) Distribution events are separation from employment, retirement or death. All distributions are subject to income tax with no tax penalty regardless of age.

Other Benefits 30

Transit Benefits • Available for CTA/Pace Ventra Card Program and METRA Transit Prepaid Master. Card Program. • Use pre-tax payroll deductions for your transit expenses. 31

Auto and Home Owners/Renters Insurance Reimbursement • Receive $200 reimbursement per year for a Travelers auto insurance policy. • Receive $100 reimbursement per year for a Travelers home owners/renters insurance policy. • Available to most Full-time employees, refer to your Benefits Summary for eligibility requirement. 32

Important Contact Numbers • • 33 CCC Benefits Dept. : 312 -553 -2895, or benefits@ccc. edu HMO Medical: 1 -800 -892 -2803 HMO Prescription Drug: 1 -800 -423 -1973 PPO Medical: 1 -800 -772 -6895 PPO Prescription Drug: 1 -877 -542 -0285 Dental: 1 -855 -557 -5488 Vision Service Plan (VSP): 1 -800 -877 -7195 Employee Assistance Program (EAP) : 1 -800 -511 -3920

Questions? Send your inquiries to benefits@ccc. edu 34 34