Even if you can only invest a small amount, the earlier you start, generally the better. Time can be one of the most powerful investment tools around. And these contributions are tax-favored. Employer contributions and earnings accrue tax free and are paid out tax free for reimbursement of qualified medical expenses. Employee voluntary contributions are made after tax, but earnings accrue tax free and the total accumulation is paid out tax free for reimbursement of qualified medical expenses. Take a look at this chart:

The following is an illustration of the power of compounding-$100/month for 5, 10, 15, 20, 25, 30, 35, and 40 years.

The Emeriti Program investment choices

The Emeriti Program offers a choice of Fidelity Freedom Funds® and the Fidelity Retirement Money Market Portfolio to invest your employer contributions and, if your Emeriti Plan allows, your voluntary employee contributions.

Each of the Fidelity Freedom Funds invests in a diversified portfolio of well-established, actively managed Fidelity mutual funds designed to:

However, neither diversification nor asset allocation ensures a profit or guarantees against loss. Please note these funds are subject to the volatility of the financial markets in the U.S. and abroad and can be subject to the additional risks associated with investing in high yield, small cap, and foreign securities.

The Fidelity Retirement Money Market Portfolio is a money market mutual fund managed by Fidelity Investments and is designed to:

An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these investment options.

The Fidelity U.S. Treasury Money Market Portfolio is a money market mutual fund managed by Fidelity Investments and is designed to:

An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these investment options.

For more detailed information on the Fidelity Freedom Funds, including performance, holdings, and prospectuses, visit fidelity.com.

View the most recent quarterly performance sheet for the investment options available through the Emeriti Program. For current performance data, and Money Market fund information, please visit the Fidelity website.

Strategic Advisers, Inc., a subsidiary of FMR Corp., manages the Fidelity Freedom Funds.

Choosing the Freedom Fund that's right for you

As you consider your investment choices, you should review the important differences between the investment options and determine which might align with your individual circumstances, retirement horizon, risk tolerance and investment goals.

For example, you may wish to allocate contributions in the Fidelity Freedom Fund closest to your target retirement date. Or you may want to allocate your contributions among several investment choices, such as a percentage in any Fidelity Freedom Fund of your choice and the remaining percentage in the Retirement Money Market Portfolio. No matter what you choose, you can change how future contributions to your Accounts are invested or rebalance your portfolio at any time. If you don't make a fund selection, then by default, your employer contributions will be invested in the Fidelity Freedom Fund closest to the year in which you will become Medicare eligible (currently age 65), at the direction of the Plan.

The underlying investment mix of each of the Fidelity Freedom Funds changes over time to help meet the changing needs of participants as they get closer to retirement, with the fund's allocation becoming more conservative as its target retirement date nears.

The funds with longer time frames are more aggressive, with higher concentrations of stock (equity) mutual funds, a greater potential for higher investment returns and higher potential volatility. These funds may be more appropriate for investors who are far enough away from retirement to tolerate the market's inevitable ups and downs.

The funds with shorter time frames are more conservative and may be more appropriate for investors who want to focus on preserving their current assets. These funds concentrate on investing in bond funds and money market funds, which historically have fluctuated less in value than stock funds although they also offer less potential for growth.

As each Freedom Fund nears its target retirement date, the fund will take on an asset mix comparable to the Fidelity Freedom Income Fund®. In fact, each of the Fidelity Freedom Funds will ultimately merge into the Fidelity Freedom Income Fund 10–15 years after the target retirement date is reached.

These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high yield, small cap and foreign securities.

Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest.

Emeriti Guaranteed Annuity Option to be Discontinued (for now)

As a result of its continuing strategic product review, Fidelity will no longer issue guaranteed annuities, effective April 30, 2008. Emeriti continues to believe that a guaranteed income option is desirable for retirees who may wish to have a stable flow of income into their Emeriti Health Account, whether for a fixed term or for a lifetime, to pay for their health insurance premiums and other qualified medical expenses. Emeriti is looking for a replacement product.

A key feature of the Emeriti Program is access to Emeriti's fully insured indemnity-type health insurance plans ¹, underwritten by Aetna Life Insurance Company ². Emeriti offers a choice of portable, group health insurance options for you and your dependents ³, if you meet the requirements of retirement eligibility under your institution’s plan. At their core, the Emeriti Health Insurance Plan Options are designed to complement the coverage needs of Medicare eligible retirees, delivering the peace of mind that comes with added protection now and into the future. These insurance options build upon the foundation of Medicare, and require that participants be enrolled in Medicare Part A insurance (hospital and skilled nursing) and Medicare Part B insurance (physician services and various diagnostic testing).

If your institution has also adopted Emeriti’s pre-65 retire coverage, you now have a health insurance bridge between your working years and Medicare eligibility. Emeriti’s post-65 options all complement Medicare and include Medicare-approved Part D coverage.

About the Post-65 Health Insurance Plan Options

Your Emeriti Health Insurance Plan Options are designed to provide a number of key benefits, including:

Premium rates are also an important consideration. Rates for the Emeriti Health Insurance Plan Options are based on the ptions you choose, your age and where you live. For some plans—particularly the prescription drug only options—the rates and your share of the costs of each prescription are also affected by other provisions, such as your preferred way of purchasing prescriptions (mail order, retail pharmacy), the availability of the drug on the Aetna formulary and the nature of the drug prescribed (generic or brand). Use the Emeriti Health Insurance Plan Option Rate Guide to see what your estimated health plan premiums may be for each option, including the options available to any eligible dependents.

Review complete details of the Post-65 Retiree Health Plans. For institutions in Minnesota, and their retirees residing in Minnesota, HealthPartners provides comprehensive coverage and Aetna provides prescription drug-only and dental plans.

Eligibility for the Health Insurance Plan Options

In order to be eligible for the Emeriti Health Insurance Plan Options you must meet the definition of Retirement Eligibility under your institution's Emeriti Plan. Refer to the Emeriti Summary Plan Description of your institution's Emeriti Plan, of call 1-866-EMERITI for a more detailed explanation of the rules regarding your Plan's enrollment eligibility.

You will be able to enroll during the 90-day period beginning with the last of three events:

If you do not enroll during that 90-day period, you will not be eligible for the Health Insurance Plan Options again, unless you experience certain life events. The same is true for your eligible dependents; they must enroll with you when you become eligible or lose their eligibility except for certain life events. To learn more about these exceptions, consult your institution's Emeriti Summary Plan Description or call an Emeriti Specialist at 1-866-EMERITI (1-866-363-7484).

When you meet Retirement Eligibility for the Health Insurance Plan Options, you will also be eligible for Reimbursement Benefits for yourself and your eligible dependents. Even if you do not meet the Retirement Eligibility criteria, you may be eligible for Reimbursement Benefits for yourself and your eligible dependents upon attaining age 55.

Eligibility for spouse/dependents

When you meet the Retirement Eligibility requirements for your institution's Emeriti Plan, you may be permitted to enroll your eligible spouse ³ or dependent children at that time, and you will use your Health Accounts to pay the premiums for that coverage.
View detailed definitions of the different types of eligible dependents.

Call an Emeriti Specialist at 1-866-EMERITI for further help on who is an eligible dependent, including information regarding permanently disabled children. Refer to Emeriti Summary Plan Description of your institution's Emeriti Plan for a more detailed explanation of the rules regarding enrollment eligibility.

¹ Aetna health plans contain exclusions and some benefits are subject to limitations or visit maximums.

² Aetna provides comprehensive coverage, including medical and prescription drug benefits, in 48 states and the District of Columbia. Aetna will also provide stand-alone prescription drug coverage in all 50 states and the District of Columbia. HealthPartners will provide comprehensive coverage for Minnesota institutions and their retirees residing in Minnesota. Emeriti will select a provider for New Mexico institutions.

³ Domestic partners' coverage may also be available if elected by your institution. If you have a non-dependent domestic partner, you cannot use your Emeriti Health Account to pay for the health insurance or qualified medical expenses. Insurance premiums must be paid each month via electronic transfer from other assets.

Emeriti offers pre-65 retiree group health insurance for participants seeking an affordable, sustainable health insurance solution in the gap between COBRA coverage and Medicare eligibility.

Pre-65 retiree coverage is an optional additional benefit for Emeriti Consortium members. It will not be available as a stand-alone product, and requires that your institution also participate in post-65 insurance options. Coverage is underwritten by Aetna Life Insurance Company (Aetna) and is available to Emeriti member institutions in 48 states and the District of Columbia. Pre-65 options will not be available in 2009 for institutions located in Minnesota and New Mexico.

Eligible Dependents

If you are post-65 and enrolling in Emeriti, or if you are enrolling as a pre-65 retiree, you can enroll your pre-65 eligible dependents in one of Emeriti’s Pre-65 Group Retiree Health Plans. Emeriti offers three different pre-65 group retiree health insurance options: high, medium, and low plans, all with in-network and out-of-network premium rates. All of the plans are guaranteed issue (no pre-existing condition exclusions) and portable, so you can live anywhere in the U.S.

Learn more about Emeriti’s pre-65 group retiree health plans.

The Emeriti Program provides a menu of four medical plans and four prescription drug (Medicare Part D) plans to meet your insurance needs. You can choose the type and level of coverage for your needs this year, and then choose a different combination next year. No matter which medical and prescription plans you choose, you have:

Currently, retirees choose from four medical plan options and four Rx plan options. Dental can be added to any of the combinations. Please note that the current Rx Low Plan is the only plan that may be chosen as a stand-alone option; you can add dental to this plan, too.

Four Post-65 Retiree Medical Plan Options:

Two are Medicare Supplement plans that build on Original Medicare Parts A and B.  The other two are Medicare Advantage (Part C) Private Fee-for-Service (PFFS) Plans.

Four Medicare-Approved Part D Prescription Drug Plan Options: 

*If your institution has fewer than 50 employees, your Emeriti insurance option will be limited to a separate insurance offering mandated by your state insurance department as part of small group reform.
**In PFFS plans, the provider must accept PFFS. 

Understanding Formularies

An open formulary means that all of the drugs on the formulary are covered, although the plan pays a varying share of the costs for generic drugs, preferred brand drugs and non-preferred brand drugs. 

A closed formulary requires you to use only those medications that are designated as covered under the insurer’s preferred drug list.  If your brand drug is not covered on the closed formulary, you can speak to your doctor about switching to a drug that is on the preferred drug list.  Or your doctor may obtain a medical exception from the insurer for the drug to be covered.  If you decide to continue taking medications not covered on the closed formulary without obtaining a medical exception, you will pay the full cost, and these expenses do not count toward the plan’s deductible or out-of-pocket limits. 

Both open and closed formularies generally have higher cost-sharing for brand drugs than for generic drugs.  All formularies are not alike.  Each insurer constructs its own Medicare-approved formulary

View Aetna’s open formulary
View Aetna’s closed formulary

Optional Dental

Emeriti’s optional dental coverage can be added to any of the plan combinations. 
Please note: you cannot elect dental coverage as a stand-alone.

The Emeriti Reimbursement Benefit is a very flexible, tax-favored tool for managing your health care costs in retirement. It enables you to be reimbursed for a wide range of out-of-pocket health expenses that are not paid by insurance, and for premiums for other health insurance outside of the Emeriti Program, like long-term care insurance.

Funds that are in your Emeriti Health Account (contributions from you or from your institution* and any investment earnings) can be withdrawn tax free to reimburse yourself for the following types of qualified medical expenses:

You can utilize the Reimbursement Benefit not only for your own health expenses, but also for those of your spouse (or your dependent domestic partner, if allowed under your institution’s plan); your dependent children; and your dependent relatives, such as parents or siblings who meet the federal definition of dependent, if allowed under your institution’s plan. This benefit can be used throughout your lifetime and until the last of your dependents dies or is no longer in dependent status.

You may want to contribute to your Health Account to utilize the Reimbursement Benefit if you can make contributions sufficiently in advance of payments to take advantage of potential investment gains, which are tax free. You can contribute a minimum of $100 as often as monthly. Note that share price, yield and return will vary on the contributions you make into your Health Account, and you may have a gain or loss when you sell your shares.

* You may meet to meet age and service requirements set by your institution in order to have the right to use the institution’s contributions.

When Do I Become Eligible for the Reimbursement Benefit?

You become eligible when you meet one of the following criteria:

Please Note: QMEs do not include expenses incurred prior to the date you became a Participant in the Emeriti Program.

¹ Retirement Eligibility varies by plan. For more information, see your Plan's Emeriti Summary Plan Description, or call 1-866-EMERITI.

² Reimbursement for qualified medical expenses for dependent relatives and domestic partners is only available if elected by your institution. If you have a non-dependent domestic partner, you cannot use your Emeriti Health Account for reimbursement of qualified medical expenses, or for Emeriti Health Insurance. Insurance premiums must be paid each month via electronic transfer from other assets.

This is general information regarding eligibility; please refer to your institution's Emeriti Summary Plan Description for complete details under your Plan.

What Types of Expenses Qualify?

Qualified Medical Expenses (QMEs) are those expenses defined as “medical care” under Section 213(d) of the Internal Revenue Code that are not covered by insurance, Medicare or another reimbursement plan. This includes amounts paid for:

The Emeriti Health Accounts may be used to reimburse expenses for qualified long-term care services provided to the employee or an eligible dependent (for example, an elderly parent enrolled as a Dependent Relative under the Plan), unless they are otherwise reimbursed by insurance or another reimbursement plan. Long-term care services are qualified if they are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating and rehabilitative services, or "maintenance or personal care services," which are required by a “chronically ill individual” and which are provided pursuant to a plan of care prescribed by a licensed health care practitioner. Expenses incurred at facilities, such as nursing homes, can qualify as long-term care expenses, subject to the relationship requirements discussed below.

The Emeriti Health Accounts may be used to reimburse premiums paid for qualified long-term care insurance. The insurance contract is qualified if:

1. It provides coverage only for qualified long-term care services (discussed above: note that it may provide payments on a per diem or other basis regardless of the actual expenses an insured incurs during the period to which the payments relate).

2. it does not pay or reimburse expenses for services or items provided under Medicare (or that would be provided by Medicare but for application of a deductible or coinsurance amount), except for expenses reimbursable by Medicare only as a secondary payer (and the contract may provide benefits that coordinate with Medicare)

3. it is guaranteed renewable;

4. it does not have a cash surrender value or other financial provision that may be paid, assigned, pledged as collateral for a loan or borrowed by the policyholder; and

5. it provides that all refunds of premiums and all policyholder dividends or similar amounts arising under the contract will be applied either to reduce future premiums or to increase benefits under the contract (except that it may provide a refund when the insured dies or the contract is cancelled).

The IRS imposes a limitation (adjusted annually for inflation) on the amount of long-term care premiums that qualify as medical expenses. Therefore, there is an annual limitation on reimbursement of long-term care premiums that depends upon the age that the covered individual will be by the end of the calendar year.

Age	Limit of Reimbursement
40 or younger	$310
41 to 50	$580
51 to 60	$1,150
61 to 70	$3,080
Older than 70	$3,850

Please Note: The descriptions provided above are not comprehensive and additional restrictions or limitations may apply.

How to Submit a Qualified Medical Expense for Reimbursement

After you have incurred an eligible expense that is not otherwise covered by a medical, dental, vision or other health plan, and which has not been previously reimbursed, you must fill out a QME Claim Form and return it along with the bill documenting the expense to Acclaris Inc. at the address given on the form. You will be reimbursed for eligible expenses out of your Health Account assets. You will need to make sure there are enough funds in your Health Accounts to cover these payments.

Please Note: The fee is waived for the first four submissions of bundled receipts in a calendar year. Thereafter, there is a fee of $6 for each subsequent submission of bundled receipts during the rest of the calendar year. So if you submit your expenses once per quarter, you will have no added cost for the Reimbursement Benefit.

Time Limit for Submission of Qualified Medical Expenses

Once you incur a Qualified Medical Expense, that expense must be submitted for reimbursement within 12 months following the end of the calendar year in which the expense was incurred.

The Emeriti Program provides comprehensive, sustainable retiree health benefits for you and your eligible dependents. There are certain fees associated with the administration of the Program, which differ depending on whether you are an active employee or a retiree.

What types of fees are charged for my Emeriti Health Account while I am an active employee?

As an active employee, you will be charged a Fidelity quarterly recordkeeping fee of $5 to cover participant and dependent enrollment, the processing of contributions to the Health Accounts, participant education and service and other administrative support. There is also a charge of $4 per month by Emeriti for participant education, administration, legal oversight of the Program and administration costs for the Program. Some of these charges may be covered by your institution. Fees payable by you are deducted from assets in the Health Account.

Fees and expenses associated with the Fidelity investment options will also apply.

What types of fees are charged for my Emeriti Health Account when I am retired?

When you start to utilize your Health Account assets for insurance premiums or reimbursement of Qualified Medical Expenses as a retired or terminated employee, you will be charged a Fidelity quarterly participant recordkeeping fee of $18.75. This fee covers the costs of enrolling you and your eligible dependents in Emeriti Health Insurance and the Reimbursement Benefit, processing premium payments and ACH transfers and providing you with participant education and other services. You will also be charged $4 per month by Emeriti for participant education, including newsletters and campus workshops; legal oversight of the Program and administration costs. Some of these charges may be covered by your institution.

There are also charges for submitting your qualified expenses for reimbursement, but this fee is waived for the first four submissions. For the rest of the calendar year, each submission will cost $6. The fee is taken only as claims are submitted and it is in your best interest to bundle your claims to pay a single $6 processing fee for the entire batch.

Fees payable by you are deducted from assets in your Health Account. Fees and expenses associated with the investment options will also apply.

Participants

Emeriti is committed to providing participants with quality products and services, including ongoing education and communication. There are five channels of education and communication available to you, so when you have questions, the information is available.

Emeriti’s Five Channels of Education and Communication

1. The Emeriti Service Center Call toll free at 1-866-EMERITI (1-866-363-7484) (Monday through Friday, 8AM to 9pm ET, 5AM to 6PM PT) for answers to any of your questions about Emeriti, to start or change your voluntary contributions, to change your investment mix and to update your list of eligible dependents.

2. Emeriti website. From the Emeriti website, you can learn more about the Emeriti Program, access Fidelity’s website for up-to-date information about your Health Account via Fidelity NetBenefits® and access Aetna’s website (Aetna Navigator®) for an array of health care information.

3. Newsletters During your working years, newsletters will be sent from Emeriti through your institution. During your retirement years, newsletters will be mailed to you by Emeriti. Typically, newsletters include program updates, related articles and enrollment information.

You can view recent newsletters by clicking here.

4. Campus workshops These annual events are designed to provide details and updates about the Emeriti Program. It is also our opportunity to meet you and answer all your questions.

You can view the presentations from each workshop by clicking here.

5. Regular correspondence You will receive information in the mail from Emeriti, Fidelity and Aetna (or HealthPartners), with important account and insurance information and updates.

For Institutions

Emeriti has navigated through a complex regulatory environment to offer institutions an innovative, outsourced retirement benefit solution, that includes ongoing communications and education. Through annual teleconferences, newsletters, monthly tutorials, and special correspondence, Emeriti provides institutions with updates on products and services, regulatory requirements, and retirement health care issues.

Click here for institution-related communication and education materials.

Brochures for Participants

Newsletters for Participants

Currently employed:

Retiree:

Minnesota residents:

Fidelity Freedom Fund flyer

Aetna Open Drug Formulary

Aetna Closed Drug Formulary

Each fall, Emeriti representatives arrive on member institution campuses to deliver workshops designed to update, educate and inform. Typically, the presentations provide a brief overview of the Program, outline Program and benefit updates, and allow for participant questions. The workshops are about an hour in length. Look for announcements from your institution about when and where these workshops will be held on your campus.

Here, you can review the presentation at your convenience. Just click on the appropriate link below to view the presentation.

Fall campus workshops for participants

Institutional workshop presentations

Institutional teleconference presentations