HSTA Voluntary Employees Beneficiary Association (VEBA) Trust

1. HSTA Voluntary Employees Beneficiary Association (VEBA) Trust VEBA General Information

2. Who and What is the VEBA Trust? • The VEBA Trust was established for active and retired HSTA members and their eligible dependents. • The Board of Trustees is comprised of teachers who are members of HSTA. Trustees represent the various segments of the HSTA population. All Trustees are teachers, with two being retirees.

3. When you are a HSTA member, you can take advantage of these products that are available to you.

4. Highlights of the Voluntary Products • Life Insurance • Basic Life for only $1.50/month with a benefit coverage of $15,000.00 (up to age 65). • Basic Plus Life up to $161,000 coverage. Coverage and premiums is based on age. Life

5. Highlights of the Voluntary Products • Disability Income Protection • Short Term (STIP) • Long Term (LTIP) STIP/LTIP

6. What is the difference between Short and Long Term Income Protection? • The elimination waiting period. • The length of coverage. STIP/LTIP

7. What is STIP? • If you become temporarily disabled, you can receive up to 60% of your monthly salary. Premiums are based on your monthly salary and length of benefit (either 90 or 180 days). • If you depend on your paycheck for your daily living expenses; you should consider short-term income protection plan that will help pay your basic expenses while you are temporarily disabled. STIP

8. How can I take advantage of this offer? • Become an HSTA member • When you sign up for STIP, the Trust will subsidize a portion of the premium. The subsidy is up to $10.00 per month for qualifying members who elect to cover 60% (max coverage) of the monthly gross salary. STIP

9. Premium Calculation • Monthly gross salary: $3,000.00 • Length of coverage: Plan 1 (90 days) • Selected monthly disability benefit: 60% (maximum %) of monthly gross salary or $1800.00 per month. $25.56 Per Month or $12.78 Per Paycheck STIP

10. The VEBA Trust subsidy Monthly Premium: $25.56 Less the subsidy: ( 10.00)* You pay only: $15.56 per month for STIP coverage. *The HSTA VEBA Trust will subsidize up to $10.00 per month for qualifying members who elect to cover the maximum % of the monthly gross salary. STIP

11. What is LTIP? • If you become totally disabled, you can replace up to 50%, 60%, or 66-2/3% of your monthly salary. Premiums are based on your monthly salary, age, and elimination period (either 6 or 9 months). LTIP

12. For Example: Hoku is a 32 year old teacher who gets into an automobile accident which leaves him totally disabled. He has 140 days sick leave; enough days to cover a 6-month period. His disability continues beyond the 6 months. If Hoku enrolled in LTIP, he may be covered for those additional months if he continues to be under doctor’s care. LTIP

13. Premium Calculation • Monthly gross salary: $4,000.00 • Elimination Period: Plan 1 (6 months) • Age: 32 • Selected monthly disability benefit: 66-2/3% (maximum %) of monthly gross salary. $11.60 Per Month or $5.80 Per Paycheck LTIP

14. Highlights of the Voluntary Products • Critical Illness Insurance Provides coverage for specific critical illnesses and helps offset expenses not reimbursed by other types of insurance. It is not a replacement for traditional medical or disability insurance – rather it is a complement to these other coverages. CII

15. Critical Illness Insurance Health Screening Benefit • After your coverage has been in effect for 30 days, MetLife will provide an annual benefit of $50 (for $15,000.00 of coverage) or $100 (for $30,000.00 of coverage) per calendar year for taking one of the eligible screening/prevention measures. CII

16. Highlights of the Voluntary Products • Long Term Care Insurance (LTC) LTC can help you preserve your independence and financial security, and can help relieve your family members of the burden of making decisions about how to pay for care. LTC

17. Reverse mortgage • Annuity • LTC insurance • Etc. Savings Buffer = Asset Protection Asset Protection SavingsBuffer RetirementSavings Funds needed fora LTC event. LTC

18. Your Long Term Care (LTC) monthly premium is based on the following: • Plan Type • Monthly Facility Benefit Amount • Facility Benefit Duration • Your age at the time of enrollment LTC

19. Plan Types Base Plan LTC

20. Plan Types (continue) Most Popular LTC

21. LTC Calculation Example: Current Age: 29 Plan: 5 Monthly Facility Benefit Amount: $5,000.00 Facility Benefit Duration: 3 years Formula: Rate for plan chosen x Facility Monthly Benefit Amount /500 = Monthly Premium $2.65 x $5,000.00/500 = 13,250/500 = $26.50 per month or $13.25 per paycheck LTC

22. How much do you think that same coverage would cost if you enrolled when you are 30 years older? LTC

23. Calculation Comparison Formula: Rate for plan chosen x Facility Monthly Benefit Amount /500 = Monthly Premium Age 29, Rate $2.65, Facility Month Benefit $5,000 Monthly Premium is $26.50 Formula: Rate for plan chosen x Facility Monthly Benefit Amount /500 = Monthly Premium Age 59, Rate $9.70, Facility Month Benefit $5,000 Monthly Premium is $97.00 You would pay 3x more if you wait. LTC

24. Summary If you enroll in Basic Life, or Basic Plus Life Insurance, or Short or Long Term Income Protection, or Critical Illness, the HSTA VEBA Trust will enroll you in the LTC Base Plan at no additional cost to you. The VEBA Trust subsidizes the LTC Base Plan for you. The most affordable option is to enroll in the Basic Life Insurance plan for $1.50 per month or $.75 per paycheck, and receive both the Basic Life Insurance and LTC Base Plan.

25. HSTA VEBA Trust Contact Information Office Hours: 8 a.m. to 5 p.m. Monday thru Friday Phone: 440-6940 (Oahu) Neighbor Islands Toll Free: 1-800-637-4926 Fax: 440-6941 Email: vebatrust@hawaii.rr.com Website: www.hstaveba.org Address: 1259 A’ala Street, Suite 202 Honolulu, Hawaii 96817