BURBA INSURANCE SERVICES

CLAUDE BURBA, CLU – BRADY BARHAM

Phone: 575-627-6175 /

Website: www.burbainsurance.com

Cell: 575-937-5494 /

Email:

Fax: 575-258-2503

/
Toll Free: 800-894-9990

ROSWELL INDEPENDENT SCHOOL DISTRICT

Employee Benefit Summary

Plan Year………………………..March 1, 2011 through February 28, 2012

Fee to Participate……………………………..None

MENU OF ELIGIBLE SECTION 125 BENEFITS

* Health * Cancer * Unreimbursed Medical

* Dental * Heart & Stroke FSA Expenses

* Disability * Supplemental * Dependent–Elder Care

* Vision Medical FSA Expenses

REQUIREMENTS OF THE PLAN

Per the IRS, sheltered benefits cannot be dropped, changed, nor added during the plan year unless you experience

one of the following events:

A change in status: Legal marital status, Number of tax dependents, Employment status or that

of your spouse/dependent, Residence change that affect eligibility, Change in

dependent satisfying/ceasing to satisfy eligibility requirements.

A significant increase in the cost of coverages: A significant cost increase (does not apply to dollars

set aside for Unreimbursed Medical), Significant curtailment of coverage,

addition/elimination of a benefit package option, Change in coverage of spouse/

dependent under another employer’s plan.

Should one of these events occur, changes in benefits should be made within 31 days of the occurrence. All full time employees must annually sign a form to either participate in or decline the plan during the enrollment period.

HOW THE PLAN WORKS

·  Roswell ISD offers this plan to provide their employees with a way to save money on the premiums they pay for benefits. Burba Insurance Services has been chosen by the district to implement the plan.

·  The “Cafeteria Plan” refers to Section 125 of the Internal Revenue Code.

·  This plan allows employees to shelter qualified benefits from taxation. All benefits sheltered are subtracted

from your monthly salary before taxes are calculated. The effects of this are:

-  You pay no taxes on the eligible premiums, and

-  Your annual taxable income is reduced

·  Participation in the plan is voluntary.

·  Enrollment in the plan can only occur: During the annual enrollment period, when hired, or the above IRS

guidelines.

·  Although participation does not effect your Teacher Retirement, it can effect your Social Security and the

way you file your income taxes. If you participate, you cannot deduct medical premiums nor can you take

the medical dependent tax credit that is available to some employees.

Optional Benefits Available on Payroll (** Deducted Pre-taxed)

**UNREIMBURSED MEDICAL/ DEPENDENT – ELDER CARE REIMBURSEMENT ACCOUNTS

·  Section 125 of the IRS Code provides participants the option to shelter up to a specified amount of money each plan year to cover your out of pocket cost for medical, dental, vision and prescription expenses, some over the counter drug cost and dependent/elder care cost incurred by you and your family that are not covered by your insurance programs.

·  The money sheltered is deducted from your paycheck before taxes are calculated. This means that you do not pay taxes on this money as it comes out of your check and your W2 reportable income is reduced by that amount.

·  When you incur any of these cost, you submit a personalized voucher, copies of your bills that give the date, the name of the service provider, the reason you incurred a cost (i.e. co-pay, deductible) and the amount you are responsible for paying. Normally your EOB (Explanation of Benefits) mailed to you from your medical insurance company provides all this information. Once expenses are approved you’ll be reimbursed for the submitted amount by check or automatic deposit in your checking account. Checks are cut daily; however you can request reimbursement of your funds weekly, monthly, quarterly or annually.

·  You can file claims and check the status of your accounts on-line, as well as download and print necessary forms.

**SUPPLEMENTAL MEDICAL INSURANCE

·  Benefits available for employees and their families that are covered through Roswell Independent School District Health Insurance.

·  Provides a benefit toward the out of pocket cost from In-Patient (In-Hospital 18 continuous hours) Services.

**CANCER AND SPECIFIED DISEASE INSURANCE

·  Individual and family benefits are available. Covers unmarried children to age 19 or to age 25 if unmarried full-time students.

·  Pays cash benefits directly to you. Pays in addition to your health insurance. Also pays lump sum cash benefit at time of diagnosis. Benefits should not be assigned to a doctor or hospital.

·  Covers many of the expenses not covered by your health insurance. American Cancer Society’s Cancer Facts & Figures for 2003, indicate direct medical cost represents approx 35% of the actual cost of cancer treatment

·  Plan can include an Intensive Care Rider that pays in addition to your health insurance for you and/or your family to offset the high cost of intensive care services i.e. heart attack, stroke, automobile accident, etc.

·  You can maintain your policy at the same rate should you leave the school district.

TERM LIFE INSURANCE (Program in addition to your annual salary life & $50,000 school paid)

·  Employees hired since last enrollment are guaranteed up to $150,000 with no health questions. Spouses conditionally guaranteed

up to $25,000 – can be insured up to $50,000. Unmarried Dependents are guaranteed up to $10,000. Spouse & dependent

coverage cannot exceed 50% of employee’s coverage.

·  All employees can select from $10,000 to $300,000 with proof of insurability. (Coverage cannot exceed 5 times your annual salary). Spouses can select up to $50,000 with proof of insurability. Unmarried Dependents can select up to $10,000. Spouses and

·  dependent coverage cannot exceed 50% of employee’s coverage.

·  Living benefit allows you to receive up to 50% of your covered amount if diagnosed with a terminal illness. (Maximum of $100,000)

·  Continuation of coverage at your group rate if your employment terminates or you become ineligible.

·  Option to convert all or any of this protection to a permanent policy within 30 days of leaving the district without answering any

health questions. Your rate is determined by your age at the time of conversion.

PERMANENT LIFE INSURANCE

·  Coverage for Employee, Spouse, Children and Grand Children.

·  Express issue the first year of availability (3 questions).

·  Portable when you leave employment at the same rate.

·  Accelerated Death Benefit Due to Terminal Illness Rider (Limitations and conditions apply).

·  Rates based on age policy is issued.

**ACCIDENTAL DEATH & DISMEMBERMENT

·  Benefits from $100,000 to $500,000 or 10 times your annual Salary. Benefits available for employee only or employee and family.

403(b) VS. 457 RETIREMENT PLANS

You can participate in both

403(b) 457

* Reduces current taxable income. * Reduces current taxable income.

* Provides for tax deferred compounding. * Provides for tax deferred compounding.

* Can take distributions at age 59 ½ if still working * Cannot take distributions until separated from service

* Loans available, but should be repaid. * Some programs allow loans.

* 10% penalty tax on distributions made prior to age 59 1/2 * Distributions are not subject to 10% premature penalty at

any age

* Dollars can be transferred to state retirement to * Dollars can be transferred to state retirement to purchase t

purchase past service credit. past service credit.

* Maximum annual pre-tax contribution for 2011 is $16,500 * Maximum annual pre-tax contribution for 2011 is $16,500

* Employees age 50 or older can contribute an add’l $5,500 * Employees age 50 or older can contribute an addt’l $5,500

Contributions can be made on and off during your entire working career. Multiple investment choices are available: Managed accounts,

mutual funds, variable annuities and fixed annuities .Most programs allow loans. Employees are allowed to increase and/or decrease

contributions throughout the year. At the time of distribution, taxes are charged only on the amount you receive during a calendar year.

Securities Offered through Legend Equities Corporation, Member FINRA/SIPC

11 Stephens Circle, Roswell, NM 88201 (575) 627-6175

Burba Insurance Services is not affiliated with Legend Equities Corporation