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weabenefits.com

2013 SPRING

Do you neeD a $ Planner?

your insuranceWhat’s the big deal about trampolines?

your educationGet your Roadmap to $ucce$$

your kioskGift giving 529 style}

your$™A magazine from WEA Trust Member Benefits

$

president’s letterDave Kijek, President/CEO, WEA Trust Member Benefits{

2 weabenefits.com

© 2013 WEA Member Benefit Trust.All rights reserved.

Who can you trust?

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Follow us.

3 YOUR ACCOUNT- Make it easy to process your IRA

contributions.- Avoid an inactive account fee.- Changing banks? Let us know.

4 YOUR MONEY- Who needs a financial planner and

how to find someone you can trust.

6 YOUR INSURANCE- Don’t get bounced if you own a

trampoline.

8 YOUR SUCCE$$- Create your road map to financial

security with summer seminars.

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your$CONTENTS SPRING 2013

{

10 YOUR KIOSK- Long-term care insurance rates

for women are expected to rise very soon.

- Rental Reimbursement Coverage: You should buy it.

- A 529 college savings account makes the perfect gift.

™

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It’s easy to get distracted by the pressures of the day and lose track of where you are and where you’re going financially. The idea of handing off investment decisions and long-term financial planning to someone else is appealing, but

it’s no small decision. After all that we’ve experienced economically in recent years, every one of us should have our guard up and enter into financial relationships cautiously. There’s too much at stake.

Finding someone you can trust—

someone who puts your best interests first—can be tricky. The article on page four can help you determine what kind of help you need and offers critical questions for you to ask before entering into an agreement.

In your search for financial planning services, look to us. We offer four different services designed to help you at every stage of life. And, when you ask us the critical questions, you’ll like what you hear.

No other organization or independent broker can match our commitment to Wisconsin public school employees. Member Benefits was created and designed to be a trusted resource and financial partner for those we serve.

It’s unfortunate when a participant leaves our 403(b) or IRA program on the recommendation of someone who does not put their interests first. We hear too often that the new arrangement isn’t as advertised. They frequently pay higher fees and are locked into a product that isn’t a good fit because of a surrender period. These are difficult conversations to have after the fact when there’s little we can do to help.

Our staff is knowledgeable about products offered by other providers. We will give you an objective assessment because, for us, your financial security comes first.

You can trust us.

weabenefits.com

{ your account

IRA and 403(b) NewsFilling out an IRA contribution form is easy

Our IRA contribution form provides us with three key pieces of information that helps us process your contribution in a timely manner.

1. Social Security number associated with the account.

2. Type of IRA account (Roth or Traditional). Many participants have both.

3. Tax year you wish to apply the contribution to. This is especially important between January 1 and April 15 when you can apply contributions to the prior or new tax year.

Without these instructions, there may be a delay in processing. Additionally, the form tells you where to send your contribution. Using the wrong P.O. box, for instance sending it to WEA Trust health insurance, can cause further delays.

It’s easy. Search for “IRA contribution form” at weabenefits.com and print it off or give us a call and we will send you a form.

Avoid inactive account minimum annual feeThere is a minimum annual fee of $25 for an inactive WEAC IRA and/or

WEA TSA Trust 403(b) account with balances less than $5,556 (IRA) or $7,143 (403(b)). Inactive accounts are accounts with no contributions or distributions within a calendar year. You can avoid the fee by making a single contribution or by taking a distribution (if eligible) at any time during the calendar year. Also consolidating other accounts into your WEAC IRA and/or WEA TSA Trust 403(b) account could help reduce the amount of fees you are paying. Give us a call at 1-800-279-4030 to review your account.

Did you change where you bank?Make sure your electronic contributions to your WEAC IRA and/or personal

insurance continue without interruption by notifying us if you have changed where you bank or if your account information has changed.

IRA 5498 forms on their wayForm 5498 is an informational tax form that IRA holders receive at the end of

May if a contribution was made for 2012 or if there was an account balance as of December 31, 2012. A contribution is defined as Traditional and/or Roth IRA contributions made between January 1, 2012, and April 15, 2013, for 2012 tax year and rollovers, conversions (Traditional to Roth), and recharacterizations.

Privacy notice enclosed with your statementProtection of your nonpublic personal financial information is very

important to us. Enclosed with your 403(b) or IRA statement this quarter is a copy of the WEA TSA Trust privacy policy. Please read it carefully.

The Trustee for the WEAC IRA program is First Business Trust & Investments. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA.

Content in this magazine is for informational purposes only and not intended to be legal or tax advice. Consult your tax advisor or attorney before taking any action.

Need flood insurance?You can check into purchasing flood insurance by visiting fema.gov to see if your community participates in the National Flood Insurance Program (NFIP).

All future correspondence should be mailed to

P.O. Box 7893 instead of 7338.

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Melting snow + spring showers = potential for water damage

Homeowners insurance policies have very limited coverage for water damage. Flooding generally is not a covered loss, but water damage due to drain and sewer backup or sump pump overflow may be covered if you’ve added an endorsement to your policy.

Sewer backup occurs when the city or municipal drainage system overflows and sends water back through the pipes and into your home. A common cause is large quantities of water from rainfall or snow melt overwhelming the system. Backups can also result from a failure on the part of a sump pump or other system designed to deal with excess water. The water and sewage can come from various sources, including a septic tank, sewer, or storm drain and can cause a great deal of damage.

Are you covered?A surprising number of homeowners

are not aware that sewer backup coverage is not a standard part of a homeowners insurance policy. Don’t wait until your home is filled with sewer water to learn if you have this coverage. Look at your policy or contact your insurance company. If the coverage is included at the inception date of the policy, the coverage begins on that date. However, if it’s added to or increased on an existing policy, there is generally a 30-day waiting period.

Take steps to avoid the mess

• Put in and maintain a sump pump.• Install backflow valves where needed.• Create good drainage outside. Slopes

should move away from your house.• Have plugs near drains and toilets.• Keep your gutters and downspouts

clear.Underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.

weabenefits.com4

What exactly do you do?Because the term financial planner is

fairly ambiguous, ask directly what they do, who their typical clients are, and what their area of expertise is. Do this before you get into details about your financial situation and perceived needs. Listen for clues that would indicate they are a good fit. Be sure the planner has experience helping people with backgrounds similar to yours. “For Wisconsin public school employees, it is important to work with someone who has a thorough understanding of 403(b) savings accounts and the Wisconsin Retirement System,” advises Brenda Echeverria, financial planner at Member Benefits. “Nearly two thirds of your retirement income will likely come from these two sources, so it’s vital they have a thorough understanding.”

Are you a fiduciary?This fancy word means the financial

planner has made a commitment to work in the client’s best interests at all times and puts YOUR needs before THEIR needs. These individuals adhere to the highest standard of fiduciary and can NOT combine product sales with advice giving. They must also disclose how they are compensated and any corresponding conflicts of interest.

Be aware that there is another standard of fiduciary care called the “suitability” standard that applies to brokers and insurance agents who can sell financial products such as mutual funds and

The question “Do I need a financial planner?” is one that many Wisconsin public school employees are asking as changes to salary and employee benefits take

effect. Concerns about where they stand today, how the changes will impact their future plans, and what adjustments are necessary to stay on track are weighing on their minds. Furthermore, the task of finding someone to give you sound advice—someone you can trust with your financial future—can be daunting when we are still healing mentally and financially from the costly shenanigans of Wall Street investment brokers and banks too big to fail.

Do I need help?The fact that you asked the question

probably means that you need some help, but it doesn’t necessarily mean you have to hire a financial planner. A little self-assessment can go a long way, so start by answering these questions. What exactly do you need help with? Are you looking for a comprehensive financial plan? Assistance with investments? Estate planning? Make a list of the reasons you think you need financial assistance along with what you would expect to get from a planner.

Also consider where you are in your financial life and the complexity of your financial situation.

How to find the right helpBasically, anyone can claim to be a

financial planner. They may also refer to themselves as a financial advisor, investment broker, or insurance agent. Frankly, it’s not that important what they call themselves. What is important is that the person you hire knows what he or she is talking about and has the training and expertise to fit your needs. Here are questions you need to ask.

What are your credentials? Pay attention to the alphabet soup of

designations that are often listed after a planner’s name. For instance, a CFP after the name means the individual is credentialed by the Certified Financial Planner Board of Standards—a good indicator of a high level of financial education as well as a commitment to ethics. But, don’t take these at face value. Invest a few minutes to check their background or credentials with state or federal regulators up front. This essential step could save you time, money, and other troubles down the road. It’s easy to do and free with FINRA BrokerCheck. Just google it.

{ your money

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Do I need the help of a financial professional?

How do I find someone I can trust?

What will it cost?

You might need professional help or you might be a DIY’er. Here are guidelines for gauging your need and picking a planner.

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Do you neeD a $ Planner?

5weabenefits.com

variable annuities. This lower standard of care means they can benefit more from product sales than the client—as long as their products are very broadly considered to be “suitable” to sell. Buyer beware!

Ask any prospective financial planner whether he or she is a fiduciary and get it in writing.

How do you get paid and what will it cost me?How the planner gets paid matters because it’s probably the most important

thing determining the quality of advice you receive. And, remember that paying more doesn’t mean you’re getting more. Financial planners can be compensated in a number of ways. Here are the three most common payment structures.

Commission: When a planner works on commission, it means that every time you purchase a particular financial product, they make money. Be aware that when the sale of products is tied to the planner’s paycheck, their objectivity may be compromised.

Flat Fee: Some planners charge a flat hourly rate or a flat fee for services, such as putting together a comprehensive financial plan. The risk that there is a conflict of interest is low because they get paid whether you purchase any investments or not.

Fee Based on Assets: Other planners charge an annual fee that is based on a percentage of the assets you have invested with them. This gives them reason to keep your asset balance high, but may prevent

Those early in their careers (20s–30s) probably do not need to hire a financial advisor, at least not as a first step, according to Brenda Echeverria, financial planner at

Member Benefits. “I’m a big fan of doing a lot yourself

because the more you empower yourself with knowledge and understanding, the better your financial decisions will be, with or without a planner,” she says.

For those just starting out, Echeverria suggests, their time is better spent learning on their own first. “All Wisconsin public school employees need to understand the Wisconsin Retirement System (WRS), what a 403(b) is and how it works, and why fees associated with financial products matter a lot.”

Understanding these three things is fundamental regardless of your age or financial situation and are prerequisites to employing a financial planner.

What you need when you are…

Just starting20s–30s

in the Middle30s–50

Close to retireMent

50 + within 10 years

of retiring

Managing money doesn’t get easier with age. You may be making more money, but there are more financial pressures. Beyond basic expenses there

may be college-age kids or aging parents who need financial help. It can be a lot to balance at a time when retirement savings should take on more importance.

“Very often those in mid-career—late 30s to early 50s—don’t know what they have. They know they have something. They set it up years ago, but they haven’t kept track. Life got busy and they paid little attention to long-term financial planning,” Echeverria says.

This is the time to get reacquainted with your retirement savings accounts. Are your investments still appropriate for your age? Do you need to rebalance? What fees are you paying?

You should also be saving as much as you can and working toward maxing out your retirement contributions.

Generally, the closer you get to retirement, the more complex your finances become. And, it’s last call for bulking up your savings. This is also a time when

you are most vulnerable. Decisions you make at this stage can change the course of your financial future. Some actions may be irreversible. Proceed with caution.

Don’t be flattered by the multitude of invitations you receive for free advice or a “no obligation” free steak dinner that is often a thinly disguised sales pitch for a CD, annuity, or proprietary investment. Pre-retirees (and retirees) are targeted because typically they have accounts with higher balances. “A broker will make between 5–8% commission off the top when someone moves their money. That’s $7,500 for a broker moving a $150,000 account. You may not see it if the commission is paid by the company to the broker, but the company WILL get it back by charging other fees. I know because I worked in that world for a few years,” says Echeverria.

start somethingStudy up on WRS and 403(b) accounts.

Schedule a free consultation with Member Benefits.

Open a 403(b) or IRA with the help of our enrollment specialists.

Attend free seminars (see page eight).

re-evaluate your planReview your allocations and adjust as needed.

Rebalance once a year to stay on track.

Increase your 403(b) contributions.

Consider a Portfolio Investment Analysis with Member Benefits (flat fee).

prepare for transitionCalculate how much money you need to retire.

Estimate retirement benefits (WRS, Social Security, and 403(b)/IRA).

Identify any shortfall and create a plan to fill the gap.

Consider a Retirement Income Analysis with Member Benefits (flat fee).

get it rightsaVe MorePaY YourselF First

continued on page 9

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All investment advisory services are offered through WEA Financial Advisors, Inc.

weabenefits.com6

Summer’s coming, temperatures are rising, the sun is out…time to look forward to more outdoor activities. Chances are you have some outdoor toys you’re looking forward to using. But if your plans for summer fun include using a backyard trampoline, make sure you know the risks and realities that come with it. Here’s what you need to consider.

Accidents happenThere is a surprising amount of power

that can be generated from jumping on a trampoline—children can bounce up to 30 feet, according to the Consumer Product Safety Commission (CPSC). The CPSC estimates that in 2011 there were 83,300 hospital emergency room-treated injuries associated with trampolines.

Injuries are commonly caused by:• Colliding with another person on the

trampoline.• Landing improperly while jumping or

doing stunts on the trampoline.• Falling or jumping off the trampoline.

Trampolines: Worth the risk?Know the ups and downs of owning one

• Falling on the trampoline springs or frame.Head and neck injuries account for

10–17% of all trampoline-related injuries. These often happen with falls and failed somersaults or flips and can be the most catastrophic of all trampoline injuries suffered.

An “attractive nuisance”You may think of trampolines as just a

fun way for the family to get some exercise. But from an insurance perspective, they’re considered an attractive nuisance—something that is likely to entice children and could pose a risk of injury. Other examples include swimming pools, discarded appliances, and abandoned cars.

As the owner of the trampoline, you have the burden of taking adequate measures to protect children. Even if someone comes over and uses the trampoline without your knowledge, you may be liable for any potential injury they may suffer from it.

{ your insurance

Will insurance cover you?If you have a trampoline or are

considering purchasing one, talk to your insurer about your homeowners policy coverage. Typically, insurance companies handle them in one of four ways:• No exclusions. The insurance company

doesn’t place any restrictions on trampoline ownership or usage in accordance with your homeowners policy.

• Coverage with safety precautions. An insurance company may include coverage if you have pads to cover the trampoline springs, a net enclosure for the sides, and/or other safety precautions.

• A trampoline exclusion. Many insurance companies consider trampolines to be too hazardous to insure. This means no matter who gets injured on the trampoline or how they get injured, the insurance company will not cover those claims.

7

Swimming pools. Most insurance companies, like Member Benefits, require a pool to be 4 feet from the ground to the top of the pool in order to be covered. For an inground pool, the yard must be fenced. You may want to increase your liability coverage through a personal umbrella policy if you have a pool.

Recreational vehicles. You may be able to get more coverage for less cost if you purchase a policy designed for your specific vehicle (motorcycle, moped, all-terrain vehicle, camper, boat, jet ski) instead of adding an endorsement to your auto or home policy. Ask your insurer about the difference.

Swing sets, tree houses, and forts. Be sure to inform your insurer when you install backyard items for your kids. Consider a personal umbrella policy for these items.

• Refusal to insure the home. Some companies will not write a homeowners policy if there is a trampoline on the premises.Since trampolines represent a higher

risk of liability, you may want to consider purchasing personal umbrella insurance. This may extend your liability protection beyond your existing homeowners policy limit.

However, don’t just assume that because you have one or both of these policies that you are covered. Under some circumstances, you may not be. Contact your insurer so you understand your policy guidelines.

Considerations for rentersYour landlord has the obligation to

keep the property reasonably safe for tenants. Since trampolines are considered an attractive nuisance, he or she may risk liability costs for allowing one. Check your rental agreement or speak with your landlord to find out whether or not a trampoline is allowed on the property.

If you decide to take the leapIf you must have a trampoline, put

safety first. Take these steps recommended by the CPSC to reduce the risk of injury:• Allow only one person on the trampoline

at a time.

• Do not attempt or allow somersaults because landing on the head or neck can cause paralysis.

• Do not use the trampoline without shock-absorbing pads that completely cover its springs, hooks, and frame.

• Place the trampoline away from structures, trees, and other play areas.

• No child under 6 years of age should use a full-size trampoline. Do not use a ladder with the trampoline because it can provide unsupervised access to small children.

• Supervise children at all times.• Trampoline enclosures may help prevent

injuries from falls.Regardless of the precautions put in

place, the American Academy of Pediatrics strongly discourages the home use of trampolines. Their research shows many injuries occur even with reported adult supervision. Although trampoline injury rates have been decreasing somewhat in recent years, their 2012 study concluded that current safety measures have not significantly reduced the risk involved.

The decision to purchase or keep a trampoline comes down to risk versus reward. While they may seem appealing as a fun summer activity, know the safety risks as well as the legal and financial risks to you and ask yourself: Are they worth it?

The toys of summer

NEW CAR GUARANTEE

GUARANTEED REPlACEMENT COST

IDENTITY THEFT COvERAGE (INClUDED)

TREE REMOvAl DUE TO WINDSTORM

REPlACEMENT lOCKS

ClAIM SERvICE GUARANTEE (No wonder we have 98% customer satisfaction.)

PlUS, WE HAvE 15 DISCOUNTS

Compare before you renewNOT All INSURANCE POlICIES ARE THE SAME.

Ours Theirs??????

?Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.

Call 1-800-279-4010

Get a comparison quote weabenefits.com/getaquote

Register for a personal phone consultation weabenefits.com/seminars

weabenefits.com8

Info and registration at weabenefits.com/roadmap

or 1-800-279-4030, Ext. 8563Seminars are free to attend; however, if you choose to invest in the WEA Tax Sheltered Annuity Trust or WEAC IRA program, fees will apply. Consider all expenses prior to investing.

Long-term care (LTC) insurance products are underwritten by multiple LTC insurers.

Your Road Map to $ucce$$2013 Summer Seminar Series

Your Road Map to

Appleton Brookfield Fond du Lac

Green BayJanesvilleKenosha

La CrosseMadisonMcFarland

MenomonieMilwaukeeMosinee

PlattevilleRacineRhinelander

Rice LakeSheboygan

July 9 through August 8 • At these locations!

Act 10

Kid's CollegeOpen 403(b)

FinancialSeminars

Increasecontributions

Where are you today. . . financially?

How do changes to employee benefits impact you now and later?

Where do you go from here? Create

budget

FIRST STOP (10:00 a.m.)

Award-Winning Don’t Be Jack ™ GameTake a trip around the game board with Jack and Jill and learn how to avoid financial potholes and derailments while preparing for the next leg of your journey.

LAYOVER (11:30 a.m.)LUNCH & LEARN

Understanding Long-Term Care InsuranceOften called “the greatest uninsured financial risk today,” the need for long-term care services can put your finances on a serious detour. Get the scoop on LTCi and enjoy a free lunch.

FINAL STOP (1:00 p.m.)

Back on Track for a Secure Retirement We’ll address questions and concerns about retirement benefits in today’s environment and map out what you should be doing at various stages of your career to ensure a comfortable retirement.

FINAL STOPFIRST STOP LAYOVER

weabenefits.com 9

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Rice LakeSheboygan

{ WANT MORE?brokercheck.finra.orgsec.govnapfa.orgweabenefits.com/fps

Ken Seemann retired early. Right on schedule.

After 33 years as a Physical Education teacher in the Waukesha School District, Ken Seemann retired at age 55. Right on schedule. “I loved working with kids, but I have a lot of interests and hobbies, and I always wanted to be able retire at 55 so I could do some of the things I enjoy.”

The key, he says, is self-discipline and a commitment to save for the future. Ken shares his best advice, lessons learned, and resources that helped him make it happen.

Pay yourself first…right away“If you start early, you don’t have to

run as fast later on.” From his very first paycheck, Ken started putting money into a 403(b) on the advice of an older friend and colleague. “He said ‘no matter what you do, pay yourself first.’ He gave me a little pamphlet to keep with me as a reminder. I still have it.”

Choose to increase contributions Through the years Ken faithfully

increased his 403(b) contributions until he was maxing out. “I made a choice early on. Instead of spending money on new cars and such, I put it into savings.”

Do what you can yourself“I did some reading about the financial

industry early on and I had a skepticism about financial planners who took a cut or represented a specific family of funds. I also read that three-quarters of actively managed accounts don’t do any better than the market anyway.” So, Ken relied on his own research. “I paid close attention to fees and socked away as much as I could.”

If you need help, choose wiselySeveral times over the years, Ken did

work with a financial professional. “One time I thought I wanted to invest in individual stocks. Another time, I worked with a planner that I considered a friend first.”

Both times, Ken found that he wasn’t comfortable with the arrangement. “It became clear that they had a different agenda than I did. Our goals were not aligned,” he said.

“The situation with my friend was tough. Even though I didn’t think she would harm me directly, I felt I was paying her rent and paying more than I needed to. I confused friendship with trust.”

Find the right fitWhen Ken turned 53 (two years ago), he

started to wonder if he could do it. “I had saved like mad, but I didn’t know if I could retire at 55 or how to make the transition. That’s when I sought out help from Member Benefits.” Ken took advantage of the Retirement Income Analysis service, a comprehensive financial planning service designed to help Wisconsin public school employees determine their readiness for retirement and create a game plan for making important retirement decisions.

“It was a very good experience. I knew Michelle (the planner) understood the concerns and issues of educators, and she wasn’t associated with a particular family of funds. I felt like her financial agenda and mine were not clashing. She was coming from a place that I could have some faith in. It was exactly what I needed.”

Ken had a 403(b) with another company and moved it to a WEA TSA Trust account because “the fees are lower and I like the close to home nature of the organization. It operates as a not-for-profit and I agree with their philosophy. Plus, Michelle didn’t have much to criticize about what I was doing. I guess I did okay—slow and steady.”

Read more of Ken’s story at weabenefits.com/yourstory.

them from making the best financial decision for you. For instance, they may advise you to roll over a 403(b) or other retirement account even when the existing account has equivalent and less costly options.

While these are three common fee structures, some planners will use a combination of these. Ask for a written agreement detailing total compensation and services provided. Then, ask if there are any other fees that you will be paying. “There may be fees that go directly to the company offering the product and not to the person you are working with,” warns Echeverria. It is up to you to understand how they are compensated and whether that fits your goals and budget.

Getting it rightWhether you are just getting started or

have already settled into retirement, the decision to work with a financial planner should be made with care. A good planner can help you set realistic goals and develop a plan to achieve those goals, analyze your investments, and make recommendations that are appropriate for you. But, before you hand over control of your financial future to anyone, make sure you know who you are working with, whether they are held to a fiduciary standard that puts your needs ahead of theirs, and what their services will cost. Do the homework. You have too much at stake.

Even if you don’t need an ongoing relationship with a financial planner or investment adviser, there are times when you have financial questions or just want someone you trust to assure you that you’re on the right track. For Wisconsin public school employees, the solution may be as close as their workplace. Member Benefits has staff dedicated to every school district in the state, and we are also just a phone call away. Our experienced staff are always here to help you.

Rates for new LTCi applications for women are expected to increase about 40% as women account for more and higher claims than men.

Some long-term care insurers have begun to file new policies with gender-based pricing with the Wisconsin Department of Insurance and expect to start implementing new rates this spring.

Women live longerAccording to a November 23, 2012,

article in the Wall Street Journal, women “are paid two out of every three benefit dollars from long-term care insurance, in part because they live longer and often have no caregivers at home.”

While long-term care remains a concern for men, there is a greater risk for women. Industry experts expect rates for women to be about 40% higher than rates for men. Fortunately, the rate increases are expected to apply only to new, not existing, policies.

Age and health also impact eligibility and rates

Long-term care insurance pays for extended care needs following an accident, illness, or frailty that often results from

normal aging. It provides coverage for quality long-term care services (including home health care) that may be needed at any time of life—services that are not covered by health insurance or Medicare.

Because age and health issues may make you ineligible for coverage, and will likely increase the cost, many members start long-term care planning in their 40s and 50s.

learn about your options We offer on-site educational seminars

at UniServ offices and other venues throughout the state, plus online group seminars where you can participate from the comfort of your own home. For more information and to register, go to weabenefits.com/calendar.

You may also make a personal phone or online appointment with our long-term care specialists seven days a week from 8 a.m. to 8 p.m. Call us today to ensure that you get the most complete protection at the lowest cost available. To schedule an appointment, call 888-247-5905 or visit our Web site, wealtc.membersplan.org.

LTC insurance products are underwritten by multiple LTC providers. Program administered by LTCi Marketing Administrators (LiMA).

Bob Manor, Claims Manager

Why you need Rental Reimbursement Coverage.

“Just 8 cents a day and we’ll even set up the rental.”

In my rather lengthy career in claims, I hear one question over and over again: “Am I covered for a rental car?” Too often my answer is, “No, I’m sorry, you don’t have that coverage.”

These calls come in after someone has been involved in an accident and is without transportation. With our busy lifestyles and reliance on our vehicles, this can be a major inconvenience. Imagine if you were in an accident that put your car out of commission. What would you do? Would you borrow a car? Rely on public transportation? Call a friend or family member for a ride? What if you didn’t have any alternatives and your only option was to rent a car? Depending on the extent of the damage, you could be facing a month of scrambling for a ride or paying out-of-pocket for a rental vehicle.

If you own a mid-sized SUV or mini-van, it’ll cost you about $50 per day to rent a similar vehicle while yours is in the shop. If your car takes two weeks to fix, it will cost you $700 just to rent a car. Fortunately, Member Benefits has an inexpensive answer: Rental Reimbursement Coverage. For just $30 a year—that’s eight cents per day—you can add coverage that will pay the $50 per day vehicle rental fee if you get into an accident. We’ll even set up the rental for you.

To learn more or to add Rental Reimbursement Coverage to your WEA P&C auto policy, call Member Benefits toll-free at 1-800-279-4010.

Certain policy exclusions and limitations may apply. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details. Underwritten by WEA Property & Casualty Insurance Company.

{ your kioskRENTAL COvERAGE to pay

moreGender-based pricing will soon make long-term care insurance (lTCi) more expensive for women

Fortunately, the rate increases are expected to apply only to new, not

existing, policies.

Home Health Care Patients 64% female vs. 36% male

Assisted living Residents 73.6% female vs. 26.4% male

Mean Stays in Days for Assisted living Residents 957 female vs. 636 male

Total Nursing Home Residents 1,061,700 female vs. 430,500 male

New Claims Opened in 2010 64% female vs. 36% male

By the numbersHere are some facts reported in the 2011 Sourcebook by the American Association for Long-Term Care Insurance (AALTCi) that support the industry’s trend for higher premiums for women.

10 weabenefits.com

A contribution to a 529 college savings account is a great gift idea and meaningful way to celebrate major milestones in a child’s life, such as birthdays, religious celebrations, graduations, or other holidays. Best of all, it’s economical, easy, and will last a lifetime. Here are the highlights of gifting “529” style.

What is it?A 529 is a tax-advantaged savings plan

offered by a state that makes it easier to save for college or other post-secondary education. Wisconsin’s plan is called Edvest.

What are the tax advantages of a 529 plan?• While contributions to a 529 plan are

not deductible on your federal taxes, contributions to the Wisconsin 529 plan of up to $3,000 per beneficiary per year (any filing status) are deductible on your state income taxes.

• Earnings on 529 accounts are not subject to federal tax and generally not subject to state tax when used for qualified education expenses, such as tuition, fees, books, and room and board. The IRS recently added some technology-related costs (such as computers and Internet) to the list of qualified expenses.

• Contributions to Edvest may help you reduce the taxable value of your estate. Consult your tax advisor.

Who can open and contribute to a 529?

Saving for college isn’t just for parents anymore. Anyone can set up or contribute to a 529 plan. You can open an account and name anyone as a beneficiary—a relative, a friend, even yourself. There are no income restrictions and no limit to the number of plans you set up.

Opening an account is really easy and you can make automatic contributions

11

529 college savings planThe perfect gift for that special kid

{ WANT MORE?edvest.comsavingforcollege.comirs.gov

weabenefits.com

that correspond to gift-giving dates such as birthdays or holidays. Plus, Edvest provides a Gift of Education Certificate to symbolize your gift—wrap it, frame it, or place it in a card!

Is there a minimum contribution amount required?

You can open an Edvest account with as little as $25, and the minimum amount friends and family members may contribute (gift) to your existing account is also $25.

What if the child doesn’t go to college?

If a child does not go on to college, the account can be transferred to another beneficiary without penalty.

How do I open an account?Go to edvest.com to get started. So the next time you’re searching for

the perfect gift for a child, consider a 529 account—it’s a meaningful way to celebrate major milestones in a child’s life.

This article is for informational purposes only and not intended to be legal or tax advice. Consult your tax advisor or attorney before taking any action.

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MADISON WI PERMIT NO 2750

PO Box 7893, Madison, WI 53707-7893

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The Trustee for the WEAC IRA program is First Business Trust & Investments. Interest is compounded daily to produce the current annual yield prior to the deduction of program administrative fees. Contributions and earnings are held in the general account of Prudential Retirement Insurance and Annuity Company (PRIAC). Principal and net credited interest are fully guaranteed by PRIAC. Such guarantees are based solely upon the financial strength and claims-paying ability of PRIAC. For more information go to weabenefits.com/pru.

592 Educators moved money into our IRA program. Your IRA Rollover DecisionLast year, 592 Wisconsin public school employees ROLLED OVER to Member Benefits IRA.

Pay less! Share with the family! Rolling over is easy! Competitive returns!

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My husband is eligible and so are his parents.

4.05% is the 2013 Prudential Guaranteed Investment rate.

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Consolidating your retirement accounts can $AVE you money and make money

management a breeze!

Call 1-800-279-4030

It’s your program. TM

Created by Wisconsin educators for Wisconsin educators.