OVERVIEW
The Emeriti Program provides a tax-advantaged way for higher education faculty and staff to invest and accumulate assets during their working years to help meet future retiree medical expenses, and provides access to a choice of specially designed health insurance plan options that complement Medicare. Emeriti Retirement Health Solutions is a consortium of, by, and for colleges, universities and other higher education-related tax-exempt organizations. Emeriti created and oversees this innovative retiree benefits program. Fidelity Investments provides recordkeeping, shareholder and disbursement services for the Program, and Aetna provides participants with a range of medical insurance plan options at different levels of cost and coverage.

WHO BENEFITS
Suitable for faculty and staff at colleges, universities and higher education-related tax-exempt organizations nationwide, the Emeriti Program provides both a tax-advantaged savings mechanism to fund future retiree health expenses and access across the country to custom-designed retiree health insurance plan options that complement Medicare coverage. The key objectives of this initiative are to allow employees to retire when they feel ready and to offer them greater health care security.

WHY IT WAS CREATED
According to research¹ funded through grant support from The Andrew W. Mellon Foundation, many senior faculty members expressed concern, anxiety and frustration about the cost of, and access to, retiree medical insurance and noted that this concern was preventing them from making the retirement decision, even though they otherwise felt ready to retire. Emeriti developed this new retiree medical paradigm to remove one barrier to successful retirement.

HOW IT WORKS
Higher education employers and employees make monthly or quarterly contributions that are invested in a life cycle or money market mutual fund and accumulate tax-free until the employee retires. Upon retirement and plan eligibility, the employee can use these tax-advantaged funds to pay for an indemnity-type, health plan which integrates with Medicare, as well as receive reimbursement for other qualifying medical expenses not covered by Medicare or other insurance. The custom insurance plan options provided by Aetna were specifically designed to protect retirees from the potentially devastating effects of catastrophic or prolonged illness and to enhance coverage for prescription drugs, items not entirely covered by Medicare today.

BENEFITS
The program has many benefits to both the employee and employer. These include:

•		Professional investment management and recordkeeping services by Fidelity Investments
•		Tax-free investment growth and use of funds to pay for insurance premiums and qualified retirement medical expenses
•		Group rates for custom-designed Medicare supplemental health plans offered through Aetna
•		National access to medical coverage regardless of location and international coverage for temporary stays abroad for up to six months
•		Flexibility to choose among the available health plan options during an annual enrollment process
•		A predictable, cost-effective budgeting mechanism for institutions to contribute toward the benefit
•		Health care security for long-service higher education faculty and staff.

For additional information, please visit www.emeritihealth.org.

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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 Retirement Health Solutions, Aetna, and Fidelity Investments are independent organizations and are not legally affiliated.

Fidelity Investments Tax-Exempt Services Company is a division of
Fidelity Investments Institutional Services Company, Inc., 82 Devonshire Street, Boston, MA 0210

¹The research consisted of surveys completed by 720 active and retired faculty at 47 private liberal arts colleges throughout the U.S. and follow-up interviews with a subset of 231 of those individuals. Surveys and interviews were conducted during the 1999-2000 academic year.